Document:

Exhibit 4.20

 

EXECUTION
VERSION

 

SECURITIES
PURCHASE AGREEMENT

 

This
Securities Purchase Agreement (this “Agreement”) is dated as of August 16, 2017, between P.V. Nano Cell Ltd.,
a corporation formed under the laws of the State of Israel (the “Company”), and each purchaser identified on
the signature pages hereto (each, including its successors and permitted assigns, a “Purchaser” and collectively,
the “Purchasers”).

 

WHEREAS,
subject to the terms and conditions set forth in this Agreement and pursuant to Section 4(a)(2) of the Securities Act of 1933,
as amended (the “Securities Act”), and Rule 506 promulgated thereunder, the Company desires to issue and sell
to each Purchaser, and each Purchaser, severally and not jointly, desires to purchase from the Company, securities of the Company
as more fully described in this Agreement (the “Offering”).

 

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

 

ARTICLE
I.

 

DEFINITIONS

 

1.1
Definitions. In addition to the terms defined elsewhere in this Agreement: (a) capitalized terms that are not otherwise
defined herein have the meanings given to such terms in the Notes (as defined herein), and (b) the following terms have the meanings
set forth in this Section 1.1:

 

“Acquiring
Person” shall have the meaning ascribed to such term in Section 4.7. “Action”
shall have the meaning ascribed to such term in Section 3.1(j).

 

“Affiliate”
means any Person that, directly or indirectly through one or more

 

intermediaries,
controls or is controlled by or is under common control with a Person, as such terms are used in and construed under Rule 405
under the Securities Act.

 

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

 

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

 

“Closing”
means the closing of the purchase and sale of the Securities pursuant to Section 2.1.

 

“Closing
Date” means the Business Day on which all of the Transaction Documents have been executed and delivered by the applicable
parties thereto, and all conditions precedent to (i) the Purchasers’ obligation to pay the Subscription Amount at such Closing,
and (ii) the Company’s obligations to deliver the Securities to be issued and sold at such Closing, in each case, have been
satisfied or waived, but in no event later than the tenth (10th) Business Day following the date hereof.

 

“Commission”
means the United States Securities and Exchange Commission.

 

    

     

    

 

“Company
Counsel” means, Greenberg Traurig, P.A., 333 S.E. 2nd Avenue, Miami, FL 33131, Attn: Robert L. Grossman,
Esq., facsimile: 305-961-5756, and Primes, Shiloh, Givon, Meir - Law Firm Attn. Meytal Katz, Adv.16 Derech Hayam St., Haifa 3474110,
Israel Tel. +972-4-8388332 Direct. +972-4-6978223 Fax. +972-4-8381401, meytal@pgs-law.co.il.

 

“Conversion
Price” shall have the meaning ascribed to such term in the Notes. “Digiflex” shall mean Digiflex
Ltd.

 

“Disclosure
Schedules” means the Disclosure Schedules of the Company delivered concurrently herewith.

 

“Disqualification
Event” shall have the meaning ascribed to such term in Section 3.1(oo).

 

“Effective
Date” means the earliest of the date that (a) a Registration Statement, has been declared effective by the Commission
with respect to all of the Underlying Shares, or (b) (i) all of the Underlying Shares have been sold pursuant to Rule 144, or
(ii) may be sold by the holders thereof pursuant to Rule 144 without the requirement for the Company to be in compliance with
the current public information requirements of Rule 144 and without volume or manner-of-sale restrictions, and (c) Company counsel
has delivered to the Transfer Agent and Purchasers a standing written unqualified opinion acceptable to the Transfer Agent that
resales may then be made by such holders of the Underlying Shares pursuant to an effective Registration Statement or other registration
statement or the exemption described in (b)(ii) above, which opinion shall be in form and substance acceptable to Purchasers.

 

“Equity
Line of Credit” shall have the meaning ascribed to such term in Section 4.13.

 

“Evaluation
Date” shall have the meaning ascribed to such term in Section 3.1(r).

 

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

 

“Exempt
Issuance” means the issuance of (a) Ordinary Shares and options to officers, directors, or employees of the Company,
prior to and after the Closing Date up to the amounts and terms set forth on Schedule 4.13 pursuant to the Stock Option
Plan, (b) except as described below, other securities exercisable or exchangeable for or convertible into Ordinary Shares issued
and outstanding on the date of this Agreement or which the Company is otherwise actually or contingently committed to issue on
the date of this Agreement including securities to be issued in connection with the merger with Digiflex as described in the SEC
Reports as modified by the Disclosure Schedules hereto and to Sunrise or any other broker-dealer involved in the sale of convertible
debt instruments and Ordinary Share purchase warrants to Subsequent Purchasers (as defined in subsection (f) of this paragraph,
provided that such securities and any term thereof have not been amended since the date of this Agreement to increase the number
of such securities or to decrease the issue price, exercise price, exchange price or conversion price of such securities and which
securities and the principal terms thereof are set forth on Schedule 3.1(g), and
described in the SEC Reports filed not later than five (5) days before the Closing Date, (c) securities issued pursuant to acquisitions
or strategic transactions approved by a majority of the disinterested directors of the Company, provided that any such issuance
shall only be to a Person (or to the equity holders of a Person) which is, itself or through its subsidiaries, an operating company
or an owner of an asset in a business synergistic with the business of the Company and shall be intended to provide to the Company
substantial additional benefits in addition to the investment of funds, but shall not include a transaction in which the
Company is issuing securities for the purpose of raising capital or to an entity whose primary business is investing in securities,
(d) as otherwise described on Schedule 3.1(g) as an Exempt Issuance, (e) securities issued or issuable to the Purchasers
and their assigns pursuant to this Agreement, the Notes or the Warrants and other Transaction Documents including without limitation,
Section 4.17 and Section 4.23 herein, or upon exercise or conversion of any such securities (subject to adjustment for forward
and reverse stock splits and the like that occur after the date hereof), and (f) convertible debt instruments in the principal
amount not exceeding US$1,666,667 and Ordinary Share purchase warrants issued and issuable to other purchasers (“Subsequent
Purchasers”) or any Ordinary Shares issued pursuant to such convertible debt instruments and Ordinary Share purchase
warrants on terms in no way more advantageous or preferable to such other purchasers of Notes and Warrants than the terms of the
Offering and Transaction Documents and which issuances will not be inconsistent with or make burdensome the Company’s compliance
with obligations and undertakings to Purchasers herein (sales of Securities in this Offering and sales of convertible debt instruments
and Ordinary Share purchase warrants to Subsequent Purchasers are hereinafter collectively, the “Aggregate Offering”).
The Outstanding Equity Line is not an Exempt Issuance.

 

    2

     

    

 

“Exercise
Price” shall have the meaning ascribed to such term in the Warrants.

 

“FCPA” means the Foreign Corrupt
Practices Act of 1977, as amended.

 

“FDA” shall have the meaning ascribed to such term in Section 3.1(nn). “FDCA”
shall have the meaning ascribed to such term in Section 3.1(nn).

 

“Federal
and State Securities Laws” means the federal securities laws of the United States and the states of the United States,
as applicable.

 

“Form
6-K” shall have the meaning ascribed to such term in Section 4.6.

 

“GAAP” shall have the meaning ascribed
to such term in Section 3.1(h).

 

“G&M”
shall mean Grushko & Mittman, P.C., with offices located at 515 Rockaway Avenue, Valley Stream, New York 11581, Fax: 212-697-3575.

 

“Indebtedness”
shall have the meaning ascribed to such term in Section 3.1(z).

 

“Intellectual
Property Rights” shall have the meaning ascribed to such term in Section 3.1(o).

 

“Issuer
Covered Person” shall have the meaning ascribed to such term in Section 3.1(oo).

 

“Legal
Opinion” shall have the meaning ascribed to such term in Section 2.2(a)(ii).

 

“Legend Removal Date”
shall have the meaning ascribed to such term in Section 4.1(d).

 

“Lien”
means a lien, charge, pledge, security interest, encumbrance, right of first refusal, preemptive right or other restriction.

 

“Listing
Default” shall have the meaning ascribed to such term in Section 4.11(c).

 

“Lockup
Agreement” means the form of Lockup Agreement annexed hereto as Exhibit E.

 

    3

     

    

 

“Majority
in Interest” shall have the meaning ascribed to such term in Section 5.5.

 

“Material
Adverse Effect” shall have the meaning assigned to such term in Section 3.1(b).

 

“Material
Permits” shall have the meaning ascribed to such term in Section 3.1(m).

 

“Maximum Rate” shall have
the meaning ascribed to such term in Section 5.17.

 

“Money
Laundering Laws” shall have the meaning ascribed to such term in Section 3.1(gg).

 

“Notes”
means the senior secured convertible notes issuable pursuant to this Agreement, in the form of Exhibit A hereto.

 

“OFAC”
shall have the meaning ascribed to such term in Section 3.1(ii).

 

“Outstanding
Equity Line” means the Standby Equity Distribution Agreement between the Company and YA Global entered into on July
9, 2015, and described in the Company’s Form 20-F for the year ended December 31, 2016.

 

“Ordinary
Shares” means the Ordinary Shares of the Company, par value NIS 0.01 per share, and any other class of securities into
which such securities may hereafter be reclassified or changed.

 

“Ordinary
Shares Equivalents” means any securities of the Company or any Subsidiary which would entitle the holder thereof to
acquire at any time Ordinary Shares, including, without limitation, any debt, preferred stock, right, option, warrant or other
instrument that is at any time convertible into or exercisable or exchangeable for, or otherwise entitles the holder thereof to
receive, Ordinary Shares.

 

“Participation
Maximum” shall have the meaning ascribed to such term in Section 4.17(a).

 

“Permitted
Indebtedness” means (a) any liabilities or indebtedness existing as of the date hereof described on Schedule 3.1(z),
(b) any liabilities for borrowed money or amounts owed not in excess of $150,000 in the aggregate (other than trade accounts
payable incurred in the ordinary course of business) incurred after the date hereof, (c) all guaranties, endorsements and other
contingent obligations in respect of indebtedness of others described on Schedule 1.1, whether
or not the same are or should be reflected in the Company’s consolidated balance sheet (or the notes thereto) not affecting
more than $150,000 in the aggregate, except guaranties by endorsement of negotiable instruments for deposit or collection or similar
transactions in the ordinary course of business; (c) the present value of any lease payments not in excess of $150,000 due under
leases required to be capitalized in accordance with GAAP and incurred after the date hereof; and (d) any liabilities for borrowed
money that are junior to the Notes pursuant to an intercreditor agreement acceptable to Purchasers and the holders of which are
not granted any security interest.

 

    4

     

    

 

“Permitted
Lien” means the individual and collective reference to the following: (a) Liens for taxes, assessments and other
governmental charges or levies not yet due or Liens for taxes, assessments and other governmental charges or levies being
contested in good faith and by appropriate proceedings for which adequate reserves (in the good faith judgment of the management
of the Company) have been established in accordance with GAAP, (b) Liens imposed by law which were incurred in the ordinary
course of the Company’s business, such as carriers’, warehousemen’s and mechanics’ Liens, statutory
landlords’ Liens, and other similar Liens arising in the ordinary course of the Company’s business, and which (x)
do not individually or in the aggregate materially detract from the value of such property or assets or materially impair the
use thereof in the operation of the business of the Company and its consolidated Subsidiaries or (y) are being contested in
good faith by appropriate proceedings, which proceedings have the effect of preventing for the foreseeable future the
forfeiture or sale of the property or asset subject to such Lien, and (c) Liens in connection with Permitted Indebtedness
under clauses (a) and (b) thereunder, and Liens incurred in connection with Permitted Indebtedness under clause (c)
thereunder, provided that such Liens are not secured by assets of the Company or its Subsidiaries other than the assets so
acquired or leased.

 

“Person”
means an individual or corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability
company, joint stock company, government (or an agency or subdivision thereof) or other entity of any kind.

 

“Pre-Notice”
shall have the meaning ascribed to such term in Section 4.17(b).

 

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

 

“Pro-Rata
Portion” shall have the meaning ascribed to such term in Section 4.17(e).

 

“Public
Information Failure” shall have the meaning ascribed to such term in Section 4.3(b).

 

“Public
Information Failure Payments” shall have the meaning ascribed to such term in Section 4.3(b).

 

“Purchaser
Party” shall have the meaning ascribed to such term in Section 4.10.

 

“Registration
Statement” means an effective registration statement filed with the Commission and covering the resale of all of the
Underlying Shares held or issuable to each Purchaser as provided.

 

“Required
Approvals” shall have the meaning ascribed to such term in Section 3.1(e).

 

“Required
Minimum” means, as of any date, the maximum aggregate number of Ordinary Shares then issued or potentially issuable
in the future pursuant to the Transaction Documents, including any Underlying Shares issuable upon exercise in full of all Warrants
or conversion in full of all Notes, ignoring any conversion or exercise limits set forth therein, and assuming that any previously
unconverted Notes will be held until the third anniversary of the issue date of such Notes.

 

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

 

    5

     

    

 

“SEC
Reports” shall have the meaning ascribed to such term in Section 3.1(h). “Securities” means the Notes,
the Warrants, and the Underlying Shares.

 

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

 

“Short
Sales” means “short sales” as defined in Rule 200 of Regulation SHO under the Exchange Act and all types
of direct and indirect stock pledges, forward sale contracts, options, puts, calls, swaps and similar arrangements (including
on a total return basis) whether such transactions are made through U.S. or non-U.S. broker dealers or foreign regulated brokers.

 

“Stock
Option Plan” means the unamended P.V. Nano Cell Ltd. 2010 Option Plan identified as exhibit 10.18 to the Company’s
Form 20-F for the year ended December 31, 2016.

 

“Subscription
Amount” means, as to each Purchaser, the aggregate amount to be paid for the Notes and Warrants purchased hereunder
at the Closing as specified below such Purchaser’s name on the signature page of this Agreement and next to the heading
“Subscription Amount,” in United States dollars and in immediately available funds.

 

“Subsequent
Financing” shall have the meaning ascribed to such term in Section 4.17(a).

 

“Subsequent
Financing Notice” shall have the meaning ascribed to such term in Section 4.17(b).

 

“Subsequent
Purchasers” shall have the meaning ascribed to that term in the definition of Exempt Issuance.

 

“Subsidiary”
means with respect to any entity at any date, any direct or indirect corporation, limited or general partnership, limited liability
company, trust, estate, association, joint venture or other business entity of which (A) more than 50% of (i) the outstanding
capital stock having (in the absence of contingencies) ordinary voting power to elect a majority of the board of directors or
other managing body of such entity, (ii) in the case of a partnership or limited liability company, the interest in the capital
or profits of such partnership or limited liability company or (iii) in the case of a trust, estate, association, joint venture
or other entity, the beneficial interest in such trust, estate, association or other entity business is, at the time of determination,
owned or controlled directly or indirectly through one or more intermediaries, by such entity, or (B) is under the actual control
of the Company.

 

“Sunrise”
shall mean Sunrise Securities LLC.

 

“Termination
Date” shall have the meaning ascribed to such term in Section 2.1.

 

“Trading
Day” means a day on which the principal Trading Market is open for trading, and if the Company has no Trading Market,
shall mean a Business Day.

 

“Trading
Market” means any of the following markets or exchanges on which the Ordinary Shares are listed or quoted for
trading on the date in question: the NYSE MKT, the NASDAQ Capital Market, the NASDAQ Global Market, the NASDAQ Global Select
Market, the New York Stock Exchange, the OTC Bulletin Board, the OTCQB, or the OTCQX (or any successors to any of the
foregoing). As of the Closing Date, the OTCQB is the principal Trading Market.

 

    6

     

    

 

“Transaction
Documents” means this Agreement, the Notes, the Warrants, Lockup Agreements, all exhibits and schedules thereto and
hereto and any other documents or agreements executed in connection with the transactions contemplated hereunder.

 

“Transfer
Agent” means VStock Transfer, LLC and any successor transfer agent of the Company.

 

“Underlying
Shares” means the Ordinary Shares issued and issuable upon conversion of the Notes and upon exercise of the Warrants
and issued and issuable in lieu of the cash payment of interest on the Notes in accordance with the terms of the Notes and any
other Ordinary Shares issued or issuable to a Purchaser in connection with or pursuant to the Securities or Transaction Documents.

 

“Unlegended
Shares” shall have the meaning ascribed to such term in Section 4.1(d).

 

“Variable
Priced Equity Linked Instruments” shall have the meaning ascribed to such term in Section 4.13.

 

“Variable
Rate Transaction” shall have the meaning ascribed to such term in Section 4.13.

 

“VWAP”
means, for any date, the price determined by the first of the following clauses that applies: (a) if the Ordinary Shares are then
listed or quoted on a Trading Market, the daily volume weighted average price of the Ordinary Shares for such date (or the nearest
preceding date) on the Trading Market on which the Ordinary Shares are then listed or quoted as reported by Bloomberg L.P. (based
on a Trading Day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City time)), (b) if any of the NASDAQ markets or exchanges
is not a Trading Market, the volume weighted average price of the Ordinary Shares for such date (or the nearest preceding date)
on the OTC Bulletin Board, (c) if the Ordinary Shares are not then listed or quoted for trading on the OTC Bulletin Board and
if prices for the Ordinary Shares are then reported on the OTCQX, OTCQB or OTC Pink Marketplace maintained by the OTC Markets
Group, Inc. (or a similar organization or agency succeeding to its functions of reporting prices), the volume weighted average
price of the Ordinary Shares on the first such facility (or a similar organization or agency succeeding to its functions of reporting
prices), or (d) in all other cases, the fair market value of a share of Ordinary Shares as determined by an independent appraiser
selected in good faith by the Purchasers of a Majority in Interest then outstanding and reasonably acceptable to the Company,
the fees and expenses of which shall be paid by the Company.

 

“Warrants”
means the Ordinary Shares purchase warrants delivered to the Purchasers at the Closing in accordance with Section 2.2(a) hereof
in the form of Exhibit B attached hereto.

 

“Warrant
Shares” means the Ordinary Shares issuable upon exercise of the Warrants.

 

    7

     

    

 

ARTICLE
II.

 

PURCHASE
AND SALE

 

2.1 Closing.
On the Closing Date, upon the terms and subject to the conditions set forth herein, substantially concurrent with the
execution and delivery of this Agreement by the parties hereto, the Company agrees to sell, and the Purchasers, severally and
not jointly, agree to purchase, an aggregate of up to US$333,333 principal amount of Notes and Warrants as determined pursuant
to Section 2.2(a) (such purchase and sale being the “Closing”). Each Purchaser shall deliver to the Company
such Purchaser’s Subscription Amount, and the Company shall deliver to such Purchaser its respective Note and Warrants,
as determined pursuant to Section 2.2(a), and the Company and Purchaser shall deliver the other items set forth in Section 2.2
deliverable at the Closing. Upon satisfaction of the covenants and conditions set forth in Sections 2.2 and 2.3, the Closing shall
occur at the offices of G&M or such other location as the parties shall mutually agree. Notwithstanding anything herein to
the contrary, the Closing Date shall occur on or before August 29, 2017 (the “Termination Date”). If the Closing
is not held on or before the Termination Date, the Company shall cause all subscription documents and funds to be returned, without
interest or deduction to each prospective Purchaser.

 

2.2 Deliveries.

 

(a)
On or prior to the Closing Date, the Company shall deliver or cause to be delivered to each Purchaser the following:

 

(i) this
Agreement duly executed by the Company;

 

(ii) a
legal opinion of Company Counsel, substantially in the form of Exhibit C attached hereto;

 

(iii) a
Note with a principal amount of $1.00 for each $0.90 of Subscription Amount paid by each Purchaser registered in the name of such
Purchaser;

 

(iv) Warrants
in the form of Exhibit B hereto registered in the names of such Purchaser to purchase up to a number of Ordinary Shares
equal to 100% of such Purchaser’s principal Note amount divided by the Conversion Price in effect on the Closing Date with
a per share Exercise Price of $1.20, subject to adjustment as provided therein;

 

(v) the
Lockup Agreement signed by each of the holders of the Company’s securities identified on Schedule 2.2(a)(v);

 

(vi) a
certificate of the Principal Executive Officer and Chief Executive Officer (each as defined in the Exchange Act) of the Company,
dated as of the Closing Date, in which such officer shall certify that the conditions set forth in Section 2.3(b) have been fulfilled;
and

 

(vii) Secretary’s
certificate containing (i) copies of the text of the resolutions by which the corporate action on the part of the Company
necessary to approve this Agreement and the other Transaction Documents and the transactions and actions contemplated hereby
and thereby, which shall be accompanied by a certificate of the corporate secretary or assistant corporate secretary of the
Company dated as of the Closing Date certifying to the Purchasers that such resolutions were duly adopted and have not been
amended or rescinded, (ii) an incumbency certificate dated as of the Closing Date executed on behalf of the Company by its
corporate secretary or one of its assistant corporate secretaries certifying the office of each officer of the Company
executing this Agreement, or any other agreement, certificate or other instrument executed pursuant hereto, and (iii) copies
of (A) the Company’s Articles of Association in effect on the Closing Date, and (B) the certificate evidencing
the existence of Company as of a day within five (5) Business Days prior to the Closing Date; and

 

    8

     

    

 

(b) On
or prior to the Closing Date, each Purchaser shall deliver or cause to be delivered to the Company the following:

 

(i) this
Agreement duly executed by such Purchaser; and

 

(ii) such
Purchaser’s Subscription Amount by wire transfer to the Company.

 

2.3 Closing
Conditions.

 

(a) The
obligations of the Company hereunder to effect Closing, unless waived by the Company, are subject to the following
conditions being met:

 

(i) the
accuracy in all material respects (determined without regard to any materiality, Material Adverse Effect or other similar qualifiers
therein) on the Closing Date of the representations and warranties of the Purchasers contained herein (unless as of a specific
date therein in which case they shall be accurate as of such date);

 

(ii) all
obligations, covenants and agreements of each Purchaser required to be performed at or prior to the Closing Date shall have been
performed; and

 

(iii) the
delivery by each Purchaser of the items set forth in Section 2.2(b) of this Agreement.

 

(b) The
respective obligations of a Purchaser hereunder to effect a Closing, unless waived by such Purchaser, are subject to
the following conditions being met:

 

(i) the
accuracy in all material respects (determined without regard to any materiality, Material Adverse Effect or other similar qualifiers
therein) on the Closing Date of the representations and warranties of the Company contained herein (unless as of a specific date
therein in which case they shall be accurate as of such date);

 

(ii) all
obligations, covenants and agreements of the Company required to be performed at or prior to the Closing Date shall have been
performed;

 

(iii) the
Company shall have received executed signature pages to this Agreement with an aggregate cash Subscription Amount of up to $300,000
prior to the Closing;

 

(iv) the
delivery by the Company of the items set forth in Section 2.2(a) of this Agreement;

 

(v) there
shall have been no Material Adverse Effect with respect to the Company since the date hereof; and

 

(vi) from
the date hereof to the Closing Date, trading in the Ordinary Shares shall not have been suspended by the Commission or the Company’s
principal Trading Market, and, at any time prior to the Closing Date, trading in securities generally as reported by Bloomberg
L.P. shall not have been suspended or limited, or minimum prices shall not have been established on securities whose trades
are reported by such service, or on any Trading Market, nor shall a banking moratorium have been declared either by the United
States or New York State authorities nor shall there have occurred any material outbreak or escalation of hostilities or other
national or international calamity of such magnitude in its effect on, or any material adverse change in, any financial market
which, in each case, in the reasonable judgment of such Purchaser, makes it impracticable or inadvisable to purchase the Securities
at the Closing.

 

    9

     

    

 

ARTICLE
III.

 

REPRESENTATIONS
AND WARRANTIES

 

3.1
Representations and Warranties of the Company. Except as set forth in the SEC Reports or the Disclosure Schedules, which
Disclosure Schedules shall be deemed a part hereof and shall qualify a representation made herein only to the extent of the disclosure
contained in the corresponding section of the Disclosure Schedules the Company hereby makes the following representations and
warranties to each Purchaser:

 

(a) Subsidiaries.
All of the direct and indirect subsidiaries of
the Company and the Company’s ownership interests therein are set forth on Schedule 3.1(a). The Company owns, directly
or indirectly, all of the capital stock or other equity interests of each Subsidiary free and clear of any Liens, and all of the
issued and outstanding shares of capital stock of each Subsidiary are validly issued and are fully paid, non-assessable and free
of preemptive and similar rights to subscribe for or purchase securities.

 

(b) Organization
and Qualification. The Company and each Subsidiary is an entity duly incorporated or otherwise organized, validly existing
and in good standing under the laws of the jurisdiction of its incorporation or organization, with the requisite power and authority
to own and use its properties and assets and to carry on its business as currently conducted. Neither the Company nor any Subsidiary
is in violation nor default of any of the provisions of its respective articles of association, certificate or articles of incorporation,
bylaws or other organizational or charter documents. Each of the Company and each Subsidiary is duly qualified to conduct business
and is in good standing as a foreign corporation or other entity in each jurisdiction in which the nature of the business conducted
or property owned by it makes such qualification necessary, except where the failure to be so qualified or in good standing, as
the case may be, would not reasonably be expected to result in: (i) a material adverse effect on the legality, validity or enforceability
of any Transaction Document, (ii) a material adverse effect on the results of operations, assets, business, or condition (financial
or otherwise) of the Company and each Subsidiary, taken as a whole, or (iii) a material adverse effect on the Company’s
ability to perform in any material respect on a timely basis its obligations under any Transaction Document (any of (i), (ii)
or (iii), a “Material Adverse Effect”) and, no Proceeding has been instituted in any such jurisdiction revoking,
limiting or curtailing or seeking to revoke, limit or curtail such power and authority or qualification.

 

(c) Authorization;
Enforcement. The Company has the requisite corporate power and authority to enter into and to consummate the
transactions contemplated by this Agreement and each of the other Transaction Documents and otherwise to carry out its
obligations hereunder and thereunder. The execution and delivery of this Agreement and each of the other Transaction
Documents by the Company and the consummation by it of the transactions contemplated hereby and thereby have been duly
authorized by all necessary action on the part of the Company and no further action is required by the Company, the Board of
Directors or the Company’s stockholders in connection herewith or therewith other than in connection with the Required
Approvals. This Agreement and each other Transaction Document to which it is a party has been (or upon delivery will have
been) duly executed by the Company and, when delivered in accordance with the terms hereof and thereof, will constitute the
valid and binding obligation of the Company enforceable against the Company in accordance with its terms, except: (i) as
limited by general equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium and other laws of
general application affecting enforcement of creditors’ rights generally, (ii) as limited by laws relating to the
availability of specific performance, injunctive relief or other equitable remedies and (iii) insofar as indemnification and
contribution provisions may be limited by applicable law.

 

    10

     

    

 

(d) No
Conflicts. The execution, delivery and performance by the Company of this Agreement and the other Transaction Documents, the
issuance and sale of the Securities and the consummation by it of the transactions contemplated hereby and thereby to which it
is a party do not and will not: (i) conflict with or violate any provision of the Company’s or any Subsidiary’s articles
of association, certificate or articles of incorporation, bylaws or other organizational or charter documents, (ii) conflict with,
or constitute a default (or an event that with notice or lapse of time or both would become a default) under, result in the creation
of any Lien upon any of the properties or assets of the Company or any Subsidiary, or give to others any rights of termination,
amendment, acceleration, adjustment, exchange, reset, exercise or cancellation (with or without notice, lapse of time or both)
of, any agreement, credit facility, debt, equity or other instrument (evidencing Company or Subsidiary equity, debt or otherwise)
or other understanding to which the Company or any Subsidiary is a party or by which any property or asset of the Company or any
Subsidiary is bound or affected, or (iii) conflict with or result in a violation of any law, rule, regulation, order, judgment,
injunction, decree or other restriction of any court or governmental authority to which the Company or a Subsidiary is subject
(including Israeli and federal and state securities laws and regulations), or by which any property or asset of the Company or
a Subsidiary is bound or affected; except in the case of each of clause (iii), such as would not reasonably be expected to result
in a Material Adverse Effect.

 

(e) Filings,
Consents and Approvals. The Company is not required to obtain any consent, waiver, authorization or order of, give any notice
to, or make any filing or registration with, any court or other Israeli federal, state, local, foreign or other governmental authority
or other Person in connection with the execution, delivery and performance by the Company of the Transaction Documents, other
than: (i) the filings required pursuant to Section 4.6 of this Agreement, (ii) the filing of Form D with the Commission and such
filings as are required to be made under applicable state securities laws, and (iii) the filings to be made under the Israeli
Companies Law as described on Schedule 3.1(e). The Company represents that neither the Company nor any Subsidiary nor licensor
of any Intellectual Property Rights or other rights or assets to the Company requires or will require the approval of the Israel
Innovation Authority or similar or other agency to enter into and fulfill the Company’s obligations pursuant to the Transaction
Documents.

 

(f) Issuance
of the Securities. The Securities are duly authorized and, when issued and paid for in accordance with the applicable Transaction
Documents, will be duly and validly issued, fully paid and nonassessable, free and clear of all Liens except those created by
Purchaser and restrictions on transfer arising pursuant to applicable securities laws. The Company has reserved from its duly
authorized capital stock a number of Ordinary Shares for issuance of the Underlying Shares at least equal to the Required Minimum
on the date hereof.

 

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(g) Capitalization.
The capitalization of the Company is as set forth in Schedule 3.1(g). The Company has not issued any capital stock since
its most recently filed periodic report under the Exchange Act. Except as set forth on Schedule 3.1(g), no Person has any
right of first refusal, preemptive right, right of participation, or any similar right to participate in the transactions
contemplated by the Transaction Documents. Except as disclosed on Schedule 3.1(g), there are no outstanding options, employee
or incentive stock option plans, warrants, scrip rights to subscribe to, calls or commitments of any character whatsoever relating
to, or securities, rights or obligations convertible into or exercisable or exchangeable for, or giving any Person any right to
subscribe for or acquire any Ordinary Shares, or contracts, commitments, understandings or arrangements by which the Company or
any Subsidiary is or may become bound to issue additional Ordinary Shares or Ordinary Shares Equivalents. The Company represents
and warrants that as of the Closing Date, there is no outstanding equity line or similar arrangement passed by any Person which
may be exercised by any Person or granting such Person the right to acquire Ordinary Shares or Ordinary Share Equivalents except
for the Outstanding Equity Line. Except as set forth on Schedule 3.1(g), the issuance and sale of the Securities will not
obligate the Company to issue Ordinary Shares or other securities to any Person (other than the Purchasers) and will not result
in a right of any holder of Company securities to adjust the exercise, conversion, exchange or reset price under any of such securities.
All of the outstanding shares of capital stock of the Company are duly authorized, validly issued, fully paid and nonassessable,
have been issued in material compliance with all Israeli, federal and state securities laws, and none of such outstanding shares
was issued in violation of any preemptive rights or similar rights to subscribe for or purchase securities. Except as contemplated
by Section 3.1(e), no further approval or authorization of any stockholder, the Board of Directors or any other Person is required
for the issuance and sale of the Securities. Except as set forth on Schedule 3.1(g), there are no stockholders agreements,
voting agreements or other similar agreements with respect to the Company’s capital stock to which the Company is a party
or, to the knowledge of the Company, between or among any of the Company’s stockholders.

 

(h)
SEC Reports; Financial Statements. The Company has filed all reports, schedules, forms, statements and other documents
required to be filed by the Company under the Securities Act and the Exchange Act, including pursuant to Section 13(a) or 15(d)
thereof, for the two years preceding the date hereof (or such shorter period as the Company was required by law or regulation
to file such material) (the foregoing materials, the exhibits thereto and documents incorporated by reference therein filed not
later than five (5) days prior to the date hereof, being collectively referred to herein as the “SEC
Reports”) on a timely basis or has received a valid extension of such time of filing and has filed any such SEC Reports
prior to the expiration of any such extension. As of their respective dates, the SEC Reports complied in all material respects
with the requirements of the Securities Act and the Exchange Act, as applicable, and none of the SEC Reports, when filed, contained
any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary in order
to make the statements therein, in the light of the circumstances under which they were made, not misleading. The financial statements
of the Company included in the SEC Reports comply in all material respects with applicable accounting requirements and the rules
and regulations of the Commission with respect thereto as in effect at the time of filing. Such financial statements have been
prepared in accordance with United States generally accepted accounting principles applied on a consistent basis during the periods
involved (“GAAP”), except as may be otherwise specified in such financial statements or the notes thereto and except
that unaudited financial statements may not contain all footnotes required by GAAP, and fairly present in all material respects
the financial position of the Company and its consolidated Subsidiaries as of and for the dates thereof and the results of operations
and cash flows for the periods then ended, subject, in the case of unaudited statements, to normal, immaterial, year-end audit
adjustments. The Company is, and has no reason to believe that it will not in the foreseeable future continue to be in compliance
with all its reporting requirements under the Securities Act and Exchange Act.

 

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(i) Material
Changes; Undisclosed Events, Liabilities or Developments. Since the date of the latest audited financial statements
included within the SEC Reports, except as specifically disclosed in a subsequent SEC Report filed prior to the date hereof :
(i) there has been no event, occurrence or development that has had or that would reasonably be expected to result in a
Material Adverse Effect, (ii) the Company has not incurred any material liabilities (contingent or otherwise) other than (A)
trade payables and accrued expenses incurred in the ordinary course of business consistent with past practice and (B)
liabilities not required to be reflected in the Company’s financial statements pursuant to GAAP or disclosed in filings
made with the Commission, (iii) the Company has not altered its method of accounting, (iv) the Company has not declared or
made any dividend or distribution of cash or other property to its stockholders or purchased, redeemed or made any
agreements to purchase or redeem any shares of its capital stock and (v) the Company has not issued any equity securities to
any officer, director or Affiliate except pursuant to the Stock Option Plan as set forth on Schedule 3.1(i). The
Company does not have pending before the Commission any request for confidential treatment of information. Except for the
issuance of the Securities contemplated by this Agreement and the contemplated merger with Digiflex, as described in the SEC
Reports, no event, liability, fact, circumstance, occurrence or development has occurred or exists or is reasonably expected
to occur or exist with respect to the Company or its Subsidiaries or their respective businesses, properties, operations,
assets or financial condition, that would be required to be disclosed by the Company under applicable securities laws at the
time this representation is made or deemed made that has not been publicly disclosed at least two Trading Days prior to the
date that this representation is made.

 

(j) Litigation.
Except as set forth in the SEC Reports, there is no action, suit, inquiry, notice of violation, proceeding or investigation
pending or, to the knowledge of the Company, threatened against or affecting the Company, any Subsidiary or any of their respective
properties before or by any court, arbitrator, governmental or administrative agency or regulatory authority (federal, state,
county, local or foreign) (collectively, an “Action”) which (i) adversely affects or challenges the legality,
validity or enforceability of any of the Transaction Documents or the Securities or (ii) could, if there were an unfavorable decision,
have or reasonably be expected to result in a Material Adverse Effect. Except as set forth in the SEC Reports, neither the Company
nor any Subsidiary, nor, to our knowledge, any director or officer thereof, is or has been the subject of any Action involving
a claim of violation of or liability under Israeli, federal or state securities laws or a claim of breach of fiduciary duty. Except
as set forth in the SEC Reports, there has not been, and to the knowledge of the Company, there is not pending or contemplated,
any investigation by the Commission involving the Company or any current or former director or officer of the Company. The Commission
has not issued any stop order or other order suspending the effectiveness of any registration statement filed by the Company or
any Subsidiary under the Exchange Act or the Securities Act.

 

(k) Labor
Relations. No labor dispute exists or, to the knowledge of the Company, is imminent with respect to any of the employees
of the Company or any Subsidiary, which would reasonably be expected to result in a Material Adverse Effect. None of the
Company’s or its Subsidiaries’ employees is a member of a union that relates to such employee’s
relationship with the Company or such Subsidiary, and neither the Company nor any of its Subsidiaries is a party to a
collective bargaining agreement except for collective bargaining agreements applicable to the Company under Israeli Law
(extension orders), and the Company and its Subsidiaries believe that their relationships with their employees are good. To
the knowledge of the Company, no executive officer of the Company or any Subsidiary, is, or is now expected to be, in
violation of any material term of any employment contract, confidentiality, disclosure or proprietary information agreement
or non-competition agreement, or any other contract or agreement or any restrictive covenant in favor of any third
party, and the continued employment of each such executive officer does not subject the Company or any of its Subsidiaries to
any liability with respect to any of the foregoing matters. The Company and its Subsidiaries are in compliance with all U.S.
federal, state, local and foreign laws and regulations relating to employment and employment practices, terms and conditions
of employment and wages and hours, except where the failure to be in compliance would not, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect.

 

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(l) Compliance.
To the Company’s knowledge, neither the
Company nor any Subsidiary, except as disclosed on Schedule 3.1(l): (i) is in default under or in violation of (and no
event has occurred that has not been waived that, with notice or lapse of time or both, would result in a default by the Company
or any Subsidiary under), nor has the Company or any Subsidiary received notice of a claim that it is in default under or that
it is in violation of, any indenture, loan or credit agreement or any other agreement or instrument to which it is a party or
by which it or any of its properties is bound (whether or not such default or violation has been waived), (ii) is in violation
of any judgment, decree or order of any court, arbitrator or other governmental authority or (iii) is or has been in violation
of any statute, rule, ordinance or regulation of any governmental authority, including without limitation all foreign, federal,
state and local laws relating to taxes, environmental protection, occupational health and safety, product quality and safety and
employment and labor matters, except in each case as would not reasonably be expected to result in a Material Adverse Effect.

 

(m) Regulatory
Permits. The Company and each Subsidiary possess all certificates, authorizations and permits issued by the appropriate federal,
state, local or foreign regulatory authorities necessary to conduct their respective businesses as described in the SEC Reports,
except where the failure to possess such permits would not reasonably be expected to result in a Material Adverse Effect (“Material
Permits”), and neither the Company nor any Subsidiary has received any notice of proceedings relating to the revocation
or modification of any Material Permit.

 

(n) Title
to Assets. Except as disclosed on Schedule 3.1(n) and in the SEC Reports, the Company and each Subsidiary have good
and marketable title in fee simple to all real property (if any) owned by them and good and marketable title in all personal property
owned by them that is material to the business of the Company and each Subsidiary, in each case free and clear of all Liens, except
for Permitted Liens and (i) Liens as do not materially affect the value of such property and do not materially interfere with
the use made and proposed to be made of such property by the Company and each Subsidiary and (ii) Liens for the payment of federal,
state or other taxes, for which appropriate reserves have been made in accordance with GAAP and, the payment of which is neither
delinquent nor subject to penalties. Any real property and facilities held under lease by the Company and each Subsidiary are
held by them under valid, subsisting and enforceable leases with which the Company and each Subsidiary are in compliance.

 

(o) Intellectual
Property. All of the Company’s and Subsidiary’s material Intellectual Property Rights are disclosed as required
in the SEC Reports.

 

(i)
The term “Intellectual Property Rights” means:

 

		1.	the
name of the Company and each Subsidiary, all fictional business names, trading names, registered and unregistered trademarks,
service marks, and applications of the Company and each Subsidiary (collectively, “Marks”);

 

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		2.	all
                                         patents and patent applications of the Company and each Subsidiary (collectively, “Patents”);

 

		3.	all
                                         copyrights in both published works and unpublished works of the Company and each Subsidiary
                                         (collectively, “Copyrights”);

 

		4.	all
                                         rights in mask works of the Company and each Subsidiary (collectively, “Rights
                                         in Mask Works”); and

 

		5.	all
                                         know-how, trade secrets, confidential information, customer lists, software, technical
                                         information, data, process technology, plans, drawings, and blue prints (collectively,
                                         “Trade Secrets”); owned, used, or licensed by the Company and each
                                         Subsidiary as licensee or licensor.

 

(ii) Agreements.
Except as set forth in the SEC Reports, there are no outstanding and, to Company’s knowledge, no threatened disputes
or disagreements with respect to any agreements relating to any Intellectual Property Rights to which the Company is a party or
by which the Company is bound.

 

(iii) Know-How
Necessary for the Business. Except as set forth in the SEC Reports, the Intellectual Property Rights are all those necessary
for the operation of the Company’s and Subsidiaries’ businesses as currently conducted or as represented to the Purchaser
to be conducted. Each of the Company and each Subsidiary is the owner of all right, title, and interest in and to each of their
respective Intellectual Property Rights, free and clear of all Liens, and adverse claims, and has the right to use all of the
Intellectual Property Rights. To the Company’s knowledge, no employee of the Company or any Subsidiary has entered into
any contract that restricts or limits in any way the scope or type of work in which the employee may be engaged or requires the
employee to transfer, assign, or disclose information concerning his work to anyone other than the Company or a Subsidiary.

 

(iv) Patents.
Except as set forth in the SEC Reports, the Company and each Subsidiary is the owner of all right, title and interest in and
to each of the Patents, free and clear of all Liens and adverse claims. All of the issued Patents are currently in compliance
with formal legal requirements (including payment of filing, examination, and maintenance fees and proofs of working or use),
are valid and enforceable, and, except as set forth on Schedule 3.1(o), are not subject to any maintenance fees or taxes
or actions falling due within ninety days after the Closing Date. No Patent has been or is now involved in any interference, reissue,
reexamination, or opposition proceeding. Except as set forth in the SEC Reports, to the Company’s knowledge: (1) there is
no potentially interfering patent or patent application of any third party, and (2) no Patent is infringed or has been challenged
or threatened in any way. To the Company’s knowledge, none of the products manufactured and sold, nor any process or know-how
used, by the Company or any Subsidiary infringes or is alleged to infringe any patent or other proprietary right of any other
Person.

 

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(v) Trademarks.
The Company and each Subsidiary is the owner
of all right, title, and interest in and to each of the Marks, free and clear of all Liens and adverse claims. All Marks
that have been registered with the United States Patent and Trademark Office are currently in compliance with all formal legal
requirements (including the timely post-registration filing of affidavits of use and incontestability and renewal applications),
are valid and enforceable, and are not subject to any maintenance fees or taxes or actions falling due within ninety days after
the Closing Date. No Mark has been or is now involved in any opposition, invalidation, or cancellation and, to the Company’s
knowledge, no such action is threatened with respect to any of the Marks. To the Company’s knowledge: (1) there is no potentially
interfering trademark or trademark application of any third party, and (2) no Mark is infringed or has been challenged or threatened
in any way. To the Company’s knowledge, none of the Marks used by the Company and each Subsidiary infringes or is alleged
to infringe any trade name, trademark, or service mark of any third party.

 

(vi) Copyrights.
The Company and each Subsidiary is the owner
of all right, title, and interest in and to each of the Copyrights, free and clear of all Liens and adverse claims. All the Copyrights
have been registered and are currently in compliance with formal requirements, are valid and enforceable, and are not subject
to any maintenance fees or taxes or actions falling due within ninety days after the Closing Date. To the Company’s knowledge,
no Copyright is infringed or has been challenged or threatened in any way. To the Company’s knowledge, none of the subject
matter of any of the Copyrights infringes or is alleged to infringe any copyright of any third party or is a derivative work based
on the work of a third party. All works encompassed by the Copyrights have been marked with the proper copyright notice.

 

(vii) Trade
Secrets. With respect to each Trade Secret,
the documentation relating to such Trade Secret is current, accurate, and sufficient in detail and content to identify and explain
it and to allow its full and proper use without reliance on the knowledge or memory of any individual. The Company has taken all
reasonable precautions to protect the secrecy, confidentiality, and value of its Trade Secrets. The Company and each Subsidiary
has good title and an absolute (but not necessarily exclusive) right to use the Trade Secrets. The Trade Secrets are not part
of the public knowledge or literature, and, to the Company’s knowledge, have not been used, divulged, or appropriated either
for the benefit of any Person (other the Company and each Subsidiary) or to the detriment of the Company and each Subsidiary.
No Trade Secret is subject to any adverse claim or has been challenged or threatened in any way.

 

(p) Insurance.
The Company and each Subsidiary are insured by
insurers of recognized financial responsibility against such losses and risks and in such amounts as are prudent and customary
in the businesses in which the Company and each Subsidiary are engaged, including, but not limited to, directors and officers
insurance coverage and all insurance required by applicable law. Neither the Company nor any Subsidiary has any reason to believe
that it will not be able to renew its existing insurance coverage as and when such coverage expires or to obtain similar coverage
from similar insurers as may be necessary to continue its business without a significant increase in cost.

 

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(q) Transactions
With Affiliates and Employees. Except as set
forth in the SEC Reports, none of the officers or directors of the Company or any Subsidiary and, to the knowledge of the Company,
none of the employees of the Company or any Subsidiary is presently a party to any transaction with the Company or any
Subsidiary (other than for services as employees, officers and directors), including any contract, agreement or other arrangement
providing for the furnishing of services to or by, providing for rental of real or personal property to or from, providing for
the borrowing of money from or lending of money to or otherwise requiring payments to or from any officer, director or such employee
or, to the knowledge of the Company, any entity in which any officer, director, or any such employee has a substantial interest
or is an officer, director, trustee, stockholder, member or partner, in each case in excess of $50,000 other than for: (i) payment
of salary or consulting fees for services rendered, (ii) reimbursement for expenses incurred on behalf of the Company or any Subsidiary,
and (iii) other employee benefits, including stock option agreements under the Stock Option Plan or any other plan of the Company
except as disclosed on Schedule 3.1(g).

 

(r) Sarbanes-Oxley;
Internal Accounting Controls. The Company and each Subsidiary are in material compliance with any and all applicable requirements
of the Sarbanes-Oxley Act of 2002 that are effective as of the date hereof, and any and all applicable rules and regulations promulgated
by the Commission thereunder that are effective as of the date hereof and as of the Closing Date. The Company and each Subsidiary
maintain a system of internal accounting controls sufficient to provide reasonable assurance that: (i) transactions are executed
in accordance with management’s general or specific authorizations, (ii) transactions are recorded as necessary to permit
preparation of financial statements in conformity with GAAP and to maintain asset accountability, (iii) access to assets is permitted
only in accordance with management’s general or specific authorization, and (iv) the recorded accountability for assets
is compared with the existing assets at reasonable intervals and appropriate action is taken with respect to any differences.
The Company and each Subsidiary have established disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e)
and 15d-15(e)) for the Company and each Subsidiary and designed such disclosure controls and procedures to ensure that information
required to be disclosed by the Company in the reports it files or submits under the Exchange Act is recorded, processed, summarized
and reported, within the time periods specified in the Commission’s rules and forms. The Company’s certifying officers
have evaluated the effectiveness of the disclosure controls and procedures of the Company and each Subsidiary as of the end of
the period covered by the most recently filed periodic report under the Exchange Act (such date, the “Evaluation Date”).
The Company presented in its most recently filed periodic report under the Exchange Act the conclusions of the certifying
officers about the effectiveness of the disclosure controls and procedures based on their evaluations as of the Evaluation Date.
Since the Evaluation Date, there have been no changes in the internal control over financial reporting (as such term is defined
in the Exchange Act) of the Company and its Subsidiaries that have materially affected, or is reasonably likely to materially
affect, the internal control over financial reporting of the Company and its Subsidiaries.

 

(s) Certain
Fees. Except as set forth on Schedule 3.1(s), no brokerage, finder’s fees, commissions or due diligence fees
are or will be payable by the Company or any Subsidiary to any broker, financial advisor or consultant, finder, placement agent,
investment banker, bank or other Person with respect to the transactions contemplated by the Transaction Documents. The Purchasers
shall have no obligation with respect to any such fees or with respect to any claims made by or on behalf of other Persons for
fees of a type contemplated in this Section 3.1(s) that may be due in connection with the transactions contemplated by the Transaction
Documents.

 

(t) Investment
Company. The Company is not, and is not an Affiliate of, and immediately after receipt of payment for the Securities, will
not be or be an Affiliate of, an “investment company” within the meaning of the Investment Company Act of 1940, as
amended.

 

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The
Company shall conduct its business in a manner so that it will not become an “investment company” subject to registration
under the Investment Company Act of 1940, as amended.

 

(u) Registration
Rights. Except as set forth on Schedule 3.1(u), no Person has any right to cause the Company or any Subsidiary to effect
the registration under the Securities Act of any securities of the Company or any Subsidiary, except for the Purchasers.

 

(v) Reporting
Company/Shell Company. The Company is a publicly-held company subject to reporting obligations pursuant to Sections 12(b)
and 13 of the Exchange Act. Pursuant to the provisions of the Exchange Act, the Company has timely filed all reports and other
materials required to be filed by the Company thereunder with the SEC during the twelve months preceding the date of this Agreement.
As of a Closing Date, the Company is not a “shell company” (as defined in Rule 405) of the Securities Act nor a “former
shell company”.

 

(w) Application
of Takeover Protections. The Company and the Board of Directors will have taken as of the Closing Date all necessary action,
if any, in order to render inapplicable any control share acquisition, business combination, poison pill (including any distribution
under a rights agreement) or other similar anti-takeover provision under the Company’s articles of association (or similar
charter documents) or the laws of its jurisdiction of incorporation that is or could become applicable to the Purchasers as a
result of the Purchasers and the Company fulfilling their obligations or exercising their rights under the Transaction Documents,
including without limitation as a result of the Company’s issuance of the Securities and the Purchasers’ ownership
of the Securities.

 

(x) Disclosure.
Except with respect to the material terms and conditions of the transactions contemplated by the Transaction Documents, the
Company confirms that neither it nor any other Person acting on its behalf has provided any of the Purchasers or their agents
or counsel with any information that it believes constitutes or might constitute material, non-public information. The Company
understands and confirms that the Purchasers will rely on the foregoing representation in effecting transactions in securities
of the Company. All of the disclosure furnished by or on behalf of the Company to the Purchasers regarding the Company and its
Subsidiaries, their respective businesses and the transactions contemplated hereby, including the Disclosure Schedules to this
Agreement, when taken together as a whole, is true and correct and does not contain any untrue statement of a material fact or
omit to state any material fact necessary in order to make the statements made therein, in light of the circumstances under which
they were made, not misleading. The press releases disseminated by the Company during the twelve months preceding the date of
this Agreement taken as a whole did not, at the time when disseminated, contain any untrue statement of a material fact or omit
to state a material fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances
under which they were made and when made, not misleading. The Company acknowledges and agrees that no Purchaser makes or has made
any representations or warranties with respect to the transactions contemplated hereby other than those specifically set forth
in Section 3.2 hereof.

 

(y) No
Integrated Offering. Assuming the accuracy of the Purchasers’ representations and warranties set forth in Section
3.2, neither the Company, nor any of its Affiliates, nor any Person acting on its or their behalf has, directly or
indirectly, made any offers or sales of any security or solicited any offers to buy any security, under circumstances that
would cause the Offering of the Securities to be integrated with prior offerings by the Company for purposes of: (i) the
Securities Act which would require the registration of any such securities under the Securities Act, or (ii) any
applicable shareholder approval provisions of any Trading Market on which any of the securities of the Company are listed or
designated.

 

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(z) Solvency. Based
on the consolidated financial condition of the Company as of the Closing Date, and the Company’s good
faith estimate of the fair market value of its assets, after giving effect to the receipt by the Company of the proceeds from
the sale of the Securities hereunder: (i) the fair saleable value of the Company’s assets exceeds the amount that will
be required to be paid on or in respect of the Company’s existing debts and other liabilities (including known
contingent liabilities) as they mature, (ii) the Company’s assets do not constitute unreasonably small capital to carry
on its business as now conducted and as proposed to be conducted including its capital needs taking into account the
particular capital requirements of the business conducted by the Company, consolidated and projected capital requirements and
capital availability thereof, and (iii) the current cash flow of the Company, together with the proceeds the Company would
receive, were it to liquidate all of its assets, after taking into account all anticipated uses of the cash, would be
sufficient to pay all amounts on or in respect of its liabilities when such amounts are required to be paid. The Company does
not intend to incur debts beyond its ability to pay such debts as they mature (taking into account the timing and amounts of
cash to be payable on or in respect of its debt). The Company has no knowledge of any facts or circumstances which lead it to
believe that it will file for reorganization or liquidation under the bankruptcy or reorganization laws of any jurisdiction
within one year from the Closing Date. Schedule 3.1(z) sets forth as of the date hereof all outstanding secured and
unsecured Indebtedness of the Company or any Subsidiary, or for which the Company or any Subsidiary has commitments. For the
purposes of this Agreement, “Indebtedness” means (x) any liabilities for borrowed money or amounts owed in
excess of $150,000 in the aggregate (other than trade accounts payable incurred in the ordinary course of business),
(y) all guaranties, endorsements and other contingent obligations in respect of indebtedness of others, whether or not the
same are or should be reflected in the Company’s consolidated balance sheet (or the notes thereto), except guaranties
by endorsement of negotiable instruments for deposit or collection or similar transactions in the ordinary course of
business; and (z) the present value of any lease payments in excess of $150,000 due under leases required to be capitalized
in accordance with GAAP. Neither the Company nor any Subsidiary is in default with respect to any Indebtedness. Neither the
Company nor any Subsidiary is in default with respect to any Indebtedness except as set forth on Schedule 3.1(z).

 

(aa)
Tax Status. Except for matters that would not, individually or in the aggregate, have or reasonably be expected to result
in a Material Adverse Effect, the Company and its Subsidiaries each (i) has made or filed all federal, state and local income
and all foreign income and franchise tax returns, reports and declarations required by any jurisdiction to which it is subject,
(ii) has paid all taxes and other governmental assessments and charges that are material in amount, shown or determined to be
due on such returns, reports and declarations and (iii) has set aside on its books provision reasonably adequate for the payment
of all material taxes for periods subsequent to the periods to which such returns, reports or declarations apply. There are no
unpaid taxes in any material amount claimed to be due by the taxing authority of any jurisdiction, and the officers of the Company
or of any Subsidiary know of no basis for any such claim.

 

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

 

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(cc)
Accountants. The Company’s accounting firm is set forth on Schedule 3.1(cc) of the Disclosure Schedules. To
the knowledge and belief of the Company, such accounting firm: (i) is a registered public accounting firm as required by the Exchange
Act and (ii) shall express its opinion with respect to the financial statements to be included in the Company’s Annual Report
for the fiscal year ending December 31, 2017. There are no disagreements of any kind presently existing, or reasonably anticipated
by the Company to arise, between the Company and such accountants.

