Document:

Exhibit
10.4

 

Execution
Version

 

STOCKHOLDER
PLEDGE AGREEMENT

 

STOCKHOLDER
PLEDGE AGREEMENT (this “Agreement”), dated as of November [__], 2021, made by Scott L. Mathis, a natural person,
with a principal residence at 1445 16th Street, Suite 403, Miami Beach, Florida (the “Pledgor”), Gaucho
Group Holdings Inc., a Delaware corporation with offices located at 112 NE 41st Street, Suite 106, Miami, Florida 33137 (the “Company”)
and the Secured Party listed on the signature page hereof (the “Secured Party”).

 

W
I T N E S S E T H:

 

WHEREAS,
pursuant to the to the Securities Purchase Agreement, dated as of November [__], 2021 (as amended, restated or otherwise modified from
time to time, the “Securities Purchase Agreement”) by and among the Company, the Secured Party and the other Buyer
set forth on the signature page thereto (the “Other Secured Party”), the Company has agreed to sell, and each of the
Secured Party and the other Buyer has agreed to purchase, the Notes (as defined in the Securities Purchase Agreement); and

 

WHEREAS,
in order to induce the Secured Party and the Other Secured Party to purchase, severally and not jointly, the Notes as provided for in
the Securities Purchase Agreement, the Pledgor has agreed to grant the Secured Party and the Other Secured Party a separate, continuing
security interest in and to certain collateral in order to secure the prompt and complete payment, observance and performance of the
Secured Obligations (as defined below).

 

NOW,
THEREFORE, for and in consideration of the recitals made above and other good and valuable consideration, the receipt, sufficiency and
adequacy of which are hereby acknowledged, the parties hereto agree as follows:

 

SECTION
1. Definitions and Rules of Interpretation.

 

(a)
Definitions. Reference is made to the Securities Purchase Agreement and the Notes for a statement of terms thereof. All terms
used in this Agreement which are defined in the Securities Purchase Agreement or the Notes or in Article 8 or Article 9 of the Uniform
Commercial Code as in effect from time to time in the State of New York (the “Code”) and which are not otherwise defined
herein shall have the same meanings herein as set forth therein; provided, that terms used herein which are defined in the Code
as in effect in the State of New York on the date hereof shall continue to have the same meaning notwithstanding any replacement or amendment
of such statute except as the Secured Party may otherwise determine. In the event that any such term is defined in both the Securities
Purchase Agreement, the Notes and the Code, the definition of such term in the Securities Purchase Agreement or the Notes shall control.

 

(b)
Rules of Interpretation. Except as otherwise expressly provided in this Agreement, the following rules of interpretation apply
to this Agreement: (i) the singular includes the plural and the plural includes the singular; (ii) “or” and “any”
are not exclusive and “include” and “including” are not limiting; (iii) a reference to any agreement or other
contract includes permitted supplements and amendments; (iv) a reference to a law includes any amendment or modification to such law
and any rules or regulations issued thereunder; (v) a reference to a person includes its permitted successors and assigns; and (vi) a
reference in this Agreement to an Article, Section, Annex, Exhibit or Schedule is to the Article, Section, Annex, Exhibit or Schedule
of this Agreement.

 

    	 

     

    

 

SECTION
2. Pledge and Grant of Security Interest. As collateral security for all of the Secured Obligations (as defined in Section 3 hereof),
the Pledgor hereby pledges and assigns and grants to the Secured Party a separate, continuing security interest in, and Lien on, all
of such Pledgor’s right, title and interest in and to the following (collectively, the “Pledged Collateral”):

 

(a)
The Pledgor’s shares of Common Stock of the Company as set forth in Schedule I (as such Schedule is amended from time to
time in accordance with the terms hereof), and all future, issued and outstanding share capital, or other equity or investment securities
of, or partnership, membership, or joint venture interests in, the Company, including without limitation, whether or not evidenced or
represented by any share certificate, certificated security or other instrument, together with the certificates representing such equity
interests, all options and other rights, contractual or otherwise, in respect thereof and all dividends, distributions, cash, instruments,
investment property and any other property (including, but not limited to, any share dividend and any distribution in connection with
a share split) from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all of the foregoing
and all cash and noncash proceeds thereof (collectively, the “Pledged Shares”);

 

(b)
all present and future increases, profits, combinations, reclassifications, and substitutes and replacements for all or part of the foregoing
Pledged Shares heretofore described;

 

(c)
all investment property, financial assets, securities, share capital, other equity interests, share options and commodity contracts of
the Pledgor, all notes, debentures, bonds, promissory notes or other evidences of indebtedness payable or owing to the Pledgor, and all
other assets now or hereafter received or receivable with respect to the foregoing Pledged Shares heretofore described;

 

(d)
all securities entitlements of the Pledgor in any and all of the foregoing; and

 

(e)
all proceeds (including proceeds of proceeds) of any and all of the foregoing;

 

in
each case, howsoever such Pledgor’s interest therein may arise or appear (whether by ownership, security interest, Lien, claim
or otherwise).

 

SECTION
3. Security for Secured Obligations. The security interest created hereby in the Pledged Collateral constitutes continuing collateral
security for the prompt payment and due performance and observance of all of the following Secured Obligations (the “Secured
Obligations”):

 

(a)
all liabilities, obligations, or undertakings owing by the Company to the Secured Party of any kind or description arising out of or
outstanding under, advanced or issued pursuant to, or evidenced by the Securities Purchase Agreement, the Notes or any of the other Transaction
Documents, and

 

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(b)
all liabilities, obligations, or undertakings owing by Pledgor to the Secured Party under this Agreement, in each case with respect to
the foregoing liabilities, obligations or undertakings, irrespective of whether for the payment of money, whether direct or indirect,
absolute or contingent, liquidated or unliquidated, determined or undetermined, due or to become due, voluntary or involuntary, whether
now existing or hereafter arising, and including all interest, costs, indemnities, fees (including attorney’s fees), and expenses
(including interest, costs, indemnities, fees, and expenses that, but for the provisions of the Bankruptcy Code, would have accrued irrespective
of whether a claim therefor is allowed) and any and all other amounts which Company or Pledgor is required to pay pursuant to any of
the foregoing, by law, or otherwise.

 

SECTION
4. Delivery of the Pledged Collateral.

 

(a)
In accordance with the terms and conditions set forth in the Securities Purchase Agreement, the Pledgor shall deliver to the Secured
Party as of date hereof a certificate and/or book entry statement with respect to the Pledged Shares to be initially held by such Security
Party in such amounts as set forth on Schedule I attached hereto. As of any given date, with respect to all other promissory notes,
certificates, instruments and after-acquired equity interest constituting Pledged Collateral from time to time or required to be pledged
to the Secured Parties pursuant to the terms of this Agreement or the Securities Purchase Agreement, as applicable (collectively the
“Additional Collateral”) such amount equal to a fraction (i) the numerator of which is the principal amount of the
Secured Party’s Note on such given date and (ii) the denominator of which is the aggregate principal amount of all Notes outstanding
as of such given date (the “Secured Party Pro Rata Amount”) of such Additional Collateral shall be delivered to the
Secured Party and the Other Secured Party promptly upon receipt thereof by or on behalf of the Pledgor. All such promissory notes, certificates
and instruments shall be held by the Secured Party pursuant hereto and shall be delivered in suitable form for transfer by delivery or
shall be accompanied by duly executed instruments of transfer or assignment or undated share powers executed in blank, all in form and
substance reasonably satisfactory to the Secured Party. If any Pledged Collateral consists of uncertificated securities, unless the immediately
following sentence is applicable thereto, the Pledgor shall cause each issuer of such securities to agree that it will comply with instructions
originated by the Secured Party (or its designated custodian, nominee or other designee), with respect to such securities without further
consent by the Pledgor. If any Pledged Collateral consists of securities entitlements, the Pledgor shall cause the applicable securities
intermediary to agree that it will comply with entitlement orders by the Secured Party (or its designated custodian, nominee or other
designee) without further consent by the Pledgor.

 

(b)
Promptly upon the receipt by the Pledgor of any Additional Collateral, a Pledge Amendment, duly executed by the Pledgor, in substantially
the form of Annex I hereto (a “Pledge Amendment”), shall be delivered to the Secured Party, in respect of the
Additional Collateral which is or are to be pledged pursuant to this Agreement and the Securities Purchase Agreement, which Pledge Amendment
shall from and after delivery thereof constitute part of Schedule I hereto. The Pledgor hereby authorizes the Secured Party to
attach the Pledge Amendment to this Agreement and agrees that all promissory notes, certificates or instruments listed on any Pledge
Amendment shall for all purposes hereunder constitute Pledged Collateral and the Pledgor shall be deemed upon delivery thereof to have
made the representations and warranties set forth in Section 6 with respect to such Additional Collateral.

 

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(c)
If the Pledgor shall receive, by virtue of the Pledgor’s being or having been an owner of any Pledged Collateral, any (i) share
certificate (including, without limitation, any certificate representing a share dividend or distribution in connection with any increase
or reduction of capital, reclassification, merger, consolidation, sale of assets, combination of shares, share split, spin-off or split-off),
promissory note or other instrument, (ii) option or right, whether as an addition to, substitution for, or in exchange for, any Pledged
Collateral, or otherwise, (iii) dividends payable in cash (except such dividends permitted to be retained by the Pledgor pursuant to
Section 8 hereof) or in securities or other property or (iv) dividends, distributions, cash, instruments, investment property
and other property in connection with a partial or total liquidation or dissolution or in connection with a reduction of capital, capital
surplus or paid-in surplus (collectively, the “Distribution Collateral”), the Pledgor shall hold such Distribution
Collateral in trust for the benefit of the Secured Party, shall segregate it from the Pledgor’s other property and shall deliver
the Secured Party Pro Rata Amount of such Distribution Collateral forthwith to the Secured Party in the exact form received, with any
necessary endorsement and/or appropriate share powers duly executed in blank, to be held by the Secured Party as Pledged Collateral and
as further collateral security for the Secured Obligations.

 

SECTION
5. Taxes.

 

(a)
All payments made by the Pledgor hereunder or under any other Transaction Document shall be made in accordance with the terms of the
respective Transaction Document and shall be made without set-off, counterclaim, deduction or other defense. All such payments shall
be made free and clear of and without deduction for any present or future taxes, levies, imposts, deductions, charges or withholdings,
and all liabilities with respect thereto, excluding taxes imposed on the net income of any Secured Party by the jurisdiction in
which the Secured Party is organized or where it has its principal lending office (all such nonexcluded taxes, levies, imposts, deductions,
charges, withholdings and liabilities, collectively or individually, “Taxes”). If the Pledgor shall be required to
deduct or to withhold any Taxes from or in respect of any amount payable hereunder or under any other Transaction Document:

 

(i)
the amount so payable shall be increased to the extent necessary so that after making all required deductions and withholdings (including
Taxes on amounts payable to any Secured Party pursuant to this sentence) the Secured Party receives an amount equal to the sum it would
have received had no such deduction or withholding been made,

 

(ii)
the Pledgor shall make such deduction or withholding,

 

(iii)
the Pledgor shall pay the full amount deducted or withheld to the relevant taxation authority in accordance with applicable law, and

 

(iv)
as promptly as possible thereafter, the Pledgor shall send the Secured Party an official receipt (or, if an official receipt is not available,
such other documentation as shall be satisfactory to the Secured Party, as the case may be) showing payment. In addition, the Pledgor
agrees to pay any present or future stamp or documentary taxes or any other excise or property taxes, charges or similar levies that
arise from any payment made hereunder or from the execution, delivery, registration or enforcement of, or otherwise with respect to,
this Agreement or any other Transaction Document (collectively, “Other Taxes”).

 

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(b)
The Pledgor hereby indemnifies and agrees to hold the Secured Party (each an “Indemnified Party”) harmless from and
against Taxes or Other Taxes (including, without limitation, any Taxes or Other Taxes imposed by any jurisdiction on amounts payable
under this Section 5) paid by any Indemnified Party as a result of any payment made hereunder or from the execution, delivery,
registration or enforcement of, or otherwise with respect to, this Agreement or any other Transaction Document, and any liability (including
penalties, interest and expenses for nonpayment, late payment or otherwise) arising therefrom or with respect thereto, whether or not
such Taxes or Other Taxes were correctly or legally asserted. This indemnification shall be paid within 30 days from the date on which
the Secured Party makes written demand therefor, which demand shall identify the nature and amount of such Taxes or Other Taxes.

 

(c)
If the Pledgor fails to perform any of its obligations under this Section 5, the Pledgor shall indemnify the Secured Party for
any taxes, interest or penalties that may become payable as a result of any such failure. The obligations of the Pledgor under this Section
5 shall survive the termination of this Pledge Agreement and the payment of the Obligations and all other amounts payable hereunder.

 

SECTION
6. Representations and Warranties. The Pledgor represents and warrants as follows:

 

(a)
The Pledgor has the legal capacity and all requisite power and authority to execute, deliver and perform its obligations under this Agreement.
This Agreement has been duly executed and delivered by the Pledgor and constitutes a legal, valid and binding obligation of the Pledgor,
enforceable against the Pledgor in accordance with its terms, except (a) as such enforceability may be limited by applicable bankruptcy,
insolvency, reorganization, fraudulent conveyance, moratorium or similar laws now or hereafter in effect relating to, or affecting generally,
the enforcement of creditors’ and other obligees’ rights and (b) where the remedy of specific performance or other forms
of equitable relief may be subject to certain equitable defenses and principles and to the discretion of the court before which the proceeding
may be brought. The Pledgor certifies that name and address set forth in the preamble is such pledgor’s exact legal name and primary
residential address.

 

(b)
The Pledged Shares have been duly authorized and validly issued, are fully paid and nonassessable and the holders thereof are not entitled
to any preemptive first refusal or other similar rights. All other shares constituting Pledged Collateral will be, when issued, duly
authorized and validly issued, fully paid and nonassessable.

