Document:

Exhibit
10.77

 

 

 

 

 

 

 

INVESTMENT
AGREEMENT 

BY
AND BETWEEN 

INTERCLOUD
SYSTEMS, INC. 

AND

DOMINION
CAPITAL LLC 

 

 

 

 

 

 

 

 

Dated

October 4, 2017

 

 

 

 

 

 

    	 	1	 

     

    

 

INVESTMENT
AGREEMENT

 

THIS
INVESTMENT AGREEMENT is entered into as of the 4th day of October 2017 this “Agreement”),
by and between Dominion Capital, LLC (the “Investor”), and INTERCLOUD SYSTEMS, INC., a corporation organized
and existing under the laws of the State of Delaware (the “Company”). 

 

RECITALS

 

WHEREAS,
the parties desire that, upon the terms and subject to the conditions contained herein, the Company may issue and sell to the
Investor and the Investor shall thereupon purchase from the Company the lower of (i) 200,000,000 shares of the Company’s
common stock, $0.0001 par value (“Common Stock”), and (ii) up to $5,000,000 of newly issued shares of Common
Stock; and 

 

WHEREAS,
the offer and sale of the shares of Common Stock hereunder have been registered by the Company in the Registration Statement,
which has been declared effective by order of the Commission under the Securities Act. 

 

NOW,
THEREFORE, the parties hereto, intending to be legally bound, hereby agree as follows: 

 

ARTICLE
I 

CERTAIN
DEFINITIONS 

 

Section
1.1Defined Terms. As used in this Agreement, the following terms shall have the following meanings specified or indicated
(such meanings to be equally applicable to both the singular and plural forms of the terms defined). 

 

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

 

“Agreement”
shall have the meaning specified in the preamble hereof. 

 

“Broker-Dealer”
shall have the meaning specified in Section 5.13. 

 

“Bylaws”
shall have the meaning set forth in Section 4.3. 

 

“Charter”
shall have the meaning set forth in Section 4.3. 

 

“Closing”
shall mean one of the closings of a purchase and sale of shares of Common Stock pursuant to Section 2.1. 

 

“Closing
Certificate” shall mean the closing certificate of the Company in the form of Exhibit C hereto. 

 

“Closing
Date” shall mean, with respect to a Closing, the 3rd day following the Put Date related to such Closing.
In the event that a Closing Date falls on a day other than a Trading Day, then the Closing Date shall be the next succeeding Trading
Day. 

 

“Code”
shall mean the Internal Revenue Code of 1986, as amended. 

 

“Commission”
means the Securities and Exchange Commission. 

 

    	 	2	 

     

    

 

“Commitment
Period” shall mean the period commencing on the Effective Date, and ending on the earlier of (i) the date on which Investor
shall have purchased Put Shares pursuant to this Agreement for an aggregate Purchase Price of the Maximum Commitment Amount, or
(ii) the date occurring thirty (30) months from the date of commencement of the Commitment Period. 

 

“Common
Stock” shall have the meaning set forth in the preamble to this Agreement. 

 

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

 

“Company”
shall have the meaning specified in the preamble to this Agreement. 

 

“Current
Report” shall have the meaning set forth in Section 2.10. 

 

“Daily
Trading Volume” in respect of a particular Trading Day means the daily trading volume of the Common Stock for that Trading
Day on the Principal Market as reported by Bloomberg, L.P. 

 

“Disclosure
Schedule” shall have the meaning set forth in the preamble to Article IV. 

 

“DTC”
shall mean the Depository Trust Company. 

 

“Effective
Date” shall mean the date of this Agreement. 

 

“ERISA”
shall mean the Employee Retirement Income Security Act of 1974, as amended. 

 

“Exchange
Act” shall mean the Securities Exchange Act of 1934, as amended. 

 

“FINRA”
shall mean the Financial Industry Regulatory Authority, Inc. 

 

“GAAP”
shall mean generally accepted accounting principles in the United States of America as applied by the Company. 

 

“Investment
Amount” shall mean the dollar amount (within the range specified in Section 2.2) to be invested by Investor to purchase
Put Shares with respect to any Put Notice as notified by the Company to Investor in accordance with Section 2.2. 

 

“Investor”
shall have the meaning specified in the preamble to this Agreement. 

 

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

 

    	 	3	 

     

    

 

“Material
Adverse Effect” shall mean any effect on the business, operations, properties, or financial condition of the Company
that is material and adverse to the Company and/or any condition, circumstance, or situation that would prohibit or otherwise
materially interfere with the ability of the Company to enter into and perform its obligations under this Agreement; provided,
however, that none of the following, individually or in the aggregate, shall be taken into account in determining whether a Material
Adverse Effect has occurred or insofar as reasonably can be foreseen would reasonably be expected to occur: (i) changes in conditions
in the United States or global capital, credit or financial markets generally, including changes in the availability of capital
or currency exchange rates, provided such changes shall not have affected the Company in a materially disproportionate manner
as compared to other similarly situated companies; (ii) any effect of the announcement of this Agreement or the consummation of
the transactions contemplated by this Agreement on the Company’s relationships, contractual or otherwise, with customers,
suppliers, vendors, bank or commercial lenders, lessors, collaboration partners, employees or consultants; (iii) the receipt of
any notice that the Common Stock may be ineligible to continue listing or quotation on the Principal Market, other than a final
and non-appealable notice that the listing or quotation of the Common Stock on the Principal Market shall be terminated on a date
certain; (iv) any foreseeable deterioration in the business, operations, properties or condition (financial or otherwise) of the
Company and/or its Subsidiaries substantially resulting from (A) conditions or risks (including, without limitation, those contained
in the section entitled “Risk Factors” in the Company’s Annual Report on Form 10-K, for the year ended December
31, 2016) existing as of the Effective Date that are specifically set forth in any of the SEC Reports (as defined below), or (B)
any of the matters set forth in the Disclosure Schedule as of the Effective Date; and (v) any decrease in the market price of
the Common Stock (but excluding herefrom any condition, occurrence, state of facts or event underlying such decrease to the extent
that such condition, occurrence, state of facts or event otherwise would constitute a Material Adverse Effect). 

 

“Material
Change in Ownership” shall mean the occurrence of any one or more of the following: (i) the acquisition by any person,
including any syndicate or group deemed to be a “person” under Section 13(d)(3) of the Exchange Act, of beneficial
ownership, directly or indirectly, through a purchase, merger or other acquisition transaction or series of transactions, of shares
of capital stock or other securities of the Company entitling such person to exercise, upon an event of default or default or
otherwise, fifty percent (50%) or more of the total voting power of all series and classes of capital stock and other securities
of the Company entitled to vote generally in the election of directors, other than any such acquisition by the Company, any Subsidiary
or any employee benefit plan of the Company; (ii) any consolidation or merger of the Company with or into any other person, any
merger of another person into the Company, or any conveyance, transfer, sale, lease or other disposition of all or substantially
all of the properties and assets of the Company to another person, other than (a) any such transaction (x) that does not result
in any reclassification, conversion, exchange or cancellation of outstanding shares of capital stock of the Company and (y) pursuant
to which holders of capital stock of the Company immediately prior to such transaction have the entitlement to exercise, directly
or indirectly, fifty percent (50%) or more of the total voting power of all shares of capital stock of the Company entitled to
vote generally in the election of directors of the continuing or surviving person immediately after such transaction or (b) any
merger which is effected solely to change the jurisdiction of incorporation of the Company and results in a reclassification,
conversion or exchange of outstanding shares of Common Stock solely into shares of common stock of the surviving entity; (iii)
during any consecutive two (2)-year period, individuals who at the beginning of that two-year period constituted the Board of
Directors (together with any new directors whose election to the Board of Directors, or whose nomination for election by the stockholders
of the Company, was approved by a vote of a majority of the directors then still in office who were either directors at the beginning
of such period or whose elections or nominations for election were previously so approved) cease for any reason to constitute
a majority of the Board of Directors then in office; or (iv) the Company is liquidated or dissolved or a resolution is passed
by the Company’s stockholders approving a plan of liquidation or dissolution of the Company. Beneficial ownership shall
be determined in accordance with Rule 13d-3 promulgated by the Commission under the Exchange Act. The term “person”
shall include any syndicate or group which would be deemed to be a “person” under Section 13(d)(3) of the Exchange
Act. 

 

    	 	4	 

     

    

 

“Maximum
Commitment Amount” shall mean the lower of (i) 200,000,000 shares of Common Stock, and (ii) Five Million Dollars of
Common Stock ($5,000,000). 

 

“Maximum
Put Amount” shall mean, with respect to any Put, the lower of (a) up to $200,000 of shares of Common Stock, and (b)
200% multiplied by the average of the Daily Trading Volume for the ten (10) Trading Days immediately preceding the Put Date. 

 

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

 

“Principal
Market” shall mean the Nasdaq Global Select Market, the Nasdaq Global Market, the Nasdaq Capital Market, the NYSE Euronext,
the New York Stock Exchange, the OTCQX or other trading exchange or market (or any successor to any of the foregoing), whichever
is at the time the principal trading exchange or market for the Common Stock. 

 

“Purchase
Price” shall mean, with respect to any Put, ninety percent (90%) multiplied by the lowest VWAP during the Valuation
Period or as otherwise provided in Section 2.4. 

 

“Put”
shall mean the right of the Company to require the Investor to purchase shares of Common Stock, subject to the terms and conditions
of this Agreement. 

 

“Put
Amount Requested” shall mean the dollar amount requested by the Company in a Put Notice delivered pursuant to Section
2.2, up to the Maximum Put Amount requested.

 

“Put
Date” shall mean any Trading Day during the Commitment Period that a Put Notice is deemed delivered pursuant to Section
2.2. 

 

“Put
Notice” shall mean a written notice, substantially in the form of Exhibit A hereto, to Investor setting forth
the Investment Amount with respect to which the Company intends to require Investor to purchase shares of Common Stock pursuant
to the terms of this Agreement. 

 

“Put
Shares” shall mean all shares of Common Stock issued or issuable pursuant to a Put that has been exercised or may be
exercised in accordance with the terms and conditions of this Agreement. 

 

“Registrable
Securities” shall mean the (a) Put Shares and (b) any securities issued or issuable with respect to any of the foregoing
by way of exchange, stock dividend or stock split or in connection with a combination of shares, recapitalization, merger, consolidation
or other reorganization or otherwise. 

 

“Registration
Rights Agreement” shall mean that certain Registration Rights Agreement, dated of the date hereof, between the Company
and the Investor, in the form of Exhibit D
attached hereto.

 

“Registration
Statement” shall mean a registration
statement on Form S-1 that the Company is obligated to file pursuant to the Registration Rights Agreement, registering for resale
the Registrable Securities.

 

    	 	5	 

     

    

 

“Securities
Act” shall mean the Securities Act of 1933, as amended. 

 

“Shares”
shall mean the shares of Common Stock issuable by the Company to the Investor pursuant to this Agreement. 

 

“Short
Sales” means all “short sales” as defined in Rule 200 of Regulation SHO under the Exchange Act. 

 

“Subsidiary”
shall mean any corporation or other entity of which at least a majority of the securities or other ownership interest having ordinary
voting power (absolutely or contingently) for the election of directors or other persons performing similar functions are at the
time owned directly or indirectly by the Company and/or any of its other Subsidiaries. 

 

“Trading
Day” shall mean a day on which the Principal Market shall be open for business. 

 

“Transaction
Documents” shall mean this Agreement, the Registration Rights Agreement, the Exhibits hereto and the other documents
and instruments deliverable pursuant hereto. 

 

“Transfer
Agent” shall mean the transfer agent for the Common Stock (and to any substitute or replacement transfer agent for the
Common Stock upon the Company’s appointment of any such substitute or replacement transfer agent). 

 

“Valuation
Period” shall mean the period of five (5) Trading Days immediately preceding the Put Date associated with the applicable
Put Notice during which the Purchase Price of the Common Stock is valued.

 

“VWAP”
shall mean the daily volume weighted average price (based on a Trading Day from 9:30 a.m. to 4:00 p.m. (New York time)) of the
Company on the Principal Market as reported by Bloomberg Financial L.P. using the HP function. 

 

ARTICLE
II 

PURCHASE
AND SALE OF COMMON STOCK 

 

Section
2.1Purchase and Sale of Stock. Upon the terms and subject to the conditions of this Agreement, during the
Commitment Period, (including, without limitation, the provisions of Article
VI), the Company in its discretion may issue and sell to the Investor, and the Investor shall purchase from the
Company, the lower of (i) 200,000,000 shares of duly authorized, validly issued,
fully paid and nonassessable shares of Common Stock, and (ii) up to $5,000,000 of duly authorized, validly issued, fully paid
and nonassessable shares of Common Stock (the “Maximum Commitment Amount”), by the delivery to the
Investor of Put Notices as provided in Section 2.2 hereof. In consideration of and in express reliance upon the
representations, warranties and covenants contained in, and upon the terms and subject to the conditions of, this
Agreement, during the Commitment Period the Company shall issue and sell to the Investor, and the Investor shall purchase
from the Company, the Shares in respect of each Put. The issuance and sale of Shares to the Investor pursuant to any Put
shall occur on the applicable Closing Date provided that all of the conditions precedent thereto set forth in
Article VI theretofore shall have been fulfilled on or prior to such Closing Date.

 

    	 	6	 

     

    

 

Section
2.2Put Notice. From time to time during the Commitment Period, the Company may, in its sole discretion, no later than
9:30 a.m. (New York City time) on the first (1st) Trading Day of the Valuation Period, provide to the Investor a Put
Notice, substantially in the form attached hereto as Exhibit A (the “Put Notice”), which Put
Notice shall become effective at 9:30 a.m. (New York City time) on the first (1st) Trading Day of the Valuation Period
specified in the Put Notice; provided, however, that if the Company delivers the Put Notice to the Investor
later than 9:30 a.m. (New York City time) on a Trading Day, then the first (1st) Trading Day of such Valuation Period
shall not be the Trading Day on which the Investor received such Put Notice, but rather shall be the immediately following Trading
Day (unless a subsequent Trading Day is therein specified). The date on which the Company delivers any Put Notice in accordance
with this Section 2.2 hereinafter shall be referred to as a “Put Date”. The Put Notice shall specify the Put
Amount Requested (which shall not exceed the Maximum Put Amount requested), and designate the first (1st) and last
Trading Day of the Valuation Period. Upon the terms and subject to the conditions of this Agreement, the Investor is obligated
to accept each Put Notice prepared and delivered in accordance with the provisions of this Agreement and shall purchase from the
Company the Shares subject to such Put Notice at the applicable Purchase Price on the applicable Closing Date. Anything to the
contrary in this Agreement notwithstanding, the parties hereto acknowledge and agree that the Investor shall not be required to
purchase, and shall not purchase, more than the Maximum Put Amount requested pursuant to any single Put Notice. 

 

Section
2.3Limitation of Puts. The Company shall not make any Put until at least one (1) Trading Day shall have elapsed from
the settlement and Closing of the prior Put in accordance with Section 2.7 below. At least 24 hours shall elapsed between the
completion of the settlement of one Put in accordance with Section 2.7 below and the commencement of a Valuation Period for any
other Put during the Commitment Period. Each Put automatically shall expire immediately following the completion of the settlement
thereof in accordance with Section 2.7 below.

 

Section
2.4Reduction of Commitment. On each Closing Date, the Investor’s Maximum Commitment Amount under this Agreement
automatically shall be reduced by the aggregate Purchase Price from the previous Put on a dollar-for-dollar basis, by the total
number of shares of Common Stock issued by the Company on such Closing Date or in connection therewith.