 

(dd)
Acknowledgment Regarding Purchasers’ Purchase of Securities. The Company acknowledges and agrees that each of the
Purchasers is acting solely in the capacity of an arm’s length purchaser with respect to the Transaction Documents and the
transactions contemplated thereby. The Company further acknowledges that no Purchaser is acting as a financial advisor or fiduciary
of the Company (or in any similar capacity) with respect to the Transaction Documents and the transactions contemplated thereby
and any advice given by any Purchaser or any of their respective representatives or agents in connection with the Transaction
Documents and the transactions contemplated thereby is merely incidental to the Purchasers’ purchase of the Securities.
The Company further represents to each Purchaser that the Company’s decision to enter into this Agreement and the other
Transaction Documents has been based solely on the independent evaluation of the transactions contemplated hereby by the Company
and its representatives.

 

(ee)
Acknowledgment Regarding Purchaser’s Trading Activity. Anything in this Agreement or elsewhere herein to the contrary
notwithstanding (except for Sections 3.2(e) and 4.16 hereof), it is understood and acknowledged by the Company that: (i) none
of the Purchasers has been asked by the Company to agree, nor has any Purchaser agreed, to desist from purchasing or selling,
long and/or short, securities of the Company, or “derivative” securities based on securities issued by the Company
or to hold the Securities for any specified term, (ii) past or future open market or other transactions by any Purchaser, specifically
including, without limitation, Short Sales or “derivative” transactions, before or after the closing of this or future
private placement transactions, may negatively impact the market price of the Company’s publicly-traded securities, (iii)
any Purchaser, and counter-parties in “derivative” transactions to which any such Purchaser is a party, directly or
indirectly, may presently have a “short” position in the Ordinary Shares and (iv) each Purchaser shall not be deemed
to have any affiliation with or control over any arm’s length counter-party in any “derivative” transaction.
The Company further understands and acknowledges that (y) one or more Purchasers may engage in hedging activities at various times
during the period that the Securities are outstanding, including, without limitation, during the periods that the value of the
Underlying Shares deliverable with respect to Securities are being determined, and (z) such hedging activities (if any) could
reduce the value of the existing stockholders’ equity interests in the Company at and after the time that the hedging activities
are being conducted. The Company acknowledges that such aforementioned hedging activities do not constitute a breach of any of
the Transaction Documents. The Company acknowledges that anything to the contrary in the Transaction Documents notwithstanding,
Purchaser may sell long any Underlying shares it anticipates receiving after conversion of any part of a Note or exercise of a
Warrant.

 

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

 

(gg)
Money Laundering. The operations of the Company and its Subsidiaries are and have been conducted at all times in compliance
with applicable financial record-keeping and reporting requirements of the Currency and Foreign Transactions Reporting Act of
1970, as amended, applicable money laundering statutes and applicable rules and regulations thereunder (collectively, the “Money
Laundering Laws”), and no action, suit or proceeding by or before any court or governmental agency, authority or body
or any arbitrator involving the Company or any Subsidiary with respect to the Money Laundering Laws is pending or, to the knowledge
of the Company or any Subsidiary, threatened.

 

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

 

(ii)
Office of Foreign Assets Control. Neither the Company nor any Subsidiary nor, to the Company’s knowledge, any director,
officer, agent, employee or affiliate of the Company is currently subject to any U.S. sanctions administered by the Office of
Foreign Assets Control of the U.S. Treasury Department (“OFAC”).

 

(jj)
Private Placement. Assuming the accuracy of the Purchasers’ representations and warranties set forth in Section 3.2,
no registration under the Securities Act is required for the offer and sale of the Securities by the Company to the Purchasers
as contemplated hereby. The issuance and sale of the Securities hereunder does not contravene the rules and regulations of the
Trading Market.

 

(kk)
No General Solicitation. Neither the Company nor any person acting on behalf of the Company has offered or sold any of
the Securities by any form of general solicitation or general advertising. The Company has offered the Securities for sale only
to the Purchasers and certain other “accredited investors” within the meaning of Rule 501 under the Securities Act.

 

(ll)
Indebtedness and Seniority. As of the date hereof, all Indebtedness and Liens of the Company and the principal terms thereof
are set forth on Schedule 3.1(ll). Except as set forth on Schedule 3.1(ll), as of the Closing Date, no Indebtedness
or other equity of the Company is or will be senior to the Notes in right of payment, whether with respect to interest or upon
liquidation or dissolution, or otherwise, other than indebtedness secured by purchase money security interests (which is senior
only as to underlying assets covered thereby) and capital lease obligations (which is senior only as to the property covered thereby).

 

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(mm) Listing
and Maintenance Requirements. The Ordinary Shares are listed on the OTCQB maintained by the OTC Markets Group Inc. under
the symbol PVNNF. Except as set forth in the SEC Reports, the Company has not, in the twelve (12) months preceding the date hereof,
received notice from any Trading Market on which the Ordinary Shares are or has been listed or quoted to the effect that the
Company is not in compliance with the listing or maintenance requirements of such Trading Market.

 

(nn)
FDA. The Company has no applications pending before the jurisdiction of the U.S. Food and Drug Administration (“FDA”)
and none of the Company’s products are subject to nor require the approval of the FDA.

 

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

 

(pp)
Regulatory Matters. The Company and its Subsidiaries have complied in all material respects with all statutes and regulations
related to the research, manufacture and sale of its products to the extent applicable to the Company’s and its Subsidiaries’
activities. Items manufactured or under investigation by the Company and its Subsidiaries comply with all applicable manufacturing
practices regulations and other requirements established by government regulators in the jurisdictions in which the Company or
its Subsidiaries manufacture or sell their products. Except as disclosed in the SEC Reports, the Company is not and its Subsidiaries
are not the subject of any investigation by any competent authority with respect to the development, testing, manufacturing and
distribution of their products, nor has any investigation, prosecution, or other enforcement action been threatened by any regulatory
agency. Except as disclosed in the SEC Reports, neither the Company nor any of its Subsidiaries has received from any regulatory
agency any letter or other document asserting that the Company or any Subsidiary has violated any statute or regulation enforced
by that agency with respect to the development, testing, manufacturing and distribution of their products. To the Company’s
knowledge, research conducted by or for the Company and its Subsidiaries has complied in all material respects with all applicable
legal requirements.

 

(qq)
Other Covered Persons. Except as set forth on Schedule 3.1(s) or to attorneys for legal services, the Company is
not aware of any person that has been or will be paid (directly or indirectly) remuneration in connection with the sale of any
Regulation D Securities pursuant to this Agreement.

 

(rr)Survival.
The foregoing representations and warranties shall survive the Closing.

 

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3.2 Representations
and Warranties of the Purchasers. Each Purchaser, for itself and for no other Purchaser, hereby represents and
warrants as of the date hereof and as of the Closing Date to the Company as follows (unless as of a specific date
therein):

 

(a) Organization;
Authority. Such Purchaser is either an individual or an entity duly incorporated or formed, validly existing and in good standing
under the laws of the jurisdiction of its incorporation or formation with full right, corporate, partnership, limited liability
company or similar power and authority to enter into and to consummate the transactions contemplated by the Transaction Documents
and otherwise to carry out its obligations hereunder and thereunder. The execution and delivery of the Transaction Documents and
performance by such Purchaser of the transactions contemplated by the Transaction Documents have been duly authorized by all necessary
corporate, partnership, limited liability company or similar action, as applicable, on the part of such Purchaser. Each Transaction
Document to which it is a party has been duly executed by such Purchaser, and when delivered by such Purchaser in accordance with
the terms hereof, will constitute the valid and legally binding obligation of such Purchaser, enforceable against it in accordance
with its terms, except: (i) as limited by general equitable principles and applicable bankruptcy, insolvency, reorganization,
moratorium and other laws of general application affecting enforcement of creditors’ rights generally, (ii) as limited by
laws relating to the availability of specific performance, injunctive relief or other equitable remedies and (iii) insofar as
indemnification and contribution provisions may be limited by applicable law.

 

(b) Understandings
or Arrangements. Such Purchaser understands that the Securities are “restricted securities” and have not been
registered under the Securities Act or any applicable state securities law and is acquiring the Securities as principal for its
own account and not with a view to or for distributing or reselling such Securities or any part thereof in violation of the Securities
Act or any applicable state securities law, has no present intention of distributing any of such Securities in violation of the
Securities Act or any applicable state securities law and has no direct or indirect arrangement or understandings with any other
persons to distribute or regarding the distribution of such Securities in violation of the Securities Act or any applicable state
securities law (this representation and warranty not limiting such Purchaser’s right to sell the Securities pursuant to
any registration statement or otherwise in compliance with applicable federal and state securities laws). Such Purchaser is acquiring
the Securities hereunder in the ordinary course of its business.

 

(c) Purchaser
Status. At the time such Purchaser was offered the Securities, it was, and as of the date hereof it is, and on each date on
which it exercises any Warrants or converts any Notes it will be either: (i) an “accredited investor” as defined in
Rule 501(a)(1), (a)(2), (a)(3), (a)(7) or (a)(8) under the Securities Act or (ii) a “qualified institutional buyer”
as defined in Rule 144A(a) under the Securities Act. Such Purchaser is not required to be registered as a broker-dealer under
Section 15 of the Exchange Act. Such Purchaser has the authority and is duly and legally qualified to purchase and own the Securities.
Such Purchaser is able to bear the risk of such investment for an indefinite period and to afford a complete loss thereof. Such
Purchaser has provided the information in the Accredited Investor Questionnaire attached hereto as Exhibit  F (the “Investor
Questionnaire”). The information set forth on the signature pages hereto and the Investor Questionnaire regarding such
Purchaser is true and complete in all respects as of the date of this Agreement. Except as disclosed in the Investor Questionnaire,
such Purchaser has had no position, office or other material relationship within the past three years with the Company or Persons
(as defined below) known to such Purchaser to be affiliates of the Company, and is not a member of the Financial Industry Regulatory
Authority or an “associated person” (as such term is defined under the FINRA Membership and Registration Rules Section
1011).

 

(d) Experience
of Such Purchaser. Such Purchaser, either alone or together with its representatives, has such knowledge, sophistication
and experience in business and financial matters so as to be capable of evaluating the merits and risks of the prospective
investment in the Securities, and has so evaluated the merits and risks of such investment. Such Purchaser is able to
bear the economic risk of an investment in the Securities and, at the present time, is able to afford a complete loss of such
investment.

 

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(e) Information
on Company. Such Purchaser has been furnished with or has had access to the EDGAR Website of the Commission to the Company’s
filings made with the Commission during the period from the date that is two years preceding the date hereof through the tenth
(10th) business day preceding the Closing Date, including the Company’s Annual Report on Form 20-F filed with the Commission
on May 16, 2017 (hereinafter referred to collectively as the “SEC Reports”). Such Purchaser was afforded (i)
the opportunity to ask such questions as such Purchaser deemed necessary of, and to receive answers from, representatives of the
Company concerning the merits and risks of acquiring the Securities; (ii) the right of access to information about the Company
and its financial condition, results of operations, business, properties, management and prospects sufficient to enable such Purchaser
to evaluate the Securities; and (iii) the opportunity to obtain such additional information that the Company possesses or can
acquire without unreasonable effort or expense that is necessary to make an informed investment decision with respect to acquiring
the Securities.

 

(f) Compliance
with Securities Act; Reliance on Exemptions. Such Purchaser understands and agrees that the Securities have not been registered
under the 1933 Act or any applicable state securities laws, by reason of their issuance in a transaction that does not require
registration under the 1933 Act, and that such Securities must be held indefinitely unless a subsequent disposition is registered
under the 1933 Act or any applicable state securities laws or is exempt from such registration. Such Purchaser understands and
agrees that the Securities are being offered and sold to such Purchaser in reliance on specific exemptions from the registration
requirements of federal and state securities laws and regulations and that the Company is relying in part upon the truth and accuracy
of, and such Purchaser’s compliance with, the representations, warranties, agreements, acknowledgments and understandings
of such Purchaser set forth herein in order to determine the availability of such exemptions and the eligibility of such Purchaser
to acquire the Securities.

 

(g) Communication
of Offer. Such Purchaser is not purchasing the Securities as a result of any “general solicitation” or “general
advertising,” as such terms are defined in Regulation D, which includes, but is not limited to, any advertisement, article,
notice or other communication regarding the Securities published in any newspaper, magazine or similar media or on the internet
or broadcast over television, radio or the internet or presented at any seminar or any other general solicitation or general advertisement.

 

(h) No
Governmental Review. Such Purchaser understands that no federal or state agency or any other governmental or state agency
has passed on or made recommendations or endorsement of the Securities or the suitability of the investment in the Securities
nor have such authorities passed upon or endorsed the merits of the Offering.

 

(i) No
Conflicts. The execution, delivery and performance of this Agreement and performance under the other Transaction
Documents and the consummation by such Purchaser of the transactions contemplated hereby and thereby or relating hereto or
thereto do not and will not (i) result in a violation of such Purchaser’s charter documents, bylaws or other
organizational documents, if applicable, (ii) conflict with nor constitute a default (or an event which with notice or lapse
of time or both would become a default) under any agreement to which such Purchaser is a party, nor (iii) result in a
violation of any law, rule, or regulation, or any order, judgment or decree of any court or governmental agency applicable to
such Purchaser or its properties (except for such conflicts, defaults and violations as would not, individually or in the
aggregate, have a material adverse effect on such Purchaser). Such Purchaser is not required to obtain any consent,
authorization or order of, or make any filing or registration with, any court or governmental agency in order for it to
execute, deliver or perform any of its obligations under this Agreement or perform under the other Transaction Documents nor
to purchase the Securities in accordance with the terms hereof, provided that for purposes of the representation made in this
sentence, such Purchaser is assuming and relying upon the accuracy of the relevant representations and agreements of the
Company herein.

 

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(j) Certain
Transactions and Confidentiality. Other than consummating the transactions contemplated hereunder, such Purchaser has not
directly or indirectly, nor has any Person acting on behalf of or pursuant to any understanding with Purchaser, executed any purchases
or sales, including Short Sales, of the securities of the Company during the period commencing as of the time that such Purchaser
first received a written term sheet from the Company or any other Person representing the Company setting forth the material terms
of the transactions contemplated hereby and ending immediately prior to the execution hereof.

 

(k) Limitation
of Representations. Anything to the contrary herein notwithstanding the Purchaser makes no representations or warranties with
regard to any laws, rules or regulation except with respect to the United States and its subdivisions and the jurisdiction of
its formation.

 

(l) Survival.
The foregoing representations and warranties shall survive the Closing.

 

The
Company acknowledges and agrees that the representations contained in Section 3.2 shall not modify, amend or affect such Purchaser’s
right to rely on the Company’s representations and warranties contained in this Agreement or any representations and warranties
contained in any other Transaction Document or any other document or instrument executed and/or delivered in connection with this
Agreement or the consummation of the transaction contemplated hereby.

 

ARTICLE
IV.

 

OTHER
AGREEMENTS OF THE PARTIES

 

4.1 Transfer
Restrictions.

 

(a) The
Securities may only be disposed of in compliance with state and federal securities laws. In connection with any transfer of Securities
other than pursuant to an effective registration statement or Rule 144, to the Company or to an Affiliate of a Purchaser or in
connection with a pledge as contemplated in Section 4.1(b), the Company may require the transferor thereof to provide to the Company,
at the Company’s expense, an opinion of counsel selected by the transferor and reasonably acceptable to the Company, the
form and substance of which opinion shall be reasonably satisfactory to the Company, to the effect that such transfer does not
require registration of such transferred Securities under the Securities Act. As a condition of transfer, any such transferee
shall agree in writing to be bound by the terms of this Agreement and shall have the rights and obligations of a Purchaser under
this Agreement and the other Transaction Documents.

 

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(b) Legend.
The Purchasers agree to the imprinting, so long as is required by this Section 4.1, of a legend on any of the Securities in
the following form:

 

[NEITHER]
THIS SECURITY [NOR THE SECURITIES INTO WHICH THIS SECURITY IS [EXERCISABLE] [CONVERTIBLE]] HAS [NOT] BEEN
REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN
EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND,
ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR
PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES
ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO
SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY. THIS SECURITY [AND THE SECURITIES
ISSUABLE UPON [EXERCISE] [CONVERSION] OF THIS SECURITY] MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT WITH
A REGISTERED BROKER-DEALER OR OTHER LOAN WITH A FINANCIAL INSTITUTION THAT IS AN “ACCREDITED INVESTOR” AS DEFINED
IN RULE 501(a) UNDER THE SECURITIES ACT OR OTHER LOAN SECURED BY SUCH SECURITIES.

 

(c) Pledge.
The Company acknowledges and agrees that a Purchaser may from time to time pledge pursuant to a bona fide
margin agreement with a registered broker-dealer or grant a security interest in some or all of the Securities to a
financial institution that is an “accredited investor” as defined in Rule 501(a) under the Securities Act and who
agrees to be bound by the provisions of this Agreement and, if required under the terms of such arrangement, such Purchaser
may transfer pledge or secure Securities to the pledgees or secured parties. Such a pledge or transfer would not be subject
to approval of the Company and no legal opinion of legal counsel of the pledgee, secured party or pledgor shall be required
in connection therewith. Further, no notice shall be required of such pledge. At the appropriate Purchaser’s expense,
the Company will execute and deliver such reasonable documentation as a pledgee or secured party of Securities may
reasonably request in connection with a pledge or transfer of the Securities.

 

(d) Legend
Removal. Certificates evidencing the Underlying Shares shall not be required to contain any legend
(“Unlegended Shares”) (including the legend set forth in Section 4.1(b) hereof): (i) while any
registration statement (including the Registration Statement) covering the resale of such security is effective under the
Securities Act, (ii) following any sale of such Underlying Shares pursuant to Rule 144, (iii) if such Underlying Shares are
eligible for sale under Rule 144, without the requirement for the Company to be in compliance with the current public
information required under Rule 144 as to such Underlying Shares and without volume or manner-of-sale restrictions or (iv) if
such legend is not required under applicable requirements of the Securities Act (including judicial interpretations and
pronouncements issued by the staff of the Commission). The Company shall cause its counsel or other counsel reasonably
acceptable to Purchaser to issue a legal opinion to the Transfer Agent during the time any of the aforedescribed conditions
apply, to effect the removal of the legend hereunder. If all or any Notes are converted or any portion of a Warrant is
exercised at a time when there is an effective registration statement to cover the resale of the Underlying Shares, or if
such Underlying Shares may be sold under Rule 144 or if such legend is not otherwise required under applicable requirements
of the Securities Act (including judicial interpretations and pronouncements issued by the staff of the Commission) then such
Underlying Shares shall be issued free of all legends. The Company agrees that following such time as such legend is no
longer required under this Section 4.1(d), it will, no later than five Trading Days following the delivery by a Purchaser
to the Company or the Transfer Agent of a certificate representing Underlying Shares, as applicable, issued with a
restrictive legend (such fifth Trading Day, the “Legend Removal Date”), deliver or cause to be delivered
to such Purchaser a certificate representing such shares that is free from all restrictive and other legends (however, the
Corporation shall use reasonable best efforts to deliver such shares within three Trading Days after delivery by Purchaser of
such unlegended Share certificate). The Company may not make any notation on its records or give instructions to the Transfer
Agent that enlarge the restrictions on transfer set forth in this Section 4.1. Certificates for Underlying Shares subject to
legend removal hereunder shall be transmitted by the Transfer Agent to the Purchaser by crediting the account of the
Purchaser’s prime broker with the Depository Trust Company System as directed by such Purchaser.

 

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(e) Legend
Removal Default. In addition to such Purchaser’s other available remedies, provided the conditions for
legend removal set forth in Section 4.1(d) exist, the Company shall pay to a Purchaser, in cash, as partial liquidated
damages and not as a penalty, for each $1,000 of Underlying Shares (based on the higher of the actual purchase price or VWAP
of the Ordinary Shares on the date such Securities are submitted to the Transfer Agent) delivered for removal of the
restrictive legend and subject to Section 4.1(d), $10 per Trading Day for each Trading Day commencing the first Trading Day
after the Legend Removal Date (increasing to $20 per Trading Day after such fifth Trading Day) until such certificate is
delivered without a legend. Nothing herein shall limit such Purchaser’s right to pursue actual damages for the
Company’s failure to deliver certificates representing any Securities as required by the Transaction Documents, and
such Purchaser shall have the right to pursue all remedies available to it at law or in equity including, without limitation,
a decree of specific performance and/or injunctive relief.

 

(f) DWAC. In
lieu of delivering physical certificates representing the Unlegended Shares, upon request of a Purchaser, so long as
the certificates therefor do not bear a legend and the Purchaser is not obligated to return such certificate for the
placement of a legend thereon, the Company shall cause its transfer agent to electronically transmit the Unlegended Shares by
crediting the account of Purchaser’s prime broker with the Depository Trust Company through its Deposit Withdrawal At
Custodian system, provided that the Company’s Ordinary Shares is DTC eligible and the Company’s transfer agent
participates in the Deposit Withdrawal at Custodian system. Such delivery must be made on or before the Legend Removal
Date.

 

(g) Injunction.
In the event a Purchaser shall request delivery of Unlegended Shares as described in this Section 4.1 and the Company is required
to deliver such Unlegended Shares, the Company may not refuse to deliver Unlegended Shares based on any claim that such Purchaser
or anyone associated or affiliated with such Purchaser has not complied with Purchaser’s obligations under the Transaction
Documents, or for any other reason, unless, an injunction or temporary restraining order from a court, on notice, restraining
and or enjoining delivery of such Unlegended Shares shall have been sought and obtained by the Company and the Company has posted
a surety bond for the benefit of such Purchaser in the amount of the greater of (i) 120% of the amount of the aggregate purchase
price of the Underlying Shares to be subject to the injunction or temporary restraining order, or (ii) the VWAP of the Ordinary
Shares on the trading day before the issue date of the injunction multiplied by the number of Unlegended Shares to be subject
to the injunction, which bond shall remain in effect until the completion of arbitration/litigation of the dispute and the proceeds
of which shall be payable to such Purchaser to the extent Purchaser obtains judgment in Purchaser’s favor.

 

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(h) Buy-In. In
addition to any other rights available to Purchaser, if the Company fails to deliver to a Purchaser Unlegended Shares
as required pursuant to this Agreement and after the Legend Removal Date the Purchaser, or a broker on the Purchaser’s
behalf, purchases (in an open market transaction or otherwise) Ordinary Shares to deliver in satisfaction of a sale by such
Purchaser of the Ordinary Shares which the Purchaser was entitled to receive in unlegended form from the Company (a
“Buy-In”), then the Company shall promptly pay in cash to the Purchaser (in addition to any
remedies available to or elected by the Purchaser) the amount, if any, by which (A) the Purchaser’s total purchase
price (including brokerage commissions, if any) for the Ordinary Shares so purchased exceeds (B) the aggregate purchase price
of the Ordinary Shares delivered to the Company for reissuance as Unlegended Shares together with interest thereon at a rate
of 15% per annum accruing until such amount and any accrued interest thereon is paid in full (which amount shall be paid as
liquidated damages and not as a penalty). For example, if a Purchaser purchases Ordinary Shares having a total purchase price
of $11,000 to cover a Buy-In with respect to $10,000 of purchase price of Shares delivered to the Company for reissuance as
Unlegended Shares, the Company shall be required to pay the Purchaser $1,000, plus interest, if any. The Purchaser shall
provide the Company written notice indicating the amounts payable to the Purchaser in respect of the Buy-In.

 

(i) Plan
of Distribution. Each Purchaser, severally and not jointly with the other Purchasers, agrees with the Company that
such Purchaser will sell any Securities pursuant to either the registration requirements of the Securities Act, including any
applicable prospectus delivery requirements, or an exemption therefrom, and that if Securities are sold pursuant to a
registration statement, they will be sold in compliance with the plan of distribution set forth therein, and acknowledges
that the removal of the restrictive legend from certificates representing Securities as set forth in this Section 4.1 is
predicated upon the Company’s reliance upon this understanding.

 

4.2Acknowledgment
of Dilution. The Company acknowledges that the issuance of the Securities may result in dilution of the outstanding
Ordinary Shares, which dilution may be substantial under certain market conditions. The Company further acknowledges that its
obligations under the Transaction Documents, including, without limitation, its obligation to issue the Underlying Shares pursuant
to the Transaction Documents, are unconditional and absolute and not subject to any right of set off, counterclaim, delay or reduction,
regardless of the effect of any such dilution or any claim the Company may have against any Purchaser and regardless of the dilutive
effect that such issuance may have on the ownership of the other stockholders of the Company.

 

4.3Furnishing
of Information; Public Information; Domestic Issuances; Filing Requirements.

 

(a) Until
the earliest of the time that (i) no Purchaser owns Securities or (ii) the Warrants have expired, the Company covenants to file
all required periodic reports with the Commission pursuant to Section 15(d) of the Exchange Act and under Section 12(b) or 12(g)
of the Exchange Act, maintain the registration of the Ordinary Shares under Section 12(b) or 12(g) of the Exchange Act and to
timely file (or obtain extensions in respect thereof and file within the applicable grace period) all reports required to be filed
by the Company after the date hereof pursuant to the Exchange Act and file such reports even if the Company is not then subject
to the reporting requirements of the Exchange Act.

 

(b) At
any time commencing on the Closing Date and ending at such time that all of the Securities may be sold without the
requirement for the Company to be in compliance with Rule 144(c)(1) and otherwise without restriction or limitation pursuant
to Rule 144, if the Company shall fail for any reason to satisfy the current public information requirement under Rule 144(c)
(a “Public Information Failure”), with respect to those securities that cannot be so sold, then, in addition to
such Purchaser’s other available remedies, the Company shall pay to a Purchaser, in cash, as partial liquidated damages
and not as a penalty, by reason of any such delay in or reduction of its ability to sell the Securities, an amount in cash
equal to one percent (1%) of the aggregate principal amount of Notes and accrued interest thereon, aggregate Exercise Price
of Warrant Shares held by such Purchaser on the day of a Public Information Failure and on every thirtieth (30th) day
(pro-rated for periods totaling less than thirty days) thereafter until the earlier of (a) the date such Public Information
Failure is cured and (b) such time that such public information is no longer required for the Purchasers to transfer
the Underlying Shares pursuant to Rule 144. The payments to which a Purchaser shall be entitled pursuant to this Section
4.3(b) are referred to herein as “Public Information Failure Payments.” Public Information Failure
Payments shall be paid on the earlier of (i) the last day of the calendar month during which such Public Information Failure
Payments are incurred and (ii) the third (3rd) Business Day after the event or failure giving rise to the Public Information
Failure Payments is cured. In the event the Company fails to make Public Information Failure Payments in a timely manner,
such Public Information Failure Payments shall bear interest at the rate of 1.5% per month (prorated for partial months)
until paid in full. Nothing herein shall limit such Purchaser’s right to pursue actual damages for the Public
Information Failure, and such Purchaser shall have the right to pursue all remedies available to it at law or in equity
including, without limitation, a decree of specific performance and/or injunctive relief.

 

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(c)
The Company agrees to file a form 10-Q for the quarter ending September 30, 2017 in compliance with the substance and filing time
such Form 10-Q would be required to be filed by a company subject to the filing requirements of Section 13 and 15(d) of the Exchange
Act; or a Form 6-K if not required to file such Form 10-Q and file such Form 6-K by the time and in the form otherwise applicable
to a company filing a Form 10-Q pursuant to Section 15(d) of the Exchange Act.

 

4.4Integration. The
Company shall not sell, offer for sale or solicit offers to buy or otherwise negotiate in respect of any security (as
defined in Section 2 of the Securities Act) that would be integrated with the offer or sale of the Securities in a
manner that would require the registration under the Securities Act of the sale of the Securities or that would be integrated
with the offer or sale of the Securities for purposes of the rules and regulations of any Trading Market such that it would
require shareholder approval prior to the closing of such other transaction or to effectuate such other transaction unless
shareholder approval is obtained before the earlier of the closing of such subsequent transaction or effectuation of such
other transaction.

 

4.5Conversion
and Exercise Procedures. Each of the form of Notice of Exercise included in the Warrants and the form of Notice of
Conversion included in the Notes set forth the totality of the procedures required of the Purchasers in order to exercise the
Warrants or convert the Notes. No additional legal opinion, other information or instructions shall be required of the Purchasers
to exercise their Warrants or convert their Notes. The Company shall honor exercises of the Warrants and conversions of the Notes
and shall deliver Underlying Shares in accordance with the terms, conditions and time periods set forth in the Transaction Documents.

 

4.6Securities
Laws Disclosure; Publicity. The Company shall on or before the fourth Trading Day following the Closing Date,
file a Current Report on Form 6-K including the Transaction Documents as exhibits thereto with the Commission (“Form 6-K”).
A form of the Form 6-K is annexed hereto as Exhibit D. Such Exhibit D will be identical to the Form 6-K which
will be filed with the Commission except for the omission of signatures thereto by the Company and auditors providing the
financial statements. From and after the filing of the Form 6-K, the Company represents to the Purchasers that it shall have
publicly disclosed all material, non-public information delivered to any of the Purchasers by the Company or any Subsidiary,
or any of their respective officers, directors, employees or agents in connection with the transactions contemplated by the
Transaction Documents. The Company and each Purchaser shall consult with each other in issuing any press releases with
respect to the transactions contemplated hereby, and neither the Company nor any Purchaser shall issue any press release nor
otherwise make any such public statement without the prior consent of the Company, with respect to any press release of any
Purchaser, or without the prior consent of each Purchaser, with respect to any press release of the Company, which consent
shall not unreasonably be withheld or delayed, except if such disclosure is required by law, in which case the disclosing
party shall promptly provide the other party with prior notice of such public statement or communication. Notwithstanding the
foregoing, the Company shall not publicly disclose the name of any Purchaser, or include the name of any Purchaser in any
filing with the Commission or any regulatory agency or Trading Market unless the name of such Purchaser is already included
in the body of the Transaction Documents, without the prior written consent of such Purchaser, except: (a) as required by
applicable federal securities law in connection with the filing of final Transaction Documents with the Commission and (b) to
the extent such disclosure is required by law or Trading Market regulations, in which case the Company shall provide the
Purchasers with prior notice of such disclosure permitted under this clause (b).

 

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

 

4.8Non-Public
Information. Except with respect to the material terms and conditions of the transactions contemplated by the Transaction
Documents, the Company covenants and agrees that neither it, nor any other Person acting on its behalf, will provide any Purchaser
or its agents or counsel with any information that the Company believes constitutes material non-public information, unless prior
thereto such Purchaser shall have entered into a written agreement with the Company regarding the confidentiality and use of such
information. The Company understands and confirms that each Purchaser shall be relying on the foregoing covenant in effecting
transactions in securities of the Company.

 

4.9Use
of Proceeds. The Company shall use the net proceeds from the sale of the Offering hereunder substantially for the
purposes set forth on Schedule 4.9 hereto and shall not use such proceeds:

 

(a) for
the satisfaction of any portion of the Company’s debt except as disclosed on Schedule 4.9 (other than payment of
trade payables in the ordinary course of the Company’s business and consistent with prior practices and repayment of certain
debt as identified and in the amounts set forth on Schedule 4.9),

 

(b) for
the redemption of any Ordinary Shares or Ordinary Shares Equivalents, (c) for the settlement of any outstanding litigation or
(d) in violation of FCPA or OFAC regulations.

 

4.10Indemnification
of Purchasers. Subject to the provisions of this Section 4.10, the Company will indemnify and hold each Purchaser
and its directors, officers, shareholders, members, partners, employees and agents (and any other Persons with a functionally
equivalent role of a Person holding such titles notwithstanding a lack of such title or any other title), each Person who
controls such Purchaser (within the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act), and the
directors, officers, shareholders, agents, members, partners or employees (and any other Persons with a functionally
equivalent role of a Person holding such titles notwithstanding a lack of such title or any other title) of such controlling
persons (each, a “Purchaser Party”) harmless from any and all losses, liabilities, obligations, claims,
contingencies, damages, costs and expenses, including all judgments, amounts paid in settlements, court costs and reasonable
attorneys’ fees and costs of investigation that any such Purchaser Party may suffer or incur as a result of or relating
to (a) any breach of any of the representations, warranties, covenants or agreements made by the Company in this Agreement or
in the other Transaction Documents or (b) any action instituted against Purchaser Parties in any capacity, or any of them or
their respective Affiliates, by any stockholder of the Company who is not an Affiliate of such Purchaser Party, with respect
to any of the transactions contemplated by the Transaction Documents (unless such action is based upon a breach of such
Purchaser Party’s representations, warranties or covenants under the Transaction Documents or any agreements or
understandings such Purchaser Party may have with any such stockholder or any violations by such Purchaser Party of state or
federal securities laws or any conduct by such Purchaser Party which constitutes fraud, gross negligence, willful misconduct
or malfeasance). If any action shall be brought against any Purchaser Party in respect of which indemnity may be sought
pursuant to this Agreement, such Purchaser Party shall promptly notify the Company in writing, and the Company shall have the
right to assume the defense thereof with counsel of its own choosing reasonably acceptable to the Purchaser Party. Any
Purchaser Party shall have the right to employ separate counsel in any such action and participate in the defense thereof,
but the fees and expenses of such counsel shall be at the expense of such Purchaser Party except to the extent that (i) the
employment thereof has been specifically authorized by the Company in writing, (ii) the Company has failed after a reasonable
period of time to assume such defense and to employ counsel or (iii) in such action there is, in the reasonable opinion of
counsel, a material conflict on any material issue between the position of the Company and the position of such Purchaser
Party, in which case the Company shall be responsible for the reasonable fees and expenses of no more than one such separate
counsel for all Purchaser Parties. The Company will not be liable to any Purchaser Party under this Agreement (y) for any
settlement by a Purchaser Party effected without the Company’s prior written consent, which shall not be unreasonably
withheld or delayed; or (z) to the extent, but only to the extent that a loss, claim, damage or liability is attributable to
any Purchaser Party’s breach of its material representations, warranties or covenants under the Transaction Documents.
The indemnification required by this Section 4.10 shall be made by periodic payments of the amount thereof during the course
of the investigation or defense, as and when bills are received or are incurred. The indemnity agreements contained herein
shall be in addition to any cause of action or similar right of any Purchaser Party against the Company or others and any
liabilities the Company may be subject to pursuant to law.

 

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4.11 Reservation
and Listing of Securities.

 

(a) The
Company shall maintain a reserve from its duly authorized Ordinary Shares for issuance pursuant to the Transaction Documents in
such amount as may then be required to fulfill its obligations in full under the Transaction Documents, but not less than the
Required Minimum.

 

(b) If,
on any date, the number of authorized but unissued (and otherwise unreserved) Ordinary Shares is less than the Required Minimum
on such date, then the Board of Directors shall amend the Company’s certificate or articles of incorporation to increase
the number of authorized but unissued Ordinary Shares to at least the Required Minimum at such time, as soon as possible and in
any event not later than the 60th day after such date.

 

(c) The
Company shall prior to the Closing, if applicable: (i) in the time and manner required by the principal Trading Market,
prepare and file with such Trading Market an additional shares listing application covering a number of Ordinary Shares at
least equal to the Required Minimum on the date of such application, (ii) take all steps necessary to cause such Ordinary
Shares to be approved for listing or quotation on such Trading Market as soon as possible thereafter, (iii) provide to the
Purchasers evidence of such listing or quotation and (iv) maintain the listing or quotation of such Ordinary Shares on any
date at least equal to the Required Minimum on such date on such Trading Market or another Trading Market. The Company will
take all action necessary to continue the listing or quotation and trading of its Ordinary Shares on a Trading Market until
the later of (i) at least five years after the Closing Date, and (ii) for so long as the Notes or Warrants are outstanding,
and will comply in all respects with the Company’s reporting, filing and other obligations under the bylaws or rules of
the Trading Market. In the event the aforedescribed listing is not continuously maintained for five years after the Closing
Date and for so long as Notes or Warrants are outstanding (a “Listing Default”), then in addition to any
other rights the Purchasers may have hereunder or under applicable law, on the first day of a Listing Default and on each
monthly anniversary of each such Listing Default date (if the applicable Listing Default shall not have been cured by such
date) until the applicable Listing Default is cured, the Company shall pay to each Purchaser an amount in cash, as partial
liquidated damages and not as a penalty, equal to one percent (1%) of the aggregate principal amount of Notes, conversion
price of Conversion Shares, and purchase price of Warrant Shares held by such Purchaser or which may be acquired upon
exercise of Warrants on the day of a Listing Default and on every thirtieth day (pro-rated for periods less than thirty days)
thereafter until the date such Listing Default is cured. If the Company fails to pay any liquidated damages pursuant to this
Section in a timely manner, the Company will pay interest thereon at a rate of 1.5% per month (pro-rated for partial
months) to the Purchaser.

 

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4.12
Form D; Blue Sky Filings. The Company agrees to timely file a Form D with respect to the Securities as required under Regulation
D and to provide a copy thereof, promptly upon request of any Purchaser. The Company shall take such action as the Company shall
reasonably determine is necessary in order to obtain an exemption for, or to qualify the Securities for, sale to the Purchasers
at a Closing under applicable securities or “Blue Sky” laws of the states of the United States, and shall provide
evidence of such actions promptly upon request of any Purchaser.

 

4.13 Subsequent
Equity Sales. From the date hereof until such time as the Notes are no longer outstanding, the Company will not, without
the consent of a Majority in Interest, enter into nor allow the exercise of any Equity Line of Credit or similar agreement
including the Outstanding Equity Line, which shall remain inactive through such date, issue or agree to issue floating or
Variable Priced Equity Linked Instruments nor issue or agree to issue any of the foregoing or equity with price reset
rights (subject to adjustment for stock splits, distributions, dividends, recapitalizations and the like) (collectively, a
“Variable Rate Transaction”). For purposes hereof, “Equity Line of Credit” shall
include any transaction involving a written agreement between the Company and an investor or underwriter or an investor or
underwriter has the right to “call” the Company’s securities whereby the Company has the right to
“put” its securities to the investor or underwriter over an agreed period of time and at an agreed price or price
formula, and “Variable Priced Equity Linked Instruments” shall include: (A) any debt or equity securities
which are convertible into, exercisable or exchangeable for, or carry the right to receive additional Ordinary Shares or
Ordinary Shares Equivalents or any of the foregoing at a price that can be reduced either (1) at any conversion, exercise or
exchange rate or other price that is based upon and/or varies with the trading prices of or quotations for Ordinary Shares at
any time after the initial issuance of such debt or equity security, or (2) with a fixed conversion, exercise or exchange
price that is subject to being reset at some future date at any time after the initial issuance of such debt or equity
security due to a change in the market price of the Company’s Ordinary Shares since date of initial issuance, or upon
the issuance of any debt, equity or Ordinary Shares Equivalent, and (B) any amortizing convertible security which
amortizes prior to its maturity date, where the Company is required or has the option to (or any investor in such transaction
has the option to require the Company to) make such amortization payments in Ordinary Shares which are valued at a price that
is based upon and/or varies with the trading prices of or quotations for Ordinary Shares at any time after the initial
issuance of such debt or equity security (whether or not such payments in stock are subject to certain equity conditions).
For purposes of determining the total consideration for a convertible instrument (including a right to purchase equity of the
Company) issued, subject to an original issue or similar discount or which principal amount is directly or indirectly
increased after issuance, the consideration will be deemed to be the actual net cash amount received by the Company in
consideration of the original issuance of such convertible instrument. For so long as the Notes are outstanding, the Company
will not, without the consent of a Majority in Interest, issue any Ordinary Shares or Ordinary Shares Equivalents to
officers, directors, and employees of the Company unless such issuance is an Exempt Issuance or in the amounts and on the
terms set forth on Schedule 4.13. For so long as any Notes are outstanding, the Company will not amend the terms of
any securities or Ordinary Shares Equivalents or of any agreement outstanding or in effect as of the date of this Agreement
pursuant to which same were or may be acquired without the consent of a Majority in Interest, if the result of such amendment
would be at an effective price per share of Ordinary Shares less than the lower of the Conversion Price or Warrant Exercise
Price in effect at the time of such amendment. The restrictions and limitations in this Section 4.13 are in addition to and
shall apply whether or not a Purchaser exercises its rights pursuant to Section 4.17 and Section 4.23. Unless otherwise
specifically set forth in the Transaction Documents, these Transaction Documents shall not restrict the Company from
issuing any equity.

 

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4.14
Equal Treatment of Purchasers. No consideration (including any modification of any Transaction Document) shall be offered
or paid to any Person to amend or consent to a waiver or modification of any provision of any of this Agreement unless the same
consideration is also offered on a ratable basis to all of the parties to this Agreement. For clarification purposes, this provision
constitutes a separate right granted to each Purchaser by the Company and negotiated separately by each Purchaser, and is intended
for the Company to treat the Purchasers as a class and shall not in any way be construed as the Purchasers acting in concert or
as a group with respect to the purchase, disposition or voting of Securities or otherwise.

 

4.15
Capital Changes. Until the one year anniversary of the Closing Date, the Company shall not undertake a reverse or forward
stock split or reclassification of the Ordinary Shares without ten (10) days prior written notice to the Purchasers.

 

4.16
Certain Transactions and Confidentiality. Each Purchaser, severally and not jointly with the other Purchasers, covenants
that neither it, nor any Affiliate acting on such Purchaser’s behalf or pursuant to any understanding with such Purchaser
will execute any purchases or sales, including Short Sales, of any of the Company’s securities during the period commencing
with the execution of this Agreement and ending at such time that the transactions contemplated by this Agreement are first publicly
announced pursuant to a press release or Form 6-K as described in Section 4.6. Each Purchaser, severally and not jointly with
the other Purchasers, covenants that until such time as the transactions contemplated by this Agreement are publicly disclosed
by the Company pursuant to a press release or Form 6-K as described in Section 4.6, such Purchaser will maintain the confidentiality
of the existence and terms of this transaction and the information included in the Transaction Documents and the Disclosure Schedules.
Further, each Purchaser severally and not jointly with the other Purchasers covenants that neither it, nor any of its Affiliates
will engage in any Short Sale transactions at any time while it beneficially owns any Securities. Notwithstanding the foregoing,
and notwithstanding anything contained in this Agreement to the contrary, the Company expressly acknowledges and agrees that (i)
no Purchaser makes any representation, warranty or covenant hereby that it will not engage in effecting transactions in any securities
of the Company after the time that the transactions contemplated by this Agreement are first publicly announced pursuant to a
press release or Form 6-K as described in Section 4.6, (ii) no Purchaser shall be restricted or prohibited from effecting any
transactions in any securities of the Company in accordance with applicable securities laws from and after the time that the transactions
contemplated by this Agreement are first publicly announced pursuant to a press release or Form 6-K, and (iii) no Purchaser shall
have any duty of confidentiality to the Company or its Subsidiaries after the filing of the Form 6-K. Notwithstanding the foregoing,
in the case of a Purchaser that is a multi-managed investment vehicle whereby separate portfolio managers manage separate portions
of such Purchaser’s assets and the portfolio managers have no direct knowledge of the investment decisions made by the portfolio
managers managing other portions of such Purchaser’s assets, the covenant set forth above shall only apply with respect
to the portion of assets managed by the portfolio manager that made the investment decision to purchase the Securities covered
by this Agreement.

 

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4.17 Participation
in Future Financing.

 

(a) Until
eighteen (18) months after the Closing Date upon any proposed issuance by the Company or any of its Subsidiaries of
Ordinary Shares, Ordinary Shares Equivalents, Indebtedness or a combination thereof, other than (i) a rights offering to all
holders of Ordinary Shares (which may include extending such rights offering to holders of Notes on an as-converted basis),
or (ii) an Exempt Issuance (each such proposed issuance other than (a) (i) and (ii), a “Subsequent
Financing”), the Purchasers and the Subsequent Purchasers shall have the right to participate up to an amount of
the Subsequent Financing equal to 50% of the Subsequent Financing (the “Participation Maximum”) pro rata
to each other in proportion to principal amounts of indebtedness issued on the Closing Date and any other applicable closing
dates pursuant to which Subsequent Purchasers purchased securities on the same terms, conditions and price provided for in
the Subsequent Financing, unless the Subsequent Financing is an underwritten public offering, in which case the Company shall
notify each Purchaser of such public offering when it is lawful for the Company to do so, but no Purchaser shall be entitled
to purchase any particular amount of such public offering without the approval of the lead underwriter of such underwritten
public offering.

 

(b) At
least ten (10) Trading Days prior to the closing of the Subsequent Financing, the Company shall deliver to each Purchaser a written
notice of its intention to effect a Subsequent Financing (“Pre-Notice”), which Pre-Notice shall ask such Purchaser
if it wants to review the details of such financing (such additional notice, a “Subsequent Financing Notice”).
Upon the request of a Purchaser, and only upon a request by such Purchaser, for a Subsequent Financing Notice, the Company shall
promptly, but no later than one (1) Trading Day after such request, deliver a Subsequent Financing Notice to such Purchaser. The
requesting Purchaser shall be deemed to have acknowledged that the Subsequent Financing Notice may contain material non-public
information. The Subsequent Financing Notice shall describe in reasonable detail the proposed terms of such Subsequent Financing,
the amount of proceeds intended to be raised thereunder and the Person or Persons through or with whom such Subsequent Financing
is proposed to be effected and shall include a term sheet or similar document relating thereto as an attachment.

 

(c) Any
Purchaser desiring to participate in such Subsequent Financing must provide written notice to the Company by not later than 5:30
p.m. (New York City time) on the tenth (10th) Trading Day after all of the Purchasers have received the Pre-Notice
that the Purchaser is willing to participate in the Subsequent Financing, the amount of such Purchaser’s participation,
and representing and warranting that such Purchaser has such funds ready, willing, and available for investment on the terms set
forth in the Subsequent Financing Notice. If the Company receives no such notice from a Purchaser as of such tenth (10th)
Trading Day, such Purchaser shall be deemed to have notified the Company that it does not elect to participate.

 

(d) If
by 5:30 p.m. (New York City time) on the tenth (10th ) Trading Day after all of the Purchasers have received the Pre-Notice,
notifications by the Purchasers of their willingness to participate in the Subsequent Financing (or to cause their designees to
participate) is, in the aggregate, less than the total amount of the Subsequent Financing, then the Company may affect the remaining
portion of such Subsequent Financing on the terms and with the Persons set forth in the Subsequent Financing Notice and the Purchasers
shall simultaneously affect their portion of such Subsequent Financing as set forth in their notifications to the Company consistent
with the terms set forth in the Subsequent Financing Notice.

 

(e) If
by 5:30 p.m. (New York City time) on the tenth (10th) Trading Day after all of the Purchasers have received the Pre-Notice,
the Company receives responses to a Subsequent Financing Notice from Purchasers seeking to purchase more than the aggregate amount
of the Participation Maximum, each such Purchaser shall have the right to purchase its Pro Rata Portion (as defined below) of
the Participation Maximum. “Pro Rata Portion” means the ratio of (x) the principal amount of Notes purchased
hereunder by a Purchaser participating under this Section 4.17 and (y) the sum of the aggregate principal amounts of Notes purchased
hereunder by all Purchasers participating under this Section 4.17.

 

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(f) The
Company must provide the Purchasers with a second Subsequent Financing Notice, and the Purchasers will again have the right
of participation set forth above in this Section 4.18, if the Subsequent Financing subject to the initial Subsequent
Financing Notice is not consummated for any reason on the terms set forth in such Subsequent Financing Notice within sixty
(60) Trading Days after the date of the initial Subsequent Financing Notice.

 

(g) The
Company and each Purchaser agree that if any Purchaser elects to participate in the Subsequent Financing, the transaction
documents related to the Subsequent Financing shall not include any term or provision whereby such Purchaser shall be
required to agree to any restrictions on trading as to any of the Securities purchased hereunder (for avoidance of doubt, the
securities purchased in the Subsequent Financing shall not be considered securities purchased hereunder) or be required to
consent to any amendment to or termination of, or grant any waiver, release or the like under or in connection with, this
Agreement, without the prior written consent of such Purchaser.

 

(h) Notwithstanding
anything to the contrary in this Section 4.17 and unless otherwise agreed to by such Purchaser, the Company shall either confirm
in writing to such Purchaser that the transaction with respect to the Subsequent Financing has been abandoned or shall publicly
disclose its intention to issue the securities in the Subsequent Financing, in either case in such a manner such that such Purchaser
will not be in possession of any material, non-public information, by the seventeenth (17th) Business Day following
delivery of the Subsequent Financing Notice. If by such seventeenth (17th) Business Day, no public disclosure regarding
a transaction with respect to the Subsequent Financing has been made, and no notice regarding the abandonment of such transaction
has been received by such Purchaser, such transaction shall be deemed to have been abandoned and such Purchaser shall not be deemed
to be in possession of any material, non-public information with respect to the Company or any of its Subsidiaries.

 

4.18
Purchaser’s Exercise Limitations. The Company shall not effect exercise of the rights granted in Sections 4.17 and
4.23 of this Agreement, and a Purchaser shall not have the right to exercise any portion of such rights granted in Sections 4.17
and 4.23 only to the extent that after giving effect to such exercise, the Purchaser, would beneficially own in excess of the
Beneficial Ownership Limitation (as defined in the Note), applied in the manner set forth in the Note. In such event the right
by Purchaser to benefit from such rights or receive shares in excess of the Beneficial Ownership Limitation shall be held in abeyance
until such times as such excess shares shall not exceed the Beneficial Ownership Limitation, provided the Purchaser complies with
the Purchaser’s other obligations in connection with the exercise by Purchaser of its rights pursuant to Sections 4.17 and
4.23.

 

4.19
Maintenance of Property. The Company shall and cause each Subsidiary to keep all of its property, which is necessary or
useful to the conduct of its business, in good working order and condition, ordinary wear and tear excepted.

 

4.20
Preservation of Corporate Existence. The Company shall preserve and maintain its corporate existence, rights, privileges
and franchises in the jurisdiction of its incorporation, and qualify and remain qualified, as a foreign corporation in each jurisdiction
in which such qualification is necessary in view of its business or operations and where the failure to qualify or remain qualified
might reasonably have a Material Adverse Effect upon the financial condition, business or operations of the Company taken as a
whole.

 

4.21
DTC Program. At all times that Notes or Warrants are outstanding, the Company shall employ as the transfer agent for its
Ordinary Shares and Underlying Shares a participant in the Depository Trust Company Automated Securities Transfer Program and
cause the Ordinary Shares and Underlying Shares to be transferable pursuant to such program.

 

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4.22 Reimbursement.
If any Purchaser becomes involved in any capacity in any Proceeding 35 by or against any Person who is a stockholder
of the Company (except as a result of sales, pledges, margin sales and similar transactions by such Purchaser to or with any
current stockholder), solely as a result of such Purchaser’s acquisition of the Securities under this Agreement, the
Company will reimburse such Purchaser for its reasonable legal and other expenses (including the cost of any
investigation preparation and travel in connection therewith) incurred in connection therewith, as such expenses are
incurred. The reimbursement obligations of the Company under this paragraph shall be in addition to any liability which the
Company may otherwise have, shall extend upon the same terms and conditions to any Affiliates of the Purchasers who are
actually named in such action, proceeding or investigation, and partners, directors, agents, employees and controlling
persons (if any), as the case may be, of the Purchasers and any such Affiliate, and shall be binding upon and inure to the
benefit of any successors, assigns, heirs and personal representatives of the Company, the Purchasers and any such Affiliate
and any such Person. The Company also agrees that neither the Purchasers nor any such Affiliates, partners, directors,
agents, employees or controlling persons shall have any liability to the Company or any Person asserting claims on behalf of
or in right of the Company solely as a result of acquiring the Securities under this Agreement.

 

4.23
Registration Rights. Until twenty (20) months after the Closing Date and during the pendency of an Event of Default (as
defined in the Note), if any, or while an event which with the giving of notice or the passage of time could become an Event of
Default is extant, and only so long as Purchaser own any of the Securities, the Company will not grant any registration rights,
allow the exercise of any registration rights or file any registration statement (including Form S-3 or its equivalent) on behalf
of any holder or prospective holder of any securities of the Company unless the Company has previously filed a registration statement
on behalf of Purchasers with respect to all of the Underlying Shares and such registration statement had been continuously effective
for the sale of all the outstanding Underlying Shares for not less than six months.

 

4.24
Indebtedness. For so long as any amount of Note principal is outstanding, the Company will not incur any new Indebtedness
other than Permitted Indebtedness, and will not issue convertible debt instruments described in subpart (f) of the definition
of Exempt Issuance having a principal amount of more than US$1,666,667, in the aggregate, without the consent of the Majority
in Interest.

 

4.25
Notice of Disqualification Events. The Company will notify the Purchasers in writing, prior to the Closing Date of (i)
any Disqualification Event relating to any Issuer Covered Person and (ii) any event that would, with the passage of time, become
a Disqualification Event relating to any Issuer Covered Person not otherwise disclosed herein or in the SEC Reports.

 

4.26
No Exercise of Variable Priced Equity Linked Instruments. For so long as Notes are outstanding, the Company will not have
outstanding any exercisable Variable Priced Equity Linked Instruments, nor any debt or equity with anti-dilution, ratchet or reset
rights, except as set forth and described on Schedule 4.26.

 

4.27
Maintenance of Property and Insurance. Until the End Date, the Company shall keep all of its property, which is necessary
or useful to the conduct of its business, in good working order and condition or in no worse condition than on the date hereof,
if not in good working order and condition, ordinary wear and tear excepted. Until the End Date, the Company will maintain insurance
coverage of the type customary for its industry and not less than the amount in effect as of the Closing Date.

 

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4.28 Most
Favored Nation Provision. From the date hereof and for so long as a Purchaser holds any Securities, in the event that the
Company issues or sells any Ordinary Shares or Ordinary Shares Equivalents pursuant to the Exempt Issuance described in
subpart (f) of the definition of Exempt Issuance and if a Purchaser then holding outstanding Securities reasonably believes
that any of the terms and conditions appurtenant to such issuance or sale are more favorable to such Subsequent
Purchaser than are the terms and conditions granted to the Purchasers hereunder, upon notice to the Company by such Purchaser
within ten (10) Trading Days after written notice (as described below) to Purchaser of such issuance or sale (which shall
include a copy of all agreements and documents employed in connection with such issuance), the Company shall amend the terms
of this transaction as to such Purchaser only, so as to give such Purchaser the benefit of such more favorable terms or
conditions. The Company shall provide each Purchaser with notice of any such proposed issuance or sale not later than ten
(10) Trading Days before such issuance or sale.