 

(c)
The Pledgor is and will be at all times the legal and beneficial owner of the Pledged Collateral free and clear of any Lien, security
interest, option or other charge or encumbrance except for the security interest and Lien created by this Agreement or any Permitted
Liens.

 

(d)
The exercise by any Secured Party of any of its rights and remedies hereunder will not contravene any law or any contractual restriction
binding on or affecting the Pledgor or any of the properties of the Pledgor and will not result in or require the creation of any Lien,
security interest or other charge or encumbrance upon or with respect to any of the properties of the Pledgor other than pursuant to
this Agreement and the other Transaction Documents, as defined in the Securities Purchase Agreement.

 

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(e)
No authorization or approval or other action by, and no notice to or filing with, any governmental authority is required to be obtained
or made by the Pledgor for (i) the due execution, delivery and performance by the Pledgor of this Agreement, (ii) the grant by the Pledgor,
or the perfection, of the security interest and Lien purported to be created hereby in the Pledged Collateral or (iii) the exercise by
any Secured Party of any of its rights and remedies hereunder, except as may be required in connection with any sale of any Pledged Collateral
by laws affecting the offering and sale of securities generally.

 

(f)
This Agreement creates a valid security interest and Lien in favor of the Secured Party in the Pledged Collateral, as security for the
Secured Obligations. The Secured Party having possession of the certificates representing the Pledged Shares and all other certificates,
instruments and cash constituting Pledged Collateral from time to time results in the perfection of such security interest and Lien.
Such security interest and Lien is, or in the case of Pledged Collateral in which the Pledgor obtains rights after the date hereof, will
be, a perfected Lien, subject only to the Permitted Liens. All action necessary or desirable to perfect and protect such security interest
and Lien has been duly taken, except for the Secured Party’s having possession of certificates, instruments and cash constituting
Pledged Collateral after the date hereof.

 

SECTION
7. Covenants as to the Pledged Collateral. So long as any Secured Obligations shall remain outstanding, the Pledgor will, unless
the Secured Party, shall otherwise consent in writing:

 

(a)
keep adequate records concerning the Pledged Collateral and permit the Secured Party, or any designees or representatives thereof at
any time or from time to time during reasonable hours after prior written notice to examine and make copies of and abstracts from such
records;

 

(b)
at the Pledgor’s expense, promptly deliver to the Secured Party a copy of each material notice or other material communication
received by the Pledgor in respect of the Pledged Collateral;

 

(c)
at the Pledgor’s expense, defend the Secured Party’s right, title and security interest in and to the Pledged Collateral
against the claims of any Person;

 

(d)
at the Pledgor’s expense, at any time and from time to time, promptly execute and deliver all further instruments and documents
and take all further action that may be necessary or desirable or that any Secured Party may reasonably request in order to (i) perfect
and protect, or maintain the perfection of, the security interest and Lien purported to be created hereby, (ii) enable the Secured Party
to exercise and enforce its rights and remedies hereunder in respect of the Pledged Collateral or (iii) otherwise effect the purposes
of this Agreement, including, without limitation, delivering to the Secured Party irrevocable proxies in respect of the Pledged Collateral;

 

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(e)
not sell, assign (by operation of law or otherwise), exchange or otherwise dispose of any Pledged Collateral or any interest therein
except as expressly permitted by the Securities Purchase Agreement or the Notes;

 

(f)
not create or suffer to exist any Lien, upon or with respect to any Pledged Collateral except for the Lien created hereby or for any
Permitted Lien;

 

(g)
not make or consent to any amendment or other modification or waiver with respect to any Pledged Collateral or enter into any agreement
or permit to exist any restriction with respect to any Pledged Collateral;

 

(h)
except as expressly permitted by the Securities Purchase Agreement, not permit the issuance of (i) any additional shares of any class
of share capital, partnership interests, member interests or other equity of the Company, (ii) any securities convertible voluntarily
by the holder thereof or automatically upon the occurrence or non-occurrence of any event or condition into, or exchangeable for, any
such shares of share capital or (iii) any warrants, options, contracts or other commitments entitling any Person to purchase or otherwise
acquire any such shares of share capital;

 

(i)
not issue any share certificate, certificated security or other instrument to evidence or represent any share capital, any partnership
interest or membership interest described in Schedule I hereto; and

 

(j)
not take or fail to take any action which would in any manner impair the validity or enforceability of the Secured Party’s security
interest in and Lien on any Pledged Collateral.

 

SECTION
8. Voting Rights, Dividends, Etc. in Respect of the Pledged Collateral.

 

(a)
So long as no Event of Default (as defined in the Notes) shall have occurred and be continuing:

 

(i)
the Pledgor may exercise any and all voting and other consensual rights pertaining to any Pledged Collateral for any purpose not inconsistent
with the terms of this Agreement, the Securities Purchase Agreement or the Notes;

 

(ii)
the Pledgor may receive and retain any and all dividends, interest or other distributions paid in respect of the Pledged Collateral to
the extent permitted by the Securities Purchase Agreement; provided, however, that any and all (A) dividends and interest
paid or payable other than in cash in respect of, and instruments and other property received, receivable or otherwise distributed in
respect of or in exchange for, any Pledged Collateral, (B) dividends and other distributions paid or payable in cash in respect of any
Pledged Collateral in connection with a partial or total liquidation or dissolution or in connection with a reduction of capital, capital
surplus or paid-in surplus, and (C) cash paid, payable or otherwise distributed in redemption of, or in exchange for, any Pledged Collateral,
together with any dividend, distribution, interest or other payment which at the time of such dividend, distribution, interest or other
payment was not permitted by the Securities Purchase Agreement, shall be, and shall forthwith be delivered to the Secured Party in proportion
to their Secured Party Pro Rata Amount to hold as, Pledged Collateral and shall, if received by the Pledgor, be received in trust for
the benefit of the Secured Party, shall be segregated from the other property or funds of the Pledgor, and shall be forthwith delivered
to the Secured Party in the exact form received with any necessary indorsement and/or appropriate share powers duly executed in blank,
to be held by the Secured Party as Pledged Collateral and as further collateral security for the Secured Obligations; and

 

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(iii)
the Secured Party will execute and deliver (or cause to be executed and delivered) to the Pledgor all such proxies and other instruments
as the Pledgor may reasonably request for the purpose of enabling the Pledgor to exercise the voting and other rights which it is entitled
to exercise pursuant to paragraph (i) of this Section 8(a) and to receive the dividends, distributions, interest and other payments
which it is authorized to receive and retain pursuant to paragraph (ii) of this Section 8(a), in each case, to the extent that
the Secured Party has possession of such Pledged Collateral.

 

(b)
Upon the occurrence and during the continuance of an Event of Default:

 

(i)
all rights of the Pledgor to exercise the voting and other consensual rights which he would otherwise be entitled to exercise pursuant
to paragraph (i) of subsection (a) of this Section 8, and to receive the dividends, distributions, interest and other payments
which he would otherwise be authorized to receive and retain pursuant to paragraph (ii) of subsection (a) of this Section 8, shall
cease, and all such rights shall thereupon become vested in the Secured Party which shall thereupon have the sole right to exercise such
voting and other consensual rights and to receive and hold as Pledged Collateral such dividends, distributions, interest and other payments;

 

(ii)
without limiting the generality of the foregoing, the Secured Party may at its option exercise any and all rights of conversion, exchange,
subscription or any other rights, privileges or options pertaining to any of the Pledged Collateral as if it were the absolute owner
thereof, including, without limitation, the right to exchange, in its discretion, any and all of the Pledged Collateral upon the merger,
consolidation, reorganization, recapitalization or other adjustment of any issuer of the Pledged Collateral or upon the exercise by any
issuer of the Pledged Collateral of any right, privilege or option pertaining to any Pledged Collateral, and, in connection therewith,
to deposit and deliver any and all of the Pledged Collateral with any committee, depository, transfer agent, registrar or other designated
agent upon such terms and conditions as the Secured Party may determine; and

 

(iii)
all dividends, distributions, interest and other payments which are received by the Pledgor contrary to the provisions of paragraph (i)
of this Section 8(b) shall be received in trust for the benefit of the Secured Party, shall be segregated from other funds of
the Pledgor, and shall be forthwith paid over to the Secured Party in proportion to the Secured Party Pro Rata Amount as Pledged Collateral
in the exact form received with any necessary indorsement and/or appropriate share powers duly executed in blank, to be held by the Secured
Party as Pledged Collateral and as further collateral security for the Secured Obligations.

 

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SECTION
9. Additional Provisions Concerning the Pledged Collateral.

 

(a)
The Pledgor hereby (i) authorizes the Secured Party to file one or more financing or continuation statements, and amendments thereto,
relating to the Pledged Collateral, without the signature of the Pledgor where permitted by law, (ii) ratifies such authorization to
the extent that the Secured Party has filed any such financing or continuation statements, or amendments thereto, without the signature
of the Pledgor prior to the date hereof and (iii) authorizes the Secured Party to execute any agreements, instruments or other documents
in the Pledgor’s name and to file such agreements, instruments or other documents that are related to the security interest and
Lien of the Secured Party in the Pledged Collateral or as provided under Article 8 or Article 9 of the Code or any other applicable uniform
commercial code or other law in any appropriate filing office. Notwithstanding anything to the contrary contained herein, no Secured
Party shall have any responsibility for the preparing, recording, filing, re-recording, or re-filing of any financing statement, continuation
statement or other instrument in any public office.

 

(b)
The Pledgor hereby irrevocably appoints the Secured Party as such Pledgor’s attorney-in-fact and proxy, with full authority in
the place and stead and in such Pledgor’s name or otherwise, from time to time in the Secured Party’s discretion to take
any action and to execute any instrument which the Secured Party may deem necessary or advisable to accomplish the purposes of this Agreement
(subject to the rights of the Pledgor under Section 8(a) hereof), including, without limitation, to receive, indorse and collect
all instruments made payable to the Pledgor representing any dividend, interest payment or other distribution in respect of any Pledged
Collateral and to give full discharge for the same. This power is coupled with an interest and is irrevocable until the termination of
this Agreement.

 

(c)
If the Pledgor fails to perform any agreement or obligation contained herein, the Secured Party may perform, or cause performance of,
such agreement or obligation, and the expenses of the Secured Party incurred in connection therewith shall be payable by the Pledgor
pursuant to Section 11 hereof and shall be secured by the Pledged Collateral.

 

(d)
Other than the exercise of reasonable care to assure the safe custody of the Pledged Collateral while held hereunder, no Secured Party
shall have any duty or liability to preserve rights pertaining thereto and shall be relieved of all responsibility for the Pledged Collateral
upon surrendering it or tendering surrender of it to any of the Pledgor. The Secured Party shall be deemed to have exercised reasonable
care in the custody and preservation of the Pledged Collateral in its possession if the Pledged Collateral is accorded treatment substantially
equal to that which the Secured Party accords its own property, it being understood that no Secured Party shall have responsibility for
(i) ascertaining or taking action with respect to calls, conversions, exchanges, maturities, tenders or other matters relating to any
Pledged Collateral, whether or not the Secured Party has or is deemed to have knowledge of such matters, or (ii) taking any necessary
steps to preserve rights against any parties with respect to any Pledged Collateral. The Secured Party agrees that, with respect to any
Pledged Collateral at any time or times in its possession and in which any other Secured Party has a Lien, the Secured Party in possession
of any such Pledged Collateral shall be the bailee of each other Secured Party solely for purposes of perfecting (to the extent not otherwise
perfected) each other Secured Party’s Lien in such Pledged Collateral, provided that no Secured Party shall be obligated to obtain
or retain possession of any such Pledged Collateral. Without limiting the generality of the foregoing, the Secured Party and Pledgor
hereby agree that any Secured Party that is in possession of any Pledged Collateral at such time as the Secured Obligations owing to
the Secured Party have been paid in full may deliver such Pledged Collateral to the Company or, if requested by any Secured Party prior
to such delivery, may deliver such Pledged Collateral (unless otherwise restricted by applicable law or court order and subject in all
events to the receipt of an indemnification of all liabilities arising from such delivery) to the requesting Secured Party, without recourse
to or representation or warranty by the Secured Party in such possession. No later than the third business day after the Company’s
receipt of such Pledged Collateral, the Company shall deliver to the Secured Party with Secured Obligations then outstanding the Secured
Party Pro Rata Amount of such Pledged Collateral.

 

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(e)
The powers conferred on the Secured Party hereunder are solely to protect its interest in the Pledged Collateral and shall not impose
any duty upon it to exercise any such powers. Except for the safe custody of any Pledged Collateral in its possession and the accounting
for monies actually received by it hereunder, no Secured Party shall have any duty as to any Pledged Collateral or as to the taking of
any necessary steps to preserve rights against prior parties or any other rights pertaining to any Pledged Collateral.

 

(f)
Upon the occurrence and during the continuation of any Event of Default, the Secured Party may at any time in its discretion (i) without
notice to the Pledgor, transfer or register in the name of the Secured Party or any of its nominees any or all of the Pledged Collateral,
subject only to the revocable rights of the Pledgor under Section 8(a) hereof, and (ii) exchange certificates or instruments constituting
Pledged Collateral for certificates or instruments of smaller or larger denominations. The Secured Party in its sole and absolute discretion
may provide notice to Pledgor of such transfer or registration; provided, that, the failure to provide such notice shall not affect the
rights of the Secured Party hereunder.

 

SECTION
10. Remedies Upon Default. If any Event of Default shall have occurred and be continuing:

 

(a)
The Secured Party may exercise in respect of the Pledged Collateral, in addition to other rights and remedies provided for herein or
otherwise available to it, all of the rights and remedies of a secured party on default under the Code then in effect in the State of
New York; and without limiting the generality of the foregoing and without notice except as specified below, sell the Pledged Collateral
or any part thereof in one or more parcels at public or private sale, at any exchange or broker’s board or elsewhere, at such price
or prices and on such other terms as the Secured Party may deem commercially reasonable. The Pledgor agrees that, to the extent notice
of sale shall be required by law, at least ten (10) days’ notice to any of the Pledgor of the time and place of any public sale
or the time after which any private sale is to be made shall constitute reasonable notification. No Secured Party shall be obligated
to make any sale of Pledged Collateral regardless of notice of sale having been given. The Secured Party may adjourn any public or private
sale by the Secured Party from time to time by announcement at the time and place fixed therefor, and such sale may, without further
notice, be made at the time and place to which it was so adjourned.