 

Section
2.5 Maximum Put Amount. The maximum number of shares of Common Stock that the Investor shall be required to purchase
for any Put shall be equal to the lesser of (i) 200% of the average Daily Trading Volume of the Common Stock in the ten (10) Trading
Days immediately preceding the Put Notice, and (ii) such number of shares as shall have an aggregate value of $200,000, based
on the Purchase Price.

 

Section
2.6True-Up Shares. The Investor shall be entitled to additional shares of Common Stock (“True-Up Shares”),
if during the five (5) trading days after the date of the Put Notice (the “True-Up Calculation Period”), the
lowest VWAP on any Trading Day shall be less than the Purchase Price during the relevant Valuation Period. The amount of shares
the Investor shall be entitled to receive shall be equal to:

 

(A*B)/C-A
= True Up Shares, where

 

A
= Initial Put shares

 

B
= The Purchase Price during the Valuation Period for the relevant Put

 

C
= The Purchase Price during the True-Up Calculation Period for the relevant Put

 

    	 	7	 

     

    

 

Section
2.7Settlement. The payment for, against simultaneous delivery of, Shares in respect of each Put shall be settled
not later than the Trading Day immediately following the last Trading Day of each Valuation Period, provided that the
delivery date for the True-Up Shares shall be the Business Day immediately following the expiration of the True-Up
Calculation Period (the “True-Up Closing Date”). On each Closing Date, the Company shall, or shall cause
its transfer agent to, electronically transfer the Shares purchased by the Investor by crediting the Investor’s or its
designees’ account (provided the Investor shall have given the Company written notice of such designee prior to the
Closing Date) at DTC through its Deposit/Withdrawal at Custodian (DWAC) system, which Shares shall be freely tradable and
transferable and without restriction on resale pursuant to the Registration Statement, against simultaneous payment therefor
to the Company’s designated account by wire transfer of immediately available funds; provided that if the
Shares are received by the Investor later than 3:00 p.m., New York City time, payment therefor shall be made with next day
funds. As set forth in Section 2.8, a failure by the Company or its transfer agent (if applicable) to deliver such Shares on
the applicable Closing Date shall result in the payment of liquidated damages by the Company to the
Investor. 

 

Section
2.8Liquidated Damages. If the Company issues a Put Notice and fails to deliver
the Put Shares to the Investor on the applicable Closing Date pursuant to the terms of this Agreement and such failure continues
for three (3) Trading Days, and if on or after such third Trading Day the Investor purchases (in an open market transaction
or otherwise) Common Stock to deliver in satisfaction of a sale by the Investor of Put Shares that the Investor anticipated receiving
from the Company (a “Buy-In”), then the Company shall, within three (3) Trading Days after the Investor’s
request and in the Investor’s discretion, either (i) pay cash to the Investor in an amount equal to the Investor’s
total purchase price (including brokerage commissions and other out-of-pocket expenses, if any) for the shares of Common Stock
so purchased (the “Buy-In Price”), at which point the Company’s obligation to credit Investor’s
balance account with DTC for such shares of Common Stock shall terminate, or (ii) promptly honor its obligation to credit Investor’s
balance account with DTC, as applicable, and pay cash to the Investor in an amount equal to the excess (if any) of the Buy-In
Price over the product of (A) such number of shares of Common Stock, times (B) any trading price of the Common Stock selected
by the Investor in writing as in effect at any time during the period beginning on the applicable Closing Date and ending on the
third Trading Date thereafter. Nothing in this Section 2.8 shall be deemed to impair the
rights of the Investor to compel specific performance by the Company of its obligations under this Agreement.

 

    	 	8	 

     

    

 

Section
2.9Certain Limitations. Notwithstanding anything to the contrary contained in this Agreement, in no event may
the Company issue a Put Notice to the extent that (i) the Put Amount Requested in such Put Notice exceeds the Maximum Put Amount
requested, (ii) the sale of Shares pursuant to such Put Notice would cause the Company to issue or sell or the Investor to acquire
or purchase a number of shares of Common Stock which, when aggregated with shares of Common Stock issued pursuant to all Put Amounts
paid by the Investor pursuant to all prior Put Notices issued under this Agreement, would exceed the Maximum Commitment Amount
or (iii) the sale of Shares pursuant to such Put Notice would cause the Company to sell or the Investor to purchase a number of
shares of Common Stock which, when aggregated with all other shares of Common Stock then beneficially owned (as calculated pursuant
to Section 13(d) of the Exchange Act and Rule 13d-3 promulgated thereunder) by the Investor and its Affiliates, would result in
the beneficial ownership by the Investor or any of its Affiliates of more than 4.99% of the then issued and outstanding shares
of Common Stock (the “Ownership Limitation”). If the Company issues a Put Notice in which the Put Amount Requested
exceeds the Maximum Put Amount requested, such Put Notice shall be void ab initio to the extent the Put Amount
Requested exceeds the Maximum Put Amount requested. If the Company issues a Put Notice that otherwise would require the Investor
to purchase shares of Common Stock which would cause the aggregate purchases of Common Stock by the Investor under this Agreement
to exceed the Maximum Commitment Amount, such Put Notice shall be void ab initio to the extent of the amount
by which the dollar value of shares of Common Stock otherwise issuable pursuant to such Put Notice, together with all Put Amounts
paid by the Investor pursuant to all prior Put Notices issued under this Agreement, would exceed the Maximum Commitment Amount.
If the Company issues a Put Notice that otherwise would require the Investor to purchase shares of Common Stock which would cause
the aggregate number of shares of Common Stock then beneficially owned (as calculated pursuant to Section 13(d) of the Exchange
Act and Rule 13d-3 promulgated thereunder) by the Investor and its Affiliates to exceed the Ownership Limitation, such Put Notice
shall be void ab initio to the extent of the amount by which the number of shares of Common Stock otherwise issuable
pursuant to such Put Notice, together with all shares of Common Stock then beneficially owned by the Investor and its Affiliates,
would exceed the Ownership Limitation. 

 

Section
2.10Current Report. As soon as practicable, but in any event not later than 5:30 p.m. (New York time) on the second
(2nd) Trading Day immediately following the Effective Date, the Company shall file with the Commission a current report
on Form 8-K relating to the transactions contemplated by, and describing the material terms and conditions of, this Agreement
(the “Current Report”), and (ii) a final prospectus pursuant to Rule 424(b) under the Securities Act specifically
relating to the transactions contemplated by, and describing the material terms and conditions of, this Agreement, containing
information previously omitted at the time of effectiveness of the Registration Statement in reliance on Rule 430B under the Securities
Act, and disclosing all information relating to the transactions contemplated hereby required to be disclosed in the Registration
Statement and the prospectus, including, without limitation, information required to be disclosed in the section captioned “Plan
of Distribution” in the prospectus.” The Current Report shall include a copy of this Agreement as an exhibit and shall
be incorporated by reference in the Registration Statement. The Company heretofore has, provided (or will provide to) the Investor
a reasonable opportunity to comment on a draft of such Current Report and Registration Statement and has given (or will give)
due consideration to such comments. 

 

ARTICLE
III 

REPRESENTATIONS
AND WARRANTIES OF INVESTOR 

 

Investor
represents and warrants to the Company that: 

 

Section
3.1 Organization and Standing of the Investor. The Investor is a limited liability company duly organized, validly
existing and in good standing under the laws of the State of Connecticut. 

 

    	 	9	 

     

    

 

Section
3.2Authorization and Power. The Investor has the requisite limited liability company power and authority to enter into
and perform its obligations under this Agreement and to purchase the Put Shares in accordance with the terms hereof. The execution,
delivery and performance of this Agreement by the Investor and the consummation by it of the transactions contemplated hereby
have been duly authorized by all necessary limited liability company action, and no further consent or authorization of the Investor,
or its members is required. This Agreement has been duly executed and delivered by the Investor. This Agreement constitutes a
valid and binding obligation of the Investor enforceable against it in accordance with its terms, except as such enforceability
may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, liquidation, conservatorship, receivership, or
similar laws relating to, or affecting generally the enforcement of, creditor’s rights and remedies or by other equitable
principles of general application. 

 

Section
3.3 Information. The Investor has sought such accounting, legal and tax advice as it has considered necessary to make
an informed investment decision with respect to its acquisition of the Shares. The Investor understands that it (and not the Company)
shall be responsible for its own tax liabilities that may arise as a result of this investment or the transactions contemplated
by this Agreement. The Investor is aware of all of its obligations under U.S. federal and applicable state securities laws and
all rules and regulations promulgated thereunder in connection with this Agreement and the transactions contemplated hereby and
the purchase and sale of the Shares. 

 

ARTICLE
IV 

REPRESENTATIONS
AND WARRANTIES OF THE COMPANY

 

Except
as set forth in the disclosure schedule delivered by the Company to the Investor (which is hereby incorporated by reference in,
and constitutes an integral part of, this Agreement) (the “Disclosure Schedule”), the Company hereby makes
the following representations and warranties to the Investor: 

 

Section
4.1Subsidiaries. All of the direct and indirect subsidiaries of the Company are set forth in the SEC Reports (the “Subsidiaries”).
Except as set forth in the SEC Reports, the Company owns, directly or indirectly, all of the capital stock or other equity interests
of each Subsidiary free and clear of any Liens, and all of the issued and outstanding shares of capital stock of each Subsidiary
are validly issued and are fully paid, non-assessable and free of preemptive and similar rights to subscribe for or purchase securities.

 

Section
4.2Organization and Qualification. The Company and each of the Subsidiaries is an entity duly incorporated or otherwise
organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation or organization, with
the requisite power and authority to own and use its properties and assets and to carry on its business as currently conducted.
Neither the Company nor any Subsidiary is in violation nor default of any of the provisions of its respective certificate or articles
of incorporation, bylaws or other organizational or charter documents. Each of the Company and the Subsidiaries is duly qualified
to conduct business and is in good standing as a foreign corporation or other entity in each jurisdiction in which the nature
of the business conducted or property owned by it makes such qualification necessary, except where the failure to be so qualified
or in good standing, as the case may be, could not have or reasonably be expected to result in: (i) a Material Adverse Effect
on the legality, validity or enforceability of this Agreement or any of the other Transaction
Documents; (ii) a material adverse effect on the results of operations, assets, business, prospects or condition (financial
or otherwise) of the Company and the Subsidiaries, taken as a whole; or (iii) a Material Adverse Effect on the Company’s
ability to perform in any material respect on a timely basis its obligations under this Agreement or any of the other
Transaction Documents and no proceeding, action, or the like has been instituted in any such jurisdiction revoking, limiting
or curtailing or seeking to revoke, limit or curtail such power and authority or qualification.

 

    	 	10	 

     

    

 

Section
4.3Authorization; Enforcement. The Company has the requisite corporate power and authority to enter into and to consummate
the transactions contemplated by this Agreement and each of the other Transaction Documents and otherwise to carry out its obligations
hereunder and thereunder. The execution and delivery of this Agreement and each of the other Transaction Documents by the Company
and the consummation by it of the transactions contemplated hereby and thereby have been duly authorized by all necessary action
on the part of the Company and no further action is required by the Company, the Board of Directors or the Company’s stockholders
in connection herewith or therewith other than in connection with the Required Approvals (as defined below). This Agreement and
each other Transaction Document to which it is a party has been (or upon delivery will have been) duly executed by the Company
and, when delivered in accordance with the terms hereof and thereof, will constitute the valid and binding obligation of the Company
enforceable against the Company in accordance with its terms, except: (i) as limited by general equitable principles and applicable
bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors’
rights generally, (ii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable
remedies and (iii) insofar as indemnification and contribution provisions may be limited by applicable law.

 

Section
4.4No Conflicts. The execution, delivery and performance by the Company of this Agreement and the other Transaction
Documents to which it is a party, the issuance and sale of the Shares and the consummation by it of the transactions contemplated
hereby and thereby do not and will not: (i) conflict with or violate any provision of the Company’s or any Subsidiary’s
certificate or articles of incorporation, bylaws or other organizational or charter documents, (ii) conflict with, or constitute
a default (or an event that with notice or lapse of time or both would become a default) under, result in the creation of any
Lien upon any of the properties or assets of the Company or any Subsidiary, or give to others any rights of termination, amendment,
acceleration or cancellation (with or without notice, lapse of time or both) of, any agreement, credit facility, debt or other
instrument (evidencing a Company or Subsidiary debt or otherwise) or other understanding to which the Company or any Subsidiary
is a party or by which any property or asset of the Company or any Subsidiary is bound or affected, or (iii) subject to the Required
Approvals, conflict with or result in a violation of any law, rule, regulation, order, judgment, injunction, decree or other restriction
of any court or governmental authority to which the Company or a Subsidiary is subject (including federal and state securities
laws and regulations), or by which any property or asset of the Company or a Subsidiary is bound or affected; except in the case
of each of clauses (ii) and (iii), such as could not have or reasonably be expected to result in a Material Adverse Effect.

 

    	 	11	 

     

    

 

Section
4.5.Filings, Consents and Approvals. The Company is not required to obtain any consent, waiver, authorization or order
of, give any notice to, or make any filing or registration with, any court or other federal, state, local or other governmental
authority or other Person in connection with the execution, delivery and performance by the Company of the Transaction Documents,
other than: (i) the filings required pursuant to this Agreement; (ii) the notice and/or application(s) to each applicable Trading
Market for the issuance and sale of the Shares for trading thereon in the time and manner required thereby; (iii) the filing of
Form D with the Commission and such filings as are required to be made under applicable state securities laws; and (iv) the Consent
(collectively, the “Required Approvals”).

 

Section
4.6Issuance of the Shares. The Shares are duly authorized and, when issued and paid for in accordance with the applicable
Transaction Documents, will be duly and validly issued, fully paid and nonassessable, free and clear of all Liens imposed by the
Company other than restrictions on transfer provided for in the Transaction Documents. The Company has reserved from its duly
authorized capital stock a number of shares of Common Stock for issuance of the Shares.

 

Section
4.7Capitalization. The capitalization of the Company is as set forth on Schedule 4.7, which Schedule 4.7
shall also include the number of shares of Common Stock owned beneficially, and of record, by Affiliates of the Company as
of the date hereof. The Company has not issued any capital stock since its most recently filed periodic report under the Exchange
Act, other than pursuant to the exercise of employee stock options under the Company’s stock option plans, the issuance
of shares of Common Stock to employees pursuant to the Company’s employee stock purchase plans and pursuant to the conversion
and/or exercise of Common Stock Equivalents outstanding as of the date of the most recently filed periodic report under the Exchange
Act. No Person has any right of first refusal, preemptive right, right of participation, or any similar right to participate in
the transactions contemplated by the Transaction Documents. Except as a result of the purchase and sale of the Shares, there are
no outstanding options, warrants, scrip rights to subscribe to, calls or commitments of any character whatsoever relating to,
or securities, rights or obligations convertible into or exercisable or exchangeable for, or giving any Person any right to subscribe
for or acquire any shares of Common Stock, or contracts, commitments, understandings or arrangements by which the Company or any
Subsidiary is or may become bound to issue additional shares of Common Stock or Common Stock Equivalents. The issuance and sale
of the Shares will not obligate the Company to issue shares of Common Stock or other securities to any Person (other than the
Investor) and will not result in a right of any holder of Company securities to adjust the exercise, conversion, exchange or reset
price under any of such securities. All of the outstanding shares of capital stock of the Company are duly authorized, validly
issued, fully paid and nonassessable, have been issued in compliance with all federal and state securities laws, and none of such
outstanding shares was issued in violation of any preemptive rights or similar rights to subscribe for or purchase securities.
No further approval or authorization of any stockholder, the Board of Directors or others is required for the issuance and sale
of the Shares. There are no stockholders agreements, voting agreements or other similar agreements with respect to the Company’s
capital stock to which the Company is a party or, to the knowledge of the Company, between or among any of the Company’s
stockholders.