 

4.29
Duration of Undertakings. Unless otherwise stated in this Article IV or pursuant to applicable law, all of the Company’s
undertakings, obligations and responsibilities set forth in Article IV of this Agreement shall remain in effect for at least so
long as any Securities remain outstanding.

 

ARTICLE
V.

 

MISCELLANEOUS

 

5.1
Termination. This Agreement may be terminated by any Purchaser or the Company, as to such Purchaser’s or the Company’s
obligations hereunder with respect to such Purchaser that have not yet been consummated, only and without any effect whatsoever
on the obligations between the Company and the other Purchasers, by written notice to the other parties, if the Closing has not
been consummated on or before August 29, 2017; provided, however, that such termination will not affect the right of any
party to sue for any breach by any other party (or parties).

 

5.2
Fees and Expenses. At the Closing, the Company has agreed to pay G&M for the legal fees in connection with G&M’s
representation of Alpha Capital Anstalt (and no other Purchasers) and the Closing in the amount of $18,000. Except as expressly
set forth in the Transaction Documents and on Schedule 3.1(s), each party shall pay the fees and expenses of its advisers,
counsel, accountants and other experts, if any, and all other expenses incurred by such party incident to the negotiation, preparation,
execution, delivery and performance of this Agreement. The Company shall pay all Transfer Agent fees (including, without limitation,
any fees required for same-day processing of any instruction letter delivered by the Company and any conversion or exercise notice
delivered by a Purchaser) and stamp taxes and other taxes and duties (other than income and similar taxes), if any, levied in
connection with the delivery of any Securities to the Purchasers. All of the Purchasers are advised to seek the advice of their
own attorneys.

 

5.3
Entire Agreement. The Transaction Documents, together with the exhibits and schedules thereto, contain the entire understanding
of the parties with respect to the subject matter hereof and thereof and supersede all prior agreements and understandings, oral
or written, with respect to such matters, which the parties acknowledge have been merged into such documents, exhibits and schedules.

 

5.4 Notices.
All notices, demands, requests, consents, approvals, and other communications required or permitted hereunder shall be in
writing and, unless otherwise specified herein, shall be (i) personally served, (ii) deposited in the mail, registered or
certified, return receipt requested, postage prepaid, (iii) delivered by reputable air courier service with charges
prepaid, or (iv) transmitted by hand delivery, telegram, or facsimile, addressed as set forth below or to such other address
as such party shall have specified most recently by written notice. Any notice or other communication required or permitted
to be given hereunder shall be deemed effective (a) upon hand delivery or delivery by facsimile, with accurate confirmation
generated by the transmitting facsimile machine, at the address or number designated below (if delivered on a business day
during normal business hours where such notice is to be received), or the first business day following such delivery (if
delivered other than on a business day during normal business hours where such notice is to be received) or (b) on the second
business day following the date of mailing by express courier service, fully prepaid, addressed to such address, or
upon actual receipt of such mailing, whichever shall first occur. The addresses for such communications shall be: (i) if to
the Company, to: P.V. Nano Cell Ltd., c/o Corporation Service Company 1180 Avenue of the Americas, Suite 210, New York, NY
10036 with an additional copy by fax only to (which shall not constitute notice): Greenberg Traurig, P.A., 333 S.E.
2nd Avenue, Miami, FL 33131, Attn: Robert L. Grossman, Esq., facsimile: 305-961-5756, and (ii) if to the
Purchasers, to: the addresses and fax numbers indicated on the signature pages hereto, with an additional copy by fax only to
(which shall not constitute notice): Grushko & Mittman, P.C., 515 Rockaway Avenue, Valley Stream, New York 11581, fax:
(212) 697-3575. For so long as any notice may or be required to be given to the Company pursuant to the transaction
documents, the Company will maintain an address for notice purposes in New York, New York or Miami, Florida. Any
notice required to be given to the Company pursuant to the Transaction Documents will also be given via email to fernando@pvnanocell.com.
Failure to give such email notice or failure of such notice to be received shall under no circumstances be deemed a defect in
the giving of the required notice.

 

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5.5
Amendments; Waivers. No provision of this Agreement or the other Transaction Document may be waived, modified, supplemented
or amended except in a written instrument signed, in the case of an amendment, by the Company and Purchasers holding at least
a majority in interest of the Securities issued pursuant to this Agreement then outstanding which must include Alpha Capital Anstalt
for so long as Alpha Capital Anstalt owns Notes having a principal amount of not less than $100,000 and/or Ordinary Shares into
which such amount of Notes have been converted (the “Majority in Interest”), or, in the case of a waiver, by
the party against whom enforcement of any such waived provision is sought. Whenever the term “consent of the Purchasers”
or a similar term is employed herein, it shall mean the consent of a Majority in Interest. No waiver of any default with respect
to any provision, condition or requirement of this Agreement or the other Transaction Document shall be deemed to be a continuing
waiver in the future or a waiver of any subsequent default or a waiver of any other provision, condition or requirement hereof,
nor shall any delay or omission of any party to exercise any right hereunder in any manner impair the exercise of any such right.

 

5.6
Headings. The headings herein are for convenience only, do not constitute a part of this Agreement and shall not be deemed
to limit or affect any of the provisions hereof.

 

5.7
Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their successors
and permitted assigns. The Company may not assign this Agreement or any rights or obligations hereunder without the prior written
consent of each Purchaser (other than by merger). Following a Closing, any Purchaser may assign any or all of its rights under
this Agreement to any Person to whom such Purchaser assigns or transfers any Securities in compliance with this Agreement and
applicable law, provided that such transferee agrees in writing to be bound, with respect to the transferred Securities, by the
provisions of the Transaction Documents that apply to the “Purchasers.”

 

5.8
No Third-Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective successors
and permitted assigns and is not for the benefit of, nor may any provision hereof be enforced by, any other Person, except as
otherwise set forth in Section 4.10.

 

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5.9 Governing
Law. All questions concerning the construction, validity, enforcement and interpretation of the Transaction
Documents shall be governed by and construed and enforced in accordance with the internal laws of the State of New York,
without regard to the principles of conflicts of law thereof. Each party agrees that all legal proceedings concerning the
interpretations, enforcement and defense of the transactions contemplated by this Agreement and any other Transaction
Documents (whether brought against a party hereto or its respective affiliates, directors, officers, shareholders, partners,
members, employees or agents) shall be commenced exclusively in the state and federal courts sitting in the City of New York.
Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in the City of
New York, Borough of Manhattan for the adjudication of any dispute hereunder or in connection herewith or with any
transaction contemplated hereby or discussed herein (including with respect to the enforcement of any of the Transaction
Documents), and hereby irrevocably waives, and agrees not to assert in any action, suit or proceeding, any claim that it is
not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is improper or is an
inconvenient venue for such proceeding. Each party hereby irrevocably waives personal service of process and consents to
process being served in any such suit, action or proceeding by mailing a copy thereof via registered or certified mail or
overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Agreement
and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained
herein shall be deemed to limit in any way any right to serve process in any other manner permitted by law. If either party
shall commence an action or proceeding to enforce any provisions of the Transaction Documents, then, in addition to
the obligations of the Company under Section 4.10, the prevailing party in such action, suit or proceeding shall be
reimbursed by the other party for its reasonable attorneys’ fees and other costs and expenses incurred with the
investigation, preparation and prosecution of such action or proceeding.

 

5.10
Survival. The representations and warranties contained herein shall survive the Closing and the delivery of the Securities.

 

5.11
Execution. This Agreement may be executed in two or more counterparts, all of which when taken together shall be considered
one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to each other
party, it being understood that the parties need not sign the same counterpart. In the event that any signature is delivered by
facsimile transmission or by e-mail delivery of a “.pdf” format data file, such signature shall create a valid and
binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as if
such facsimile or “.pdf” signature page were an original thereof.

 

5.12 Severability. If
any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction to
be invalid, illegal, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth
herein shall remain in full force and effect and shall in no way be affected, impaired or invalidated, and the parties hereto
shall use their commercially reasonable efforts to find and employ an alternative means to achieve the same or substantially
the same result as that contemplated by such term, provision, covenant or restriction. It is hereby stipulated and declared
to be the intention of the parties that they would have executed the remaining terms, provisions, covenants and restrictions
without including any of such that may be hereafter declared invalid, illegal, void or unenforceable.

 

5.13
Rescission and Withdrawal Right. Notwithstanding anything to the contrary contained in (and without limiting any similar
provisions of) any of the other Transaction Documents, whenever any Purchaser exercises a right, election, demand or option under
a Transaction Document and the Company does not timely perform its related obligations within the periods therein provided, then
such Purchaser may, at any time prior to the Company’s performance of such obligations, rescind or withdraw, in its sole
discretion from time to time upon written notice to the Company, any relevant notice, demand or election in whole or in part without
prejudice to its future actions and rights; provided, however, that in the case of a rescission of a conversion of a Note
or exercise of a Warrant, the applicable Purchaser shall be required to return any Ordinary Shares subject to any such rescinded
conversion or exercise notice concurrently with the return to such Purchaser of the aggregate Exercise Price paid to the Company
for such shares and the restoration of such Purchaser’s right to acquire such shares pursuant to such Purchaser’s
Warrant (including, issuance of a replacement warrant certificate evidencing such restored right).

 

    39

     

    

 

5.14
Replacement of Securities. If any certificate or instrument evidencing any Securities is mutilated, lost, stolen or destroyed,
the Company shall issue or cause to be issued in exchange and substitution for and upon cancellation thereof (in the case of mutilation),
or in lieu of and substitution therefor, a new certificate or instrument, but only upon receipt of evidence reasonably satisfactory
to the Company of such loss, theft or destruction. The applicant for a new certificate or instrument under such circumstances
shall also pay any reasonable third-party costs (including customary indemnity) associated with the issuance of such replacement
Securities.

 

5.15 Remedies. In
addition to being entitled to exercise all rights provided herein or granted by law, including recovery of
damages, each of the Purchasers and the Company will be entitled to specific performance under the Transaction Documents. The
parties agree that monetary damages may not be adequate compensation for any loss incurred by reason of any breach of
obligations contained in the Transaction Documents and hereby agree to waive and not to assert in any action for specific
performance of any such obligation the defense that a remedy at law would be adequate.

 

5.16
Payment Set Aside. To the extent that the Company makes a payment or payments to any Purchaser pursuant to any Transaction
Document or a Purchaser enforces or exercises its rights thereunder, and such payment or payments or the proceeds of such enforcement
or exercise or any part thereof are subsequently invalidated, declared to be fraudulent or preferential, set aside, recovered
from, disgorged by or are required to be refunded, repaid or otherwise restored to the Company, a trustee, receiver or any other
Person under any law (including, without limitation, any bankruptcy law, state or federal law, common law or equitable cause of
action), then to the extent of any such restoration the obligation or part thereof originally intended to be satisfied shall be
revived and continued in full force and effect as if such payment had not been made or such enforcement or setoff had not occurred.

 

5.17
Usury. To the extent it may lawfully do so, the Company hereby agrees not to insist upon or plead or in any manner whatsoever
claim, and will resist any and all efforts to be compelled to take the benefit or advantage of, usury laws wherever enacted, now
or at any time hereafter in force, in connection with any claim, action or proceeding that may be brought by any Purchaser in
order to enforce any right or remedy under any Transaction Document. Notwithstanding any provision to the contrary contained in
any Transaction Document, it is expressly agreed and provided that the total liability of the Company under the Transaction Documents
for payments in the nature of interest shall not exceed the maximum lawful rate authorized under applicable law (the “Maximum
Rate”), and, without limiting the foregoing, in no event shall any rate of interest or default interest, or both of
them, when aggregated with any other sums in the nature of interest that the Company may be obligated to pay under the Transaction
Documents exceed such Maximum Rate. It is agreed that if the maximum contract rate of interest allowed by law and applicable to
the Transaction Documents is increased or decreased by statute or any official governmental action subsequent to the date hereof,
the new maximum contract rate of interest allowed by law will be the Maximum Rate applicable to the Transaction Documents from
the Closing Date thereof forward, unless such application is precluded by applicable law. If under any circumstances whatsoever,
interest in excess of the Maximum Rate is paid by the Company to any Purchaser with respect to indebtedness evidenced by the Transaction
Documents, such excess shall be applied by such Purchaser to the unpaid principal balance of any such indebtedness or be refunded
to the Company, the manner of handling such excess to be at such Purchaser’s election.

 

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5.18 Independent
Nature of Purchasers’ Obligations and Rights. The obligations of each Purchaser under any Transaction Document are
several and not joint with the obligations of any other Purchaser, and no Purchaser shall be responsible in any way for the
performance or non-performance of the obligations of any other Purchaser under any Transaction Document. Nothing
contained herein or in any other Transaction Document, and no action taken by any Purchaser pursuant hereto or thereto, shall
be deemed to constitute the Purchasers as a partnership, an association, a joint venture or any other kind of entity, or
create a presumption that the Purchasers are in any way acting in concert or as a group with respect to such obligations or
the transactions contemplated by the Transaction Documents. Each Purchaser shall be entitled to independently protect and
enforce its rights, including, without limitation, the rights arising out of this Agreement or out of the other Transaction
Documents, and it shall not be necessary for any other Purchaser to be joined as an additional party in any proceeding for
such purpose. Each Purchaser has been represented by its own separate legal counsel in its review and negotiation of the
Transaction Documents. For reasons of administrative convenience only, each Purchaser and its respective counsel have chosen
to communicate with the Company through G&M. The Company has elected to provide all Purchasers with the same terms and
Transaction Documents for the convenience of the Company and not because it was required or requested to do so by any of the
Purchasers. It is expressly understood and agreed that each provision contained in this Agreement and in each other
Transaction Document is between the Company and a Purchaser, solely, and not between the Company and the Purchasers
collectively and not between and among the Purchasers.

 

5.19
Liquidated Damages. The Company’s obligations to pay any partial liquidated damages or other amounts owing under
the Transaction Documents is a continuing obligation of the Company and shall not terminate until all unpaid partial liquidated
damages and other amounts have been paid notwithstanding the fact that the instrument or security pursuant to which such partial
liquidated damages or other amounts are due and payable shall have been canceled.

 

5.20
Saturdays, Sundays, Holidays, etc. If the last or appointed day for the taking of any action or the expiration of any right
required or granted herein shall not be a Business Day, then such action may be taken or such right may be exercised on the next
succeeding Business Day.

 

5.21 Construction. The
parties agree that each of them and/or their respective counsel have reviewed and had an opportunity to revise
the Transaction Documents and, therefore, the normal rule of construction to the effect that any ambiguities are to be
resolved against the drafting party shall not be employed in the interpretation of the Transaction Documents or any
amendments thereto. In addition, each and every reference to share prices and Ordinary Shares in any Transaction Document
shall be subject to adjustment for reverse and forward stock splits, stock dividends, stock combinations and other similar
transactions of the Ordinary Shares that occur after the date of this Agreement.

 

5.22
WAIVER OF JURY TRIAL. IN ANY ACTION, SUIT, OR PROCEEDING IN ANY JURISDICTION BROUGHT BY ANY PARTY AGAINST ANY OTHER
PARTY, THE PARTIES EACH KNOWINGLY AND INTENTIONALLY, TO THE GREATEST EXTENT PERMITTED BY APPLICABLE LAW, HEREBY ABSOLUTELY, UNCONDITIONALLY,
IRREVOCABLY AND EXPRESSLY WAIVES FOREVER TRIAL BY JURY.

 

5.23
Currency. Unless indicated otherwise, references to currency and money shall mean currency of the United States of America.

 

5.24
Equitable Adjustment. Trading volume amounts, price/volume amounts, the amount of Warrants, the amount of Ordinary Shares
identified in this Agreement, Conversion Price, Exercise Price, Underlying Shares and similar figures in the Transaction Documents
shall be equitably adjusted (but without duplication) to offset the effect of stock splits, similar events and as otherwise described
in this Agreement, Note and Warrants.

 

(Signature
Pages Follow)

 

    41

     

    

 

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

 

	P.V. NANO CELL LTD.	 	Address for Notice:
	 	 	 	 
	 	 	 	P.V. Nano Cell Ltd.,
    c/o Corporation Service Company 1180 Avenue of the Americas, Suite 210, New York, NY 10036
	By:	/s/ Dr. Fernando de la
    Vega	 	 
	 	Name: Dr. Fernando de la Vega	 	 
	 	Title: CEO	 	 

 

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

 

Greenberg
Traurig, P.A.

333
S.E. 2nd Avenue

Miami,
FL 33131

Attn:
Robert L. Grossman, Esq.

Fax:
305-961-5756

 

[REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK

 

SIGNATURE PAGE FOR PURCHASER FOLLOWS]

 

    42

     

    

 

[PURCHASER
SIGNATURE PAGE TO P.V. NANO CELL LTD.

 

SECURITIES
PURCHASE AGREEMENT]

 

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

 

Name
of Purchaser: ______________________________________________________________

 

Signature
of Authorized Signatory of Purchaser: _______________________________________

 

Name
of Authorized Signatory:_____________________________________________________

 

Title
of Authorized Signatory:______________________________________________________

 

Email
Address of Authorized Signatory:_______________________________________________

 

Facsimile
Number of Authorized Signatory:____________________________________________

 

State
of Residence of Purchaser:____________________________________________________

 

Address
for Notice to Purchaser:

 

Address
for Delivery of Securities to Purchaser (if not same as address for notice):

 

Subscription
Amount: US$       

 

Note
principal amount:________________

 

Warrants:_________________

 

EIN
Number, if applicable, will be provided under separate cover:__________________

 

Date:_________________________

 

[SIGNATURE
PAGES CONTINUE]

 

    43

     

    

 

EXHIBITS
AND SCHEDULES

 

	Exhibit A	Form of Note
	 	 
	Exhibit B	Form of Warrant
	 	 
	Exhibit C	Form of Legal Opinion
	 	 
	Exhibit D	Form of Form 6-K
	 	 
	Exhibit E	Form of Lockup Agreement
	 	 
	Exhibit F	Form of Accredited Investor Questionnaire
	 	 
	Schedule 1.1	Guaranties and Contingent Obligations
	 	 
	Schedule 2.2(a)(v)	Lockup Agreement Providers
	 	 
	Schedule 3.1(a)	Subsidiaries
	 	 
	Schedule 3.1(e)	Israeli Filings
	 	 
	Schedule 3.1(g)	New shares, ESOP and Digiflex deal on top of the loan
	 	 
	Schedule 3.1(i)	Stock Option Plan
	 	 
	Schedule 3.1(l)	Compliance
	 	 
	Schedule 3.1(n)	Title to Assets
	 	 
	Schedule 3.1(s)	Fees and expenses
	 	 
	Schedule 3.1(u)	Outstanding Registration Rights
	 	 
	Schedule 3.1(z)	Trial Balance as of July 27, 2017
	 	 
	Schedule 3.1(cc)	Accountants
	 	 
	Schedule 3.1(ll)	Indebtedness and Seniority
	 	 
	Schedule 4.9	Use of Proceeds
	 	 
	Schedule 4.13	Issuances to Officers, Directors and Employees
	 	 
	Schedule 4.26	No Exercise of Variable Priced Equity Linked Instruments

 

    44

     

    

 

EXHIBIT
A

 

NEITHER
THIS SECURITY NOR THE SECURITIES INTO WHICH THIS SECURITY IS CONVERTIBLE HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE
COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT
OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO
AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT
SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS EVIDENCED
BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO BORROWER.
THIS SECURITY AND THE SECURITIES ISSUABLE UPON CONVERSION OF THIS SECURITY MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN
ACCOUNT WITH A REGISTERED BROKER-DEALER OR OTHER LOAN WITH A FINANCIAL INSTITUTION THAT IS AN “ACCREDITED
INVESTOR” AS DEFINED IN RULE 501(a) UNDER THE SECURITIES ACT OR OTHER LOAN SECURED BY SUCH SECURITIES.

 

Original
Issue Date: August __, 2017

 

Principal
Amount: US$333,333

 

Purchase
Price: US$300,000

 

Original
Conversion Price (subject to adjustment herein): US$1.00

 

CONVERTIBLE
NOTE 

DUE OCTOBER __, 2018

 

THIS
CONVERTIBLE NOTE is one of a series of duly authorized and validly issued Notes of P.V. NANO CELL LTD., a company formed under
the laws of the State of Israel, (the “Borrower”), having its principal place of business at c/o Corporation Service
company, 1180 Avenue of the Americas, Suite 210, New York, NY 10036, due October __, 2018 (this note, the “Note”
and, collectively with the other notes of such series, the “Notes”).

 

FOR
VALUE RECEIVED, Borrower promises to pay to Alpha Capital Anstalt or its registered assigns (the “Holder”),
with an address at: Lettstrasse 32, 9490 Vaduz, Liechtenstein, Fax: [RC], or shall have paid pursuant to the terms hereunder,
the principal sum of three hundred thirty-three thousand and three hundred and thirty-three Dollars ($333,333) on October __,
2018 (the “Maturity Date”) or such earlier date as this Note is required or permitted to be repaid or such
later date if extended by the Holder as provided hereunder, and to pay interest, if any, to the Holder on the aggregate unconverted
and then outstanding principal amount of this Note in accordance with the provisions hereof.

 

This
Note is subject to the following additional provisions:

 

Section
1.Definitions. For the purposes hereof, in addition to the terms defined elsewhere in this Note, (a)
capitalized terms not otherwise defined herein shall have the meanings set forth in the Purchase Agreement and (b) the
following terms shall have the following meanings:

 

“Alternate
Consideration” shall have the meaning
set forth in Section 5(d).

 

    45

     

    

 

“Bankruptcy
Event” means any of the following events: (a) Borrower or any Subsidiary thereof commences a case or other
proceeding under any bankruptcy, reorganization, arrangement, adjustment of debt, relief of debtors, dissolution, insolvency
or liquidation or similar law of any jurisdiction relating to Borrower or any Subsidiary thereof, (b) there is commenced
against Borrower or any Subsidiary thereof any such case or proceeding that is not dismissed within 60 days after
commencement, (c) Borrower or any Subsidiary thereof is adjudicated insolvent or bankrupt or any order of relief or other
order approving any such case or proceeding is entered, (d) Borrower or any Subsidiary thereof suffers any appointment of any
custodian or the like for it or any substantial part of its property that is not discharged or stayed within 60 calendar days
after such appointment, (e) Borrower or any Subsidiary thereof makes a general assignment for the benefit of creditors, (f)
Borrower or any Subsidiary thereof calls a meeting of its creditors with a view to arranging a composition, adjustment or
restructuring of its debts or (g) Borrower or any Subsidiary thereof, by any act or failure to act, expressly indicates its
consent to, approval of or acquiescence in any of the foregoing or takes any corporate or other action for the purpose of
effecting any of the foregoing.

 

“Beneficial
Ownership Limitation” shall have the meaning set forth in Section 4(d).

 

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

 

“Buy-In”
shall have the meaning set forth in Section 4(c)(iv)

 

“Change
of Control Transaction” means, other than by means of conversion or exercise of the Notes and the Securities issued
together with the Notes, the occurrence after the date hereof of any of (a) an acquisition after the date hereof by an individual
or legal entity or “group” (as described in Rule 13d-5(b)(1) promulgated under the Exchange Act) of effective control
(whether through legal or beneficial ownership of capital stock of Borrower, by contract or otherwise) of in excess of 50% of
the voting securities of Borrower, (b) Borrower merges into or consolidates with any other Person, or any Person merges into or
consolidates with Borrower and, after giving effect to such transaction, the stockholders of Borrower immediately prior to such
transaction own less than 50% of the aggregate voting power of Borrower or the successor entity of such transaction, (c) Borrower
sells or transfers all or substantially all of its assets to another Person and the stockholders of Borrower immediately prior
to such transaction own less than 50% of the aggregate voting power of the acquiring entity immediately after the transaction,
(d) a replacement at one time or within a three year period of more than one-half of the members of the Board of Directors which
is not approved by a majority of those individuals who are members of the Board of Directors on the Original Issue Date (or by
those individuals who are serving as members of the Board of Directors on any date whose nomination to the Board of Directors
was approved by a majority of the members of the Board of Directors who are members on the date hereof), or (e) the execution
by Borrower of an agreement to which Borrower is a party or by which it is bound, providing for any of the events set forth in
clauses (a) through (d) above. The proposed transaction with Digiflex as described in the SEC Reports as updated by the Disclosure
Schedules to the Agreement is not a Change of Control Transaction.

 

“Conversion”
shall have the meaning ascribed to such term in Section 4.

 

“Conversion Date” shall have the meaning set forth
in Section 4(a).

 

“Conversion Price” shall have the meaning set forth in Section 4(b).

 

“Conversion
Shares” means, collectively, the Ordinary Shares issuable upon conversion of this Note in accordance with the terms
hereof.

 

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“Dilutive
Issuance” shall have the meaning set forth in Section 5(e).

 

“Equity
Conditions” means, during the period in question, (a) Borrower shall have duly honored all conversions scheduled to
occur or occurring by virtue of one or more Notices of Conversion of the applicable Holder on or prior to the dates so requested
or required, if any, (b) Borrower shall have paid all liquidated damages and other amounts owing to the applicable Holder in respect
of this Note and the other Transaction Documents, (c) the conditions for an Effective Date are in effect, (d) the Ordinary Shares
are listed or traded on a Trading Market, (e) there is a sufficient number of authorized, but unissued and otherwise unreserved,
Ordinary Shares for the issuance of all of the shares then issuable pursuant to the Transaction Documents, (f) an Event of Default
has not occurred, whether or not such Event of Default has been cured, (g) there is no existing event which, with the passage
of time or the giving of notice, would constitute an Event of Default, (h) the issuance of the shares in question to the applicable
Holder would not exceed the Beneficial Ownership Limitation, (i) there has been no public announcement of a pending or proposed
Fundamental Transaction or Change of Control Transaction that has not been consummated, and (j) the applicable Holder is not in
possession of any information provided by Borrower that constitutes, or may constitute, material non-public information.

 

“Event
of Default” shall have the meaning set forth in Section 7(a).

 

“Fundamental
Transaction” shall have the meaning set forth in Section 5(d).

 

“Interest Payment Date” shall have
the meaning set forth in Section 2(a).

 

“Mandatory
Default Amount” means the sum of (a) the greater of (i) the outstanding principal amount of this Note divided by the
Conversion Price on the date the Mandatory Default Amount is either (A) demanded (if demand or notice is required to create an
Event of Default), (B) otherwise due, or (C) paid in full, whichever has a lower Conversion Price, multiplied by the VWAP on the
date the Mandatory Default Amount is either (x) demanded, (y) due, or (z) paid in full, whichever is highest, or (ii) 115% of
the outstanding principal amount of this Note plus (b) all other amounts, costs, expenses and liquidated damages due in respect
of this Note.

 

“New
York Courts” shall have the meaning set forth in Section 8(d).

 

“Note Register” shall have the meaning
set forth in Section 3(c).

 

“Notice of Conversion” shall have the meaning set forth in Section 4(a).

 

“Original
Issue Date” means the date of the first issuance of the Notes, regardless of any transfers of any Note and regardless
of the number of instruments which may be issued to evidence such Notes.

 

“Other
Holder” means a holder of one or more Other Notes (collectively, “Other Holders”).

 

“Other
Notes” means Notes nearly identical to this Note issued to other Holders pursuant to the Purchase Agreement.

 

“Permitted
Indebtedness” means (a) any liabilities or indebtedness existing as of the date hereof, (b) any liabilities for
borrowed money or amounts owed not in excess of $150,000 in the aggregate (other than trade accounts payable and insurance
premium financing incurred in the ordinary course of business which shall be deemed Permitted Indebtedness) incurred after
the date hereof, (c) all guaranties, endorsements and other contingent obligations in respect of indebtedness of others
described on Schedule 1.1 to the Purchase Agreement incurred after the date hereof, whether or not the same are or should be
reflected in the Company’s consolidated balance sheet (or the notes thereto) not affecting more than $150,000 in the
aggregate, except guaranties by endorsement of negotiable instruments for deposit or collection or similar transactions in
the ordinary course of business; (d) the present value of any lease payments not in excess of $150,000 due under leases
required to be capitalized in accordance with GAAP and incurred after the date hereof; and (e) any liabilities for borrowed
money that are junior to this Note pursuant to an intercreditor agreement acceptable to Holder and the holders of which are
not granted any security interest.

 

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“Permitted
Lien” means the individual and collective reference to the following: (a) Liens for taxes, assessments and other governmental
charges or levies not yet due or Liens for taxes, assessments and other governmental charges or levies being contested in good
faith and by appropriate proceedings for which adequate reserves (in the good faith judgment of the management of Borrower) have
been established in accordance with GAAP, (b) Liens imposed by law which were incurred in the ordinary course of Borrower’s
business, such as carriers’, warehousemen’s and mechanics’ Liens, statutory landlords’ Liens, and other
similar Liens arising in the ordinary course of Borrower’s business, and which (x) do not individually or in the aggregate
materially detract from the value of such property or assets or materially impair the use thereof in the operation of the business
of Borrower and its consolidated Subsidiaries or (y) are being contested in good faith by appropriate proceedings, which proceedings
have the effect of preventing for the foreseeable future the forfeiture or sale of the property or asset subject to such Lien,
and (c) Liens in connection with Permitted Indebtedness under clauses (a) and (b) thereunder, and Liens incurred in connection
with Permitted Indebtedness under clause (c) thereunder, provided that such Liens are not secured by assets of Borrower or its
Subsidiaries other than the assets so acquired or leased.

 

“Purchase
Agreement” means the Securities Purchase Agreement, dated as of August ___, 2017 among Borrower and the original Holders,
as amended, modified or supplemented from time to time in accordance with its terms.

 

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

 

“Share
Delivery Date” shall have the meaning set forth in Section Section 4(c)(ii).

 

“Successor Entity” shall
have the meaning set forth in Section 5(d).

 

“Trading
Day” means a day on which the principal Trading Market is open for trading, and if the Borrower has no Trading Market,
shall mean a Business Day.

 

“Trading
Market” means any of the following markets or exchanges on which the Ordinary Shares are listed or quoted for trading
on the date in question: the NYSE MKT, the NASDAQ Capital Market, the NASDAQ Global Market, the NASDAQ Global Select Market, the
New York Stock Exchange, the OTC Bulletin Board, the OTCQB, or the OTCQX (or any successors to any of the foregoing).

 

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“VWAP”
means, for any date, the price determined by the first of the following clauses that applies: (a) if the Ordinary Shares are
then listed or quoted on a Trading Market, the daily volume weighted average price of the Ordinary Shares for such date (or
the nearest preceding date) on the Trading Market on which the Ordinary Shares are then listed or quoted as reported by
Bloomberg L.P. (based on a Trading Day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City time)), (b) if any of
the NASDAQ markets or exchanges is not a Trading Market, the volume weighted average price of the Ordinary Shares for
such date (or the nearest preceding date) on the OTC Bulletin Board, (c) if the Ordinary Shares are not then listed or quoted
for trading on the OTC Bulletin Board and if prices for the Ordinary Shares are then reported on the OTCQX, OTCQB or OTC Pink
Marketplace maintained by the OTC Markets Group, Inc. (or a similar organization or agency succeeding to its functions of
reporting prices), the volume weighted average price of the Ordinary Shares on the first such facility (or a similar
organization or agency succeeding to its functions of reporting prices), or (d) in all other cases, the fair market value of
an Ordinary Share as determined by an independent appraiser selected in good faith by the Purchasers of a majority in
interest of the Securities then outstanding and reasonably acceptable to Borrower, the fees and expenses of which shall be
paid by Borrower.

 

Section
2.Interest.

 

(a) Interest
in Cash or in Kind. Holders shall be entitled to receive, and Borrower shall pay, interest on the outstanding principal amount
of this Note compounded annually at the annual rate of six percent (6%) (as subject to increase as set forth in this Note) from
the Original Issue Date through the Maturity Date. Interest shall be payable on the six month anniversary of the Original Issue
Date, each three month anniversary thereafter and on the Maturity Date, when all amounts outstanding in connection with this Note
shall be due and payable (each an “Interest Payment Date”) (if any Interest Payment Date is not a Trading Day,
the applicable payment shall be due on the next succeeding Trading Day) in cash or at the election of the Borrower, such interest
may be paid in duly authorized, validly issued, fully paid and non-assessable Ordinary Shares, or a combination thereof (the amount
to be paid in Ordinary Shares, the “Interest Share Amount”). The Interest Share Amount will be determined by
dividing the amount of interest on the subject Interest Payment Date by the then applicable Conversion Price. The Holders shall
have the same rights and remedies with respect to the delivery of any such shares as if such shares were being issued pursuant
to Section 4. Borrower may not pay interest by delivery of an Interest Share Amount without the consent of the Holder in the event
that the Equity Conditions are not in effect on each day from thirty (30) Trading Days prior to the relevant Interest Payment
Date through the date the Interest Share Amount is delivered to the Holder.

 

(b) Payment
Grace Period. Except as set forth herein, the Borrower shall not have any grace period to pay any monetary amounts due under
this Note.

 

(c) Conversion
Privileges. The Conversion Rights set forth in Section 4 shall remain in full force and effect immediately from the date hereof
and until the Note is paid in full regardless of the occurrence of an Event of Default. This Note shall be payable in full on
the Maturity Date, unless previously converted into Ordinary Shares in accordance with Section 4 hereof.

 

(d) Application
of Payments. Interest on this Note shall be calculated on the basis of a 360-day year and the actual number of days elapsed.
Payments made in connection with this Note shall be applied first to amounts due hereunder other than principal and interest,
thereafter to interest and finally to principal.

 

(e) Pari
Passu. Except as otherwise set forth herein, all payments made on this Note and the Other Notes and all actions taken by the
Borrower with respect to this Note and the Other Notes, including but not limited to Optional Redemption, shall be made and taken
pari passu with respect to this Note and the Other Notes. Notwithstanding anything to the contrary contained herein or in the
Transaction Documents, it shall not be considered non-pari passu for a Holder or Other Holder to elect to receive interest paid
in Ordinary Shares or for the Borrower to actually pay interest in Ordinary Shares to such electing Holder or Other Holder.

 

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(f)Manner
and Place of Payment. Principal and interest on this Note and other payments in connection with this Note shall be
payable at the Holder’s offices as designated above in lawful money of the United States of America in immediately
available funds without set-off, deduction or counterclaim. Upon assignment of the interest of Holder in this Note, Borrower
shall instead make its payment pursuant to the assignee’s instructions upon receipt of written notice thereof. Except
as set forth herein, this Note may not be prepaid or mandatorily converted without the consent of the Holder.

 

Section
3.Registration of Transfers and Exchanges.

 

(a) Different
Denominations. This Note is exchangeable for an equal aggregate principal amount of Notes of different authorized denominations,
as requested by the Holder surrendering the same. No service charge will be payable for such registration of transfer or exchange.

 

(b) Investment
Representations. This Note has been issued subject to certain investment representations of the original Holder set forth
in the Purchase Agreement and may be transferred or exchanged only in compliance with the Purchase Agreement and applicable federal
and state securities laws and regulations.

 

(c) Reliance
on Note Register. Prior to due presentment for transfer to Borrower of this Note, Borrower and any agent of Borrower may treat
the Person in whose name this Note is duly registered on the Note Register as the owner hereof for the purpose of receiving payment
as herein provided and for all other purposes, whether or not this Note is overdue, and neither Borrower nor any such agent shall
be affected by notice to the contrary.

 

Section
4.Conversion.

 

(a) Voluntary
Conversion. At any time after the Original Issue Date until this Note is no longer outstanding, this Note shall be convertible,
in whole or in part, into Ordinary Shares at the option of the Holder, at any time and from time to time (subject to the conversion
limitations set forth in Section 4(d) hereof). The Holder shall effect conversions by delivering to Borrower a Notice of Conversion,
the form of which is attached hereto as Annex A (each, a “Notice of Conversion”), specifying therein the principal
amount of this Note to be converted at the election of the Holder and the date on which such conversion shall be effected (such
date, the “Conversion Date”). If no Conversion Date is specified in a Notice of Conversion, the Conversion
Date shall be the date that such Notice of Conversion is deemed delivered hereunder. To effect conversions hereunder, the Holder
shall not be required to physically surrender this Note to Borrower unless the entire principal amount of this Note has been so
converted and all other amount payable in connection with this Note have been made. Conversions of principal hereunder shall have
the effect of lowering the outstanding principal amount of this Note in an amount equal to the applicable conversion. The Holder
and Borrower shall maintain records showing the principal amount(s) converted and the date of such conversion(s). Borrower may
deliver an objection to any Notice of Conversion within one (1) Business Day of delivery of such Notice of Conversion. In the
event of any dispute or discrepancy, the records of the Holder shall be controlling and determinative in the absence of manifest
error. The Holder, and any assignee by acceptance of this Note, acknowledge and agree that, by reason of the provisions of this
paragraph, following conversion of a portion of this Note, the unpaid and unconverted principal amount of this Note may be less
than the amount stated on the face hereof.

 

(b) Conversion
Price. The conversion price for the principal and subject to the terms hereof, interest in connection with voluntary conversions
by the Holder and permissible payments of such interest, shall be One Dollar (US$1.00), subject to adjustment as described herein
(“Conversion Price”).

 

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(c)Mechanics
of Conversion.

 

(i) Conversion
Shares Issuable Upon Conversion of Principal Amount. The number of Conversion Shares issuable upon a conversion hereunder
shall be determined by the quotient obtained by dividing (x) the outstanding principal amount of this Note to be converted by
(y) the Conversion Price.

 

(ii) Delivery
of Certificate Upon Conversion. Not later than five (5) Trading Days after each Conversion Date (the “Share Delivery
Date”), Borrower shall deliver, or cause to be delivered, to the Holder a certificate or certificates representing the
Conversion Shares which, on or after the earlier of (i) the six month anniversary of the Original Issue Date or (ii) the Effective
Date, shall be free of restrictive legends and trading restrictions (other than those which may then be required by the Purchase
Agreement) representing the number of Conversion Shares being acquired upon the conversion of this Note. On or after the earlier
of (i) the six month anniversary of the Original Issue Date or (ii) the Effective Date, Borrower shall use its commercially reasonable
efforts to deliver any certificate or certificates required to be delivered by Borrower under this Section 4(c) electronically
through the Depository Trust Company or another established clearing corporation performing similar functions.

 

(iii) Failure
to Deliver Certificates.. If, in the case of any Notice of Conversion, such certificate or certificates are not delivered
to or as directed by the applicable Holder by the Share Delivery Date, the Holder shall be entitled to elect by written notice
to Borrower at any time on or before its receipt of such certificate or certificates, to rescind such Conversion, in which event
Borrower shall promptly return to the Holder any original Note delivered to Borrower and the Holder shall promptly return to Borrower
the Ordinary Shares certificates issued to such Holder pursuant to the rescinded Conversion Notice.

 

(iv) Obligation
Absolute. Borrower’s obligations to issue and deliver the Conversion Shares upon conversion of this Note in
accordance with the terms hereof are absolute and unconditional, irrespective of any action or inaction by the Holder to
enforce the same, any waiver or consent with respect to any provision hereof, the recovery of any judgment against any Person
or any action to enforce the same, or any setoff, counterclaim, recoupment, limitation or termination, or any breach or
alleged breach by the Holder or any other Person of any obligation to Borrower or any violation or alleged violation of law
by the Holder or any other Person, and irrespective of any other circumstance which might otherwise limit such obligation of
Borrower to the Holder in connection with the issuance of such Conversion Shares; provided, however, that such delivery shall
not operate as a waiver by Borrower of any such action Borrower may have against the Holder. In the event the Holder of this
Note shall elect to convert any or all of the outstanding principal amount hereof, Borrower may not refuse conversion based
on any claim that the Holder or anyone associated or affiliated with the Holder has been engaged in any violation of law,
agreement or for any other reason, unless an injunction from a court, on notice to Holder, restraining and or enjoining
conversion of all or part of this Note shall have been sought and obtained, and Borrower posts a surety bond for the benefit
of the Holder in the amount of 150% of the outstanding principal amount of this Note, which is subject to the injunction,
which bond shall remain in effect until the completion of arbitration/litigation of the underlying dispute and the proceeds
of which shall be payable to the Holder to the extent it obtains judgment. In the absence of such injunction, Borrower
shall issue Conversion Shares or, if applicable, cash, upon a properly noticed conversion. If Borrower fails for any reason
to deliver to the Holder such certificate or certificates pursuant to Section 4(c)(ii) by the Share Delivery Date, Borrower
shall pay to the Holder, in cash, as liquidated damages and not as a penalty, for each $1,000 of principal amount being
converted, $10 per Trading Day (increasing to $20 per Trading Day on the fifth (5th) Trading Day after such
liquidated damages being to accrue) for each Trading Day after such Share Delivery Date until such certificates are delivered
or Holder rescinds such conversion. Nothing herein shall limit a Holder’s right to pursue actual damages or declare an
Event of Default pursuant to Section 7 hereof for Borrower’s failure to deliver Conversion Shares within the period
specified herein and the Holder shall have the right to pursue all remedies available to it hereunder, at law or in
equity including, without limitation, a decree of specific performance and/or injunctive relief. The exercise of any such
rights shall not prohibit the Holder from seeking to enforce damages pursuant to any other Section hereof or under applicable
law.

 

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(v) Compensation
for Buy-In on Failure to Timely Deliver Certificates Upon Conversion. In addition to any other rights available to the Holder,
if Borrower fails for any reason to deliver to the Holder such certificate or certificates by the Share Delivery Date pursuant
to Section 4(c)(ii), and if after such Share Delivery Date the Holder is required by its brokerage firm to purchase (in an open
market transaction or otherwise), or the Holder or Holder’s brokerage firm otherwise purchases, Ordinary Shares to deliver
in satisfaction of a sale by the Holder of the Conversion Shares which the Holder was entitled to receive upon the conversion
relating to such Share Delivery Date (a “Buy-In”), then Borrower shall (A) pay in cash to the Holder (in addition
to any other remedies available to or elected by the Holder) the amount, if any, by which (x) the Holder’s total purchase
price (including any brokerage commissions) for the Ordinary Shares so purchased exceeds (y) the product of (1) the aggregate
number of Ordinary Shares that the Holder was entitled to receive from the conversion at issue multiplied by (2) the actual sale
price at which the sell order giving rise to such purchase obligation was executed (including any brokerage commissions) and (B)
at the option of the Holder, either reissue (if surrendered) this Note in a principal amount equal to the principal amount of
the attempted conversion (in which case such conversion shall be deemed rescinded) or deliver to the Holder the number of Ordinary
Shares that would have been issued if Borrower had timely complied with its delivery requirements under Section 4(c)(ii). For
example, if the Holder purchases Ordinary Shares having a total purchase price of $11,000 to cover a Buy-In with respect to an
attempted conversion of this Note with respect to which the actual sale price of the Conversion Shares (including any brokerage
commissions) giving rise to such purchase obligation was a total of $10,000 under clause (A) of the immediately preceding sentence,
Borrower shall be required to pay the Holder $1,000. The Holder shall provide Borrower written notice indicating the amounts payable
to the Holder in respect of the Buy-In and, upon request of Borrower, evidence of the amount of such loss. Nothing herein shall
limit a Holder’s right to pursue any other remedies available to it hereunder, at law or in equity including, without limitation,
a decree of specific performance and/or injunctive relief with respect to Borrower’s failure to timely deliver certificates
representing Ordinary Shares upon conversion of this Note as required pursuant to the terms hereof.

 

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(vi) Reservation
of Shares Issuable Upon Conversion. Borrower covenants that it will at all times reserve and keep available out of its
authorized and unissued Ordinary Shares for the sole purpose of issuance upon conversion of this Note as herein provided,
free from preemptive rights or any other actual contingent purchase rights of Persons other than the Holder (and the other
holders of the Notes), not less than such aggregate number of shares of the Ordinary Shares as shall (subject to the terms
and conditions set forth in the Purchase Agreement) be issuable (taking into account the adjustments and restrictions of
Section 5) upon the conversion of the then outstanding principal amount of this Note and interest which has accrued and would
accrue on such principal amount, assuming such principal amount was not converted through three years after the Original
Issue Date. Borrower covenants that all Ordinary Shares that shall be so issuable shall, upon issue, be duly authorized,
validly issued, fully paid and nonassessable.

 

(vii) Fractional
Shares. No fractional shares or scrip representing fractional shares shall be issued upon the conversion of this Note. As
to any fraction of a share which the Holder would otherwise be entitled to purchase upon such conversion, Borrower shall at its
election, either pay a cash adjustment in respect of such final fraction in an amount equal to such fraction multiplied by the
Conversion Price or round up to the next whole share.

 

(viii) Transfer
Taxes and Expenses. The issuance of certificates for shares of the Ordinary Shares on conversion of this Note shall be made
without charge to the Holder hereof for any documentary stamp or similar taxes that may be payable in respect of the issue or
delivery of such certificates, provided that, Borrower shall not be required to pay any tax that may be payable in respect of
any transfer involved in the issuance and delivery of any such certificate upon conversion in a name other than that of the Holder
of this Note so converted and Borrower shall not be required to issue or deliver such certificates unless or until the Person
or Persons requesting the issuance thereof shall have paid to Borrower the amount of such tax or shall have established to the
satisfaction of Borrower that such tax has been paid. Borrower shall pay all Transfer Agent fees required for same-day processing
of any Notice of Conversion.

 

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(d) Holder’s
Conversion Limitations. Borrower shall not affect any conversion of this Note, and a Holder shall not have the right
to convert any portion of this Note, to the extent that after giving effect to the conversion set forth on the applicable Notice
of Conversion, the Holder (together with the Holder’s Affiliates, and any Persons acting as a group together with the Holder
or any of the Holder’s Affiliates) would beneficially own in excess of the Beneficial Ownership Limitation (as defined below).
For purposes of the foregoing sentence, the number of Ordinary Shares beneficially owned by the Holder and its Affiliates shall
include the number of Ordinary Shares issuable upon conversion of this Note with respect to which such determination is being
made, but shall exclude the number of Ordinary Shares which are issuable upon (i) conversion of the remaining, unconverted principal
amount of this Note beneficially owned by the Holder or any of its Affiliates and (ii) exercise or conversion of the unexercised
or unconverted portion of any other securities of Borrower subject to a limitation on conversion or exercise analogous to the
limitation contained herein (including, without limitation, any other Notes or the Warrants) beneficially owned by the Holder
or any of its Affiliates. Except as set forth in the preceding sentence, for purposes of this Section 4(d), beneficial ownership
shall be calculated in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder.
To the extent that the limitation contained in this Section 4(d) applies, the determination of whether this Note is convertible
(in relation to other securities owned by the Holder together with any Affiliates) and of which principal amount of this Note
is convertible shall be in the sole discretion of the Holder, and the submission of a Notice of Conversion shall be deemed to
be the Holder’s determination of whether this Note may be converted (in relation to other securities owned by the Holder
together with any Affiliates) and which principal amount of this Note is convertible, in each case subject to the Beneficial Ownership
Limitation. To ensure compliance with this restriction, the Holder will be deemed to represent to Borrower each time it delivers
a Notice of Conversion that such Notice of Conversion has not violated the restrictions set forth in this paragraph and Borrower
shall have no obligation to verify or confirm the accuracy of such determination. In addition, a determination as to any group
status as contemplated above shall be determined in accordance with Section 13(d) of the Exchange Act and the rules and regulations
promulgated thereunder. For purposes of this Section 4(d), in determining the number of outstanding Ordinary Shares, the Holder
may rely on the number of outstanding Ordinary Shares as stated in the most recent of the following: (i) Borrower’s most
recent periodic or annual report filed with the Commission, as the case may be, (ii) a more recent public announcement by Borrower,
or (iii) a more recent written notice by Borrower or Borrower’s transfer agent setting forth the number of Ordinary Shares
outstanding. Upon the written or oral request of a Holder, Borrower shall within two Trading Days confirm orally and in writing
to the Holder the number of Ordinary Shares then outstanding. In any case, the number of outstanding Ordinary Shares shall be
determined after giving effect to the conversion or exercise of securities of Borrower, including this Note, by the Holder or
its Affiliates since the date as of which such number of outstanding Ordinary Shares was reported. The “Beneficial Ownership
Limitation” shall be 4.99% of the number of shares of the Ordinary Shares outstanding immediately after giving
effect to the issuance of Ordinary Shares issuable upon conversion of this Note held by the Holder. The Holder may decrease the
Beneficial Ownership Limitation at any time and the Holder, upon not less than 61 days’ prior notice to Borrower, may increase
the Beneficial Ownership Limitation provisions of this Section 4(d), provided that the Beneficial Ownership Limitation in no event
exceeds 9.99% of the number of shares of the Ordinary Shares outstanding immediately after giving effect to the issuance of Ordinary
Shares upon conversion of this Note held by the Holder and the Beneficial Ownership Limitation provisions of this Section 4(d)
shall continue to apply. Any such increase will not be effective until the 61st day after such notice is delivered to Borrower.
The Beneficial Ownership Limitation provisions of this paragraph shall be construed and implemented in a manner otherwise than
in strict conformity with the terms of this Section 4(d) to correct this paragraph (or any portion hereof) which may be defective
or inconsistent with the intended Beneficial Ownership Limitation contained herein or to make changes or supplements necessary
or desirable to properly give effect to such limitation. The limitations contained in this paragraph shall apply to a successor
holder of this Note.

 

(e) Redemption
Restrictions. Borrower shall have no right to require the Holder to surrender the Note for redemption without the consent
of the Holder except as described in this Note.

 

(f) Mandatory
Conversion. Subject to the limitation set forth in Section 4(d), if (i) all of the Equity Conditions are in effect, each
day during the Threshold Period, and (ii) the VWAP of the Ordinary Shares for any 10 consecutive Trading Days, which 10
consecutive Trading Day period shall commence six months after the Original Issue Date (“Threshold
Period”), equals or exceeds 250% of the then in effect Conversion Price (subject to adjustment for reverse and
forward stock splits and the like), the Company may deliver a written notice to all Holders and Subsequent Purchasers (as
defined in the Purchase Agreement) (a “Mandatory Conversion Notice” and the date such notice is delivered
to all Holders and Subsequent Purchasers, the “Mandatory Conversion Notice Date”) to cause such Holders
and Other Holders to convert (a “Mandatory Conversion”) up to all or part of such Notes and debt
instruments held by Subsequent Purchasers (as specified in such Mandatory Conversion Notice). It is agreed that the
“Conversion Date” for purposes of Section 4 in connection with a Mandatory Conversion Notice shall be deemed to
occur on the third (3rd) Trading Day following the Mandatory Conversion Notice Date (such third Trading Day, the
“Mandatory Conversion Date”). Borrower may not deliver a Mandatory Conversion Notice, and any Mandatory
Conversion Notice delivered by Borrower shall not be effective, unless all of the Equity Conditions have been met on each
Trading Day during the applicable Threshold Period and through and including the date that the Conversion Shares
issuable pursuant to such Mandatory Conversion Notice are actually delivered to the Holder pursuant to the Mandatory
Conversion Notice. Any Mandatory Conversion Notice shall be applied ratably to the Holder, all Other Holders and Subsequent
Purchasers based on each such Holder’s and Other Holders and Subsequent Purchasers initial Note and debt principal,
provided that any voluntary conversions by a Holder or other Holder during the Threshold Period through the Mandatory
Conversion Date shall be applied against such Holder’s pro rata allocation, thereby decreasing the aggregate
amount mandatorily convertible hereunder. For purposes of clarification, a Mandatory Conversion shall be subject to all of
the provisions of Section 4, including, without limitation, the provisions requiring payment of liquidated damages and
limitations on conversions. The maximum amount of all Conversion Shares issuable in connection with a Mandatory Conversion
Notice for all Mandatory Conversion Notices deliverable to Holders, Other Holders and Subsequent Purchasers may not exceed
twenty five percent (25%) of the trading volume component of the VWAP for the applicable Threshold Period. A
Mandatory Conversion Notice may not be given sooner than ten (10) Trading Days after the preceding Mandatory Conversion Date.
A Mandatory Conversion will not be effective in excess of the Beneficial Ownership Limitation under Section 4(d).

 

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Section
5.Certain Adjustments.

 

(a) Stock
Dividends and Stock Splits. If Borrower, at any time while this Note is outstanding: (i) pays a stock dividend or otherwise
makes a distribution or distributions payable in Ordinary Shares on Ordinary Shares or any Ordinary Shares Equivalents (which,
for avoidance of doubt, shall not include any Ordinary Shares issued by Borrower upon conversion of the Notes), (ii) subdivides
outstanding Ordinary Shares into a larger number of shares, (iii) combines (including by way of a reverse stock split) outstanding
Ordinary Shares into a smaller number of shares or (iv) issues, in the event of a reclassification of shares of the Ordinary Shares,
any shares of capital stock of Borrower, then the Conversion Price shall be multiplied by a fraction of which the numerator shall
be the number of Ordinary Shares (excluding any treasury shares of Borrower) outstanding immediately before such event, and of
which the denominator shall be the number of Ordinary Shares outstanding immediately after such event. Any adjustment made pursuant
to this Section shall become effective immediately after the record date for the determination of stockholders entitled to receive
such dividend or distribution and shall become effective immediately after the effective date in the case of a subdivision, combination
or reclassification.

 

(b) Subsequent
Rights Offerings. In addition to any adjustments pursuant to Section 5(a) above, if at any time Borrower grants, issues or
sells any Ordinary Shares Equivalents or rights to purchase stock, warrants, securities or other property pro rata to the record
holders of any class of Ordinary Shares (the “Purchase Rights”), then the Holder will be entitled to acquire,
upon the terms applicable to such Purchase Rights, the aggregate Purchase Rights which the Holder could have acquired if the Holder
had held the number of Ordinary Shares acquirable upon complete conversion of this Note (without regard to any limitations on
exercise hereof, including without limitation, the Beneficial Ownership Limitation) immediately before the date on which a record
is taken for the grant, issuance or sale of such Purchase Rights, or, if no such record is taken, the date as of which the record
holders of Ordinary Shares are to be determined for the grant, issue or sale of such Purchase Rights (provided, however, to the
extent that the Holder’s right to participate in any such Purchase Right would result in the Holder exceeding the Beneficial
Ownership Limitation, then the Holder shall not be entitled to participate in such Purchase Right to such extent (or beneficial
ownership of such Ordinary Shares as a result of such Purchase Right to such extent) and such Purchase Right to such extent shall
be held in abeyance for the Holder until such time, if ever, as its right thereto would not result in the Holder exceeding the
Beneficial Ownership Limitation).

