Document:

Exhibit 4.2

 

THIS WARRANT
AND THE UNDERLYING SHARES OF COMMON STOCK HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 (THE “SECURITIES ACT”),
OR ANY OTHER SECURITIES LAWS, HAVE BEEN TAKEN FOR INVESTMENT, AND MAY NOT BE SOLD OR TRANSFERRED OR OFFERED FOR SALE OR TRANSFER
UNLESS A REGISTRATION STATEMENT UNDER THE SECURITIES ACT AND OTHER APPLICABLE SECURITIES LAWS WITH RESPECT TO SUCH SECURITIES IS
THEN IN EFFECT, OR IN THE OPINION OF COUNSEL TO THE ISSUER OF THESE SECURITIES, SUCH REGISTRATION UNDER THE SECURITIES ACT AND
OTHER APPLICABLE SECURITIES LAWS IS NOT REQUIRED.

 

 

Date: February
__, 2020

 

 

WARRANT FOR
THE PURCHASE OF SHARES OF COMMON STOCK OF VERIFYME, INC.

 

THIS
IS TO CERTIFY that, for value received, _________________, its successors and assigns (the “Holder”), is entitled
to purchase, subject to the terms and conditions hereinafter set forth, _______ shares of VerifyMe, Inc., a Nevada corporation
(the “Company”) common stock, $0.001 par value per share (“Common Stock”), and to receive 
certificates for the Common Stock so purchased.  The exercise price of this Warrant is $0.15 per share, subject
to adjustment as provided below (the “Exercise Price”).

 

1.          Exercise
Period and Vesting.  This Warrant is vested and shall be exercisable at any time by the Holder beginning on the date listed
above (the “Issuance Date”), and ending at 5:00 p.m., New York, New York time, on the date that is the third
(3rd) anniversary of the date of this Warrant (the “Exercise Period”).  This Warrant will terminate
automatically and immediately upon the expiration of the Exercise Period.

 

2.          Exercise
of Warrant; Cashless Exercise.

 

(a)  Exercise. 
This Warrant may be exercised, in whole or in part, at any time and from time to time during the Exercise Period.  Such exercise
shall be accomplished by tender to the Company of an amount equal to the Exercise Price multiplied by the number of underlying
shares being purchased (the “Purchase Price”), by wire transfer or by certified check or bank cashier’s
check, payable to the order of the Company, or by a cashless exercise to the extent allowed by Section 2(b).  As a condition
of exercise, the Holder shall where applicable execute a customary investment letter and accredited investor questionnaire. 
The Holder’s right to exercise this Warrant is subject to compliance with any applicable laws and rules including Section
5 of the Securities Act of 1933, as amended (the “Securities Act”).

 

(b)  Cashless
Exercise.  If at any time beginning on the date that is six (6) months after the Issuance Date and continuing thereafter
throughout the Exercise Period the Company shall fail to maintain an effective registration statement with the Securities and Exchange
Commission under the Securities Act covering the resale of the shares of Common Stock issuable hereunder, then the Holder may exercise
this Warrant by surrendering such number of shares of Common Stock received upon exercise of this Warrant with an aggregate Fair
Market Value (as defined below) equal to the Purchase Price, as described in the following paragraph (a “Cashless Exercise”).

 

If
the Holder elects to conduct a Cashless Exercise, the Company shall cause to be delivered to the Holder a certificate or certificates
representing the number of shares of Common Stock computed using the following formula:

  

X
= Y (A-B)

A

 

Where:

 

X = the number of shares of Common Stock to be issued to the Holder;

 

    	 	1	 

    	 

    

  

Y
= the portion of the Warrant (in number of shares of Common Stock) being exercised by the Holder (at the date of such calculation);

 

A
= the Fair Market Value (as defined below) of one share of Common Stock; and

 

B
= Exercise Price (as adjusted to the date of such calculation).

 

For
purposes of this Warrant, “Fair Market Value” shall mean: (i) if the principal trading market for such securities
is a national securities exchange, or the OTCQB (or a similar system then in use), the average of the last five reported sales
prices on the principal market the last five trading days immediately prior to such Exercise Date (as defined in Section 2(c) below);
or (ii) if (i) is not applicable, and if bid and ask prices for shares of Common Stock are reported by the principal trading market,
the average of the high bid and low asked prices so reported for the trading day immediately prior to such Exercise Date.  Notwithstanding
the foregoing, if there is no last reported sales price or bid and ask prices, as the case may be, for the day in question, then
Fair Market Value shall be determined as of the latest day prior to such day for which such last reported sales price or bid and
asked prices, as the case may be, are available, unless such securities have not been traded on an exchange or in the over-the-counter
market for 30 or more days immediately prior to the day in question, in which case the Fair Market Value shall be determined in
good faith by and reflected in a formal resolution of the board of directors of the Company.

 

(c)  Upon
receipt of the Purchase Price in Section 2(a) or the shares of Common Stock in Section 2(b), together with presentation and surrender
to the Company of this Warrant with an executed subscription form in substantially the form attached hereto as Exhibit
A (the “Subscription”), the Company will deliver shares of Common Stock to be issued hereunder to the
Holder within two (2) business days from the date of receipt of the Purchase Price and delivery of the Subscription as set forth
above for shares to be delivered by DWAC and five (5) business days for certificated shares.  Shares shall be delivered by
DWAC so long as the Company is then DWAC Operational (as such terms are defined in that certain Securities Purchase Agreement of
the Company dated February __, 2020)), unless the Holder expressly requests delivery in certificated form or the issued shares
are not freely trading shares when issued and are required to bear a restrictive legend. Shares shall be deemed delivered (i) if
delivered by DWAC, upon deposit into the Holder’s brokerage account, or (ii) if delivered in certificated form, upon the
Holder’s actual receipt of the issued shares in certificated form at the address specified in the Ledger of the Company (as
defined below), as confirmed by written receipt. With respect to any exercise of this Warrant, the Holder will for all purposes
be deemed to have become the holder of record of the number of shares of Common Stock purchased hereunder on the date a properly
executed Subscription and payment of the Purchase Price is received by the Company (the “Exercise Date”), irrespective
of the date of delivery of the certificate evidencing such shares, except that, if the date of such receipt is a date on which
the stock transfer books of the Company are closed, such person will be deemed to have become the holder of such shares at the
close of business on the next succeeding date on which the stock transfer books are open.  Fractional shares of Common Stock
will not be issued upon the exercise of this Warrant and in lieu of any fractional shares, the number of shares issuable shall
be rounded to the nearest whole share.  In the event this Warrant is exercised in part, the Company shall issue a New Warrant
(defined below) to the Holder covering the aggregate number of shares of Common Stock as to which this Warrant remains exercisable
for.  The Company acknowledges and agrees that this Warrant was issued on the Issuance Date.

  

3.          Transferability
and Exchange.

 

(a)  This
Warrant, and the Common Stock issuable upon the exercise hereof, may not be sold, transferred, pledged or hypothecated unless the
Company shall have been provided with an opinion of counsel reasonably satisfactory to the Company that such transfer is not in
violation of the Securities Act and any applicable state securities laws.  Subject to the satisfaction of this condition,
this Warrant and the underlying shares of Common Stock if not eligible to be sold under Rule 144 of the Securities Act shall be
transferable from time to time by the Holders upon written notice to the Company.  If this Warrant is transferred, in whole
or in part, the Company may request the transferee to sign an investment letter and shall, upon surrender of this Warrant to the
Company, deliver to each transferee a Warrant evidencing the rights of such transferee to purchase the number of shares of Common
Stock that such transferee is entitled to purchase pursuant to such transfer.  The Company may place a legend similar to the
legend at the top of this Warrant on any replacement Warrant and on each certificate representing shares issuable upon exercise
of this Warrant or any replacement Warrants. Only the registered Holder may enforce the provisions of this Warrant against the
Company.  A transferee of the original registered Holder becomes a registered Holder only upon delivery to the Company of
the original Warrant and an original Assignment, substantially in the form set forth in Exhibit B attached hereto.

 

    	 	2	 

    	 

    

  

(b)  This
Warrant is exchangeable upon its surrender by the Holder to the Company for new Warrants of like tenor and date representing in
the aggregate the right to purchase the number of shares purchasable hereunder, each of such new Warrants to represent the right
to purchase such number of shares as may be designated by the Holder at the time of such surrender (not to exceed the aggregate
number of shares underlying this Warrant).

 

4.          Adjustments
to Exercise Price and Number of Shares Subject to Warrant.  The Exercise Price and the number of shares of Common Stock
purchasable upon the exercise of this Warrant are subject to adjustment from time to time upon the occurrence of any of the events
specified in this Section 4.  For the purpose of this Section 4, “Common Stock” means shares now or hereafter
authorized of any class of common stock of the Company, however designated, that has the right to participate in any distribution
of the assets or earnings of the Company without limit as to per share amount (excluding, and subject to any prior rights of, any
class or series of preferred stock).

 

(a)  In
case the Company shall (i) pay a dividend or make a distribution in shares of Common Stock to holders of shares of Common Stock,
(ii) subdivide its outstanding shares of Common Stock into a greater number of shares, (iii) combine its outstanding shares of
Common Stock into a smaller number of shares, or (iv) issue by reclassification of its shares of Common Stock other securities
of the Company, then the Exercise Price in effect at the time of the record date for such dividend or on the effective date of
such subdivision, combination or reclassification, and/or the number and kind of securities issuable on such date, shall be proportionately
adjusted so that the Holder of the Warrant thereafter exercised shall be entitled to receive the aggregate number and kind of shares
of Common Stock (or such other securities other than Common Stock) of the Company, at the same aggregate Exercise Price, that,
if such Warrant had been exercised immediately prior to such date, the Holder would have owned upon such exercise and been entitled
to receive by virtue of such dividend, distribution, subdivision, combination or reclassification.  Such adjustment shall
be made successively whenever any event listed above shall occur.