 

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(b)
The Pledgor recognizes that it may be impracticable to effect a public sale of all or any part of the Pledged Shares or any other securities
constituting Pledged Collateral and that the Secured Party may, therefore, determine to make one or more private sales of any such securities
to a restricted group of purchasers who will be obligated to agree, among other things, to acquire such securities for its own account,
for investment and not with a view to the distribution or resale thereof. The Pledgor acknowledges that any such private sale may be
at prices and on terms less favorable to the seller than the prices and other terms which might have been obtained at a public sale and,
notwithstanding the foregoing, agrees that such private sales shall be deemed to have been made in a commercially reasonable manner and
that no Secured Party shall have any obligation to delay sale of any such securities for the period of time necessary to permit the issuer
of such securities to register such securities for public sale under the Securities Act of 1933, as amended (the “Securities
Act”). The Pledgor further acknowledges and agrees that any offer to sell such securities which has been (i) publicly advertised
on a bona fide basis in a newspaper or other publication of general circulation in the financial community of New York, New York (to
the extent that such an offer may be so advertised without prior registration under the Securities Act) or (ii) made privately in the
manner described above to not less than fifteen (15) bona fide offerees shall be deemed to involve a “public disposition”
for the purposes of Section 9-610 of the Code (or any successor or similar, applicable statutory provision) as then in effect in the
State of New York, notwithstanding that such sale may not constitute a “public offering” under the Securities Act, and that
any Secured Party may, in such event, bid for the purchase of such securities.

 

(c)
Any cash held by any Secured Party as Pledged Collateral and all cash proceeds received by the Secured Party in respect of any sale of,
collection from, or other realization upon, all or any part of the Pledged Collateral shall be applied (after payment of any amounts
payable to the Secured Party pursuant to Section 11 hereof) by the Secured Party against, all or any part of the Secured Obligations
in such order as the Secured Party shall elect consistent with the provisions of the Securities Purchase Agreement.

 

(d)
In the event that the proceeds of any such sale, collection or realization are insufficient to pay all amounts to which any Secured Party
is legally entitled, the Pledgor shall be jointly and severally liable for the deficiency, together with interest thereon at the highest
rate specified in the Notes for interest on overdue principal thereof or such other rate as shall be fixed by applicable law, together
with the costs of collection and the reasonable fees, costs and expenses of any attorneys employed by the Secured Party to collect such
deficiency.

 

SECTION
11. Indemnity and Expenses.

 

(a)
The Pledgor hereby agrees to indemnify and hold the Secured Party (and all of its officers, directors, employees, attorneys, consultants)
harmless from and against any and all claims, damages, losses, liabilities, obligations, penalties, fees, costs and expenses (including,
without limitation, reasonable legal fees and disbursements of counsel) to the extent that they arise out of or otherwise result from
this Agreement (including, without limitation, enforcement of this Agreement), except claims, losses or liabilities arising or resulting
directly from such Person’s gross negligence or willful misconduct as determined by a court of competent jurisdiction.

 

(b)
The Pledgor shall be obligated for, and will upon demand pay to the Secured Party the reasonable amount of any and all out-of-pocket
costs and expenses, including the reasonable fees and disbursements of the Secured Party’s counsel and of any experts which the
Secured Party may incur in connection with (i) the preparation, negotiation, execution, delivery, recordation, administration, amendment,
waiver or other modification or termination of this Agreement, (ii) the custody, preservation, use or operation of, or the sale of, collection
from, or other realization upon, any Pledged Collateral, (iii) the exercise or enforcement of any of the rights of the Secured Party
hereunder, or (iv) the failure by the Pledgor to perform or observe any of the provisions hereof.

 

    	11

     

    

 

SECTION
12. Notices, Etc. All notices and other communications provided for hereunder shall be in writing and shall be mailed (by certified
mail, postage prepaid and return receipt requested), sent by Federal Express or other recognized courier service (return receipt requested),
emailed or delivered, if to the Pledgor, to him at the address specified in the Securities Purchase Agreement or if to the Secured Party,
to it at the address specified in the Securities Purchase Agreement; or as to either such Person at such other address as shall be designated
by such Person in a written notice to such other Person complying as to delivery with the terms of this Section 12. All such notices
and other communications shall be effective (i) if sent by certified mail, postage prepaid, return receipt requested, when received or
three (3) Business Days after mailing, whichever first occurs, (ii) if emailed, when transmitted and confirmation is received, provided
same is on a Business Day and, if not, on the next Business Day or (iii) if delivered or sent by Federal Express or other recognized
courier service (return receipt requested), upon delivery, provided same is on a Business Day and, if not, on the next Business Day.

 

SECTION
13. Security Interest Absolute. All rights of the Secured Party, all Liens and all obligations of the Pledgor hereunder shall
be absolute and unconditional irrespective of: (i) any lack of validity or enforceability of the Securities Purchase Agreement, the Notes
or any other Transaction Document, (ii) any change in the time, manner or place of payment of, or in any other term in respect of, all
or any of the Secured Obligations, or any other amendment or waiver of or consent to any departure from the Securities Purchase Agreement,
the Notes or any other Transaction Document, (iii) any exchange or release of, or non-perfection of any Lien on any Collateral, or any
release or amendment or waiver of or consent to departure from any guaranty, for all or any of the Secured Obligations, or (iv) any other
circumstance which might otherwise constitute a defense available to, or a discharge of, the Pledgor in respect of the Secured Obligations
(other than the payment in full of the Secured Obligations or complete conversion to equity securities of the Company of all indebtedness
obligations owed by the Company to the Secured Party under the Notes (including, without limitation, all principal, interest and fees
related to the Notes)). All authorizations and agencies contained herein with respect to any of the Pledged Collateral are irrevocable
and powers coupled with an interest.

 

    	12

     

    

 

SECTION
14. Beneficial Ownership. The Secured Party shall not have the right to exercise its rights under this Agreement and any such
exercise shall be null and void and treated as if never made, to the extent that after giving effect to such exercise, such Secured Party
together with its other Attribution Parties collectively would beneficially own in excess of 4.99% (the “Maximum Percentage”)
of the shares of Common Stock outstanding immediately after giving effect to such exercise. For purposes of the foregoing sentence, the
aggregate number of shares of Common Stock beneficially owned by a Secured Party and its other Attribution Parties shall include the
number of shares of Common Stock held by the Secured Party and all its other Attribution Parties plus the number of shares of Common
Stock to be acquired by the Secured Party with respect to which the determination of such sentence is being made, but shall exclude the
remaining shares of Common Stock pledged to the Secured Party that are not then being acquired upon the Secured Party’s exercise
of its right hereunder and any shares of Common Stock which would be issuable upon (A) conversion of the remaining, nonconverted portion
of the Note beneficially owned by the Secured Party or any its other Attribution Parties, (B) exercise or conversion of the unexercised
or nonconverted portion of any other securities of the Company (including, without limitation, any convertible notes or convertible preferred
shares or warrants, including, without limitation, the Warrants) beneficially owned by the Secured Party or any its other Attribution
Party subject to a limitation on conversion or exercise analogous to the limitation contained in this Section 14. For purposes of this
Section 14, beneficial ownership shall be calculated in accordance with Section 13(d) of the 1934 Act. For purposes of determining the
number of outstanding shares of Common Stock a Secured Party may acquire upon exercise of its rights hereunder at any time of determination
without exceeding the Maximum Percentage, the Secured Party may rely on the number of outstanding shares of Common Stock as reflected
in (x) the Company’s most recent Annual Report on Form 10-K, Quarterly Report on Form 10-Q, Current Report on Form 8-K or other
public filing with the SEC, as the case may be, (y) a more recent public announcement by the Company or (z) any other written notice
by the Company or the Transfer Agent, if any, setting forth the number of shares of Common Stock outstanding. For any reason at any time,
upon the written or oral request of a Secured Party, the Company shall within one (1) Business Day confirm orally and in writing or by
electronic mail to the Secured party the number of shares of Common Stock then outstanding. In the event that the exercise of rights
by a Secured Party hereunder and transfer of shares of Common Stock from the Pledgor to the Secured Party hereunder would result in the
Secured Party and its other Attribution Parties being deemed to beneficially own, in the aggregate, more than the Maximum Percentage
of the number of outstanding shares of Common Stock (as determined under Section 13(d) of the 1934 Act), the transfer from the Pledgor
to the Secured Party of such number of shares by which the Secured Party’s and its other Attribution Parties’ aggregate beneficial
ownership exceeds the Maximum Percentage (the “Excess Shares”) shall be deemed null and void and shall be cancelled
ab initio, and the Secured Party shall not have the power to vote or to transfer the Excess Shares. Upon delivery of a written notice
to the Company, a Secured Party may from time to time increase (with such increase not effective until the sixty-first (61st) day after
delivery of such notice) or decrease the Maximum Percentage to any other percentage not in excess of 9.99% as specified in such notice;
provided that (i) any such increase in the Maximum Percentage will not be effective until the sixty-first (61st) day after such notice
is delivered to the Company and (ii) any such increase or decrease will apply only to the Secured Party and its other Attribution Parties
and not to any other Secured Party that is not an Attribution Party of the Secured Party. For purposes of clarity, the shares of Common
Stock in excess of the Maximum Percentage shall not be deemed to be beneficially owned by the Secured Party for any purpose including
for purposes of Section 13(d) or Rule 16a-1(a)(1) of the 1934 Act. No prior inability of a Secured Party to exercise its rights hereunder
and acquire any shares of Common Stock from the Pledgor to the Secured Party pursuant to this paragraph shall have any effect on the
applicability of the provisions of this paragraph with respect to any subsequent determination of transferability. The provisions of
this paragraph shall be construed and implemented in a manner otherwise than in strict conformity with the terms of this Section 14 to
the extent necessary to correct this paragraph (or any portion of this paragraph) which may be defective or inconsistent with the intended
beneficial ownership limitation contained in this Section 14 or to make changes or supplements necessary or desirable to properly give
effect to such limitation. The limitation contained in this paragraph may not be waived and shall apply to a successor Secured Party.

 

    	13

     

    

 

SECTION
15. Acknowledgment.

 

(a)
The Secured Party hereby agrees and acknowledges that no other Secured Party has agreed to act for it as an administrative or collateral
agent, and the Secured Party is and shall remain solely responsible for the attachment, perfection and priority of all Liens created
by this Agreement or any other Security Document in favor of the Secured Party. No Secured Party shall have by reason of this Agreement
or any other Transaction Document an agency or fiduciary relationship with any other Secured Party. No Secured Party (which term, as
used in this sentence, shall include reference to the Secured Party’s officers, directors, employees, attorneys, agents and affiliates
and to the officers, directors, employees, attorneys and agents of the Secured Party’s affiliates) shall: (i) have any duties or
responsibilities except those expressly set forth in this Agreement and the other Security Documents or (ii) be required to take, initiate
or conduct any enforcement action (including any litigation, foreclosure or collection proceedings hereunder or under any of the other
Security Documents). Without limiting the foregoing, no Secured Party shall have any right of action whatsoever against any other Secured
Party as a result of the Secured Party acting or refraining from acting hereunder or under any of the Security Documents except as a
result and to the extent of losses caused by the Secured Party’s actual gross negligence or willful misconduct. No Secured Party
assumes any responsibility for any failure or delay in performance or breach by the Pledgor or any Secured Party of its obligations under
this Agreement or any other Transaction Document. No Secured Party makes to any other Secured Party any express or implied warranty,
representation or guarantee with respect to any Secured Obligations, Pledged Collateral, Transaction Document or the Pledgor. No Secured
Party nor any of its officers, directors, employees, attorneys or agents shall be responsible to any other Secured Party or any of its
officers, directors, employees, attorneys or agents for: (i) any recitals, statements, information, representations or warranties contained
in any of the Transaction Documents or in any certificate or other document furnished pursuant to the terms hereof; (ii) the execution,
validity, genuineness, effectiveness or enforceability of any of the Transaction Documents; (iii) the validity, genuineness, enforceability,
collectability, value, sufficiency or existence of any Pledged Collateral, or the attachment, perfection or priority of any Lien therein;
or (iv) the assets, liabilities, financial condition, results of operations, business, creditworthiness or legal status of the Pledgor.
No Secured Party nor any of its officers, directors, employees, attorneys or agents shall have any obligation to any other Secured Party
to ascertain or inquire into the existence of any default or Event of Default, the observance or performance by the Pledgor of any of
the duties or agreements of the Pledgor under any of the Transaction Documents or the satisfaction of any conditions precedent contained
in any of the Transaction Documents.

 

(b)
The Secured Party hereby acknowledges and represents that it has, independently and without reliance upon any other Secured Party, and
based upon such documents, information and analyses as it has deemed appropriate, made its own credit analysis of the Pledgor and the
Company and its own decision to enter into the Transaction Documents and to purchase the Notes and Warrants, and the Secured Party has
made such inquiries concerning the Transaction Documents, the Pledged Collateral, the Company and the Pledgor as the Secured Party feels
necessary and appropriate, and has taken such care on its own behalf as would have been the case had it entered into the Transaction
Documents without any other Secured Party. The Secured Party hereby further acknowledges and represents that the Other Secured Party
have not made any representations or warranties to it concerning the Pledgor, any of the Pledged Collateral or the legality, validity,
sufficiency or enforceability of any of the Transaction Documents. The Secured Party also hereby acknowledges that it will, independently
and without reliance upon the Other Secured Party, and based upon such financial statements, documents and information as it deems appropriate
at the time, continue to make and rely upon its own credit decisions in taking or refraining to take any other action under this Agreement
or the Transaction Documents. The Secured Party shall not have any duty or responsibility to provide the Other Secured Party with any
notices, reports or certificates furnished to the Secured Party by the Pledgor or any credit or other information concerning the affairs,
financial condition, business or assets of the Company (or any of its affiliates) or any Pledgor which may come into possession of the
Secured Party.