 

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(c) Pro
Rata Distributions. During such time as this Note is outstanding, if Borrower shall declare or make any dividend whether or
not permitted, or makes any other distribution of its assets (or rights to acquire its assets) to holders of Ordinary Shares,
by way of return of capital or otherwise (including, without limitation, any distribution of cash, stock or other securities,
property or options by way of a dividend, spin off, reclassification, corporate rearrangement, scheme of arrangement or other
similar transaction) (a “Distribution”), at any time after the issuance of this Note, then, in each such case,
the Holder shall be entitled to participate in such Distribution to the same extent that the Holder would have participated therein
if the Holder had held the number of Ordinary Shares acquirable upon complete exercise of this Note (without regard to any limitations
on exercise hereof, including without limitation, the Beneficial Ownership Limitation) immediately before the date of which a
record is taken for such Distribution, or, if no such record is taken, the date as of which the record holders of Ordinary Shares
are to be determined for the participation in such Distribution (provided, however, to the extent that the Holder's right
to participate in any such Distribution would result in the Holder exceeding the Beneficial Ownership Limitation, then the Holder
shall not be entitled to participate in such Distribution to such extent (or in the beneficial ownership of any Ordinary Shares
as a result of such Distribution to such extent) and the portion of such Distribution shall be held in abeyance for the benefit
of the Holder until such time, if ever, as its right thereto would not result in the Holder exceeding the Beneficial Ownership
Limitation.

 

(d) Fundamental
Transaction. If, at any time while this Note is outstanding, (i) Borrower, directly or indirectly, in one or more
related transactions effects any merger or consolidation of Borrower with or into another Person, (ii) Borrower, directly or
indirectly, effects any sale, lease, license, assignment, transfer, conveyance or other disposition of all or substantially
all of its assets in one or a series of related transactions, (iii) any, direct or indirect, purchase offer, tender offer or
exchange offer (whether by Borrower or another Person) is completed pursuant to which holders of Ordinary Shares are
permitted to sell, tender or exchange their shares for other securities, cash or property and has been accepted by the
holders of 50% or more of the outstanding Ordinary Shares, (iv) Borrower, directly or indirectly, in one or more related
transactions effects any reclassification, reorganization or recapitalization of the Ordinary Shares or any compulsory share
exchange pursuant to which the Ordinary Shares are effectively converted into or exchanged for other securities, cash or
property, (v) Borrower, directly or indirectly, in one or more related transactions consummates a stock or share purchase
agreement or other business combination (including, without limitation, a reorganization, recapitalization, spin-off or
scheme of arrangement) with another Person whereby such other Person acquires more than 50% of the outstanding Ordinary
Shares (not including any Ordinary Shares held by the other Person or other Persons making or party to, or associated or
affiliated with the other Persons making or party to, such stock or share purchase agreement or other business
combination) (each a “Fundamental Transaction”), then, upon any subsequent conversion of this Note, the
Holder shall have the right to receive, for each Conversion Share that would have been issuable upon such conversion
immediately prior to the occurrence of such Fundamental Transaction (without regard to any limitation in Section 4(d) on the
conversion of this Note), the number of Ordinary Shares of the successor or acquiring corporation or of Borrower, if it is
the surviving corporation, and any additional consideration (the “Alternate Consideration”) receivable as
a result of such Fundamental Transaction by a holder of the number of Ordinary Shares for which this Note is convertible
immediately prior to such Fundamental Transaction (without regard to any limitation in Section 4(d) on the conversion of this
Note). For purposes of any such conversion, the determination of the Conversion Price shall be appropriately adjusted to
apply to such Alternate Consideration based on the amount of Alternate Consideration issuable in respect of one (1) Ordinary
Share in such Fundamental Transaction, and Borrower shall apportion the Conversion Price among the Alternate Consideration in
a reasonable manner reflecting the relative value of any different components of the Alternate Consideration. If holders of
Ordinary Shares are given any choice as to the securities, cash or property to be received in a Fundamental Transaction, then
the Holder shall be given the same choice as to the Alternate Consideration it receives upon any conversion of this
Note following such Fundamental Transaction. Borrower shall cause any successor entity in a Fundamental Transaction in which
Borrower is not the survivor (the “Successor Entity”) to assume in writing all of the obligations of
Borrower under this Note and the other Transaction Documents (as defined in the Purchase Agreement) in accordance with the
provisions of this Section 5(d) pursuant to written agreements in form and substance reasonably satisfactory to the Holder
and approved by the Holder (without unreasonable delay) prior to such Fundamental Transaction and shall, if the Successor
Entity is a public company or if the shareholders of the Borrower have the option to or will become equity holders of the
Successor Entity, at the option of the holder of this Note, deliver to the Holder in exchange for this Note a security of the
Successor Entity evidenced by a written instrument substantially similar in form and substance to this Note which is
convertible for a corresponding number of shares of capital stock of such Successor Entity (or its parent entity) equivalent
to the Ordinary Shares acquirable and receivable upon conversion of this Note (without regard to any limitations on the
conversion of this Note) prior to such Fundamental Transaction, and with a conversion price which applies the conversion
price hereunder to such shares of capital stock (but taking into account the relative value of the Ordinary Shares pursuant
to such Fundamental Transaction and the value of such shares of capital stock, such number of shares of capital stock and
such conversion price being for the purpose of protecting the economic value of this Note immediately prior to the
consummation of such Fundamental Transaction), and which is reasonably satisfactory in form and substance to the Holder. Upon
the occurrence of any such Fundamental Transaction, the Successor Entity shall succeed to, and be substituted for (so that
from and after the date of such Fundamental Transaction, the provisions of this Note and the other Transaction Documents
referring to the “Company” shall refer instead to the Successor Entity), and may exercise every right and
power of Borrower and shall assume all of the obligations of Borrower under this Note and the other Transaction Documents
with the same effect as if such Successor Entity had been named as Borrower herein. The proposed transaction with Digiflex as
described in the SEC Reports as updated by the Disclosure Schedules to the Agreement is not a Fundamental Transaction.

 

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(e) Adjustment
Upon Issuance of Ordinary Shares. If and whenever on or after the date hereof, the Company (whether or not it is
permitted to do so) issues or sells, or in accordance with this Section 5 is deemed to have issued or sold, any Ordinary
Shares (including the issuance or sale of Ordinary Shares owned or held by or for the account of the Company, but excluding
any Exempt Issuance issued or sold or deemed to have been issued or sold) for a consideration per share (the “New
Issuance Price”) less than a price equal to the Conversion Price in effect immediately prior to such issue or sale
or deemed issuance or sale (such Conversion Price then in effect is referred to as the “Applicable Price”)
(the foregoing a “Dilutive Issuance”), then immediately after such Dilutive Issuance, the Conversion Price
then in effect shall be reduced to the New Issuance Price. For all purposes of the foregoing (including, without limitation,
determining the adjusted Conversion Price and consideration per share under this Section 5(e)), the following shall be
applicable:

 

(i) Issuance
of Options. If the Company in any manner grants or sells any options (other than options that qualify as Exempt
Issuances) and the lowest price per share for which one Ordinary Share is issuable upon the exercise of any such option or
upon conversion, exercise or exchange of any Ordinary Shares Equivalents issuable upon exercise of any such option is less
than the Applicable Price, then such Ordinary Shares shall be deemed to be outstanding and to have been issued and sold by
the Company at the time of the granting or sale of such option for such price per share. For purposes of this Section
5(e)(i), the “lowest price per share for which one Ordinary Share is issuable upon the exercise of any such options or
upon conversion, exercise or exchange of any Ordinary Shares Equivalents issuable upon exercise of any such option”
shall be equal to (1) the lower of (x) the sum of the lowest amounts of consideration (if any) received or receivable by the
Company with respect to any one Ordinary Share upon the granting or sale of such option, upon exercise of such option and
upon conversion, exercise or exchange of any Ordinary Shares Equivalent issuable upon exercise of such option and (y) the
lowest exercise price set forth in such option for which one Ordinary Share is issuable upon the exercise of any such options
or upon conversion, exercise or exchange of any Ordinary Shares Equivalents issuable upon exercise of any such option minus
(2) the sum of all amounts paid or payable to the holder of such option (or any other Person) upon the granting or sale of
such option, upon exercise of such option and upon conversion, exercise or exchange of any Ordinary Shares Equivalent
issuable upon exercise of such option plus the value of any other consideration received or receivable by, or benefit
conferred on, the holder of such option (or any other Person). Except as contemplated below, no further adjustment of the
Conversion Price shall be made upon the actual issuance of such Ordinary Shares or of such Ordinary Shares Equivalents upon
the exercise of such options or upon the actual issuance of such Ordinary Shares upon conversion, exercise or exchange
of such Ordinary Shares Equivalents.

 

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(ii) Issuance
of Ordinary Shares Equivalents. If the Company in any manner issues or sells any Ordinary Shares Equivalents (other than Ordinary
Shares Equivalents that qualify as Exempt Issuances) and the lowest price per share for which one Ordinary Share is issuable upon
the conversion, exercise or exchange thereof is less than the Applicable Price, then such Ordinary Shares shall be deemed to be
outstanding and to have been issued and sold by the Company at the time of the issuance or sale of such Ordinary Shares Equivalents
for such price per share. For the purposes of this Section 5(e)(ii), the “lowest price per share for which one Ordinary
Share is issuable upon the conversion, exercise or exchange thereof” shall be equal to (1) the lower of (x) the sum of the
lowest amounts of consideration (if any) received or receivable by the Company with respect to one Ordinary Share upon the issuance
or sale of the Ordinary Shares Equivalent and upon conversion, exercise or exchange of such Ordinary Shares Equivalent and (y)
the lowest conversion price set forth in such Ordinary Shares Equivalent for which one Ordinary Share is issuable upon conversion,
exercise or exchange thereof minus (2) the sum of all amounts paid or payable to the holder of such Ordinary Shares Equivalent
(or any other Person) upon the issuance or sale of such Ordinary Shares Equivalent plus the value of any other consideration received
or receivable by, or benefit conferred on, the holder of such Ordinary Shares Equivalent (or any other Person). Except as contemplated
below, no further adjustment of the Conversion Price shall be made upon the actual issuance of such Ordinary Shares upon conversion,
exercise or exchange of such Ordinary Shares Equivalents, and if any such issue or sale of such Ordinary Shares Equivalents is
made upon exercise of any Options for which adjustment of this Note has been or is to be made pursuant to other provisions of
this Section 5(e), except as contemplated below, no further adjustment of the Conversion Price shall be made by reason of such
issue or sale.

 

(iii) Change
in Option Price or Rate of Conversion. If the purchase or exercise price provided for in any options, the additional
consideration, if any, payable upon the issue, conversion, exercise or exchange of any Ordinary Shares Equivalents, or the
rate at which any Ordinary Shares Equivalents are convertible into or exercisable or exchangeable for Ordinary Shares
increases or decreases at any time, the Conversion Price in effect at the time of such increase or decrease shall be adjusted
to the Conversion Price which would have been in effect at such time had such options or Ordinary Shares Equivalents provided
for such increased or decreased purchase price, additional consideration or increased or decreased conversion rate, as the
case may be, at the time initially granted, issued or sold. For purposes of this Section 5(e)(iii), if the terms of any
option or Ordinary Shares Equivalent that was outstanding as of the date of issuance of this Note are increased or decreased
in the manner described in the immediately preceding sentence, then such option or Ordinary Shares Equivalent and the
Ordinary Shares deemed issuable upon exercise, conversion or exchange thereof shall be deemed to have been issued as of the
date of such increase or decrease. No adjustment pursuant to this Section 5(e) shall be made if such adjustment would result
in an increase of the Conversion Price then in effect.

 

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(iv) Calculation
of Consideration Received. If any option and/or Ordinary Shares Equivalent and/or Adjustment Right is issued in
connection with the issuance or sale or deemed issuance or sale of any other securities of the Company (as determined by the
Holder, the “Primary Security”, and such option and/or Ordinary Shares Equivalent and/or Adjustment Right,
the “Secondary Securities”), together comprising one integrated transaction, the consideration per
Ordinary Shares with respect to such Primary Security shall be deemed to be equal to the difference of (x) the lowest price
per share for which one Ordinary Share was issued in such integrated transaction (or was deemed to be issued pursuant to
Section 5(e)(i) or Section 5(e)(ii) above, as applicable) solely with respect to such Primary Security, minus (y) with
respect to such Secondary Securities, the sum of (I) the Black Scholes Consideration Value of each such option, if any, (II)
the fair market value (as determined by the Holder) or the Black Scholes Consideration Value, as applicable, of such
Adjustment Right, if any, and (III) the fair market value (as determined by the Holder) of such Ordinary Shares Equivalent,
if any, in each case, as determined on a per share basis in accordance with this Section 5(e)(iv). If any Ordinary Shares,
options or Ordinary Shares Equivalents are issued or sold or deemed to have been issued or sold for cash, the consideration
received therefor (for the purpose of determining the consideration paid for such Ordinary Shares, option or Ordinary Shares
Equivalent, but not for the purpose of the calculation of the Black Scholes Consideration Value) will be deemed to be the net
amount of consideration received by the Company therefor. If any Ordinary Shares, options or Ordinary Shares Equivalents are
issued or sold for a consideration other than cash (for the purpose of determining the consideration paid for such Ordinary
Shares, option or Ordinary Shares Equivalent, but not for the purpose of the calculation of the Black Scholes Consideration
Value), the amount of such consideration received by the Company will be the fair value of such consideration, except where
such consideration consists of publicly traded securities, in which case the amount of consideration received by the
Company for such securities will be the arithmetic average of the VWAPs of such security for each of the five (5) Trading
Days immediately preceding the date of receipt. If any Ordinary Shares, Options or Ordinary Shares Equivalents are issued to
the owners of the non-surviving entity in connection with any merger in which the Company is the surviving entity (for the
purpose of determining the consideration paid for such Ordinary Shares, option or Ordinary Shares Equivalent, but not for the
purpose of the calculation of the Black Scholes Consideration Value), the amount of consideration therefor will be deemed to
be the fair value of such portion of the net assets and business of the non-surviving entity as is attributable to such
Ordinary Shares, options or Ordinary Shares Equivalents, as the case may be. The fair value of any consideration other than
cash or publicly traded securities (for the purpose of determining the consideration paid for such Ordinary Shares, option or
Ordinary Shares Equivalent, but not for the purpose of the calculation of the Black Scholes Consideration Value) will be
determined jointly by the Company and the Holder. If such parties are unable to reach agreement within ten (10) days after
the occurrence of an event requiring valuation (the “Valuation Event”), the fair value of such
consideration will be determined within five (5) Trading Days after the tenth (10th) day following such Valuation Event by an
independent, reputable appraiser jointly selected by the Company and the Holder. The determination of such appraiser shall be
final and binding upon all parties absent manifest error and the fees and expenses of such appraiser shall be borne by the
Company.

 

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(f) Calculations.
All calculations under this Section 5 shall be made to the nearest cent or the nearest 1/100th of a share, as the case may
be. For purposes of this Section 5, the number of Ordinary Shares deemed to be issued and outstanding as of a given date shall
be the sum of the number of Ordinary Shares (excluding any treasury shares of Borrower) issued and outstanding.

 

(g) Notice
to the Holder.

 

(i) Adjustment
to Conversion Price. Whenever the Conversion Price is adjusted pursuant to any provision of this Section 5, Borrower shall
promptly deliver to each Holder a notice setting forth the Conversion Price after such adjustment and setting forth a brief statement
of the facts requiring such adjustment.

 

(ii) Notice
to Allow Conversion by Holder. If (A) Borrower shall declare a dividend (or any other distribution in whatever form) on
the Ordinary Shares, (B) Borrower shall declare a special nonrecurring cash dividend on or a redemption of the Ordinary
Shares, (C) Borrower shall authorize the granting to all holders of the Ordinary Shares of rights or warrants to subscribe
for or purchase any shares of capital stock of any class or of any rights, (D) the approval of any stockholders of Borrower
shall be required in connection with any reclassification of the Ordinary Shares, any consolidation or merger to which
Borrower is a party, any sale or transfer of all or substantially all of the assets of Borrower, or any compulsory share
exchange whereby the Ordinary Shares are converted into other securities, cash or property or (E) Borrower shall authorize
the voluntary or involuntary dissolution, liquidation or winding up of the affairs of Borrower, then, in each case, Borrower
shall cause to be filed at each office or agency maintained for the purpose of conversion of this Note, and shall cause to be
delivered to the Holder at its last address as it shall appear upon the Note Register, at least twenty (20) calendar days
prior to the applicable record or effective date hereinafter specified, a notice stating (x) the date on which a record is to
be taken for the purpose of such dividend, distribution, redemption, rights or warrants, or if a record is not to be taken,
the date as of which the holders of the Ordinary Shares of record to be entitled to such dividend, distributions, redemption,
rights or warrants are to be determined or (y) the date on which such reclassification, consolidation, merger, sale, transfer
or share exchange is expected to become effective or close, and the date as of which it is expected that holders of the
Ordinary Shares of record shall be entitled to exchange their shares of the Ordinary Shares for securities, cash or other
property deliverable upon such reclassification, consolidation, merger, sale, transfer or share exchange, provided that the
failure to deliver such notice or any defect therein or in the delivery thereof shall not affect the validity of the
corporate action required to be specified in such notice. To the extent that any notice provided hereunder constitutes, or
contains, material, non-public information regarding Borrower or any of the Subsidiaries, Borrower shall simultaneously
file such notice with the Commission pursuant to a Current Report on Form 6-K. The Holder shall remain entitled to convert
this Note during the 20-day period commencing on the date of such notice through the effective date of the event
triggering such notice except as may otherwise be expressly set forth herein.

 

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Section
6.Negative Covenants. As long as at least twenty percent (20%) of the principal amount of this Note remains
outstanding, unless the holders of a Majority in Interest shall have otherwise given prior written consent, Borrower shall
not, and shall not permit any of the Subsidiaries to, directly or indirectly:

 

(a) other
than Permitted Indebtedness, enter into, create, incur, assume, guarantee or suffer to exist any indebtedness for borrowed money
of any kind, including, but not limited to, a guarantee, on or with respect to any of its property or assets now owned or hereafter
acquired or any interest therein or any income or profits therefrom;

 

(b) other
than Permitted Liens, enter into, create, incur, assume or suffer to exist any Liens of any kind, on or with respect to any of
its property or assets now owned or hereafter acquired or any interest therein or any income or profits therefrom;

 

(c) amend
its charter documents, including, without limitation, its certificate of incorporation and bylaws, in any manner that materially
and adversely affects any rights of the Holder;

 

(d) repay,
repurchase or offer to repay, repurchase or otherwise acquire more than a de minimis number of shares of its Ordinary Shares or
Ordinary Shares Equivalents other than as to the Conversion Shares or Warrant Shares as permitted or required under the Transaction
Documents;

 

(e) redeem,
defease, repurchase, repay or make any payments in respect of, by the payment of cash or cash equivalents (in whole or in part,
whether by way of open market purchases, tender offers, private transactions or otherwise), all or any portion of any Indebtedness
(other than the Notes if on a pro-rata basis), except for Indebtedness identified on Schedule 3.1(z) to the Purchase Agreement
as permitted to be paid but not before the maturity date (without acceleration thereof) nor latest permissible payment date thereof,
whether by way of payment in respect of principal of (or premium, if any) or interest on, such Indebtedness, the foregoing restriction
shall also apply to Permitted Indebtedness from and after the occurrence of an Event of Default;

 

(f) declare
or make any dividend or other distribution of its assets or rights to acquire its assets to holders of Ordinary Shares, preferred
stock, or any other equity security by way of return of capital or otherwise including, without limitation, any distribution of
cash, stock or other securities, property or options by way of a dividend, spin off, reclassification, corporate rearrangement,
scheme of arrangement or other similar transaction;

 

(g) enter
into any transaction with any Affiliate of Borrower which would be required to be disclosed in any public filing with the Commission,
buy a company subject to the reporting obligations of Section 13 or 15(d) of the Exchange Act, unless such transaction is made
on an arm’s-length basis and expressly approved by a majority of the disinterested directors of Borrower (even if less than
a quorum otherwise required for board approval); or

 

(h) enter
into any agreement with respect to any of the foregoing.

 

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Section
7.Events of Default.

 

(a)“Event
of Default” means, wherever used herein, any of the following events (whatever the reason for such event and
whether such event shall be voluntary or involuntary or effected by operation of law or pursuant to any judgment, decree or
order of any court, or any order, rule or regulation of any administrative or governmental body):

 

(i) any
default in the payment of (A) the principal or interest amount of this Note or (B) liquidated damages and other amounts owing
to a Holder on any Note, as and when the same shall become due and payable (whether on a Conversion Date or the Maturity Date
or by acceleration or otherwise) which default, solely in the case of a default under clause (B) above, is not cured within 10
Trading Days after Borrower has become or should have become aware of such default;

 

(ii) Borrower
shall fail to observe or perform any other covenant or agreement contained in the Notes (other than a breach by Borrower of its
obligations to deliver Ordinary Shares to the Holder upon conversion, which breach is addressed in clause (ix) below) which failure
is not cured, if possible to cure, within the earlier to occur of (A) 10 Trading Days after written notice of such failure sent
by the Holder or by any Other Holder to Borrower and (B) twenty (20) Trading Days after Borrower has become or should have become
aware of such failure;

 

(iii) a
default or event of default (subject to any grace or cure period provided in the applicable agreement, document or instrument)
shall occur under (A) any of the Transaction Documents, including but not limited to failure to strictly comply with the provisions
of the Transaction Documents, or (B) any other material agreement, lease, document or instrument to which Borrower or any Subsidiary
is obligated (and not covered by clause (vi) below), which, in the case of subsection (B), would reasonably be expected to have
a Material Adverse Effect;

 

(iv) any
representation or warranty made in this Note, any other Transaction Documents, any written statement pursuant hereto or thereto
or any other report, financial statement or certificate made or delivered to the Holder or any Other Holder shall be untrue or
incorrect in any material respect as of the date when made or deemed made;

 

(v) Borrower
or any Subsidiary shall be subject to a Bankruptcy Event;

 

(vi) Borrower
or any Subsidiary shall materially default on any of its obligations under any mortgage, credit agreement or other facility, indenture
agreement, factoring agreement or other instrument under which there may be issued, or by which there may be secured or evidenced,
any indebtedness for borrowed money or money due under any long term leasing or factoring arrangement that (a) involves an obligation
greater than $100,000, whether such indebtedness now exists or shall hereafter be created, and (b) results in such indebtedness
becoming or being declared due and payable prior to the date on which it would otherwise become due and payable;

 

(vii) Borrower
shall be a party to any Change of Control Transaction or Fundamental Transaction;

 

(viii) Borrower
does not meet the current public information requirements under Rule 144 for ten (10) or more consecutive Trading Days or twenty
(20) Trading days in the aggregate;

 

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(ix) Borrower
shall fail for any reason to deliver certificates to a Holder prior to the fifth (5th) Trading Day after a Share Delivery Date
pursuant to Section 4(c) or Borrower shall provide at any time notice to the Holder, including by way of public announcement,
of Borrower’s intention to not honor requests for conversions of any Notes in accordance with the terms hereof;

 

(x) any
monetary judgment, writ or similar final process shall be entered or filed against Borrower, any subsidiary or any of their respective
property or other assets for more than $100,000, and such judgment, writ or similar final process shall remain unvacated, unbonded
or unstayed for a period of 90 calendar days;

 

(xi) any
dissolution, liquidation or winding up by Borrower or a material Subsidiary of a substantial portion of their business;

 

(xii) cessation
of operations by Borrower or a material Subsidiary;

 

(xiii) an
event resulting in the Ordinary Shares no longer being listed or quoted on a Trading Market, or notification from a Trading Market
that the Borrower is not in compliance with the conditions for such continued quotation and such non-compliance continues for
twenty (20) days following such notification;

 

(xiv) a
Commission or judicial stop trade order or suspension from the Borrower’s Principal Trading Market;

 

(xv) the
Borrower effectuates a reverse split of its Ordinary Shares without ten (10) days prior written notice to the Holder;

 

(xvi) a
failure by Borrower to notify Holder of any material event of which Borrower is obligated to notify Holder pursuant to the terms
of this Note or any other Transaction Document;

 

(xvii) a
default by the Borrower of a material term, covenant, warranty or undertaking of any other agreement to which the Borrower and
Holder are parties, or the occurrence of an event of default under any such other agreement to which Borrower and Holder are parties
which is not cured after any required notice and/or cure period or waived;

 

(xviii) the
occurrence of an Event of Default under any Other Note or under debt instruments issued to Subsequent Purchasers;

 

(xix) any
material provision of any Transaction Document shall at any time for any reason (other than pursuant to the express terms thereof)
cease to be valid and binding on or enforceable against the Borrower, or the validity or enforceability thereof shall be contested
by Borrower, or a proceeding shall be commenced by Borrower or any governmental authority having jurisdiction over Borrower or
Holder, seeking to establish the invalidity or unenforceability thereof, or Borrower shall deny in writing that it has any liability
or obligation purported to be created under any Transaction Document;

 

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(xx) the
failure by Borrower or any material Subsidiary to maintain any material intellectual property rights, personal, real
property, equipment, leases or other assets which are necessary to conduct its business (whether now or in the future) and
such breach is not cured with twenty (20) days after the first day of such occurrence; or

 

(xxi)
the restatement after the date hereof of any financial statements filed by the Borrower with the Commission for any date or period
from and after the Original Issue Date and until this Note is no longer outstanding, if the result of such restatement would,
by comparison to the unrestated financial statements, have constituted a Material Adverse Effect. For the avoidance of doubt,
any restatement related to new accounting pronouncements shall not constitute a default under this Section.

 

In
the event more than one grace, cure or notice period is applicable to an Event of Default, then the shortest grace, cure or notice
period shall be applicable thereto.

 

(b) Remedies
Upon Event of Default, Fundamental Transaction and Change of Control Transaction. If any Event of Default
or a Fundamental Transaction or a Change of Control Transaction occurs, the outstanding principal amount of this Note,
liquidated damages and other amounts owing in respect thereof through the date of acceleration, shall become, at the
Holder’s election, immediately due and payable in cash at the Mandatory Default Amount. Commencing on the Maturity Date
and also five (5) days after the occurrence of any Event of Default interest on this Note shall accrue at an interest rate
equal to the lesser of 15% per annum or the maximum rate permitted under applicable law. Upon the payment in full of the
Mandatory Default Amount, the Holder shall promptly surrender this Note to or as directed by Borrower. In connection with
such acceleration described herein, the Holder need not provide, and Borrower hereby waives, any presentment, demand, protest
or other notice of any kind, and the Holder may immediately and without expiration of any grace period enforce any and all of
its rights and remedies hereunder and all other remedies available to it under applicable law. Such acceleration may be
rescinded and annulled by Holder at any time prior to payment hereunder and the Holder shall have all rights as a holder of
the Note until such time, if any, as the Holder receives full payment pursuant to this Section 8(b). No such rescission or
annulment shall affect any subsequent Event of Default or impair any right consequent thereon.

 

Section
8.Miscellaneous.

 

(a) Notices. All
notices, demands, requests, consents, approvals, and other communications required or permitted hereunder shall be in
writing and, unless otherwise specified herein, shall be (i) personally served, (ii) deposited in the mail, registered
or certified, return receipt requested, postage prepaid, (iii) delivered by reputable air courier service with charges
prepaid, or (iv) transmitted by hand delivery, telegram, or facsimile, addressed as set forth below or to such other address
as such party shall have specified most recently by written notice. Any notice or other communication required or permitted
to be given hereunder shall be deemed effective (a) upon hand delivery or delivery by facsimile, with accurate confirmation
generated by the transmitting facsimile machine, at the address or number designated below (if delivered on a business day
during normal business hours where such notice is to be received), or the first business day following such delivery (if
delivered other than on a business day during normal business hours where such notice is to be received) or (b) on the second
business day following the date of mailing by express courier service, fully prepaid, addressed to such address, or upon
actual receipt of such mailing, whichever shall first occur. The addresses for such communications shall be: (i) if to
Borrower, to: P.V. Nano Cell Ltd., Inc., c/o Corporation Service Company 1180 Avenue of the Americas, Suite 210, New York,
NY 10036, with an additional copy by fax only to (which shall not constitute notice): Greenberg Traurig, P.A., 333 S.E.
2nd Avenue, Miami, FL 33131, Attn: Robert L. Grossman, Esq., facsimile: 305-961-5756, and (ii) if to the Holder,
to: the address and fax number indicated on the front page of this Note, with an additional copy by fax only to (which shall
not constitute notice): Grushko & Mittman, P.C., 515 Rockaway Avenue, Valley Stream, New York 11581, facsimile: (212)
697-3575. For so long as any notice may or be required to be given to the Company pursuant to this Note, Borrower will
maintain an address for notice purposes in New York, New York or Miami, Florida.

 

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(b) Absolute
Obligation. Except as expressly provided herein, no provision of this Note shall alter or impair the obligation of Borrower,
which is absolute and unconditional, to pay the principal of, liquidated damages and accrued interest, as applicable, on this
Note at the time, place, and rate, and in the coin or currency, herein prescribed. This Note is a direct debt obligation of Borrower.
This Note ranks pari passu with all Other Notes now or hereafter issued under the terms set forth herein.

 

(c) Lost
or Mutilated Note. If this Note shall be mutilated, lost, stolen or destroyed, Borrower shall execute and deliver, in exchange
and substitution for and upon cancellation of a mutilated Note, or in lieu of or in substitution for a lost, stolen or destroyed
Note, a new Note for the principal amount of this Note so mutilated, lost, stolen or destroyed, but only upon receipt of evidence
of such loss, theft or destruction of such Note, and of the ownership hereof, reasonably satisfactory to Borrower.

 

(d) Governing
Law. All questions concerning the construction, validity, enforcement and interpretation of this Note shall be governed by
and construed and enforced in accordance with the internal laws of the State of New York, without regard to the principles of
conflict of laws thereof. Each party agrees that all legal proceedings concerning the interpretation, enforcement and defense
of the transactions contemplated by any of the Transaction Documents (whether brought against a party hereto or its respective
Affiliates, directors, officers, shareholders, employees or agents) shall be commenced in the state and federal courts sitting
in the City of New York, Borough of Manhattan (the “New York Courts”). Each party hereto hereby irrevocably
submits to the exclusive jurisdiction of the New York Courts for the adjudication of any dispute hereunder or in connection herewith
or with any transaction contemplated hereby or discussed herein (including with respect to the enforcement of any of the Transaction
Documents), and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not
personally subject to the jurisdiction of such New York Courts, or such New York Courts are improper or inconvenient venue for
such proceeding. Each party hereby irrevocably waives personal service of process and consents to process being served in any
such suit, action or proceeding by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence
of delivery) to such party at the address in effect for notices to it under this Note and agrees that such service shall constitute
good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right
to serve process in any other manner permitted by applicable law. Each party hereto hereby irrevocably waives, to the fullest
extent permitted by applicable law, any and all right to trial by jury in any legal proceeding arising out of or relating to this
Note or the transactions contemplated hereby. If any party shall commence an action or proceeding to enforce any provisions of
this Note, then the prevailing party in such action or proceeding shall be reimbursed by the other party for its attorneys fees
and other costs and expenses incurred in the investigation, preparation and prosecution of such action or proceeding. This
Note shall be deemed an unconditional obligation of Borrower for the payment of money and, without limitation to any other remedies
of Holder, may be enforced against Borrower by summary proceeding pursuant to New York Civil Procedure Law and Rules Section 3213
or any similar rule or statute in the jurisdiction where enforcement is sought. For purposes of such rule or statute, any other
document or agreement to which Holder and Borrower are parties or which Borrower delivered to Holder, which may be convenient
or necessary to determine Holder’s rights hereunder or Borrower’s obligations to Holder are deemed a part of this
Note, whether or not such other document or agreement was delivered together herewith or was executed apart from this Note.

 

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(e) Waiver.
Any waiver by Borrower or the Holder of a breach of any provision of this Note shall not operate as or be construed to be
a waiver of any other breach of such provision or of any breach of any other provision of this Note. The failure of Borrower or
the Holder to insist upon strict adherence to any term of this Note on one or more occasions shall not be considered a waiver
or deprive that party of the right thereafter to insist upon strict adherence to that term or any other term of this Note on any
other occasion. Any waiver by Borrower or the Holder must be in writing.

 

(f) Severability.
If any provision of this Note is invalid, illegal or unenforceable, the balance of this Note shall remain in effect, and if
any provision is inapplicable to any Person or circumstance, it shall nevertheless remain applicable to all other Persons and
circumstances.

 

(g) Usury.
If it shall be found that any interest or other amount deemed interest due hereunder violates the applicable law governing
usury, the applicable rate of interest due hereunder shall automatically be lowered to equal the maximum rate of interest permitted
under applicable law. Borrower covenants (to the extent that it may lawfully do so) that it shall not at any time insist upon,
plead, or in any manner whatsoever claim or take the benefit or advantage of, any stay, extension or usury law or other law which
would prohibit or forgive Borrower from paying all or any portion of the principal of or interest on this Note as contemplated
herein, wherever enacted, now or at any time hereafter in force, or which may affect the covenants or the performance of this
Note, and Borrower (to the extent it may lawfully do so) hereby expressly waives all benefits or advantage of any such law, and
covenants that it will not, by resort to any such law, hinder, delay or impede the execution of any power herein granted to the
Holder, but will suffer and permit the execution of every such as though no such law has been enacted.

 

(h) Next
Business Day. Whenever any payment or other obligation hereunder shall be due on a day other than a Business Day, such payment
shall be made on the next succeeding Business Day.

 

(i) Headings.
The headings contained herein are for convenience only, do not constitute a part of this Note and shall not be deemed to limit
or affect any of the provisions hereof.

 

(j) Amendment.
Unless otherwise provided for in the Purchase Agreement or hereunder, this Note may not be modified or amended or the provisions
hereof waived without the written consent of Borrower and the Holder.

 

(k) Facsimile
Signature. In the event that the Borrower’s signature is delivered by facsimile transmission, PDF, electronic signature
or other similar electronic means, such signature shall create a valid and binding obligation of the Borrower with the same force
and effect as if such signature page were an original thereof.

 

(l) Currency.
All monetary amounts referred to in this Note are in United States currency.

 

*********************

 

(Signature
Pages Follow)

 

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IN
WITNESS WHEREOF, Borrower has caused this Note to be signed in its name by an authorized officer as of the ____ day of August,
2017.

 

	 	P.V. NANO CELL LTD.
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

	WITNESS:	 
	 	 
	 	 

 

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ANNEX
A

 

NOTICE
OF CONVERSION

 

The
undersigned hereby elects to convert principal under the Convertible Note due October __, 2018 of P.V. Nano Cell Ltd., a company
formed under the laws of the State of Israel (the “Company”), into Ordinary Shares (the “Ordinary
Shares”), of Borrower according to the conditions hereof, as of the date written below. If Ordinary Shares are to be
issued in the name of a person other than the undersigned, the undersigned will pay all transfer taxes payable with respect thereto
and is delivering herewith such certificates and opinions as reasonably requested by Borrower in accordance therewith. No fee
will be charged to the holder for any conversion, except for such transfer taxes, if any.

 

By
the delivery of this Notice of Conversion the undersigned represents and warrants to Borrower that its ownership of the Ordinary
Shares does not exceed the amounts specified under Section 4 of this Note, as determined in accordance with Section 13(d) of the
Exchange Act.

 

The
undersigned agrees to comply with the prospectus delivery requirements under the applicable securities laws in connection with
any transfer of the aforesaid Ordinary Shares.

 

Conversion
calculations:

 

Date
to Effect Conversion:_____________________________

 

Principal
Amount of Note to be Converted:_________________

 

Interest
to be Converted:_______________________________

 

Number
of Ordinary Shares to be issued:___________________

 

Signature:__________________________________________

 

Name:_____________________________________________

 

Address
for Delivery of Ordinary Shares Certificates:__________

 __________________________________________________

__________________________________________________

 

Or

 

DWAC
Instructions:__________________________________

 

Broker
No:_____________

 

Account
No:___________

 

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EXHIBIT

 

NEITHER
THIS SECURITY NOR THE SECURITIES FOR WHICH THIS SECURITY IS EXERCISABLE HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE
COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT
OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO,
THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A
LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY.
THIS SECURITY AND THE SECURITIES ISSUABLE UPON EXERCISE OF THIS SECURITY MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN
ACCOUNT OR OTHER LOAN SECURED BY SUCH SECURITIES.

 

ORDINARY
SHARE PURCHASE WARRANT

 

P.V. NANO CELL LTD.

 

	Warrant Shares: 333,333	Issuance Date: August_,
2017

	 	 
	Warrant No: 001	 

 

THIS
COMMON STOCK PURCHASE WARRANT (the “Warrant”) certifies that, for value received, Alpha Capital Anstalt, with
an address at: Lettstrasse 32, 9490 Vaduz, Liechtenstein, Fax: [RC], or its assigns (the “Holder”) is
entitled, upon the terms and subject to the limitations on exercise and the conditions hereinafter set forth, at any time on or
after the date hereof (the “Initial Exercise Date”) and on or prior to the close of business on the five (5)
year anniversary of the Initial Exercise Date (the “Termination Date”) but not thereafter, to subscribe for
and purchase from P.V. NANO CELL LTD., a company formed under the laws of the State of Israel (the “Company”),
up to 333,333 shares (as subject to adjustment hereunder, the “Warrant Shares”) of Ordinary Shares. The purchase
price of one Ordinary Share under this Warrant shall be equal to the Exercise Price, as defined in Section 2(b).

 

Section
1.Definitions. Capitalized terms used and not otherwise defined herein shall have the meanings set forth
in that certain Securities Purchase Agreement (the “Purchase Agreement”), dated August __, 2017, among the
Company and the purchasers signatory thereto and the Note issued to the Holder contemporaneously with this Warrant.

 

Section
2.Exercise.

 

(a) Exercise
of the purchase rights represented by this Warrant may be made, in whole or in part, at any time or times on or after
the Initial Exercise Date and on or before the Termination Date by delivery to the Company (or such other office or agency of
the Company as it may designate by notice in writing to the registered Holder at the address of the Holder appearing on the
books of the Company) of a duly executed facsimile copy of the Notice of Exercise Form annexed hereto. Within two (2) Trading
Days following the date of exercise as aforesaid, the Holder shall deliver the aggregate Exercise Price for the shares
specified in the applicable Notice of Exercise by wire transfer or cashier’s check drawn on a United States bank unless
the cashless exercise procedure specified in Section 2(c) below is specified in the applicable Notice of Exercise.
Notwithstanding anything herein to the contrary (although the Holder may surrender the Warrant to, and receive a replacement
Warrant from, the Company), the Holder shall not be required to physically surrender this Warrant to the Company until the
Holder has purchased all of the Warrant Shares available hereunder and the Warrant has been exercised in full, in which case,
the Holder shall surrender this Warrant to the Company for cancellation within three (3) Trading Days of the date the final
Notice of Exercise is delivered to the Company. Partial exercises of this Warrant resulting in purchases of a portion of the
total number of Warrant Shares available hereunder shall have the effect of lowering the outstanding number of Warrant Shares
purchasable hereunder in an amount equal to the applicable number of Warrant Shares purchased. The Holder and the Company
shall maintain records showing the number of Warrant Shares purchased and the date of such purchases. The Company shall
deliver any objection to any Notice of Exercise Form within one (1) Trading Day of delivery of such notice. The Holder and
any assignee, by acceptance of this Warrant, acknowledge and agree that, by reason of the provisions of this paragraph,
following the purchase of a portion of the Warrant Shares hereunder, the number of Warrant Shares available for purchase
hereunder at any given time may be less than the amount stated on the face hereof.

 

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(b) Exercise
Price. The exercise price per share of the Ordinary Shares under this Warrant shall be US$1.20, subject to
adjustment as described herein (“Exercise Price”).

 

(c) Cashless
Exercise. If at any time after the Initial Exercise Date, there is no effective registration statement registering
the Warrant Shares, or no current prospectus available for the resale of the Warrant Shares by the Holder, then this Warrant
may also be exercised at the Holder’s election, in whole or in part, at such time by means of a “cashless
exercise” in which the Holder shall be entitled to receive a number of Warrant Shares equal to the quotient obtained by
dividing [(A-B) (X)] by (A), where:

 

	 	(A) =	the VWAP (as defined in the Note) on the Trading Day immediately
    preceding the date on which Holder elects to exercise this Warrant by means of a “cashless exercise,” as set forth
    in the applicable Notice of Exercise;
	 	 	 
	 	(B) =	the Exercise Price of this Warrant, as adjusted hereunder; and
	 	 	 
	 	(X) =	the number of Warrant Shares that would be issuable upon exercise
    of this Warrant in accordance with the terms of this Warrant if such exercise were by means of a cash exercise rather than
    a cashless exercise.

  

Notwithstanding
anything herein to the contrary, on the Termination Date, unless the Holder notifies the Company otherwise, if there is no effective
Registration Statement registering the Warrant Shares, or no current prospectus available for the resale of the Warrant Shares
by the Holder, then this Warrant shall be automatically exercised via cashless exercise pursuant to this Section 2(c).

 

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(d) Mechanics
of Exercise.

 

(i) Delivery
of Certificates Upon Exercise. Certificates for shares purchased hereunder shall be transmitted by the Transfer
Agent to the Holder by crediting the account of the Holder’s prime broker with The Depository Trust Company through its
Deposit or Withdrawal at Custodian system (“DWAC”) if the Company is then a participant in such system and either
(A) there is an effective registration statement permitting the issuance of the Warrant Shares to or resale of the Warrant
Shares by the Holder or (B) this Warrant is being exercised via cashless exercise and Rule 144 is available, and otherwise by
physical delivery to the address specified by the Holder in the Notice of Exercise by the date that is three (3) Trading Days
after the latest of (A) the delivery to the Company of the Notice of Exercise, (B) surrender of this Warrant (if required)
and (C) payment of the aggregate Exercise Price as set forth above (including by cashless exercise, if permitted) (such date,
the “Warrant Share Delivery Date”). The Warrant Shares shall be deemed to have been issued, and Holder or
any other person so designated to be named therein shall be deemed to have become a holder of record of such shares for all
purposes, as of the date the Warrant has been exercised, with payment to the Company of the Exercise Price (or by cashless
exercise, if permitted) and all taxes required to be paid by the Holder, if any, pursuant to Section 2(d)(vi) prior to
the issuance of such shares, having been paid. The Company understands that a delay in the delivery of the Warrant Shares
after the Warrant Share Delivery Date could result in economic loss to the Holder. As compensation to the Holder for such
loss, the Company agrees to pay (as liquidated damages and not as a penalty) to the Holder for late issuance of Warrant
Shares upon exercise of this Warrant the proportionate amount of $10 per Trading Day (increasing to $20 per Trading Day after
the fifth (5th) Trading Day) after the Warrant Share Delivery Date for each $1,000 of Exercise Price of Warrant
Shares for which this Warrant is exercised which are not timely delivered. The Company shall pay any payments incurred under
this Section in immediately available funds upon demand.

 

(ii) Delivery
of New Warrants Upon Exercise. If this Warrant shall have been exercised in part, the Company shall, at the request of a Holder
and upon surrender of this Warrant certificate, at the time of delivery of the certificate or certificates representing Warrant
Shares, deliver to the Holder a new Warrant evidencing the rights of the Holder to purchase the unpurchased Warrant Shares called
for by this Warrant, which new Warrant shall in all other respects be identical with this Warrant.

 

(iii) In
addition to any other remedies which may be available to the Holder, in the event that the Company fails for any reason to effect
delivery of the Warrant Shares by the Warrant Share Delivery Date, the Holder may revoke all or part of the relevant Warrant exercise
by delivery of a notice to such effect to the Company, whereupon the Company and the Holder shall each be restored to their respective
positions immediately prior to the exercise of the relevant portion of this Warrant, except that the liquidated damages described
above shall be payable through the date notice of revocation or rescission is given to the Company.

 

(iv) Compensation
for Buy-In on Failure to Timely Deliver Certificates Upon Exercise. In addition to any other rights available to the Holder,
if the Company fails to cause the Transfer Agent to transmit to the Holder a certificate or the certificates representing the
Warrant Shares pursuant to an exercise on or before the Warrant Share Delivery Date, and if after such date the Holder is required
by its broker to purchase (in an open market transaction or otherwise) or the Holder’s brokerage firm otherwise purchases,
Ordinary Shares to deliver in satisfaction of a sale by the Holder of the Warrant Shares which the Holder anticipated receiving
upon such exercise (a “Buy-In”),
then the Company shall (A) pay in cash to the Holder the amount, if any, by which (x) the Holder’s total purchase price
(including brokerage commissions, if any) for the Ordinary Shares so purchased exceeds (y) the amount obtained by multiplying
(1) the number of Warrant Shares that the Company was required to deliver to the Holder in connection with the exercise at issue
times (2) the price at which the sell order giving rise to such purchase obligation was executed, and (B) at the option of the
Holder, either reinstate the portion of the Warrant and equivalent number of Warrant Shares for which such exercise was not honored
(in which case such exercise shall be deemed rescinded) or deliver to the Holder the number of Ordinary Shares that would have
been issued had the Company timely complied with its exercise and delivery obligations hereunder. For example, if the Holder purchases
Ordinary Shares having a total purchase price of $11,000 to cover a Buy-In with respect to an attempted exercise of Ordinary Shares
with an aggregate sale price giving rise to such purchase obligation of $10,000, under clause (A) of the immediately preceding
sentence the Company shall be required to pay the Holder $1,000. The Holder shall provide the Company written notice indicating
the amounts payable to the Holder in respect of the Buy-In and, upon request of the Company, evidence of the amount of such loss.
Nothing herein shall limit a Holder’s right to pursue any other remedies available to it hereunder, at law or in equity
including, without limitation, a decree of specific performance and/or injunctive relief with respect to the Company’s failure
to timely deliver certificates representing Ordinary Shares upon exercise of the Warrant as required pursuant to the terms hereof.

 

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(v) No
Fractional Shares or Scrip. No fractional shares or scrip representing fractional shares shall be issued upon the exercise
of this Warrant. As to any fraction of a share which the Holder would otherwise be entitled to purchase upon such exercise, the
Company shall, at its election, either pay a cash adjustment in respect of such final fraction in an amount equal to such fraction
multiplied by the Exercise Price or round up to the next whole share.

 

(vi) Charges,
Taxes and Expenses. Issuance of certificates for Warrant Shares shall be made without charge to the Holder for any issue or
transfer tax or other incidental expense in respect of the issuance of such certificate, all of which taxes and expenses shall
be paid by the Company, and such certificates shall be issued in the name of the Holder or in such name or names as may be directed
by the Holder; provided, however, that in the event certificates for Warrant Shares are to be issued in a name other
than the name of the Holder, this Warrant when surrendered for exercise shall be accompanied by the Assignment Form attached hereto
duly executed by the Holder and the Company may require, as a condition thereto, the payment of a sum sufficient to reimburse
it for any transfer tax incidental thereto. The Company shall pay all Transfer Agent fees required for same-day processing of
any Notice of Exercise.

 

(vii) Closing
of Books. The Company will not close its stockholder books or records in any manner which prevents the timely exercise of
this Warrant, pursuant to the terms hereof.

 

(e) Holder’s
Exercise Limitations. The Company shall not effect any exercise of this Warrant, and a Holder shall not have the
right to exercise any portion of this Warrant, pursuant to Section 2 or otherwise, to the extent that after giving
effect to such issuance after exercise as set forth on the applicable Notice of Exercise, the Holder (together with the
Holder’s Affiliates, and any other Persons acting as a group together with the Holder or any of the Holder’s
Affiliates), would beneficially own in excess of the Beneficial Ownership Limitation (as defined below). For purposes of the
foregoing sentence, the number of Ordinary Shares beneficially owned by the Holder and its Affiliates shall include the
number of Ordinary Shares issuable upon exercise of this Warrant with respect to which such determination is being made, but
shall exclude the number of Ordinary Shares which would be issuable upon (i) exercise of the remaining, nonexercised portion
of this Warrant beneficially owned by the Holder or any of its Affiliates and (ii) exercise or conversion of the unexercised
or nonconverted portion of any other securities of the Company (including, without limitation, any other Ordinary Shares
Equivalents) subject to a limitation on conversion or exercise analogous to the limitation contained herein beneficially
owned by the Holder or any of its Affiliates. Except as set forth in the preceding sentence, for purposes of this Section
2(e), beneficial ownership shall be calculated in accordance with Section 13(d) of the Exchange Act and the rules and
regulations promulgated thereunder, it being acknowledged by the Holder that the Company is not representing to the Holder
that such calculation is in compliance with Section 13(d) of the Exchange Act and the Holder is solely responsible for any
schedules required to be filed in accordance therewith. To the extent that the limitation contained in this Section
2(e) applies, the determination of whether this Warrant is exercisable (in relation to other securities owned by the
Holder together with any Affiliates) and of which portion of this Warrant is exercisable shall be in the sole discretion of
the Holder, and the submission of a Notice of Exercise shall be deemed to be the Holder’s determination of whether this
Warrant is exercisable (in relation to other securities owned by the Holder together with any Affiliates) and of which
portion of this Warrant is exercisable, in each case subject to the Beneficial Ownership Limitation, and the Company shall
have no obligation to verify or confirm the accuracy of such determination. In addition, a determination as to any
group status as contemplated above shall be determined in accordance with Section 13(d) of the Exchange Act and the rules and
regulations promulgated thereunder. For purposes of this Section 2(e), in determining the number of outstanding
Ordinary Shares, a Holder may rely on the number of outstanding Ordinary Shares as reflected in (A) the Company’s most
recent periodic or annual report filed with the Commission, as the case may be, (B) a more recent public announcement by the
Company or (C) a more recent written notice by the Company or the Transfer Agent setting forth the number of Ordinary Shares
outstanding. Upon the written or oral request of a Holder, the Company shall within two Trading Days confirm orally and in
writing to the Holder the number of Ordinary Shares then outstanding. In any case, the number of outstanding Ordinary Shares
shall be determined after giving effect to the conversion or exercise of securities of the Company, including this Warrant,
by the Holder or its Affiliates since the date as of which such number of outstanding Ordinary Shares was reported. The
“Beneficial Ownership Limitation” shall be 4.99% of the number of shares of the Ordinary Shares
outstanding immediately after giving effect to the issuance of Ordinary Shares issuable upon exercise of this Warrant. The
Holder may decrease the Beneficial Ownership Limitation at any time and the Holder, upon not less than 61 days’ prior
notice to the Company, may increase the Beneficial Ownership Limitation provisions of this Section 2(e), provided that
the Beneficial Ownership Limitation in no event exceeds 9.99% of the number of shares of the Ordinary Shares outstanding
immediately after giving effect to the issuance of Ordinary Shares upon exercise of this Warrant held by the Holder and the
provisions of this Section 2(e) shall continue to apply. Any such increase will not be effective until the
61st day after such notice is delivered to the Company. The provisions of this paragraph shall be construed and
implemented in a manner otherwise than in strict conformity with the terms of this Section 2(e) to correct this
paragraph (or any portion hereof) which may be defective or inconsistent with the intended Beneficial Ownership Limitation
herein contained or to make changes or supplements necessary or desirable to properly give effect to such limitation. The
limitations contained in this paragraph shall apply to a successor holder of this Warrant.

 

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Section
3.Certain Adjustments.

 

(a) Stock
Dividends and Splits. If the Company, at any time while this Warrant is outstanding: (i) pays a stock dividend or
otherwise makes a distribution or distributions on shares of its Ordinary Shares or any other equity or equity equivalent
securities payable in Ordinary Shares (which, for avoidance of doubt, shall not include any Ordinary Shares issued by the
Company upon exercise of this Warrant or pursuant to any of the other Transaction Documents), (ii) subdivides outstanding
Ordinary Shares into a larger number of shares, (iii) combines (including by way of reverse stock split) outstanding Ordinary
Shares into a smaller number of shares, or (iv) issues by reclassification of shares of the Ordinary Shares any shares of
capital stock of the Company, then in each case the Exercise Price shall be multiplied by a fraction of which the numerator
shall be the number of Ordinary Shares (excluding treasury shares, if any) outstanding immediately before such event and of
which the denominator shall be the number of Ordinary Shares outstanding immediately after such event, and the number of
shares issuable upon exercise of this Warrant shall be proportionately adjusted such that the aggregate Exercise Price of
this Warrant shall remain unchanged. Any adjustment made pursuant to this Section 3(a) shall become effective
immediately after the record date for the determination of stockholders entitled to receive such dividend or distribution and
shall become effective immediately after the effective date in the case of a subdivision, combination or
re-classification.

 

(b) Subsequent
Rights Offerings. In addition to any adjustments pursuant to Section 3(a) above, if at any time the Company grants,
issues or sells any Ordinary Shares Equivalents or rights to purchase stock, warrants, securities or other property pro rata to
the record holders of any class of Ordinary Shares (the “Purchase Rights”), then the Holder will be entitled
to acquire, upon the terms applicable to such Purchase Rights, the aggregate Purchase Rights which the Holder could have acquired
if the Holder had held the number of Ordinary Shares acquirable upon complete exercise of this Warrant (without regard to any
limitations on exercise hereof, including without limitation, the Beneficial Ownership Limitation) immediately before the date
on which a record is taken for the grant, issuance or sale of such Purchase Rights, or, if no such record is taken, the date as
of which the record holders of Ordinary Shares are to be determined for the grant, issue or sale of such Purchase Rights (provided,
however, to the extent that the Holder’s right to participate in any such Purchase Right would result in the Holder exceeding
the Beneficial Ownership Limitation, then the Holder shall not be entitled to participate in such Purchase Right to such extent
(or beneficial ownership of such Ordinary Shares as a result of such Purchase Right to such extent) and such Purchase Right to
such extent shall be held in abeyance for the Holder until such time, if ever, as its right thereto would not result in the Holder
exceeding the Beneficial Ownership Limitation).