 

(b)  In
case the Company shall fix a record date for the making of a distribution to all holders of Common Stock (including any such distribution
made in connection with a consolidation or merger in which the Company is the surviving corporation) of cash, evidences of indebtedness
or assets, or subscription rights or warrants, the Exercise Price to be in effect after such record date shall be determined by
multiplying the Exercise Price in effect immediately prior to such record date by a fraction, the numerator of which shall be the
Fair Market Value per share of Common Stock on such record date, less the amount of cash so to be distributed or the Fair Market
Value (as determined in good faith by, and reflected in a formal resolution of, the board of directors of the Company) of the portion
of the assets or evidences of indebtedness so to be distributed, or of such subscription rights or warrants, applicable to one
share of Common Stock, and the denominator of which shall be the Fair Market Value per share of Common Stock.  Such adjustment
shall be made successively whenever such a record date is fixed; and in the event that such distribution is not so made, the Exercise
Price shall again be adjusted to be the Exercise Price which would then be in effect if such record date had not been fixed. 
When determining Fair Market Value of the Company’s Common Stock, Fair Market Value shall mean: (i) if the principal trading
market for such securities is a national securities exchange including The Nasdaq Stock Market, or the OTCQB (or a similar system
then in use), the last reported sales price on the principal market the trading day immediately prior to such record date; or (ii)
if subsection (i) is not applicable, and if bid and ask prices for shares of Common Stock are reported by the principal trading
market or the OTC Markets, the average of the high bid and low ask prices so reported for the trading day immediately prior to
such record date.  Notwithstanding the foregoing, if there is no last reported sales price or bid and ask prices, as the case
may be, for the day in question, then Fair Market Value shall be determined as of the latest day prior to such day for which such
last reported sales price or bid and ask prices, as the case may be, are available, unless such securities have not been traded
on an exchange or in the over-the-counter market for 30 or more days immediately prior to the day in question, in which case the
Fair Market Price shall be determined in good faith by, and reflected in a formal resolution of, the board of directors of the
Company.

 

    	 	3	 

    	 

    

 

(c)  Notwithstanding
any provision herein to the contrary, no adjustment in the Exercise Price shall be required unless such adjustment would require
an increase or decrease of at least 1% in the Exercise Price; provided, however, that any adjustments which
by reason of this Section 4(c) are not required to be made shall be carried forward and taken into account in any subsequent adjustment. 
All calculations under this Section 4 shall be made to the nearest cent or the nearest one-hundredth of a share, as the case may
be.

 

(d)  In
the event that at any time, as a result of an adjustment made pursuant to Section 4(a) above, the Holder of any Warrant thereafter
exercised shall become entitled to receive any shares of capital stock of the Company other than shares of Common Stock, thereafter
the number of such other shares so receivable upon exercise of any Warrant shall be subject to adjustment from time to time in
a manner and on terms as nearly equivalent as practicable to the provisions with respect to the shares of Common Stock contained
in this Section 4, and the other provisions of this Warrant shall apply on like terms to any such other shares.

 

(e)  If
the Company merges or consolidates into or with another corporation or entity, or if another corporation or entity merges into
or with the Company (excluding such a merger in which the Company is the surviving or continuing corporation and which does not
result in any reclassification, conversion, exchange, or cancellation of the outstanding shares of Common Stock), or if all or
substantially all of the assets or business of the Company are sold or transferred to another corporation, entity, or person, then,
as a condition to such consolidation, merger, or sale (any a “Transaction”), lawful and adequate provision shall
be made whereby the Holder shall have the right from and after the Transaction to receive, upon exercise of this Warrant and upon
the terms and conditions specified herein and in lieu of the shares of the Common Stock that would have been issuable if this Warrant
had been exercised immediately before the Transaction, such shares of stock, securities, or assets as the Holder would have owned
immediately after the Transaction if the Holder had exercised this Warrant immediately before the effective date of the Transaction.

 

(f)  [Reserved] 

 

(g) If the Company,
at any time while this Warrant is outstanding, issues, sells or grants any option to purchase, or sells or grants any right to
reprice, or otherwise disposes of, or issues (or announces any sale, grant or any option to purchase or other disposition), any
Common Stock or other securities convertible into, exercisable for, or otherwise entitle any person or entity the right to acquire,
shares of Common Stock (including, without limitation, upon conversion of any convertible securities outstanding following the
Issuance Date) (excluding Exempt Issuances, as defined below, all Senior Secured Convertible Debentures (the “Debentures”)
and any other securities issuable pursuant to that certain Securities Purchase Agreement of the Company dated February __, 2020),
in each or any case at an effective price per share that is lower than the then Exercise Price (such lower price, the “Base
Exercise Price” and such issuances, collectively, a “Dilutive Issuance”) (it being agreed that if
the holder of the Common Stock or other securities so issued shall at any time, whether by operation of purchase price adjustments,
reset provisions, floating conversion, exercise or exchange prices or otherwise, or due to warrants, options or rights per share
which are issued in connection with such issuance, be entitled to receive shares of Common Stock at an effective price per share
that is lower than the Exercise Price, such issuance shall be deemed to have occurred for less than the Exercise Price on such
date of the Dilutive Issuance), then, at the option of the Holder, the Exercise Price shall be reduced to a price equal to the
Base Exercise Price and the number of shares of Common Stock issuable upon the exercise of this Warrant shall be increased such
that the aggregate exercise price payable under the Warrant for the adjusted number of shares shall be the same as the aggregate
exercise price in effect immediately prior to such adjustment (without regard to any limitations on exercise contained in the Warrant.
If the Company enters into a Variable Rate Transaction (as defined in the Debentures), despite the prohibition set forth in the
Debentures, the Company shall be deemed to have issued Common Stock at the lowest possible price per share at which such securities
could be issued in connection with such Variable Rate Transaction. Such adjustment shall be made at the option of the Holder whenever
such Common Stock or other securities are issued. For purposes of this Section, “Exempt Issuance” means the
issuance of (i) shares of Common Stock, options or other equity awards to officers, consultants, employees or directors of the
Company pursuant to any stock or option plan duly adopted by a majority of the non-employee members of the Board of Directors of
the Company or a majority of the members of a committee of non-employee directors established for such purpose, (ii) securities
issuable upon the exercise or exchange of or conversion of securities exercisable or exchangeable for or convertible into shares
of Common Stock issued and outstanding on the Issuance Date; provided that such securities have not been amended
since the Issuance Date to increase the number of such securities or to decrease the exercise price, exchange price or Exercise
Price of such securities (other than in connection with stock splits or combinations) or to extend the term of such securities,
(iii) securities issued pursuant to acquisitions approved by a majority of the disinterested directors of the Company, and (iv)
shares of Common Stock issued pursuant to any real property leasing arrangement or financing from a national bank approved by the
Board of Directors of the Company.

 

    	 	4	 

    	 

    

 

5.          Registration.
Issuance of the shares underlying this Warrant has not been registered under the Securities Act.  If not registered under
the Securities Act, when exercised, the stock certificates shall bear the following legend unless one year has elapsed since the
date of issuance of this Warrant.

 

“The
securities represented by this certificate have not been registered under the Securities Act and may not be offered for sale or
sold except pursuant to (i) an effective registration statement under the Securities Act, or (ii) an opinion of counsel to the
issuer of these securities that an exemption from registration under the Securities Act is available.”

 

6.          Reservation
of Shares.  The Company agrees at all times to reserve and hold available out of its authorized but unissued shares of
Common Stock two times the number of shares of Common Stock issuable upon the full exercise of this Warrant.  The Company
further covenants and agrees that all shares of Common Stock that may be delivered upon the exercise of this Warrant will, upon
delivery, be fully paid and nonassessable and free from all taxes, liens and charges with respect to the purchase thereof hereunder.

  

7.          Notices
to Holder.  Upon any adjustment of the Exercise Price (or number of shares of Common Stock issuable upon the exercise
of this Warrant) pursuant to Section 4, the Company shall promptly thereafter cause to be given to the Holder written notice of
such adjustment.  Such notice shall include the Exercise Price (and/or the number of shares of Common Stock issuable upon
the exercise of this Warrant) after such adjustment, and shall set forth in reasonable detail the Company’s method of calculation
and the facts upon which such calculations were based.  Where appropriate, such notice shall be given in advance and included
as a part of any notice required to be given under the other provisions of this Section 7.

 

In
the event of (a) any fixing by the Company of a record date with respect to the holders of any class of securities of the Company
for the purpose of determining which of such holders are entitled to dividends or other distributions, or any rights to subscribe
for, purchase or otherwise acquire any shares of capital stock of any class or any other securities or property, or to receive
any other right, (b) any capital reorganization of the Company, or reclassification or recapitalization of the capital stock of
the Company or any transfer of all or substantially all of the assets or business of the Company to, or consolidation or merger
of the Company with or into, any other entity or person, or (c) any voluntary or involuntary dissolution or winding up of the Company,
then and in each such event the Company will give the Holder a written notice specifying, as the case may be (i) the record date
for the purpose of such dividend, distribution, or right, and stating the amount and character of such dividend, distribution,
or right; or (ii) the date on which any such reorganization, reclassification, recapitalization, transfer, consolidation, merger,
conveyance, dissolution, liquidation, or winding up is to take place and the time, if any is to be fixed, as of which the holders
of record of Common Stock (or such capital stock or securities receivable upon the exercise of this Warrant) shall be entitled
to exchange their shares of Common Stock (or such other securities) for securities or other property deliverable upon such event. 
Any such notice shall be given at least 10 days prior to the earliest date therein specified.

 

8.          No
Rights as a Shareholder.  This Warrant does not entitle the Holder to any voting rights or other rights as a shareholder
of the Company, nor to any other rights whatsoever except the rights herein set forth; provided, however, the
Company shall not enter into any merger agreement in which it is not the surviving entity, or sell all or substantially all of
its assets unless the Company shall have first provided the Holder with 20 days’ prior written notice.

  

9.          Additional
Covenants of the Company.  For so long as the Common Stock is listed for trading or trades on any national securities
exchange or is quoted on any over the counter market, the Company shall, upon issuance of any shares of Common Stock for which
this Warrant is exercisable, at its expense, promptly obtain and maintain the listing or qualifications for trading or quotation
of such shares to the extent required.

  

    	 	5	 

    	 

    

 

The
Company shall comply with the reporting requirements of Sections 13 and 15(d) of the Securities Exchange Act of 1934, as amended,
for so long as and to the extent that such requirements apply to the Company.