 

    	14

     

    

 

SECTION
16. Miscellaneous.

 

(a)
No amendment of any provision of this Agreement shall be effective unless it is in writing and signed by the Pledgor and the Secured
Party, and no waiver of any provision of this Agreement, and no consent to any departure by the Pledgor therefrom, shall be effective
unless it is in writing and signed by the Secured Party, and then such waiver or consent shall be effective only in the specific instance
and for the specific purpose for which given.

 

(b)
No failure on the part of any Secured Party to exercise, and no delay in exercising, any right hereunder or under any other Transaction
Document shall operate as a waiver thereof; nor shall any single or partial exercise of any such right preclude any other or further
exercise thereof or the exercise of any other right. The rights and remedies of the Secured Party provided herein and in the other Transaction
Documents are cumulative and are in addition to, and not exclusive of, any rights or remedies provided by law. The rights of the Secured
Party under any Transaction Document against any party thereto are not conditional or contingent on any attempt by the Secured Party
to exercise any of its rights under any other Transaction Document against such party or against any other Person.

 

(c)
Any provision of this Agreement which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective
to the extent of such prohibition or unenforceability without invalidating the remaining portions hereof or affecting the validity or
enforceability of such provision in any other jurisdiction.

 

(d)
This Agreement shall create a continuing security interest in and Lien on the Pledged Collateral and shall (i) remain in full force and
effect until the termination of this Agreement in accordance with the terms hereof and (ii) be binding on the Pledgor and such Pledgor’s
heirs and assigns and shall inure, together with all rights and remedies of the Secured Party and its successors, transferees and assigns.
Without limiting the generality of clause (ii) of the immediately preceding sentence, the Secured Party may assign or otherwise transfer
its rights and obligations under this Agreement and any other Transaction Document to any other Person pursuant to the terms of the Securities
Purchase Agreement, and such other Person shall thereupon become vested with all of the benefits in respect thereof granted to the Secured
Party herein or otherwise. Upon any such assignment or transfer, all references in this Agreement to the Secured Party shall mean the
assignee of the Secured Party. None of the rights or obligations of the Pledgor hereunder may be assigned or otherwise transferred without
the prior written consent of the Secured Party, and any such assignment or transfer without such consent shall be null and void.

 

    	15

     

    

 

(e)
Notwithstanding anything to the contrary in this Agreement, (i) this Agreement (along with all powers of attorney granted hereunder)
and the security interests and Lien created hereby shall terminate and all rights to the Pledged Collateral shall revert to the Pledgor
upon the repayment in full and/or complete conversion to equity securities of the Company of all indebtedness obligations owed by the
Company to the Secured Party under the Notes (including, without limitation, all principal, interest and fees related to the Notes),
and (ii) the Secured Party will, upon the Pledgor’s request and at the Pledgor’s expense, (A) return to the Pledgor such
of the Pledged Collateral (to the extent delivered to the Secured Party) as shall not have been sold or otherwise disposed of or applied
pursuant to the terms hereof, and (B) execute and deliver to the Pledgor, without recourse, representation or warranty, such documents
as the Pledgor shall reasonably request to evidence such termination.

 

(f)
The internal laws, and not the laws of conflicts, of the State of New York shall govern the enforceability and validity of this Agreement,
the construction of its terms and the interpretation of the rights and duties of the parties, except as required by mandatory provisions
of law and except to the extent that the validity and perfection or the perfection and the effect of perfection or non-perfection of
the security interest and Lien created hereby, or remedies hereunder, in respect of any particular Pledged Collateral are governed by
the law of a jurisdiction other than the State of New York.

 

(g)
Each party to this Agreement hereby irrevocably and unconditionally submits, for itself and its property, to the exclusive jurisdiction
of the United States District Court for the Southern District of New York sitting in Manhattan or the Commercial Division, Civil Branch
of the Supreme Court of the State of New York sitting in New York County in connection with any suit, action or proceeding directly or
indirectly arising out of, under or in connection with this Agreement or the other Transaction Documents or the transactions contemplated
hereby or thereby. No party to this Agreement may move to (i) transfer any such suit, action or proceeding brought in such New York court
or federal court to another jurisdiction, (ii) consolidate any such suit, action or proceeding brought in such New York court or federal
court with a suit, action or proceeding in another jurisdiction or (iii) dismiss any such suit, action or proceeding brought in such
New York court or federal court for the purpose of bringing the same in another jurisdiction. Each party to this Agreement agrees that
a final judgment in any such suit, action or proceeding shall be conclusive and may be enforced in any other jurisdiction by suit on
the judgment or in any other manner provided by law. Each party to this Agreement hereby irrevocably and unconditionally waives, to the
fullest extent it may legally and effectively do so, any objection which it may now or hereafter have to the laying of venue of any suit,
action or proceeding arising out of or relating to this Agreement, or the other Transaction Documents in any New York court sitting in
New York County or any federal court sitting in the Southern District of New York. The Pledgor or any of its properties, assets (including,
without limitation, the Pledged Shares) or revenues does not have any right of immunity under New York law, from any legal action, suit
or proceeding, from the giving of any relief in any such legal action, suit or proceeding, from set-off or counterclaim, from the jurisdiction
of New York or United States federal court, from service of process, attachment upon or prior to judgment, or attachment in aid of execution
of judgment, or from execution of a judgment, or other legal process or proceeding for the giving of any relief or for the enforcement
of a judgment, in any such court, with respect to its obligations, liabilities or any other matter under or arising out of or in connection
with this Agreement; and, to the extent that the Pledgor, or any of its properties, assets (including, without limitation, the Pledged
Shares) or revenues may have or may hereafter become entitled to any such right of immunity in any such court in which proceedings may
at any time be commenced, the Pledgor hereby waives such right to the extent permitted by law and hereby consents to such relief and
enforcement as provided in this Agreement and the other Transaction Documents.

 

    	16

     

    

 

(h)
The Company has appointed Incorporating Services, Ltd. as its agent for service of process in New York. The Pledgor hereby appoints Incorporating
Services, Ltd.as its agent for service of process in New York. Nothing contained herein shall affect the right of the Secured Party to
serve process in any other manner permitted by law or commence legal proceedings or otherwise proceed against the Pledgor or any property
of the Pledgor in any other jurisdiction.

 

(i)
The Pledgor irrevocably and unconditionally waives any right he may have to claim or recover in any legal action, suit or proceeding
referred to in this Section any special, exemplary, punitive or consequential damages.

 

(j)
EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT
OF ANY SUIT, ACTION OR PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT OR OTHER TRANSACTION
DOCUMENTS.

 

(k)
The headings herein are for convenience only, do not constitute a part of this Agreement and shall not be deemed to limit or affect any
of the provisions hereof. The language used in this Agreement will be deemed to be the language chosen by the parties to express their
mutual intent, and no rules of strict construction will be applied against any party.

 

(l)
This Agreement may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which
shall be deemed to be an original, but all of which taken together shall constitute one and the same agreement.

 

[Signature
Page Follows]

 

    	17

     

    

 

In
Witness Whereof, the Pledgor, the Company and the Secured
Party have executed and delivered this Agreement as of the date first above written.

 

	 	PLEDGOR:
	 	 
	 	
	 	Scott
    L. Mathis

 

    	 

     

    

 

In
Witness Whereof, the Pledgor, the Company and the Secured Party have executed and delivered this Agreement as of the date first
above written.

 

	 	COMPANY:
	 	 	 
	 	GAUCHO GROUP HOLDINGS INC.
	 	 	 
	 	By:	 
	 	Name:	Scott L. Mathis
	 	Title:	President & CEO

 

    	 

     

    

  

SCHEDULE
I TO PLEDGE AGREEMENT

 

Pledged
Shares

 

	Pledgor	 	Name of Issuer	 	Number
    of Pledged Shares	 	% Ownership of Outstanding
    Shares	 	Class	 	Secured Party to Initially
    Hold Certificate with respect to such Pledged Shares
	 	 	 	 	 	 	 	 	 	 	 
	Scott
    L. Mathis	 	Gaucho
    Group Holdings, Inc.	 	23,771	 	Less
    than 1%	 	Common	 	3i,
    LP
	 	 	 	 	 	 	 	 	 	 	[Additional Secured Parties] 
	 	 	 	 	 	 	 	 	 	 	 
	Scott
    L. Mathis	 	Gaucho
    Group Holdings, Inc.	 	66,667*	 	Less
    than 1%	 	Common	 	3i,
    LP
	 	 	 	 	 	 	 	 	 	 	 
	THE
    WOW GROUP LLC	 	Gaucho
    Group Holdings, Inc.	 	251,829	 	2.8%	 	Common	 	3i,
    LP
	 	 	 	 	 	 	 	 	 	 	[Additional
    Secured Parties]
	TOTAL	 	 	 	342,267	 	3.8%	 	 	 	 

 

*Options
granted pursuant to the Company’s 2016 equity incentive plan

 

    	 

     

    

 

ANNEX
I

 

TO

 

PLEDGE
AGREEMENT

 

PLEDGE
AMENDMENT

 

This
Pledge Amendment, dated ●, 20●, is delivered pursuant to Section 4 of the Pledge Agreement referred to below. The
undersigned hereby agrees that this Pledge Amendment may be attached to the Pledge Agreement, dated as of _____ __, 2021, made by ___________
in favor of the Secured Party signatory thereto (the “Secured Party”) as it may heretofore have been or hereafter
may be amended or otherwise modified or supplemented from time to time and that the Pledged Shares (or other equity interest) listed
on this Pledge Amendment shall be hereby pledged and assigned to the Secured Party and become part of the Pledged Collateral referred
to in such Pledge Agreement and shall secure all of the obligations referred to in such Pledge Agreement.

 

Pledged
Shares

 

	Pledgor	 	Name
    of Issuer	 	Number
                                            of Shares

    
	 	Class	 	Certificate
    No(s)
	 	 	 	 	 	 	 	 	 

 

	 	PLEDGOR:
	 	 
	 	 
	 	[
               ]Exhibit
10.5

 

REGISTRATION
RIGHTS AGREEMENT

 

This
REGISTRATION RIGHTS AGREEMENT (this “Agreement”), dated as of November __, 2021, is by and among Gaucho Group
Holdings Inc., a Delaware corporation with offices located at 112 NE 41st Street, Suite 106, Miami, Florida 33137 (the “Company”),
and the undersigned buyers (each, a “Buyer,” and collectively, the “Buyers”).

 

RECITALS

 

A.
In connection with the Securities Purchase Agreement by and among the parties hereto, dated as of November 3, 2021 (the “Securities
Purchase Agreement”), the Company has agreed, upon the terms and subject to the conditions of the Securities Purchase Agreement,
to issue and sell to each Buyer the Notes (as defined in the Securities Purchase Agreement) which will be convertible into Conversion
Shares (as defined in the Securities Purchase Agreement) in accordance with the terms of the Notes.

 

B.
To induce the Buyers to consummate the transactions contemplated by the Securities Purchase Agreement, the Company has agreed to provide
certain registration rights under the Securities Act of 1933, as amended, and the rules and regulations thereunder, or any similar successor
statute (collectively, the “1933 Act”), and applicable state securities laws.

 

AGREEMENT

 

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

 

1.
Definitions.

 

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

 

(a)
“Business Day” means any day other than Saturday, Sunday or other day on which commercial banks in The City of New
York are authorized or required by law to remain closed; provided, however, for clarification,
commercial banks shall not be deemed to be authorized or required by law to remain closed due to “stay at home”, “shelter-in-place”,
“non-essential employee” or any other similar orders or restrictions or the closure of any physical branch locations at the
direction of any governmental authority so long as the electronic funds transfer systems (including for wire transfers) of commercial
banks in The City of New York generally are open for use by customers on such day.

 

(b)
“Closing Date” shall have the meaning set forth in the Securities Purchase Agreement.

 

(c)
“Effective Date” means the date that the applicable Registration Statement has been declared effective by the SEC.

 

    	 

    	 

    

 

(d)
“Effectiveness Deadline” means (i) with respect to the initial Registration Statement required to be filed pursuant
to Section 2(a), the earlier of the (A) 60th calendar day (or, if a full review by the SEC the 120th calendar day)
after the Closing Date and (B) 2nd Business Day after the date the Company is notified (orally or in writing, whichever is earlier) by
the SEC that such Registration Statement will not be reviewed or will not be subject to further review and (ii) with respect to any additional
Registration Statements that may be required to be filed by the Company pursuant to this Agreement, the earlier of the (A) 60th
calendar day (or, if a full review by the SEC the 120th calendar day) following the date on which the Company was required
to file such additional Registration Statement and (B) 2nd Business Day after the date the Company is notified (orally or
in writing, whichever is earlier) by the SEC that such Registration Statement will not be reviewed or will not be subject to further
review.

 

(e)
“Filing Deadline” means (i) with respect to the initial Registration Statement required to be filed pursuant to Section
2(a), the 30th calendar day after the Closing Date and (ii) with respect to any additional Registration Statements that may
be required to be filed by the Company pursuant to this Agreement, the date on which the Company was required to file such additional
Registration Statement pursuant to the terms of this Agreement.

 

(f)
“Investor” means a Buyer or any transferee or assignee of any Registrable Securities or Notes, as applicable, to whom
a Buyer assigns its rights under this Agreement and who agrees to become bound by the provisions of this Agreement in accordance with
Section 9 and any transferee or assignee thereof to whom a transferee or assignee of any Registrable Securities or Notes, as applicable,
assigns its rights under this Agreement and who agrees to become bound by the provisions of this Agreement in accordance with Section
9.

 

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

 

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

 

(i)
“Registrable Securities” means (i) the Conversion Shares, and (ii) any capital stock of the Company issued or issuable
with respect to the Conversion Shares or the Notes, including, without limitation, (1) as a result of any stock split, stock dividend,
recapitalization, exchange or similar event or otherwise and (2) shares of capital stock of the Company into which the shares of Common
Stock (as defined in the Notes) are converted or exchanged and shares of capital stock of a Successor Entity (as defined in the Notes)
into which the shares of Common Stock are converted or exchanged, in each case, without regard to any limitations on conversion of the
Notes.