 

(c) Pro
Rata Distributions. If the Company, at any time while this Warrant is outstanding, shall distribute to all holders of Ordinary
Shares (and not to the Holder) evidences of its indebtedness or assets (including cash and cash dividends) or rights or warrants
to subscribe for or purchase any security other than the Ordinary Shares (which shall be subject to Section 3(b)), then
in each such case the Exercise Price shall be adjusted by multiplying the Exercise Price in effect immediately prior to the record
date fixed for determination of stockholders entitled to receive such distribution by a fraction of which the denominator shall
be the VWAP determined as of the record date mentioned above, and of which the numerator shall be such VWAP on such record date
less the then per share fair market value at such record date of the portion of such assets or evidence of indebtedness so distributed
applicable to one outstanding share of the Ordinary Shares as determined by the Board of Directors in good faith. In either case
the adjustments shall be described in a statement provided to the Holder of the portion of assets or evidences of indebtedness
so distributed or such subscription rights applicable to one Ordinary Share. Such adjustment shall be made whenever any such distribution
is made and shall become effective immediately after the record date mentioned above.

 

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(d) Fundamental
Transaction. If, at any time while this Warrant is outstanding, (i) the Company, directly or indirectly, in one or more
related transactions effects any merger or consolidation of the Company with or into another Person, (ii) the Company,
directly or indirectly, effects any sale, lease, license, assignment, transfer, conveyance or other disposition of all or
substantially all of its assets in one or a series of related transactions, (iii) any, direct or indirect, purchase offer,
tender offer or exchange offer (whether by the Company or another Person) is completed pursuant to which holders of Ordinary
Shares are permitted to sell, tender or exchange their shares for other securities, cash or property and has been accepted by
the holders of 50% or more of the outstanding Ordinary Shares, (iv) the Company, directly or indirectly, in one or more
related transactions effects any reclassification, reorganization or recapitalization of the Ordinary Shares or any
compulsory share exchange pursuant to which the Ordinary Shares are effectively converted into or exchanged for other
securities, cash or property, or (v) the Company, directly or indirectly, in one or more related transactions consummates a
stock or share purchase agreement or other business combination (including, without limitation, a reorganization,
recapitalization, spin-off or scheme of arrangement) with another Person or group of Persons whereby such other Person or
group acquires more than 50% of the outstanding Ordinary Shares (not including any Ordinary Shares held by the other Person
or other Persons making or party to, or associated or affiliated with the other Persons making or party to, such stock or
share purchase agreement or other business combination) (each a “Fundamental Transaction”), then, upon
any subsequent exercise of this Warrant, the Holder shall have the right to receive, for each Warrant Share that would have
been issuable upon such exercise immediately prior to the occurrence of such Fundamental Transaction, at the option of the
Holder (without regard to any limitation in Section 2(e) on the exercise of this Warrant), the number of Ordinary
Shares (or successor security) of the successor or acquiring corporation or of the Company, if it is the surviving
corporation, and any additional consideration (the “Alternate Consideration”) receivable as a result of
such Fundamental Transaction by a holder of the number of Ordinary Shares for which this Warrant is exercisable immediately
prior to such Fundamental Transaction (without regard to any limitation in Section 2(e) on the exercise of this
Warrant). For purposes of any such exercise, the determination of the Exercise Price shall be appropriately adjusted to apply
to such Alternate Consideration based on the amount of Alternate Consideration issuable in respect of one Ordinary Share in
such Fundamental Transaction, and the Company shall apportion the Exercise Price among the Alternate Consideration in a
reasonable manner reflecting the relative value of any different components of the Alternate Consideration. If holders of
Ordinary Shares are given any choice as to the securities, cash or property to be received in a Fundamental Transaction, then
the Holder shall be given the same choice as to the Alternate Consideration it receives upon any exercise of this Warrant
following such Fundamental Transaction. Notwithstanding anything to the contrary, in the event of a Fundamental
Transaction, the Company or any Successor Entity (as defined below) shall, at the Holder’s option, exercisable at any
time concurrently with, or within 30 days after, the consummation of the Fundamental Transaction, purchase this Warrant from
the Holder by paying to the Holder an amount of cash equal to the Black Scholes Value of the remaining unexercised portion of
this Warrant on the date of the consummation of such Fundamental Transaction. “Black Scholes Value” means
the value of this Warrant based on the Black and Scholes Option Pricing Model obtained from the “OV” function on
Bloomberg, L.P. (“Bloomberg”) determined as of the day of consummation of the applicable Fundamental
Transaction for pricing purposes and reflecting (A) a risk-free interest rate corresponding to the U.S. Treasury rate for a
period equal to the time between the date of the public announcement of the applicable Fundamental Transaction and the
Termination Date, (B) an expected volatility equal to the greater of 100% and the 100 day volatility obtained from the HVT
function on Bloomberg as of the Trading Day immediately following the public announcement of the applicable Fundamental
Transaction, (C) the underlying price per share used in such calculation shall be the sum of the price per share being
offered in cash, if any, plus the value of any non-cash consideration, if any, being offered in such Fundamental Transaction
and (D) a remaining option time equal to the time between the date of the public announcement of the applicable
Fundamental Transaction and the Termination Date. The Company shall cause any successor entity in a Fundamental Transaction
in which the Company is not the survivor (the “Successor Entity”) to assume in writing all of the
obligations of the Company under this Warrant and the other Transaction Documents in accordance with the provisions of this Section
3(e) pursuant to written agreements in form and substance reasonably satisfactory to the Holder and approved by the
Holder (without unreasonable delay) prior to such Fundamental Transaction and shall, if the Successor Entity is a public
company or if the shareholders of the Company have the option to or will become equity holders of the Successor Entity,
at the option of the Holder, deliver to the Holder in exchange for this Warrant a security of the Successor Entity evidenced
by a written instrument substantially similar in form and substance to this Warrant which is exercisable for a corresponding
number of shares of capital stock of such Successor Entity (or its parent entity) equivalent to the Ordinary Shares
acquirable and receivable upon exercise of this Warrant (without regard to any limitations on the exercise of this Warrant)
prior to such Fundamental Transaction, and with an exercise price which applies the exercise price hereunder to such shares
of capital stock (but taking into account the relative value of the Ordinary Shares pursuant to such Fundamental Transaction
and the value of such shares of capital stock, such number of shares of capital stock and such exercise price being for the
purpose of protecting the economic value of this Warrant immediately prior to the consummation of such Fundamental
Transaction), and which is reasonably satisfactory in form and substance to the Holder. Upon the occurrence of any such
Fundamental Transaction, the Successor Entity shall succeed to, and be substituted for (so that from and after the date of
such Fundamental Transaction, the provisions of this Warrant and the other Transaction Documents referring to the
“Company” shall refer instead to the Successor Entity), and may exercise every right and power of the Company and
shall assume all of the obligations of the Company under this Warrant and the other Transaction Documents with the same
effect as if such Successor Entity had been named as the Company herein. The proposed transaction with Digiflex as described
in the SEC Reports as updated by the Disclosure Schedules to the Agreement is not a Fundamental Transaction.

 

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(e) Adjustment
Upon Issuance of Ordinary Shares. If and whenever on or after the date hereof, the Company issues or sells, or in
accordance with this Section 3 is deemed to have issued or sold, any Ordinary Shares (including the issuance or sale
of Ordinary Shares owned or held by or for the account of the Company, but excluding any Exempt Issuance issued or sold or
deemed to have been issued or sold) for a consideration per share (the “New Issuance Price”) less than a
price equal to the Exercise Price in effect immediately prior to such issue or sale or deemed issuance or sale (such Exercise
Price then in effect is referred to as the “Applicable Price”) (the foregoing a “Dilutive
Issuance”), then immediately after such Dilutive Issuance, the Exercise Price then in effect shall be reduced to
the New Issuance Price. For all purposes of the foregoing (including, without limitation, determining the adjusted Exercise
Price and consideration per share under this Section 3(e)), the following shall be applicable:

 

(i) Issuance
of Options. If the Company in any manner grants or sells any options (other than options that qualify as Exempt
Issuances) and the lowest price per share for which one Ordinary Share is issuable upon the exercise of any such option or
upon conversion, exercise or exchange of any Ordinary Shares Equivalents issuable upon exercise of any such option is less
than the Applicable Price, then such Ordinary Shares shall be deemed to be outstanding and to have been issued and sold by
the Company at the time of the granting or sale of such option for such price per share. For purposes of this Section
3(e)(i), the “lowest price per share for which one Ordinary Share is issuable upon the exercise of any such options or
upon conversion, exercise or exchange of any Ordinary Shares Equivalents issuable upon exercise of any such option”
shall be equal to (1) the lower of (x) the sum of the lowest amounts of consideration (if any) received or receivable by the
Company with respect to any one Ordinary Share upon the granting or sale of such option, upon exercise of such option and
upon conversion, exercise or exchange of any Ordinary Shares Equivalent issuable upon exercise of such option and (y) the
lowest exercise price set forth in such option for which one Ordinary Share is issuable upon the exercise of any such options
or upon conversion, exercise or exchange of any Ordinary Shares Equivalents issuable upon exercise of any such option minus
(2) the sum of all amounts paid or payable to the holder of such option (or any other Person) upon the granting or sale of
such option, upon exercise of such Option and upon conversion, exercise or exchange of any Ordinary Shares Equivalent
issuable upon exercise of such option plus the value of any other consideration received or receivable by, or benefit
conferred on, the holder of such option (or any other Person). Except as contemplated below, no further adjustment of the
Exercise Price shall be made upon the actual issuance of such Ordinary Shares or of such Ordinary Shares Equivalents upon the
exercise of such options or upon the actual issuance of such Ordinary Shares upon conversion, exercise or exchange of such
Ordinary Shares Equivalents.

 

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(ii) Issuance
of Ordinary Shares Equivalents. If the Company in any manner issues or sells any Ordinary Shares Equivalents (other than Ordinary
Shares Equivalents that qualify as Exempt Issuances) and the lowest price per share for which one Ordinary Share is issuable upon
the conversion, exercise or exchange thereof is less than the Applicable Price, then such Ordinary Shares shall be deemed to be
outstanding and to have been issued and sold by the Company at the time of the issuance or sale of such Ordinary Shares Equivalents
for such price per share. For the purposes of this Section 3(e)(ii), the “lowest price per share for which one Ordinary
Share is issuable upon the conversion, exercise or exchange thereof” shall be equal to (1) the lower of (x) the sum of the
lowest amounts of consideration (if any) received or receivable by the Company with respect to one Ordinary Share upon the issuance
or sale of the Ordinary Shares Equivalent and upon conversion, exercise or exchange of such Ordinary Shares Equivalent and (y)
the lowest conversion price set forth in such Ordinary Shares Equivalent for which one Ordinary Share is issuable upon conversion,
exercise or exchange thereof minus (2) the sum of all amounts paid or payable to the holder of such Ordinary Shares Equivalent
(or any other Person) upon the issuance or sale of such Ordinary Shares Equivalent plus the value of any other consideration received
or receivable by, or benefit conferred on, the holder of such Ordinary Shares Equivalent (or any other Person). Except as contemplated
below, no further adjustment of the Exercise Price shall be made upon the actual issuance of such Ordinary Shares upon conversion,
exercise or exchange of such Ordinary Shares Equivalents, and if any such issue or sale of such Ordinary Shares Equivalents is
made upon exercise of any options for which adjustment of this Note has been or is to be made pursuant to other provisions of
this Section 3(e), except as contemplated below, no further adjustment of the Exercise Price shall be made by reason of
such issue or sale.

 

(iii) Change
in Option Price or Rate of Conversion. If the purchase or exercise price provided for in any options, the additional consideration,
if any, payable upon the issue, conversion, exercise or exchange of any Ordinary Shares Equivalents, or the rate at which any
Ordinary Shares Equivalents are convertible into or exercisable or exchangeable for Ordinary Shares increases or decreases at
any time, the Exercise Price in effect at the time of such increase or decrease shall be adjusted to the Exercise Price which
would have been in effect at such time had such options or Ordinary Shares Equivalents provided for such increased or decreased
purchase price, additional consideration or increased or decreased conversion rate, as the case may be, at the time initially
granted, issued or sold. For purposes of this Section 3(e)(iii), if the terms of any option or Ordinary Shares Equivalent that
was outstanding as of the date of issuance of this Note are increased or decreased in the manner described in the immediately
preceding sentence, then such option or Ordinary Shares Equivalent and the Ordinary Shares deemed issuable upon exercise, conversion
or exchange thereof shall be deemed to have been issued as of the date of such increase or decrease. No adjustment pursuant to
this Section 3(e) shall be made if such adjustment would result in an increase of the Exercise Price then in effect.

 

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(iv) Calculation
of Consideration Received. If any option and/or Ordinary Shares Equivalent and/or Adjustment Right is issued in
connection with the issuance or sale or deemed issuance or sale of any other securities of the Company (as determined by the
Holder, the “Primary Security”, and such option and/or Ordinary Shares Equivalent and/or Adjustment Right,
the “Secondary Securities”), together comprising one integrated transaction, the consideration per
Ordinary Shares with respect to such Primary Security shall be deemed to be equal to the difference of (x) the lowest price
per share for which one Ordinary Share was issued in such integrated transaction (or was deemed to be issued pursuant to
Section 3(e)(i) or 3(e)(ii) above, as applicable) solely with respect to such Primary Security, minus (y) with respect
to such Secondary Securities, the sum of (I) the Black Scholes Consideration Value of each such option, if any, (II) the fair
market value (as determined by the Holder) or the Black Scholes Consideration Value, as applicable, of such Adjustment Right,
if any, and (III) the fair market value (as determined by the Holder) of such Ordinary Shares Equivalent, if any, in each
case, as determined on a per share basis in accordance with this Section 3(e)(iv). If any Ordinary Shares, options or
Ordinary Shares Equivalents are issued or sold or deemed to have been issued or sold for cash, the consideration received
therefor (for the purpose of determining the consideration paid for such Ordinary Shares, option or Ordinary Shares
Equivalent, but not for the purpose of the calculation of the Black Scholes Consideration Value) will be deemed to be the net
amount of consideration received by the Company therefor. If any Ordinary Shares, options or Ordinary Shares Equivalents are
issued or sold for a consideration other than cash (for the purpose of determining the consideration paid for such Ordinary
Shares, option or Ordinary Shares Equivalent, but not for the purpose of the calculation of the Black Scholes Consideration
Value), the amount of such consideration received by the Company will be the fair value of such consideration, except where
such consideration consists of publicly traded securities, in which case the amount of consideration received by the
Company for such securities will be the arithmetic average of the VWAPs of such security for each of the five (5) Trading
Days immediately preceding the date of receipt. If any Ordinary Shares, options or Ordinary Shares Equivalents are issued to
the owners of the non-surviving entity in connection with any merger in which the Company is the surviving entity (for the
purpose of determining the consideration paid for such Ordinary Shares, option or Ordinary Shares Equivalent, but not for the
purpose of the calculation of the Black Scholes Consideration Value), the amount of consideration therefor will be deemed to
be the fair value of such portion of the net assets and business of the non-surviving entity as is attributable to such
Ordinary Shares, options or Ordinary Shares Equivalents, as the case may be. The fair value of any consideration other than
cash or publicly traded securities (for the purpose of determining the consideration paid for such Ordinary Shares, option or
Ordinary Shares Equivalent, but not for the purpose of the calculation of the Black Scholes Consideration Value) will be
determined jointly by the Company and the Holder. If such parties are unable to reach agreement within ten (10) days after
the occurrence of an event requiring valuation (the “Valuation Event”), the fair value of such
consideration will be determined within five (5) Trading Days after the tenth (10th) day following such Valuation
Event by an independent, reputable appraiser jointly selected by the Company and the Holder. The determination of such
appraiser shall be final and binding upon all parties absent manifest error and the fees and expenses of such appraiser shall
be borne by the Company.

 

(f) Calculations.
All calculations under this Section 3 shall be made to the nearest cent or the nearest 1/100th of a share, as the case
may be. For purposes of this Section 3, the number of Ordinary Shares deemed to be issued and outstanding as of a given
date shall be the sum of the number of Ordinary Shares (excluding treasury shares, if any) issued and outstanding.

 

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(g) Notice
to Holder.

 

(i) Adjustment
to Exercise Price. Whenever the Exercise Price is adjusted pursuant to any provision of this Section 3, the
Company shall promptly mail to the Holder a notice setting forth the Exercise Price after such adjustment and any resulting
adjustment to the number of Warrant Shares and setting forth a brief statement of the facts requiring such adjustment.

 

(ii) Notice
to Allow Exercise by Holder. If (A) the Company shall declare a dividend (or any other distribution in whatever
form) on the Ordinary Shares, (B) the Company shall declare a special nonrecurring cash dividend on or a redemption of the
Ordinary Shares, (C) the Company shall authorize the granting to all holders of the Ordinary Shares rights or warrants to
subscribe for or purchase any shares of capital stock of any class or of any rights,
(D) the approval of any stockholders of the Company shall be required in connection
with any reclassification of the Ordinary Shares, any consolidation or merger to which the Company is a party, any sale or
transfer of all or substantially all of the assets of the Company, or any compulsory share exchange whereby the Ordinary
Shares are converted into other securities, or (E) the Company shall authorize the
voluntary or involuntary dissolution, liquidation or winding up of the affairs of the Company, then, in each case, to the
extent that such information constitutes material non-public information (as determined in good faith by the Company) the
Company shall follow the procedure described in Section 13 of the Subscription Agreement and shall deliver to the Holder at
its last address as it shall appear upon the Warrant Register of the Company, at least 20 calendar days prior to the
applicable record or effective date hereinafter specified, a notice stating (x) the date on which a record is to be taken for
the purpose of such dividend, distribution, redemption, rights or warrants, or if a record is not to be taken, the date as of
which the holders of the Ordinary Shares of record to be entitled to such dividend, distributions, redemption, rights or
warrants are to be determined or (y) the date on which such reclassification, consolidation, merger, sale, transfer or share
exchange is expected to become effective or close, and the date as of which it is expected that holders of the Ordinary
Shares of record shall be entitled to exchange their shares of the Ordinary Shares for securities, cash or other property
deliverable upon such reclassification, consolidation, merger, sale, transfer or share exchange; provided that the failure to
mail such notice or any defect therein or in the mailing thereof shall not affect the validity of the corporate action
required to be specified in such notice. To the extent that any notice provided hereunder constitutes, or contains, material,
nonpublic information regarding the Company or any of the Subsidiaries, the Company shall simultaneously file such notice
with the Commission pursuant to a Current Report on Form 8-K. The Holder shall remain entitled to exercise this Warrant
during the period commencing on the date of such notice to the effective date of the event triggering such notice except as
may otherwise be expressly set forth herein.

 

(h) Increase
in Warrant Shares. In the event the Exercise Price is reduced for any reason, including but not limited to
pursuant to Section 3(e) of this Warrant the number of Warrant Shares issuable hereunder shall be increased such that
the aggregate Exercise Price payable hereunder, after taking into account the decrease in the Exercise Price, shall be equal
to the aggregate Exercise Price prior to such adjustment.

 

Section
4.Transfer of Warrant.

 

(a) Transferability.
Subject to compliance with any applicable securities
laws and the provisions of the Purchase Agreement, this Warrant and all rights hereunder (including, without limitation,
any registration rights) are transferable, in whole or in part, upon surrender of this Warrant at the principal office of the
Company or its designated agent, together with a written assignment of this Warrant substantially in the form attached hereto
duly executed by the Holder or its agent or attorney and funds sufficient to pay any transfer taxes payable upon the making of
such transfer. Upon such surrender and, if required, such payment, the Company shall execute and deliver a new Warrant or Warrants
in the name of the assignee or assignees, as applicable, and in the denomination or denominations specified in such instrument
of assignment, and shall issue to the assignor a new Warrant evidencing the portion of this Warrant not so assigned, and this
Warrant shall promptly be cancelled. The Warrant, if properly assigned in accordance herewith, may be exercised by a new holder
for the purchase of Warrant Shares without having a new Warrant issued.

 

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(b) New
Warrants. This Warrant may be divided or combined with other Warrants upon presentation hereof at the aforesaid office of
the Company, together with a written notice specifying the names and denominations in which new Warrants are to be issued, signed
by the Holder or its agent or attorney. Subject to compliance with Section 4(a), as to any transfer which may be involved
in such division or combination, the Company shall execute and deliver a new Warrant or Warrants in exchange for the Warrant or
Warrants to be divided or combined in accordance with such notice. All Warrants issued on transfers or exchanges shall be dated
the initial issuance date of this Warrant and shall be identical with this Warrant except as to the number of Warrant Shares issuable
pursuant thereto.

 

(c) Warrant
Register. The Company shall register this Warrant, upon records to be maintained by the Company for that purpose (the “Warrant
Register”), in the name of the record Holder hereof from time to time. The Company may deem and treat the registered
Holder of this Warrant as the absolute owner hereof for the purpose of any exercise hereof or any distribution to the Holder,
and for all other purposes, absent actual notice to the contrary.

 

Section
5.Miscellaneous.

 

(a) No
Rights as Stockholder Until Exercise. This Warrant does not entitle the Holder to any voting rights, dividends or other rights
as a stockholder of the Company prior to the exercise hereof as set forth in Section 2(d)(i).

 

(b) Loss,
Theft, Destruction or Mutilation of Warrant. The Company covenants that upon receipt by the Company of evidence reasonably
satisfactory to it of the loss, theft, destruction or mutilation of this Warrant or any stock certificate relating to the Warrant
Shares, and in case of loss, theft or destruction, of indemnity or security reasonably satisfactory to it (which, in the case
of the Warrant, shall not include the posting of any bond), and upon surrender and cancellation of such Warrant or stock certificate,
if mutilated, the Company will make and deliver a new Warrant or stock certificate of like tenor and dated as of such cancellation,
in lieu of such Warrant or stock certificate.

 

(c) Saturdays,
Sundays, Holidays, etc. If the last or appointed day for the taking of any action or the expiration of any right required
or granted herein shall not be a Trading Day, then, such action may be taken or such right may be exercised on the next succeeding
Trading Day.

 

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(d) Authorized
Shares. The Company covenants that, during the period the Warrant is outstanding, it will reserve from its authorized
and unissued Ordinary Shares a sufficient number of shares to provide for the issuance of the Warrant Shares upon the
exercise of any purchase rights under this Warrant. The Company further covenants that its issuance of this Warrant shall
constitute full authority to its officers who are charged with the duty of executing stock certificates to execute and issue
the necessary certificates for the Warrant Shares upon the exercise of the purchase rights under this Warrant. The Company
will take all such reasonable action as may be necessary to assure that such Warrant Shares may be issued as provided herein
without violation of any applicable law or regulation, or of any requirements of the Trading Market upon which the
Ordinary Shares may be listed. The Company covenants that all Warrant Shares which may be issued upon the exercise of the
purchase rights represented by this Warrant will, upon exercise of the purchase rights represented by this Warrant and
payment for such Warrant Shares in accordance herewith, be duly authorized, validly issued, fully paid and non-assessable and
free from all taxes, liens and charges created by the Company in respect of the issue thereof (other than taxes in respect of
any transfer occurring contemporaneously with such issue). Except and to the extent as waived or consented to by the Holder,
the Company shall not by any action, including, without limitation, amending its certificate of incorporation or through any
reorganization, transfer of assets, consolidation, merger, dissolution, issue or sale of securities or any other voluntary
action, avoid or seek to avoid the observance or performance of any of the terms of this Warrant, but will at all times in
good faith assist in the carrying out of all such terms and in the taking of all such actions as may be necessary or
appropriate to protect the rights of Holder as set forth in this Warrant against impairment. Without limiting the generality
of the foregoing, the Company will (i) not increase the par value of any Warrant Shares above the amount payable therefor
upon such exercise immediately prior to such increase in par value, (ii) take all such action as may be necessary or
appropriate in order that the Company may validly and legally issue fully paid and nonassessable Warrant Shares upon the
exercise of this Warrant and (iii) use commercially reasonable efforts to obtain all such authorizations, exemptions or
consents from any public regulatory body having jurisdiction thereof, as may be, necessary to enable the Company to
perform its obligations under this Warrant. Before taking any action which would result in an adjustment in the number of
Warrant Shares for which this Warrant is exercisable or in the Exercise Price, the Company shall obtain all such
authorizations or exemptions thereof, or consents thereto, as may be necessary from any public regulatory body or bodies
having jurisdiction thereof.

 

(e) Jurisdiction.
All questions concerning governing law, jurisdiction, venue and the construction, validity, enforcement and interpretation of
this Warrant shall be determined in accordance with the provisions of the Purchase Agreement.

 

(f) Restrictions.
The Holder acknowledges that the Warrant Shares acquired upon the exercise of this Warrant, if not registered, or unless exercised
in a cashless exercise when Rule 144 is available, and the Holder does not utilize cashless exercise, will have restrictions upon
resale imposed by state and federal securities laws.

 

(g) Non-waiver
and Expenses. No course of dealing or any delay or failure to exercise any right hereunder on the part of Holder shall operate
as a waiver of such right or otherwise prejudice the Holder’s rights, powers or remedies. Without limiting any other provision
of this Warrant or the Purchase Agreement, if the Company willfully and knowingly fails to comply with any provision of this Warrant,
which results in any material damages to the Holder, the Company shall pay to the Holder such amounts as shall be sufficient to
cover any costs and expenses including, but not limited to, reasonable attorneys’ fees, including those of appellate proceedings,
incurred by the Holder in collecting any amounts due pursuant hereto or in otherwise enforcing any of its rights, powers or remedies
hereunder.

 

(h) Notices.
Any notice, request or other document required or permitted to be given or delivered to the Holder by the Company shall be delivered
in accordance with the notice provisions of the Purchase Agreement.

 

(i) Limitation
of Liability. No provision hereof, in the absence of any affirmative action by the Holder to exercise this Warrant to
purchase Warrant Shares, and no enumeration herein of the rights or privileges of the Holder, shall give rise to any
liability of the Holder for the purchase price of any Ordinary Shares or as a stockholder of the Company, whether such
liability is asserted by the Company or by creditors of the Company.

 

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(j) Remedies.
The Holder, in addition to being entitled to exercise all rights granted by law, including recovery of damages, will be entitled
to specific performance of its rights under this Warrant. The Company agrees that monetary damages would not be adequate compensation
for any loss incurred by reason of a breach by it of the provisions of this Warrant and hereby agrees to waive and not to assert
the defense in any action for specific performance that a remedy at law would be adequate.

 

(k) Successors
and Assigns. Subject to applicable securities laws, this Warrant and the rights and obligations evidenced hereby shall inure
to the benefit of and be binding upon the successors and permitted assigns of the Company and the successors and permitted assigns
of Holder. The provisions of this Warrant are intended to be for the benefit of any Holder from time to time of this Warrant and
shall be enforceable by the Holder or holder of Warrant Shares.

 

(l) Amendment.
This Warrant may be modified or amended or the provisions hereof waived with the written consent of the Company and the Holders
of not less than a majority of the outstanding Warrants issued pursuant to the Purchase Agreement.

 

(m) Severability.
Wherever possible, each provision of this Warrant shall be interpreted in such manner as to be effective and valid under applicable
law, but if any provision of this Warrant shall be prohibited by or invalid under applicable law, such provision shall be ineffective
to the extent of such prohibition or invalidity, without invalidating the remainder of such provisions or the remaining provisions
of this Warrant.

 

(n) Headings.
The headings used in this Warrant are for the convenience of reference only and shall not, for any purpose, be deemed a part of
this Warrant.

 

********************

 

(Signature
Page Follows)

 

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IN WITNESS WHEREOF,
the Company has caused this Warrant to be executed by its officer thereunto duly authorized as of the date first above indicated.

 

	 	P.V. NANO CELL LTD.
	 	 	 
	 	By:	 
	 	 	Name:
Dr. Fernando de la Vega
	 	 	Title: CEO

 

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NOTICE
OF EXERCISE

 

TO:P.V.
NANO CELL LTD.

 

(1)The
undersigned hereby elects to purchase________Warrant Shares of the Company pursuant to the terms of the attached Warrant
(only if exercised in full), and tenders herewith payment of the exercise price in full, together with all applicable
transfer taxes, if any.

 

(2)
Payment shall take the form of (check applicable box):

 

[   ] in lawful money of the United States; or

 

[   ] [if permitted] the cancellation of such number of Warrant Shares as is necessary, in accordance with the formula set forth
in subSection 2(c), to exercise this Warrant with respect to the maximum number of Warrant Shares purchasable pursuant
to the cashless exercise procedure set forth in subSection 2(c).

 

(3) Please
issue a certificate or certificates representing said Warrant Shares in the name of the undersigned or in such other name as is
specified below:

 

	 	 	 

  

(4) After
giving effect to this Notice of Exercise, the undersigned will not have exceeded the Beneficial Ownership Limitation.

 

The
Warrant Shares shall be delivered to the following DWAC Account Number or by physical delivery of a certificate to:

 

	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 

 

[SIGNATURE
OF HOLDER]

 

Name
of Investing Entity:__________________________________________________________________________

Signature
of Authorized Signatory of Investing Entity:____________________________________________________

Name
of Authorized Signatory:______________________________________________________________________

Title
of Authorized Signatory:_______________________________________________________________________

Date: _________________________________________________________________________________________

 

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ASSIGNMENT
FORM

 

(To
assign the foregoing warrant, execute

this form and supply required information.

Do not use this form to exercise the warrant.)

 

P.V.
NANO CELL LTD.

 

FOR
VALUE RECEIVED, [___] all of or [_______] shares of the foregoing Warrant and all rights evidenced
thereby are hereby assigned to

 

_________________________________________________whose
address is

 

_______________________________________________________________.

 

 

 

_______________________________________________________________

 

Dated:
_____________, ______

 

	 	Holder’s Signature:	 	 
	 	 	 	 
	 	Holder’s Address:	 	 
	 	 	 	 
	 	 	 	 

 

Signature
Guaranteed: _________________________________

 

NOTE:
The signature to this Assignment Form must correspond with the name as it appears on the face of the Warrant, without alteration
or enlargement or any change whatsoever, and must be guaranteed by a bank or trust company. Officers of corporations and those
acting in a fiduciary or other representative capacity should file proper evidence of authority to assign the foregoing Warrant.

 

    84

     

    

 

EXHIBIT

 

August
__, 2017

 

To:
The Purchasers identified on Schedule A hereto:

 

We
have served as special counsel to P.V. Nano Cell Ltd., a company formed under the laws of the State of Israel (the “Company”),
in connection with Company’s offer and sale of convertible notes (the “Notes”), in the principal amount
of US $333,333 to the Purchasers identified on Schedule A hereto (the “Purchasers”, and each a “Purchaser”),
and Ordinary Share Purchase Warrants (“Warrants”) (the Notes and Warrants collectively the “Securities”),
pursuant to the exemption from registration under the Securities Act of 1933, as amended (the “Act”), as set forth
in Regulation D, promulgated thereunder. Capitalized terms used herein and not otherwise defined shall have the meaning assigned
to them in the Securities Purchase Agreement (the “Agreement”) by and between the Company and the Purchasers
entered into at or about the date hereof.

 

In
rendering this opinion, we have examined electronic, facsimile or photostatic copies of the following documents:

 

1. the
Agreement;

 

2. the
Company’s Articles of Association (the “Organizational Documents”);

 

3. resolutions
(the “Resolutions”) of the Company’s Board of Directors approving, among other things, the Agreement
and the transactions contemplated thereby;

 

4. the
form of the Notes issuable pursuant to the Agreement;

 

5. the
form of the Warrants to be delivered to the Purchasers upon Closing;

 

6. the
form of Lockup Agreement; and

 

7. such
certificates of officers and consultants of the Company, dated as of the date hereof, as we have deemed appropriate.

 

We
refer to the documents listed in items 1 through 7 above as the “Reviewed Documents”. We have also reviewed
and relied upon such other documents, Company records and certificates of public officials, as we have deemed necessary or appropriate
to express the opinions set forth below, subject to the assumptions, limitations and qualifications stated herein.

 

    85

     

    

 

In
our examination, we have assumed, without independent investigation, the genuineness of all signatures, the legal capacity
and competency of all natural persons, the authenticity of all documents submitted to us as originals and the conformity to
original documents of all documents submitted to us as copies. To the extent that our opinions may be dependent upon such
matters, we have assumed, without independent investigation, that each of the parties thereto, other than the Company, has
all requisite corporate or other entity power to execute, deliver and perform its obligations under the Reviewed Documents to
which it is a party; that the execution and delivery of such documents by each such party (other than the Company) and the
performance of its obligations thereunder have been duly authorized by all necessary corporate or other action do not violate
any law, regulation, order, judgment or decree applicable to each such party (except as expressly set forth in our opinion
below with respect to the Company); and that such documents have been duly executed and delivered by each such party (other
than the Company).

 

As
special counsel to the Company, our representation of the Company has been limited to the specific and discrete matters contemplated
by this opinion. Accordingly, we do not have and you should not infer from our representation of the Company in this particular
instance that we have any knowledge of the Company’s affairs or transactions other than as expressly set forth in this opinion
letter.

 

Based
upon the foregoing, and subject to the assumptions, exceptions, qualifications and limitations set forth herein, we are of the
opinion that:

 

1. The
Securities, which have not been registered under the Act, or under the laws of any state or other jurisdiction, based in part
upon the representations of the Purchasers contained in the Agreement, have been offered, issued and sold pursuant to a valid
exemption from registration under the Act.

 

2. The
Reviewed Documents are enforceable against the Company in accordance with their respective terms. For purposes of this opinion
we have assumed that the Reviewed Documents are governed by Florida law and we do not give any opinion as to New York law.

 

3. The
Company and each Subsidiary has either obtained the approval of the transactions described in the Reviewed Documents from the
OTCQB, or no such approval is required.

 

The
opinions expressed above are subject to the following additional exceptions, qualifications, limitations and assumptions:

 

a) As
used herein, the phrases “to the best of our knowledge,” “come to our attention” or any
similar expression or phrase with respect to our knowledge of matters of fact, means as to matters of fact that, based on the
actual knowledge of the attorneys within our firm who are currently actively involved in the representation of the Company
hereto in connection with the Agreement and the transactions contemplated thereby (and not including any constructive or
imputed notice of any information), and after an examination of the documents referred to herein, no facts have been
disclosed to us that have caused us to conclude that the opinions expressed herein are factually incorrect. Furthermore, such
reference means only that we do not know of any fact or circumstance contradicting the statement that follows, and does not
imply that we know the statement to be correct. Except to the extent expressly set forth herein or as we otherwise believe to
be necessary to our opinion, we have not undertaken any independent investigation to determine the existence or absence of
any fact, and no inference as to our knowledge of the existence or absence of any fact should be drawn from our
representation of the Company hereto or the rendering of the opinions set forth above;

 

    86

     

    

 

b) the
opinions above are each subject to (i) the effect of any bankruptcy, insolvency, reorganization, moratorium, arrangement or other
laws affecting the rights and remedies of creditors’ generally, including without limitation the effect of statutory or
other laws regarding fraudulent transfers or preferential transfers and (ii) general principles of equity, including without limitation
concepts of materiality, reasonableness, good faith and fair dealing and the possible unavailability of specific performance,
injunctive relief or other equitable remedies regardless of whether enforceability is considered in a proceeding in equity or
at law;

 

c) we
express no opinion as to the validity, binding effect or enforceability of provisions of the Agreement (i) regarding liquidated
damages to the extent that amounts characterized as liquidated damages are determined to be penalties, (ii) that purport to deny
effect to waivers or amendments made other than in writing (such as by course of conduct), (iii) that purport to exculpate a party
from, or indemnify a party against, federal or state securities laws (including, without limitation, violations of the Act and
the Exchange Act and the respective rules and regulations promulgated thereunder) its own negligence or failure to act in good
faith or in accordance with standards of commercial reasonableness, (iv) that purport to waive statutes of limitations, (v) that
purport to permit a party to establish evidentiary standards for actions or proceedings, (vi) that purport to waive future defenses
or counterclaims, or (vii) as to state securities laws, healthcare laws, tax laws, antitrust or trade regulation laws, insolvency
or fraudulent transfer laws, antifraud laws, labor laws, anti-terrorism laws, usury laws, environmental laws, margin regulations,
(without limiting other laws excluded by customary practice).

 

d) we
render no opinion herein with respect to: (i) any pension and employee benefit laws and regulations; (ii) any environmental protection
laws, zoning or land use laws, or local, state or federal taxation, labor or employee benefits laws or regulation, (iii) compliance
with fiduciary duty requirements; (iv) any federal laws, regulations and policies concerning national emergency, anti-terrorism,
possible judicial deference to acts of sovereign states and criminal and civil forfeiture laws; (v) any provisions of the Reviewed
Documents that purport to waive various rights of the Company; (vi) provisions of the Agreement to the effect that rights or remedies
are not exclusive, that every right or remedy is cumulative and may be exercised in addition to any other right or remedy or that
failure to exercise rights or remedies will not operate as a waiver of any such right or remedy; (vii) any county, municipal or
local laws, rules, regulations or ordinances; (viii) laws regarding antitrust or competition or (ix) the laws and regulations
of any jurisdiction regarding banks and bank holding companies.

 

Subject
to the other qualifications, assumptions and exceptions stated herein, our opinions herein are limited to the federal laws of
the United States and the laws of the state of Florida (“Applicable Laws”). For purposes of this opinions letter
we have assumed that the laws of the State of New York are identical to the laws of the State of Florida. We have not conducted
any review of, and express no opinion with respect to the effect of any laws, rules or codes other than the Applicable Laws.

 

This
opinion is furnished by us at the request of the Company and may be relied upon by the Purchasers only in connection with
the transactions contemplated by the Agreement. This opinion may not be used or relied upon by the Purchasers for any other
purpose or by any other person, nor may copies be delivered to any other person, without in each instance our prior
written consent.

 

This
opinion is expressly limited to the matters set forth above and we render no opinion, whether by implication or otherwise, as
to any other matters. We assume no obligation to update or supplement this opinion to reflect any facts or circumstances that
arise after the date of this opinion and come to our attention, or any future changes in laws.

 

	 	Very
truly yours.
	 	 
	 	 
	 	Greenberg
Traurig LLP

 

    87

     

    

 

[FORM
OF LEGAL OPINION]

 

August
__, 2017       

 

	TO:	The Purchasers identified on Schedule A hereto:

 

We
are acting as Israeli counsel to P.V. Nano Cell Ltd., a company formed under the laws of the State of Israel (the “Company”).
The Company was represented by U.S. counsel, in connection with the offer and sale by the Company of convertible notes (the “Notes”)
in the principal amount of US$333,333 to the Purchasers identified on Schedule A hereto (each, including their successors and
permitted assigns, a “Purchaser” and collectively, the “Purchasers”), and Ordinary Share Purchase
Warrants (“Warrants”), pursuant to the Securities Purchase Agreement (the “Agreement”) by
and between the Company and the Purchasers entered into at or about the date hereof. Capitalized terms used herein and not otherwise
defined shall have the meaning assigned to them in the Agreement. The Agreement, and the documents listed below are hereinafter
collectively referred to as the “Documents.”

 

This
opinion letter (this “Opinion”) is given in accordance with the Agreement. In rendering this Opinion, we have
examined the following documents:

 

(a) the
Articles of Association of the Company;

(b) the
Agreement;

(c) the
Form of Note;

(d) the
Form of Ordinary Share Purchase Warrants; and

(e) the
minutes of the action of the Company’s Board of Directors.

 

In
rendering this Opinion, we have, with your permission, assumed: (a) the authenticity of all documents submitted to us as originals;
(b) the conformity to the originals of all documents submitted to us as copies; (c) the genuineness of all signatures; (d) the
legal capacity of natural persons; (e) the truth, accuracy and completeness of the information, factual matters, representations
and warranties contained in all of such documents; (f) the due authorization, execution and delivery of all such documents by
each Purchaser, and the legal, valid and binding effect thereof on Purchaser; and (g) that the Company and the Purchasers will
act in accordance with their respective representations and warranties, as set forth in the Documents.

 

As
to any facts material to this Opinion we did not independently establish or verify, we have relied upon statements, representations
and certificates of officers and other representatives of the Company and others. Any reference to "our knowledge" or
"knowledge" or any variation thereof shall mean the actual knowledge of the attorneys in this firm who have brought
to the attention of the Company the existence or absence of any facts which would contradict our opinions set forth below. We
have not undertaken any independent investigation to determine the existence or absence of such facts, and no inference as to
our knowledge of the existence or absence of such facts should be drawn from the fact of our representation of the Company. There
is no assurance that all material facts were disclosed to us or that our familiarity with the Company is such that we necessarily
recognized the materiality of such facts as were disclosed to us and we have relied to a large extent upon the statements of representatives
of the Company as to the materiality of such facts.

 

    88

     

    

 

We
are members of the bar of the State of Israel. We express no opinion as to the laws of any jurisdiction other than Israel, and
despite anything to the contrary in the Documents we assumed for the purpose of this Opinion that the Documents are governed solely
by Israeli law. We express no opinion with respect to the effect or application of any other laws. Special rulings of authorities
administering any of such laws or opinions of other counsel have not been sought or obtained by us in connection with rendering
the opinions expressed herein.

 

1.The
Company is duly incorporated and validly exists under the laws of the State of Israel, is qualified to do business in
Israel, and has the requisite corporate power and authority to conduct its businesses, and to own, lease and operate its
properties in Israel.

 

2.The
Company has the requisite corporate power and authority to execute, deliver and perform its obligations under the
Documents. The Documents, and the issuance of the Notes, Warrants and the reservation and issuance of Ordinary Shares
issuable upon conversion of the Notes and exercise of the Warrants have been (a) duly approved by the exiting Board of
Directors of the Company, as required, except that the Company did not appoint External Directors and we do not express any
opinion with respect to the implications of such non-appointment; and (b) the Securities, when issued pursuant to the
Agreement and upon delivery, subject to the Purchasers compliance with their obligations under the Documents shall be validly
issued and outstanding, fully paid and non-assessable.

 

3.The
execution, delivery and performance of the Documents by the Company and the consummation of the transactions
contemplated thereby, do not:

 

(a) Violate
the provisions of the Articles of Association of the Company; or

 

(b) To
our knowledge, violate any judgment, decree, order or award of any court binding upon the Company in Israel.

 

4.The
approval of the transactions described in the Documents by the general meeting of the shareholders of the Company, is not
required.

 

The
opinions expressed above are specifically subject to the following limitations, exceptions, qualifications and assumptions:

 

A. The
effect of bankruptcy, insolvency, reorganization, moratorium and other similar laws relating to or affecting the relief of debtors
or the rights and remedies of creditors generally, including without limitation the effect of statutory or other law regarding
fraudulent conveyances and preferential transfers.

 

B. Limitations
imposed by state law, federal law or general equitable principles upon the specific enforceability of any of the remedies, covenants
or other provisions of any applicable agreement and upon the availability of injunctive relief or other equitable remedies, regardless
of whether enforcement of any such agreement is considered in a proceeding in equity or at law.

 

C. This
Opinion is based on facts existing on the date hereof. We assume no obligation to advise you of facts, circumstances, events or
developments which after the date hereof may be brought to our attention and which may alter, affect or modify our opinions.

 

D. We
express no opinion as to any laws other than the laws of the State of Israel which are in force as of the date hereof and we
have not, for the purpose of giving this Opinion, made any investigation of the laws of any other jurisdiction. In
addition, we express no opinion as to any documents, agreements or arrangements other than those subject to the laws of the
State of Israel.

 

    89

     

    

 

E. We
render no opinion in relation to any representation or warranty made or given in the Agreement by any of the parties thereto,
or by any other person, without limitation, of the opinion stated herein.

 

F. This
Opinion is subject to and qualified by limitations and constraints, and we make no opinion as to the effect, of: (i) the possible
unavailability of specific performance, injunctive relief or other equitable remedies, whether considered in a proceeding in equity
or at law; (ii) the possible voidance, or revision by ruling of a court, of any provision which is held to be unlawful due to
public policy considerations; (iii) the effect of any law or regulation relating to taxes, antitrust or securities laws.

 

This
Opinion shall be governed by and construed according to the laws of the State of Israel only, without regard to the conflicts
of law provisions thereof. Any legal proceeding arising under or in connection with this Opinion may be brought only in a competent
court in the Haifa district, which shall have sole and exclusive jurisdiction with respect to any such legal proceeding.

 

This
Opinion is rendered as of the date first written above, is solely for your benefit in connection with the closing of the Agreement
occurring today, and may not be relied upon or used by, circulated, quoted, or referred to nor may any copies hereof by delivered
to any other person without our prior written consent. We disclaim any obligation to update this Opinion or to advise you of facts,
circumstances, events or developments which hereafter may be brought to our attention and which may alter, affect or modify the
opinions expressed herein.

 

Very
truly yours,

 

    90

     

    

 

SCHEDULE
A

 

	PURCHASERS	 	PURCHASE PRICE	 	PRINCIPAL AMOUNT OF NOTE	 	WARRANTS	 
	Alpha Capital Anstalt	 	USD 300,000	 	US$333,333	 	 	333,333	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 

 

    91

     

    

 

EXHIBIT

 

 

 

UNITED
STATES

SECURITIES
AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM
6-K

 

Report
of Foreign Private Issuer Pursuant to Rule 13a-16 or 15d-16

Under the Securities Exchange Act of 1934

 

For
the Month of August 2017

 

333-206723

(Commission
File Number)

 

P.V.
Nano Cell Ltd.

(Exact
name of Registrant as specified in its charter)

 

8
Hamasger Street

Migdal
Ha’Emek, Israel 2310102 

(Address of principal executive offices)

 

Indicate
by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

 

Form
20-F ☒  Form 40-F ☐

 

Indicate
by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):
_____

 

Indicate
by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):
_____

 

 

 

    92

     

    

 

On
August [●], 2017, P.V. Nano Cell Ltd. (the “Issuer”) entered into a definitive securities purchase agreement
(the “Agreement”) with certain purchasers identified on the signature pages thereto (each, including their successors
and permitted assigns, a “Purchaser” and collectively, the “Purchasers), pursuant to which the Issuer agreed
to issue and sell to each Purchaser, and each Purchaser, agreed to purchase convertible promissory notes (the “Notes”)
in the an aggregate principal amount of US$333,333, along with Ordinary Share Purchase Warrants of the Company (the “Warrants”).

 

The
Notes include a 10% original issue discount on the consideration paid and bear interest at 6%. The Notes mature on October [ ],
2018, and may be converted by each Purchaser following the issuance of the Notes, subject to the terms of the Notes. The Issuer
may require mandatory conversion of the Notes, subject to the terms of the Notes.

 

The
Warrants delivered to each Purchaser permit such Purchaser to purchase during the term of the Warrant, a number of Ordinary Shares
as may be purchased by the full amount of such Purchaser’s Note as of the Closing Date, at a price of $1.20 per Ordinary
Share.

 

Capitalized
terms not defined herein shall have the meaning assigned to them in the Agreement. Copies of the Agreement and all exhibits and
schedules thereto and the press release announcing the Agreement are attached hereto as Exhibits 10.1 and 99.1.

 

    93

     

    

 

Exhibit
Index

 

	Exhibit No.	 	Description
	 	 	 
	10.1	 	[Form
of Securities Purchase Agreement dated August [●], 2017 by and between P.V. Nano Cell Ltd.
and each purchaser identified on the signature pages thereto]
	 	 	 
	99.1	 	Press
release dated August [●], 2017

 

    94

     

    

 

SIGNATURES

 

Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.

 

	 	P.V. Nano Cell Ltd.
	 	 	 
	Date:
August [●], 2017	By:	 
	 	 	Name:
Dr. Fernando de la Vega
	 	 	Title: Chief Executive Officer

 

    95

     

    

 

EXHIBIT
E

 

LOCK-UP
AGREEMENT

 

August
__, 2017

 

[Purchaser]

 

Sir:

 

The
undersigned signatory of this Lock-Up agreement (the “Lock-Up Agreement”) understands that certain Purchasers
(the “Purchasers”) propose to enter into a Securities Purchase Agreement (as the same may be amended from time to
time, the “Purchase Agreement”) with P.V. Nano Cell Ltd., an Israeli Company (PVN), and in connection therewith acquire
a convertible Note and Ordinary Share Purchase Warrants from PVN. Capitalized terms used but not otherwise defined herein shall
have the respective meanings ascribed to such terms in the Purchaser Agreement.

 

As
a material inducement to the Purchasers to enter into the Purchase Agreement and to consummate the contemplated transactions,
and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the undersigned hereby
irrevocably agrees that, subject to the exceptions set forth herein, without the prior written consent of a Majority in Interest,
the undersigned will not, during the period commencing upon the Closing Date and ending on the date that is 270 days after the
Effective Date (the “Restricted Period”):

 

		(i)	offer,
                                         pledge, sell, contract to sell, sell any option, warrant or contract to purchase, purchase
                                         any option, warrant or contract to sell, grant any option, right or warrant to purchase,
                                         or otherwise transfer or dispose of, directly or indirectly, any PVN Ordinary Shares
                                         or any securities convertible into or exercisable or exchangeable for PVN Ordinary Shares
                                         (including without limitation, Ordinary Shares or such other securities which may be
                                         deemed to be beneficially owned by the undersigned in accordance with the rules and regulations
                                         of the Commission and securities of PVN which may be issued upon exercise of a stock
                                         option or warrant) or any other PVN Ordinary shares owned by the undersigned except as
                                         specifically excluded hereunder, in each case, that are currently or hereafter owned
                                         of record or beneficially (including holding as a custodian) by the undersigned as described
                                         on the signature page hereto and identifies and describes all of the foregoing adhering
                                         to the undersigned (collectively, the “Undersigned’s Shares”),
                                         or publicly disclose the intention to make any such offer, sale, pledge, grant, transfer
                                         or disposition;

 

		(ii)	enter
                                         into any swap, short sale, hedge or other agreement that transfers, in whole or in part,
                                         any of the economic consequences of ownership of the Undersigned’s Shares regardless
                                         of whether any such transaction described in clause (i) above or this clause (ii) is
                                         to be settled by delivery of PVN Ordinary Shares or such other securities, in cash or
                                         otherwise; or

 

		(iii)	make
                                         any demand for or exercise any right with respect to the registration of any PVN Ordinary
                                         Shares or any security convertible into or exercisable or exchangeable for PVN Ordinary
                                         Shares.

 

    96

     

    

 

The
restrictions and obligations contemplated by this Lock-Up Agreement shall not apply to:

 

(a) transfers
of the Undersigned’s Shares:

 

		(i)	if
                                         the undersigned is a natural person, (A) to any person related to the undersigned
                                         by blood or adoption who is an immediate family member of the undersigned, or by marriage
                                         or domestic partnership (a “Family Member”), or to a trust formed
                                         for the benefit of the undersigned or any of the undersigned’s Family Members,
                                         (B) to the undersigned’s estate, following the death of the undersigned, by will,
                                         intestacy or other operation of law, (C) as a bona fide gift to a charitable organization,
                                         (D) by operation of law pursuant to a qualified domestic order or in connection with
                                         a divorce settlement or (E) to any partnership, corporation or limited liability company
                                         which is controlled by the undersigned and/or by any such Family Member(s);

 

		(ii)	if
                                         the undersigned is a corporation, partnership or other business entity, (A) to
                                         another corporation, partnership or other business entity that is an affiliate (as defined
                                         under Rule 12b-2 of the Exchange Act) of the undersigned, including investment funds
                                         or other entities under common control or management with the undersigned, (B) as a distribution
                                         or dividend to equity holders (including, without limitation, general or limited partners
                                         and members) of the undersigned (including upon the liquidation and dissolution of the
                                         undersigned pursuant to a plan of liquidation approved by the undersigned’s equity
                                         holders) or (C) as a bona fide gift to a charitable organization; or

 

		(iii)	if
                                         the undersigned is a trust, to any grantors or beneficiaries of the trust;

 

provided
that, in the case of any transfer or distribution pursuant to this clause (a), such transfer is not for value and
each donee, heir, beneficiary or other transferee or distributee shall sign and deliver to Purchasers a Lock-Up agreement in the
form of this Lock-Up Agreement with respect to the PVN Ordinary Shares or such other securities that have been so transferred
or distributed;

 

(b) the
exercise of an option (including a net or cashless exercise of an option) to purchase PVN Ordinary Shares, and any
related transfer of PVN Ordinary Shares to PVN for the purpose of paying the exercise price of such options or any related
transfer of PVN Ordinary Shares for paying taxes (including estimated taxes) due as a result of the exercise of such options
(or the disposition to PVN of any shares of restricted stock granted pursuant to the terms of any employee benefit plan or
restricted stock purchase agreement); provided that, for the avoidance of doubt, the underlying PVN
Ordinary Shares shall continue to be subject to the restrictions on transfer set forth in this Lock-Up Agreement;

 

(c) transfers
by the undersigned of PVN Ordinary Shares purchased by the undersigned on the open market following the Closing Date;
or

 

    97

     

    

 

(d) transfers
or distributions pursuant to a bona fide third party tender offer, merger, consolidation or other similar transaction
made to all holders of PVN Ordinary Shares involving a change of control of PVN (including entering into any lock-up, voting
or similar agreement pursuant to which the undersigned may agree to transfer, sell, tender or otherwise dispose of PVN
Ordinary Shares (or any security convertible into or exercisable for PVN Ordinary Shares), or voting any PVN Ordinary Shares
in favor of any such transaction or taking any other action in connection with any such transaction), provided that the
restrictions set forth in this Lock-Up Agreement shall continue to apply to the Undersigned's Shares should such tender
offer, merger, consolidation or other transaction not be completed;

 

and
provided, further, that, with respect to each of (a) and (b) above, no filing by any party (including any
donor, donee, transferor, transferee, distributor or distributee) under the Exchange Act (other than (i) a filing at any time
on a Form 5 or (ii) a filing after the expiration of the Restricted Period on a Schedule 13D or Schedule 13G (or Schedule 13D/A
or Schedule 13G/A)), or other public announcement shall be required or shall be made voluntarily in connection with such transfer
or disposition during the Restricted Period (other than in respect of a required filing under the Exchange Act in connection with
the exercise of an option to purchase PVN Ordinary Shares following such individual’s termination of service relationship
(including service as a director) with PVN that would otherwise expire during the Restricted Period, provided that reasonable
notice shall be provided to PVN prior to any such filing).