 

The
Company shall not, by amendment of its articles of incorporation or through any reorganization, transfer of assets, consolidation,
merger, dissolution, issuance or sale of securities, or any other voluntary action, avoid or seek to avoid the observance or performance
of any of the terms of this Warrant.  Without limiting the generality of the foregoing, the Company (a) shall comply with
Section 6 of this Agreement and have available sufficient shares of Common Stock to be issued from time to time upon exercise of
this Warrant except as provided in Section 6, (b) will not increase the par value of any shares of Common Stock issuable upon exercise
of this Warrant above the amount payable therefor upon such exercise, and (c) will take all such actions as may be necessary or
appropriate in order that the Company may validly and legally issue fully paid and nonassessable stock.

 

10.          Successors
and Assigns.  This Agreement shall be binding upon and inure to the benefit of the Company, the Holder and their respective
successors and permitted assigns.

 

11.          Notices. 
The Company agrees to maintain a ledger of the ownership of this Warrant (the “Ledger”).  Any notice hereunder
shall be given by Federal Express or other overnight delivery service for delivery on the next business day if to the Company,
at its principal executive office and, if to the Holder, to his address shown in the Ledger of the Company; provided, however,
that either the Company or the Holder may at any time on three days’ written notice to the other designate or substitute
another address where notice is to be given.  Notice shall be deemed given and received after a Federal Express or other overnight
delivery service is delivered to the carrier.

  

12.          Severability. 
Every provision of this Warrant is intended to be severable.  If any term or provision hereof is illegal or invalid for any
reason whatsoever, such illegality or invalidity shall not affect the remainder of this Warrant.

  

13.          Governing Law;
Venue.  This Warrant shall be governed by and construed in accordance with the laws of the State of New York, without
giving effect to the principles of choice of laws thereof EACH OF Holder and THE COMPANY
CONSENTS TO THE EXCLUSIVE JURISDICTION AND VENUE OF THE FEDERAL COURTS LOCATED IN MONROE COUNTY, NEW YORK IN CONNECTION WITH ANY
DISPUTE ARISING UNDER THIS AGREEMENT, AND EACH WAIVES ANY OBJECTION BASED ON FORUM NON CONVENIENS. THIS PROVISION IS INTENDED TO
BE A “MANDATORY” FORUM SELECTION CLAUSE AND GOVERNED BY AND INTERPRETED CONSISTENT WITH NEW YORK LAW. EACH OF THE PARTIES
HEREBY CONSENTS TO THE EXCLUSIVE JURISDICTION AND VENUE OF ANY FEDERAL COURT HAVING ITS SITUS IN MONROE COUNTY, NEW YORK, AND EACH
WAIVES ANY OBJECTION BASED ON FORUM NON CONVENIENS.

 

14.          Entire Agreement. 
This Warrant (including the Exhibits attached hereto) constitutes the entire understanding between the Company and the Holder with
respect to the subject matter hereof, and supersedes all prior negotiations, discussions, agreements and understandings relating
to such subject matter.

  

 

(Signature Page
Follows)

 

    	 	6	 

    	 

    

  

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

 

  

 

	VERIFYME, INC.	 
	 	 
	 	 
	By:   	 	 
	
        Name:
	Patrick White

        
	 
	Title: 	Chief Executive Officer	 

 

    	 		 

    	 

    

 

Exhibit A

SUBSCRIPTION FORM

 

 

(To be Executed
by the Holder to Exercise the Rights To Purchase Common Stock Evidenced by the Within Warrant)

 

The undersigned,
pursuant to the provisions set forth in the attached Warrant, hereby notifies the Company that it is exercising this warrant pursuant
to:  [please check one]

 

________ Section
1 - Cash Exercise

________ Section
2 - Cashless Exercise

 

 

Section
1 - Cash Exercise. If Section 1 is selected above, please complete the following:

 

I am exercising
my right to purchase all of the shares of Common Stock which I am entitled to purchase under this warrant. The number of shares
of Common Stock is __________.

 

I am exercising
my right to purchase ________ shares of Common Stock, and request that the Company deliver to me or as I shall designate below
a new Warrant representing the right to purchase _______ shares of Common Stock.

 

I am making payment
of the full exercise price for such shares at an Exercise Price per share of $_______ as provided for in such Warrant. The total
exercise price payable is $___________. Such payment takes the form of (check applicable box or boxes):

 

___ $__________
in certified or official bank check payable to the order of the Company; or

___ $__________
by wire transfer of immediately available funds  

 

   

Section
2 - Cashless Exercise. If Section 2 is permitted under the Warrant and selected above, please complete the following:

 

The current Fair
Market Value of the shares of Common Stock, as defined in this Warrant, is $___________.

 

I am exercising
my right to purchase ___________ shares of Common Stock, being the maximum number of shares of Common Stock covered by such Warrant
pursuant to the cashless exercise procedure set forth in Section 2.

 

I am exercising
my right to purchase _________ shares of Common Stock, and requesting that the Company deliver to me or as I shall request a new
Warrant representing the right to purchase _______ shares of Common Stock.

 

  Note
- if a Holder choosing to use the Cashless Exercise option provided for in Section 2 of this Warrant is using a combination of
cash and cashless means to make payment of the Warrant Exercise Price payable by such Holder, such Holder shall attach a separate
schedule which provides such Holder’s calculation of the amount of cash being paid, and the number of shares of Common Stock
being delivered as payment.  Any such cash component takes form of (check applicable box or boxes):    

   

___ $__________
in certified or official bank check payable to the order of the Company; or

___ $__________
by wire transfer of immediately available funds

 

    	 		 

    	 

    

 

DWAC Delivery

I request that the shares of Common Stock
be issued in the name of the undersigned, be delivered DWAC to the following DWAC Account Number:

	 	 
	 	 
	 	 
	 	 
	 	 

If the Common
Stock is not all of the shares purchasable pursuant to the Warrant, I request that a new Warrant of like tenor for the balance
of the remaining shares purchasable thereunder be delivered to me at the address stated below.

 

Certificated
Share Deliver

I request that
a certificate for the Common Stock be issued in the name of the undersigned and be delivered to the undersigned at the address
stated below.  If the Common Stock is not all of the shares purchasable pursuant to the Warrant, I request that a new Warrant
of like tenor for the balance of the remaining shares purchasable thereunder be delivered to me at the address stated below.

 

In connection
with the issuance of the Common Stock, if the Common Stock may not be immediately publicly sold, I hereby represent to the Company
that I am acquiring the Common Stock for my own account for investment and not with a view to, or for resale in connection with,
a distribution of the shares within the meaning of the Securities Act of 1933, as amended (the “Securities Act”).

 

I am______ am
not ______ [please initial one] an accredited investor for at least one of the reasons on Exhibit A-1 to the Warrant.
 If the SEC has amended the rule defining the definition of accredited investor, I acknowledge that as a condition to exercise
the Warrant, the Company may request updated information regarding the Holder’s status as an accredited investor.  My
exercise of the Warrant shall be in compliance with the applicable exemptions under the Securities Act and applicable state law

  

I understand that
if at this time the Common Stock has not been registered under the Securities Act, I must hold such Common Stock indefinitely unless
the Common Stock is subsequently registered and qualified under the Securities Act or is exempt from such registration and qualification.
 I shall make no transfer or disposition of the Common Stock unless (a) such transfer or disposition can be made without registration
under the Securities Act by reason of a specific exemption from such registration and such qualification, or (b) a registration
statement has been filed pursuant to the Securities Act and has been declared effective with respect to such disposition.  I
agree that each certificate representing the Common Stock delivered to me shall bear substantially the same as set forth on the
front page of the Warrant.

 

I further agree
that the Company may place stop transfer orders with its transfer agent same effect as the above legend.  The legend and stop
transfer notice referred to above shall be removed only upon my furnishing to the Company of an opinion of counsel to the Company
to the effect that such legend may be removed.

 

Date:_________________________

Signed:_______________________

Name:________________________

Address:______________________

_____________________________

_____________________________

 

    	 		 

    	 

    

 

Exhibit A-1

 

  For Individual Investors
Only:

 

1.          A
person who has an individual net worth, or combined net worth (with his or her spouse) who has, in excess of $1,000,000. 
For purposes of this question, “net worth” means the excess of total assets at fair market value, including all real
property except the investor’s primary residence, home furnishings and automobiles, over total liabilities. For purposes
of calculating “net worth”, (i) the primary residence shall not be included as an asset, (ii) to the extent that the
indebtedness that is secured by the primary residence is in excess of the fair market value of the primary residence, the excess
amount shall be included as a liability, and (iii) if the amount of outstanding indebtedness that is secured by the primary residence
exceeds the amount outstanding 60 days prior to the execution of this investment letter, other than as a result of the acquisition
of the primary residence, the amount of that increase in indebtedness shall be included as a liability.

 

2a.
A person who had individual income (exclusive of any income attributable to the person’s spouse) of more than who has $200,000
in each of the two most recently completed years and who reasonably expects to have an individual income in excess of $200,000
this year.

  

2b.
Alternatively, a person, who with his or her spouse, has joint income in excess of $300,000 in each applicable year.

 

3.
A director or executive officer of the Company.

 

Other Investors:

 

4.
Any bank as defined in Section 3(a)(2) of the Securities Act of 1933, as amended (“Securities Act”) whether acting
in its individual or fiduciary capacity; any broker or dealer registered pursuant to section 15 of the Securities Exchange Act
of 1934, as amended; insurance company as defined in Section 2(13) of the Securities Act; investment company registered under the
Investment Company Act of 1940 or a business development company as defined in Section 2(a)(48) of that Act; Small Business Investment
Company licensed by the U.S. Small Business Administration under Section 301(c) or (d) of the Small Business Investment Act of
1958; any plan established and maintained by a state, its political subdivisions, or any agency or instrumentality of a state or
its political subdivisions, for the benefit of its employees, if such plan has total assets in excess of $5,000,000; employee benefit
plan within the meaning of Title I of the Employee Retirement Income Security Act of 1974, if the investment decision is made by
a plan fiduciary, as defined in Section 3(21) of such Act, which is either a bank, savings and loan association, insurance company,
or registered investment advisor, or if the employee benefit plan has total assets in excess of $5,000,000, or if a self-directed
plan, with investment decisions made solely by persons that are accredited investors.

  

5.
A private business development company as defined in Section 202(a)(22) of the Investment Advisors Act of 1940.

  

6.
An organization described in Section 501(c)(3) of the Internal Revenue Code, corporation, Massachusetts or similar business trust
or partnership, not formed for the specific purpose of acquiring the securities offered, with total assets in excess of $5,000,000.  