 

(j)
“Registration Statement” means a registration statement or registration statements of the Company filed under the
1933 Act covering Registrable Securities.

 

    	2

     

    

 

(k)
“Required Holders” shall have the meaning as set forth in the Securities Purchase Agreement.

 

(l)
“Required Registration Amount” means 100% of the maximum number of Conversion Shares issuable upon conversion of the
Notes (assuming for purposes hereof that (x) the Notes are convertible at the Floor Price (as defined in the Notes), (y) interest on
the Notes shall accrue through the first anniversary of the Closing Date and will be converted in shares of Common Stock at an interest
conversion price equal to the Floor Price assuming an Interest Date (as defined in the Note) as of the date hereof and (z) any such conversion
shall not take into account any limitations on the conversion of the Notes set forth in the Notes), all subject to adjustment as provided
in Section 2(d) and/or Section 2(f).

 

(m)
“Rule 144” means Rule 144 promulgated by the SEC under the 1933 Act, as such rule may be amended from time to time,
or any other similar or successor rule or regulation of the SEC that may at any time permit the Investors to sell securities of the Company
to the public without registration.

 

(n)
“Rule 415” means Rule 415 promulgated by the SEC under the 1933 Act, as such rule may be amended from time to time,
or any other similar or successor rule or regulation of the SEC providing for offering securities on a continuous or delayed basis.

 

(o)
“SEC” means the United States Securities and Exchange Commission or any successor thereto.

 

2.
Registration.

 

(a)
Mandatory Registration. The Company shall prepare and, as soon as practicable, but in no event later than the Filing Deadline,
file with the SEC an initial Registration Statement on Form S-3 covering the resale of all of the Registrable Securities, provided that
such initial Registration Statement shall register for resale at least the number of shares of Common Stock equal to the Required Registration
Amount as of the date such Registration Statement is initially filed with the SEC; provided further that if Form S-3 is unavailable for
such a registration, the Company shall use such other form as is required by Section 2(c). Such initial Registration Statement, and each
other Registration Statement required to be filed pursuant to the terms of this Agreement, shall contain (except if otherwise directed
by the Required Holders) the “Selling Stockholders” and “Plan of Distribution” sections in substantially
the form attached hereto as Exhibit A. The Company shall use its best efforts to have such initial Registration Statement, and
each other Registration Statement required to be filed pursuant to the terms of this Agreement, declared effective by the SEC as soon
as practicable, but in no event later than the applicable Effectiveness Deadline for such Registration Statement.

 

(b)
Legal Counsel. Subject to Section 5 hereof, Kelley Drye & Warren LLP, counsel solely to the lead investor (“Legal
Counsel”) shall review and oversee any registration, solely on behalf of the lead investor, pursuant to this Section 2.

 

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

 

    	3

     

    

 

(d)
Sufficient Number of Shares Registered. In the event the number of shares available under any Registration Statement is insufficient
to cover all of the Registrable Securities required to be covered by such Registration Statement or an Investor’s allocated portion
of the Registrable Securities pursuant to Section 2(h), the Company shall amend such Registration Statement (if permissible), or file
with the SEC a new Registration Statement (on the short form available therefor, if applicable), or both, so as to cover at least the
Required Registration Amount as of the Trading Day immediately preceding the date of the filing of such amendment or new Registration
Statement, in each case, as soon as practicable, but in any event not later than fifteen (15) days after the necessity therefor arises
(but taking account of any Staff position with respect to the date on which the Staff will permit such amendment to the Registration
Statement and/or such new Registration Statement (as the case may be) to be filed with the SEC). The Company shall use its best efforts
to cause such amendment to such Registration Statement and/or such new Registration Statement (as the case may be) to become effective
as soon as practicable following the filing thereof with the SEC, but in no event later than the applicable Effectiveness Deadline for
such Registration Statement. For purposes of the foregoing provision, the number of shares available under a Registration Statement shall
be deemed “insufficient to cover all of the Registrable Securities” if at any time the number of shares of Common Stock available
for resale under the applicable Registration Statement is less than the product determined by multiplying (i) the Required Registration
Amount as of such time by (ii) 0.90. The calculation set forth in the foregoing sentence shall be made without regard to any limitations
on conversion, amortization and/or redemption of the Notes (and such calculation shall assume (A) that the Notes are then convertible
in full into shares of Common Stock at the then prevailing Conversion Rate (as defined in the Notes) and (B) the initial outstanding
principal amount of the Notes remains outstanding through the scheduled Maturity Date (as defined in the Notes) and no redemptions of
the Notes occur prior to the scheduled Maturity Date.

 

    	4

     

    

  

(e)
Effect of Failure to File and Obtain and Maintain Effectiveness of any Registration Statement. If (i) a Registration Statement
covering the resale of all of the Registrable Securities required to be covered thereby (disregarding any reduction pursuant to Section
2(f)) and required to be filed by the Company pursuant to this Agreement is (A) not filed with the SEC on or before the Filing Deadline
for such Registration Statement (a “Filing Failure”) (it being understood that if the Company files a Registration
Statement without affording each Investor and Legal Counsel the opportunity to review and comment on the same as required by Section
3(c) hereof, the Company shall be deemed to not have satisfied this clause (i)(A) and such event shall be deemed to be a Filing Failure)
or (B) not declared effective by the SEC on or before the Effectiveness Deadline for such Registration Statement (an “Effectiveness
Failure”) (it being understood that if on the Business Day immediately following the Effective Date for such Registration Statement
the Company shall not have filed a “final” prospectus for such Registration Statement with the SEC under Rule 424(b) in accordance
with Section 3(b) (whether or not such a prospectus is technically required by such rule), the Company shall be deemed to not have satisfied
this clause (i)(B) and such event shall be deemed to be an Effectiveness Failure), (ii) other than during an Allowable Grace Period (as
defined below), on any day after the Effective Date of a Registration Statement sales of all of the Registrable Securities required to
be included on such Registration Statement (disregarding any reduction pursuant to Section 2(f)) cannot be made pursuant to such Registration
Statement (including, without limitation, because of a failure to keep such Registration Statement effective, a failure to disclose such
information as is necessary for sales to be made pursuant to such Registration Statement, a suspension or delisting of (or a failure
to timely list) the shares of Common Stock on the Principal Market (as defined in the Securities Purchase Agreement) or any other limitations
imposed by the Principal Market, or a failure to register a sufficient number of shares of Common Stock or by reason of a stop order)
or the prospectus contained therein is not available for use for any reason (a “Maintenance Failure”), or (iii) if
a Registration Statement is not effective for any reason or the prospectus contained therein is not available for use for any reason,
and either (x) the Company fails for any reason to satisfy the requirements of Rule 144(c)(1), including, without limitation, the failure
to satisfy the current public information requirement under Rule 144(c) or (y) the Company has ever been an issuer described in Rule
144(i)(1)(i) or becomes such an issuer in the future, and the Company shall fail to satisfy any condition set forth in Rule 144(i)(2)
(a “Current Public Information Failure”) as a result of which any of the Investors are unable to sell Registrable
Securities without restriction under Rule 144 (including, without limitation, volume restrictions), then, as partial relief for the damages
to any holder by reason of any such delay in, or reduction of, its ability to sell the underlying shares of Common Stock (which remedy
shall not be exclusive of any other remedies available at law or in equity, including, without limitation, specific performance), the
Company shall pay to each holder of Registrable Securities relating to such Registration Statement an amount in cash equal to two percent
(2%) of such Investor’s original principal amount stated in such Investor’s Note on the Closing Date (1) on the date of such
Filing Failure, Effectiveness Failure, Maintenance Failure or Current Public Information Failure, as applicable, and (2) on every thirty
(30) day anniversary of (I) a Filing Failure until such Filing Failure is cured; (II) an Effectiveness Failure until such Effectiveness
Failure is cured; (III) a Maintenance Failure until such Maintenance Failure is cured; and (IV) a Current Public Information Failure
until the earlier of (i) the date such Current Public Information Failure is cured and (ii) such time that such public information is
no longer required pursuant to Rule 144 (in each case, pro rated for periods totaling less than thirty (30) days). The payments to which
a holder of Registrable Securities shall be entitled pursuant to this Section 2(e) are referred to herein as “Registration Delay
Payments.” Following the initial Registration Delay Payment for any particular event or failure (which shall be paid on the
date of such event or failure, as set forth above), without limiting the foregoing, if an event or failure giving rise to the Registration
Delay Payments is cured prior to any thirty (30) day anniversary of such event or failure, then such Registration Delay Payment shall
be made on the third (3rd) Business Day after such cure. In the event the Company fails to make Registration Delay Payments
in a timely manner in accordance with the foregoing, such Registration Delay Payments shall bear interest at the rate of two percent
(2%) per month (prorated for partial months) until paid in full. Notwithstanding the foregoing, no Registration Delay Payments shall
be owed to an Investor (other than with respect to a Maintenance Failure resulting from a suspension or delisting of (or a failure to
timely list) the shares of Common Stock on the Principal Market) with respect to any period during which all of such Investor’s
Registrable Securities may be sold by such Investor without restriction under Rule 144 (including, without limitation, volume restrictions)
and without the need for current public information required by Rule 144(c)(1) (or Rule 144(i)(2), if applicable).

 

(f)
Offering. Notwithstanding anything to the contrary contained in this Agreement, but subject to the payment of the Registration
Delay Payments pursuant to Section 2(e), in the event the staff of the SEC (the “Staff”) or the SEC seeks to characterize
any offering pursuant to a Registration Statement filed pursuant to this Agreement as constituting an offering of securities by, or on
behalf of, the Company, or in any other manner, such that the Staff or the SEC do not permit such Registration Statement to become effective
and used for resales in a manner that does not constitute such an offering and that permits the continuous resale at the market by the
Investors participating therein (or as otherwise may be acceptable to each Investor) without being named therein as an “underwriter,”
then the Company shall reduce the number of shares to be included in such Registration Statement by all Investors until such time as
the Staff and the SEC shall so permit such Registration Statement to become effective as aforesaid. In making such reduction, the Company
shall reduce the number of shares to be included by all Investors on a pro rata basis (based upon the number of Registrable Securities
otherwise required to be included for each Investor) unless the inclusion of shares by a particular Investor or a particular set of Investors
are resulting in the Staff or the SEC’s “by or on behalf of the Company” offering position, in which event the shares
held by such Investor or set of Investors shall be the only shares subject to reduction (and if by a set of Investors on a pro rata basis
by such Investors or on such other basis as would result in the exclusion of the least number of shares by all such Investors); provided,
that, with respect to such pro rata portion allocated to any Investor, such Investor may elect the allocation of such pro rata portion
among the Registrable Securities of such Investor. In addition, in the event that the Staff or the SEC requires any Investor seeking
to sell securities under a Registration Statement filed pursuant to this Agreement to be specifically identified as an “underwriter”
in order to permit such Registration Statement to become effective, and such Investor does not consent to being so named as an underwriter
in such Registration Statement, then, in each such case, the Company shall reduce the total number of Registrable Securities to be registered
on behalf of such Investor, until such time as the Staff or the SEC does not require such identification or until such Investor accepts
such identification and the manner thereof. Any reduction pursuant to this paragraph will first reduce all Registrable Securities other
than those issued pursuant to the Securities Purchase Agreement. In the event of any reduction in Registrable Securities pursuant to
this paragraph, an affected Investor shall have the right to require, upon delivery of a written request to the Company signed by such
Investor, the Company to file a registration statement within twenty (20) days of such request (subject to any restrictions imposed by
Rule 415 or required by the Staff or the SEC) for resale by such Investor in a manner acceptable to such Investor, and the Company shall
following such request cause to be and keep effective such registration statement in the same manner as otherwise contemplated in this
Agreement for registration statements hereunder, in each case until such time as: (i) all Registrable Securities held by such Investor
have been registered and sold pursuant to an effective Registration Statement in a manner acceptable to such Investor or (ii) all Registrable
Securities may be resold by such Investor without restriction (including, without limitation, volume limitations) pursuant to Rule 144
(taking account of any Staff position with respect to “affiliate” status) and without the need for current public information
required by Rule 144(c)(1) (or Rule 144(i)(2), if applicable) or (iii) such Investor agrees to be named as an underwriter in any such
Registration Statement in a manner acceptable to such Investor as to all Registrable Securities held by such Investor and that have not
theretofore been included in a Registration Statement under this Agreement (it being understood that the special demand right under this
sentence may be exercised by an Investor multiple times and with respect to limited amounts of Registrable Securities in order to permit
the resale thereof by such Investor as contemplated above).

 

    	5

     

    

 

(g)
Piggyback Registrations. Without limiting any obligation of the Company hereunder or under the Securities Purchase Agreement,
if there is not an effective Registration Statement covering all of the Registrable Securities or the prospectus contained therein is
not available for use and the Company shall determine to prepare and file with the SEC a registration statement or offering statement
relating to an offering for its own account or the account of others under the 1933 Act of any of its equity securities (other than on
Form S-4 or Form S-8 (each as promulgated under the 1933 Act) or their then equivalents relating to equity securities to be issued solely
in connection with any acquisition of any entity or business or equity securities issuable in connection with the Company’s stock
option or other employee benefit plans), then the Company shall deliver to each Investor a written notice of such determination and,
if within fifteen (15) days after the date of the delivery of such notice, any such Investor shall so request in writing, the Company
shall include in such registration statement or offering statement all or any part of such Registrable Securities such Investor requests
to be registered; provided, however, the Company shall not be required to register any Registrable Securities pursuant to this Section
2(g) that are eligible for resale pursuant to Rule 144 without restriction (including, without limitation, volume restrictions) and without
the need for current public information required by Rule 144(c)(1) (or Rule 144(i)(2), if applicable) or that are the subject of a then-effective
Registration Statement.