 

    	 	12	 

     

    

 

Section
4.8SEC Reports; Financial Statements. The Company has filed all reports, schedules, forms, statements and other documents
required to be filed by the Company under the Securities Act and the Exchange Act, including pursuant to Section 13(a) or 15(d)
thereof, for the two years preceding the date hereof (or such shorter period as the Company was required by law or regulation
to file such material) (the foregoing materials, including the exhibits thereto and documents incorporated by reference therein,
being collectively referred to herein as the “SEC Reports”) on a timely basis or has received a valid extension
of such time of filing and has filed any such SEC Reports prior to the expiration of any such extension. As of their respective
dates, the SEC Reports complied in all material respects with the requirements of the Securities Act and the Exchange Act, as
applicable, and none of the SEC Reports, when filed, contained any untrue statement of a material fact or omitted to state a material
fact required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances under
which they were made, not misleading. The Company is not currently and has not within the last 12 months an issuer subject to
Rule 144(i) under the Securities Act. The financial statements of the Company included in the SEC Reports comply in all material
respects with applicable accounting requirements and the rules and regulations of the Commission with respect thereto as in effect
at the time of filing. Such financial statements have been prepared in accordance with United States generally accepted accounting
principles applied on a consistent basis during the periods involved (“GAAP”), except as may be otherwise specified
in such financial statements or the notes thereto and except that unaudited financial statements may not contain all footnotes
required by GAAP, and fairly present in all material respects the financial position of the Company and its consolidated Subsidiaries
as of and for the dates thereof and the results of operations and cash flows for the periods then ended, subject, in the case
of unaudited statements, to normal, immaterial, year-end audit adjustments.

 

Section
4.9Material Changes; Undisclosed Events, Liabilities or Developments. Since the date of the latest audited financial
statements included within the SEC Reports, except as specifically disclosed in a subsequent SEC Report filed prior to the date
hereof: (i) there has been no event, occurrence or development that has had or that could reasonably be expected to result in
a Material Adverse Effect, (ii) the Company has not incurred any liabilities (contingent or otherwise) other than (A) trade payables
and accrued expenses incurred in the ordinary course of business consistent with past practice and (B) liabilities not required
to be reflected in the Company’s financial statements pursuant to GAAP or disclosed in filings made with the Commission,
(iii) the Company has not altered its method of accounting, (iv) the Company has not declared or made any dividend or distribution
of cash or other property to its stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of
its capital stock and (v) the Company has not issued any equity securities to any officer, director or Affiliate, except pursuant
to existing Company stock option plans. The Company does not have pending before the Commission any request for confidential treatment
of information. Except for the issuance of the Shares contemplated by this Agreement or as set forth on Schedule 4.9, no
event, liability, fact, circumstance, occurrence or development has occurred or exists or is reasonably expected to occur or exist
with respect to the Company or its Subsidiaries or their respective businesses, properties, operations, assets or financial condition,
that would be required to be disclosed by the Company under applicable securities laws at the time this representation is made
or deemed made that has not been publicly disclosed at least one (1) Trading Day prior to the date that this representation is
made.

 

    	 	13	 

     

    

 

Section
4.10Litigation. There is no action, suit, inquiry, notice of violation, proceeding or investigation pending or, to
the knowledge of the Company, threatened against or affecting the Company, any Subsidiary or any of their respective properties
before or by any court, arbitrator, governmental or administrative agency or regulatory authority (federal, state, county, local
or foreign) (collectively, an “Action”) which (i) adversely affects or challenges the legality, validity or enforceability
of any of the Transaction Documents or the Shares or (ii) could, if there were an unfavorable decision, have or reasonably be
expected to result in a Material Adverse Effect. Neither the Company nor any Subsidiary, nor any director or officer thereof,
is or has been the subject of any Action involving a claim of violation of or liability under federal or state securities laws
or a claim of breach of fiduciary duty. There has not been, and to the knowledge of the Company, there is not pending or contemplated,
any investigation by the Commission involving the Company or any current or former director or officer of the Company. The Commission
has not issued any stop order or other order suspending the effectiveness of any registration statement filed by the Company or
any Subsidiary under the Exchange Act or the Securities Act.

 

Section
4.11Labor Relations. No labor dispute exists or, to the knowledge of the Company, is imminent with respect to any of
the employees of the Company, which could reasonably be expected to result in a Material Adverse Effect. None of the Company’s
or its Subsidiaries’ employees is a member of a union that relates to such employee’s relationship with the Company
or such Subsidiary, and neither the Company nor any of its Subsidiaries is a party to a collective bargaining agreement, and the
Company and its Subsidiaries believe that their relationships with their employees are good. To the knowledge of the Company,
no executive officer of the Company or any Subsidiary, is, or is now expected to be, in violation of any material term of any
employment contract, confidentiality, disclosure or proprietary information agreement or non-competition agreement, or any other
contract or agreement or any restrictive covenant in favor of any third party, and the continued employment of each such executive
officer does not subject the Company or any of its Subsidiaries to any liability with respect to any of the foregoing matters.
The Company and its Subsidiaries are in compliance with all U.S. federal, state, local and foreign laws and regulations relating
to employment and employment practices, terms and conditions of employment and wages and hours, except where the failure to be
in compliance could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

 

Section
4.12Compliance. Neither the Company nor any Subsidiary: (i) is in default under or in violation of (and no event has
occurred that has not been waived that, with notice or lapse of time or both, would result in a default by the Company or any
Subsidiary under), nor has the Company or any Subsidiary received notice of a claim that it is in default under or that it is
in violation of, any indenture, loan or credit agreement or any other agreement or instrument to which it is a party or by which
it or any of its properties is bound (whether or not such default or violation has been waived), (ii) is in violation of any judgment,
decree or order of any court, arbitrator or other governmental authority or (iii) is or has been in violation of any statute,
rule, ordinance or regulation of any governmental authority, including without limitation all foreign, federal, state and local
laws relating to taxes, environmental protection, occupational health and safety, product quality and safety and employment and
labor matters, except in each case as could not have or reasonably be expected to result in a Material Adverse Effect.

 

Section
4.13Regulatory Permits. The Company and the Subsidiaries possess all certificates, authorizations and permits issued
by the appropriate federal, state, local or foreign regulatory authorities necessary to conduct their respective businesses as
described in the SEC Reports, except where the failure to possess such permits could not reasonably be expected to result in a
Material Adverse Effect (“Material Permits”), and neither the Company nor any Subsidiary has received any notice
of proceedings relating to the revocation or modification of any Material Permit.

 

    	 	14	 

     

    

 

Section
4.14Title to Assets. The Company and the Subsidiaries have good and marketable title in fee simple to all real property
owned by them and good and marketable title in all personal property owned by them that is material to the business of the Company
and the Subsidiaries, in each case free and clear of all Liens, except for (i) Liens as do not materially affect the value of
such property and do not materially interfere with the use made and proposed to be made of such property by the Company and the
Subsidiaries and (ii) Liens for the payment of federal, state or other taxes, for which appropriate reserves have been made therefor
in accordance with GAAP and, the payment of which is neither delinquent nor subject to penalties. Any real property and facilities
held under lease by the Company and the Subsidiaries are held by them under valid, subsisting and enforceable leases with which
the Company and the Subsidiaries are in compliance.

 

Section
4.15Intellectual Property. The Company and the Subsidiaries have, or have rights to use, all patents, patent applications,
trademarks, trademark applications, service marks, trade names, trade secrets, inventions, copyrights, licenses and other intellectual
property rights and similar rights as described in the SEC Reports as necessary or required for use in connection with their respective
businesses and which the failure to so have could have a Material Adverse Effect (collectively, the “Intellectual Property
Rights”). None of, and neither the Company nor any Subsidiary has received a notice (written or otherwise) that any
of, the Intellectual Property Rights has expired, terminated or been abandoned, or is expected to expire or terminate or be abandoned,
within two (2) years from the date of this Agreement. Neither the Company nor any Subsidiary has received, since the date of the
latest audited financial statements included within the SEC Reports, a written notice of a claim or otherwise has any knowledge
that the Intellectual Property Rights violate or infringe upon the rights of any Person, except as could not have or reasonably
be expected to not have a Material Adverse Effect. To the knowledge of the Company, all such Intellectual Property Rights are
enforceable and there is no existing infringement by another Person of any of the Intellectual Property Rights. The Company and
its Subsidiaries have taken reasonable security measures to protect the secrecy, confidentiality and value of all of their intellectual
properties, except where failure to do so could not, individually or in the aggregate, reasonably be expected to have a Material
Adverse Effect.

 

Section
4.16Insurance. The Company and the Subsidiaries are insured by insurers of recognized financial responsibility against
such losses and risks and in such amounts as are prudent and customary in the businesses in which the Company and the Subsidiaries
are engaged, including, but not limited to, directors and officers insurance coverage at least equal to the aggregate Subscription
Amount. Neither the Company nor any Subsidiary has any reason to believe that it will not be able to renew its existing insurance
coverage as and when such coverage expires or to obtain similar coverage from similar insurers as may be necessary to continue
its business without a significant increase in cost.

 

    	 	15	 

     

    

 

Section
4.17Transactions with Affiliates and Employees. Except as set forth in the SEC Reports, none of the officers or directors
of the Company or any Subsidiary and, to the knowledge of the Company, none of the employees of the Company or any Subsidiary
is presently a party to any transaction with the Company or any Subsidiary (other than for services as employees, officers and
directors), including any contract, agreement or other arrangement providing for the furnishing of services to or by, providing
for rental of real or personal property to or from providing for the borrowing of money from or lending of money to, or otherwise
requiring payments to or from any officer, director or such employee or, to the knowledge of the Company, any entity in which
any officer, director, or any such employee has a substantial interest or is an officer, director, trustee, stockholder, member
or partner, in each case in excess of $120,000 other than for: (i) payment of salary or consulting fees for services rendered,
(ii) reimbursement for expenses incurred on behalf of the Company and (iii) other employee benefits, including stock option agreements
under any stock option plan of the Company.

 

Section
4.18Sarbanes-Oxley; Internal Accounting Controls. The Company and the Subsidiaries are in compliance with any and all
applicable requirements of the Sarbanes-Oxley Act of 2002 that are effective as of the date hereof, and any and all applicable
rules and regulations promulgated by the Commission thereunder that are effective as of the date hereof and as of any date of
Closing. The Company and the Subsidiaries maintain a system of internal accounting controls sufficient to provide reasonable assurance
that: (i) transactions are executed in accordance with management’s general or specific authorizations, (ii) transactions
are recorded as necessary to permit preparation of financial statements in conformity with GAAP and to maintain asset accountability,
(iii) access to assets is permitted only in accordance with management’s general or specific authorization, and (iv) the
recorded accountability for assets is compared with the existing assets at reasonable intervals and appropriate action is taken
with respect to any differences. The Company and the Subsidiaries have established disclosure controls and procedures (as defined
in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the Company and the Subsidiaries and designed such disclosure controls and
procedures to ensure that information required to be disclosed by the Company in the reports it files or submits under the Exchange
Act is recorded, processed, summarized and reported, within the time periods specified in the Commission’s rules and forms.
The Company’s certifying officers have evaluated the effectiveness of the disclosure controls and procedures of the Company
and the Subsidiaries as of the end of the period covered by the most recently filed periodic report under the Exchange Act (such
date, the “Evaluation Date”). The Company presented in its most recently filed periodic report under the Exchange
Act the conclusions of the certifying officers about the effectiveness of the disclosure controls and procedures based on their
evaluations as of the Evaluation Date. Since the Evaluation Date, there have been no changes in the internal control over financial
reporting (as such term is defined in the Exchange Act) that have materially affected, or is reasonably likely to materially affect,
the internal control over financial reporting of the Company and its Subsidiaries.

 

Section
4.19Certain Fees. Other than as set forth in this Agreement, no brokerage or finder’s fees or commissions are
or will be payable by the Company or any Subsidiaries to any broker, financial advisor or consultant, finder, placement agent,
investment banker, bank or other Person with respect to the transactions contemplated by the Transaction Documents. The Investor
shall have no obligation with respect to any fees or with respect to any claims made by or on behalf of other Persons for fees
of a type contemplated in this Section that may be due in connection with the transactions contemplated by the Transaction Documents.

 

Section
4.20Private Placement. No registration under the Securities Act is required for the offer and sale of the Shares by
the Company to the Investor as contemplated hereby. The issuance and sale of the Shares hereunder does not contravene the rules
and regulations of the Principal Market.

 

    	 	16	 

     

    

 

Section
4.21Investment Company. The Company is not, and is not an Affiliate of, and immediately after receipt of payment for
the Shares, will not be or be an Affiliate of, an “investment company” within the meaning of the Investment Company
Act of 1940, as amended. The Company shall conduct its business in a manner so that it will not become an “investment company”
subject to registration under the Investment Company Act of 1940, as amended.

 

Section
4.22 Registration Rights. Other than the Investor, no Person has any right to cause the Company to effect the registration
under the Securities Act of any securities of the Company or any Subsidiaries.

 

Section
4.23Listing and Maintenance Requirements. The Common Stock is registered pursuant to Section 12(b) or 12(g) of the
Exchange Act, and the Company has taken no action designed to, or which to its knowledge is likely to have the effect of, terminating
the registration of the Common Stock under the Exchange Act nor has the Company received any notification that the Commission
is contemplating terminating such registration. The Company has not, in the 12 months preceding the date hereof, received notice
from any Principal Market on which the Common Stock is or has been listed or quoted to the effect that the Company is not in compliance
with the listing or maintenance requirements of such Principal Market. The Company is, and has no reason to believe that it will
not in the foreseeable future continue to be, in compliance with all such listing and maintenance requirements.

 

Section
4.24Application of Takeover Protections. The Company and the Board of Directors have taken all necessary action, if
any, in order to render inapplicable any control share acquisition, business combination, poison pill (including any distribution
under a rights agreement) or other similar anti-takeover provision under the Company’s certificate of incorporation (or
similar charter documents) or the laws of its state of incorporation that is or could become applicable to the Investor as a result
of the Investor and the Company fulfilling their obligations or exercising their rights under the Transaction Documents, including,
without limitation, as a result of the Company’s issuance of the Shares and the Investor’s ownership of the Shares.

 

Section
4.25Disclosure. Except with respect to the material terms and conditions of the transactions contemplated by the Transaction
Documents, the Company confirms that neither it nor any other Person acting on its behalf has provided the Investor or its agents
or counsel with any information that it believes constitutes or might constitute material, non-public information. The Company
understands and confirms that the Investor will rely on the foregoing representation in effecting transactions in securities of
the Company. All of the disclosure furnished by or on behalf of the Company to the Investor regarding the Company and its Subsidiaries,
their respective businesses and the transactions contemplated hereby, including the Disclosure Schedules to this Agreement, is
true and correct and does not contain any untrue statement of a material fact or omit to state any material fact necessary in
order to make the statements made therein, in light of the circumstances under which they were made, not misleading. The press
releases disseminated by the Company during the twelve months preceding the date of this Agreement taken as a whole do not contain
any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary in order to
make the statements therein, in light of the circumstances under which they were made and when made, not misleading. The Company
acknowledges and agrees that the Investor does not make or has not made any representations or warranties with respect to the
transactions contemplated hereby other than those specifically set forth in Article III.