 

Any
attempted transfer in violation of this Lock-Up Agreement will be of no effect and null and void, regardless of whether the purported
transferee has any actual or constructive knowledge of the transfer restrictions set forth in this Lock-Up Agreement, and will
not be recorded on the share register of PVN. In furtherance of the foregoing, the undersigned and PVN agree that PVN and any
duly appointed transfer agent for the registration or transfer of the securities described herein are hereby authorized to and
will decline to make any transfer of securities if such transfer would constitute a violation or breach of this Lock-Up Agreement.
PVN will cause the legend set forth below, or a legend substantially equivalent thereto, to be placed upon any certificate(s)
or other documents, ledgers or instruments evidencing the undersigned’s ownership of PVN Ordinary Shares:

 

THE
SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO AND MAY ONLY BE TRANSFERRED IN COMPLIANCE WITH A LOCK-UP AGREEMENT, A COPY
OF WHICH IS ON FILE AT THE PRINCIPAL OFFICE OF PVN.

 

The
undersigned hereby represents and warrants that the undersigned has full power and authority to enter into this Lock-Up Agreement.
All authority herein conferred or agreed to be conferred and any obligations of the undersigned shall be binding upon the successors,
assigns, heirs or personal representatives of the undersigned.

 

The
undersigned and PVN acknowledge that this Lock-Up Agreement is being entered into for the benefit of the Purchasers who are parties
to the Purchase Agreement and their permitted assigns, and who are hereby made third party beneficiaries of this Lock-Up Agreement.
This Lock-Up Agreement may be enforced by the Purchasers and may not be amended without the consent of the Majority in Interest,
which consent may be withheld for any reason.

 

The
undersigned acknowledges and agrees that PVN is required to enforce the terms and provisions of this Lock-Up Agreement for the
benefit of the Purchasers.

 

The
undersigned understands that if the Purchaser Agreement is terminated for any reason, or if the Closing does not occur, the undersigned
shall automatically be released from all restrictions and obligations under this Lock-Up Agreement. The undersigned understands
that the Purchasers are proceeding with the transactions described in the Purchase Agreement in reliance upon this Lock-Up Agreement.

 

    98

     

    

 

Any
and all remedies herein expressly conferred upon the Purchasers will be deemed cumulative with and not exclusive of any other
remedy conferred hereby, or by law or equity, and the exercise by the Purchasers of any one remedy will not preclude the exercise
of any other remedy. The undersigned agrees that irreparable damage would occur to the Purchasers in the event that any provision
of this Lock-Up Agreement were not performed in accordance with its specific terms or were otherwise breached. It is accordingly
agreed that the Purchasers shall be entitled to an injunction or injunctions to prevent breaches of this Lock-Up Agreement and
to enforce specifically the terms and provisions hereof in any court of the United States including but not limited to Federal
and State courts in New York City, New York or any state having jurisdiction, this being in addition to any other remedy to which
the Purchasers are entitled at law or in equity, and the undersigned waives any bond, surety or other security that might be required
of the Purchasers with respect thereto.

 

This
Agreement shall be governed by and construed in accordance with the laws of the State of New York without regard to principles
of conflicts of laws. Any action concerning the transactions contemplated by this Agreement shall be brought only in the state
courts of New York or in the federal courts located in the state of New York. The undersigned and PVN hereby irrevocably waive
any objection to jurisdiction and venue of any action instituted hereunder and shall not assert any defense based on lack of jurisdiction
or venue or based upon forum non conveniens. The parties executing this Lock-Up Agreement and other agreements referred to herein
or delivered in connection herewith agree to submit to the in personam jurisdiction of such courts and hereby irrevocably waive
trial by jury. The prevailing party shall be entitled to recover from the other party its reasonable attorney’s fees and
costs. In the event that any provision of this Lock-Up Agreement or any other agreement delivered in connection herewith is invalid
or unenforceable under any applicable statute or rule of law, then such provision shall be deemed inoperative to the extent that
it may conflict therewith and shall be deemed modified to conform with such statute or rule of law. Any such provision which may
prove invalid or unenforceable under any law shall not affect the validity or enforceability of any other provision of any agreement.
Notices hereunder shall be given in the same manner as set forth in the Purchase Agreement. Each party hereby irrevocably waives
personal service of process and consents to process being served in any suit, action or proceeding in connection with this Lock-Up
Agreement or any other Transaction Document by mailing a copy thereof via registered or certified mail or overnight delivery (with
evidence of delivery) to such party at the address in effect for notices to it under this Lock-Up Agreement and agrees that such
service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to
limit in any way any right to serve process in any other manner permitted by law. The undersigned irrevocably appoints PVN its
true and lawful agent for service of process upon whom all processes of law and notices may be served and given in the manner
described above; and such service and notice shall be deemed valid personal service and notice upon the undersigned with the same
force and validity as if served upon the undersigned.

 

This
Lock-Up Agreement may be executed in several counterparts, each of which shall be deemed an original and all of which shall constitute
one and the same instrument. The exchange of a fully executed Lock-Up Agreement (in counterparts or otherwise) by PVN, the Purchasers
and the undersigned by facsimile or electronic transmission in .pdf format shall be sufficient to bind such parties to the terms
and conditions of this Lock-Up Agreement.

 

(Signature
Page Follows)

 

    99

     

    

 

Signature
Page

 

	 	Print Name of Stockholder:	 
	 	 	 
	 	Signature (for individuals):	 

 

	 	

                    Signature
                    (for entities):

	 	 	 	 
	 	By:	 
	 	 	Name:	 
	 	 	Title:	 

 

Number
of Ordinary Shares directly owned by Stockholder:__________________

 

Number
of Ordinary Shares Equivalents directly owned by Stockholder: _________________

 

Consisting
of______________________________________________________________

 

____________________________________________________________________________________________ 

 

Number
of Ordinary Shares beneficially owned by Stockholder:___

 

Presently
held as follows: __ ____________________________

 

____________________________________________________________________________________________ 

 

Number
of Ordinary Shares Equivalents beneficially owned by Stockholder: ____

 

Consisting
of __________________________________________________________________________________

 

_____________________________________________________________________________________________ 

 

Excluded
Securities: ______________________________________________

 

_____________________________________________________________________________________________

 

	 	AGREED, APPROVED AND ACKNOWLEDGED:
    
	 	 
	 	P.V. NANO CELL LTD.
	 	 	 
	 	By:	 
	 	 	Name: Dr. Fernando de la Vega
	 	 	Title: CEO

 

[Signature
Page to Lock-Up Agreement]

 

    100

     

    

 

EXHIBIT
F

 

ACCREDITED
INVESTOR QUESTIONNAIRE 

IN CONNECTION WITH INVESTMENT IN CONVERTIBLE NOTE 

P.V. NANO CELL LTD., 

A CORPORATION FORMED UNDER THE LAWS OF THE STATE OF ISRAEL 

PURSUANT TO SECURITIES PURCHASE AGREEMENT DATED AUGUST ___, 2017

 

	TO: 	P.V. Nano Cell Ltd.
	 	c/o
Greenberg Traurig, P.A.
	 	333
S.E. 2nd Avenue 
	 	Miami, FL 33131 
	 	Fax: 305-961-5756

 

INSTRUCTIONS

 

PLEASE
ANSWER ALL QUESTIONS. If the appropriate answer is “None” or “Not Applicable”, so state. Please print
or type your answers to all questions. Attach additional sheets if necessary to complete your answers to any item.

 

Your
answers will be kept strictly confidential at all times. However, P.V. Nano Cell Ltd. (the “Company”) may present
this Questionnaire to such parties as it deems appropriate in order to assure itself that the offer and sale of securities of
the Company will not result in a violation of the registration provisions of the Securities Act of 1933, as amended, or a violation
of the securities laws of any state.

 

1. Please
provide the following information:

 

Name:

 

Name
of additional purchaser: ___________________________________________________________________

(Please
complete information in Question 5)

 

Date
of birth, or if other than an individual, year of organization or incorporation:

 

 

 

 

2. Residence
address, or if other than an individual, principal office address:

 

 

 

Telephone
number:

 

Social
Security Number:

 

Taxpayer
Identification Number:

 

    101

     

    

 

3. Business
address:

 

 

 

 

 

Business
telephone number:

 

4.Send
mail
to:   Residence
______   Business ________

 

5. With
respect to tenants in common, joint tenants and tenants by the entirety, complete only if information differs from that above:

 

Residence
address:

 

 

 

 

Telephone
number:

 

Social
Security Number:

 

Taxpayer
Identification Number:

 

Business
address:

 

 

 

 

Business
telephone number:

 

Send
Mail
to:      Residence
________
      Business _________

 

6. Please
describe your present or most recent business or occupation and indicate such information as the nature of your employment, how
long you have been employed there, the principal business of your employer, the principal activities under your management or
supervision and the scope (e.g. dollar volume, industry rank, etc.) of such activities:

 

    102

     

    

 

7.Please
state whether you (i) are associated with or affiliated with a member of the Financial Industry
Regulatory Association, Inc. (“FINRA”), (ii) are an owner of stock or other securities of FINRA member (other than
stock or other securities purchased on the open market), or (iii) have made a subordinated loan to any FINRA member:

 

	 	 	 	 	 
	 	Yes	 	No	 

 

If
you answered yes to any of (i) – (iii) above, please indicate the applicable answer and briefly describe the facts below:

 

 

 

 

 

 

8A.Applicable
to Individuals ONLY. Please answer the following questions concerning your financial
condition as an Accredited Investor (within the meaning of Rule 501 of Regulation D). If the purchaser is more than one individual,
each individual must initial an answer where the question indicates a “yes” or “no” response and must
answer any other question fully, indicating to which individual such answer applies. If the purchaser is purchasing jointly with
his or her spouse, one answer may be indicated for the couple as a whole:

 

8.1
Does your net worth* (or joint net worth with your spouse) exceed $1,000,000?

 

	 	 	 	 	 
	 	Yes	 	No	 

 

8.2 Did
you have an individual income** in excess of $200,000 or joint income together with your spouse
in excess of $300,000 in each of the two most recent years and do you reasonably expect to reach the same income level in the
current year?

 

	 	 	 	 	 
	 	Yes	 	No	 

 

8.3 Are
you an executive officer of the Company?

 

	 	 	 	 	 
	 	Yes	 	No	 

 

*
For purposes hereof, net worth shall be deemed to include ALL of your assets, liquid or illiquid MINUS any liabilities.

 

**
For purposes hereof, the term “income” is not limited to “adjusted gross income” as that term is defined
for federal income tax purposes, but rather includes certain items of income which are deducted in computing “adjusted gross
income”. For investors who are salaried employees, the gross salary of such investor, minus any significant expenses personally
incurred by such investor in connection with earning the salary, plus any income from any other source including unearned income,
is a fair measure of “income” for purposes hereof. For investors who are self-employed, “income” is generally
construed to mean total revenues received during the calendar
year minus significant expenses incurred in connection with earning such revenues.

 

    103

     

    

 

8.B Applicable
to Corporations, Partnerships, Trusts, Limited Liability Companies and other Entities ONLY:

 

The
purchaser is an Accredited Investor because the purchaser falls within at least one of the following categories (Check all appropriate
lines):

 

	 	____	 	(i) a bank as defined in Section 3(a)(2) of the Act or a savings and loan association or other institution as defined in Section 3(a)(5)(A) of the Act whether acting in its individual or fiduciary capacity;
	 	 	 	 
	 	____	 	(ii) a broker-dealer registered pursuant to Section 15 of the Securities Exchange Act of 1934, as amended;
	 	 	 	 
	 	____	 	(iii) an insurance company as defined in Section 2(13) of the Act;
	 	 	 	 
	 	____	 	(iv) an investment company registered under the Investment Company Act of 1940, as amended (the “Investment Act”) or a business development company as defined in Section 2(a)(48) of the Investment Act;
	 	 	 	 
	 	____	 	(v)  a Small Business Investment Company licensed by the U.S. Small Business Administration under Section 301(c) or (d) of the Small Business Investment Act of 1958, as amended;
	 	 	 	 
	 	____	 	(vi) a plan established and maintained by a state, its political subdivisions, or any agency or instrumentality of a state or its political subdivisions, for the benefit of its employees, where such plan has total assets in excess of $5,000,000;
	 	 	 	 
	 	____	 	(vii) an employee benefit plan within the meaning of Title 1 of the Employee Retirement Income Security Act of 1974, as amended (the “Employee Act”), where the investment decision is made by a plan fiduciary, as defined in Section 3(21) of the Employee Act, which is either a bank, savings and loan association, insurance company, or registered investment adviser, or an employee benefit plan that has total assets in excess of $5,000,000, or a self-directed plan the investment decisions of which are made solely by persons that are Accredited Investors;
	 	 	 	 
	 	____	 	(viii) a private business development company, as defined in Section 202(a)(22) of the Investment Advisers Act of 1940, as amended;
	 	 	 	 
	 	____	 	(ix) an organization described in Section 501(c)(3) of the Internal Revenue Code, a corporation, a Massachusetts or similar business trust, or a partnership, not formed for the specific purpose of acquiring the securities offered, with total assets in excess of $5,000,000;
	 	 	 	 
	 	____	 	(x) a trust, with total assets in excess of $5,000,000, not formed for the specific purpose of acquiring the securities offered, whose purchase is directed by a “sophisticated” person, as described in Rule 506(b)(2)(ii) promulgated under the Act, who has such knowledge and experience in financial and business matters that he or she is capable of evaluating the merits and risks of the prospective investment;
	 	 	 	 
	 	____	 	(xi) an entity in which all of the equity investors are persons or entities described above (“Accredited Investors”). ALL EQUITY OWNERS MUST COMPLETE “EXHIBIT A” ATTACHED HERETO.

 

    104

     

    

 

9.A Do
you have sufficient knowledge and experience in financial and business matters so as to be capable of evaluating the
merits and risks associated with investing in the Company?

 

	 	 	 	 	 
	 	Yes	 	No	 

 

ANSWER
QUESTION 9B ONLY IF THE ANSWER TO QUESTION 9A WAS “NO.”

 

9.B If
the answer to Question 9A was “NO,” do you have a financial or investment adviser (a) that is acting
in the capacity as a purchaser representative and (b) who has sufficient knowledge and experience in financial and business matters
so as to be capable of evaluating the merits and risks associated with investing in the Company?

 

	 	 	 	 	 
	 	Yes	 	No	 

 

If
you have a financial or investment adviser(s), please identify each such person and indicate his or her business address and telephone
number in the space below. (Each such person must complete, and you must review and acknowledge, a separate Purchaser Representative
Questionnaire which will be supplied at your request).

 

 

 

 

 

 

 

10. You
have the right, will be afforded an opportunity, and are encouraged to investigate the Company
and review relevant factors and documents pertaining to the officers of the Company, and the Company and its business and to ask
questions of a qualified representative of the Company regarding this investment and the properties, operations, and methods of
doing business of the Company.

 

Have
you or has your purchaser representative, if any, conducted any such investigation, sought such documents or asked questions of
a qualified representative of the Company regarding this investment and the properties, operations, and methods of doing business
of the Company?

 

	 	 	 	 	 
	 	Yes	 	No	 

 

If
so, briefly describe:

 

 

 

 

 

If
so, have you completed your investigation and/or received satisfactory answers to your questions?

 

	 	 	 	 	 
	 	Yes	 	No	 

 

    105

     

    

11. Do you understand the nature of an investment in the
Company and the risks associated with such an
investment?

 

	 	 	 	 	 
	 	Yes	 	No	 

 

12. Do
you understand that there is no guarantee of any financial return on this investment and that you will be exposed to the risk
of losing your entire investment?

 

	 	 	 	 	 
	 	Yes	 	No	 

 

13. Do
you understand that this investment is not liquid?

 

	 	 	 	 	 
	 	Yes	 	No	 

 

14. Do
you have adequate means of providing for your current needs and personal contingencies in view of the fact that this is not a
liquid investment?

 

	 	 	 	 	 
	 	Yes	 	No	 

 

15. Are
you aware of the Company’s business affairs and financial condition, and have you acquired all such information about the
Company as you deem necessary and appropriate to enable you to reach an informed and knowledgeable decision to acquire the Interests?

 

	 	 	 	 	 
	 	Yes	 	No	 

 

16. Do
you have a “pre-existing relationship” with the Company or any of the officers of the Company?

 

	 	 	 	 	 
	 	Yes	 	No	 

 

(For
purposes hereof, “pre-existing relationship” means any relationship consisting of personal or business contacts of
a nature and duration such as would enable a reasonably prudent investor to be aware of the character, business acumen, and general
business and financial circumstances of the person with whom such relationship exists.)

 

If
so, please name the individual or other person with whom you have a pre-existing relationship and describe the relationship:

 

	 	 
	 	 
	 	 
	 	 

 

    106

     

    

 

17.
Exceptions to the representations and warranties made in Section 3.2 of the Securities Purchase Agreement (if no exceptions, write
“none” – if left blank, the response will be deemed to be “none”):______________________________

 

_____________________________________________________________________________________________

 

Dated:________________,
2017

 

If
purchaser is one or more individuals (all individuals must sign):

 

(Type
or print name of prospective purchaser)

 

Signature
of prospective purchaser

 

Social
Security Number

 

(Type
or print name of additional purchaser)

 

Signature
of spouse, joint tenant, tenant in common or other signature, if required

 

Social
Security Number

 

    107

     

    

 

Annex
A

 

Definition
of Accredited Investor

 

The
securities will only be sold to investors who represent in writing in the Securities Purchase Agreement that they are Accredited
Investors, as defined in Regulation D, Rule 501 under the Act which definition is set forth below:

 

1. A
natural person whose net worth, or joint net worth with spouse, at the time of purchase exceeds $1 million (excluding home); or

 

2. A
natural person whose individual gross income exceeded $200,000 or whose joint income with that person’s spouse exceeded
$300,000 in each of the last two years, and who reasonably expects to exceed such income level in the current year; or

 

3. A
trust with total assets in excess of $5 million, not formed for the specific purpose of acquiring the securities offered, whose
purchase is directed by a sophisticated person described in Regulation D; or

 

4. A
director or executive officer of the Company; or

 

5. The
investor is an entity, all of the owners of which are Accredited Investors; or

 

6. (a)
bank as defined in Section 3(a)(2) of the Act, or any savings and loan association or other institution as defined in Section
3(a)(5)(A) of the Act, (b) any broker or dealer registered pursuant to Section 15 of the Securities Exchange Act of 1934, (c)
an insurance Company as defined in Section 2(13) of the Act, (d) an investment Company registered under the Investment Company
Act of 1940 or a business development Company as defined in Section 2(a)(48) of such Act, (e) a Small Business Investment Company
licensed by the United States Small Business Administration under Section 301(c) or (d) of the Small Business Investment Act of
1958, (f) an employee benefit plan established and maintained by a state, its political subdivisions, or any agency or instrumentality
of a state or its political subdivisions, if such plan has total assets in excess of $5 million, (g) an employee benefit plan
within the meaning of Title I of the Employee Retirement Income Securities Act of 1974, and the employee benefit plan has assets
in excess of $5 million, or the investment decision is made by a plan fiduciary, as defined in Section 3(21) of such act, that
is either a bank, savings and loan institution, insurance Company, or registered investment advisor, or, if a self-directed plan,
with an investment decisions made solely by persons that are Accredited Investors, (h) a private business development company
as defined in Section 202(a)(22) of the Investment Advisers Act of 1940, or (i) an organization described in Section 501(c)(3)
of the Internal Revenue code, corporation, Massachusetts or similar business trust, or partnership, not formed for the specific
purpose of acquiring the securities offered, with assets in excess of $5 million.

 

    108

     

    

 

EXHIBIT
“A” TO ACCREDITED INVESTOR QUESTIONNAIRE

 

ACCREDITED
CORPORATIONS, PARTNERSHIPS, LIMITED LIABILITY COMPANIES, TRUSTS OR OTHER ENTITIES INITIALING QUESTION 8B(xi) MUST PROVIDE THE
FOLLOWING INFORMATION.

 

I
hereby certify that set forth below is a complete list of all equity owners in______________________ [NAME OF ENTITY],
a [TYPE OF ENTITY] formed pursuant to the laws of the State of. I also certify that EACH SUCH OWNER HAS INITIALED
THE SPACE OPPOSITE HIS OR HER NAME and that each such owner understands that by initialing that space he or she is
representing that he or she is an accredited individual investor satisfying the test for accredited individual
investors indicated under “Type of Accredited Investor.”

 

	 	 
	 	 
	 	signature
of authorized corporate officer, general partner or trustee

 

	Name
    of Equity Owner	 	Type of Accredited Investor1

 

1. 

 

2. 

 

3. 

 

4. 

 

5. 

 

6. 

 

7. 

 

8. 

 

9. 

 

10. 

 

 

 

 

1 Indicate
which Subparagraph of 8.1 - 8.3 the equity owner satisfies.

 

 

109Exhibit 4.21

 

SECURITIES
PURCHASE AGREEMENT

 

This
Securities Purchase Agreement (this “Agreement”) is dated as of _______ ___, 2017, between P.V. Nano Cell Ltd.,
a corporation formed under the laws of the State of Israel (the “Company”), and each purchaser identified on
the signature pages hereto (each, including its successors and permitted assigns, a “Purchaser” and collectively,
the “Purchasers”).

 

WHEREAS,
subject to the terms and conditions set forth in this Agreement and pursuant to Section 4(a)(2) of the Securities Act of 1933,
as amended (the “Securities Act”), and Rule 506 promulgated thereunder, the Company desires to issue and sell
to each Purchaser, and each Purchaser, severally and not jointly, desires to purchase from the Company, securities of the Company
as more fully described in this Agreement (the “Offering”).

 

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

 

ARTICLE
I.

DEFINITIONS

 

1.1 Definitions.
In addition to the terms defined elsewhere in this Agreement: (a) capitalized terms that are not otherwise defined herein have
the meanings given to such terms in the Notes (as defined herein), and (b) the following terms have the meanings set forth in
this Section 1.1:

 

“Acquiring
Person” shall have the meaning ascribed to such term in Section 4.7.

 

“Action”
shall have the meaning ascribed to such term in Section 3.1(j).

 

“Affiliate”
means any Person that, directly or indirectly through one or more intermediaries, controls or is controlled by or is under common
control with a Person, as such terms are used in and construed under Rule 405 under the Securities Act.

 

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

 

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

 

“Closing”
means the closing of the purchase and sale of the Securities pursuant to Section 2.1.

 

“Closing
Date” means the Business Day on which all of the Transaction Documents have been executed and delivered by the applicable
parties thereto, and all conditions precedent to (i) the Purchasers’ obligation to pay the Subscription Amount at such Closing,
and (ii) the Company’s obligations to deliver the Securities to be issued and sold at such Closing, in each case, have been
satisfied or waived, but in no event later than the tenth (10th) Business Day following the date hereof.

 

“Commission”
means the United States Securities and Exchange Commission.

 

    	 	1	 

     

    

 

“Company
Counsel” means, Greenberg Traurig, P.A., 333 S.E. 2nd Avenue, Miami, FL 33131, Attn: Robert L. Grossman,
Esq., facsimile: 305-961-5756, and Primes, Shiloh, Givon, Meir - Law Firm Attn. Meytal Katz, Adv.16 Derech Hayam St., Haifa 3474110,
Israel Tel. +972-4-8388332 Direct. +972-4-6978223 Fax. +972-4-8381401, meytal@pgs-law.co.il

 

“Conversion
Price” shall have the meaning ascribed to such term in the Notes.

 

“Digiflex”
shall mean Digiflex Ltd.

 

“Disclosure
Schedules” means the Disclosure Schedules of the Company delivered concurrently herewith.

 

“Disqualification
Event” shall have the meaning ascribed to such term in Section 3.1(oo).

 

“Effective
Date” means the earliest of the date that (a) a Registration Statement, has been declared effective by the Commission
with respect to all of the Underlying Shares, or (b) (i) all of the Underlying Shares have been sold pursuant to Rule 144, or
(ii) may be sold by the holders thereof pursuant to Rule 144 without the requirement for the Company to be in compliance with
the current public information requirements of Rule 144 and without volume or manner-of-sale restrictions, and (c) Company counsel
has delivered to the Transfer Agent and Purchasers a standing written unqualified opinion acceptable to the Transfer Agent that
resales may then be made by such holders of the Underlying Shares pursuant to an effective Registration Statement or other registration
statement or the exemption described in (b)(ii) above, which opinion shall be in form and substance acceptable to Purchasers.

 

“Equity
Line of Credit” shall have the meaning ascribed to such term in Section 4.13.

 

“Evaluation
Date” shall have the meaning ascribed to such term in Section 3.1(r).

 

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

 

“Exempt
Issuance” means the issuance of (a) Ordinary Shares and options to officers, directors, or employees of the Company,
prior to and after the Closing Date up to the amounts and terms set forth on Schedule 4.13 pursuant to the Stock Option
Plan, (b) except as described below, other securities exercisable or exchangeable for or convertible into Ordinary Shares issued
and outstanding on the date of this Agreement or which the Company is otherwise actually or contingently committed to issue on
the date of this Agreement including securities to be issued in connection with the merger with Digiflex as described in the SEC
Reports as modified by the Disclosure Schedules hereto and to Sunrise or any other broker-dealer involved in the sale of convertible
debt instruments and Ordinary Share purchase warrants to Subsequent Purchasers (as defined in subsection (f) of this paragraph,
provided that such securities and any term thereof have not been amended since the date of this Agreement to increase the number
of such securities or to decrease the issue price, exercise price, exchange price or conversion price of such securities and which
securities and the principal terms thereof are set forth on Schedule 3.1(g), and described in the SEC Reports filed not
later than five (5) days before the Closing Date, (c) securities issued pursuant to acquisitions or strategic transactions approved
by a majority of the disinterested directors of the Company, provided that any such issuance shall only be to a Person (or to
the equity holders of a Person) which is, itself or through its subsidiaries, an operating company or an owner of an asset in
a business synergistic with the business of the Company and shall be intended to provide to the Company substantial additional
benefits in addition to the investment of funds, but shall not include a transaction in which the Company is issuing securities
for the purpose of raising capital or to an entity whose primary business is investing in securities, (d) as otherwise described
on Schedule 3.1(g) as an Exempt Issuance, (e) securities issued or issuable to the Purchasers and their assigns pursuant
to this Agreement, the Notes or the Warrants and other Transaction Documents including without limitation, Section 4.17 herein,
or upon exercise or conversion of any such securities (subject to adjustment for forward and reverse stock splits and the like
that occur after the date hereof), and (f) convertible debt instruments in the principal amount not exceeding US$2,000,000, including
$333,333 of convertible notes and Ordinary Share purchase warrants sold to Alpha Capital Anstalt (the ”Previous Purchaser”)
prior to the date hereof and the Notes and Warrants being sold pursuant to this Agreement, as well as convertible debt instruments
and warrants issued and issuable to other purchasers (“Subsequent Purchasers”) or any Ordinary Shares issued
pursuant to such convertible debt instruments and Ordinary Share purchase warrants on terms in no way more advantageous or preferable
to such other purchasers of Notes and Warrants than the terms of the Offering and Transaction Documents and which issuances will
not be inconsistent with or make burdensome the Company’s compliance with obligations and undertakings to Purchasers herein,
as well as Ordinary Shares issued pursuant to such convertible debt instruments and Ordinary Share purchase warrants previously
sold to the Previous Purchaser (sales of Securities in this Offering and sales of convertible debt instruments and Ordinary Share
purchase warrants to Subsequent Purchasers and previously sold to the Previous Purchaser are hereinafter collectively the “Aggregate
Offering”). The Outstanding Equity Line is not an Exempt Issuance.

 

    	 	2	 

     

    

 

“Exercise
Price” shall have the meaning ascribed to such term in the Warrants.

 

“FCPA”
means the Foreign Corrupt Practices Act of 1977, as amended.

 

“FDA”
shall have the meaning ascribed to such term in Section 3.1(nn).

 

“FDCA”
shall have the meaning ascribed to such term in Section 3.1(nn).

 

“Federal
and State Securities Laws” means the federal securities laws of the United States and the states of the United States,
as applicable.

 

“Form
6-K” shall have the meaning ascribed to such term in Section 4.6.

 

“GAAP”
shall have the meaning ascribed to such term in Section 3.1(h).

 

“G&M”
shall mean Grushko & Mittman, P.C., with offices located at 515 Rockaway Avenue, Valley Stream, New York 11581, Fax: 212-697-3575.

 

“Indebtedness”
shall have the meaning ascribed to such term in Section 3.1(z).

 

“Intellectual
Property Rights” shall have the meaning ascribed to such term in Section 3.1(o).

 

“Issuer
Covered Person” shall have the meaning ascribed to such term in Section 3.1(oo).

 

“Legend
Removal Date” shall have the meaning ascribed to such term in Section 4.1(d).

 

“Lien”
means a lien, charge, pledge, security interest, encumbrance, right of first refusal, preemptive right or other restriction.

 

“Listing
Default” shall have the meaning ascribed to such term in Section 4.11(c).

 

“Lockup
Agreement” means the form of Lockup Agreement annexed hereto as Exhibit D.

 

“Majority
in Interest” shall have the meaning ascribed to such term in Section 5.5.

 

“Material
Adverse Effect” shall have the meaning assigned to such term in Section 3.1(b).

 

“Material
Permits” shall have the meaning ascribed to such term in Section 3.1(m).

 

“Maximum
Rate” shall have the meaning ascribed to such term in Section 5.17.

 

“Money
Laundering Laws” shall have the meaning ascribed to such term in Section 3.1(gg).

 

“Notes”
means the senior secured convertible notes issuable pursuant to this Agreement, in the form of Exhibit A hereto.

 

“OFAC”
shall have the meaning ascribed to such term in Section 3.1(ii).

 

“Outstanding
Equity Line” means the Standby Equity Distribution Agreement between the Company and YA Global entered into on July
9, 2015, and described in the Company’s Form 20-F for the year ended December 31, 2016.

 

“Ordinary
Shares” means the Ordinary Shares of the Company, par value NIS 0.01 per share, and any other class of securities into
which such securities may hereafter be reclassified or changed.

 

“Ordinary
Shares Equivalents” means any securities of the Company or any Subsidiary which would entitle the holder thereof to
acquire at any time Ordinary Shares, including, without limitation, any debt, preferred stock, right, option, warrant or other
instrument that is at any time convertible into or exercisable or exchangeable for, or otherwise entitles the holder thereof to
receive, Ordinary Shares.

 

“Participation
Maximum” shall have the meaning ascribed to such term in Section 4.17(a).

 

    	 	3	 

     

    

 

“Permitted
Indebtedness” means (a) any liabilities or indebtedness existing as of the date hereof described on Schedule 3.1(z),
(b) any liabilities for borrowed money or amounts owed not in excess of $150,000 in the aggregate (other than trade accounts payable
incurred in the ordinary course of business) incurred after the date hereof, (c) all guaranties, endorsements and other contingent
obligations in respect of indebtedness of others described on Schedule 1.1, whether or not the same are or should be reflected
in the Company’s consolidated balance sheet (or the notes thereto) not affecting more than $150,000 in the aggregate, except
guaranties by endorsement of negotiable instruments for deposit or collection or similar transactions in the ordinary course of
business; (c) the present value of any lease payments not in excess of $150,000 due under leases required to be capitalized in
accordance with GAAP and incurred after the date hereof; and (d) any liabilities for borrowed money that are junior to the Notes
pursuant to an intercreditor agreement acceptable to Purchasers and the holders of which are not granted any security interest.

 

“Permitted
Lien” means the individual and collective reference to the following: (a) Liens for taxes, assessments and other governmental
charges or levies not yet due or Liens for taxes, assessments and other governmental charges or levies being contested in good
faith and by appropriate proceedings for which adequate reserves (in the good faith judgment of the management of the Company)
have been established in accordance with GAAP, (b) Liens imposed by law which were incurred in the ordinary course of the Company’s
business, such as carriers’, warehousemen’s and mechanics’ Liens, statutory landlords’ Liens, and other
similar Liens arising in the ordinary course of the Company’s business, and which (x) do not individually or in the aggregate
materially detract from the value of such property or assets or materially impair the use thereof in the operation of the business
of the Company and its consolidated Subsidiaries or (y) are being contested in good faith by appropriate proceedings, which proceedings
have the effect of preventing for the foreseeable future the forfeiture or sale of the property or asset subject to such Lien,
and (c) Liens in connection with Permitted Indebtedness under clauses (a) and (b) thereunder, and Liens incurred in connection
with Permitted Indebtedness under clause (c) thereunder, provided that such Liens are not secured by assets of the Company or
its Subsidiaries other than the assets so acquired or leased.

 

“Person”
means an individual or corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability
company, joint stock company, government (or an agency or subdivision thereof) or other entity of any kind.

 

“Pre-Notice”
shall have the meaning ascribed to such term in Section 4.17(b).

 

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

 

“Pro-Rata
Portion” shall have the meaning ascribed to such term in Section 4.17(e).

 

“Public
Information Failure” shall have the meaning ascribed to such term in Section 4.3(b).

 

“Public
Information Failure Payments” shall have the meaning ascribed to such term in Section 4.3(b).

 

“Purchaser
Party” shall have the meaning ascribed to such term in Section 4.10.

 

    	 	4	 

     

    

 

“Registration
Statement” means an effective registration statement filed with the Commission and covering the resale of all of the
Underlying Shares held or issuable to each Purchaser as provided.

 

“Required
Approvals” shall have the meaning ascribed to such term in Section 3.1(e).

 

“Required
Minimum” means, as of any date, the maximum aggregate number of Ordinary Shares then issued or potentially issuable
in the future pursuant to the Transaction Documents, including any Underlying Shares issuable upon exercise in full of all Warrants
or conversion in full of all Notes, ignoring any conversion or exercise limits set forth therein, and assuming that any previously
unconverted Notes will be held until the third anniversary of the issue date of such Notes.

 

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

 

“SEC
Reports” shall have the meaning ascribed to such term in Section 3.1(h).

 

“Securities”
means the Notes, the Warrants, and the Underlying Shares.

 

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

 

“Short
Sales” means “short sales” as defined in Rule 200 of Regulation SHO under the Exchange Act and all types
of direct and indirect stock pledges, forward sale contracts, options, puts, calls, swaps and similar arrangements (including
on a total return basis) whether such transactions are made through U.S. or non-U.S. broker dealers or foreign regulated brokers.

 

“Stock
Option Plan” means the unamended P.V. Nano Cell Ltd. 2010 Option Plan identified as exhibit 10.18 to the Company’s
Form 20-F for the year ended December 31, 2016.

 

“Subscription
Amount” means, as to each Purchaser, the aggregate amount to be paid for the Notes and Warrants purchased hereunder
at the Closing as specified below such Purchaser’s name on the signature page of this Agreement and next to the heading
“Subscription Amount,” in United States dollars and in immediately available funds.

 

“Subsequent
Financing” shall have the meaning ascribed to such term in Section 4.17(a).

 

“Subsequent
Financing Notice” shall have the meaning ascribed to such term in Section 4.17(b).

 

“Subsequent
Purchasers” shall have the meaning ascribed to that term in the definition of Exempt Issuance.

 

    	 	5	 

     

    

 

“Subsidiary”
means with respect to any entity at any date, any direct or indirect corporation, limited or general partnership, limited liability
company, trust, estate, association, joint venture or other business entity of which (A) more than 50% of (i) the outstanding
capital stock having (in the absence of contingencies) ordinary voting power to elect a majority of the board of directors or
other managing body of such entity, (ii) in the case of a partnership or limited liability company, the interest in the capital
or profits of such partnership or limited liability company or (iii) in the case of a trust, estate, association, joint venture
or other entity, the beneficial interest in such trust, estate, association or other entity business is, at the time of determination,
owned or controlled directly or indirectly through one or more intermediaries, by such entity, or (B) is under the actual control
of the Company.

 

“Sunrise”
shall mean Sunrise Securities LLC.

 

“Termination
Date” shall have the meaning ascribed to such term in Section 2.1.

 

“Trading
Day” means a day on which the principal Trading Market is open for trading, and if the Company has no Trading Market,
shall mean a Business Day.

 

“Trading
Market” means any of the following markets or exchanges on which the Ordinary Shares are listed or quoted for trading
on the date in question: the NYSE MKT, the NASDAQ Capital Market, the NASDAQ Global Market, the NASDAQ Global Select Market, the
New York Stock Exchange, the OTC Bulletin Board, the OTCQB, or the OTCQX (or any successors to any of the foregoing). As of the
Closing Date, the OTCQB is the principal Trading Market.

 

“Transaction
Documents” means this Agreement, the Notes, the Warrants, Lockup Agreements, all exhibits and schedules thereto and
hereto and any other documents or agreements executed in connection with the transactions contemplated hereunder.

 

“Transfer
Agent” means VStock Transfer, LLC and any successor transfer agent of the Company.

 

“Underlying
Shares” means the Ordinary Shares issued and issuable upon conversion of the Notes and upon exercise of the Warrants
and issued and issuable in lieu of the cash payment of interest on the Notes in accordance with the terms of the Notes and any
other Ordinary Shares issued or issuable to a Purchaser in connection with or pursuant to the Securities or Transaction Documents.

 

“Unlegended
Shares” shall have the meaning ascribed to such term in Section 4.1(d).

 

“Variable
Priced Equity Linked Instruments” shall have the meaning ascribed to such term in Section 4.13.

 

“Variable
Rate Transaction” shall have the meaning ascribed to such term in Section 4.13.

 

    	 	6	 

     

    

 

“VWAP”
means, for any date, the price determined by the first of the following clauses that applies: (a) if the Ordinary Shares are then
listed or quoted on a Trading Market, the daily volume weighted average price of the Ordinary Shares for such date (or the nearest
preceding date) on the Trading Market on which the Ordinary Shares are then listed or quoted as reported by Bloomberg L.P. (based
on a Trading Day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City time)), (b) if any of the NASDAQ markets or exchanges
is not a Trading Market, the volume weighted average price of the Ordinary Shares for such date (or the nearest preceding date)
on the OTC Bulletin Board, (c) if the Ordinary Shares are not then listed or quoted for trading on the OTC Bulletin Board and
if prices for the Ordinary Shares are then reported on the OTCQX, OTCQB or OTC Pink Marketplace maintained by the OTC Markets
Group, Inc. (or a similar organization or agency succeeding to its functions of reporting prices), the volume weighted average
price of the Ordinary Shares on the first such facility (or a similar organization or agency succeeding to its functions of reporting
prices), or (d) in all other cases, the fair market value of a share of Ordinary Shares as determined by an independent appraiser
selected in good faith by the Purchasers of a Majority in Interest then outstanding and reasonably acceptable to the Company,
the fees and expenses of which shall be paid by the Company.

 

“Warrants”
means the Ordinary Shares purchase warrants delivered to the Purchasers at the Closing in accordance with Section 2.2(a) hereof
in the form of Exhibit B attached hereto.

 

“Warrant
Shares” means the Ordinary Shares issuable upon exercise of the Warrants.

 

ARTICLE
II.

PURCHASE
AND SALE

 

2.1 Closing.
On the Closing Date, upon the terms and subject to the conditions set forth herein, substantially concurrent with the execution
and delivery of this Agreement by the parties hereto, the Company agrees to sell, and the Purchasers, severally and not jointly,
agree to purchase, an aggregate of up to US$______ principal amount of Notes and Warrants as determined pursuant to Section 2.2(a)
(such purchase and sale being the “Closing”). Each Purchaser shall deliver to the Company such Purchaser’s
Subscription Amount, and the Company shall deliver to such Purchaser its respective Note and Warrants, as determined pursuant
to Section 2.2(a), and the Company and Purchaser shall deliver the other items set forth in Section 2.2 deliverable at the Closing.
Upon satisfaction of the covenants and conditions set forth in Sections 2.2 and 2.3, the Closing shall occur at the offices of
Greenberg Traurig, P.A. or such other location as the parties shall mutually agree. Notwithstanding anything herein to the contrary,
the Closing Date shall occur on or before_______, 2017 (the “Termination Date”). If the Closing is not held
on or before the Termination Date, the Company shall cause all subscription documents and funds to be returned, without interest
or deduction to each prospective Purchaser.

 

2.2 Deliveries.

 

(a) On
or prior to the Closing Date, the Company shall deliver or cause to be delivered to each Purchaser the following:

 

(i) this
Agreement duly executed by the Company;

 

(ii) a
Note with a principal amount of $1.00 for each $0.90 of Subscription Amount paid by each Purchaser registered in the name of such
Purchaser;

 

(iii) Warrants
in the form of Exhibit B hereto registered in the names of such Purchaser to purchase up to a number of Ordinary Shares
equal to 100% of such Purchaser’s principal Note amount divided by the Conversion Price in effect on the Closing Date with
a per share Exercise Price of $1.20, subject to adjustment as provided therein;

 

    	 	7	 

     

    

 

(iv) a
copy the Lockup Agreement signed by each of the holders of the Company’s securities identified on Schedule 2.2(a)(v);

 

(v) a
certificate of the Principal Executive Officer and Chief Executive Officer (each as defined in the Exchange Act) of the Company,
dated as of the Closing Date, in which such officer shall certify that the conditions set forth in Section 2.3(b) have been fulfilled;
and

 

(vi) Secretary’s
certificate containing (i) copies of the text of the resolutions by which the corporate action on the part of the Company necessary
to approve this Agreement and the other Transaction Documents and the transactions and actions contemplated hereby and thereby,
which shall be accompanied by a certificate of the corporate secretary or assistant corporate secretary of the Company dated as
of the Closing Date certifying to the Purchasers that such resolutions were duly adopted and have not been amended or rescinded,
(ii) an incumbency certificate dated as of the Closing Date executed on behalf of the Company by its corporate secretary or one
of its assistant corporate secretaries certifying the office of each officer of the Company executing this Agreement, or any other
agreement, certificate or other instrument executed pursuant hereto, and (iii) copies of (A) the Company’s Articles of Association
in effect on the Closing Date, and (B) the certificate evidencing the existence of Company as of a day within sixty (60) Business
Days prior to the Closing Date; and

 

(b) On
or prior to the Closing Date, each Purchaser shall deliver or cause to be delivered to the Company the following:

 

(i) this
Agreement duly executed by such Purchaser; and

 

(ii) such
Purchaser’s Subscription Amount by wire transfer to the Company.

 

Each
Purchaser hereby acknowledges that the Previous Purchaser has certain rights that the Purchasers hereunder do not have, including
without limitation the Previous Purchaser’s right to require that interest on the notes be paid in cash instead of shares
if certain conditions are not met and the right to prevent subsequent investors from obtaining registration rights if certain
milestones have not been attained. In addition, the Previous Purchaser has received a legal opinion from Company Counsel and a
certificate of existence of the Company within five (5) days of its closing date as opposed to sixty (60) days under this Agreement.
These rights have been relinquished by each Purchaser in order to reduce the Company’s expenses, to preserve cash and to
limit the restrictions on the Company’s ability to obtain additional capital infusions.

 

2.3 Closing
Conditions.

 

(a) The
obligations of the Company hereunder to effect Closing, unless waived by the Company, are subject to the following conditions
being met:

 

(i) the
accuracy in all material respects (determined without regard to any materiality, Material Adverse Effect or other similar qualifiers
therein) on the Closing Date of the representations and warranties of the Purchasers contained herein (unless as of a specific
date therein in which case they shall be accurate as of such date);

 

(ii) all
obligations, covenants and agreements of each Purchaser required to be performed at or prior to the Closing Date shall have been
performed; and

 

(iii) the
delivery by each Purchaser of the items set forth in Section 2.2(b) of this Agreement.

 

    	 	8	 

     

    

 

(b) The
respective obligations of a Purchaser hereunder to effect a Closing, unless waived by such Purchaser, are subject to the following
conditions being met:

 

(i) the
accuracy in all material respects (determined without regard to any materiality, Material Adverse Effect or other similar qualifiers
therein) on the Closing Date of the representations and warranties of the Company contained herein (unless as of a specific date
therein in which case they shall be accurate as of such date);

 

(ii) all
obligations, covenants and agreements of the Company required to be performed at or prior to the Closing Date shall have been
performed;

 

(iii) the
Company shall have received executed signature pages to this Agreement with an aggregate cash Subscription Amount of up to $_______
prior to the Closing;

 

(iv) the
delivery by the Company of the items set forth in Section 2.2(a) of this Agreement;

 

(v) there
shall have been no Material Adverse Effect with respect to the Company since the date hereof; and

 

(vi) from
the date hereof to the Closing Date, trading in the Ordinary Shares shall not have been suspended by the Commission or the Company’s
principal Trading Market, and, at any time prior to the Closing Date, trading in securities generally as reported by Bloomberg
L.P. shall not have been suspended or limited, or minimum prices shall not have been established on securities whose trades are
reported by such service, or on any Trading Market, nor shall a banking moratorium have been declared either by the United States
or New York State authorities nor shall there have occurred any material outbreak or escalation of hostilities or other national
or international calamity of such magnitude in its effect on, or any material adverse change in, any financial market which, in
each case, in the reasonable judgment of such Purchaser, makes it impracticable or inadvisable to purchase the Securities at the
Closing.

 

ARTICLE
III.

REPRESENTATIONS
AND WARRANTIES

 

3.1 Representations
and Warranties of the Company. Except as set forth in the SEC Reports or the Disclosure Schedules, which Disclosure Schedules
shall be deemed a part hereof and shall qualify a representation made herein only to the extent of the disclosure contained in
the corresponding section of the Disclosure Schedules the Company hereby makes the following representations and warranties to
each Purchaser:

 

(a) Subsidiaries.
All of the direct and indirect subsidiaries of the Company and the Company’s ownership interests therein are set forth on
Schedule 3.1(a). The Company owns, directly or indirectly, all of the capital stock or other equity interests of each Subsidiary
free and clear of any Liens, and all of the issued and outstanding shares of capital stock of each Subsidiary are validly issued
and are fully paid, non-assessable and free of preemptive and similar rights to subscribe for or purchase securities.

 

    	 	9	 

     

    

 

(b) Organization
and Qualification. The Company and each Subsidiary is an entity duly incorporated or otherwise organized, validly existing
and in good standing under the laws of the jurisdiction of its incorporation or organization, with the requisite power and authority
to own and use its properties and assets and to carry on its business as currently conducted. Neither the Company nor any Subsidiary
is in violation nor default of any of the provisions of its respective articles of association, certificate or articles of incorporation,
bylaws or other organizational or charter documents. Each of the Company and each Subsidiary is duly qualified to conduct business
and is in good standing as a foreign corporation or other entity in each jurisdiction in which the nature of the business conducted
or property owned by it makes such qualification necessary, except where the failure to be so qualified or in good standing, as
the case may be, would not reasonably be expected to result in: (i) a material adverse effect on the legality, validity or enforceability
of any Transaction Document, (ii) a material adverse effect on the results of operations, assets, business, or condition (financial
or otherwise) of the Company and each Subsidiary, taken as a whole, or (iii) a material adverse effect on the Company’s
ability to perform in any material respect on a timely basis its obligations under any Transaction Document (any of (i), (ii)
or (iii), a “Material Adverse Effect”) and, no Proceeding has been instituted in any such jurisdiction revoking,
limiting or curtailing or seeking to revoke, limit or curtail such power and authority or qualification.

 

(c) Authorization;
Enforcement. The Company has the requisite corporate power and authority to enter into and to consummate the transactions
contemplated by this Agreement and each of the other Transaction Documents and otherwise to carry out its obligations hereunder
and thereunder. The execution and delivery of this Agreement and each of the other Transaction Documents by the Company and the
consummation by it of the transactions contemplated hereby and thereby have been duly authorized by all necessary action on the
part of the Company and no further action is required by the Company, the Board of Directors or the Company’s stockholders
in connection herewith or therewith other than in connection with the Required Approvals. This Agreement and each other Transaction
Document to which it is a party has been (or upon delivery will have been) duly executed by the Company and, when delivered in
accordance with the terms hereof and thereof, will constitute the valid and binding obligation of the Company enforceable against
the Company in accordance with its terms, except: (i) as limited by general equitable principles and applicable bankruptcy, insolvency,
reorganization, moratorium and other laws of general application affecting enforcement of creditors’ rights generally, (ii)
as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies and (iii)
insofar as indemnification and contribution provisions may be limited by applicable law.

 

(d) No
Conflicts. The execution, delivery and performance by the Company of this Agreement and the other Transaction Documents, the
issuance and sale of the Securities and the consummation by it of the transactions contemplated hereby and thereby to which it
is a party do not and will not: (i) conflict with or violate any provision of the Company’s or any Subsidiary’s articles
of association, certificate or articles of incorporation, bylaws or other organizational or charter documents, (ii) conflict with,
or constitute a default (or an event that with notice or lapse of time or both would become a default) under, result in the creation
of any Lien upon any of the properties or assets of the Company or any Subsidiary, or give to others any rights of termination,
amendment, acceleration, adjustment, exchange, reset, exercise or cancellation (with or without notice, lapse of time or both)
of, any agreement, credit facility, debt, equity or other instrument (evidencing Company or Subsidiary equity, debt or otherwise)
or other understanding to which the Company or any Subsidiary is a party or by which any property or asset of the Company or any
Subsidiary is bound or affected, or (iii) conflict with or result in a violation of any law, rule, regulation, order, judgment,
injunction, decree or other restriction of any court or governmental authority to which the Company or a Subsidiary is subject
(including Israeli and federal and state securities laws and regulations), or by which any property or asset of the Company or
a Subsidiary is bound or affected; except in the case of each of clause (iii), such as would not reasonably be expected to result
in a Material Adverse Effect.

 

    	 	10	 

     

    

 

(e) Filings,
Consents and Approvals. The Company is not required to obtain any consent, waiver, authorization or order of, give any notice
to, or make any filing or registration with, any court or other Israeli federal, state, local, foreign or other governmental authority
or other Person in connection with the execution, delivery and performance by the Company of the Transaction Documents, other
than: (i) the filings required pursuant to Section 4.6 of this Agreement, (ii) the filing of Form D with the Commission and such
filings as are required to be made under applicable state securities laws, and (iii) the filings to be made under the Israeli
Companies Law as described on Schedule 3.1(e). The Company represents that neither the Company nor any Subsidiary nor licensor
of any Intellectual Property Rights or other rights or assets to the Company requires or will require the approval of the Israel
Innovation Authority or similar or other agency to enter into and fulfill the Company’s obligations pursuant to the Transaction
Documents.

 

(f) Issuance
of the Securities. The Securities are duly authorized and, when issued and paid for in accordance with the applicable Transaction
Documents, will be duly and validly issued, fully paid and nonassessable, free and clear of all Liens except those created by
Purchaser and restrictions on transfer arising pursuant to applicable securities laws. The Company has reserved from its duly
authorized capital stock a number of Ordinary Shares for issuance of the Underlying Shares at least equal to the Required Minimum
on the date hereof.

 

(g) Capitalization.
The capitalization of the Company is as set forth in Schedule 3.1(g). The Company has not issued any capital stock
since its most recently filed periodic report under the Exchange Act. Except as set forth on Schedule 3.1(g), no Person
has any right of first refusal, preemptive right, right of participation, or any similar right to participate in the transactions
contemplated by the Transaction Documents. Except as disclosed on Schedule 3.1(g), there are no outstanding options, employee
or incentive stock option plans, warrants, scrip rights to subscribe to, calls or commitments of any character whatsoever relating
to, or securities, rights or obligations convertible into or exercisable or exchangeable for, or giving any Person any right to
subscribe for or acquire any Ordinary Shares, or contracts, commitments, understandings or arrangements by which the Company or
any Subsidiary is or may become bound to issue additional Ordinary Shares or Ordinary Shares Equivalents. The Company represents
and warrants that as of the Closing Date, there is no outstanding equity line or similar arrangement passed by any Person which
may be exercised by any Person or granting such Person the right to acquire Ordinary Shares or Ordinary Share Equivalents except
for the Outstanding Equity Line. Except as set forth on Schedule 3.1(g), the issuance and sale of the Securities will not
obligate the Company to issue Ordinary Shares or other securities to any Person (other than the Purchasers) and will not result
in a right of any holder of Company securities to adjust the exercise, conversion, exchange or reset price under any of such securities.
All of the outstanding shares of capital stock of the Company are duly authorized, validly issued, fully paid and nonassessable,
have been issued in material compliance with all Israeli, federal and state securities laws, and none of such outstanding shares
was issued in violation of any preemptive rights or similar rights to subscribe for or purchase securities. Except as contemplated
by Section 3.1(e), no further approval or authorization of any stockholder, the Board of Directors or any other Person is required
for the issuance and sale of the Securities. Except as set forth on Schedule 3.1(g), there are no stockholders agreements,
voting agreements or other similar agreements with respect to the Company’s capital stock to which the Company is a party
or, to the knowledge of the Company, between or among any of the Company’s stockholders.

 

    	 	11	 

     

    

 

(h) SEC
Reports; Financial Statements. The Company has filed all reports, schedules, forms, statements and other documents required
to be filed by the Company under the Securities Act and the Exchange Act, including pursuant to Section 13(a) or 15(d) thereof,
for the two years preceding the date hereof (or such shorter period as the Company was required by law or regulation to file such
material) (the foregoing materials, the exhibits thereto and documents incorporated by reference therein filed not later than
five (5) days prior to the date hereof, being collectively referred to herein as the “SEC Reports”) on a timely
basis or has received a valid extension of such time of filing and has filed any such SEC Reports prior to the expiration of any
such extension. As of their respective dates, the SEC Reports complied in all material respects with the requirements of the Securities
Act and the Exchange Act, as applicable, and none of the SEC Reports, when filed, contained any untrue statement of a material
fact or omitted to state a material fact required to be stated therein or necessary in order to make the statements therein, in
the light of the circumstances under which they were made, not misleading. The financial statements of the Company included in
the SEC Reports comply in all material respects with applicable accounting requirements and the rules and regulations of the Commission
with respect thereto as in effect at the time of filing. Such financial statements have been prepared in accordance with United
States generally accepted accounting principles applied on a consistent basis during the periods involved (“GAAP”),
except as may be otherwise specified in such financial statements or the notes thereto and except that unaudited financial statements
may not contain all footnotes required by GAAP, and fairly present in all material respects the financial position of the Company
and its consolidated Subsidiaries as of and for the dates thereof and the results of operations and cash flows for the periods
then ended, subject, in the case of unaudited statements, to normal, immaterial, year-end audit adjustments. The Company is, and
has no reason to believe that it will not in the foreseeable future continue to be in compliance with all its reporting requirements
under the Securities Act and Exchange Act.