  

7.
A trust, with total assets in excess of $5,000,000, not formed for the specific purpose of acquiring the securities offered, whose
purchase is directed by a sophisticated person as described in Rule 506(b)(2)(ii) of the Securities Act.

 

8.  An entity in which all of the equity owners are accredited investors.

 

    	 		 

    	 

    

  

Exhibit B 

ASSIGNMENT

 

(To be Executed
by the Holder to Effect Transfer of the Attached Warrant)

 

For Value Received
__________________________ hereby sells, assigns and transfers to _________________________ the Warrant attached hereto and the
rights represented thereby to purchase _________ shares of Common Stock in accordance with the terms and conditions hereof, and
does hereby irrevocably constitute and appoint ___________________________ as attorney to transfer such Warrant on the books of
the Company with full power of substitution.

 

	Dated:	 	 
	Signed:	 	 

 

	
        Please print or typewrite

        name and address of

        assignee:

         

         
	 

 Please insert Social Security

or other Tax Identification

Number of Assignee:Exhibit 10.1

SECURITIES
PURCHASE AGREEMENT

 

THIS SECURITIES
PURCHASE AGREEMENT (the “Agreement”), dated as of February 26, 2020, is entered into by and between
VERIFYME, INC., a Nevada corporation, (the “Company”) and each of the persons or entities who executes
a signature page hereof, together with all other persons or entities who may become a party to this Agreement by executing and
delivering to the Company a joinder in substantially the form as Exhibit B (the “Joinder”) hereto subsequent
to the original execution and delivery of this Agreement (each referred to as a “Buyer” and, collectively, the
“Buyers”).

 

WITNESSETH:

 

WHEREAS, the
Company and each Buyer are executing and delivering this Agreement in accordance with and in reliance upon the exemption from securities
registration afforded, inter alia, by Rule 506 under Regulation D (“Regulation D”) as promulgated
by the United States Securities and Exchange Commission (the “SEC”) under the Securities Act of 1933, as amended
(the “1933 Act” or, the “Securities Act”), and/or Section 4(a)(2) of the 1933 Act; and

 

WHEREAS, the
Buyers wish to purchase from the Company, and the Company wishes to sell to the Buyers, upon the terms and subject to the conditions
of this Agreement, securities consisting of the Company’s senior secured convertible debentures (the “Debentures”),
each of which are in the form of Exhibit A hereto, which will be convertible into shares of the Company’s
common stock, par value $0.001 per share (the “Common Stock”), in the aggregate principal amount of a minimum
of Nine Hundred Thousand and 00/100 Dollars ($900,000.00) (the “Minimum Offering Amount”) up to a maximum of
Two Million and 00/100 Dollars ($2,000,000.00), (the “Maximum Offering Amount”), and three year warrants (the
“Warrants”) to purchase up to 25,000,000 shares of the Common Stock at an exercise price of $0.15 per share,
substantially in the form attached hereto as Exhibit E, all upon the terms and subject to the conditions of this Agreement,
the Debentures, the Warrants, and other related documents;

 

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

 

1.            DEFINITIONS;
AGREEMENT TO PURCHASE.

 

		a.	Certain Definitions. As used herein, each of the following terms has the meaning set
forth below, unless the context otherwise requires:

 

		1)	“Affiliate” means, with respect to a specific Person referred to in the relevant
provision, another Person who or which controls or is controlled by or is under common control with such specified Person.

 

		2)	“Certificates” means certificates representing the Conversion Shares issuable
hereunder, each duly executed on behalf of the Company and issued hereunder.

 

		3)	“Closing” has the meaning set forth in Section 1(b)(ii).

 

		4)	“Closing Date” means the date on which Closings are held, which are the Initial
Closing Date and each Subsequent Closing Date.

 

		5)	“Common Stock” shall have the meaning ascribed to such term in the Recitals.

 

		6)	“Conversion Amount” shall mean the Conversion Amount as defined in the Debentures.

 

		7)	“Conversion Price” means the Conversion Price as defined in the Debentures.

 

    	 	 	 

    	 

    

 

		8)	“Conversion Shares” means the shares of Common Stock issuable upon conversion
of the Debentures.

 

		9)	“DWAC Operational” means that the Common Stock is eligible for clearing through
the Depository Trust Company (“DTC”) via the DTC’s Deposit Withdrawal Agent Commission or “DWAC”
system and active and in good standing for DWAC issuance by the Transfer Agent (as defined herein).

 

		10)	“Dollars” or “$” means United States Dollars.

 

		11)	“Exchange Act” means the Securities Exchange Act of 1934, as amended.

 

		12)	“Initial Closing Date” shall have the meaning ascribed to such term in Section
6(a).

 

		13)	“Resolutions” has the meaning set forth in Section 8(h).

 

		14)	“Market Price of the Common Stock” means (x) the closing bid price of the Common
Stock for the period indicated in the relevant provision hereof (unless a different relevant period is specified in the relevant
provision), as reported by Bloomberg, LP or, if not so reported, as reported on the OTCQB, OTCQX or OTC Pink or (y) if the Common
Stock is listed on a stock exchange, the closing price on such exchange, as reported by Bloomberg, LP.

 

		15)	“Material Adverse Effect” means a material adverse effect on the (i) business,
operations or condition (financial or otherwise) or results of operation of the Company and its subsidiaries taken as a whole;
or (ii) Company’s ability to perform in any material respect on a timely basis its obligations under the Transaction Documents.
Without limiting the generality of the foregoing, the occurrence of any of the following shall be considered a Material Adverse
Effect: (i) any final money, judgment, writ or warrant of attachment, or similar process (including an arbitral determination)
in excess of One Hundred Thousand Dollars ($100,000) shall be entered or filed against the Company (including, in any event, products
liability claims against the Company), (ii) the suspension or withdrawal of any governmental authority or permit pertaining to
a material amount of the Company’s products or services, and/or (iii) the loss of and inability to replace any material insurance
coverage (including, in any case, comprehensive general liability coverage, products liability coverage or directors and officers
coverage, in each case in effect at the time of execution and delivery of this Agreement).

 

		16)	“Minimum Closing Purchase Price” shall mean the greater of $900,000.00 or the
aggregate face amount of Debentures for which the Company has received signed Agreements as of the Initial Closing Date.

 

		17)	“Notice of Conversion” means a signed notice executed and delivered by a Buyer
indicating an intent to exercise the conversion of the Debenture.

 

		18)	“Person” means any living person or any entity, such as, but not necessarily
limited to, a corporation, partnership or trust.

 

		19)	“Purchase Price” means the price that the Buyers pay for the Debentures at each
respective Closing, which shall be the face amount of the applicable Debenture.

 

    	 	2	 

    	 

    

 

		20)	“Registration Statement” shall mean any registration statement filed or contemplated
to be filed by the Company with the SEC under the Securities Act.

 

		21)	“Restricted Stock” shall mean shares of Common Stock which are not freely trading
shares when issued.

 

		22)	“Securities” means the Debentures, the Warrants, and the Shares (as defined
in this Agreement).

 

		23)	“Security Agreement” has the meaning set forth in Section 1(b)(iii).

 

		24)	“Shares” means the Conversion Shares.

 

		25)	“Subsequent Closing Date” shall have the meaning ascribed to such term in Section 6(b).

 

		26)	“Transaction Documents” means, collectively, this Agreement, the Debentures,
the Resolutions, the Security Agreement, the Warrant and the other agreements, documents and instruments contemplated hereby or
thereby.

 

		27)	“Transfer Agent” shall have the meaning ascribed to such term in Section 4(a).

 

		28)	Reserved.

 

		29)	“Warrant” shall have the meaning ascribed to such term in the Recitals.

 

		30)	“Warrant Shares” means the shares that may be issued upon exercise of the Warrants.

 

b.       Purchase
and Sale of Debentures and Warrant.

 

(i)       Each
Buyer agrees to purchase from the Company, and the Company agrees to sell to each Buyer, the Debentures in the amount set forth
on the signature page executed by such Buyer, and the Warrants, on the terms and conditions set forth below in this Agreement and
the other Transaction Documents.

 

(ii)       Subject
to the terms and conditions of this Agreement and the other Transaction Documents, the Buyer will purchase the Debentures at certain
closings (each, a “Closing”) to be held on certain respective Closing Dates as set forth herein.

 

(iii)       Repayment of
the Debentures shall be secured by a pledge by the Company of all of the assets of the Company pursuant to a Security Agreement
upon mutually acceptable terms (the “Security Agreement”). The Security Agreement will provide that the approval
of the holders of a majority of the outstanding principal amount of the Debentures shall be required to take any action on behalf
of the Buyers with respect to the Security Agreement.

 

2.       BUYER’S
REPRESENTATIONS, WARRANTIES, ETC.

 

Each Buyer, on behalf
of itself only, represents and warrants to, and covenants and agrees with, the Company as follows:

 

a.       Investment
Purpose. Without limiting the Buyer’s right to sell the Shares pursuant to a Registration Statement or an applicable
exemption under the 1933 Act, Buyer is purchasing the Debentures, and will be acquiring the Conversion Shares, and is acquiring
the Warrants and any Warrant Shares thereunder, for its own account for investment purposes only and not with a view towards the
public sale or distribution thereof and not with a view to or for sale in connection with any distribution thereof. The Buyer is
purchasing the Debentures and the Warrants in the ordinary course of its business.

 

    	 	3	 

    	 

    

 

b.       Accredited
Investor Status. Buyer is (i) an “accredited investor” as that term is defined in Rule 501 of the General
Rules and Regulations under the 1933 Act by reason of Rule 501(a)(3), (ii) experienced in making investments of the kind described
in this Agreement, the Transaction Documents, and the related documents, (iii) able, by reason of the business and financial experience
of its officers (if an entity) and professional advisors (who are not affiliated with or compensated in any way by the Company
or any of its Affiliates or selling agents), to protect its own interests in connection with the transactions described in this
Agreement, and the related documents, and (iv) able to afford the entire loss of its investment in the Securities.

 

c.       Subsequent
Offers and Sales. Buyer understands that the Securities are “restricted securities” and have not been registered
under the Securities Act or any applicable state law. All subsequent offers and sales of the Securities by the Buyer shall be made
pursuant to registration of the Shares under the 1933 Act or pursuant to an exemption from registration and compliance with applicable
states’ securities laws.