 

(h)
Allocation of Registrable Securities. The initial number of Registrable Securities included in any Registration Statement and
any increase in the number of Registrable Securities included therein shall be allocated pro rata among the Investors based on the number
of Registrable Securities held by each Investor at the time such Registration Statement covering such initial number of Registrable Securities
or increase thereof is declared effective by the SEC. In the event that an Investor sells or otherwise transfers any of such Investor’s
Registrable Securities, each transferee or assignee (as the case may be) that becomes an Investor shall be allocated a pro rata portion
of the then-remaining number of Registrable Securities included in such Registration Statement for such transferor or assignee (as the
case may be). Any shares of Common Stock included in a Registration Statement and which remain allocated to any Person which ceases to
hold any Registrable Securities covered by such Registration Statement shall be allocated to the remaining Investors, pro rata based
on the number of Registrable Securities then held by such Investors which are covered by such Registration Statement.

 

(i)
No Inclusion of Other Securities. The Company shall in no event include any securities other than Registrable Securities on any
Registration Statement filed in accordance herewith without the prior written consent of the Required Holders. Until the Applicable Date
(as defined in the Securities Purchase Agreement), the Company shall not enter into any agreement providing any registration rights to
any of its security holders, except as otherwise permitted under the Securities Purchase Agreement.

 

    	6

     

    

 

3.
Related Obligations.

 

The
Company shall use its best efforts to effect the registration of the Registrable Securities in accordance with the intended method of
disposition thereof, and, pursuant thereto, the Company shall have the following obligations:

 

(a)
The Company shall promptly prepare and file with the SEC a Registration Statement with respect to all the Registrable Securities (but
in no event later than the applicable Filing Deadline) and use its best efforts to cause such Registration Statement to become effective
as soon as practicable after such filing (but in no event later than the Effectiveness Deadline). Subject to Allowable Grace Periods,
the Company shall keep each Registration Statement effective (and the prospectus contained therein available for use) pursuant to Rule
415 for resales by the Investors on a delayed or continuous basis at then-prevailing market prices (and not fixed prices) at all times
until the earlier of (i) the date as of which all of the Investors may sell all of the Registrable Securities required to be covered
by such Registration Statement (disregarding any reduction pursuant to Section 2(f)) without restriction pursuant to Rule 144 (including,
without limitation, volume restrictions) and without the need for current public information required by Rule 144(c)(1) (or Rule 144(i)(2),
if applicable) or (ii) the date on which the Investors shall have sold all of the Registrable Securities covered by such Registration
Statement (the “Registration Period”). Notwithstanding anything to the contrary contained in this Agreement, the Company
shall ensure that, when filed and at all times while effective, each Registration Statement (including, without limitation, all amendments
and supplements thereto) and the prospectus (including, without limitation, all amendments and supplements thereto) used in connection
with such Registration Statement (1) shall not contain any untrue statement of a material fact or omit to state a material fact required
to be stated therein, or necessary to make the statements therein (in the case of prospectuses, in the light of the circumstances in
which they were made) not misleading and (2) will disclose (whether directly or through incorporation by reference to other SEC filings
to the extent permitted) all material information regarding the Company and its securities. The Company shall submit to the SEC, within
two Business Days after the later of the date that (i) the Company learns that no review of a particular Registration Statement will
be made by the Staff or that the Staff has no further comments on a particular Registration Statement (as the case may be) and (ii) the
consent of Legal Counsel is obtained pursuant to Section 3(c) (which consent shall be immediately sought), a request for acceleration
of effectiveness of such Registration Statement to a time and date not later than twenty-four (24) hours after the submission of such
request. The Company shall respond in writing to comments made by the SEC in respect of a Registration Statement as soon as practicable,
but in no event later than fifteen (15) days after the receipt of comments by or notice from the SEC that an amendment is required in
order for a Registration Statement to be declared effective.

 

    	7

     

    

 

(b)
Subject to Section 3(r) of this Agreement, the Company shall prepare and file with the SEC such amendments (including, without limitation,
post-effective amendments) and supplements to each Registration Statement and the prospectus used in connection with each such Registration
Statement, which prospectus is to be filed pursuant to Rule 424 promulgated under the 1933 Act, as may be necessary to keep each such
Registration Statement effective at all times during the Registration Period for such Registration Statement, and, during such period,
comply with the provisions of the 1933 Act with respect to the disposition of all Registrable Securities of the Company required to be
covered by such Registration Statement until such time as all of such Registrable Securities shall have been disposed of in accordance
with the intended methods of disposition by the seller or sellers thereof as set forth in such Registration Statement; provided, however,
by 8:30 a.m. (New York time) on the Business Day immediately following each Effective Date, the Company shall file with the SEC in accordance
with Rule 424(b) under the 1933 Act the final prospectus to be used in connection with sales pursuant to the applicable Registration
Statement (whether or not such a prospectus is technically required by such rule). In the case of amendments and supplements to any Registration
Statement which are required to be filed pursuant to this Agreement (including, without limitation, pursuant to this Section 3(b)) by
reason of the Company filing a report on Form 8-K, Form 10-Q or Form 10-K or any analogous report under the Securities Exchange Act of
1934, as amended (the “1934 Act”), the Company shall, if permitted under the applicable rules and regulations of the
SEC, have incorporated such report by reference into such Registration Statement, if applicable, or shall file such amendments or supplements
with the SEC on the same day on which the 1934 Act report is filed which created the requirement for the Company to amend or supplement
such Registration Statement.

 

(c)
The Company shall (A) permit Legal Counsel and legal counsel for each other Investor to review and comment upon (i) each Registration
Statement at least five (5) Business Days prior to its filing with the SEC and (ii) all amendments and supplements to each Registration
Statement (including, without limitation, the prospectus contained therein) (except for Annual Reports on Form 10-K, Quarterly Reports
on Form 10-Q, Current Reports on Form 8-K, and any similar or successor reports) within a reasonable number of days prior to their filing
with the SEC, and (B) not file any Registration Statement or amendment or supplement thereto in a form to which Legal Counsel or any
legal counsel for any other Investor reasonably objects. The Company shall not submit a request for acceleration of the effectiveness
of a Registration Statement or any amendment or supplement thereto or to any prospectus contained therein without the prior consent of
Legal Counsel, which consent shall not be unreasonably withheld. The Company shall promptly furnish to Legal Counsel and legal counsel
for each other Investor, without charge, (i) copies of any correspondence from the SEC or the Staff to the Company or its representatives
relating to each Registration Statement, provided that such correspondence shall not contain any material, non-public information regarding
the Company or any of its Subsidiaries (as defined in the Securities Purchase Agreement), (ii) after the same is prepared and filed with
the SEC, one (1) copy of each Registration Statement and any amendment(s) and supplement(s) thereto, including, without limitation, financial
statements and schedules, all documents incorporated therein by reference, if requested by an Investor, and all exhibits and (iii) upon
the effectiveness of each Registration Statement, one (1) copy of the prospectus included in such Registration Statement and all amendments
and supplements thereto. The Company shall reasonably cooperate with Legal Counsel and legal counsel for each other Investor in performing
the Company’s obligations pursuant to this Section 3.

 

(d)
The Company shall promptly furnish electronically to each Investor whose Registrable Securities are included in any Registration Statement,
without charge, (i) after the same is prepared and filed with the SEC, at least one (1) copy of each Registration Statement and any amendment(s)
and supplement(s) thereto, including, without limitation, financial statements and schedules, all documents incorporated therein by reference,
if requested by an Investor, all exhibits and each preliminary prospectus, (ii) upon the effectiveness of each Registration Statement,
an electronic copy of the prospectus included in such Registration Statement and all amendments and supplements thereto and (iii) such
other documents, including, without limitation, copies of any preliminary or final prospectus, as such Investor may reasonably request
from time to time in order to facilitate the disposition of the Registrable Securities owned by such Investor.

 

    	8

     

    

 

(e)
The Company shall use its best efforts to (i) register and qualify, unless an exemption from registration and qualification applies,
the resale by Investors of the Registrable Securities covered by a Registration Statement under such other securities or “blue
sky” laws of New York, in the United States, (ii) prepare and file in such jurisdiction, such amendments (including, without limitation,
post-effective amendments) and supplements to such registrations and qualifications as may be necessary to maintain the effectiveness
thereof during the Registration Period, (iii) take such other actions as may be necessary to maintain such registrations and qualifications
in effect at all times during the Registration Period, and (iv) take all other actions reasonably necessary or advisable to qualify the
Registrable Securities for sale in such jurisdictions; provided, however, the Company shall not be required in connection therewith or
as a condition thereto to (x) qualify to do business in any jurisdiction where it would not otherwise be required to qualify but for
this Section 3(e), (y) subject itself to general taxation in any such jurisdiction, or (z) file a general consent to service of process
in any such jurisdiction. The Company shall promptly notify Legal Counsel, legal counsel for each other Investor and each Investor who
holds Registrable Securities of the receipt by the Company of any notification with respect to the suspension of the registration or
qualification of any of the Registrable Securities for sale under the securities or “blue sky” laws of any jurisdiction in
the United States or its receipt of actual notice of the initiation or threatening of any proceeding for such purpose.

 

(f)
The Company shall notify Legal Counsel, legal counsel for each other Investor and each Investor in writing of the happening of any event,
as promptly as practicable after becoming aware of such event, as a result of which the prospectus included in a Registration Statement,
as then in effect, may include an untrue statement of a material fact or omission to state a material fact required to be stated therein
or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading (provided that
in no event shall such notice contain any material, non-public information regarding the Company or any of its Subsidiaries), and, subject
to Section 3(r), promptly prepare a supplement or amendment to such Registration Statement and such prospectus contained therein to correct
such untrue statement or omission and deliver an electronic copy of such supplement or amendment to Legal Counsel, legal counsel for
each other Investor and each Investor (or such other number of copies as Legal Counsel, legal counsel for each other Investor or such
Investor may reasonably request). The Company shall also promptly notify Legal Counsel, legal counsel for each other Investor and each
Investor in writing (i) when a prospectus or any prospectus supplement or post-effective amendment has been filed, when a Registration
Statement or any post-effective amendment has become effective (notification of such effectiveness shall be delivered to Legal Counsel,
legal counsel for each other Investor and each Investor by facsimile or e-mail on the same day of such effectiveness and by overnight
mail), and when the Company receives written notice from the SEC that a Registration Statement or any post-effective amendment will be
reviewed by the SEC, (ii) of any request by the SEC for amendments or supplements to a Registration Statement or related prospectus or
related information, (iii) of the Company’s reasonable determination that a post-effective amendment to a Registration Statement
would be appropriate; and (iv) of the receipt of any request by the SEC or any other federal or state governmental authority for any
additional information relating to the Registration Statement or any amendment or supplement thereto or any related prospectus. The Company
shall respond as promptly as practicable to any comments received from the SEC with respect to each Registration Statement or any amendment
thereto (it being understood and agreed that the Company’s response to any such comments shall be delivered to the SEC no later
than fifteen (15) Business Days after the receipt thereof).

 

    	9

     

    

 

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

 

(h)
If any Investor may be required under applicable securities law to be described in any Registration Statement as an underwriter and such
Investor consents to so being named an underwriter, at the request of any Investor, the Company shall furnish to such Investor, on the
date of the effectiveness of such Registration Statement and thereafter from time to time on such dates as an Investor may reasonably
request (i) a letter, dated such date, from the Company’s independent certified public accountants in form and substance as is
customarily given by independent certified public accountants to underwriters in an underwritten public offering, addressed to the Investors,
and (ii) an opinion, dated as of such date, of counsel representing the Company for purposes of such Registration Statement, in form,
scope and substance as is customarily given in an underwritten public offering, addressed to the Investors.

 

(i)
If any Investor may be required under applicable securities law to be described in any Registration Statement as an underwriter and such
Investor consents to so being named an underwriter, upon the written request of such Investor, the Company shall make available for inspection
by (i) such Investor, (ii) legal counsel for such Investor and (iii) one (1) firm of accountants or other agents retained by such Investor
(collectively, the “Inspectors”), all pertinent financial and other records, and pertinent corporate documents and
properties of the Company (collectively, the “Records”), as shall be reasonably deemed necessary by each Inspector,
and cause the Company’s officers, directors and employees to supply all information which any Inspector may reasonably request;
provided, however, each Inspector shall agree in writing to hold in strict confidence and not to make any disclosure (except to such
Investor) or use of any Record or other information which the Company’s board of directors determines in good faith to be confidential,
and of which determination the Inspectors are so notified, unless (1) the disclosure of such Records is necessary to avoid or correct
a misstatement or omission in any Registration Statement or is otherwise required under the 1933 Act, (2) the release of such Records
is ordered pursuant to a final, non-appealable subpoena or order from a court or government body of competent jurisdiction, or (3) the
information in such Records has been made generally available to the public other than by disclosure in violation of this Agreement or
any other Transaction Document (as defined in the Securities Purchase Agreement). Such Investor agrees that it shall, upon learning that
disclosure of such Records is sought in or by a court or governmental body of competent jurisdiction or through other means, give prompt
notice to the Company and allow the Company, at its expense, to undertake appropriate action to prevent disclosure of, or to obtain a
protective order for, the Records deemed confidential. Nothing herein (or in any other confidentiality agreement between the Company
and such Investor, if any) shall be deemed to limit any Investor’s ability to sell Registrable Securities in a manner which is
otherwise consistent with applicable laws and regulations.

 

    	10

     

    

 

(j)
The Company shall hold in confidence and not make any disclosure of information concerning an Investor provided to the Company unless
(i) disclosure of such information is necessary to comply with federal or state securities laws, (ii) the disclosure of such information
is necessary to avoid or correct a misstatement or omission in any Registration Statement or is otherwise required to be disclosed in
such Registration Statement pursuant to the 1933 Act, (iii) the release of such information is ordered pursuant to a subpoena or other
final, non-appealable order from a court or governmental body of competent jurisdiction, or (iv) such information has been made generally
available to the public other than by disclosure in violation of this Agreement or any other Transaction Document. The Company agrees
that it shall, upon learning that disclosure of such information concerning an Investor is sought in or by a court or governmental body
of competent jurisdiction or through other means, give prompt written notice to such Investor and allow such Investor, at such Investor’s
expense, to undertake appropriate action to prevent disclosure of, or to obtain a protective order for, such information.