 

(i) Material
Changes; Undisclosed Events, Liabilities or Developments. Since the date of the latest audited financial statements included
within the SEC Reports, except as specifically disclosed in a subsequent SEC Report filed prior to the date hereof : (i) there
has been no event, occurrence or development that has had or that would reasonably be expected to result in a Material Adverse
Effect, (ii) the Company has not incurred any material liabilities (contingent or otherwise) other than (A) trade payables and
accrued expenses incurred in the ordinary course of business consistent with past practice and (B) liabilities not required to
be reflected in the Company’s financial statements pursuant to GAAP or disclosed in filings made with the Commission, (iii)
the Company has not altered its method of accounting, (iv) the Company has not declared or made any dividend or distribution of
cash or other property to its stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its
capital stock and (v) the Company has not issued any equity securities to any officer, director or Affiliate except pursuant to
the Stock Option Plan as set forth on Schedule 3.1(i). The Company does not have pending before the Commission any request
for confidential treatment of information. Except for the issuance of the Securities contemplated by this Agreement and the contemplated
merger with Digiflex, as described in the SEC Reports, no event, liability, fact, circumstance, occurrence or development has
occurred or exists or is reasonably expected to occur or exist with respect to the Company or its Subsidiaries or their respective
businesses, properties, operations, assets or financial condition, that would be required to be disclosed by the Company under
applicable securities laws at the time this representation is made or deemed made that has not been publicly disclosed at least
two Trading Days prior to the date that this representation is made.

 

(j) Litigation.
Except as set forth in the SEC Reports, there is no action, suit, inquiry, notice of violation, proceeding or investigation pending
or, to the knowledge of the Company, threatened against or affecting the Company, any Subsidiary or any of their respective properties
before or by any court, arbitrator, governmental or administrative agency or regulatory authority (federal, state, county, local
or foreign) (collectively, an “Action”) which (i) adversely affects or challenges the legality, validity or
enforceability of any of the Transaction Documents or the Securities or (ii) could, if there were an unfavorable decision, have
or reasonably be expected to result in a Material Adverse Effect. Except as set forth in the SEC Reports, neither the Company
nor any Subsidiary, nor, to our knowledge, any director or officer thereof, is or has been the subject of any Action involving
a claim of violation of or liability under Israeli, federal or state securities laws or a claim of breach of fiduciary duty. Except
as set forth in the SEC Reports, there has not been, and to the knowledge of the Company, there is not pending or contemplated,
any investigation by the Commission involving the Company or any current or former director or officer of the Company. The Commission
has not issued any stop order or other order suspending the effectiveness of any registration statement filed by the Company or
any Subsidiary under the Exchange Act or the Securities Act.

 

    	 	12	 

     

    

 

(k) Labor
Relations. No labor dispute exists or, to the knowledge of the Company, is imminent with respect to any of the employees of
the Company or any Subsidiary, which would reasonably be expected to result in a Material Adverse Effect. None of the Company’s
or its Subsidiaries’ employees is a member of a union that relates to such employee’s relationship with the Company
or such Subsidiary, and neither the Company nor any of its Subsidiaries is a party to a collective bargaining agreement except
for collective bargaining agreements applicable to the Company under Israeli Law (extension orders), and the Company and its Subsidiaries
believe that their relationships with their employees are good. To the knowledge of the Company, no executive officer of the Company
or any Subsidiary, is, or is now expected to be, in violation of any material term of any employment contract, confidentiality,
disclosure or proprietary information agreement or non-competition agreement, or any other contract or agreement or any restrictive
covenant in favor of any third party, and the continued employment of each such executive officer does not subject the Company
or any of its Subsidiaries to any liability with respect to any of the foregoing matters. The Company and its Subsidiaries are
in compliance with all U.S. federal, state, local and foreign laws and regulations relating to employment and employment practices,
terms and conditions of employment and wages and hours, except where the failure to be in compliance would not, individually or
in the aggregate, reasonably be expected to have a Material Adverse Effect.

 

(l) Compliance.
To the Company’s knowledge, neither the Company nor any Subsidiary, except as disclosed on Schedule 3.1(l): (i) is
in default under or in violation of (and no event has occurred that has not been waived that, with notice or lapse of time or
both, would result in a default by the Company or any Subsidiary under), nor has the Company or any Subsidiary received notice
of a claim that it is in default under or that it is in violation of, any indenture, loan or credit agreement or any other agreement
or instrument to which it is a party or by which it or any of its properties is bound (whether or not such default or violation
has been waived), (ii) is in violation of any judgment, decree or order of any court, arbitrator or other governmental authority
or (iii) is or has been in violation of any statute, rule, ordinance or regulation of any governmental authority, including without
limitation all foreign, federal, state and local laws relating to taxes, environmental protection, occupational health and safety,
product quality and safety and employment and labor matters, except in each case as would not reasonably be expected to result
in a Material Adverse Effect.

 

(m) Regulatory
Permits. The Company and each Subsidiary possess all certificates, authorizations and permits issued by the appropriate federal,
state, local or foreign regulatory authorities necessary to conduct their respective businesses as described in the SEC Reports,
except where the failure to possess such permits would not reasonably be expected to result in a Material Adverse Effect (“Material
Permits”), and neither the Company nor any Subsidiary has received any notice of proceedings relating to the revocation
or modification of any Material Permit.

 

(n) Title
to Assets. Except as disclosed on Schedule 3.1(n) and in the SEC Reports, the Company and each Subsidiary have good
and marketable title in fee simple to all real property (if any) owned by them and good and marketable title in all personal property
owned by them that is material to the business of the Company and each Subsidiary, in each case free and clear of all Liens, except
for Permitted Liens and (i) Liens as do not materially affect the value of such property and do not materially interfere with
the use made and proposed to be made of such property by the Company and each Subsidiary and (ii) Liens for the payment of federal,
state or other taxes, for which appropriate reserves have been made in accordance with GAAP and, the payment of which is neither
delinquent nor subject to penalties. Any real property and facilities held under lease by the Company and each Subsidiary are
held by them under valid, subsisting and enforceable leases with which the Company and each Subsidiary are in compliance.

 

    	 	13	 

     

    

 

(o) Intellectual
Property. All of the Company’s and Subsidiary’s material Intellectual Property Rights are disclosed as required
in the SEC Reports.

 

(i) The
term “Intellectual Property Rights” means:

 

1.the
name of the Company and each Subsidiary, all fictional business names, trading names, registered and unregistered trademarks,
service marks, and applications of the Company and each Subsidiary (collectively, “Marks’’);

 

2.all
patents and patent applications of the Company and each Subsidiary (collectively, “Patents’’);

 

3.all
copyrights in both published works and unpublished works of the Company and each Subsidiary (collectively, “Copyrights”);

 

4.all
rights in mask works of the Company and each Subsidiary (collectively, “Rights in Mask Works’’); and

 

5.all
know-how, trade secrets, confidential information, customer lists, software, technical information, data, process technology,
plans, drawings, and blue prints (collectively, “Trade Secrets’’); owned, used, or licensed by the Company
and each Subsidiary as licensee or licensor.

 

(ii) Agreements.
Except as set forth in the SEC Reports, there are no outstanding and, to Company’s knowledge, no threatened disputes or
disagreements with respect to any agreements relating to any Intellectual Property Rights to which the Company is a party or by
which the Company is bound.

 

(iii) Know-How
Necessary for the Business. Except as set forth in the SEC Reports, the Intellectual Property Rights are all those necessary
for the operation of the Company’s and Subsidiaries’ businesses as currently conducted or as represented to the Purchaser
to be conducted. Each of the Company and each Subsidiary is the owner of all right, title, and interest in and to each of their
respective Intellectual Property Rights, free and clear of all Liens, and adverse claims, and has the right to use all of the
Intellectual Property Rights. To the Company’s knowledge, no employee of the Company or any Subsidiary has entered into
any contract that restricts or limits in any way the scope or type of work in which the employee may be engaged or requires the
employee to transfer, assign, or disclose information concerning his work to anyone other than the Company or a Subsidiary.

 

(iv) Patents.
Except as set forth in the SEC Reports, the Company and each Subsidiary is the owner of all right, title and interest in and to
each of the Patents, free and clear of all Liens and adverse claims. All of the issued Patents are currently in compliance with
formal legal requirements (including payment of filing, examination, and maintenance fees and proofs of working or use), are valid
and enforceable, and, except as set forth on Schedule 3.1(o), are not subject to any maintenance fees or taxes or actions
falling due within ninety days after the Closing Date. No Patent has been or is now involved in any interference, reissue, reexamination,
or opposition proceeding. Except as set forth in the SEC Reports, to the Company’s knowledge: (1) there is no potentially
interfering patent or patent application of any third party, and (2) no Patent is infringed or has been challenged or threatened
in any way. To the Company’s knowledge, none of the products manufactured and sold, nor any process or know-how used, by
the Company or any Subsidiary infringes or is alleged to infringe any patent or other proprietary right of any other Person.

 

    	 	14	 

     

    

 

(v) Trademarks.
The Company and each Subsidiary is the owner of all right, title, and interest in and to each of the Marks, free and clear of
all Liens and adverse claims. All Marks that have been registered with the United States Patent and Trademark Office are currently
in compliance with all formal legal requirements (including the timely post-registration filing of affidavits of use and incontestability
and renewal applications), are valid and enforceable, and are not subject to any maintenance fees or taxes or actions falling
due within ninety days after the Closing Date. No Mark has been or is now involved in any opposition, invalidation, or cancellation
and, to the Company’s knowledge, no such action is threatened with respect to any of the Marks. To the Company’s knowledge:
(1) there is no potentially interfering trademark or trademark application of any third party, and (2) no Mark is infringed or
has been challenged or threatened in any way. To the Company’s knowledge, none of the Marks used by the Company and each
Subsidiary infringes or is alleged to infringe any trade name, trademark, or service mark of any third party.

 

(vi) Copyrights.
The Company and each Subsidiary is the owner of all right, title, and interest in and to each of the Copyrights, free and clear
of all Liens and adverse claims. All the Copyrights have been registered and are currently in compliance with formal requirements,
are valid and enforceable, and are not subject to any maintenance fees or taxes or actions falling due within ninety days after
the Closing Date. To the Company’s knowledge, no Copyright is infringed or has been challenged or threatened in any way.
To the Company’s knowledge, none of the subject matter of any of the Copyrights infringes or is alleged to infringe any
copyright of any third party or is a derivative work based on the work of a third party. All works encompassed by the Copyrights
have been marked with the proper copyright notice.

 

(vii) Trade
Secrets. With respect to each Trade Secret, the documentation relating to such Trade Secret is current, accurate, and sufficient
in detail and content to identify and explain it and to allow its full and proper use without reliance on the knowledge or memory
of any individual. The Company has taken all reasonable precautions to protect the secrecy, confidentiality, and value of its
Trade Secrets. The Company and each Subsidiary has good title and an absolute (but not necessarily exclusive) right to use the
Trade Secrets. The Trade Secrets are not part of the public knowledge or literature, and, to the Company’s knowledge, have
not been used, divulged, or appropriated either for the benefit of any Person (other the Company and each Subsidiary) or to the
detriment of the Company and each Subsidiary. No Trade Secret is subject to any adverse claim or has been challenged or threatened
in any way.

 

(p) Insurance.
The Company and each Subsidiary are insured by insurers of recognized financial responsibility against such losses and risks and
in such amounts as are prudent and customary in the businesses in which the Company and each Subsidiary are engaged, including,
but not limited to, directors and officers insurance coverage and all insurance required by applicable law. Neither the Company
nor any Subsidiary has any reason to believe that it will not be able to renew its existing insurance coverage as and when such
coverage expires or to obtain similar coverage from similar insurers as may be necessary to continue its business without a significant
increase in cost.

 

(q) Transactions
With Affiliates and Employees. Except as set forth in the SEC Reports, none of the officers or directors of the Company or
any Subsidiary and, to the knowledge of the Company, none of the employees of the Company or any Subsidiary is presently a party
to any transaction with the Company or any Subsidiary (other than for services as employees, officers and directors), including
any contract, agreement or other arrangement providing for the furnishing of services to or by, providing for rental of real or
personal property to or from, providing for the borrowing of money from or lending of money to or otherwise requiring payments
to or from any officer, director or such employee or, to the knowledge of the Company, any entity in which any officer, director,
or any such employee has a substantial interest or is an officer, director, trustee, stockholder, member or partner, in each case
in excess of $50,000 other than for: (i) payment of salary or consulting fees for services rendered, (ii) reimbursement for expenses
incurred on behalf of the Company or any Subsidiary, and (iii) other employee benefits, including stock option agreements under
the Stock Option Plan or any other plan of the Company except as disclosed on Schedule 3.1(g).

 

    	 	15	 

     

    

 

(r) Sarbanes-Oxley;
Internal Accounting Controls. The Company and each Subsidiary are in material compliance with any and all applicable requirements
of the Sarbanes-Oxley Act of 2002 that are effective as of the date hereof, and any and all applicable rules and regulations promulgated
by the Commission thereunder that are effective as of the date hereof and as of the Closing Date. The Company and each Subsidiary
maintain a system of internal accounting controls sufficient to provide reasonable assurance that: (i) transactions are executed
in accordance with management’s general or specific authorizations, (ii) transactions are recorded as necessary to permit
preparation of financial statements in conformity with GAAP and to maintain asset accountability, (iii) access to assets is permitted
only in accordance with management’s general or specific authorization, and (iv) the recorded accountability for assets
is compared with the existing assets at reasonable intervals and appropriate action is taken with respect to any differences.
The Company and each Subsidiary have established disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e)
and 15d-15(e)) for the Company and each Subsidiary and designed such disclosure controls and procedures to ensure that information
required to be disclosed by the Company in the reports it files or submits under the Exchange Act is recorded, processed, summarized
and reported, within the time periods specified in the Commission’s rules and forms. The Company’s certifying officers
have evaluated the effectiveness of the disclosure controls and procedures of the Company and each Subsidiary as of the end of
the period covered by the most recently filed periodic report under the Exchange Act (such date, the “Evaluation Date”).
The Company presented in its most recently filed periodic report under the Exchange Act the conclusions of the certifying officers
about the effectiveness of the disclosure controls and procedures based on their evaluations as of the Evaluation Date. Since
the Evaluation Date, there have been no changes in the internal control over financial reporting (as such term is defined in the
Exchange Act) of the Company and its Subsidiaries that have materially affected, or is reasonably likely to materially affect,
the internal control over financial reporting of the Company and its Subsidiaries.

 

(s) Certain
Fees. Except as set forth on Schedule 3.1(s), no brokerage, finder’s fees, commissions or due diligence fees
are or will be payable by the Company or any Subsidiary to any broker, financial advisor or consultant, finder, placement agent,
investment banker, bank or other Person with respect to the transactions contemplated by the Transaction Documents. The Purchasers
shall have no obligation with respect to any such fees or with respect to any claims made by or on behalf of other Persons for
fees of a type contemplated in this Section 3.1(s) that may be due in connection with the transactions contemplated by the Transaction
Documents.

 

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

 

(u) Registration
Rights. Except as set forth on Schedule 3.1(u), no Person has any right to cause the Company or any Subsidiary to effect
the registration under the Securities Act of any securities of the Company or any Subsidiary, except for the Purchasers.

 

(v) Reporting
Company/Shell Company. The Company is a publicly-held company subject to reporting obligations pursuant to Sections 12(b)
and 13 of the Exchange Act. Pursuant to the provisions of the Exchange Act, the Company has timely filed all reports and other
materials required to be filed by the Company thereunder with the SEC during the twelve months preceding the date of this Agreement.
As of a Closing Date, the Company is not a “shell company” (as defined in Rule 405) of the Securities Act nor a “former
shell company”.

 

    	 	16	 

     

    

 

(w) Application
of Takeover Protections. The Company and the Board of Directors will have taken as of the Closing Date all necessary action,
if any, in order to render inapplicable any control share acquisition, business combination, poison pill (including any distribution
under a rights agreement) or other similar anti-takeover provision under the Company’s articles of association (or similar
charter documents) or the laws of its jurisdiction of incorporation that is or could become applicable to the Purchasers as a
result of the Purchasers and the Company fulfilling their obligations or exercising their rights under the Transaction Documents,
including without limitation as a result of the Company’s issuance of the Securities and the Purchasers’ ownership
of the Securities.

 

(x) Disclosure.
Except with respect to the material terms and conditions of the transactions contemplated by the Transaction Documents, the Company
confirms that neither it nor any other Person acting on its behalf has provided any of the Purchasers or their agents or counsel
with any information that it believes constitutes or might constitute material, non-public information. The Company understands
and confirms that the Purchasers will rely on the foregoing representation in effecting transactions in securities of the Company.
All of the disclosure furnished by or on behalf of the Company to the Purchasers regarding the Company and its Subsidiaries, their
respective businesses and the transactions contemplated hereby, including the Disclosure Schedules to this Agreement, when taken
together as a whole, is true and correct and does not contain any untrue statement of a material fact or omit to state any material
fact necessary in order to make the statements made therein, in light of the circumstances under which they were made, not misleading.
The press releases disseminated by the Company during the twelve months preceding the date of this Agreement taken as a whole
did not, at the time when disseminated, contain any untrue statement of a material fact or omit to state a material fact required
to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they were
made and when made, not misleading. The Company acknowledges and agrees that no Purchaser makes or has made any representations
or warranties with respect to the transactions contemplated hereby other than those specifically set forth in Section 3.2 hereof.

 

(y) No
Integrated Offering. Assuming the accuracy of the Purchasers’ representations and warranties set forth in Section 3.2,
neither the Company, nor any of its Affiliates, nor any Person acting on its or their behalf has, directly or indirectly, made
any offers or sales of any security or solicited any offers to buy any security, under circumstances that would cause the Offering
of the Securities to be integrated with prior offerings by the Company for purposes of: (i) the Securities Act which would require
the registration of any such securities under the Securities Act, or (ii) any applicable shareholder approval provisions of any
Trading Market on which any of the securities of the Company are listed or designated.

 

(z) Solvency.
Based on the consolidated financial condition of the Company as of the Closing Date, and the Company’s good faith estimate
of the fair market value of its assets, after giving effect to the receipt by the Company of the proceeds from the sale of the
Securities hereunder: (i) the fair saleable value of the Company’s assets exceeds the amount that will be required to be
paid on or in respect of the Company’s existing debts and other liabilities (including known contingent liabilities) as
they mature, (ii) the Company’s assets do not constitute unreasonably small capital to carry on its business as now conducted
and as proposed to be conducted including its capital needs taking into account the particular capital requirements of the business
conducted by the Company, consolidated and projected capital requirements and capital availability thereof, and (iii) the current
cash flow of the Company, together with the proceeds the Company would receive, were it to liquidate all of its assets, after
taking into account all anticipated uses of the cash, would be sufficient to pay all amounts on or in respect of its liabilities
when such amounts are required to be paid. The Company does not intend to incur debts beyond its ability to pay such debts as
they mature (taking into account the timing and amounts of cash to be payable on or in respect of its debt). The Company has no
knowledge of any facts or circumstances which lead it to believe that it will file for reorganization or liquidation under the
bankruptcy or reorganization laws of any jurisdiction within one year from the Closing Date. Schedule 3.1(z) sets forth
as of the date hereof all outstanding secured and unsecured Indebtedness of the Company or any Subsidiary, or for which the Company
or any Subsidiary has commitments. For the purposes of this Agreement, “Indebtedness” means (x) any liabilities
for borrowed money or amounts owed in excess of $150,000 in the aggregate (other than trade accounts payable incurred in
the ordinary course of business), (y) all guaranties, endorsements and other contingent obligations in respect of indebtedness
of others, whether or not the same are or should be reflected in the Company’s consolidated balance sheet (or the notes
thereto), except guaranties by endorsement of negotiable instruments for deposit or collection or similar transactions in the
ordinary course of business; and (z) the present value of any lease payments in excess of $150,000 due under leases required to
be capitalized in accordance with GAAP. Neither the Company nor any Subsidiary is in default with respect to any Indebtedness.
Neither the Company nor any Subsidiary is in default with respect to any Indebtedness except as set forth on Schedule 3.1(z).

 

    	 	17	 

     

    

 

(aa)Tax
Status. Except for matters that would not, individually or in the aggregate, have or reasonably be expected to result in a
Material Adverse Effect, the Company and its Subsidiaries each (i) has made or filed all federal, state and local income and all
foreign income and franchise tax returns, reports and declarations required by any jurisdiction to which it is subject, (ii) has
paid all taxes and other governmental assessments and charges that are material in amount, shown or determined to be due on such
returns, reports and declarations and (iii) has set aside on its books provision reasonably adequate for the payment of all material
taxes for periods subsequent to the periods to which such returns, reports or declarations apply. There are no unpaid taxes in
any material amount claimed to be due by the taxing authority of any jurisdiction, and the officers of the Company or of any Subsidiary
know of no basis for any such claim.

 

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

 

(cc)Accountants.
The Company’s accounting firm is set forth on Schedule 3.1(cc) of the Disclosure Schedules. To the knowledge and
belief of the Company, such accounting firm: (i) is a registered public accounting firm as required by the Exchange Act and (ii)
shall express its opinion with respect to the financial statements to be included in the Company’s Annual Report for the
fiscal year ending December 31, 2017. There are no disagreements of any kind presently existing, or reasonably anticipated by
the Company to arise, between the Company and such accountants.

 

(dd)Acknowledgment
Regarding Purchasers’ Purchase of Securities. The Company acknowledges and agrees that each of the Purchasers is acting
solely in the capacity of an arm’s length purchaser with respect to the Transaction Documents and the transactions contemplated
thereby. The Company further acknowledges that no Purchaser is acting as a financial advisor or fiduciary of the Company (or in
any similar capacity) with respect to the Transaction Documents and the transactions contemplated thereby and any advice given
by any Purchaser or any of their respective representatives or agents in connection with the Transaction Documents and the transactions
contemplated thereby is merely incidental to the Purchasers’ purchase of the Securities. The Company further represents
to each Purchaser that the Company’s decision to enter into this Agreement and the other Transaction Documents has been
based solely on the independent evaluation of the transactions contemplated hereby by the Company and its representatives.

 

    	 	18	 

     

    

 

(ee)Acknowledgment
Regarding Purchaser’s Trading Activity. Anything in this Agreement or elsewhere herein to the contrary notwithstanding
(except for Sections 3.2(e) and 4.16 hereof), it is understood and acknowledged by the Company that: (i) none of the Purchasers
has been asked by the Company to agree, nor has any Purchaser agreed, to desist from purchasing or selling, long and/or short,
securities of the Company, or “derivative” securities based on securities issued by the Company or to hold the Securities
for any specified term, (ii) past or future open market or other transactions by any Purchaser, specifically including, without
limitation, Short Sales or “derivative” transactions, before or after the closing of this or future private placement
transactions, may negatively impact the market price of the Company’s publicly-traded securities, (iii) any Purchaser, and
counter-parties in “derivative” transactions to which any such Purchaser is a party, directly or indirectly, may presently
have a “short” position in the Ordinary Shares and (iv) each Purchaser shall not be deemed to have any affiliation
with or control over any arm’s length counter-party in any “derivative” transaction. The Company further understands
and acknowledges that (y) one or more Purchasers may engage in hedging activities at various times during the period that the
Securities are outstanding, including, without limitation, during the periods that the value of the Underlying Shares deliverable
with respect to Securities are being determined, and (z) such hedging activities (if any) could reduce the value of the existing
stockholders’ equity interests in the Company at and after the time that the hedging activities are being conducted. 
The Company acknowledges that such aforementioned hedging activities do not constitute a breach of any of the Transaction Documents.
The Company acknowledges that anything to the contrary in the Transaction Documents notwithstanding, Purchaser may sell long any
Underlying shares it anticipates receiving after conversion of any part of a Note or exercise of a Warrant.

 

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

 

(gg)Money
Laundering. The operations of the Company and its Subsidiaries are and have been conducted at all times in compliance with
applicable financial record-keeping and reporting requirements of the Currency and Foreign Transactions Reporting Act of 1970,
as amended, applicable money laundering statutes and applicable rules and regulations thereunder (collectively, the “Money
Laundering Laws”), and no action, suit or proceeding by or before any court or governmental agency, authority or body
or any arbitrator involving the Company or any Subsidiary with respect to the Money Laundering Laws is pending or, to the knowledge
of the Company or any Subsidiary, threatened.

 

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

 

    	 	19	 

     

    

 

(ii) Office
of Foreign Assets Control. Neither the Company nor any Subsidiary nor, to the Company’s knowledge, any director, officer,
agent, employee or affiliate of the Company is currently subject to any U.S. sanctions administered by the Office of Foreign Assets
Control of the U.S. Treasury Department (“OFAC”).

 

(jj)Private
Placement. Assuming the accuracy of the Purchasers’ representations and warranties set forth in Section 3.2, no registration
under the Securities Act is required for the offer and sale of the Securities by the Company to the Purchasers as contemplated
hereby. The issuance and sale of the Securities hereunder does not contravene the rules and regulations of the Trading Market.

 

(kk)No
General Solicitation. Neither the Company nor any person acting on behalf of the Company has offered or sold any of the Securities
by any form of general solicitation or general advertising. The Company has offered the Securities for sale only to the Purchasers
and certain other “accredited investors” within the meaning of Rule 501 under the Securities Act.

 

(i) Indebtedness
and Seniority. As of the date hereof, all Indebtedness and Liens of the Company and the principal terms thereof are set forth
on Schedule 3.1(ll). Except as set forth on Schedule 3.1(ll), as of the Closing Date, no Indebtedness or other equity
of the Company is or will be senior to the Notes in right of payment, whether with respect to interest or upon liquidation or
dissolution, or otherwise, other than indebtedness secured by purchase money security interests (which is senior only as to underlying
assets covered thereby) and capital lease obligations (which is senior only as to the property covered thereby).

 

(ll)Listing
and Maintenance Requirements. The Ordinary Shares are listed on the OTCQB maintained by the OTC Markets Group Inc. under the
symbol PVNNF. Except as set forth in the SEC Reports, the Company has not, in the twelve (12) months preceding the date hereof,
received notice from any Trading Market on which the Ordinary Shares are or has been listed or quoted to the effect that the Company
is not in compliance with the listing or maintenance requirements of such Trading Market.

 

(mm)FDA.
The Company has no applications pending before the jurisdiction of the U.S. Food and Drug Administration (“FDA”)
and none of the Company’s products are subject to nor require the approval of the FDA.

 

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

 

    	 	20	 

     

    

 

(oo) Regulatory
Matters. The Company and its Subsidiaries have complied in all material respects with all statutes and regulations related
to the research, manufacture and sale of its products to the extent applicable to the Company’s and its Subsidiaries’
activities. Items manufactured or under investigation by the Company and its Subsidiaries comply with all applicable manufacturing
practices regulations and other requirements established by government regulators in the jurisdictions in which the Company or
its Subsidiaries manufacture or sell their products. Except as disclosed in the SEC Reports, the Company is not and its Subsidiaries
are not the subject of any investigation by any competent authority with respect to the development, testing, manufacturing and
distribution of their products, nor has any investigation, prosecution, or other enforcement action been threatened by any regulatory
agency. Except as disclosed in the SEC Reports, neither the Company nor any of its Subsidiaries has received from any regulatory
agency any letter or other document asserting that the Company or any Subsidiary has violated any statute or regulation enforced
by that agency with respect to the development, testing, manufacturing and distribution of their products. To the Company’s
knowledge, research conducted by or for the Company and its Subsidiaries has complied in all material respects with all applicable
legal requirements.

 

(pp)Other
Covered Persons. Except as set forth on Schedule 3.1(s) or to attorneys for legal services, the Company is not aware
of any person that has been or will be paid (directly or indirectly) remuneration in connection with the sale of any Regulation
D Securities pursuant to this Agreement.

 

(qq)Survival.
The foregoing representations and warranties shall survive the Closing.

 

3.2 Representations
and Warranties of the Purchasers. Each Purchaser, for itself and for no other Purchaser, hereby represents and warrants as
of the date hereof and as of the Closing Date to the Company as follows (unless as of a specific date therein):

 

(a) Organization;
Authority. Such Purchaser is either an individual or an entity duly incorporated or formed, validly existing and in good standing
under the laws of the jurisdiction of its incorporation or formation with full right, corporate, partnership, limited liability
company or similar power and authority to enter into and to consummate the transactions contemplated by the Transaction Documents
and otherwise to carry out its obligations hereunder and thereunder. The execution and delivery of the Transaction Documents and
performance by such Purchaser of the transactions contemplated by the Transaction Documents have been duly authorized by all necessary
corporate, partnership, limited liability company or similar action, as applicable, on the part of such Purchaser. Each Transaction
Document to which it is a party has been duly executed by such Purchaser, and when delivered by such Purchaser in accordance with
the terms hereof, will constitute the valid and legally binding obligation of such Purchaser, enforceable against it in accordance
with its terms, except: (i) as limited by general equitable principles and applicable bankruptcy, insolvency, reorganization,
moratorium and other laws of general application affecting enforcement of creditors’ rights generally, (ii) as limited by
laws relating to the availability of specific performance, injunctive relief or other equitable remedies and (iii) insofar as
indemnification and contribution provisions may be limited by applicable law.

 

(b) Understandings
or Arrangements. Such Purchaser understands that the Securities are “restricted securities” and have not been
registered under the Securities Act or any applicable state securities law and is acquiring the Securities as principal for its
own account and not with a view to or for distributing or reselling such Securities or any part thereof in violation of the Securities
Act or any applicable state securities law, has no present intention of distributing any of such Securities in violation of the
Securities Act or any applicable state securities law and has no direct or indirect arrangement or understandings with any other
persons to distribute or regarding the distribution of such Securities in violation of the Securities Act or any applicable state
securities law (this representation and warranty not limiting such Purchaser’s right to sell the Securities pursuant to
any registration statement or otherwise in compliance with applicable federal and state securities laws). Such Purchaser is acquiring
the Securities hereunder in the ordinary course of its business.

 

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(c) Purchaser
Status. At the time such Purchaser was offered the Securities, it was, and as of the date hereof it is, and on each date on
which it exercises any Warrants or converts any Notes it will be either: (i) an “accredited investor” as defined in
Rule 501(a)(1), (a)(2), (a)(3), (a)(7) or (a)(8) under the Securities Act or (ii) a “qualified institutional buyer”
as defined in Rule 144A(a) under the Securities Act. Such Purchaser is not required to be registered as a broker-dealer under
Section 15 of the Exchange Act. Such Purchaser has the authority and is duly and legally qualified to purchase and own the Securities.
Such Purchaser is able to bear the risk of such investment for an indefinite period and to afford a complete loss thereof. Such
Purchaser has provided the information in the Accredited Investor Questionnaire attached hereto as Exhibit F (the “Investor
Questionnaire”). The information set forth on the signature pages hereto and the Investor Questionnaire regarding such
Purchaser is true and complete in all respects as of the date of this Agreement. Except as disclosed in the Investor Questionnaire,
such Purchaser has had no position, office or other material relationship within the past three years with the Company or Persons
(as defined below) known to such Purchaser to be affiliates of the Company, and is not a member of the Financial Industry Regulatory
Authority or an “associated person” (as such term is defined under the FINRA Membership and Registration Rules Section
1011).

 

(d) Experience
of Such Purchaser. Such Purchaser, either alone or together with its representatives, has such knowledge, sophistication and
experience in business and financial matters so as to be capable of evaluating the merits and risks of the prospective investment
in the Securities, and has so evaluated the merits and risks of such investment. Such Purchaser is able to bear the economic risk
of an investment in the Securities and, at the present time, is able to afford a complete loss of such investment.

 

(e) Information
on Company. Such Purchaser has been furnished with or has had access to the EDGAR Website of the Commission to the Company’s
filings made with the Commission during the period from the date that is two years preceding the date hereof through the tenth
(10th) business day preceding the Closing Date, including the Company’s Annual Report on Form 20-F filed with the Commission
on May 16, 2017 (hereinafter referred to collectively as the “SEC Reports”).  Such Purchaser was afforded
(i) the opportunity to ask such questions as such Purchaser deemed necessary of, and to receive answers from, representatives
of the Company concerning the merits and risks of acquiring the Securities; (ii) the right of access to information about the
Company and its financial condition, results of operations, business, properties, management and prospects sufficient to enable
such Purchaser to evaluate the Securities; and (iii) the opportunity to obtain such additional information that the Company possesses
or can acquire without unreasonable effort or expense that is necessary to make an informed investment decision with respect to
acquiring the Securities.

 

(f) Compliance
with Securities Act; Reliance on Exemptions. Such Purchaser understands and agrees that the Securities have not been registered
under the 1933 Act or any applicable state securities laws, by reason of their issuance in a transaction that does not require
registration under the 1933 Act, and that such Securities must be held indefinitely unless a subsequent disposition is registered
under the 1933 Act or any applicable state securities laws or is exempt from such registration. Such Purchaser understands and
agrees that the Securities are being offered and sold to such Purchaser in reliance on specific exemptions from the registration
requirements of federal and state securities laws and regulations and that the Company is relying in part upon the truth and accuracy
of, and such Purchaser’s compliance with, the representations, warranties, agreements, acknowledgments and understandings
of such Purchaser set forth herein in order to determine the availability of such exemptions and the eligibility of such Purchaser
to acquire the Securities.

 

    	 	22	 

     

    

 

(g) Communication
of Offer. Such Purchaser is not purchasing the Securities as a result of any “general solicitation” or “general
advertising,” as such terms are defined in Regulation D, which includes, but is not limited to, any advertisement, article,
notice or other communication regarding the Securities published in any newspaper, magazine or similar media or on the internet
or broadcast over television, radio or the internet or presented at any seminar or any other general solicitation or general advertisement.

 

(h) No
Governmental Review. Such Purchaser understands that no federal or state agency or any other governmental or state agency
has passed on or made recommendations or endorsement of the Securities or the suitability of the investment in the Securities
nor have such authorities passed upon or endorsed the merits of the Offering.

 

(i) No
Conflicts. The execution, delivery and performance of this Agreement and performance under the other Transaction Documents
and the consummation by such Purchaser of the transactions contemplated hereby and thereby or relating hereto or thereto do not
and will not (i) result in a violation of such Purchaser’s charter documents, bylaws or other organizational documents,
if applicable, (ii) conflict with nor constitute a default (or an event which with notice or lapse of time or both would become
a default) under any agreement to which such Purchaser is a party, nor (iii) result in a violation of any law, rule, or regulation,
or any order, judgment or decree of any court or governmental agency applicable to such Purchaser or its properties (except for
such conflicts, defaults and violations as would not, individually or in the aggregate, have a material adverse effect on such
Purchaser). Such Purchaser is not required to obtain any consent, authorization or order of, or make any filing or registration
with, any court or governmental agency in order for it to execute, deliver or perform any of its obligations under this Agreement
or perform under the other Transaction Documents nor to purchase the Securities in accordance with the terms hereof, provided
that for purposes of the representation made in this sentence, such Purchaser is assuming and relying upon the accuracy of the
relevant representations and agreements of the Company herein.

 

(j) Certain
Transactions and Confidentiality. Other than consummating the transactions contemplated hereunder, such Purchaser has not
directly or indirectly, nor has any Person acting on behalf of or pursuant to any understanding with Purchaser, executed any purchases
or sales, including Short Sales, of the securities of the Company during the period commencing as of the time that such Purchaser
first received a written term sheet from the Company or any other Person representing the Company setting forth the material terms
of the transactions contemplated hereby and ending immediately prior to the execution hereof.

 

(k) Limitation
of Representations. Anything to the contrary herein notwithstanding the Purchaser makes no representations or warranties with
regard to any laws, rules or regulation except with respect to the United States and its subdivisions and the jurisdiction of
its formation.

 

(l) Survival.
The foregoing representations and warranties shall survive the Closing.

 

The
Company acknowledges and agrees that the representations contained in Section 3.2 shall not modify, amend or affect such Purchaser’s
right to rely on the Company’s representations and warranties contained in this Agreement or any representations and warranties
contained in any other Transaction Document or any other document or instrument executed and/or delivered in connection with this
Agreement or the consummation of the transaction contemplated hereby.

 

    	 	23	 

     

    

 

ARTICLE
IV.

OTHER
AGREEMENTS OF THE PARTIES

 

4.1 Transfer
Restrictions.

 

(a) The
Securities may only be disposed of in compliance with state and federal securities laws. In connection with any transfer of Securities
other than pursuant to an effective registration statement or Rule 144, to the Company or to an Affiliate of a Purchaser or in
connection with a pledge as contemplated in Section 4.1(b), the Company may require the transferor thereof to provide to the Company,
at the Company’s expense, an opinion of counsel selected by the transferor and reasonably acceptable to the Company, the
form and substance of which opinion shall be reasonably satisfactory to the Company, to the effect that such transfer does not
require registration of such transferred Securities under the Securities Act. As a condition of transfer, any such transferee
shall agree in writing to be bound by the terms of this Agreement and shall have the rights and obligations of a Purchaser under
this Agreement and the other Transaction Documents.

 

(b) Legend.
The Purchasers agree to the imprinting, so long as is required by this Section 4.1, of a legend on any of the Securities in the
following form:

 

[NEITHER]
THIS SECURITY [NOR THE SECURITIES INTO WHICH THIS SECURITY IS [EXERCISABLE] [CONVERTIBLE]] HAS [NOT] BEEN REGISTERED
WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION
UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD
EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR
IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES
LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE
TO THE COMPANY. THIS SECURITY [AND THE SECURITIES ISSUABLE UPON [EXERCISE] [CONVERSION] OF THIS SECURITY] MAY BE PLEDGED
IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT WITH A REGISTERED BROKER-DEALER OR OTHER LOAN WITH A FINANCIAL INSTITUTION THAT
IS AN “ACCREDITED INVESTOR” AS DEFINED IN RULE 501(a) UNDER THE SECURITIES ACT OR OTHER LOAN SECURED BY SUCH SECURITIES.

 

(c) Pledge.
The Company acknowledges and agrees that a Purchaser may from time to time pledge pursuant to a bona fide margin agreement with
a registered broker-dealer or grant a security interest in some or all of the Securities to a financial institution that is an
“accredited investor” as defined in Rule 501(a) under the Securities Act and who agrees to be bound by the provisions
of this Agreement and, if required under the terms of such arrangement, such Purchaser may transfer pledge or secure Securities
to the pledgees or secured parties. Such a pledge or transfer would not be subject to approval of the Company and no legal opinion
of legal counsel of the pledgee, secured party or pledgor shall be required in connection therewith. Further, no notice shall
be required of such pledge. At the appropriate Purchaser’s expense, the Company will execute and deliver such reasonable
documentation as a pledgee or secured party of Securities may reasonably request in connection with a pledge or transfer of the
Securities.

 

    	 	24	 

     

    

 

(d) Legend
Removal. Certificates evidencing the Underlying Shares shall not be required to contain any legend (“Unlegended Shares”)
(including the legend set forth in Section 4.1(b) hereof): (i) while any registration statement (including the Registration Statement)
covering the resale of such security is effective under the Securities Act, (ii) following any sale of such Underlying Shares
pursuant to Rule 144, (iii) if such Underlying Shares are eligible for sale under Rule 144, without the requirement for the Company
to be in compliance with the current public information required under Rule 144 as to such Underlying Shares and without volume
or manner-of-sale restrictions or (iv) if such legend is not required under applicable requirements of the Securities Act (including
judicial interpretations and pronouncements issued by the staff of the Commission). The Company shall cause its counsel or other
counsel reasonably acceptable to Purchaser to issue a legal opinion to the Transfer Agent during the time any of the aforedescribed
conditions apply, to effect the removal of the legend hereunder. If all or any Notes are converted or any portion of a Warrant
is exercised at a time when there is an effective registration statement to cover the resale of the Underlying Shares, or if such
Underlying Shares may be sold under Rule 144 or if such legend is not otherwise required under applicable requirements of the
Securities Act (including judicial interpretations and pronouncements issued by the staff of the Commission) then such Underlying
Shares shall be issued free of all legends. The Company agrees that following such time as such legend is no longer required under
this Section 4.1(d), it will, no later than five Trading Days following the delivery by a Purchaser to the Company or the Transfer
Agent of a certificate representing Underlying Shares, as applicable, issued with a restrictive legend (such fifth Trading Day,
the “Legend Removal Date”), deliver or cause to be delivered to such Purchaser a certificate representing such
shares that is free from all restrictive and other legends (however, the Corporation shall use reasonable best efforts to deliver
such shares within three Trading Days after delivery by Purchaser of such unlegended Share certificate). The Company may not make
any notation on its records or give instructions to the Transfer Agent that enlarge the restrictions on transfer set forth in
this Section 4.1. Certificates for Underlying Shares subject to legend removal hereunder shall be transmitted by the Transfer
Agent to the Purchaser by crediting the account of the Purchaser’s prime broker with the Depository Trust Company System
as directed by such Purchaser.

 

(e) Legend
Removal Default. In addition to such Purchaser’s other available remedies, provided the conditions for legend removal
set forth in Section 4.1(d) exist, the Company shall pay to a Purchaser, in cash, as partial liquidated damages and not as a penalty,
for each $1,000 of Underlying Shares (based on the higher of the actual purchase price or VWAP of the Ordinary Shares on the date
such Securities are submitted to the Transfer Agent) delivered for removal of the restrictive legend and subject to Section 4.1(d),
$10 per Trading Day for each Trading Day commencing the first Trading Day after the Legend Removal Date (increasing to $20 per
Trading Day after such fifth Trading Day) until such certificate is delivered without a legend. Nothing herein shall limit such
Purchaser’s right to pursue actual damages for the Company’s failure to deliver certificates representing any Securities
as required by the Transaction Documents, and such Purchaser shall have the right to pursue all remedies available to it at law
or in equity including, without limitation, a decree of specific performance and/or injunctive relief.

 

(f) DWAC.
In lieu of delivering physical certificates representing the Unlegended Shares, upon request of a Purchaser, so long as the certificates
therefor do not bear a legend and the Purchaser is not obligated to return such certificate for the placement of a legend thereon,
the Company shall cause its transfer agent to electronically transmit the Unlegended Shares by crediting the account of Purchaser’s
prime broker with the Depository Trust Company through its Deposit Withdrawal At Custodian system, provided that the Company’s
Ordinary Shares is DTC eligible and the Company’s transfer agent participates in the Deposit Withdrawal at Custodian system.
Such delivery must be made on or before the Legend Removal Date.

 

    	 	25	 

     

    

 

(g) Injunction.
In the event a Purchaser shall request delivery of Unlegended Shares as described in this Section 4.1 and the Company is required
to deliver such Unlegended Shares, the Company may not refuse to deliver Unlegended Shares based on any claim that such Purchaser
or anyone associated or affiliated with such Purchaser has not complied with Purchaser’s obligations under the Transaction
Documents, or for any other reason, unless, an injunction or temporary restraining order from a court, on notice, restraining
and or enjoining delivery of such Unlegended Shares shall have been sought and obtained by the Company and the Company has posted
a surety bond for the benefit of such Purchaser in the amount of the greater of (i) 120% of the amount of the aggregate purchase
price of the Underlying Shares to be subject to the injunction or temporary restraining order, or (ii) the VWAP of the Ordinary
Shares on the trading day before the issue date of the injunction multiplied by the number of Unlegended Shares to be subject
to the injunction, which bond shall remain in effect until the completion of arbitration/litigation of the dispute and the proceeds
of which shall be payable to such Purchaser to the extent Purchaser obtains judgment in Purchaser’s favor.

 

(h) Buy-In.
In addition to any other rights available to Purchaser, if the Company fails to deliver to a Purchaser Unlegended Shares as required
pursuant to this Agreement and after the Legend Removal Date the Purchaser, or a broker on the Purchaser’s behalf, purchases
(in an open market transaction or otherwise) Ordinary Shares to deliver in satisfaction of a sale by such Purchaser of the Ordinary
Shares which the Purchaser was entitled to receive in unlegended form from the Company (a “Buy-In”), then the
Company shall promptly pay in cash to the Purchaser (in addition to any remedies available to or elected by the Purchaser) the
amount, if any, by which (A) the Purchaser’s total purchase price (including brokerage commissions, if any) for the Ordinary
Shares so purchased exceeds (B) the aggregate purchase price of the Ordinary Shares delivered to the Company for reissuance as
Unlegended Shares together with interest thereon at a rate of 15% per annum accruing until such amount and any accrued interest
thereon is paid in full (which amount shall be paid as liquidated damages and not as a penalty). For example, if a Purchaser purchases
Ordinary Shares having a total purchase price of $11,000 to cover a Buy-In with respect to $10,000 of purchase price of Shares
delivered to the Company for reissuance as Unlegended Shares, the Company shall be required to pay the Purchaser $1,000, plus
interest, if any. The Purchaser shall provide the Company written notice indicating the amounts payable to the Purchaser in respect
of the Buy-In.

 

(i) Plan
of Distribution. Each Purchaser, severally and not jointly with the other Purchasers, agrees with the Company that such Purchaser
will sell any Securities pursuant to either the registration requirements of the Securities Act, including any applicable prospectus
delivery requirements, or an exemption therefrom, and that if Securities are sold pursuant to a registration statement, they will
be sold in compliance with the plan of distribution set forth therein, and acknowledges that the removal of the restrictive legend
from certificates representing Securities as set forth in this Section 4.1 is predicated upon the Company’s reliance upon
this understanding.

 

4.2 Acknowledgment
of Dilution. The Company acknowledges that the issuance of the Securities may result in dilution of the outstanding Ordinary
Shares, which dilution may be substantial under certain market conditions. The Company further acknowledges that its obligations
under the Transaction Documents, including, without limitation, its obligation to issue the Underlying Shares pursuant to the
Transaction Documents, are unconditional and absolute and not subject to any right of set off, counterclaim, delay or reduction,
regardless of the effect of any such dilution or any claim the Company may have against any Purchaser and regardless of the dilutive
effect that such issuance may have on the ownership of the other stockholders of the Company.

 

    	 	26	 

     

    

 

4.3 Furnishing
of Information; Public Information; Domestic Issuances; Filing Requirements.

 

(a) Until
the earliest of the time that (i) no Purchaser owns Securities or (ii) the Warrants have expired, the Company covenants to file
all required periodic reports with the Commission pursuant to Section 15(d) of the Exchange Act and under Section 12(b) or 12(g)
of the Exchange Act, maintain the registration of the Ordinary Shares under Section 12(b) or 12(g) of the Exchange Act and to
timely file (or obtain extensions in respect thereof and file within the applicable grace period) all reports required to be filed
by the Company after the date hereof pursuant to the Exchange Act and file such reports even if the Company is not then subject
to the reporting requirements of the Exchange Act.

 

(b) At
any time commencing on the Closing Date and ending at such time that all of the Securities may be sold without the requirement
for the Company to be in compliance with Rule 144(c)(1) and otherwise without restriction or limitation pursuant to Rule 144,
if the Company shall fail for any reason to satisfy the current public information requirement under Rule 144(c) (a “Public
Information Failure”), with respect to those securities that cannot be so sold, then, in addition to such Purchaser’s
other available remedies, the Company shall pay to a Purchaser, in cash, as partial liquidated damages and not as a penalty, by
reason of any such delay in or reduction of its ability to sell the Securities, an amount in cash equal to one percent (1%) of
the aggregate principal amount of Notes and accrued interest thereon, aggregate Exercise Price of Warrant Shares held by such
Purchaser on the day of a Public Information Failure and on every thirtieth (30th) day (pro-rated for periods totaling less than
thirty days) thereafter until the earlier of (a) the date such Public Information Failure is cured and (b) such time that such
public information is no longer required for the Purchasers to transfer the Underlying Shares pursuant to Rule 144. The payments
to which a Purchaser shall be entitled pursuant to this Section 4.3(b) are referred to herein as “Public Information
Failure Payments.” Public Information Failure Payments shall be paid on the earlier of (i) the last day of the calendar
month during which such Public Information Failure Payments are incurred and (ii) the third (3rd) Business Day after the event
or failure giving rise to the Public Information Failure Payments is cured. In the event the Company fails to make Public Information
Failure Payments in a timely manner, such Public Information Failure Payments shall bear interest at the rate of 1.5% per month
(prorated for partial months) until paid in full. Nothing herein shall limit such Purchaser’s right to pursue actual damages
for the Public Information Failure, and such Purchaser shall have the right to pursue all remedies available to it at law or in
equity including, without limitation, a decree of specific performance and/or injunctive relief.

 

(c) The
Company agrees to file a form 10-Q for the quarter ending September 30, 2017 in compliance with the substance and filing time
such Form 10-Q would be required to be filed by a company subject to the filing requirements of Section 13 and 15(d) of the Exchange
Act; or a Form 6-K if not required to file such Form 10-Q and file such Form 6-K by the time and in the form otherwise applicable
to a company filing a Form 10-Q pursuant to Section 15(d) of the Exchange Act.

 

4.4 Integration.
The Company shall not sell, offer for sale or solicit offers to buy or otherwise negotiate in respect of any security (as defined
in Section 2 of the Securities Act) that would be integrated with the offer or sale of the Securities in a manner that would require
the registration under the Securities Act of the sale of the Securities or that would be integrated with the offer or sale of
the Securities for purposes of the rules and regulations of any Trading Market such that it would require shareholder approval
prior to the closing of such other transaction or to effectuate such other transaction unless shareholder approval is obtained
before the earlier of the closing of such subsequent transaction or effectuation of such other transaction.

 

4.5 Conversion
and Exercise Procedures. Each of the form of Notice of Exercise included in the Warrants and the form of Notice of Conversion
included in the Notes set forth the totality of the procedures required of the Purchasers in order to exercise the Warrants or
convert the Notes. No additional legal opinion, other information or instructions shall be required of the Purchasers to exercise
their Warrants or convert their Notes. The Company shall honor exercises of the Warrants and conversions of the Notes and shall
deliver Underlying Shares in accordance with the terms, conditions and time periods set forth in the Transaction Documents.

 

    	 	27	 

     

    

 

4.6 Securities
Laws Disclosure; Publicity. The Company shall on or before the fourth Trading Day following the Closing Date, file a Current
Report on Form 6-K including the Transaction Documents as exhibits thereto with the Commission (“Form 6-K”).
A form of the Form 6-K is annexed hereto as Exhibit D. Such Exhibit D will be identical to the Form 6-K which will
be filed with the Commission except for the omission of signatures thereto by the Company and auditors providing the financial
statements. From and after the filing of the Form 6-K, the Company represents to the Purchasers that it shall have publicly disclosed
all material, non-public information delivered to any of the Purchasers by the Company or any Subsidiary, or any of their respective
officers, directors, employees or agents in connection with the transactions contemplated by the Transaction Documents. The Company
and each Purchaser shall consult with each other in issuing any press releases with respect to the transactions contemplated hereby,
and neither the Company nor any Purchaser shall issue any press release nor otherwise make any such public statement without the
prior consent of the Company, with respect to any press release of any Purchaser, or without the prior consent of each Purchaser,
with respect to any press release of the Company, which consent shall not unreasonably be withheld or delayed, except if such
disclosure is required by law, in which case the disclosing party shall promptly provide the other party with prior notice of
such public statement or communication. Notwithstanding the foregoing, the Company shall not publicly disclose the name of any
Purchaser, or include the name of any Purchaser in any filing with the Commission or any regulatory agency or Trading Market unless
the name of such Purchaser is already included in the body of the Transaction Documents, without the prior written consent of
such Purchaser, except: (a) as required by applicable federal securities law in connection with the filing of final Transaction
Documents with the Commission and (b) to the extent such disclosure is required by law or Trading Market regulations, in which
case the Company shall provide the Purchasers with prior notice of such disclosure permitted under this clause (b).

 

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

 

4.8 Non-Public
Information. Except with respect to the material terms and conditions of the transactions contemplated by the Transaction
Documents, the Company covenants and agrees that neither it, nor any other Person acting on its behalf, will provide any Purchaser
or its agents or counsel with any information that the Company believes constitutes material non-public information, unless prior
thereto such Purchaser shall have entered into a written agreement with the Company regarding the confidentiality and use of such
information. The Company understands and confirms that each Purchaser shall be relying on the foregoing covenant in effecting
transactions in securities of the Company.

 

4.9 Use
of Proceeds. The Company shall use the net proceeds from the sale of the Offering hereunder substantially for the purposes
set forth on Schedule 4.9 hereto and shall not use such proceeds: , (a) for the redemption of any Ordinary Shares or Ordinary
Shares Equivalents, (b) for the settlement of any outstanding litigation or (c) in violation of FCPA or OFAC regulations.