 

    	 	17	 

     

    

 

Section
4.26No Integrated Offering. Neither the Company, nor any of its Affiliates, nor any Person acting on its or their behalf
has, directly or indirectly, made any offers or sales of any security or solicited any offers to buy any security, under circumstances
that would cause this offering of the Shares to be integrated with prior offerings by the Company for purposes of (i) the Securities
Act which would require the registration of any such securities under the Securities Act, or (ii) any applicable shareholder approval
provisions of any Principal Market on which any of the securities of the Company are listed or designated.

 

Section
4.27Solvency. Based on the consolidated financial condition of the Company as of the Closing Date, after giving effect
to the receipt by the Company of the proceeds from the sale of the Shares hereunder: (i) the fair saleable value of the Company’s
assets exceeds the amount that will be required to be paid on or in respect of the Company’s existing debts and other liabilities
(including known contingent liabilities) as they mature; (ii) the Company’s assets do not constitute unreasonably small
capital to carry on its business as now conducted and as proposed to be conducted including its capital needs taking into account
the particular capital requirements of the business conducted by the Company, consolidated and projected capital requirements
and capital availability thereof; and (iii) the current cash flow of the Company, together with the proceeds the Company would
receive, were it to liquidate all of its assets, after taking into account all anticipated uses of the cash, would be sufficient
to pay all amounts on or in respect of its liabilities when such amounts are required to be paid. The Company does not intend
to incur debts beyond its ability to pay such debts as they mature (taking into account the timing and amounts of cash to be payable
on or in respect of its debt). The Company has no knowledge of any facts or circumstances which lead it to believe that it will
file for reorganization or liquidation under the bankruptcy or reorganization laws of any jurisdiction within one year from the
Closing Date. The SEC Reports set forth as of the date hereof all outstanding secured and unsecured Indebtedness of the Company
or any Subsidiary, or for which the Company or any Subsidiary has commitments. For the purposes of this Agreement, “Indebtedness”
means (x) any liabilities for borrowed money or amounts owed in excess of $50,000 (other than trade accounts payable incurred
in the ordinary course of business), (y) all guaranties, endorsements and other contingent obligations in respect of indebtedness
of others, whether or not the same are or should be reflected in the Company’s consolidated balance sheet (or the notes
thereto), except guaranties by endorsement of negotiable instruments for deposit or collection or similar transactions in the
ordinary course of business; and (z) the present value of any lease payments in excess of $50,000 due under leases required to
be capitalized in accordance with GAAP. Neither the Company nor any Subsidiary is in default with respect to any Indebtedness.

 

    	 	18	 

     

    

 

Section
4.28Tax Status. Except for matters that would not, individually or in the aggregate, have or reasonably be expected
to result in a Material Adverse Effect, the Company and its Subsidiaries each (i) has made or filed all United States federal,
state and local income and all foreign income and franchise tax returns, reports and declarations required by any jurisdiction
to which it is subject, (ii) has paid all taxes and other governmental assessments and charges that are material in amount, shown
or determined to be due on such returns, reports and declarations and (iii) has set aside on its books provision reasonably adequate
for the payment of all material taxes for periods subsequent to the periods to which such returns, reports or declarations apply.
There are no unpaid taxes in any material amount claimed to be due by the taxing authority of any jurisdiction, and the officers
of the Company or of any Subsidiary know of no basis for any such claim.

 

Section
4.29No General Solicitation. Neither the Company nor any person acting on behalf of the Company has offered or sold
any of the Shares by any form of general solicitation or general advertising. The Company has offered the Shares for sale only
to the Investor and certain other “accredited investors” within the meaning of Rule 501 under the Securities Act.

 

Section
4.30Foreign Corrupt Practices. Neither the Company nor any Subsidiary, nor to the knowledge of the Company or any Subsidiary,
any agent or other person acting on behalf of the Company or any Subsidiary, has: (i) directly or indirectly, used any funds for
unlawful contributions, gifts, entertainment or other unlawful expenses related to foreign or domestic political activity; (ii)
made any unlawful payment to foreign or domestic government officials or employees or to any foreign or domestic political parties
or campaigns from corporate funds; (iii) failed to disclose fully any contribution made by the Company or any Subsidiary (or made
by any person acting on its behalf of which the Company is aware) which is in violation of law or (iv) violated in any material
respect any provision of FCPA.

 

Section
4.31Accountants. The Company’s accounting firm is Sadler, Gibb & Associates, LLC. To the knowledge and belief
of the Company, such accounting firm is a registered public accounting firm as required by the Exchange Act.

 

Section
4.32No Disagreements with Accountants and Lawyers. There are no disagreements of any kind presently existing, or reasonably
anticipated by the Company to arise, between the Company and the accountants and lawyers presently employed by the Company and
the Company is current with respect to any fees owed to its accountants and lawyers which could affect the Company’s ability
to perform any of its obligations under any of the Transaction Documents.

 

Section
4.33Acknowledgment Regarding Investor’s Purchase of Shares. The Company acknowledges and agrees that the Investor
is acting solely in the capacity of an arm’s length investor with respect to the Transaction Documents and the transactions
contemplated thereby. The Company further acknowledges that no Investor is acting as a financial advisor or fiduciary of the Company
(or in any similar capacity) with respect to the Transaction Documents and the transactions contemplated thereby and any advice
given by any Investor or any of their respective representatives or agents in connection with the Transaction Documents and the
transactions contemplated thereby is merely incidental to the Investor’s purchase of the Shares. The Company further represents
to each Investor that the Company’s decision to enter into this Agreement and the other Transaction Documents has been based
solely on the independent evaluation of the transactions contemplated hereby by the Company and its representatives.

 

    	 	19	 

     

    

 

Section
4.34Regulation M Compliance.  The Company has not, and to its knowledge no one acting on its behalf has, (i) taken,
directly or indirectly, any action designed to cause or to result in the stabilization or manipulation of the price of any security
of the Company to facilitate the sale or resale of any of the Shares, (ii) sold, bid for, purchased, or paid any compensation
for soliciting purchases of, any of the Shares, or (iii) paid or agreed to pay to any Person any compensation for soliciting another
to purchase any other securities of the Company, other than, in the case of clauses (ii) and (iii), compensation paid to the Company’s
financial advisor in connection with the placement of the Put Share.

 

Section
4.35Stock Option Plans. Each stock option granted by the Company under the Company’s stock option plan was granted
(i) in accordance with the terms of the Company’s stock option plan and (ii) with an exercise price at least equal to the
fair market value of the Common Stock on the date such stock option would be considered granted under GAAP and applicable law.
No stock option granted under the Company’s stock option plan has been backdated. The Company has not knowingly granted,
and there is no and has been no Company policy or practice to knowingly grant, stock options prior to, or otherwise knowingly
coordinate the grant of stock options with, the release or other public announcement of material information regarding the Company
or its Subsidiaries or their financial results or prospects.

 

Section
4.36Office of Foreign Assets Control. Neither the Company nor any Subsidiary nor, to the Company’s knowledge,
any director, officer, agent, employee or affiliate of the Company or any Subsidiary is currently subject to any U.S. sanctions
administered by the Office of Foreign Assets Control of the U.S. Treasury Department (“OFAC”).

 

Section
4.37U.S. Real Property Holding Corporation. The Company is not and has never been a U.S. real property holding corporation
within the meaning of Section 897 of the Internal Revenue Code of 1986, as amended, and the Company shall so certify upon Investor’s
request.

 

Section
4.38Bank Holding Company Act. Neither the Company nor any of its Subsidiaries or Affiliates is subject to the Bank
Holding Company Act of 1956, as amended (the “BHCA”) or to regulation by the Board of Governors of the Federal
Reserve System (the “Federal Reserve”). Neither the Company nor any of its Subsidiaries or Affiliates owns
or controls, directly or indirectly, five percent (5%) or more of the outstanding shares of any class of voting securities or
twenty-five percent or more of the total equity of a bank or any entity that is subject to the BHCA and to regulation by the Federal
Reserve. Neither the Company nor any of its Subsidiaries or Affiliates exercises a controlling influence over the management or
policies of a bank or any entity that is subject to the BHCA and to regulation by the Federal Reserve.

 

Section
4.39Money Laundering. The operations of the Company and its Subsidiaries are and have been conducted at all times in
compliance with applicable financial record-keeping and reporting requirements of the Currency and Foreign Transactions Reporting
Act of 1970, as amended, applicable money laundering statutes and applicable rules and regulations thereunder (collectively, the
“Money Laundering Laws”), and no action, suit or proceeding by or before any court or governmental agency,
authority or body or any arbitrator involving the Company or any Subsidiary with respect to the Money Laundering Laws is pending
or, to the knowledge of the Company or any Subsidiary, threatened.

 

    	 	20	 

     

    

 

Section
4.40Promotional Stock Activities. Neither the Company, its officers, or any affiliates or agents of the Company have
engaged in any stock promotional activity that could give rise to a compliant or inquiry by the Securities and Exchange Commission
alleging (i) a violation of the anti-fraud provisions of the federal securities laws, (ii) violations of the anti-touting provisions,
(iii) improper “gun-jumping”, or (iv) promotion without proper disclosure of compensation.

 

ARTICLE
V 

COVENANTS

 

The
Company covenants with the Investor, and the Investor covenants with the Company, as follows, which covenants of one party are
for the benefit of the other party, during the Commitment Period: 

 

Section
5.1 Securities Compliance. The Company shall notify the Principal Market, as necessary, in accordance with its rules
and regulations, of the transactions contemplated by this Agreement, and shall take all necessary action, undertake all proceedings
and obtain all registrations, permits, consents and approvals for the legal and valid issuance of the Shares to the Investor in
accordance with the terms of this Agreement. 

 

Section
5.2 Registration and Listing. The Company shall take all reasonable actions necessary to cause the Common Stock to
continue to be registered as a class of securities under Sections 12(b) or 12(g) of the Exchange Act, shall comply with its reporting
and filing obligations under the Exchange Act, and shall not take any action or file any document (whether or not permitted by
the Securities Act) to terminate or suspend such registration or to terminate or suspend its reporting and filing obligations
under the Exchange Act or Securities Act, except as permitted herein. The Company shall take all action reasonably necessary to
continue the listing and trading of its Common Stock and the listing of the Shares purchased by Investor hereunder on the Principal
Market (including, without limitation, maintaining sufficient tangible net assets), and shall comply with the Company’s
reporting, filing and other obligations under the bylaws, listed securities maintenance standards and other rules and regulations
of FINRA and the Principal Market. 

 

Section
5.3 Compliance with Laws. 

 

(i)
The Company shall comply, and cause each Subsidiary to comply, (a) with all laws, rules, regulations and orders applicable to
the business and operations of the Company and its Subsidiaries except as would not have a Material Adverse Effect and (b) with
all applicable provisions of the Securities Act, the Exchange Act, the rules and regulations of FINRA and the listing standards
of the Principal Market except as would not have a Material Adverse Effect. Without limiting the generality of the foregoing,
neither the Company nor any of its officers, directors or affiliates has taken or will take, directly or indirectly, any action
designed or intended to stabilize or manipulate the price of any security of the Company, or which caused or resulted in, or which
would in the future reasonably be expected to cause or result in, stabilization or manipulation of the price of any security of
the Company. 

 

    	 	21	 

     

    

 

(ii)
The Investor shall comply with all laws, rules, regulations and orders applicable to the performance by it of its obligations
under this Agreement and its investment in the shares of Common Stock issued to the Investor pursuant to this Agreement, except
as would not, individually or in the aggregate, prohibit or otherwise interfere with the ability of the Investor to enter into
and perform its obligations under this Agreement in any material respect. Without limiting the foregoing, the Investor shall comply
with all applicable provisions of the Securities Act and the Exchange Act. 

 

Section
5.4 Keeping of Records and Books of Account; Foreign Corrupt Practices Act. 

 

(i)
The Company shall keep and cause each Subsidiary to keep adequate records and books of account, in which complete entries shall
be made in accordance with GAAP consistently applied, reflecting all financial transactions of the Company and its Subsidiaries,
and in which, for each fiscal year, all proper reserves for depreciation, depletion, obsolescence, amortization, taxes, bad debts
and other purposes in connection with its business shall be made. The Company shall maintain a system of internal accounting controls
that (a) pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions
of the assets of the Company; (b) provide reasonable assurance that transactions are recorded as necessary to permit preparation
of financial statements in accordance with GAAP, and that receipts and expenditures of the Company are being made only in accordance
with authorizations of management and directors of the Company; and (c) provide reasonable assurance regarding prevention or timely
detection of unauthorized acquisition, use or disposition of the Company’s assets that would likely have a material effect
on the Company’s financial statements. 

 

(ii)
Neither the Company, nor any of its Subsidiaries, nor to the knowledge of the Company, any of their respective directors, officers,
agents, employees or any other persons acting on their behalf shall, in connection with the operation of the Company’s and
its Subsidiaries’ respective businesses, (a) use any corporate funds for unlawful contributions, payments, gifts or entertainment
or to make any unlawful expenditures relating to political activity to government officials, candidates or members of political
parties or organizations, (b) pay, accept or receive any unlawful contributions, payments, expenditures or gifts, or (c) violate
or operate in noncompliance with any export restrictions, anti-boycott regulations, embargo regulations or other applicable domestic
or foreign laws and regulations, in each case, except for such items that would not likely result in a Material Adverse Effect.

 

(iii)
Subject to the requirements of Section 5.12 of this Agreement, from time to time, from and after the period beginning with the
Put Date through and including the applicable Closing Date, the Company shall make available for inspection and review by the
Investor, customary documentation allowing the Investor and/or its appointed counsel or advisors to conduct due diligence. 

 

Section
5.5 Limitations on Holdings and Issuances. Notwithstanding any other provision of this Agreement, the Company shall
not be obligated to issue and the Investor shall not purchase any shares of Common Stock which, when aggregated with all other
shares of Common Stock then beneficially owned (as calculated pursuant to Section 13(d) of the Exchange Act and Rule 13d-3 promulgated
thereunder) by the Investor and its affiliates, would result in the beneficial ownership by the Investor of more than 4.99% of
the then issued and outstanding shares of Common Stock. 

 

    	 	22	 

     

    

 

Section
5.6 Other Agreements and Other Financings. The Company shall not enter into, announce or recommend to its stockholders
any agreement, plan, arrangement or transaction in or of which the terms thereof would restrict, materially delay, conflict with
or impair the ability or right of the Company or any Subsidiary to perform its obligations under this Agreement in connection
with a previously provided Put Notice or the settlement thereof, including, without limitation, the obligation of the Company
to deliver Put Shares to the Investor in respect of a previously provided Put Notice on the applicable Closing Date. 

 

Section
5.7 Stop Orders. The Company shall advise the Investor promptly (but in no event later than 24 hours) and shall confirm
such advice in writing: (i) of the Company’s receipt of notice of any request by the Commission for amendment of or a supplement
to the Registration Statement or for any additional information; (ii) of the Company’s receipt of notice of the issuance
by the Commission of any stop order suspending the effectiveness of the Registration Statement or of the suspension of qualification
of any shares of Common Stock issuable hereunder for offering or sale in any jurisdiction, or the initiation or contemplated initiation
of any proceeding for such purpose; and (iii) of the Company becoming aware of the happening of any event, which makes any statement
of a material fact made in the Registration Statement untrue or which requires the making of any additions to or changes to the
statements then made in the Registration Statement in order to state a material fact required by the Securities Act to be stated
therein or necessary in order to make the statements then made therein not misleading, or of the necessity to amend the Registration
Statement to comply with the Securities Act or any other law. The Company shall not be required to disclose to the Investor the
substance or specific reasons of any of the events set forth in clauses (i) through (iii) of the immediately preceding sentence,
but rather, shall only be required to disclose that the event has occurred. The Company shall not issue a Put Notice during the
continuation of any of the foregoing events. If at any time the Commission shall issue any stop order suspending the effectiveness
of the Registration Statement, the Company shall use commercially reasonable efforts to obtain the withdrawal of such order at
the earliest possible time. 