 

d.       Reliance
on Exemptions. Buyer understands that the Securities are being offered and sold to it in reliance on specific exemptions
from the registration requirements of United States federal and state securities laws and that the Company is relying upon the
truth and accuracy of, and the Buyer’s compliance with, the representations, warranties, agreements, acknowledgments and
understandings of the Buyer set forth herein in order to determine the availability of such exemptions and the eligibility of the
Buyer to acquire the Securities.

 

e.       Information. Buyer
and its advisors have been furnished with all materials relating to the business, finances and operations of the Company and materials
relating to the offer and sale of the Securities which have been requested by the Buyer. Buyer and its advisors have been afforded
the opportunity to ask questions of the Company and have received complete and satisfactory answers to any such inquiries. Without
limiting the generality of the foregoing, Buyer has also had the opportunity to obtain and to review the Company’s Annual
Report on Form 10-K for the fiscal year ended December 31, 2018, and Quarterly Report on Form 10-Q for the fiscal quarter ended
September 30, 2019.

 

f.       Investment
Risk. Buyer understands that its investment in the Securities constitutes high risk investment and involves a high degree
of risk, including the risk of loss of the Buyer’s entire investment.

 

g.       Governmental
Review. Buyer understands that no United States federal or state agency or any other government or governmental agency
has passed on or made any recommendation or endorsement of the Securities.

 

h.       Organization;
Authorization. Buyer, if an entity, is duly organized, validly existing and in good standing under the laws of the jurisdiction
of its organization. Buyer has full right and power to enter into and consummate the transactions contemplated by the Transaction
Documents. This Agreement and the other Transaction Documents have been duly and validly authorized, executed and delivered on
behalf of the Buyer and create a valid and binding agreement of the Buyer enforceable in accordance with its terms, subject as
to enforceability to general principles of equity and to bankruptcy, insolvency, moratorium and other similar laws affecting the
enforcement of creditors’ rights generally.

 

i.       Residency. The
state in which any offer to sell Securities hereunder was made to or accepted by the Buyer is the state shown as the Buyer’s
address contained herein, and Buyer is a resident of such state only.

 

3.       COMPANY
REPRESENTATIONS AND WARRANTIES, ETC. 

 

The Company represents
and warrants to the Buyer that:

 

a.       Concerning
the Debentures and the Shares. There are no preemptive rights of any stockholder of the Company to acquire the Debentures
or the Shares.

 

    	 	4	 

    	 

    

 

b.       Organization;
Subsidiaries; Reporting Company Status.  The Company is a corporation duly organized, validly existing and in good standing
under the laws of the State of Nevada and has the requisite corporate or other power to own its properties and to carry on its
business as now being conducted. The Company is duly qualified as a foreign corporation or other entity to do business and is in
good standing in each jurisdiction where the nature of the business conducted or property owned by it makes such qualification
necessary, other than those jurisdictions in which the failure to so qualify would not have a Material Adverse Effect. The Company
has no wholly-owned or majority-owned subsidiaries. The Common Stock is listed and traded on the OTCQB (trading symbol: VRME).
The Company has received no notice, either oral or written, from FINRA, the SEC, or any other organization, with respect to the
continued eligibility of the Common Stock for such listing, and the Company has maintained all requirements for the continuation
of such listing. The Company is an operating company in that, among other things (A) it primarily engages, wholly or substantially,
directly or indirectly through a majority owned subsidiary or subsidiaries, in the production or sale, or the research or development,
of a product or service other than the investment of capital, (B) it is not an individual or sole proprietorship, (C) it is not
an entity with no specific business plan or purpose and its business plan is not to engage in a merger or acquisition with an unidentified
company or companies or other entity or person, and (D) it intends to use the proceeds from the sale of the Debentures solely for
the operation of the Company’s business and uses other than personal, family, or household purposes.

  

c.       Authorized
Shares.  The Company’s SEC Documents (as defined in this Agreement) set forth all capital stock and derivative securities
of the Company that are authorized for issuance and that are issued and outstanding. All issued and outstanding shares of Common
Stock have been duly authorized and validly issued and are fully paid and nonassessable. The Company has sufficient authorized
and unissued shares of Common Stock as may be necessary to effect the issuance of the Shares. The Shares and the Warrant Shares
have been duly authorized and, when issued upon conversion of, or as interest on, the Debentures, or, in the case of the Warrant
Shares, when issued upon exercise of the Warrant, will be duly and validly issued, fully paid and non-assessable and will not subject
the holder thereof to personal liability by reason of being such holder. At all times, the Company shall keep available and reserved
for issuance to the holders of the Debentures and the Warrants shares of Common Stock duly authorized for issuance against the
Debentures and pursuant to the Warrants. As of the effective date of this Agreement, other than as reflected in the SEC Documents
of the Company and except as set forth on Schedule 3(c), (i) there are no outstanding options, warrants, scrip, rights to
subscribe for, puts, calls, rights of first refusal, agreements, understandings, claims or other commitments or rights of any character
whatsoever relating to, or securities or rights convertible into or exchangeable for any shares of capital stock of the Company
or any of its subsidiaries, or arrangements by which the Company or any of its subsidiaries is or may become bound to issue additional
shares of capital stock of the Company or any of its subsidiaries, (ii) there are no agreements or arrangements under which the
Company or any of its subsidiaries is obligated to register the sale of any of its or their securities under the 1933 Act and (iii)
there are no anti-dilution or price adjustment provisions contained in any security issued by the Company (or in any agreement
providing rights to security holders) that will be triggered by the issuance of the Securities.

 

d.       Authorization. This
Agreement, the issuance of the Debentures (including without limitation the incurrence of indebtedness thereunder), the issuance
of the Conversion Shares under the Debentures, the issuance of the Warrants and the Warrant Shares thereunder, and the other transactions
contemplated by the Transaction Documents, have been duly and validly authorized by the Company, and this Agreement has been duly
executed and delivered by the Company. Each of the Transaction Documents, when executed and delivered by the Company, are and will
be, valid, legal and binding agreements of the Company, enforceable in accordance with their respective terms, subject as to enforceability
to general principles of equity and to bankruptcy, insolvency, moratorium, and other similar laws affecting the enforcement of
creditors’ rights generally.

 

e.       Non-contravention. The
execution and delivery of the Transaction Documents, the issuance of the Securities and the consummation by the Company of the
other transactions contemplated by this Agreement and the Debentures (including without limitation the incurrence of indebtedness
thereunder) do not and will not conflict with or result in a breach by the Company of any of the terms or provisions of, or constitute
a default under (i) the articles of incorporation or by-laws of the Company, each as currently in effect, (ii) any indenture, mortgage,
deed of trust, or other material agreement or instrument to which the Company is a party or by which it or any of its properties
or assets are bound, including any listing agreement for the Common Stock (if applicable), except as herein set forth or an event
which results in the creation of any lien, charge or encumbrance upon any assets of the Company or the triggering of any anti-dilution
rights, rights of first refusal or first offer on the part of holders of the Company’s securities, or (iii) to its knowledge,
any existing applicable law, rule, or regulation or any applicable decree, judgment, or order of any court, United States federal
or state regulatory body, administrative agency, or other governmental body having jurisdiction over the Company or any of its
properties or assets, unless such conflict, breach or default would not have a Material Adverse Effect.

 

    	 	5	 

    	 

    

 

f.       Approvals. No
authorization, approval or consent of any court, governmental body, regulatory agency, self-regulatory organization, or stock exchange
or market or the stockholders of the Company is required to be obtained by the Company for the entering into and performing this
Agreement and the other Transaction Documents (including without limitation the issuance and sale of the Securities to the Buyer
as contemplated by this Agreement) except such authorizations, approvals and consents that have been obtained, or such authorizations,
approvals and consents, the failure of which to obtain would not have a Material Adverse Effect.

 

g.       SEC
Documents; Rule 144 Status. None of the SEC Documents contained, at the time they were filed, any untrue statement of
a material fact or omitted to state any material fact required to be stated therein or necessary to make the statements made therein
in light of the circumstances under which they were made, not misleading. The Company has filed all reports, schedules, forms,
statements and other documents required to be filed by it with the SEC pursuant to the reporting requirements of the Exchange Act
(all of the foregoing filed prior to the date hereof and all exhibits included therein and financial statements and schedules thereto
and documents (other than exhibits to such documents) incorporated by reference therein, being hereinafter referred to herein as
the “SEC Documents”). Except as disclosed to the Buyer in writing, the Company is not aware of any event occurring
on or prior to the execution and delivery of this Agreement that would require the filing of, or with respect to which the Company
intends to file, a Form 8-K after such time. The Company satisfies the requirements of Rule 144(i)(2), and the Company shall continue
to satisfy all applicable requirements of Rule 144 promulgated under the 1933 Act (“Rule 144”) (or any successor
thereto) for so long as any Securities are outstanding and not registered pursuant to an effective Registration Statement filed
with the SEC.

 

h.       Absence
of Certain Changes. Since September 30, 2019, when viewed from the perspective of the Company, there has been no material
adverse change and no material adverse development in the business, properties, operations, condition (financial or otherwise),
or results of operations of the Company (including, without limitation, a change or development which constitutes, or with the
passage of time is reasonably likely to become, a Material Adverse Effect), except as disclosed in the SEC Documents. Since September
30, 2019, except as provided in the SEC Documents, the Company has not (i) incurred or become subject to any material liabilities
(absolute or contingent) except liabilities incurred in the ordinary course of business consistent with past practices; (ii) other
than the senior secured debentures to be repaid in connection with this offering, discharged or satisfied any material lien or
encumbrance or paid any material obligation or liability (absolute or contingent), other than current liabilities paid in the ordinary
course of business consistent with past practices; (iii) declared or made any payment or distribution of cash or other property
to stockholders with respect to its capital stock, or purchased or redeemed, or made any agreements to purchase or redeem, any
shares of its capital stock; (iv) sold, assigned or transferred any other tangible assets, or canceled any debts or claims, except
in the ordinary course of business consistent with past practices; (v) suffered any substantial losses or waived any rights of
material value, whether or not in the ordinary course of business, or suffered the loss of any material amount of existing business;
(vi) made any changes in employee compensation, except in the ordinary course of business consistent with past practices; or (vii)
experienced any material problems with labor or management in connection with the terms and conditions of their employment.