 

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4.10 Indemnification
of Purchasers. Subject to the provisions of this Section 4.10, the Company will indemnify and hold each Purchaser and its
directors, officers, shareholders, members, partners, employees and agents (and any other Persons with a functionally equivalent
role of a Person holding such titles notwithstanding a lack of such title or any other title), each Person who controls such Purchaser
(within the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act), and the directors, officers, shareholders,
agents, members, partners or employees (and any other Persons with a functionally equivalent role of a Person holding such titles
notwithstanding a lack of such title or any other title) of such controlling persons (each, a “Purchaser Party”) harmless
from any and all losses, liabilities, obligations, claims, contingencies, damages, costs and expenses, including all judgments,
amounts paid in settlements, court costs and reasonable attorneys’ fees and costs of investigation that any such Purchaser
Party may suffer or incur as a result of or relating to (a) any breach of any of the representations, warranties, covenants or
agreements made by the Company in this Agreement or in the other Transaction Documents or (b) any action instituted against Purchaser
Parties in any capacity, or any of them or their respective Affiliates, by any stockholder of the Company who is not an Affiliate
of such Purchaser Party, with respect to any of the transactions contemplated by the Transaction Documents (unless such action
is based upon a breach of such Purchaser Party’s representations, warranties or covenants under the Transaction Documents
or any agreements or understandings such Purchaser Party may have with any such stockholder or any violations by such Purchaser
Party of state or federal securities laws or any conduct by such Purchaser Party which constitutes fraud, gross negligence, willful
misconduct or malfeasance). If any action shall be brought against any Purchaser Party in respect of which indemnity may be sought
pursuant to this Agreement, such Purchaser Party shall promptly notify the Company in writing, and the Company shall have the
right to assume the defense thereof with counsel of its own choosing reasonably acceptable to the Purchaser Party. Any Purchaser
Party shall have the right to employ separate counsel in any such action and participate in the defense thereof, but the fees
and expenses of such counsel shall be at the expense of such Purchaser Party except to the extent that (i) the employment thereof
has been specifically authorized by the Company in writing, (ii) the Company has failed after a reasonable period of time to assume
such defense and to employ counsel or (iii) in such action there is, in the reasonable opinion of counsel, a material conflict
on any material issue between the position of the Company and the position of such Purchaser Party, in which case the Company
shall be responsible for the reasonable fees and expenses of no more than one such separate counsel for all Purchaser Parties.
The Company will not be liable to any Purchaser Party under this Agreement (y) for any settlement by a Purchaser Party effected
without the Company’s prior written consent, which shall not be unreasonably withheld or delayed; or (z) to the extent,
but only to the extent that a loss, claim, damage or liability is attributable to any Purchaser Party’s breach of its material
representations, warranties or covenants under the Transaction Documents. The indemnification required by this Section 4.10 shall
be made by periodic payments of the amount thereof during the course of the investigation or defense, as and when bills are received
or are incurred. The indemnity agreements contained herein shall be in addition to any cause of action or similar right of any
Purchaser Party against the Company or others and any liabilities the Company may be subject to pursuant to law.

 

4.11 Reservation
and Listing of Securities.

 

(a) The
Company shall maintain a reserve from its duly authorized Ordinary Shares for issuance pursuant to the Transaction Documents in
such amount as may then be required to fulfill its obligations in full under the Transaction Documents, but not less than the
Required Minimum.

 

(b) If,
on any date, the number of authorized but unissued (and otherwise unreserved) Ordinary Shares is less than the Required Minimum
on such date, then the Board of Directors shall amend the Company’s certificate or articles of incorporation to increase
the number of authorized but unissued Ordinary Shares to at least the Required Minimum at such time, as soon as possible and in
any event not later than the 60th day after such date.

 

    	 	29	 

     

    

 

(c) The
Company shall prior to the Closing, if applicable: (i) in the time and manner required by the principal Trading Market, prepare
and file with such Trading Market an additional shares listing application covering a number of Ordinary Shares at least equal
to the Required Minimum on the date of such application, (ii) take all steps necessary to cause such Ordinary Shares to be approved
for listing or quotation on such Trading Market as soon as possible thereafter, (iii) provide to the Purchasers evidence of such
listing or quotation and (iv) maintain the listing or quotation of such Ordinary Shares on any date at least equal to the Required
Minimum on such date on such Trading Market or another Trading Market. The Company will take all action necessary to continue
the listing or quotation and trading of its Ordinary Shares on a Trading Market until the later of (i) at least five years after
the Closing Date, and (ii) for so long as the Notes or Warrants are outstanding, and will comply in all respects with the Company’s
reporting, filing and other obligations under the bylaws or rules of the Trading Market. In the event the aforedescribed listing
is not continuously maintained for five years after the Closing Date and for so long as Notes or Warrants are outstanding (a “Listing
Default”), then in addition to any other rights the Purchasers may have hereunder or under applicable law, on the first
day of a Listing Default and on each monthly anniversary of each such Listing Default date (if the applicable Listing Default
shall not have been cured by such date) until the applicable Listing Default is cured, the Company shall pay to each Purchaser
an amount in cash, as partial liquidated damages and not as a penalty, equal to one percent (1%) of the aggregate principal amount
of Notes, conversion price of Conversion Shares, and purchase price of Warrant Shares held by such Purchaser or which may be acquired
upon exercise of Warrants on the day of a Listing Default and on every thirtieth day (pro-rated for periods less than thirty days)
thereafter until the date such Listing Default is cured. If the Company fails to pay any liquidated damages pursuant to this Section
in a timely manner, the Company will pay interest thereon at a rate of 1.5% per month (pro-rated for partial months) to the Purchaser.

 

4.12 Form
D; Blue Sky Filings. The Company agrees to timely file a Form D with respect to the Securities as required under Regulation
D and to provide a copy thereof, promptly upon request of any Purchaser. The Company shall take such action as the Company shall
reasonably determine is necessary in order to obtain an exemption for, or to qualify the Securities for, sale to the Purchasers
at a Closing under applicable securities or “Blue Sky” laws of the states of the United States, and shall provide
evidence of such actions promptly upon request of any Purchaser.

 

4.13 Subsequent
Equity Sales. From the date hereof until such time as the Notes are no longer outstanding, the Company will not, without the
consent of a Majority in Interest, enter into nor allow the exercise of any Equity Line of Credit or similar agreement including
the Outstanding Equity Line, which shall remain inactive through such date, issue or agree to issue floating or Variable Priced
Equity Linked Instruments nor issue or agree to issue any of the foregoing or equity with price reset rights (subject to adjustment
for stock splits, distributions, dividends, recapitalizations and the like) (collectively, a “Variable Rate Transaction”).
For purposes hereof, “Equity Line of Credit” shall include any transaction involving a written agreement between
the Company and an investor or underwriter or an investor or underwriter has the right to “call” the Company’s
securities whereby the Company has the right to “put” its securities to the investor or underwriter over an agreed
period of time and at an agreed price or price formula, and “Variable Priced Equity Linked Instruments” shall
include: (A) any debt or equity securities which are convertible into, exercisable or exchangeable for, or carry the right to
receive additional Ordinary Shares or Ordinary Shares Equivalents or any of the foregoing at a price that can be reduced either
(1) at any conversion, exercise or exchange rate or other price that is based upon and/or varies with the trading prices of or
quotations for Ordinary Shares at any time after the initial issuance of such debt or equity security, or (2) with a fixed conversion,
exercise or exchange price that is subject to being reset at some future date at any time after the initial issuance of such debt
or equity security due to a change in the market price of the Company’s Ordinary Shares since date of initial issuance,
or upon the issuance of any debt, equity or Ordinary Shares Equivalent, and (B) any amortizing convertible security which amortizes
prior to its maturity date, where the Company is required or has the option to (or any investor in such transaction has the option
to require the Company to) make such amortization payments in Ordinary Shares which are valued at a price that is based upon and/or
varies with the trading prices of or quotations for Ordinary Shares at any time after the initial issuance of such debt or equity
security (whether or not such payments in stock are subject to certain equity conditions).  For purposes of determining the
total consideration for a convertible instrument (including a right to purchase equity of the Company) issued, subject to an original
issue or similar discount or which principal amount is directly or indirectly increased after issuance, the consideration will
be deemed to be the actual net cash amount received by the Company in consideration of the original issuance of such convertible
instrument. For so long as the Notes are outstanding, the Company will not, without the consent of a Majority in Interest, issue
any Ordinary Shares or Ordinary Shares Equivalents to officers, directors, and employees of the Company unless such issuance is
an Exempt Issuance or in the amounts and on the terms set forth on Schedule 4.13. For so long as any Notes are outstanding, the
Company will not amend the terms of any securities or Ordinary Shares Equivalents or of any agreement outstanding or in effect
as of the date of this Agreement pursuant to which same were or may be acquired without the consent of a Majority in Interest,
if the result of such amendment would be at an effective price per share of Ordinary Shares less than the lower of the Conversion
Price or Warrant Exercise Price in effect at the time of such amendment. The restrictions and limitations in this Section 4.13
are in addition to and shall apply whether or not a Purchaser exercises its rights pursuant to Section 4.17. Unless otherwise
specifically set forth in the Transaction Documents, these Transaction Documents shall not restrict the Company from issuing any
equity.

 

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4.14 Equal
Treatment of Purchasers. No consideration (including any modification of any Transaction Document) shall be offered or paid
to any Person to amend or consent to a waiver or modification of any provision of any of this Agreement unless the same consideration
is also offered on a ratable basis to all of the parties to this Agreement. For clarification purposes, this provision constitutes
a separate right granted to each Purchaser by the Company and negotiated separately by each Purchaser, and is intended for the
Company to treat the Purchasers as a class and shall not in any way be construed as the Purchasers acting in concert or as a group
with respect to the purchase, disposition or voting of Securities or otherwise.

 

4.15 Capital
Changes. Until the one year anniversary of the Closing Date, the Company shall not undertake a reverse or forward stock split
or reclassification of the Ordinary Shares without ten (10) days prior written notice to the Purchasers.

 

4.16 Certain
Transactions and Confidentiality. Each Purchaser, severally and not jointly with the other Purchasers, covenants that neither
it, nor any Affiliate acting on such Purchaser’s behalf or pursuant to any understanding with such Purchaser will execute
any purchases or sales, including Short Sales, of any of the Company’s securities during the period commencing with the
execution of this Agreement and ending at such time that the transactions contemplated by this Agreement are first publicly announced
pursuant to a press release or Form 6-K as described in Section 4.6.  Each Purchaser, severally and not jointly with the
other Purchasers, covenants that until such time as the transactions contemplated by this Agreement are publicly disclosed by
the Company pursuant to a press release or Form 6-K as described in Section 4.6, such Purchaser will maintain the confidentiality
of the existence and terms of this transaction and the information included in the Transaction Documents and the Disclosure Schedules.
Further, each Purchaser severally and not jointly with the other Purchasers covenants that neither it, nor any of its Affiliates
will engage in any Short Sale transactions at any time while it beneficially owns any Securities. Notwithstanding the foregoing,
and notwithstanding anything contained in this Agreement to the contrary, the Company expressly acknowledges and agrees that (i)
no Purchaser makes any representation, warranty or covenant hereby that it will not engage in effecting transactions in any securities
of the Company after the time that the transactions contemplated by this Agreement are first publicly announced pursuant to a
press release or Form 6-K as described in Section 4.6, (ii) no Purchaser shall be restricted or prohibited from effecting any
transactions in any securities of the Company in accordance with applicable securities laws from and after the time that the transactions
contemplated by this Agreement are first publicly announced pursuant to a press release or Form 6-K, and (iii) no Purchaser shall
have any duty of confidentiality to the Company or its Subsidiaries after the filing of the Form 6-K.  Notwithstanding the
foregoing, in the case of a Purchaser that is a multi-managed investment vehicle whereby separate portfolio managers manage separate
portions of such Purchaser’s assets and the portfolio managers have no direct knowledge of the investment decisions made
by the portfolio managers managing other portions of such Purchaser’s assets, the covenant set forth above shall only apply
with respect to the portion of assets managed by the portfolio manager that made the investment decision to purchase the Securities
covered by this Agreement.

 

    	 	31	 

     

    

 

4.17 Participation
in Future Financing.

 

(a) Until
eighteen (18) months after the Closing Date upon any proposed issuance by the Company or any of its Subsidiaries of Ordinary Shares,
Ordinary Shares Equivalents, Indebtedness or a combination thereof, other than (i) a rights offering to all holders of Ordinary
Shares (which may include extending such rights offering to holders of Notes on an as-converted basis), or (ii) an Exempt Issuance
(each such proposed issuance other than (a) (i) and (ii), a “Subsequent Financing”), the Purchasers, the Previous
Purchaser and the Subsequent Purchasers shall have the right to participate up to an amount of the Subsequent Financing equal
to 50% of the Subsequent Financing (the “Participation Maximum”) pro rata to each other in proportion to principal
amounts of indebtedness issued on the Closing Date and any other applicable closing dates pursuant to which Subsequent Purchasers
purchased securities on the same terms, conditions and price provided for in the Subsequent Financing, unless the Subsequent Financing
is an underwritten public offering, in which case the Company shall notify each Purchaser of such public offering when it is lawful
for the Company to do so, but no Purchaser shall be entitled to purchase any particular amount of such public offering without
the approval of the lead underwriter of such underwritten public offering.

 

(b) At
least ten (10) Trading Days prior to the closing of the Subsequent Financing, the Company shall deliver to each Purchaser a written
notice of its intention to effect a Subsequent Financing (“Pre-Notice”), which Pre-Notice shall ask such Purchaser
if it wants to review the details of such financing (such additional notice, a “Subsequent Financing Notice”).
Upon the request of a Purchaser, and only upon a request by such Purchaser, for a Subsequent Financing Notice, the Company shall
promptly, but no later than one (1) Trading Day after such request, deliver a Subsequent Financing Notice to such Purchaser. The
requesting Purchaser shall be deemed to have acknowledged that the Subsequent Financing Notice may contain material non-public
information. The Subsequent Financing Notice shall describe in reasonable detail the proposed terms of such Subsequent Financing,
the amount of proceeds intended to be raised thereunder and the Person or Persons through or with whom such Subsequent Financing
is proposed to be effected and shall include a term sheet or similar document relating thereto as an attachment.

 

(c) Any
Purchaser desiring to participate in such Subsequent Financing must provide written notice to the Company by not later than 5:30
p.m. (New York City time) on the tenth (10th) Trading Day after all of the Purchasers have received the Pre-Notice
that the Purchaser is willing to participate in the Subsequent Financing, the amount of such Purchaser’s participation,
and representing and warranting that such Purchaser has such funds ready, willing, and available for investment on the terms set
forth in the Subsequent Financing Notice. If the Company receives no such notice from a Purchaser as of such tenth (10th)
Trading Day, such Purchaser shall be deemed to have notified the Company that it does not elect to participate.

 

(d) If
by 5:30 p.m. (New York City time) on the tenth (10th ) Trading Day after all of the Purchasers have received the Pre-Notice,
notifications by the Purchasers of their willingness to participate in the Subsequent Financing (or to cause their designees to
participate) is, in the aggregate, less than the total amount of the Subsequent Financing, then the Company may affect the remaining
portion of such Subsequent Financing on the terms and with the Persons set forth in the Subsequent Financing Notice and the Purchasers
shall simultaneously affect their portion of such Subsequent Financing as set forth in their notifications to the Company consistent
with the terms set forth in the Subsequent Financing Notice.

 

    	 	32	 

     

    

 

(e) If
by 5:30 p.m. (New York City time) on the tenth (10th) Trading Day after all of the Purchasers have received the Pre-Notice,
the Company receives responses to a Subsequent Financing Notice from Purchasers seeking to purchase more than the aggregate amount
of the Participation Maximum, each such Purchaser shall have the right to purchase its Pro Rata Portion (as defined below) of
the Participation Maximum.  “Pro Rata Portion” means the ratio of (x) the principal amount of Notes purchased
hereunder by a Purchaser participating under this Section 4.17 and (y) the sum of the aggregate principal amounts of Notes purchased
hereunder by all Purchasers participating under this Section 4.17.

 

(f) The
Company must provide the Purchasers with a second Subsequent Financing Notice, and the Purchasers will again have the right of
participation set forth above in this Section 4.18, if the Subsequent Financing subject to the initial Subsequent Financing Notice
is not consummated for any reason on the terms set forth in such Subsequent Financing Notice within sixty (60) Trading Days after
the date of the initial Subsequent Financing Notice.

 

(g) The
Company and each Purchaser agree that if any Purchaser elects to participate in the Subsequent Financing, the transaction documents
related to the Subsequent Financing shall not include any term or provision whereby such Purchaser shall be required to agree
to any restrictions on trading as to any of the Securities purchased hereunder (for avoidance of doubt, the securities purchased
in the Subsequent Financing shall not be considered securities purchased hereunder) or be required to consent to any amendment
to or termination of, or grant any waiver, release or the like under or in connection with, this Agreement, without the prior
written consent of such Purchaser.

 

(h) Notwithstanding
anything to the contrary in this Section 4.17 and unless otherwise agreed to by such Purchaser, the Company shall either confirm
in writing to such Purchaser that the transaction with respect to the Subsequent Financing has been abandoned or shall publicly
disclose its intention to issue the securities in the Subsequent Financing, in either case in such a manner such that such Purchaser
will not be in possession of any material, non-public information, by the seventeenth (17th) Business Day following
delivery of the Subsequent Financing Notice. If by such seventeenth (17th) Business Day, no public disclosure regarding
a transaction with respect to the Subsequent Financing has been made, and no notice regarding the abandonment of such transaction
has been received by such Purchaser, such transaction shall be deemed to have been abandoned and such Purchaser shall not be deemed
to be in possession of any material, non-public information with respect to the Company or any of its Subsidiaries.

 

4.18 Purchaser’s
Exercise Limitations. The Company shall not effect exercise of the rights granted in Sections 4.17 of this Agreement, and
a Purchaser shall not have the right to exercise any portion of such rights granted in Sections 4.17 only to the extent that after
giving effect to such exercise, the Purchaser, would beneficially own in excess of the Beneficial Ownership Limitation (as defined
in the Note), applied in the manner set forth in the Note. In such event the right by Purchaser to benefit from such rights or
receive shares in excess of the Beneficial Ownership Limitation shall be held in abeyance until such times as such excess shares
shall not exceed the Beneficial Ownership Limitation, provided the Purchaser complies with the Purchaser’s other obligations
in connection with the exercise by Purchaser of its rights pursuant to Sections 4.17.

 

4.19 Maintenance
of Property. The Company shall and cause each Subsidiary to keep all of its property, which is necessary or useful to the
conduct of its business, in good working order and condition, ordinary wear and tear excepted.

 

    	 	33	 

     

    

 

4.20 Preservation
of Corporate Existence. The Company shall preserve and maintain its corporate existence, rights, privileges and franchises
in the jurisdiction of its incorporation, and qualify and remain qualified, as a foreign corporation in each jurisdiction in which
such qualification is necessary in view of its business or operations and where the failure to qualify or remain qualified might
reasonably have a Material Adverse Effect upon the financial condition, business or operations of the Company taken as a whole.

 

4.21 DTC
Program. At all times that Notes or Warrants are outstanding, the Company shall employ as the transfer agent for its Ordinary
Shares and Underlying Shares a participant in the Depository Trust Company Automated Securities Transfer Program and cause the
Ordinary Shares and Underlying Shares to be transferable pursuant to such program.

 

4.22 Reimbursement.
If any Purchaser becomes involved in any capacity in any Proceeding by or against any Person who is a stockholder of the Company
(except as a result of sales, pledges, margin sales and similar transactions by such Purchaser to or with any current stockholder),
solely as a result of such Purchaser’s acquisition of the Securities under this Agreement, the Company will reimburse such
Purchaser for its reasonable legal and other expenses (including the cost of any investigation preparation and travel in connection
therewith) incurred in connection therewith, as such expenses are incurred. The reimbursement obligations of the Company under
this paragraph shall be in addition to any liability which the Company may otherwise have, shall extend upon the same terms and
conditions to any Affiliates of the Purchasers who are actually named in such action, proceeding or investigation, and partners,
directors, agents, employees and controlling persons (if any), as the case may be, of the Purchasers and any such Affiliate, and
shall be binding upon and inure to the benefit of any successors, assigns, heirs and personal representatives of the Company,
the Purchasers and any such Affiliate and any such Person. The Company also agrees that neither the Purchasers nor any such Affiliates,
partners, directors, agents, employees or controlling persons shall have any liability to the Company or any Person asserting
claims on behalf of or in right of the Company solely as a result of acquiring the Securities under this Agreement.

 

4.23 Indebtedness.
For so long as any amount of Note principal is outstanding, the Company will not incur any new Indebtedness other than Permitted
Indebtedness, and will not issue convertible debt instruments described in subpart (f) of the definition of Exempt Issuance having
a principal amount of more than US$1,666,667, in the aggregate, without the consent of the Majority in Interest.

 

4.24 Notice
of Disqualification Events. The Company will notify the Purchasers in writing, prior to the Closing Date of (i) any Disqualification
Event relating to any Issuer Covered Person and (ii) any event that would, with the passage of time, become a Disqualification
Event relating to any Issuer Covered Person not otherwise disclosed herein or in the SEC Reports.

 

4.25 No
Exercise of Variable Priced Equity Linked Instruments. For so long as Notes are outstanding, the Company will not have outstanding
any exercisable Variable Priced Equity Linked Instruments, nor any debt or equity with anti-dilution, ratchet or reset rights,
except as set forth and described on Schedule 4.25.

 

4.26 Maintenance
of Property and Insurance. Until the End Date, the Company shall keep all of its property, which is necessary or useful to
the conduct of its business, in good working order and condition or in no worse condition than on the date hereof, if not in good
working order and condition, ordinary wear and tear excepted. Until the End Date, the Company will maintain insurance coverage
of the type customary for its industry and not less than the amount in effect as of the Closing Date.

 

    	 	34	 

     

    

 

4.27 Most
Favored Nation Provision.  From the date hereof and for so long as a Purchaser holds any Securities, in the event that
the Company issues or sells any Ordinary Shares or Ordinary Shares Equivalents pursuant to the Exempt Issuance described in subpart
(f) of the definition of Exempt Issuance other than to the Previous Purchaser pursuant to convertible notes or Ordinary Share
purchase warrants already sold to the Previous Purchaser and if a Purchaser then holding outstanding Securities reasonably believes
that any of the terms and conditions appurtenant to such issuance or sale are more favorable to such Subsequent Purchaser than
are the terms and conditions granted to the Purchasers hereunder, upon notice to the Company by such Purchaser within ten (10)
Trading Days after written notice (as described below) to Purchaser of such issuance or sale (which shall include a copy of all
agreements and documents employed in connection with such issuance), the Company shall amend the terms of this transaction as
to such Purchaser only, so as to give such Purchaser the benefit of such more favorable terms or conditions. The Company shall
provide each Purchaser with notice of any such proposed issuance or sale not later than ten (10) Trading Days before such issuance
or sale.

 

4.28 Duration
of Undertakings. Unless otherwise stated in this Article IV or pursuant to applicable law, all of the Company’s undertakings,
obligations and responsibilities set forth in Article IV of this Agreement shall remain in effect for at least so long as any
Securities remain outstanding.

 

ARTICLE
V.

MISCELLANEOUS

 

 

5.1 Termination. 
This Agreement may be terminated by any Purchaser or the Company, as to such Purchaser’s or the Company’s obligations
hereunder with respect to such Purchaser that have not yet been consummated, only and without any effect whatsoever on the obligations
between the Company and the other Purchasers, by written notice to the other parties, if the Closing has not been consummated
on or before August 29, 2017; provided, however, that such termination will not affect the right of any party to
sue for any breach by any other party (or parties).

 

5.2 Fees and
Expenses. At the Closing, the Company has agreed to pay G&M for the legal fees in connection with G&M’s representation
of Alpha Capital Anstalt (and no other Purchasers) and the Closing in the amount of $18,000. Except as expressly set forth in
the Transaction Documents and on Schedule 3.1(s), each party shall pay the fees and expenses of its advisers, counsel,
accountants and other experts, if any, and all other expenses incurred by such party incident to the negotiation, preparation,
execution, delivery and performance of this Agreement. The Company shall pay all Transfer Agent fees (including, without limitation,
any fees required for same-day processing of any instruction letter delivered by the Company and any conversion or exercise notice
delivered by a Purchaser) and stamp taxes and other taxes and duties (other than income and similar taxes), if any, levied in
connection with the delivery of any Securities to the Purchasers. All of the Purchasers are advised to seek the advice of their
own attorneys.

 

5.3 Entire
Agreement. The Transaction Documents, together with the exhibits and schedules thereto, contain the entire understanding of
the parties with respect to the subject matter hereof and thereof and supersede all prior agreements and understandings, oral
or written, with respect to such matters, which the parties acknowledge have been merged into such documents, exhibits and schedules.

 

    	 	35	 

     

    

 

5.4 Notices.
All notices, demands, requests, consents, approvals, and other communications required or permitted hereunder shall be in writing
and, unless otherwise specified herein, shall be (i) personally served, (ii) deposited in the mail, registered or certified, return
receipt requested, postage prepaid, (iii) delivered by reputable air courier service with charges prepaid, or (iv) transmitted
by hand delivery, telegram, or facsimile, addressed as set forth below or to such other address as such party shall have specified
most recently by written notice. Any notice or other communication required or permitted to be given hereunder shall be deemed
effective (a) upon hand delivery or delivery by facsimile, with accurate confirmation generated by the transmitting facsimile
machine, at the address or number designated below (if delivered on a business day during normal business hours where such notice
is to be received), or the first business day following such delivery (if delivered other than on a business day during normal
business hours where such notice is to be received) or (b) on the second business day following the date of mailing by express
courier service, fully prepaid, addressed to such address, or upon actual receipt of such mailing, whichever shall first occur.
The addresses for such communications shall be: (i) if to the Company, to: P.V. Nano Cell Ltd., c/o Corporation Service Company
1180 Avenue of the Americas, Suite 210, New York, NY 10036 with an additional copy by fax only to (which shall not constitute
notice): Greenberg Traurig, P.A., 333 S.E. 2nd Avenue, Miami, FL 33131, Attn: Robert L. Grossman, Esq., facsimile:
305-961-5756, and (ii) if to the Purchasers, to: the addresses and fax numbers indicated on the signature pages hereto, with an
additional copy by fax only to (which shall not constitute notice): Grushko & Mittman, P.C., 515 Rockaway Avenue, Valley Stream,
New York 11581, fax: (212) 697-3575. For so long as any notice may or be required to be given to the Company pursuant to the
transaction documents, the Company will maintain an address for notice purposes in New York, New York or Miami, Florida. Any notice
required to be given to the Company pursuant to the Transaction Documents will also be given via email to fernando@pvnanocell.com.
Failure to give such email notice or failure of such notice to be received shall under no circumstances be deemed a defect in
the giving of the required notice.

 

5.5 Amendments;
Waivers. No provision of this Agreement or the other Transaction Documents may be waived, modified, supplemented or amended
except in a written instrument signed, in the case of an amendment, by the Company and Purchasers holding at least a majority
in interest of the Securities issued pursuant to this Agreement then outstanding the “Majority in Interest”),
or, in the case of a waiver, by the party against whom enforcement of any such waived provision is sought. Whenever the term “consent
of the Purchasers” or a similar term is employed herein, it shall mean the consent of a Majority in Interest. For all provisions
of this Agreement requiring consent of a Majority in Interest other than with respect to an amendment of this Agreement or any
of the Transaction Documents, a Majority in Interest shall mean Purchasers and Subsequent Purchasers holding at least a majority
in interest of all securities issued in the Aggregate Offering at that time that have a right to consent to such action pursuant
to the applicable transaction documents, provided that in determining a Majority in Interest for this purpose, securities sold
to the Previous Purchaser shall not be included in the amount of securities sold in the Aggregate Offering. No waiver of any default
with respect to any provision, condition or requirement of this Agreement or the other Transaction Document shall be deemed to
be a continuing waiver in the future or a waiver of any subsequent default or a waiver of any other provision, condition or requirement
hereof, nor shall any delay or omission of any party to exercise any right hereunder in any manner impair the exercise of any
such right.

 

5.6 Headings.
The headings herein are for convenience only, do not constitute a part of this Agreement and shall not be deemed to limit or affect
any of the provisions hereof.

 

5.7 Successors
and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their successors and permitted
assigns. The Company may not assign this Agreement or any rights or obligations hereunder without the prior written consent of
each Purchaser (other than by merger). Following a Closing, any Purchaser may assign any or all of its rights under this Agreement
to any Person to whom such Purchaser assigns or transfers any Securities in compliance with this Agreement and applicable law,
provided that such transferee agrees in writing to be bound, with respect to the transferred Securities, by the provisions of
the Transaction Documents that apply to the “Purchasers.”

 

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5.8 No Third-Party
Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective successors and permitted
assigns and is not for the benefit of, nor may any provision hereof be enforced by, any other Person, except as otherwise set
forth in Section 4.10.

 

5.9 Governing
Law. All questions concerning the construction, validity, enforcement and interpretation of the Transaction Documents shall
be governed by and construed and enforced in accordance with the internal laws of the State of New York, without regard to the
principles of conflicts of law thereof. Each party agrees that all legal proceedings concerning the interpretations, enforcement
and defense of the transactions contemplated by this Agreement and any other Transaction Documents (whether brought against a
party hereto or its respective affiliates, directors, officers, shareholders, partners, members, employees or agents) shall be
commenced exclusively in the state and federal courts sitting in the City of New York. Each party hereby irrevocably submits to
the exclusive jurisdiction of the state and federal courts sitting in the City of New York, Borough of Manhattan for the adjudication
of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein (including
with respect to the enforcement of any of the Transaction Documents), and hereby irrevocably waives, and agrees not to assert
in any action, suit or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such
suit, action or proceeding is improper or is an inconvenient venue for such proceeding. Each party hereby irrevocably waives personal
service of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof via registered
or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under
this Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing
contained herein shall be deemed to limit in any way any right to serve process in any other manner permitted by law. If either
party shall commence an action or proceeding to enforce any provisions of the Transaction Documents, then, in addition to the
obligations of the Company under Section 4.10, the prevailing party in such action, suit or proceeding shall be reimbursed by
the other party for its reasonable attorneys’ fees and other costs and expenses incurred with the investigation, preparation
and prosecution of such action or proceeding.

 

5.10 Survival.
The representations and warranties contained herein shall survive the Closing and the delivery of the Securities.

 

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

 

5.12 Severability.
If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction to be invalid,
illegal, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein shall remain
in full force and effect and shall in no way be affected, impaired or invalidated, and the parties hereto shall use their commercially
reasonable efforts to find and employ an alternative means to achieve the same or substantially the same result as that contemplated
by such term, provision, covenant or restriction. It is hereby stipulated and declared to be the intention of the parties that
they would have executed the remaining terms, provisions, covenants and restrictions without including any of such that may be
hereafter declared invalid, illegal, void or unenforceable.

 

    	 	37	 

     

    

 

5.13 Rescission
and Withdrawal Right. Notwithstanding anything to the contrary contained in (and without limiting any similar provisions of)
any of the other Transaction Documents, whenever any Purchaser exercises a right, election, demand or option under a Transaction
Document and the Company does not timely perform its related obligations within the periods therein provided, then such Purchaser
may, at any time prior to the Company’s performance of such obligations, rescind or withdraw, in its sole discretion from
time to time upon written notice to the Company, any relevant notice, demand or election in whole or in part without prejudice
to its future actions and rights; provided, however, that in the case of a rescission of a conversion of a Note or exercise of
a Warrant, the applicable Purchaser shall be required to return any Ordinary Shares subject to any such rescinded conversion or
exercise notice concurrently with the return to such Purchaser of the aggregate Exercise Price paid to the Company for such shares
and the restoration of such Purchaser’s right to acquire such shares pursuant to such Purchaser’s Warrant (including,
issuance of a replacement warrant certificate evidencing such restored right).

 

5.14 Replacement
of Securities. If any certificate or instrument evidencing any Securities is mutilated, lost, stolen or destroyed, the Company
shall issue or cause to be issued in exchange and substitution for and upon cancellation thereof (in the case of mutilation),
or in lieu of and substitution therefor, a new certificate or instrument, but only upon receipt of evidence reasonably satisfactory
to the Company of such loss, theft or destruction. The applicant for a new certificate or instrument under such circumstances
shall also pay any reasonable third-party costs (including customary indemnity) associated with the issuance of such replacement
Securities.

 

5.15 Remedies.
In addition to being entitled to exercise all rights provided herein or granted by law, including recovery of damages, each of
the Purchasers and the Company will be entitled to specific performance under the Transaction Documents. The parties agree that
monetary damages may not be adequate compensation for any loss incurred by reason of any breach of obligations contained in the
Transaction Documents and hereby agree to waive and not to assert in any action for specific performance of any such obligation
the defense that a remedy at law would be adequate.

 

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

 

5.17 Usury.
To the extent it may lawfully do so, the Company hereby agrees not to insist upon or plead or in any manner whatsoever claim,
and will resist any and all efforts to be compelled to take the benefit or advantage of, usury laws wherever enacted, now or at
any time hereafter in force, in connection with any claim, action or proceeding that may be brought by any Purchaser in order
to enforce any right or remedy under any Transaction Document. Notwithstanding any provision to the contrary contained in any
Transaction Document, it is expressly agreed and provided that the total liability of the Company under the Transaction Documents
for payments in the nature of interest shall not exceed the maximum lawful rate authorized under applicable law (the “Maximum
Rate”), and, without limiting the foregoing, in no event shall any rate of interest or default interest, or both of
them, when aggregated with any other sums in the nature of interest that the Company may be obligated to pay under the Transaction
Documents exceed such Maximum Rate. It is agreed that if the maximum contract rate of interest allowed by law and applicable to
the Transaction Documents is increased or decreased by statute or any official governmental action subsequent to the date hereof,
the new maximum contract rate of interest allowed by law will be the Maximum Rate applicable to the Transaction Documents from
the Closing Date thereof forward, unless such application is precluded by applicable law. If under any circumstances whatsoever,
interest in excess of the Maximum Rate is paid by the Company to any Purchaser with respect to indebtedness evidenced by the Transaction
Documents, such excess shall be applied by such Purchaser to the unpaid principal balance of any such indebtedness or be refunded
to the Company, the manner of handling such excess to be at such Purchaser’s election.

 

    	 	38	 

     

    

 

5.18 Independent
Nature of Purchasers’ Obligations and Rights. The obligations of each Purchaser under any Transaction Document are several
and not joint with the obligations of any other Purchaser, and no Purchaser shall be responsible in any way for the performance
or non-performance of the obligations of any other Purchaser under any Transaction Document. Nothing contained herein or in any
other Transaction Document, and no action taken by any Purchaser pursuant hereto or thereto, shall be deemed to constitute the
Purchasers as a partnership, an association, a joint venture or any other kind of entity, or create a presumption that the Purchasers
are in any way acting in concert or as a group with respect to such obligations or the transactions contemplated by the Transaction
Documents. Each Purchaser shall be entitled to independently protect and enforce its rights, including, without limitation, the
rights arising out of this Agreement or out of the other Transaction Documents, and it shall not be necessary for any other Purchaser
to be joined as an additional party in any proceeding for such purpose. Each Purchaser has been represented by its own separate
legal counsel in its review and negotiation of the Transaction Documents. For reasons of administrative convenience only, each
Purchaser and its respective counsel have chosen to communicate with the Company through G&M. The Company has elected to provide
all Purchasers with the same terms and Transaction Documents for the convenience of the Company and not because it was required
or requested to do so by any of the Purchasers. It is expressly understood and agreed that each provision contained in this Agreement
and in each other Transaction Document is between the Company and a Purchaser, solely, and not between the Company and the Purchasers
collectively and not between and among the Purchasers.

 

5.19 Liquidated
Damages. The Company’s obligations to pay any partial liquidated damages or other amounts owing under the Transaction
Documents is a continuing obligation of the Company and shall not terminate until all unpaid partial liquidated damages and other
amounts have been paid notwithstanding the fact that the instrument or security pursuant to which such partial liquidated damages
or other amounts are due and payable shall have been canceled.

 

5.20 Saturdays,
Sundays, Holidays, etc. If the last or appointed day for the taking of any action or the expiration of any right required
or granted herein shall not be a Business Day, then such action may be taken or such right may be exercised on the next succeeding
Business Day.

 

5.21 Construction.
The parties agree that each of them and/or their respective counsel have reviewed and had an opportunity to revise the Transaction
Documents and, therefore, the normal rule of construction to the effect that any ambiguities are to be resolved against the drafting
party shall not be employed in the interpretation of the Transaction Documents or any amendments thereto. In addition, each and
every reference to share prices and Ordinary Shares in any Transaction Document shall be subject to adjustment for reverse and
forward stock splits, stock dividends, stock combinations and other similar transactions of the Ordinary Shares that occur after
the date of this Agreement.

 

5.22 WAIVER
OF JURY TRIAL. IN ANY ACTION, SUIT, OR PROCEEDING IN ANY JURISDICTION BROUGHT BY ANY PARTY AGAINST ANY OTHER PARTY, THE PARTIES
EACH KNOWINGLY AND INTENTIONALLY, TO THE GREATEST EXTENT PERMITTED BY APPLICABLE LAW, HEREBY ABSOLUTELY, UNCONDITIONALLY, IRREVOCABLY
AND EXPRESSLY WAIVES FOREVER TRIAL BY JURY.

 

5.23 Currency.
Unless indicated otherwise, references to currency and money shall mean currency of the United States of America.

 

5.24 Equitable
Adjustment. Trading volume amounts, price/volume amounts, the amount of Warrants, the amount of Ordinary Shares identified
in this Agreement, Conversion Price, Exercise Price, Underlying Shares and similar figures in the Transaction Documents shall
be equitably adjusted (but without duplication) to offset the effect of stock splits, similar events and as otherwise described
in this Agreement, Note and Warrants.

 

(Signature
Pages Follow)

 

    	 	39	 

     

    

 

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

 

	P.V.
    NANO CELL LTD.	Address
    for Notice:
	 	 
	 	8
    Hamasgar     Street Migdal
	 	Ha’Emek,Israel
    2310102
	 	Attention:
    Dr. Fernando de la Vega

 

	By:	 	 
	Name:	Dr.
    Fernando de la Vega	 
	Title:	CEO	 

 

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

 

Greenberg
Traurig, P.A.

333
S.E. 2nd Avenue

Miami,
FL 33131

Attn:
Robert L. Grossman, Esq.

Fax:
305-961-5756

 

[REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK

 

SIGNATURE
PAGE FOR PURCHASER FOLLOWS]

 

    	 	40	 

     

    

 

[PURCHASER
SIGNATURE PAGE TO P.V. NANO CELL LTD.

 

SECURITIES
PURCHASE AGREEMENT]

 

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

 

Name
of Purchaser: ________________________________________________________

 

Signature
of Authorized Signatory of Purchaser: __________________________________

 

Name
of Authorized Signatory: ____________________________________________________

 

Title
of Authorized Signatory: _____________________________________________________

 

Email
Address of Authorized Signatory: _____________________________________________

 

Facsimile
Number of Authorized Signatory: __________________________________________

 

State
of Residence of Purchaser: _________________________________________________

 

Address
for Notice to Purchaser:

 

Address
for Delivery of Securities to Purchaser (if not same as address for notice):

 

Subscription
Amount: US$________________

 

Note
principal amount: ___________________

 

Warrants:
___________________

 

EIN
Number, if applicable, will be provided under separate cover: ________________________

 

Date:
___________________________

 

[SIGNATURE
PAGES CONTINUE]

 

    	 	41	 

     

    

 

EXHIBITS
AND SCHEDULES

 

	Exhibit
    A	Form
    of Note
	Exhibit
    B	Form
    of Warrant
	Exhibit
    C	Form
    of Form 6-K
	Exhibit
    D	Form
    of Lockup Agreement
	Exhibit
    E	Form
    of Accredited Investor Questionnaire
	Schedule
    1.1	Guaranties
    and Contingent Obligations
	Schedule
    2.2(a)(v)	Lockup
    Agreement Providers
	Schedule
    3.1(a)	Subsidiaries
	Schedule
    3.1(e)	Israeli
    Filings
	Schedule
    3.1(g)	New
    shares, ESOP and Digiflex deal on top of the loan
	Schedule
    3.1(i)	Stock
    Option Plan
	Schedule
    3.1(l)	Compliance
	Schedule
    3.1(n)	Title
    to Assets
	Schedule
    3.1(s)	Fees
    and expenses
	Schedule
    3.1(u)	Outstanding
    Registration Rights
	Schedule
    3.1(z)	Trial
    Balance as of July 27, 2017
	Schedule
    3.1(cc)	Accountants
	Schedule
    3.1(ll)	Indebtedness
    and Seniority
	Schedule
    4.9	Use
    of Proceeds
	Schedule
    4.13	Issuances
    to Officers, Directors and Employees
	Schedule
    4.25	No
    Exercise of Variable Priced Equity Linked Instruments

 

    	 	42	 

     

    

 

EXHIBIT
E

 

ACCREDITED
INVESTOR QUESTIONNAIRE

IN
CONNECTION WITH INVESTMENT IN CONVERTIBLE NOTE

P.V.
NANO CELL LTD.,

A
CORPORATION FORMED UNDER THE LAWS OF THE STATE OF ISRAEL

PURSUANT
TO SECURITIES PURCHASE AGREEMENT DATED AUGUST ___, 2017

 

	TO :	P.V. Nano Cell Ltd.

c/o
Greenberg Traurig, P.A.

333
S.E. 2nd Avenue

Miami,
FL 33131

Fax:
305-961-5756

 

INSTRUCTIONS

 

PLEASE
ANSWER ALL QUESTIONS. If the appropriate answer is “None” or “Not Applicable”, so state. Please print
or type your answers to all questions. Attach additional sheets if necessary to complete your answers to any item.

 

Your
answers will be kept strictly confidential at all times. However, P.V. Nano Cell Ltd. (the “Company”) may present
this Questionnaire to such parties as it deems appropriate in order to assure itself that the offer and sale of securities of
the Company will not result in a violation of the registration provisions of the Securities Act of 1933, as amended, or a violation
of the securities laws of any state.

 

1. Please
provide the following information:

 

Name:

 

Name
of additional purchaser:_____________________________________________________

(Please
complete information in Question 5)

 

Date
of birth, or if other than an individual, year of organization or incorporation:

 

2. Residence
address, or if other than an individual, principal office address:

 

Telephone
number:

 

Social
Security Number:

 

Taxpayer
Identification Number:

 

    	 	43	 

     

    

 

3.
Business address:

 

 

 

Business
telephone number:

 

4.
Send mail to:                                Residence ______                                         Business _______

 

5. With
respect to tenants in common, joint tenants and tenants by the entirety, complete only if information differs from that above:

 

Residence
address:

 

 

 

Telephone
number:

 

Social
Security Number:

 

Taxpayer
Identification Number:

 

Business
address:

 

 

 

Business
telephone number:

 

Send
Mail to:                                Residence
______                                         Business
_______

 

6. Please
describe your present or most recent business or occupation and indicate such information as the nature of your employment, how
long you have been employed there, the principal business of your employer, the principal activities under your management or
supervision and the scope (e.g. dollar volume, industry rank, etc.) of such activities:

 

    	 	44	 

     

    

 

7. Please
state whether you (i) are associated with or affiliated with a member of the Financial Industry Regulatory Association, Inc. (“FINRA”),
(ii) are an owner of stock or other securities of FINRA member (other than stock or other securities purchased on the open market),
or (iii) have made a subordinated loan to any FINRA member:

 

	______	______
	Yes	No

 

If
you answered yes to any of (i) – (iii) above, please indicate the applicable answer and briefly describe the facts below:

 

8A.Applicable
to Individuals ONLY. Please answer the following questions concerning your financial condition as an Accredited Investor (within
the meaning of Rule 501 of Regulation D). If the purchaser is more than one individual, each individual must initial an answer
where the question indicates a “yes” or “no” response and must answer any other question fully, indicating
to which individual such answer applies. If the purchaser is purchasing jointly with his or her spouse, one answer may be indicated
for the couple as a whole:

 

8.1 Does
your net worth* (or joint net worth with your spouse) exceed $1,000,000?

 

	______	______
	Yes	No

 

8.2 Did
you have an individual income** in excess of $200,000 or joint income together with your spouse in excess of $300,000 in each
of the two most recent years and do you reasonably expect to reach the same income level in the current year?

 

	______	______
	Yes	No

 

8.3 Are
you an executive officer of the Company?

 

	______	______
	Yes	No

 

*
For purposes hereof, net worth shall be deemed to include ALL of your assets, liquid or illiquid MINUS any liabilities.

 

**
For purposes hereof, the term “income” is not limited to “adjusted gross income” as that term is defined
for federal income tax purposes, but rather includes certain items of income which are deducted in computing “adjusted gross
income”. For investors who are salaried employees, the gross salary of such investor, minus any significant expenses personally
incurred by such investor in connection with earning the salary, plus any income from any other source including unearned income,
is a fair measure of “income” for purposes hereof. For investors who are self-employed, “income” is generally
construed to mean total revenues received during the calendar year minus significant expenses incurred in connection with earning
such revenues.

    	 	45	 

     

    

 

8.B Applicable
to Corporations, Partnerships, Trusts, Limited Liability Companies and other Entities ONLY:

 

The
purchaser is an Accredited Investor because the purchaser falls within at least one of the following categories (Check all appropriate
lines):

 

		___	(i)
                                         a bank as defined in Section 3(a)(2) of the Act or a savings and loan association or
                                         other institution as defined in Section 3(a)(5)(A) of the Act whether acting in its individual
                                         or fiduciary capacity;
	 	 	 

		___	(ii)
                                         a broker-dealer registered pursuant to Section 15 of the Securities Exchange Act of 1934,
                                         as amended;
	 	 	 

		___	(iii)
                                         an insurance company as defined in Section 2(13) of the Act;
	 	 	 

		___	(iv)
                                         an investment company registered under the Investment Company Act of 1940, as amended
                                         (the “Investment Act”) or a business development company as defined in Section
                                         2(a)(48) of the Investment Act;
	 	 	 

		___	(v)
                                         a Small Business Investment Company licensed by the U.S. Small Business Administration
                                         under Section 301(c) or (d) of the Small Business Investment Act of 1958, as amended;
	 	 	 

		___	(vi)
                                         a plan established and maintained by a state, its political subdivisions, or any agency
                                         or instrumentality of a state or its political subdivisions, for the benefit of its employees,
                                         where such plan has total assets in excess of $5,000,000;
	 	 	 

		___	(vii)
                                         an employee benefit plan within the meaning of Title 1 of the Employee Retirement Income
                                         Security Act of 1974, as amended (the “Employee Act”), where the investment
                                         decision is made by a plan fiduciary, as defined in Section 3(21) of the Employee Act,
                                         which is either a bank, savings and loan association, insurance company, or registered
                                         investment adviser, or an employee benefit plan that has total assets in excess of $5,000,000,
                                         or a self-directed plan the investment decisions of which are made solely by persons
                                         that are Accredited Investors;
	 	 	 

		___	(viii)
                                         a private business development company, as defined in Section 202(a)(22) of the Investment
                                         Advisers Act of 1940, as amended;
	 	 	 
	 	___	(ix)
an organization described in Section 501(c)(3) of the Internal Revenue Code, a corporation, a Massachusetts or similar business
trust, or a partnership, not formed for the specific purpose of acquiring the securities offered, with total assets in excess
of $5,000,000;

 

    	 	46	 

     

    

 

		___	(x)
                                         a trust, with total assets in excess of $5,000,000, not formed for the specific purpose
                                         of acquiring the securities offered, whose purchase is directed by a “sophisticated”
                                         person, as described in Rule 506(b)(2)(ii) promulgated under the Act, who has such knowledge
                                         and experience in financial and business matters that he or she is capable of evaluating
                                         the merits and risks of the prospective investment;
	 	 	 

		___	(xi)
                                         an entity in which all of the equity investors are persons or entities described above
                                         (“Accredited Investors”). ALL EQUITY OWNERS MUST COMPLETE “EXHIBIT
                                         A” ATTACHED HERETO.

 

9.A Do
you have sufficient knowledge and experience in financial and business matters so as to be capable of evaluating the merits and
risks associated with investing in the Company?

 

	______	______
	Yes	No

 

ANSWER
QUESTION 9B ONLY IF THE ANSWER TO QUESTION 9A WAS “NO.”

 

9.B If
the answer to Question 9A was “NO,” do you have a financial or investment adviser (a) that is acting in the capacity
as a purchaser representative and (b) who has sufficient knowledge and experience in financial and business matters so as to be
capable of evaluating the merits and risks associated with investing in the Company?

 

	______	______
	Yes	No

 

If
you have a financial or investment adviser(s), please identify each such person and indicate his or her business address and telephone
number in the space below. (Each such person must complete, and you must review and acknowledge, a separate Purchaser Representative
Questionnaire which will be supplied at your request).

 

10. You
have the right, will be afforded an opportunity, and are encouraged to investigate the Company and review relevant factors and
documents pertaining to the officers of the Company, and the Company and its business and to ask questions of a qualified representative
of the Company regarding this investment and the properties, operations, and methods of doing business of the Company.

 

Have
you or has your purchaser representative, if any, conducted any such investigation, sought such documents or asked questions of
a qualified representative of the Company regarding this investment and the properties, operations, and methods of doing business
of the Company?

 

	______	______
	Yes	No

 

    	 	47	 

     

    

 

If
so, briefly describe:

 

If
so, have you completed your investigation and/or received satisfactory answers to your questions?

 

	______	______
	Yes	No

 

11. Do
you understand the nature of an investment in the Company and the risks associated with such an investment?

 

	______	______
	Yes	No

 

12. Do
you understand that there is no guarantee of any financial return on this investment and that you will be exposed to the risk
of losing your entire investment?

 

	______	______
	Yes	No

 

13. Do
you understand that this investment is not liquid?

 

	______	______
	Yes	No

 

14. Do
you have adequate means of providing for your current needs and personal contingencies in view of the fact that this is not a
liquid investment?

 

	______	______
	Yes	No

 

15. Are
you aware of the Company’s business affairs and financial condition, and have you acquired all such information about the
Company as you deem necessary and appropriate to enable you to reach an informed and knowledgeable decision to acquire the Interests?

 

	______	______
	Yes	No

 

16. Do
you have a “pre-existing relationship” with the Company or any of the officers of the Company?

 

	______	______
	Yes	No

 

(For
purposes hereof, “pre-existing relationship” means any relationship consisting of personal or business contacts of
a nature and duration such as would enable a reasonably prudent investor to be aware of the character, business acumen, and general
business and financial circumstances of the person with whom such relationship exists.)

 

If
so, please name the individual or other person with whom you have a pre-existing relationship and describe the relationship:

______________________________________________________________________________

______________________________________________________________________________

 

    	 	48	 

     

    

 

17. Exceptions
to the representations and warranties made in Section 3.2 of the Securities Purchase Agreement (if no exceptions, write “none”
– if left blank, the response will be deemed to be “none”): ___________________________________________________

_____________________________________________________________________________

 

Dated:
__________________, 2017

 

If
purchaser is one or more individuals (all individuals must sign):

 

(Type
or print name of prospective purchaser)

 

Signature
of prospective purchaser

 

Social
Security Number

 

(Type
or print name of additional purchaser)

 

Signature
of spouse, joint tenant, tenant in common or other signature, if required

 

Social
Security Number

 

    	 	49	 

     

    

 

Annex
A

 

Definition
of Accredited Investor

 

The
securities will only be sold to investors who represent in writing in the Securities Purchase Agreement that they are Accredited
Investors, as defined in Regulation D, Rule 501 under the Act which definition is set forth below:

 

1. A
natural person whose net worth, or joint net worth with spouse, at the time of purchase exceeds $1 million (excluding home); or

 

2. A
natural person whose individual gross income exceeded $200,000 or whose joint income with that person’s spouse exceeded
$300,000 in each of the last two years, and who reasonably expects to exceed such income level in the current year; or

 

3. A
trust with total assets in excess of $5 million, not formed for the specific purpose of acquiring the securities offered, whose
purchase is directed by a sophisticated person described in Regulation D; or

 

4. A
director or executive officer of the Company; or

 

5. The
investor is an entity, all of the owners of which are Accredited Investors; or

 

6. (a)
bank as defined in Section 3(a)(2) of the Act, or any savings and loan association or other institution as defined in Section
3(a)(5)(A) of the Act, (b) any broker or dealer registered pursuant to Section 15 of the Securities Exchange Act of 1934, (c)
an insurance Company as defined in Section 2(13) of the Act, (d) an investment Company registered under the Investment Company
Act of 1940 or a business development Company as defined in Section 2(a)(48) of such Act, (e) a Small Business Investment Company
licensed by the United States Small Business Administration under Section 301(c) or (d) of the Small Business Investment Act of
1958, (f) an employee benefit plan established and maintained by a state, its political subdivisions, or any agency or instrumentality
of a state or its political subdivisions, if such plan has total assets in excess of $5 million, (g) an employee benefit plan
within the meaning of Title I of the Employee Retirement Income Securities Act of 1974, and the employee benefit plan has assets
in excess of $5 million, or the investment decision is made by a plan fiduciary, as defined in Section 3(21) of such act, that
is either a bank, savings and loan institution, insurance Company, or registered investment advisor, or, if a self-directed plan,
with an investment decisions made solely by persons that are Accredited Investors, (h) a private business development company
as defined in Section 202(a)(22) of the Investment Advisers Act of 1940, or (i) an organization described in Section 501(c)(3)
of the Internal Revenue code, corporation, Massachusetts or similar business trust, or partnership, not formed for the specific
purpose of acquiring the securities offered, with assets in excess of $5 million.

 

    	 	50	 

     

    

 

EXHIBIT
“A” TO ACCREDITED INVESTOR QUESTIONNAIRE

 

ACCREDITED
CORPORATIONS, PARTNERSHIPS, LIMITED LIABILITY COMPANIES, TRUSTS OR OTHER ENTITIES INITIALING QUESTION 8B(xi) MUST PROVIDE THE
FOLLOWING INFORMATION.

 

I
hereby certify that set forth below is a complete list of all equity owners in __________________ [NAME OF ENTITY], a [TYPE
OF ENTITY] formed pursuant to the laws of the State of. I also certify that EACH SUCH OWNER HAS INITIALED THE SPACE OPPOSITE
HIS OR HER NAME and that each such owner understands that by initialing that space he or she is representing that he or she
is an accredited individual investor satisfying the test for accredited individual investors indicated under “Type of Accredited
Investor.”

 

	 	 
	 	signature
    of authorized corporate officer, general partner or trustee

 

	Name of Equity Owner	 	Type of Accredited Investor 1
	 	 	 
	1.	 	 
	 	 	 
	2.	 	 
	 	 	 
	3.	 	 
	 	 	 
	4.	 	 
	 	 	 
	5.	 	 
	 	 	 
	6.	 	 
	 	 	 
	7.	 	 
	 	 	 
	8.	 	 
	 	 	 
	9.	 	 
	 	 	 
	10.	 	 

 

 

 

1
Indicate which Subparagraph of 8.1 - 8.3 the equity owner satisfies. 

 

    	 	51

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