 

Section
5.8 Amendments to the Registration Statement. 

 

(i)
Except as provided in this Agreement and other than reports required to be filed pursuant to the Exchange Act, the Company shall
not file with the Commission any amendment to the Registration Statement that relates to the Investor, the Agreement or the transactions
contemplated hereby, this Agreement or the transactions contemplated hereby with respect to which (a) the Investor shall not previously
have been advised, (b) the Company shall not have given due consideration to any comments thereon received from the Investor or
its counsel, or (c) the Investor shall reasonably object after being so advised, unless the Company reasonably has determined
that it is necessary to amend the Registration Statement to comply with the Securities Act or any other applicable law or regulation,
in which case the Company shall promptly (but in no event later than 24 hours) so inform the Investor, the Investor shall be provided
with a reasonable opportunity to review and comment upon any disclosure relating to the Investor and the Company shall expeditiously
furnish to the Investor an electronic copy thereof. 

 

    	 	23	 

     

    

 

(ii)
The Company has not made, and agrees that it will not make, an offer relating to the Shares that would constitute an Issuer Free
Writing Prospectus or that would otherwise constitute a Free Writing Prospectus required to be filed by the Company or the Investor
with the Commission or retained by the Company or the Investor under Rule 433 under the Securities Act. The Investor has not made,
and it will not make, an offer relating to the shares of Common Stock that would constitute a Free Writing Prospectus required
to be filed by the Company with the Commission or retained by the Company under Rule 433 under the Securities Act. Any such Issuer
Free Writing Prospectus or other Free Writing Prospectus consented to by the Investor or the Company is referred to in this Agreement
as a “Permitted Free Writing Prospectus.” 

 

Section
5.9 Reserved.

 

Section
5.10 Selling Restrictions. The Investor, covenants that neither it, nor any Affiliate acting on its behalf or pursuant
to any understanding with it will execute any Short Sales, of any of the Company’s securities during the period commencing
with the execution of this Agreement and ending on  the date of the termination of this Agreement (provided that this
provision shall not prohibit any sales made where a corresponding Put Notice is tendered to the Company and the shares of Common
Stock received upon such put is used to close out such sale).

 

Section
5.11 Effective Registration Statement. During the Commitment Period, the Company shall take all reasonable actions
necessary to maintain the continuous effectiveness of the Registration Statement under the Securities Act. 

 

Section
5.12 Non-Public Information. Neither the Company nor any of its directors, officers or agents shall disclose any material
non-public information about the Company to the Investor, unless a timely public announcement thereof is made by the Company in
the manner contemplated by Regulation FD. The
Company shall not deliver a Put Notice at any time after the Company or any of its directors,
officers or agents has disclosed any material non-public information about the Company to the Investor and prior to a public
announcement thereof.

 

Section
5.13 Broker/Dealer. The Investor covenants that it shall use one or more broker-dealers to effectuate all sales, if
any, of the Shares that it may purchase from the Company pursuant to this Agreement which (or whom) shall be unaffiliated with
the Investor (the “Broker-Dealer”). The Investor shall provide the Company with all information regarding the
Broker-Dealer reasonably requested by the Company. The Investor shall be solely responsible for all fees and commissions of the
Broker-Dealer, which shall not exceed customary brokerage fees and commissions. 

 

Section
5.14 Disclosure Schedule. 

 

(i)
During the Commitment Period, the Company shall from time to time update the Disclosure Schedule as may be required to satisfy
the condition set forth in Section 6.4(i). For purposes of this Section 5.14, any disclosure made in a schedule to the Closing
Certificate substantially in the form attached hereto as Exhibit C shall be deemed to be an update of the Disclosure Schedule.
Notwithstanding anything in this Agreement to the contrary, no update to the Disclosure Schedule pursuant to this Section 5.14
shall cure any previous breach of a representation or warranty of the Company contained in this Agreement and shall not affect
any of the Investor’s rights or remedies with respect to such previous breach. 

 

    	 	24	 

     

    

 

(ii)
Notwithstanding anything to the contrary contained in the Disclosure Schedules or in this Agreement, the information and disclosure
contained in any Schedule of the Disclosure Schedules shall be deemed to be disclosed and incorporated by reference in any other
Schedule of the Disclosure Schedules as though fully set forth in such Schedule for which applicability of such information and
disclosure is readily apparent on its face. The fact that any item of information is disclosed in the Disclosure Schedules shall
not be construed to mean that such information is required to be disclosed by this Agreement. Except as expressly set forth in
this Agreement, such information and the thresholds (whether based on quantity, qualitative characterization, dollar amounts or
otherwise) set forth herein shall not be used as a basis for interpreting the terms “material” or “Material
Adverse Effect” or other similar terms in this Agreement. 

 

Section
5.15 Reservation of Common Stock. The Company will, from time to time as needed in advance of a Closing Date, reserve
and keep available until the consummation of such Closing, free of preemptive rights, sufficient shares of Common Stock for the
purpose of enabling the Company to satisfy its obligation to issue the Put Shares to be issued in connection therewith. The number
of shares so reserved from time to time, as theretofore increased or reduced as hereinafter provided, may be reduced by the number
of shares of Common Stock actually delivered hereunder. 

 

Section
5.16Registration Statement. The Company shall file with the Commission the Registration Statement and cause it to be
declared effective as set forth in the Registration Rights Agreement. 

 

ARTICLE
VI 

CONDITIONS
TO THE PURCHASE AND SALE OF THE SHARES

 

Section
6.1 Closing Certificate. Simultaneously with the execution and delivery of this Agreement, the Investor has received
a certificate from the Company, dated the Effective Date, in the form of the Compliance Certificate attached as Exhibit C
hereto. 

 

Section
6.2 Reserved.

 

Section
6.3 Conditions Precedent to the Obligation of the Company. The obligation hereunder of the Company to issue and sell
the Put Shares to the Investor under any Put Notice is subject to the satisfaction or (to the extent permitted by applicable law)
waiver of each of the conditions set forth below. These conditions are for the Company’s sole benefit and (to the extent
permitted by applicable law) may be waived by the Company at any time in its sole discretion. 

 

(i)
Accuracy of the Investor’s Representations and Warranties. The representations and warranties of the Investor contained
in this Agreement (a) that are not qualified by “materiality” shall have been true and correct in all material respects
when made and shall be true and correct in all material respects as of the applicable Put Date and the applicable Closing Date
with the same force and effect as if made on such dates, except to the extent such representations and warranties are as of another
date, in which case, such representations and warranties shall be true and correct in all material respects as of such other date
and (b) that are qualified by “materiality” shall have been true and correct when made and shall be true and correct
as of the applicable Put Date and the applicable Closing Date with the same force and effect as if made on such dates, except
to the extent such representations and warranties are as of another date, in which case, such representations and warranties shall
be true and correct as of such other date. 

 

    	 	25	 

     

    

 

(ii)
Performance by the Investor. The Investor shall have performed, satisfied and complied in all material respects with all
covenants, agreements and conditions required by this Agreement to be performed, satisfied or complied with by the Investor at
or prior to the applicable Put Date and the applicable Closing Date. 

 

(iii)
No Injunction. No statute, regulation, order, decree, writ, ruling or injunction shall have been enacted, entered, promulgated,
threatened or endorsed by any court or governmental authority of competent jurisdiction which prohibits the consummation of or
which would materially modify or delay any of the transactions contemplated by this Agreement. 

 

(iv)
No Suspension, etc. Trading in the Common Stock shall not have been suspended by the Commission or the Principal Market
(except for any suspension of trading of limited duration agreed to by the Company, which suspension shall be terminated prior
to the applicable Put Date and applicable Closing Date), and, at any time prior to the applicable Put Date and applicable Closing
Date, none of the events described in clauses (i), (ii) and (iii) of Section 5.7 shall have occurred, trading in securities generally
as reported on the Principal Market shall not have been suspended or limited nor shall a banking moratorium have been declared
either by the United States or New York State authorities. 

 

(v)
No Proceedings or Litigation. No action, suit or proceeding before any arbitrator or any court or governmental authority
shall have been commenced or threatened, and no inquiry or investigation by any governmental authority shall have been commenced
or threatened, against the Company or any Subsidiary, or any of the officers, directors or affiliates of the Company or any Subsidiary,
seeking to restrain, prevent or change the transactions contemplated by this Agreement, or seeking damages in connection with
such transactions. 

 

(vi)
Limits. The issuance and sale of the Put Shares issuable pursuant to such Put Notice shall not (A) exceed the Maximum Put
Amount, or together with all other Put Notices the Maximum Commitment Amount or (B) violate Section 5.5 hereof. 

 

(vii)
Registration Statement. The Registration Statement is effective and neither the Company nor the Investor shall have received
notice that the Commission has issued or intends to issue a stop order with respect to the Registration Statement. The Company
shall have a maximum dollar amount certain of Common Stock registered under the Registration Statement which are in an amount
(a) as of the Effective Date, not less than the Maximum Commitment Amount and (b) as of the applicable Put Date, not less than
the maximum dollar amount worth of Put Shares issuable pursuant to the applicable Put Notice. The Current Report shall have been
filed with the Commission, as required pursuant to this Agreement, to disclose the sale of the Put Shares prior to the applicable
Closing Date only as required by this Agreement. Any other material required to be filed by the Company or any other offering
participant pursuant to Rule 433(d) under the Securities Act shall have been filed with the Commission within the applicable time
periods prescribed for such filings by Rule 433 under the Securities Act. 

 

    	 	26	 

     

    

 

Section
6.4 Conditions Precedent to the Obligation of the Investor. The obligation hereunder of the Investor to accept a Put
Notice and to acquire and pay for the Put Shares is subject to the satisfaction or (to the extent permitted by applicable law)
waiver, at or before each Put Date and each Closing Date, of each of the conditions set forth below. These conditions are for
the Investor’s sole benefit and (to the extent permitted by applicable law) may be waived by the Investor at any time in
its sole discretion. 

 

(i)
Accuracy of the Company’s Representations and Warranties. The representations and warranties of the Company contained
in this Agreement, as modified by the Disclosure Schedule, which may be updated pursuant to Section 5.14, (a) that are not qualified
by “materiality” or “Material Adverse Effect” shall have been true and correct in all material respects
when made and shall be true and correct in all material respects as of the applicable Put Date and the applicable Closing Date
with the same force and effect as if made on such dates, except to the extent such representations and warranties are as of another
date, in which case, such representations and warranties shall be true and correct in all material respects as of such other date
and (b) that are qualified by “materiality” or “Material Adverse Effect” shall have been true and correct
when made and shall be true and correct as of the applicable Put Date and the applicable Closing Date with the same force and
effect as if made on such dates, except to the extent such representations and warranties are as of another date, in which case,
such representations and warranties shall be true and correct as of such other date. 

 

(ii)
Registration Statement. The Registration Statement is effective and neither the Company nor the Investor shall have received
notice that the Commission has issued or intends to issue a stop order with respect to the Registration Statement. The Company
shall have a maximum dollar amount certain of Common Stock registered under the Registration Statement which are in an amount
(a) as of the Effective Date, not less than the Maximum Commitment Amount and (b) as of the applicable Put Date, not less than
the maximum dollar amount worth of Put Shares issuable pursuant to the applicable Put Notice. As of the applicable Put Date and
the applicable Closing Date, the Investor shall be permitted to utilize the Registration Statement to resell all of the Put Shares
it then owns or has the right to acquire pursuant to all Put Notices issued pursuant to this Agreement. The Current Report shall
have been filed with the Commission, as required pursuant to this Agreement, to disclose the sale of the Put Shares prior to the
applicable Closing Date only as required by this Agreement. Any other material required to be filed by the Company or any other
offering participant pursuant to Rule 433(d) under the Securities Act shall have been filed with the Commission within the applicable
time periods prescribed for such filings by Rule 433 under the Securities Act. 

 

(iii)
No Suspension. Trading in the Common Stock shall not have been suspended by the Commission or the Principal Market (except
for any suspension of trading of limited duration agreed to by the Company, which suspension shall be terminated prior to the
applicable Put Date and applicable Closing Date), and the Company shall not have received any notice that the listing or quotation
of the Common Stock on the Principal Market shall be terminated on a date certain (which termination shall be final and non-appealable).
At any time prior to the applicable Put Date and applicable Closing Date, none of the events described in clauses (i), (ii) and
(iii) of Section 5.7 shall have occurred, trading in securities generally as reported on the Principal Market shall not have been
suspended or limited, nor shall a banking moratorium have been declared either by the United States or New York State authorities.

 

    	 	27	 

     

    

 

(iv)
Performance of the Company. The Company shall have performed, satisfied and complied with all covenants, agreements and
conditions required by this Agreement to be performed, satisfied or complied with by the Company at or prior to the applicable
Put Date and the applicable Closing Date and shall have delivered to the Investor on the applicable Closing Date the Closing Certificate
substantially in the form attached hereto as Exhibit C. 

 

(v)
No Injunction. No statute, rule, regulation, order, decree, writ, ruling or injunction shall have been enacted, entered,
promulgated, threatened or endorsed by any court or governmental authority of competent jurisdiction which prohibits the consummation
of or which would materially modify or delay any of the transactions contemplated by this Agreement. 

 

(vi)
No Proceedings or Litigation. No action, suit or proceeding before any arbitrator or any court or governmental authority
shall have been commenced or threatened, and no inquiry or investigation by any governmental authority shall have been commenced
or threatened, against the Company or any Subsidiary, or any of the officers, directors or affiliates of the Company or any Subsidiary,
seeking to restrain, prevent or change the transactions contemplated by this Agreement, or seeking damages in connection with
such transactions. 

 

(vii)
Limits. The issuance and sale of the Put Shares issuable pursuant to such Put Notice shall not (A) exceed the Maximum Put
Amount, or together with all other Put Notices the Maximum Commitment Amount or (B) violate Section 5.5 hereof. 

 

(viii)
Shares Authorized and Delivered. The Put Shares issuable pursuant to each Put Notice shall have been duly authorized by
all necessary corporate action of the Company. The Company shall have delivered all Shares relating to all prior Put Notices,
as applicable. 

 

(ix)
Reserved. 

 

(x)
Compliance Certificate. The Company shall
have delivered to the Investor on the applicable Closing Date the Compliance Certificate substantially in the form attached hereto
as Exhibit B. 

 

(xi)
Payment of Investor’s Counsel Fees; Due Diligence Expenses. On the first Closing Date, the Company shall have paid
by wire transfer of immediately available funds to an account designated by the Investor’s counsel, the fees and expenses
of the Investor’s counsel in accordance with Section 9.1 of this Agreement. 

 

    	 	28	 

     

    

 

ARTICLE
VII 

TERMINATION

 

Section
7.1 Term, Termination. Unless earlier terminated as provided hereunder, this Agreement shall terminate automatically
upon the earlier of the (i) expiration of the Commitment Period or (ii) the date that Put Shares totaling the Maximum Commitment
Amount have been issued to the Investor pursuant to this Agreement. Subject to Section 7.2, this Agreement may be terminated at
any time by the mutual written consent of the parties, effective as of the date of such mutual written consent unless otherwise
provided in such written consent, it being hereby acknowledged and agreed that the Investor may not consent to such termination
during a Valuation Period or prior to a Closing Date in the event the Investor has instructed the Broker-Dealer to effect an open-market
sale of Put Shares which are subject to a pending Put Notice but which have not yet been physically delivered by the Company (and/or
credited by book-entry) to the Investor in accordance with the terms and subject to the conditions of this Agreement. 