 

i.       Full
Disclosure. There is no fact known to the Company (other than general economic conditions known to the public generally
or as disclosed in the SEC Documents) that has not been disclosed in writing to the Buyer that (i) would reasonably be expected
to have a Material Adverse Effect, (ii) would reasonably be expected to materially and adversely affect the ability of the Company
to perform its obligations pursuant to the Transaction Documents, or (iii) would reasonably be expected to materially and adversely
affect the value of the rights granted to the Buyer in the Transaction Documents.

 

j.       Absence
of Litigation. Except as described in the SEC Documents, there is no action, suit, proceeding, inquiry or investigation
before or by any court, public board or body pending or, to the knowledge of the Company, threatened against or affecting the Company,
wherein an unfavorable decision, ruling or finding would have a Material Adverse Effect or which would adversely affect the validity
or enforceability of, or the authority or ability of the Company to perform its obligations under, any of the Transaction Documents.
The Company is not a party to or subject to the provisions of, any order, writ, injunction, judgment or decree of any court or
government agency or instrumentality which could reasonably be expected to have a Material Adverse Effect.

 

    	 	6	 

    	 

    

 

k.       Absence
of Liens. The Company’s assets are not encumbered by any liens or mortgages except as described in the SEC Documents.

 

l.       Absence
of Events of Default. No event of default (or its equivalent term), as defined in the respective agreement, indenture,
mortgage, deed of trust or other instrument, to which the Company is a party, and no event which, with the giving of notice or
the passage of time or both, would become an event of default (or its equivalent term) (as so defined in such document), has occurred
and is continuing, which would have a Material Adverse Effect.

 

m.       No
Undisclosed Liabilities or Events. The Company has no liabilities or obligations other than those disclosed in the SEC
Documents or those incurred in the ordinary course of the Company’s business since September 30, 2019, and which individually
or in the aggregate, do not or would not have a Material Adverse Effect. No event or circumstances has occurred or exists with
respect to the Company or its properties, business, condition (financial or otherwise), or results of operations, which, under
applicable law, rule or regulation, requires public disclosure or announcement prior to the date hereof by the Company but which
has not been so publicly announced or disclosed. Except with respect to a proposal for an increase in the Company’s authorized
Common Stock, there are no proposals currently under consideration or currently anticipated to be under consideration by the board
of directors or the executive officers of the Company which proposal would (x) change the articles of incorporation, by-laws or
any other charter document of the Company, each as currently in effect, with or without stockholder approval, which change would
reduce or otherwise adversely affect the rights and powers of the stockholders of the Common Stock or (y) materially or substantially
change the business, assets or capital of the Company.

 

n.       No
Integrated Offering. Neither the Company nor any of its Affiliates nor any Person acting on its or their behalf has, directly
or indirectly, at any time during the six month period immediately prior to the date of this Agreement made any offer or sales
of any security or solicited any offers to buy any security under circumstances that would eliminate the availability of the exemption
from registration under Rule 506 of Regulation D in connection with the offer and sale of the Securities as contemplated hereby.
Neither the Company nor any of its Affiliates nor any Person acting on its or their behalf has, has directly or indirectly made
any offers or sales in any security or solicited any offers to buy any security under circumstances that would require registration
under the Securities Act of the issuance of the Securities to the Buyer. The issuance of the Securities to the Buyer will not be
integrated with any other issuance of the Company’s securities (past, current or future) for purposes of any stockholder
approval provisions applicable to the Company or its securities.

 

o.       Reserved.

 

p.       Regulatory
Permits. The Company has all such permits, easements, consents, licenses, franchises and other governmental and regulatory
authorizations from all appropriate federal, state, local or other public authorities (“Permits”) as are necessary
to own and lease its properties and conduct its businesses in all material respects in the manner described in the SEC Documents
and as currently being conducted. All such Permits are in full force and effect and the Company has fulfilled and performed all
of its material obligations with respect to such Permits, and no event has occurred that allows, or after notice or lapse of time
would allow, revocation or termination thereof or will result in any other material impairment of the rights of the holder of any
such Permit, subject in each case to such qualification as may be disclosed in the SEC Documents. Such Permits contain no restrictions
that would materially impair the ability of the Company to conduct businesses in the manner consistent with its past practices.
The Company has not received notice or otherwise has knowledge of any proceeding or action relating to the revocation or modification
of any such Permit.

 

q.       Residency. The
state in which any offer to sell Securities hereunder was made or accepted by the Seller is the state shown as the Seller’s
address contained herein.

 

    	 	7	 

    	 

    

 

r.       Hazardous
Materials. The Company is in compliance with all applicable Environmental Laws in all respects except where the failure
to comply does not have and could not reasonably be expected to have a Material Adverse Effect. For purposes of the foregoing:

 

“Environmental
Laws” means, collectively, the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended,
the Superfund Amendments and Reauthorization Act of 1986, the Resource Conservation and Recovery Act, the Toxic Substances Control
Act, as amended, the Clean Air Act, as amended, the Clean Water Act, as amended, any other “Superfund” or “Superlien”
law or any other applicable federal, state or local statute, law, ordinance, code, rule, regulation, order or decree regulating,
relating to, or imposing liability or standards of conduct concerning, the environment or any Hazardous Material.

 

“Hazardous
Material” means and includes any hazardous, toxic or dangerous waste, substance or material, the generation, handling,
storage, disposal, treatment or emission of which is subject to any Environmental Law.

 

s.       Independent
Public Accountants. The Company’s auditor is an independent registered public accounting firm with respect to the
Company, as required by the 1933 Act, the Exchange Act and the rules and regulations promulgated thereunder.

 

t.       Internal
Accounting Controls. Except as disclosed in the SEC Documents, the Company maintains a system of internal accounting controls
sufficient to provide reasonable assurances that (i) transactions are executed in accordance with management’s general or
specific authorization; (ii) transactions are recorded as necessary to permit preparation of financial statements in conformity
with generally accepted accounting principles and to maintain accountability for assets; (iii) access to assets is permitted only
in accordance with management’s general or specific authorization; and (iv) the recorded accountability for assets is compared
with existing assets at reasonable intervals and appropriate action is taken with respect to any differences.

 

u.       Brokers. Except
with respect to Carter, Terry & Company, and Scarsdale and Emerging Growth Equity Ltd., each a registered broker-dealer, no
Person (other than the Buyer and its principals, employees and agents) is entitled to receive any consideration from the Company
or the Buyer arising from any finder’s agreement, brokerage agreement or other agreement to which the Company is a party
in connection with the transactions contemplated by the Transaction Documents.

 

v.        DWAC
Operational; DRS. The Company is currently and shall remain DWAC Operational and eligible for DRS.

 

4.       CERTAIN
COVENANTS AND ACKNOWLEDGMENTS.

 

a.       Transfer
Restrictions. The parties acknowledge and agree that (1) the Securities, including the Debentures and the Shares, have
not been registered under the provisions of the 1933 Act, and may not be transferred unless (A) subsequently registered thereunder
or (B) the Securities to be sold or transferred may be sold or transferred pursuant to an exemption from such registration; (2)
any sale of the Securities made in reliance on Rule 144 may be made only in accordance with the terms of Rule 144 and further,
if Rule 144 is not applicable, any resale of such Securities under circumstances in which the seller, or the Person through whom
the sale is made, may be deemed to be an underwriter, as that term is used in the 1933 Act, may require compliance with some other
exemption under the 1933 Act or the rules and regulations of the SEC thereunder; and (3) beginning six (6) months after the Initial
Closing Date, the Company shall, at its sole cost and expense, deliver to its transfer agent and registrar for the Common Stock
(the “Transfer Agent”) a written opinion of the Company’s counsel in favor of the Buyers (only to the
extent the Buyer has signed a standard representation letter addressed to the Company’s counsel, in form, scope and substance
acceptable to the Company’s counsel) and the Transfer Agent, reasonably satisfactory in form, scope and substance to the
Transfer Agent, to the effect that a contemporaneously requested transfer of Securities does not require registration under the
1933 Act, pursuant to the 1933 Act, Rule 144 or other regulations promulgated under the 1933 Act.

 

    	 	8	 

    	 

    

 

b.       Restrictive
Legend. The Buyer acknowledges and agrees that the Warrants, Warrant Shares, the Debentures, and, until such time as the
Shares have been registered under the 1933 Act as contemplated hereby and sold in accordance with an effective Registration Statement,
certificates and other instruments representing any of the Securities shall bear a restrictive legend in substantially the following
form (and a stop-transfer order may be placed against transfer of any such Securities):

 

THIS SECURITY HAS NOT BEEN
REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION
FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE
OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION
FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE
STATE SECURITIES LAWS.

 

c.        Securities
Filings. The Company undertakes and agrees to make all necessary filings (including, without limitation, a Form D) in
connection with the sale of the Securities to the Buyer required under any United States laws and regulations applicable to the
Company (including without limitation state “blue sky” laws), or by any domestic securities exchange or trading market,
and to provide a copy thereof to the Buyer promptly after such filing.

 

d.       Registration
Rights. Promptly following the final Closing Date but no later than sixty (60) days after the final Closing Date (the
“Filing Deadline”), the Company shall prepare and file with the SEC one registration statement on Form S-1 (the
“Registration Statement”) covering the resale of the shares of the Company’s Common Stock underlying the
Debentures and Warrants (together the “Registrable Securities”).  The Registration Statement (and each
amendment or supplement thereto, and each request for acceleration of effectiveness thereof) shall be provided to the Buyers and
their respective counsel for comment not less than three business days prior to its filing or other submission. The Company shall
pay all expenses incurred in connection with the registration of the Registrable Securities. Notwithstanding
the foregoing, if the Company shall furnish to the Buyers a certificate signed by the Chief Executive Officer of the Company stating
that in the good faith judgment of the board of directors or a committee of the board of directors, it would be materially detrimental
to the Company and its stockholders for such Registration Statement to be filed, then the Company shall have the right to defer
such filing for a period of not more than sixty (60) days; provided, however, that the Company may
not utilize this right more than once; provided, further that during such sixty (60) day period,
the Company shall not file any registration statement pertaining to the public offering of any other securities of the Company.
The Company shall use its best efforts to have the Registration Statement declared effective
by the SEC as soon as practicable, but in no event more than one hundred twenty (120) days after the Filing Deadline. The Company
shall notify the Buyers by facsimile or email as promptly as practicable, and in any event, within twenty-four (24) hours,
after any Registration Statement is declared effective and shall simultaneously provide the Buyers with copies of any related prospectus
to be used in connection with the sale or other disposition of the shares of Common Stock covered thereby. 