 

(k)
Without limiting any obligation of the Company under the Securities Purchase Agreement, the Company shall use its best efforts either
to (i) cause all of the Registrable Securities covered by each Registration Statement to be listed on each securities exchange on which
securities of the same class or series issued by the Company are then listed, if any, if the listing of such Registrable Securities is
then permitted under the rules of such exchange, (ii) secure designation and quotation of all of the Registrable Securities covered by
each Registration Statement on an Eligible Market (as defined in the Securities Purchase Agreement), or (iii) if, despite the Company’s
best efforts to satisfy the preceding clauses (i) or (ii) the Company is unsuccessful in satisfying the preceding clauses (i) or (ii),
without limiting the generality of the foregoing, to use its best efforts to arrange for at least two market makers to register with
the Financial Industry Regulatory Authority (“FINRA”) as such with respect to such Registrable Securities. In addition,
the Company shall cooperate with each Investor and any broker or dealer through which any such Investor proposes to sell its Registrable
Securities in effecting a filing with FINRA pursuant to FINRA Rule 5110 as requested by such Investor. The Company shall pay all fees
and expenses in connection with satisfying its obligations under this Section 3(k).

 

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

 

    	11

     

    

 

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

 

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

 

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

 

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

 

(q)
Within one (1) Business Day after a Registration Statement which covers Registrable Securities is declared effective by the SEC, the
Company shall deliver, and shall cause legal counsel for the Company to deliver, to the transfer agent for such Registrable Securities
(with copies to the Investors whose Registrable Securities are included in such Registration Statement) confirmation that such Registration
Statement has been declared effective by the SEC in the form required by the transfer agent.

 

(r)
Notwithstanding anything to the contrary herein (but subject to the last sentence of this Section 3(r)), at any time after the Effective
Date of a particular Registration Statement, the Company may delay the disclosure of material, non-public information concerning the
Company or any of its Subsidiaries the disclosure of which at the time is not, in the good faith opinion of the board of directors of
the Company, in the best interest of the Company and, in the opinion of counsel to the Company, otherwise required (a “Grace
Period”), provided that the Company shall promptly notify the Investors in writing of the (i) existence of material, non-public
information giving rise to a Grace Period (provided that in each such notice the Company shall not disclose the content of such material,
non-public information to any of the Investors) and the date on which such Grace Period will begin and (ii) date on which such Grace
Period ends, provided further that (I) no Grace Period shall exceed ten (10) consecutive days and during any three hundred sixty five
(365) day period all such Grace Periods shall not exceed an aggregate of thirty (30) days, (II) the first day of any Grace Period must
be at least five (5) Trading Days after the last day of any prior Grace Period and (III) no Grace Period may exist during the sixty (60)
Trading Day period immediately following the Effective Date of such Registration Statement (provided that such sixty (60) Trading Day
period shall be extended by the number of Trading Days during such period and any extension thereof contemplated by this proviso during
which such Registration Statement is not effective or the prospectus contained therein is not available for use) (each, an “Allowable
Grace Period”). For purposes of determining the length of a Grace Period above, such Grace Period shall begin on and include
the date the Investors receive the notice referred to in clause (i) above and shall end on and include the later of the date the Investors
receive the notice referred to in clause (ii) above and the date referred to in such notice. The provisions of Section 3(g) hereof shall
not be applicable during the period of any Allowable Grace Period. Upon expiration of each Grace Period, the Company shall again be bound
by the first sentence of Section 3(f) with respect to the information giving rise thereto unless such material, non-public information
is no longer applicable. Notwithstanding anything to the contrary contained in this Section 3(r), the Company shall cause its transfer
agent to deliver unlegended shares of Common Stock to a transferee of an Investor in accordance with the terms of the Securities Purchase
Agreement in connection with any sale of Registrable Securities with respect to which such Investor has entered into a contract for sale,
and delivered a copy of the prospectus included as part of the particular Registration Statement to the extent applicable, prior to such
Investor’s receipt of the notice of a Grace Period and for which the Investor has not yet settled.

 

    	12

     

    

 

(s)
The Company shall take all other reasonable actions necessary to expedite and facilitate disposition by each Investors of its Registrable
Securities pursuant to each Registration Statement.

 

(t)
Neither the Company nor any Subsidiary or affiliate thereof shall identify any Investor as an underwriter in any public disclosure or
filing with the SEC, the Principal Market or any Eligible Market and any Buyer being deemed an underwriter by the SEC shall not relieve
the Company of any obligations it has under this Agreement or any other Transaction Document (as defined in the Securities Purchase Agreement);
provided, however, that the foregoing shall not prohibit the Company from including the disclosure found in the “Plan of Distribution”
section attached hereto as Exhibit A in the Registration Statement.

 

(u)
Neither the Company nor any of its Subsidiaries has entered, as of the date hereof, nor shall the Company or any of its Subsidiaries,
on or after the date of this Agreement, enter into any agreement with respect to its securities, that would have the effect of impairing
the rights granted to the Buyers in this Agreement or otherwise conflicts with the provisions hereof.

 

4.
Obligations of the Investors.

 

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

 

    	13

     

    

 

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

 

(c)
Each Investor agrees that, upon receipt of any notice from the Company of the happening of any event of the kind described in Section
3(g) or the first sentence of 3(f), such Investor will immediately discontinue disposition of Registrable Securities pursuant to any
Registration Statement(s) covering such Registrable Securities until such Investor’s receipt of the copies of the supplemented
or amended prospectus contemplated by Section 3(g) or the first sentence of Section 3(f) or receipt of notice that no supplement or amendment
is required. Notwithstanding anything to the contrary in this Section 4(c), the Company shall cause its transfer agent to deliver unlegended
shares of Common Stock to a transferee of an Investor in accordance with the terms of the Securities Purchase Agreement in connection
with any sale of Registrable Securities with respect to which such Investor has entered into a contract for sale prior to the Investor’s
receipt of a notice from the Company of the happening of any event of the kind described in Section 3(g) or the first sentence of Section
3(f) and for which such Investor has not yet settled.

 

5.
Expenses of Registration.

 

All
reasonable expenses, other than underwriting discounts and commissions, incurred in connection with registrations, filings or qualifications
pursuant to Sections 2 and 3, including, without limitation, all registration, listing and qualifications fees, printers and accounting
fees, FINRA filing fees (if any) and fees and disbursements of counsel for the Company shall be paid by the Company. The Company shall
reimburse Legal Counsel for its fees and disbursements in connection with registration, filing or qualification pursuant to Sections
2 and 3 of this Agreement which amount shall be limited to $10,000 for each such registration, filing or qualification.

 

    	14

     

    

 

6.
Indemnification.

 

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

 

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

 

    	15

     

    

 

(c)
Promptly after receipt by an Indemnified Person or Indemnified Party (as the case may be) under this Section 6 of notice of the commencement
of any action or proceeding (including, without limitation, any governmental action or proceeding) involving a Claim, such Indemnified
Person or Indemnified Party (as the case may be) shall, if a Claim in respect thereof is to be made against any indemnifying party under
this Section 6, deliver to the indemnifying party a written notice of the commencement thereof, and the indemnifying party shall have
the right to participate in, and, to the extent the indemnifying party so desires, jointly with any other indemnifying party similarly
noticed, to assume control of the defense thereof with counsel mutually satisfactory to the indemnifying party and the Indemnified Person
or the Indemnified Party (as the case may be); provided, however, an Indemnified Person or Indemnified Party (as the case may be) shall
have the right to retain its own counsel with the fees and expenses of such counsel to be paid by the indemnifying party if: (i) the
indemnifying party has agreed in writing to pay such fees and expenses; (ii) the indemnifying party shall have failed promptly to assume
the defense of such Claim and to employ counsel reasonably satisfactory to such Indemnified Person or Indemnified Party (as the case
may be) in any such Claim; or (iii) the named parties to any such Claim (including, without limitation, any impleaded parties) include
both such Indemnified Person or Indemnified Party (as the case may be) and the indemnifying party, and such Indemnified Person or such
Indemnified Party (as the case may be) shall have been advised by counsel that a conflict of interest is likely to exist if the same
counsel were to represent such Indemnified Person or such Indemnified Party and the indemnifying party (in which case, if such Indemnified
Person or such Indemnified Party (as the case may be) notifies the indemnifying party in writing that it elects to employ separate counsel
at the expense of the indemnifying party, then the indemnifying party shall not have the right to assume the defense thereof and such
counsel shall be at the expense of the indemnifying party, provided further that in the case of clause (iii) above the indemnifying party
shall not be responsible for the reasonable fees and expenses of more than one (1) separate legal counsel for such Indemnified Person
or Indemnified Party (as the case may be). The Indemnified Party or Indemnified Person (as the case may be) shall reasonably cooperate
with the indemnifying party in connection with any negotiation or defense of any such action or Claim by the indemnifying party and shall
furnish to the indemnifying party all information reasonably available to the Indemnified Party or Indemnified Person (as the case may
be) which relates to such action or Claim. The indemnifying party shall keep the Indemnified Party or Indemnified Person (as the case
may be) reasonably apprised at all times as to the status of the defense or any settlement negotiations with respect thereto. No indemnifying
party shall be liable for any settlement of any action, claim or proceeding effected without its prior written consent; provided, however,
the indemnifying party shall not unreasonably withhold, delay or condition its consent. No indemnifying party shall, without the prior
written consent of the Indemnified Party or Indemnified Person (as the case may be), consent to entry of any judgment or enter into any
settlement or other compromise which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such
Indemnified Party or Indemnified Person (as the case may be) of a release from all liability in respect to such Claim or litigation,
and such settlement shall not include any admission as to fault on the part of the Indemnified Party. Following indemnification as provided
for hereunder, the indemnifying party shall be subrogated to all rights of the Indemnified Party or Indemnified Person (as the case may
be) with respect to all third parties, firms or corporations relating to the matter for which indemnification has been made. The failure
to deliver written notice to the indemnifying party within a reasonable time of the commencement of any such action shall not relieve
such indemnifying party of any liability to the Indemnified Person or Indemnified Party (as the case may be) under this Section 6, except
to the extent that the indemnifying party is materially and adversely prejudiced in its ability to defend such action.

 

    	16

     

    

 

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

 

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

 

7.
Contribution.

 

To
the extent any indemnification by an indemnifying party is prohibited or limited by law, the indemnifying party agrees to make the maximum
contribution with respect to any amounts for which it would otherwise be liable under Section 6 to the fullest extent permitted by law;
provided, however: (i) no contribution shall be made under circumstances where the maker would not have been liable for indemnification
under the fault standards set forth in Section 6 of this Agreement, (ii) no Person involved in the sale of Registrable Securities which
Person is guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the 1933 Act) in connection with such sale shall
be entitled to contribution from any Person involved in such sale of Registrable Securities who was not guilty of fraudulent misrepresentation;
and (iii) contribution by any seller of Registrable Securities shall be limited in amount to the amount of net proceeds received by such
seller from the applicable sale of such Registrable Securities pursuant to such Registration Statement. Notwithstanding the provisions
of this Section 7, no Investor shall be required to contribute, in the aggregate, any amount in excess of the amount by which the net
proceeds actually received by such Investor from the applicable sale of the Registrable Securities subject to the Claim exceeds the amount
of any damages that such Investor has otherwise been required to pay, or would otherwise be required to pay under Section 6(b), by reason
of such untrue or alleged untrue statement or omission or alleged omission.

 

    	17

     

    

 

8.
Reports Under the 1934 Act.

 

With
a view to making available to the Investors the benefits of Rule 144, the Company agrees to:

 

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

 

(b)
file with the SEC in a timely manner all reports and other documents required of the Company under the 1933 Act and the 1934 Act so long
as the Company remains subject to such requirements (it being understood and agreed that nothing herein shall limit any obligations of
the Company under the Securities Purchase Agreement) and the filing of such reports and other documents is required for the applicable
provisions of Rule 144; and

 

(c)
furnish electronically to each Investor so long as such Investor owns Registrable Securities, promptly upon request, (i) a written statement
by the Company, if true, that it has complied with the reporting, submission and posting requirements of Rule 144, the 1933 Act and the
1934 Act, (ii) a copy of the most recent annual or quarterly report of the Company and such other reports and documents so filed by the
Company with the SEC if such reports are not publicly available via EDGAR, and (iii) such other information as may be reasonably requested
to permit the Investors to sell such securities pursuant to Rule 144 without registration.

 

9.
Assignment of Registration Rights.

 

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

 

    	18

     

    

 

10.
Amendment of Registration Rights.

 

Provisions
of this Agreement may be amended and the observance thereof may be waived (either generally or in a particular instance and either retroactively
or prospectively), only with the written consent of the Company and the Required Holders; provided that any such amendment or waiver
that complies with the foregoing, but that disproportionately, materially and adversely affects the rights and obligations of any Investor
relative to the comparable rights and obligations of the other Investors shall require the prior written consent of such adversely affected
Investor. Any amendment or waiver effected in accordance with this Section 10 shall be binding upon each Investor and the Company, provided
that no such amendment shall be effective to the extent that it (1) applies to less than all of the holders of Registrable Securities
or (2) imposes any obligation or liability on any Investor without such Investor’s prior written consent (which may be granted
or withheld in such Investor’s sole discretion). No waiver shall be effective unless it is in writing and signed by an authorized
representative of the waiving party. No consideration shall be offered or paid to any Person to amend or consent to a waiver or modification
of any provision of this Agreement unless the same consideration (other than the reimbursement of legal fees) also is offered to all
of the parties to this Agreement.