 

Section
7.2Effect of Termination. In the event of termination by the Company or the Investor pursuant to Section 7.1, as applicable,
written notice thereof shall forthwith be given to the other party as provided in Section 9.4 and the transactions contemplated
by this Agreement shall be terminated without further action by either party. If this Agreement is terminated as provided in Section
7.1 herein, this Agreement shall become void and of no further force and effect, except that (i) the provisions of Article VIII
(Indemnification), Section 9.1 (Fees and Expenses), Section 9.2 (Specific Enforcement, Consent to Jurisdiction, Waiver of Jury
Trial), Section 9.4 (Notices), Section 9.8 (Governing Law), Section 9.9 (Survival), Section 9.11 (Publicity), Section 9.12 (Severability)
and this Article VII (Termination) shall remain in full force and effect notwithstanding such termination, (ii) if the Investor
owns any Shares at the time of such termination, the covenants and agreements of the Company and the Investor, as applicable,
contained in Section 5.1 (Securities Compliance), Section 5.3 (Compliance with Laws), Section 5.7 (Stop Orders), Section 5.8 (Amendments
to the Registration Statement), Section 5.11 (Effective Registration Statement), Section 5.12 (Non-Public Information) and Section
5.13 (Broker/Dealer) shall remain in full force and effect notwithstanding such termination for a period of six months following
such termination, and (iii) if the Investor owns any Shares at the time of such termination, the covenants and agreements of the
Company contained in Section 5.2 (Registration and Listing) shall remain in full force and effect notwithstanding such termination
for a period of 30 days following such termination. Notwithstanding anything in this Agreement to the contrary, no termination
of this Agreement by any party shall affect any cash fees paid to the Investor or its counsel pursuant to Section 9.1, in each
case all of which fees shall be non-refundable, regardless of whether any Put Notices are issued by the Company or settled hereunder.
Nothing in this Section 7.2 shall be deemed to release the Company or the Investor from any liability for any breach under this
Agreement, or to impair the rights of the Company and the Investor to compel specific performance by the other party of its obligations
under this Agreement. 

 

    	 	29	 

     

    

 

ARTICLE
VIII 

INDEMNIFICATION

 

Section
8.1 General Indemnity. The Company will indemnify and hold the Investor, its directors, officers, shareholders, members,
managers, partners, employees, representatives, agents, and affiliates (and any other Person with a functionally equivalent role
of a person or entity holding such titles notwithstanding a lack of such title or any other title), each person or entity who
controls the Investor (within the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act), and the directors,
officers, shareholders, members, managers, partners, employees, representatives, agents, and affiliates (and any other Person
with a functionally equivalent role of a person or entity holding such titles notwithstanding a lack of such title or any other
title) of such controlling persons (each, an “Investor Party”) harmless from any and all losses, liabilities, obligations,
claims, contingencies, damages, costs and expenses, including all judgments, amounts paid in settlements, court costs and reasonable
attorneys’ fees and costs of investigation that any the Investor Party may suffer or incur as a result of or relating to
(a) any breach of any of the representations, warranties, covenants or agreements made by the Company in this Agreement or the
other Transaction Documents, (b) any action instituted against the Investor Parties in any capacity, or any of them or their respective
affiliates, by any stockholder of the Company who is not an affiliate of the Investor Party, with respect to any of the transactions
contemplated by this Agreement and the other Transaction Documents (unless such action is based upon a breach of the Investor
Party’s representations, warranties or covenants under this Agreement or the other Transaction Documents or any agreements
or understandings the Investor Party may have with any such stockholder or any violations by such  Investor Party of
state or federal securities laws or any conduct by the Investor Party which constitutes fraud, gross negligence, willful misconduct
or malfeasance), (c) any violation of United States federal or state securities laws or the rules and regulations of the Principal
Market by the Company or any of its Subsidiaries, affiliates, officers, directors or employees in connection with the transactions
contemplated by this Agreement, or (d) any untrue statement or alleged untrue statement of a material fact contained, or incorporated
by reference, in the Registration Statement or any amendment thereto or any omission or alleged omission to state therein, or
in any document incorporated by reference therein, a material fact required to be stated therein or necessary to make the statements
therein not misleading.  If any action shall be brought against any Investor Party in respect of which indemnity may
be sought pursuant to this Agreement, the Investor Party shall promptly notify the Company in writing, and the Company shall have
the right to assume the defense thereof with counsel of its own choosing acceptable to the Investor Party.  Any Investor
Party shall have the right to employ separate counsel in any such action and participate in the defense thereof, but the fees
and expenses of such counsel shall be at the expense of the Investor Party except to the extent that (i) the employment thereof
has been specifically authorized by the Company in writing, (ii) the Company has failed after a reasonable period of time to assume
such defense and to employ counsel or (iii) in such action there is, in the reasonable opinion of counsel, a material conflict
on any material issue between the position of the Company and the position of the Investor Party, in which case the Company shall
be responsible for the reasonable fees and expenses of no more than one such separate counsel.  The Company will not
be liable to any Investor Party under this Agreement (x) for any settlement by an Investor Party effected without the Company’s
prior written consent, which shall not be unreasonably withheld or delayed; or (y) to the extent, but only to the extent that
a loss, claim, damage or liability is attributable to any Investor Party’s breach of any of the representations, warranties,
covenants or agreements made by the Investor Party in this Agreement or in the other Transaction Documents.  The indemnification
required by this Section 8.1 shall be made by periodic payments of the amount thereof during the course of the investigation or
defense, as and when bills are received or are incurred.  The indemnification contained herein shall be in addition
to any cause of action or similar right of any Investor Party against the Company or others and any liabilities the Company may
be subject to pursuant to law. Subject to Section 8.2, the Company shall reimburse the Investor Party and each such controlling
person promptly upon demand (with accompanying presentation of documentary evidence) for all legal and other costs and expenses
incurred by the Investor Party or such indemnified persons in investigating, defending against, or preparing to defend against
any such claim, action, suit or proceeding with respect to which it is entitled to indemnification. 

 

    	 	30	 

     

    

 

Section
8.2 Indemnification Procedures. Promptly after an Investor Party receives notice of a claim or the commencement of
an action for which the person intends to seek indemnification under Section 8.1, the Investor Party will notify the Company in
writing of the claim or commencement of the action, suit or proceeding; provided; however, that failure to notify the Company
will not relieve the Company from liability under Section 8.1, except to the extent it has been materially prejudiced by the failure
to give notice. The Company will be entitled to participate in the defense of any claim, action, suit or proceeding as to which
indemnification is being sought, and if the Company acknowledges in writing the obligation to indemnify the Investor Party against
whom the claim or action is brought, the Company may (but will not be required to) assume the defense against the claim, action,
suit or proceeding with counsel satisfactory to it. After the Company notifies the Investor Party that the Company wishes to assume
the defense of a claim, action, suit or proceeding, the Company will not be liable for any legal or other expenses incurred by
the Investor Party in connection with the defense against the claim, action, suit or proceeding except that if, in the opinion
of counsel to the Company, one or more of the Investor Parties should be separately represented in connection with a claim, action,
suit or proceeding, the Company will pay the fees and expenses of one separate counsel for the Investor Parties. The Company shall
not, without the prior written consent of the Investor Parties, effect any settlement of a pending or threatened action with respect
to which an Investor Party is, or is informed that it may be, made a party and for which it would be entitled to indemnification,
unless the settlement includes an unconditional release of the Investor Parties from all liability and claims which are the subject
matter of the pending or threatened action. 

 

If
for any reason the indemnification provided for in this Agreement is not available to, or is not sufficient to hold harmless,
an Investor Party in respect of any loss or liability referred to in Section 8.1 as to which such Investor Party is entitled to
indemnification thereunder, the Company shall, in lieu of indemnifying the Investor Party, contribute to the amount paid or payable
by the Investor Party as a result of such loss or liability, (i) in the proportion which is appropriate to reflect the relative
benefits received by the Company, on the one hand, and by the Investor Party, on the other hand, from the sale of Shares which
is the subject of the claim, action, suit or proceeding which resulted in the loss or liability or (ii) if the allocation provided
by clause (i) is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits
referred to in clause (i) above, but also the relative fault of the Company, on the one hand, and the Investor Party, on the other
hand, with respect to the statements or omissions which are the subject of the claim, action, suit or proceeding that resulted
in the loss or liability, as well as any other relevant equitable considerations. 

 

The
remedies provided for in Section 8.1 and this Section 8.2 are not exclusive and shall not limit any rights or remedies which may
otherwise be available to any Investor Party at law or in equity. 

 

ARTICLE
IX 

MISCELLANEOUS

 

Section
9.1 Fees and Expenses. Each party shall bear its own fees and expenses related to the transactions contemplated by
this Agreement; provided, however, that the Company has paid at the first Closing the Investor’s counsel, attorneys’
fees and expenses in the amount of $45,000 (inclusive of disbursements and out-of-pocket expenses), in connection with the preparation,
negotiation, execution and delivery of this Agreement, legal due diligence and all other related transaction matters. The Company
shall pay all U.S. federal, state and local stamp and other similar transfer and other taxes and duties levied in connection with
issuance of the shares of Common Stock pursuant hereto. For the avoidance of doubt, all of the fees payable to the Investor or
its counsel pursuant to this Section 9.1 shall be non-refundable, regardless of whether any Put Notices are issued by the Company
or settled hereunder after the first Closing. If the first Closing does not occur by December 31, 2017, then the Company shall
pay the Investor’s legal counsel fees on the immediately following Trading Day. The Company shall also pay to Aegis Capital
Corp. an advisory fee of $125,000, on the same date on which the Investor’s legal counsel is paid. In addition, upon execution
of this Agreement the Company shall issue to the Investor 5,000,000 shares of Common Stock, which shares will be registered on
the Registration Statement. 

 

    	 	31	 

     

    

 

Section
9.2 Specific Enforcement, Consent to Jurisdiction, Waiver of Jury Trial. 

 

(i)
The Company and the Investor acknowledge and agree that irreparable damage would occur in the event that any of the provisions
of this Agreement were not performed in accordance with their specific terms or were otherwise breached. It is accordingly agreed
that either party shall be entitled to an injunction or injunctions to prevent or cure breaches of the provisions of this Agreement
by the other party and to enforce specifically the terms and provisions hereof this being in addition to any other remedy to which
either party may be entitled by law or equity. 

 

(ii)
Each of the Company and the Investor (a) hereby irrevocably submits to the jurisdiction of the courts of the State of New York
in New York County or the court of the United States, Southern District of New York for the purposes of any suit, action or proceeding
arising out of or relating to this Agreement, and (b) hereby waives, and agrees not to assert in any such suit, action or proceeding,
any claim that it is not personally subject to the jurisdiction of such court, that the suit, action or proceeding is brought
in an inconvenient forum or that the venue of the suit, action or proceeding is improper. Each of the Company and the Investor
consents to process being served in any such suit, action or proceeding by mailing a copy thereof to such party at the address
in effect for notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of
process and notice thereof. Nothing in this Section 9.2 shall affect or limit any right to serve process in any other manner permitted
by law. 

 

(iii)
EACH OF THE COMPANY AND THE INVESTOR HEREBY WAIVES TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO
A TRIAL BY JURY IN RESPECT TO ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT
OR THE TRANSACTIONS CONTEMPLATED HEREBY OR DISPUTES RELATING HERETO. EACH OF THE COMPANY AND THE INVESTOR CERTIFIES THAT NO REPRESENTATIVE,
AGENT OR ATTORNEY OF ANY PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION,
SEEK TO ENFORCE THE FOREGOING WAIVER. 

 

    	 	32	 

     

    

 

Section
9.3 Entire Agreement; Amendment. This Agreement, together with the exhibits referred to herein and the Disclosure Schedule
by and between the Company and the Investor, represents the entire agreement of the parties with respect to the subject matter
hereof and thereof, and there are no promises, undertakings, representations or warranties by either party relative to subject
matter hereof not expressly set forth herein or therein. No provision of this Agreement may be amended other than by a written
instrument signed by both parties hereto. The Disclosure Schedule and all exhibits to this Agreement are hereby incorporated by
reference in, and made a part of, this Agreement as if set forth in full herein. 

 

Section
9.4 Notices. Any notice, demand, request, waiver or other communication required or permitted to be given hereunder
shall be in writing and shall be effective (a) upon hand delivery or facsimile (with facsimile machine confirmation of delivery
received) at the address or number designated below (if delivered on a business day during normal business hours where such notice
is to be received), or the first business day following such delivery (if delivered other than on a business day during normal
business hours where such notice is to be received) or (b) on the second business day following the date of mailing by express
courier service, fully prepaid, addressed to such address, or upon actual receipt of such mailing, whichever shall first occur.
The address for such communications shall be: 

 

If
to the Company:

 

InterCloud
Systems, Inc.

1030
Broad Street, Suite 102

Shrewsbury, NJ 07702

Attention:
Chief Financial Officer

Phone:
(561) 988-1988

Fax
No.: (732) 796-6936

Email:
tlarkin@intercloudsys.com

 

With
copies to:

 

(which
shall not constitute notice):

 

Pryor
Cashman LLP

7
Times Square

New
York, New York 10036

Attention:
M. Ali Panjwani, Esq.

Phone:
(212) 326-0820

Fax
No.: (212) 798-6319

Email:
ali.panjwani@pryorcashman.com

 

If
to Investor:

 

Dominion
Capital LLC

341
West 38th Street, Suite 800

New
York, NY 10018

Attn:
Mikhail Gurevich

 

With
copies to:

 

(which
shall not constitute notice):

 

Robinson
Brog Leinwand Greene Genovese & Gluck P.C.

875
Third Avenue, 9th Floor

New
York, New York 10022

Attention:
David E. Danovitch, Esq.

Phone:
(212) 603-6391

Fax
No.: (212) 956-2164

Email:
ded@robinsonbrog.com

 

    	 	33	 

     

    

 

Either
party hereto may from time to time change its address for notices by giving at least 10 days advance written notice of such changed
address to the other party hereto. 

 

Section
9.5 Waivers. No waiver by either party of any default with respect to any provision, condition or requirement of this
Agreement shall be deemed to be a continuing waiver in the future or a waiver of any other provisions, condition or requirement
hereof nor shall any delay or omission of any party to exercise any right hereunder in any manner impair the exercise of any such
right accruing to it thereafter. No provision of this Agreement may be waived other than in a written instrument signed by the
party against whom enforcement of such waiver is sought. 

 

Section
9.6 Headings; Construction. The article, section and subsection headings in this Agreement are for convenience only
and shall not constitute a part of this Agreement for any other purpose and shall not be deemed to limit or affect any of the
provisions hereof. Unless the context clearly indicates otherwise, each pronoun herein shall be deemed to include the masculine,
feminine, neuter, singular and plural forms thereof. The terms “including,” “includes,” “include”
and words of like import shall be construed broadly as if followed by the words “without limitation.” The terms “herein,”
“hereunder,” “hereof” and words of like import refer to this entire Agreement instead of just the provision
in which they are found. The parties agree that each of them and their respective counsel has reviewed and had an opportunity
to revise this Agreement and, therefore, the normal rule of construction to the effect that any ambiguities are to be resolved
against the drafting party shall not be employed in the interpretation of this Agreement. In addition, each and every reference
to share prices and shares of Common Stock in this Agreement shall be subject to adjustment for any stock splits, stock combinations,
stock dividends, recapitalizations and other similar transactions that occur on or after the date of this Agreement. 