 

e.       Use
of Proceeds. The Company shall use the proceeds from the sale of the Debentures for (i) repayment of the Company’s
outstanding convertible debentures in the aggregate amount of $720,000 and its subordinated note in the principal amount of $75,000,
and (ii) the remainder, if any, for working capital purposes only subject to customary restrictions. Absent the prior written approval
of holders of a majority of the outstanding principal amount of the Debentures then outstanding, the Company shall not use any
portion of the proceeds of the sale of the Debentures to (i) repay any indebtedness or other obligation of the Company incurred
prior to the date of this Agreement outside of the debentures referenced above or the normal course of business, (ii) pay any dividends
or redemption amount on any of the Company’s equity or equity equivalents, (iii) pay deferred compensation or any compensation
to any of the directors or officers of the Company in excess of the rate or amount paid or accrued during the fiscal year ended
December 31, 2019 (as base compensation and excluding any discretionary amounts), other than modest increases consistent with prior
practice that are approved by the Company’s board of directors.

 

    	 	9	 

    	 

    

 

f.       Available
Shares. Commencing on the date of execution and delivery of this Agreement, the Company shall have and maintain authorized
and reserved for issuance, free from preemptive rights, that number of shares equal to two hundred percent (200%) of the number
of shares of Common Stock issuable based upon the conversion of the then-outstanding Debentures (including accrued interest thereon)
as may be required to satisfy the conversion rights of the Buyers pursuant to the terms and conditions of the Debentures (for the
avoidance of doubt, this shall be calculated based on the applicable conversion price that would result after the date that is
180 calendar days after the issuance date of the respective Debenture(s) regardless of the date of calculation) (without giving
effect to the 4.99% limitation on ownership as set forth in the Debentures). The Company shall monitor its compliance with the
foregoing requirements on an ongoing basis. If at any time the Company does not have available an amount of authorized and non-issued
Shares required to be reserved pursuant to this Section, then the Company shall, without notice or demand by the Buyer, call within
sixty (60) days of such occurrence and hold within ninety (90) days of such occurrence a special meeting of stockholders, for the
sole purpose of increasing the number of shares authorized. The board of directors of the Company shall recommend to stockholders
to vote in favor of increasing the number of Common Stock authorized at the meeting. The Company will use its best efforts to cause
members of the Company’s management to vote all of their own shares in favor of increasing the number of Common Stock authorized
at the meeting. If the increase in authorized shares is approved by the stockholders at the meeting, the Company shall implement
the increase in authorized shares within one (1) business day following approval at such meeting. Alternatively, to the extent
permitted by applicable law, in lieu of calling and holding a meeting as described above, the Company may, within thirty (30) days
of the date when the Company does not have available an amount of authorized and non-issued Shares required to be reserved as described
above, procure the written consent of stockholders to increase the number of shares authorized, and provide the stockholders with
notice thereof as may be required under applicable law (including without limitation Section 14(c) of the Exchange Act and Regulation
14C thereunder). Upon obtaining stockholder approval as aforesaid, the Company shall cause the appropriate increase in its authorized
shares of Common Stock within one (1) business day (or as soon thereafter as permitted by applicable law). Company’s failure
to comply with these provisions will be an Event of Default (as defined in the Debentures).

 

g.       Reimbursement. If
(i) any Buyer becomes a party defendant in any capacity in any action or proceeding brought by any stockholder of the Company,
in connection with or as a result of the consummation of the transactions contemplated by the Transaction Documents, or if any
Buyer is impleaded in any such action, proceeding or investigation by any Person, or (ii) any Buyer, other than by reason of its
own gross negligence, willful misconduct or breach of law (as adjudicated by a court of law having proper jurisdiction and such
adjudication is not subject to appeal), becomes a party defendant in any capacity in any action or proceeding brought by the SEC
against or involving the Company or in connection with or as a result of the consummation of the transactions contemplated by the
Transaction Documents, or if any Buyer is impleaded in any such action, proceeding or investigation by any Person, then in any
such case, the Company shall promptly reimburse any Buyer for its or their reasonable legal and other expenses (including the cost
of any investigation and preparation) incurred in connection therewith. The reimbursement obligations of the Company under this
paragraph shall be in addition to any liability which the Company may otherwise have, shall extend upon the same terms and conditions
to any Affiliates of any Buyer who are actually named in such action, proceeding or investigation, and partners, directors, agents,
employees and controlling Persons (if any), as the case may be, of any Buyer and any such Affiliate, and shall be binding upon
and inure to the benefit of any successors, assigns, heirs and personal representatives of the Company, the Buyer and any such
Affiliate and any such Person. Except as otherwise set forth in the Transaction Documents, the Company also agrees that neither
any Buyer nor any such Affiliate, partners, directors, agents, employees or controlling Persons shall have any liability to the
Company or any Person asserting claims on behalf of or in right of the Company in connection with or as a result of the consummation
of the Transaction Documents.

 

h.       Legal
Opinions. In addition to the obligations above, the Company will instruct its counsel to provide the Transfer Agent and/or
any Buyer, or their respective brokerage and/or clearing firm with all relevant legal opinions and other documentation requested
by any Buyer in connection with the issuance of the Conversion Shares or the Restricted Stock, or the sale thereof, to confirm
the share issuance(s) such that the Conversion Shares and/or Restricted Stock may be deposited with the applicable brokerage and/or
clearing firm.

 

i.       No
Payments to Affiliates or Related Parties.  So long as any of the Debentures remain outstanding, if the Debentures
are in default, the Company shall not, absent the prior written consent of the holders of all Debentures then outstanding, make
any payments to any of the Company’s or the subsidiaries’ respective Affiliates or related parties, including without
limitation payments or prepayments of principal or interest accrued on any indebtedness or obligation in favor of Affiliates or
related parties.  Notwithstanding anything to the contrary contained herein, the provisions of this Section 4(i) shall not
apply to payments to businesses in which Affiliates have an interest, made in the ordinary course of business and consistent with
past practice as disclosed in the SEC Documents.

 

    	 	10	 

    	 

    

 

j.      Conversion
of Deferred Compensation. After the Initial Closing Date, all deferred compensation amounts owed to the Company’s Chief
Executive Officer will be converted into shares of Common Stock at a conversion price of $0.08 per share.

 

k.       Public
Disclosure. Except to the extent required by applicable law, absent that Buyer’s prior written consent, the Company
shall not reference the name of any Buyer in any press release, securities disclosure, business plan, marketing or funding proposal.

 

l.       Reserved.

 

m.  No
Integration. The Company shall not make any offers or sales of any security (other than the Securities) under circumstances
that would require registration of the Securities being offered or sold hereunder under the Securities Act or cause the offering
of the Securities to be integrated with any other offering of securities by the Company for the purpose of any stockholder approval
provision applicable to the Company or its securities.

 

n.       Corporate
Existence. The Company will, so long as the Buyer beneficially owns any of the Securities, maintain its corporate existence
and shall not sell all or substantially all of the Company’s assets, except in compliance with the terms of the Debenture.

 

o.       Approval
Rights. For so long as forty percent (40%) of the Debentures issued pursuant to this Agreement are outstanding, the Company
will not, without the consent of the holders of a majority of the outstanding principal amount of the Debentures: (i) issue equity
linked securities with a variable market rate conversion ratio; (ii) create or authorize the creation of or issue any other security
convertible into or exercisable for any equity security having rights, preferences or privileges senior to or on parity with the
Debentures; or (iii) amend, alter or repeal any provision of the articles of incorporation or the by-laws of the Company in any
manner that is adverse to the Debentures.

 

5.       Reserved.

 

6.       CLOSINGS.

 

a.       Initial
Closing. Promptly upon the execution and delivery of copies of this Agreement and the accompanying Debentures representing
at least the Minimum Offering Amount, and satisfaction of all conditions in Sections 7 and 8 herein (the “Initial Closing
Date”), (A) the Company shall deliver to each Buyer executing this Agreement at that time the following: (i) a Debenture
reflecting the purchased amount by such Buyer; (ii) a Warrant in the name of Buyer; (iii) duly executed counterparts of the Transaction
Documents; and (iv) an officer’s certificate of the Company confirming the accuracy of the Company’s representations
and warranties contained herein, and (B) each Buyer shall deliver to the Company the following: (x) the Minimum Closing Purchase
Price for such Buyer and (y) duly executed counterparts of the Transaction Documents (as applicable).

 

b.       Subsequent
Closings. At any time after the Initial Closing Date and until such time as the Company has issued Debentures equal to
the Maximum Offering Amount, subject to the mutual agreement of the Buyer(s) executing this Agreement at that time and the Company,
and subject to satisfaction of the conditions set forth in Sections 7 and 8, (each, a “Subsequent Closing Date”)
(A) the Company shall deliver to each Buyer executing this Agreement at that time the following: (i) a Debenture reflecting the
purchased amount by such Buyer; (ii) a Warrant in the name of Buyer; and (iii) an officer’s certificate of the Company confirming,
as of the Subsequent Closing Date, the accuracy of the Company’s representations and warranties contained herein as of the
Subsequent Closing Date, and (B) each Buyer shall deliver to the Company the following: (i) the Purchase Price for such Buyer;
(ii) duly executed Joinder; and (iii) the duly executed counterparts of the applicable Transaction Documents.

 

    	 	11	 

    	 

    

 

c.       Location
and Time of Closings. Each Closing shall be deemed to occur on the related Closing Date at the office of the Company or
its designee and shall take place no later than 5:00 P.M., east coast time, on such day or such other time as is mutually agreed
upon by the Company and the Buyers.

 

7.       CONDITIONS
TO THE COMPANY’S OBLIGATION TO SELL.

 

The Company’s
obligation to sell the Debentures to the Buyers pursuant to this Agreement on each Closing Date is conditioned upon:

 

a.       Purchase
Price; Transaction Documents. Delivery to the Company of good funds as payment in full of the respective Purchase Price
for the Debentures at each Closing in accordance with this Agreement and execution and delivery by each Buyer of the Transaction
Documents to which it is a party;

 

b.       Representations
and Warranties; Covenants. The accuracy on the Closing Date of the representations and warranties of each Buyer contained
in this Agreement, each as if made on such date, and the performance by each Buyer on or before such date of all covenants and
agreements of each Buyer required to be performed on or before such date; and

 

c.       Laws
and Regulations; Consents and Approvals. There shall not be in effect any law, rule or regulation prohibiting or restricting
the transactions contemplated hereby, or requiring any consent or approval which shall not have been obtained.