 

11.
Miscellaneous.

 

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

 

(b)
Any notices, consents, waivers or other communications required or permitted to be given under the terms of this Agreement must be in
writing and will be deemed to have been delivered: (i) upon receipt, when delivered personally; (ii) upon receipt, when sent by electronic
mail (provided that such sent email is kept on file (whether electronically or otherwise) by the sending party and the sending party
does not receive an automatically generated message from the recipient’s email server that such e-mail could not be delivered to
such recipient); or (iii) one (1) Business Day after deposit with an overnight courier service with next day delivery specified, in each
case, properly addressed to the party to receive the same. The mailing addresses and e-mail addresses for such communications shall be:

 

If
to the Company:

 

Gaucho
Group Holdings, Inc.

112
NE 41st Street, Suite 106

Miami,
FL 33137

Telephone:
212-739-7700

Attention:
Scott L. Mathis, Chief Executive Officer

E-Mail:
smathis@gauchoholdings.com

 

    	19

     

    

 

With
a copy (for informational purposes only) to:

 

Burns
Figa & Will PC

6400
S. Fiddlers Green Circle, Suite 1000

Greenwood
Village, CO 80111

Telephone:
(303) 796-2626

Attention:
Victoria B. Bantz

E-Mail:
vbantz@bfwlaw.com

 

If
to the Transfer Agent:

 

Continental
Stock Transfer & Trust

1
State Street, 30th Floor

New
York, NY 10004-1561

Telephone:
(212) 509-4000

Attention:
Ian McKay

E-Mail:
imckay@continentalstock.com

 

If
to Legal Counsel:

 

Kelley
Drye & Warren LLP

3
World Trade Center

175
Greenwich Street

New
York, NY 10007

Telephone:
(212) 808-7540

Facsimile:
(212) 808-7897

Attention:
Michael A. Adelstein, Esq.

E-mail:
madelstein@kelleydrye.com

 

If
to a Buyer, to its mailing address and/or email address set forth on the Schedule of Buyers attached to the Securities Purchase Agreement,
with copies to such Buyer’s representatives as set forth on the Schedule of Buyers, or to such other mailing address and/or email
address and/or to the attention of such other Person as the recipient party has specified by written notice given to each other party
five (5) days prior to the effectiveness of such change, provided that Kelley Drye & Warren LLP shall only be provided notices sent
to the lead investor. Written confirmation of receipt (A) given by the recipient of such notice, consent, waiver or other communication,
(B) mechanically or electronically generated by the sender’s e-mail containing the time, date and recipient’s e-mail or (C)
provided by a courier or overnight courier service shall be rebuttable evidence of personal service, receipt by e-mail or receipt from
a nationally recognized overnight delivery service in accordance with clause (i), (ii) or (iii) above, respectively.

 

(c)
Failure of any party to exercise any right or remedy under this Agreement or otherwise, or delay by a party in exercising such right
or remedy, shall not operate as a waiver thereof. The Company and each Investor acknowledge and agree that irreparable damage would occur
in the event that any of the provisions of this Agreement were not performed in accordance with their specific terms or were otherwise
breached. It is accordingly agreed that each party hereto shall be entitled to an injunction or injunctions to prevent or cure breaches
of the provisions of this Agreement by any other party hereto and to enforce specifically the terms and provisions hereof (without the
necessity of showing economic loss and without any bond or other security being required), this being in addition to any other remedy
to which any party may be entitled by law or equity.

 

    	20

     

    

 

(d)
All questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be governed by the internal
laws of the State of New York, without giving effect to any choice of law or conflict of law provision or rule (whether of the State
of New York or any other jurisdictions) that would cause the application of the laws of any jurisdictions other than the State of New
York. Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in The City of New
York, Borough of Manhattan, for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated
hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that
it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is brought in an inconvenient
forum or that the venue of such suit, action or proceeding is improper. Each party hereby irrevocably waives personal service of process
and consents to process being served in any such suit, action or proceeding by mailing a copy thereof to such party at the address for
such notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process and notice
thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law. EACH
PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE TO, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE
HEREUNDER OR IN CONNECTION HEREWITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY.

 

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

 

    	21

     

    

 

(f)
This Agreement, the other Transaction Documents, the schedules and exhibits attached hereto and thereto and the instruments referenced
herein and therein constitute the entire agreement among the parties hereto and thereto solely with respect to the subject matter hereof
and thereof. There are no restrictions, promises, warranties or undertakings, other than those set forth or referred to herein and therein.
This Agreement, the other Transaction Documents, the schedules and exhibits attached hereto and thereto and the instruments referenced
herein and therein supersede all prior agreements and understandings among the parties hereto solely with respect to the subject matter
hereof and thereof; provided, however, nothing contained in this Agreement or any other Transaction Document shall (or shall be deemed
to) (i) have any effect on any agreements any Investor has entered into with the Company or any of its Subsidiaries prior to the date
hereof with respect to any prior investment made by such Investor in the Company, (ii) waive, alter, modify or amend in any respect any
obligations of the Company or any of its Subsidiaries or any rights of or benefits to any Investor or any other Person in any agreement
entered into prior to the date hereof between or among the Company and/or any of its Subsidiaries and any Investor and all such agreements
shall continue in full force and effect or (iii) limit any obligations of the Company under any of the other Transaction Documents.

 

(g)
Subject to compliance with Section 9 (if applicable), this Agreement shall inure to the benefit of and be binding upon the permitted
successors and assigns of each of the parties hereto. This Agreement is not for the benefit of, nor may any provision hereof be enforced
by, any Person, other than the parties hereto, their respective permitted successors and assigns and the Persons referred to in Sections
6 and 7 hereof.

 

(h)
The headings in this Agreement are for convenience of reference only and shall not limit or otherwise affect the meaning hereof. Unless
the context clearly indicates otherwise, each pronoun herein shall be deemed to include the masculine, feminine, neuter, singular and
plural forms thereof. The terms “including,” “includes,” “include” and words of like import shall
be construed broadly as if followed by the words “without limitation.” The terms “herein,” “hereunder,”
“hereof” and words of like import refer to this entire Agreement instead of just the provision in which they are found.

 

(i)
This Agreement may be executed in two or more identical counterparts, each of which shall be deemed an original, but all of which shall
be considered one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to
the other party. In the event that any signature is delivered by facsimile transmission or by an email which contains a portable document
format (.pdf) file of an executed signature page, such signature page 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 signature page were an original thereof.

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

 

(k)
The language used in this Agreement will be deemed to be the language chosen by the parties to express their mutual intent and no rules
of strict construction will be applied against any party. Notwithstanding anything to the contrary set forth in Section 10, terms used
in this Agreement but defined in the other Transaction Documents shall have the meanings ascribed to such terms on the Closing Date in
such other Transaction Documents unless otherwise consented to in writing by each Investor.

 

    	22

     

    

 

(l)
All consents and other determinations required to be made by the Investors pursuant to this Agreement shall be made, unless otherwise
specified in this Agreement, by the Required Holders, determined as if all of the outstanding Notes then held by the Investors have been
converted for Registrable Securities without regard to any limitations on redemption, amortization and/or conversion of the Notes then
held by Investors.

 

(m)
This Agreement is intended for the benefit of the parties hereto and their respective permitted successors and assigns, and is not for
the benefit of, nor may any provision hereof be enforced by, any other Person.

 

(n)
The obligations of each Investor under this Agreement and the other Transaction Documents are several and not joint with the obligations
of any other Investor, and no Investor shall be responsible in any way for the performance of the obligations of any other Investor under
this Agreement or any other Transaction Document. Nothing contained herein or in any other Transaction Document, and no action taken
by any Investor pursuant hereto or thereto, shall be deemed to constitute the Investors as, and the Company acknowledges that the Investors
do not so constitute, a partnership, an association, a joint venture or any other kind of group or entity, or create a presumption that
the Investors are in any way acting in concert or as a group or entity with respect to such obligations or the transactions contemplated
by the Transaction Documents or any matters, and the Company acknowledges that the Investors are not acting in concert or as a group,
and the Company shall not assert any such claim, with respect to such obligations or the transactions contemplated by this Agreement
or any of the other the Transaction Documents. Each Investor shall be entitled to independently protect and enforce its rights, including,
without limitation, the rights arising out of this Agreement or out of any other Transaction Documents, and it shall not be necessary
for any other Investor to be joined as an additional party in any proceeding for such purpose. The use of a single agreement with respect
to the obligations of the Company contained herein was solely in the control of the Company, not the action or decision of any Investor,
and was done solely for the convenience of the Company and not because it was required or requested to do so by any Investor. It is expressly
understood and agreed that each provision contained in this Agreement and in each other Transaction Document is between the Company and
an Investor, solely, and not between the Company and the Investors collectively and not between and among Investors.

 

[signature
page follows]

 

    	23

     

    

 

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

 

	 	COMPANY:
	 	GAUCHO
    GROUP HOLDINGS INC.
	 	 	 
	 	By:	
	 	Name:	Scott
    L. Mathis
	 	Title:	President
    & CEO

 

    	 

    	 

    

 

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

 

	 	BUYERS:
	 	3i,
    LP
	 	 	          
	 	By:	 
	 	Name:	 
	 	Title:	 

 

    	 

    	 

    

 

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

 

	 	[OTHER BUYERS]
	 	 	              
	 	By:	 
	 	Name:	 
	 	Title:	 

 

    	 

    	 

    

 

EXHIBIT
A

SELLING
STOCKHOLDERS

 

The
shares of common stock being offered by the selling stockholders are those issuable to the selling stockholders upon conversion of the
notes. For additional information regarding the issuance of the notes, see “Private Placement of Notes” above. We are registering
the shares of common stock in order to permit the selling stockholders to offer the shares for resale from time to time. Except for the
ownership of the notes issued pursuant to the Securities Purchase Agreement, the selling stockholders have not had any material relationship
with us within the past three years.

 

The
table below lists the selling stockholders and other information regarding the beneficial ownership (as determined under Section 13(d)
of the Securities Exchange Act of 1934, as amended, and the rules and regulations thereunder) of the shares of common stock held by each
of the selling stockholders. The second column lists the number of shares of common stock beneficially owned by the selling stockholders,
based on their respective ownership of shares of common stock and notes, as of ________, 202_, assuming conversion of the notes held
by each such selling stockholder on that date but taking account of any limitations on conversion set forth therein.

 

The
third column lists the shares of common stock being offered by this prospectus by the selling stockholders and does not take in account
any limitations on conversion of the notes set forth therein.

 

In
accordance with the terms of a registration rights agreement with the holders of the notes, this prospectus generally covers the resale
of 100% of the maximum number of shares of common stock issued or issuable pursuant to the Notes, including payment of interest on the
notes through [DATE], determined as if the outstanding notes (including interest on the notes through [DATE]) were converted in full
(without regard to any limitations on conversion contained therein solely for the purpose of such calculation) at the floor price of
$[ ]. Because the conversion price of the notes may be adjusted, the number of shares that will actually be issued may be more or less
than the number of shares being offered by this prospectus. The fourth column assumes the sale of all of the shares offered by the selling
stockholders pursuant to this prospectus.

 

Under
the terms of the notes, a selling stockholder may not convert the notes to the extent (but only to the extent) such selling stockholder
or any of its affiliates would beneficially own a number of shares of our common stock which would exceed 4.99% of the outstanding shares
of the Company. The number of shares in the second column reflects these limitations. The selling stockholders may sell all, some or
none of their shares in this offering. See “Plan of Distribution.”

 

	Name
                                            of Selling Stockholder
	 	Number
    of Shares of Common Stock Owned Prior to Offering	 	Maximum
    Number of Shares of Common Stock to be Sold Pursuant to this Prospectus	 	Number
    of Shares of Common Stock of Owned After Offering
	

    3i, LP (1)	 	 	 	 	 	 
	[OTHER BUYERS]	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

 

	(1)	[           ]

 

    	 

    	 

    

 

PLAN
OF DISTRIBUTION

 

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

 

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

 

	 	●	on any national securities
    exchange or quotation service on which the securities may be listed or quoted at the time of sale;
	 	●	in the over-the-counter
    market;
	 	●	in transactions otherwise
    than on these exchanges or systems or in the over-the-counter market;
	 	●	through the writing or
    settlement of options, whether such options are listed on an options exchange or otherwise;
	 	●	ordinary brokerage transactions
    and transactions in which the broker-dealer solicits purchasers;
	 	●	block trades in which the
    broker-dealer will attempt to sell the shares as agent but may position and resell a portion of the block as principal to facilitate
    the transaction;
	 	●	purchases by a broker-dealer
    as principal and resale by the broker-dealer for its account;
	 	●	an exchange distribution
    in accordance with the rules of the applicable exchange;
	 	●	privately negotiated transactions;
	 	●	short sales made after
    the date the Registration Statement is declared effective by the SEC;
	 	●	broker-dealers may agree
    with a selling security holder to sell a specified number of such shares at a stipulated price per share;
	 	●	a combination of any such
    methods of sale; and
	 	●	any other method permitted
    pursuant to applicable law.

 

    	 

    	 

    

 

The
selling stockholders may also sell shares of common stock under Rule 144 promulgated under the Securities Act of 1933, as amended, if
available, rather than under this prospectus. In addition, the selling stockholders may transfer the shares of common stock by other
means not described in this prospectus. If the selling stockholders effect such transactions by selling shares of common stock to or
through underwriters, broker-dealers or agents, such underwriters, broker-dealers or agents may receive commissions in the form of discounts,
concessions or commissions from the selling stockholders or commissions from purchasers of the shares of common stock for whom they may
act as agent or to whom they may sell as principal (which discounts, concessions or commissions as to particular underwriters, broker-dealers
or agents may be in excess of those customary in the types of transactions involved). In connection with sales of the shares of common
stock or otherwise, the selling stockholders may enter into hedging transactions with broker-dealers, which may in turn engage in short
sales of the shares of common stock in the course of hedging in positions they assume. The selling stockholders may also sell shares
of common stock short and deliver shares of common stock covered by this prospectus to close out short positions and to return borrowed
shares in connection with such short sales. The selling stockholders may also loan or pledge shares of common stock to broker-dealers
that in turn may sell such shares.

 

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

 

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

 

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

 

    	 

    	 

    

 

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

 

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

 

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

 

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

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