 

Section
9.7 Successors and Assigns. The Investor may not assign this Agreement to any person without the prior consent of the
Company, in the Company’s sole discretion. This Agreement shall be binding upon and inure to the benefit of the parties
and their successors and assigns. The assignment by a party to this Agreement of any rights hereunder shall not affect the obligations
of such party under this Agreement. 

 

Section
9.8 Governing Law. This Agreement shall be governed by and construed in accordance with the internal procedural and
substantive laws of the State of New York, without giving effect to the choice of law provisions of such state that would cause
the application of the laws of any other jurisdiction. 

 

    	 	34	 

     

    

 

Section
9.9 Survival. The representations, warranties, covenants and agreements of the Company and the Investor contained in
this Agreement shall survive the execution and delivery hereof until the termination of this Agreement; provided, however, that
(i) the provisions of Article VII (Termination), Article VIII (Indemnification), Section 9.1 (Fees and Expenses), Section 9.2
(Specific Enforcement, Consent to Jurisdiction, Waiver of Jury Trial), Section 9.4 (Notices), Section 9.8 (Governing Law), Section
9.11 (Publicity), Section 9.12 (Severability) and this Section 9.9 (Survival) shall remain in full force and effect notwithstanding
such termination, (ii) if the Investor owns any Shares at the time of such termination, the covenants and agreements of the Company
and the Investor, as applicable, contained in Section 5.1 (Securities Compliance), Section 5.3 (Compliance with Laws), Section
5.7 (Stop Orders), Section 5.8 (Amendments to the Registration Statement), Section 5.11 (Effective Registration Statement), Section
5.12 (Non-Public Information) and Section 5.13 (Broker/Dealer) shall remain in full force and effect notwithstanding such termination
for a period of six months following such termination, (iii) the covenants and agreements of the Investor contained in Section
5.10 (Selling Restrictions) shall remain in full force and effect notwithstanding such termination for a period of 90 days following
such termination, and (iv) if the Investor owns any Shares at the time of such termination, the covenants and agreements of the
Company contained in Section 5.2 (Registration and Listing) shall remain in full force and effect notwithstanding such termination
for a period of 30 days following such termination. 

 

Section
9.10 Counterparts. This Agreement may be executed in counterparts, all of which taken together shall constitute one
and the same original and binding instrument and shall become effective when all counterparts have been signed by each party and
delivered to the other parties hereto, it being understood that all parties hereto need not sign the same counterpart. In the
event any signature is delivered by facsimile, digital or electronic transmission, such transmission shall constitute delivery
of the manually executed original. 

 

Section
9.11 Publicity. On or after the Effective Date, the Company may issue a press release or otherwise make a public statement
or announcement with respect to this Agreement or the transactions contemplated hereby or the existence of this Agreement (including,
without limitation, by filing a copy of this Agreement with the Commission); provided, however, that prior to issuing any such
press release, or making any such public statement or announcement, the Company shall consult with the Investor on the form and
substance of such press release or other disclosure (unless the disclosure previously has been reviewed and approved by the Investor).

 

Section
9.12 Severability. The provisions of this Agreement are severable and, in the event that any court of competent jurisdiction
shall determine that any one or more of the provisions or part of the provisions contained in this Agreement shall, for any reason,
be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect
any other provision or part of a provision of this Agreement, and this Agreement shall be reformed and construed as if such invalid
or illegal or unenforceable provision, or part of such provision, had never been contained herein, so that such provisions would
be valid, legal and enforceable to the maximum extent possible. 

 

Section
9.13 No Third Party Beneficiaries. Except as expressly provided in Article VIII, this Agreement is intended only for
the benefit of the parties hereto and their respective permitted successors and assigns, and is not for the benefit of, nor may
any provision hereof be enforced by, any other person. 

 

Section
9.14 Further Assurances. From and after the date of this Agreement, upon the request of the Investor or the Company,
each of the Company and the Investor shall execute and deliver such instrument, documents and other writings as may be reasonably
necessary or desirable to confirm and carry out and to effectuate fully the intent and purposes of this Agreement. 

 

[The
remainder of this page is intentionally left blank] 

 

    	 	35	 

     

    

 

IN
WITNESS WHEREOF, the parties hereto have caused this Investment Agreement to be executed by the undersigned, thereunto duly
authorized, as of the date first set forth above. 

 

	 	 	 	INTERCLOUD SYSTEMS, INC.
	 	 	 	 	 
	 	 	 	By:	/s/
    Timothy A. Larkin
	 	 	 	Name:	Timothy
    A. Larkin
	 	 	 	Title:	Chief
    Financial Officer
	 	 	 	 	     
	DOMINION CAPITAL LLC	 	 	 
	 	 	 	 	 
	By:	/s/
    Mikhail Gurevich           	 	 	 
	Name:	Mikhail Gurevich	 	 	 
	Title:	Managing Member	 	 	 

 

    	 	36	 

     

    

 

EXHIBIT
A 

 

FORM
OF PUT NOTICE

 

Reference
is made to the Investor Agreement dated as of October 4, 2017 (the “Agreement”) between InterCloud Systems,
Inc., a corporation organized and existing under the laws of the State of Delaware (the “Company”), and
Dominion Capital LLC. Capitalized terms used and not otherwise defined herein shall have the meanings given such terms in the
Agreement. In accordance with and pursuant to Section 2.2 of the Agreement, the Company hereby issues this Put Notice to
exercise a Put for the Put Amount Requested indicated below.

 

Put Amount Requested:  

 

Valuation Period start date:  

 

Valuation Period end date:  

 

Closing Date:  

 

On
behalf of the Company, the undersigned hereby certifies to the Investor that (i) the above Put Amount Requested does not exceed
the Maximum Put Amount requested, (ii) the sale of Shares pursuant to this Put Notice shall not cause the Company to sell or the
Investor to purchase shares of Common Stock which, when aggregated with all purchases made by the Investor pursuant to all prior
Put Notices issued under the Agreement, would exceed the Maximum Commitment Amount, (iii) to the Company’s knowledge, the
sale of Shares pursuant to this Put Notice shall not cause the Company to sell or the Investor to purchase shares of Common Stock
which would cause the aggregate number of shares of Common Stock then beneficially owned (as calculated pursuant to Section 13(d)
of the Exchange Act and Rule 13d-3 promulgated thereunder) by the Investor and its Affiliates to exceed the Ownership Limitation,
and (iv) the Company has performed, satisfied and complied in all material respects with all covenants, agreements and conditions
required by the Agreement to be performed, satisfied or complied with by the Company at or prior to the date hereof and shall
perform, satisfy and comply in all material respects with all covenants, agreements and conditions required by the Agreement to
be performed, satisfied or complied with by the Company at or prior to the applicable settlement date, including without limitation,
delivery of all certificates required to be delivered by the Agreement.

 

	Dated:	 	 	By:	           
	 	 	 	Name:	 
	 	 	 	Title:	 
	 	 	 	 	 
	AGREED AND ACCEPTED:	 	 	 
	 	 	 	 	 
	By:	           	 	 	 
	Name:	 	 	 	 
	Title:	 	 	 	 

 

     

     

    

 

EXHIBIT
B

 

COMPLIANCE
CERTIFICATE

 

In
connection with the issuance of shares of common stock of InterCloud Systems, Inc., a corporation organized and existing
under the laws of the State of Delaware (the “Company”), pursuant to the Put Notice, dated
[_____________], delivered by the Company to Dominion Capital, LLC, a Connecticut limited liability company (the
“Investor”) pursuant to Article II of the Investor Agreement, dated as of October 4,
2017, by and between the Company and the Investor (the “Agreement”), the undersigned hereby certifies to
the Investor as follows:

 

1.
The undersigned is the duly appointed [_____________] of the Company.

 

2.
Except as set forth in the attached Disclosure Schedule, the representations and warranties of the Company set forth in Article
V of the Agreement (i) that are not qualified by “materiality” or “Material Adverse Effect” are true and
correct in all material respects as of [insert Closing Date] and as of the date hereof with the same force and effect as if made
on such dates, except to the extent such representations and warranties are as of another date, in which case, such representations
and warranties are true and correct in all material respects as of such other date and (ii) that are qualified by “materiality”
or “Material Adverse Effect” are true and correct as of [insert Closing Date] and as of the date hereof with the same
force and effect as if made on such dates, except to the extent such representations and warranties are as of another date, in
which case, such representations and warranties are true and correct as of such other date.

 

3.
The Company has performed, satisfied and complied in all material respects with all covenants, agreements and conditions required
by the Agreement to be performed, satisfied or complied with by the Company at or prior to [insert Closing Date] and the date
hereof.

 

4.
The Shares issuable on the date hereof in respect of the Put Notice referenced above shall be delivered electronically by crediting
the Investor’s or its designees’ account at DTC through its Deposit/Withdrawal at Custodian (DWAC) system, and shall
be freely tradable and transferable and without restriction on resale.

 

Capitalized
terms used but not otherwise defined herein shall have the meanings assigned to them in the Agreement.

 

The
undersigned has executed this Certificate this [___] day of [___________], 20[__].

 

	 	By:	     
	 	Name:	 
	 	Title:	 

 

     

     

    

 

EXHIBIT
C

 

CLOSING
CERTIFICATE

 

_________
20__

 

The
undersigned, the [___________] of InterCloud Systems, Inc., a corporation organized and existing under the laws of the State
of Delaware (the “Company”), delivers this certificate in connection with the Investor Agreement, dated as
of October 4, 2017(the “Agreement”), by and between the Company and
Dominion Capital, LLC, a Connecticut limited liability company (the “Investor”), and hereby
certifies on the date hereof that (capitalized terms used herein without definition have the meanings assigned to them in the
Agreement):

 

1.
Attached hereto as Exhibit A is a true, complete and correct copy of the Articles of Incorporation of the Company
as filed with the Secretary of State of the State of Delaware. The Articles of Incorporation of the Company have not been further
amended or restated, and no document with respect to any amendment to the Articles of Incorporation of the Company has been filed
in the office of the Secretary of State of the State of Delaware since the date shown on the face of the state certification relating
to the Company’s Articles of Incorporation, which is in full force and effect on the date hereof, and no action has been
taken by the Company in contemplation of any such amendment or the dissolution, merger or consolidation of the Company.

 

2.
Attached hereto as Exhibit B is a true and complete copy of the Bylaws of the Company, as amended and restated
through, and as in full force and effect on, the date hereof, and no proposal for any amendment, repeal or other modification
to the Bylaws of the Company has been taken or is currently pending before the Board of Directors or stockholders of the Company.

 

3.
The Board of Directors of the Company has approved the transactions contemplated by the Transaction Documents; said approval has
not been amended, rescinded or modified and remains in full force and effect as of the date hereof.

 

4.
Each person who, as an officer of the Company, or as attorney-in-fact of an officer of the Company, signed the Transaction Documents
to which the Company is a party, was duly elected, qualified and acting as such officer or duly appointed and acting as such attorney-in-fact,
and the signature of each such person appearing on any such document is his genuine signature.

 

IN
WITNESS WHEREOF, I have signed my name as of the date first above written.

 

	 	By:
    	     
	 	Name:	 
	 	Title:	 

 

     

     

    

 

EXHIBIT
D

 

Form
of Registration Rights AgreementEX-10.1

 Exhibit 10.1 

Conformed Copy 

MANAGEMENT AGREEMENT 

This AGREEMENT (this “Agreement”), made as of the 1st day of October 2017, is by and among CERES MANAGED FUTURES LLC, a Delaware
limited liability company (“CMF”), CERES TACTICAL CURRENCY, L.P. a Delaware limited partnership (formerly known as Morgan Stanley Smith Barney Spectrum Currency & Commodity L.P., the “Partnership”) and GREENWAVE
CAPITAL MANAGEMENT LLC, a Delaware limited liability company (“Greenwave” or the “Advisor”). 
 W I
T N E S S E T H : 
 WHEREAS, CMF is the general partner of the Partnership, a
limited partnership organized for the purpose of speculative trading of commodity interests, including futures contracts, options, forward contracts, swaps and other derivative instruments with the objective of achieving substantial capital
appreciation; and 
 WHEREAS, the limited partnership agreement of the Partnership, dated as of March 6, 2000, as amended and restated
as of April 25, 2005, April 2, 2007 and January 1, 2016 (the “Partnership Agreement”), permit CMF to delegate to one or more commodity trading advisors CMF’s authority to make trading decisions on behalf of the
Partnership; and 
 WHEREAS, the Advisor is registered as a commodity trading advisor with the CFTC and is a member of the NFA; and 

WHEREAS, CMF is registered as a commodity trading advisor and a commodity pool operator with the CFTC and is a member of the NFA; and 

WHEREAS, CMF, the Partnership and the Advisor wish to enter into this Agreement in order to set forth the terms and conditions upon which the
Advisor will render and implement advisory services in connection with the conduct by the Partnership of its commodity interest trading activities during the term of this Agreement. 

NOW, THEREFORE, the parties agree as follows: 

1. DUTIES OF THE ADVISOR. (a) For the period, and on the terms and conditions, of this Agreement, the Advisor shall have sole
authority and responsibility, as one of the Partnership’s agents and attorneys-in-fact, for directing the investment and reinvestment of the assets and funds of the
Partnership allocated to it from time to time by CMF in commodity interests, including commodity futures contracts, options, and forward contracts. The Advisor may also engage in swap transactions and other derivative transactions on behalf of the
Partnership with the prior written approval of CMF. All such trading on behalf of the Partnership shall be in accordance with the trading strategies and trading policies set forth in the Partnership Agreement and Partnership Designation and as
described in Appendix A and Appendix B, and as such trading policies may be changed from time to time upon receipt by the Advisor or prior written notice of such change and pursuant to the trading strategy selected by

 
CMF to be utilized by the Advisor in managing the Partnership’ assets. CMF has determined that the Partnership assets allocated to the Advisor shall be allocated to the Advisor’s
Greenwave Flagship Plus Program (the “Program”) or as may otherwise be mutually agreed by the parties in writing in the future. Any open positions or other investments at the time of receipt of such notice of a change in trading policy
shall not be deemed to violate the changed policy and shall be closed or sold in the ordinary course of trading. The Advisor may not deviate from the trading policies set forth in Appendix A and Appendix B without the prior written consent of the
Partnership given by CMF. The Advisor makes no representation or warranty that the trading to be directed by it for the Partnership will be profitable or will not result in losses. 