 

8.       CONDITIONS
TO THE BUYER’S OBLIGATION TO PURCHASE.

 

Each Buyer’s
obligation to purchase the Debentures at each Closing is conditioned upon:

 

a.       Transaction
Documents. The execution and delivery of this Agreement and all other Transaction Documents by the Company;

 

b.       Debenture(s). Delivery
by the Company to each Buyer of the Debentures to be purchased in accordance with this Agreement;

 

c.       Section
4(a)(2) Exemption. The Debentures and the Conversion Shares shall be exempt from registration under the Securities Act,
pursuant to Section 4(a)(2) thereof;

 

d.        DWAC
Status. The Common Stock shall be DWAC Operational;

 

e.       Representations
and Warranties; Covenants. The accuracy in all material respects on the Closing Date of the representations and warranties
of the Company contained in this Agreement, each as if made on such date, and the performance by the Company on or before such
date of all covenants and agreements of the Company required to be performed on or before such date;

 

f.       Reserved.

 

g.       Legal
Proceedings. There shall be no litigation, criminal or civil, regulatory impairment or other legal and/or administrative
proceedings challenging or seeking to limit the Company’s ability to issue the Securities or the Common Stock;

 

h.       Corporate
Resolutions. Delivery by the Company to each Buyer of a copy of resolutions of the Company’s board of directors,
approving and authorizing the execution, delivery and performance of the Transaction Documents and the transactions contemplated
thereby in the form attached hereto as Exhibit C (the “Resolutions”);

 

i.       Officer’s
Certificate. Delivery by the Company to the Buyer of a certificate of the Chief Executive Officer of the Company in the
form attached hereto as Exhibit D;

 

    	 	12	 

    	 

    

 

j.       Search
Results. Delivery by the Company to the Buyers of copies of UCC search reports, issued by the Secretary of State of Nevada,
dated such a date as is reasonably acceptable to the Buyers, listing all effective financing statements which name the Company
under its present name and any previous names, as debtor, together with copies of such financing statements;

 

k.       Certificate
of Good Standing. Delivery by the Company to the Buyers of a copy of a certificate of good standing with respect to the
Company, issued by the Secretary of State of the State of Nevada, dated such a date as is reasonably acceptable to each Buyer,
evidencing the good standing thereof;

 

l.       Laws
and Regulations; Consents and Approvals. There shall not be in effect any law, rule or regulation prohibiting or restricting
the transactions contemplated hereby, or requiring any consent or approval which shall not have been obtained; and

 

m.       Adverse
Changes. From and after the date hereof to and including each Closing Date, (i) the trading of the Common Stock shall
not have been suspended by the SEC, FINRA, or any other governmental or self-regulatory organization, and trading in securities
generally on the principal market therefor shall not have been suspended or limited, nor shall minimum prices been established
for securities traded on the principal market therefor; (ii) there shall not have occurred any outbreak or escalation of hostilities
involving the United States or any material adverse change in any financial market that in either case in the reasonable judgment
of the Buyers makes it impracticable or inadvisable to purchase the Debentures.

 

 

9.       GOVERNING
LAW; MISCELLANEOUS.

 

a.       MANDATORY
FORUM SELECTION.  ANY DISPUTE ARISING UNDER, RELATING TO, OR IN CONNECTION WITH THE AGREEMENT OR RELATED TO ANY MATTER
WHICH IS THE SUBJECT OF OR INCIDENTAL TO THE AGREEMENT (WHETHER OR NOT SUCH CLAIM IS BASED UPON BREACH OF CONTRACT OR TORT) SHALL
BE SUBJECT TO THE EXCLUSIVE JURISDICTION AND VENUE OF THE FEDERAL COURTS LOCATED IN Monroe COUNTY, New York.  THIS PROVISION
IS INTENDED TO BE A “MANDATORY” FORUM SELECTION CLAUSE AND GOVERNED BY AND INTERPRETED CONSISTENTLY WITH NEW YORK LAW.

 

b.       Governing
Law. Except in the case of the Mandatory Forum Selection clause above, this Agreement shall be delivered and accepted
in and shall be deemed to be contracts made under and governed by the internal laws of the State of New York, and for all purposes
shall be construed in accordance with the laws of the State of New York, without giving effect to the choice of law provisions.
To the extent determined by the applicable court described above, the Company shall reimburse the Buyer for any reasonable legal
fees and disbursements incurred by the Buyer in enforcement of or protection of any of its rights under any of the Transaction
Documents.

 

c.       Waivers. 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.

 

d.       Successors
and Assigns. This Agreement shall inure to the benefit of and be binding upon the successors and assigns of each of the
parties hereto.

 

e.       Construction. All
pronouns and any variations thereof refer to the masculine, feminine or neuter, singular or plural, as the context may require.

 

f.       Facsimiles;
E-mails. A facsimile or email transmission of this signed Agreement or a Notice of Conversion under the Debentures shall
be legal and binding on all parties hereto. Such electronic signatures shall be the equivalent of original signatures.

 

g.       Counterparts. This
Agreement may be signed in one or more counterparts, each of which shall be deemed an original.

 

    	 	13	 

    	 

    

 

h.       Headings. The
headings of this Agreement are for convenience of reference and shall not form part of, or affect the interpretation of, this Agreement.

 

i.       Enforceability. If
any provision of this Agreement shall be invalid or unenforceable in any jurisdiction, such invalidity or unenforceability shall
not affect the validity or enforceability of the remainder of this Agreement or the validity or enforceability of this Agreement
in any other jurisdiction.

 

j.       Amendment. This
Agreement may be amended only by the written consent of the holders of a majority of the outstanding principal amount of the Debentures
and an instrument in writing signed by the Company.

 

k.       Entire
Agreement. This Agreement, together with the other Transaction Documents, supersedes all prior agreements and understandings
among the parties hereto with respect to the subject matter hereof.

 

l.       No
Strict Construction. This Agreement shall be construed as if both Parties had equal say in its drafting, and thus shall
not be construed against the drafter.

 

m.       Further
Assurances. 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 the 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.

 

10.       NOTICES.

 

Any notice required
or permitted hereunder shall be given in writing (unless otherwise specified herein) and shall be deemed effectively given on the
earliest of:

 

a.       the
date delivered, if delivered by personal delivery as against written receipt therefor or by facsimile or email transmission,

 

b.       the
third (3rd) business day after deposit, postage prepaid, in the United States Postal Service by registered or certified
mail, or

 

c.       the
first (1st) business day after deposit with a recognized courier service (e.g. FedEx, UPS, DHL, US Postal Service) for
delivery by next-day express courier, with delivery costs and fees prepaid,

 

in each case, addressed to each of the
other parties thereunto entitled at the following addresses (or at such other addresses as such party may designate by ten (10)
days’ advance written notice similarly given to each of the other parties hereto):

 

 

	COMPANY:    	
        VerifyMe, Inc.

        75 S. Clinton Ave., Suite 510

        Rochester, NY 14604

        Attention: Patrick White, Chief Executive
        Officer

        Email: patrick@verifyme.com

         

	
         

         
	
        With copies to (which shall not constitute
        notice):

         

        Harter Secrest & Emery LLP

        1600 Bausch & Lomb Place

        Rochester, NY 14604

        Attention: Alexander R. McClean

        Email: amcclean@hselaw.com

         

	BUYER:	At the Address on the Signature Page Hereof

 

    	 	14	 

    	 

    

 

11.       SURVIVAL
OF REPRESENTATIONS AND WARRANTIES. The Company’s representations and warranties herein shall survive for so long
as any Debentures are outstanding, and shall inure to the benefit of each Buyer, its successors and assigns.

 

12.       FEES;
EXPENSES. Each party agrees to bear its own fees and expenses in connection with the transactions contemplated herein.

  

[Signature Pages Follows]

 

    	 	15	 

    	 

    

 

IN WITNESS WHEREOF,
this Agreement has been duly executed by the Company as of the date first set forth above.

 

	COMPANY:	 
	 	 	 
	VERIFYME, INC.	 
	 	 	 
	 	 	 
	By:	/s/ Patrick White	 
	Name: Patrick White	 
	Title: Chief Executive Officer	 

  

[Signature Page to Securities Purchase
Agreement]

 

    	 	16	 

    	 

    

 

 IN WITNESS WHEREOF, this Agreement has been duly executed by the Buyer as of the date first set forth above.

BUYER:

 

 

	 	 
	(Print Name)	 
	 	 
	 	 
	(Signature)	 
	 	 
	 	 
	(Title/Capacity)	 
	 	 
	 	 
	(Address)	 
	 	 
	 	 
	(Tax ID Number)	 
	 	 
	 	 
	(Telephone Number)	 

 

 AMOUNT OF DEBENTURES PURCHASED:

 

	$	 	 

 

[Signature Page to Securities Purchase
Agreement]

 

    	 	17	 

    	 

    

 

Schedules to the Securities Purchase
Agreement

 

 

 

SCHEDULE 3(c)

 

 

 

OPTIONS, WARRANTS, PREFERRED STOCK AND
DEBENTURES

OUTSTANDING AS OF FEBRUARY 5, 2020

 

	DESCRIPTION	AMOUNT
	Stock Options	17,913,529
	 	 
	Warrants	22,262,608
	 	 
	Series B Convertible Preferred Stock	0.85
	 	 
	Debentures (Principal Amount)	$720,000

 

    	 	18	 

    	 

    

 

EXHIBITS

 

	Exhibit A	FORM OF DEBENTURE
	 	 
	Exhibit B	FORM OF JOINDER
	 	 
	Exhibit C	FORM OF RESOLUTIONS OF THE BOARD OF DIRECTORS
	 	 
	Exhibit D	FORM OF OFFICER’S CERTIFICATE
	 	 
	Exhibit E	FORM OF WARRANT
	 	 
	Exhibit F	FORM OF SECURITY AGREEMENT
	 	 
	Exhibit G	ACCREDITED INVESTOR QUESTIONNAIRE 

 

 

19

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