(b) CMF acknowledges receipt of the description of the Program, attached hereto as Appendix A. CMF further acknowledges receipt of the
trading strategies and trading policies which are attached as Appendix B hereto. All trades made by the Advisor for the account of the Partnership shall be made through such commodity broker or brokers as CMF shall direct, and the Advisor
shall have no authority or responsibility for selecting or supervising any such broker in connection with the execution, clearance or confirmation of transactions for the Partnership or for the negotiation of brokerage rates charged therefor.
However, the Advisor, with the prior written permission (by original, fax copy or email copy) of CMF, may direct any and all trades in commodity futures and options to a futures commission merchant or independent floor broker it chooses for
execution with instructions to give-up the trades to the broker designated by CMF, provided that the futures commission merchant or independent floor broker and any
give-up or floor brokerage fees are approved in advance by CMF. The Advisor, with the prior written permission (by original, fax copy or email copy) of CMF, may enter into swaps and other derivative
transactions with any swap dealer it chooses for execution with instructions to give-up the trades to the broker designated by CMF, provided that the swap dealer and any
give-up or other fees are approved in advance by CMF. All give-up or similar fees relating to the foregoing shall be paid by the Partnership after all parties have
executed the relevant give-up agreements (by original, fax copy or email copy). 
 (c) The initial
allocation of the Partnership’ assets to the Advisor will be made to the Program, as described in Appendix A; provided, however, that CMF and the Partnership agree that the amount of assets of the Partnership allocated to the Advisor
(“Allocated Amount”) will have a trading level of up to 2.0 times the Allocated Amount, unless otherwise agreed to in writing by CMF and the Advisor. In the event that the Advisor wishes to use a trading system or methodology other than or
in addition to the system or methodology outlined in Appendix A and Appendix B in connection with its trading for the Partnership, either in whole or in part, it may not do so unless the Advisor gives CMF prior written notice of its intention to
utilize such different trading system or methodology and CMF consents thereto in writing. The Advisor will provide five days’ prior written notice to CMF of any change in the trading system or methodology to be utilized for the Partnership
which the Advisor deems material. If the Advisor deems such change in system or methodology or in markets traded to be material, the changed system or methodology or markets traded will not be utilized for the Partnership without the prior written
consent of CMF. In addition, the Advisor will notify CMF of any changes to the trading system or methodology that would cause the description of the trading strategy or methods described in Appendix A or Appendix B to be materially
inaccurate. Further, the Advisor will provide the Partnership with a current list of all commodity interests to be traded for the Partnership’ account and the Advisor will not trade any additional commodity interests for

  
 - 2 - 

 
such account without providing notice thereof to CMF and receiving CMF’s written approval. The Advisor also agrees to provide CMF, on a monthly basis, with a written report of the assets
under the Advisor’s management together with all other matters deemed by the Advisor to be material changes to its business not previously reported to CMF. The Advisor further agrees that it will convert foreign currency balances (not required
to margin positions denominated in a foreign currency) to U.S. dollars no less frequently than monthly. U.S. dollar equivalents in individual foreign currencies of more than $100,000 will be converted to U.S. dollars within one business day after
such funds are no longer needed to margin foreign positions. 
 (d) The Advisor agrees to make all material disclosures to the Partnership
regarding itself and its principals as defined in Part 4 of the CFTC’s regulations (“principals”), shareholders, directors, officers and employees, their trading performance and general trading methods, its customer accounts (but not
the identities of or identifying information with respect to its customers) and otherwise as are required in the reasonable judgment of CMF in good faith to be made in any filings required by federal or state law or NFA rule or order.
Notwithstanding Sections 1(d) and 4(d) of this Agreement, the Advisor shall not be required to disclose the actual trading results of proprietary accounts of the Advisor or its principals unless CMF reasonably determines in good faith that such
disclosure is required in order to fulfill its fiduciary obligations to the Partnership or the reporting, filing or other obligations imposed on it by federal or state law or NFA rule or order. The Partnership and CMF acknowledge that the trading
advice to be provided by the Advisor is a property right belonging to the Advisor and that they will keep all such advice confidential. 

(e) The Advisor understands and agrees that CMF may designate other trading advisors for the Partnership and apportion or reapportion to such
other trading advisors the management of an amount of the Net Asset Value of the Partnership (as defined in Section 3(b) hereof) as it shall determine in its absolute discretion. The designation of other trading advisors and the apportionment
or reapportionment of Net Asset Value of the Partnership to any such trading advisors pursuant to this Section 1 shall neither terminate this Agreement nor modify in any regard the respective rights and obligations of the parties hereunder.

 (f) CMF may, from time to time, in its absolute discretion, select additional trading advisors and reapportion funds among the trading
advisors for the Partnership as it deems appropriate. CMF shall use its best efforts to make reapportionments, if any, as of the first day of a calendar month. The Advisor agrees that it may be called upon at any time promptly to liquidate positions
in CMF’s sole discretion so that CMF may reallocate the Partnership’ assets, meet margin calls on the Partnership’ account, fund redemptions, or for any other reason, except that CMF will not require the liquidation of specific
positions by the Advisor. CMF will use its best efforts to give two business days’ prior notice to the Advisor of any reallocations or liquidations. 

(g) The Advisor shall assume financial responsibility for any errors committed or caused by it in transmitting orders for the purchase or sale
of commodity interests for the Partnership’ account including payment to the brokers of the floor brokerage commissions, exchange, NFA fees, and other transaction charges and give-up charges incurred by
the brokers on such trades. The Advisor’s errors shall include, but not be limited to, inputting improper trading signals or communicating incorrect orders to the commodity brokers. The 

  
 - 3 - 

 
Advisor shall have an affirmative obligation to promptly notify CMF in accordance with the provisions of Section 8(a)(iii) of any errors with respect to the account, and the Advisor shall
use its best efforts to identify and promptly notify CMF of any order or trade which the Advisor reasonably believes was not executed in accordance with its instructions to any broker utilized to execute orders for the Partnership. 

2. INDEPENDENCE OF THE ADVISOR. For all purposes herein, the Advisor shall be deemed to be an independent contractor and, unless
otherwise expressly provided or authorized, shall have no authority to act for or represent the Partnership in any way and shall not be deemed an agent, promoter or sponsor of the Partnership, CMF, or any other trading advisor. The Advisor shall not
be responsible to the Partnership, CMF, any trading advisor or any limited partners or any other person whatsoever for any acts or omissions of any other trading advisor to the Partnership. 

3. COMPENSATION. (a) In consideration of and as compensation for all of the services to be rendered by the Advisor to the
Partnership under this Agreement, the Partnership shall pay the Advisor (i) an incentive fee payable quarterly equal to 20% of New Trading Profits (as such term is defined below) earned by the Advisor for the Partnership (the “Incentive
Fee”) and (ii) a monthly fee for professional management services equal to 0.75% per year of the beginning of the month Net Asset Value of the Partnership allocated to the Advisor (computed monthly by multiplying the Partnership’ Net
Asset Value allocated to the Advisor as of the first day of each calendar month, commencing with the month in which the Partnership begins to receive trading advice from the Advisor pursuant to this Agreement,by 0.75% and dividing the result thereof
by 12) (the “Management Fee”). 
 (b) “Net Asset Value of the Partnership” shall have the meaning set forth in
Section 7(d)(1) of the Partnership Agreement and, unless the Advisor consents in writing, without regard to further amendments thereto, provided that in determining the Net Asset Value of the Partnership on any date, no adjustment shall be made
to reflect any distributions, redemptions, administrative fees or incentive fees accrued or payable as of the date of such determination. 

(c) “New Trading Profits” shall mean the excess, if any, of the Net Asset Value of the Partnership managed by the Advisor at the end
of the fiscal period over Net Asset Value of the Partnership managed by the Advisor at the end of the highest previous fiscal period or Net Asset Value of the Partnership allocated to the Advisor at the date trading commences by the Advisor for the
Partnership, whichever is higher, and as further adjusted to eliminate the effect on the Net Asset Value of the Partnership resulting from new capital contributions, redemptions, reallocations or capital distributions, if any, made during the fiscal
period decreased by interest or other income, not directly related to trading activity, earned on the Partnership’ assets during the fiscal period, whether the assets are held separately or in margin accounts. Ongoing expenses shall be
attributed to the Advisor based on the Advisor’s proportionate share of the Net Asset Value of the Partnership. Ongoing expenses shall not include expenses of litigation not involving the activities of the Advisor on behalf of the Partnership.
No Incentive Fee shall be paid to the Advisor until the end of the first full calendar quarter of the Advisor’s trading for the Partnership, which Incentive Fee shall be based on New Trading Profits (if any) earned from the commencement of
trading by the Advisor on behalf of 

  
 - 4 - 

 
the Partnership through the end of the first full calendar quarter of such trading. Interest income earned, if any, will not be taken into account in computing New Trading Profits earned by the
Advisor. If the Net Asset Value of the Partnership allocated to the Advisor is reduced due to redemptions, distributions or reallocations (net of additions), there will be a corresponding proportional reduction in the related loss carryforward
amount that must be recouped before the Advisor is eligible to receive another Incentive Fee. 
 (d) Quarterly Incentive Fees and monthly
Management Fees shall be paid within twenty (20) business days following the end of the period for which such fee is payable. In the event of the termination of this Agreement as of any date which shall not be the end of a calendar quarter or a
calendar month, as the case may be, the quarterly Incentive Fee shall be computed as if the effective date of termination were the last day of the then current quarter and the monthly Management Fee shall be prorated to the effective date of
termination. If, during any month, the Partnership does not conduct business operations or the Advisor is unable to provide the services contemplated herein for more than two successive business days, the monthly Management Fee may, at CMF’s
discretion, be prorated by the ratio which the number of business days during which CMF conducted the Partnership’ business operations or utilized the Advisor’s services bears in the month to the total number of business days in such
month. 
 (e) The provisions of this Section 3 shall survive the termination of this Agreement. 

4. RIGHT TO ENGAGE IN OTHER ACTIVITIES. (a) The services provided by the Advisor hereunder are not to be deemed exclusive. CMF on
its own behalf and on behalf of the Partnership acknowledges that, subject to the terms of this Agreement, the Advisor and its officers, directors, employees and shareholder(s) may render advisory, consulting and management services to other clients
and accounts. The Advisor and its officers, directors, employees and shareholder(s) shall be free to trade for their own accounts and to advise other investors and manage other commodity accounts during the term of this Agreement and to use the same
information, computer programs and trading strategies, programs or formulas which they obtain, produce or utilize in the performance of services to CMF for the Partnership. However, the Advisor represents, warrants and agrees that it believes the
rendering of such consulting, advisory and management services to other accounts and entities will not require any material change in the Advisor’s basic trading strategies for the Partnership and will not affect the capacity of the Advisor to
continue to render services to CMF for the Partnership of the quality and nature contemplated by this Agreement. 
 (b) If, at any time
during the term of this Agreement, the Advisor is required to aggregate the Partnership’ commodity positions with the positions of any other person for purposes of applying CFTC- or exchange-imposed speculative position limits, the Advisor agrees that it will promptly notify CMF in writing if the Partnership’s positions are included in an aggregate amount which exceeds the applicable
speculative position limit. The Advisor agrees that, if its trading recommendations are altered because of the application of any speculative position limits, it will not modify the trading instructions with respect to the Partnership’ account
in such manner as to affect the Partnership substantially disproportionately as compared with the Advisor’s other accounts. The Advisor further represents, warrants and agrees that under no circumstances will it knowingly or deliberately use
trading programs, 

  
 - 5 - 

 
strategies or methods for the Partnership that are inferior to strategies or methods employed for any other client or account and that it will not knowingly or deliberately favor any client or
account managed by it over any other client or account in any manner, it being acknowledged, however, that different trading programs, strategies or methods may be utilized for differing sizes of accounts, accounts with different trading policies or
risk parameters, accounts experiencing differing inflows or outflows of equity, accounts that commence trading at different times, accounts that have different portfolios or different fiscal years, accounts utilizing different executing brokers and
accounts with other differences, and that such differences may cause divergent trading results. 
 (c) It is acknowledged that the Advisor
and/or its officers, employees, directors and shareholder(s) presently act, and it is agreed that they may continue to act, as advisor for other accounts managed by them, and may continue to receive compensation with respect to services for such
accounts in amounts which may be more or less than the amounts received from the Partnership. 
 (d) The Advisor agrees that it shall make
such information available to CMF respecting the performance of the Partnership’ account as compared to the performance of other commodity interest trading accounts managed by the Advisor or its principals, if any, as shall be reasonably
requested by CMF. The Advisor presently believes and represents that existing speculative position limits will not materially adversely affect its ability to manage the Partnership’ account given the potential size of the Partnership’
account and the Advisor’s and its principals’ current accounts and all proposed accounts for which they have contracted to act as trading advisor. 

5. TERM. (a) This Agreement shall continue in effect until July 31, 2018 (the “Initial Termination Date”). If this
Agreement is not terminated on the Initial Termination Date, as provided for herein, then, this Agreement shall automatically renew for an additional one-year period and shall continue to renew for additional one-year periods until this Agreement is otherwise terminated, as provided for herein. At any time during the term of this Agreement, CMF may terminate this Agreement upon 5 days’ notice to the Advisor. At any
time during the term of this Agreement, CMF may elect to immediately terminate this Agreement if (i) the Net Asset Value of the Partnership shall decline as of the close of business on any day to $4.00 or less; (ii) the Net Asset Value of
the Partnership allocated to the Advisor (adjusted for redemptions, distributions, withdrawals or reallocations, if any) declines by 20% or more as of the end of a trading day from the previous highest value of the Partnership’ Net Asset Value;
(iii) limited partners owning not less than a “Majority of Units in the Partnership” (as defined in Section 5(a)(1) of the Partnership Agreement) shall vote to require CMF to terminate this Agreement; (iv) the Advisor fails
to comply with the terms of this Agreement; (v) CMF, in good faith, reasonably determines that the performance of the Advisor has been such that CMF’s fiduciary duties to the Partnership require CMF to terminate this Agreement;
(vi) CMF reasonably believes that the application of speculative position limits will substantially affect the performance of the Partnership; (vii) the Advisor fails to conform to the trading policies set forth in Appendix A or Appendix B
as they may be changed from time to time; (viii) the Advisor merges, consolidates with another entity, sells a substantial portion of its assets, or becomes bankrupt or insolvent; (ix) Jamie Charles dies, becomes incapacitated, leaves the
employ of the Advisor, ceases to control the Advisor or is otherwise not managing the trading programs or 

  
 - 6 - 

 
systems of the Advisor; (x) the Advisor’s registration as a commodity trading advisor with the CFTC or its membership in the NFA or any other regulatory authority, is terminated or
suspended; or (xi) CMF reasonably believes that the Advisor has or may contribute to any material operational, business or reputational risk to CMF or CMF’s affiliates. This Agreement will immediately terminate upon dissolution of the
Partnership or upon cessation of trading by the Partnership prior to dissolution. 
 (b) The Advisor may terminate this Agreement by giving
not less than 30 days’ notice to CMF (i) after July 31, 2018; or (ii) in the event that CMF or the Partnership fails to comply with the terms of this Agreement. The Advisor may immediately terminate this Agreement if CMF’s
registration as a commodity pool operator or its membership in NFA is terminated or suspended. 
 (c) Except as otherwise provided in this
Agreement, any termination of this Agreement in accordance with this Section 5 shall be without penalty or liability to any party, except for any fees due to the Advisor pursuant to Section 3 hereof. 

6. INDEMNIFICATION. (a)(i) In any threatened, pending or completed action, suit, or proceeding to which the Advisor was or is a party or
is threatened to be made a party arising out of or in connection with this Agreement or the management of the Partnership’ assets by the Advisor or the offering and sale of Units in the Partnership, CMF shall, subject to subsection (a)(iii) of
this Section 6, indemnify and hold harmless the Advisor against any loss, liability, damage, fine, penalty, obligation, cost, expense (including, without limitation, attorneys’ and accountants’ fees, collection fees, court costs and
other reasonable legal expenses), judgments and awards and amounts paid in settlement actually and reasonably incurred by it in connection with such action, suit, or proceeding if the Advisor acted in good faith and in a manner reasonably believed
to be in or not opposed to the best interests of the Partnership, and provided that its conduct did not constitute negligence, bad faith, recklessness, intentional misconduct, or a breach of its fiduciary obligations to the Partnership as a
commodity trading advisor, unless and only to the extent that the court or administrative forum in which such action or suit was brought shall determine upon application that, despite the adjudication of liability but in view of all circumstances of
the case, the Advisor is fairly and reasonably entitled to indemnity for such expenses which such court or administrative forum shall deem proper; and further provided that no indemnification shall be available from the Partnership if such
indemnification is prohibited by Section 14 of the Partnership Agreement. The termination of any action, suit or proceeding by judgment, order or settlement shall not, of itself, create a presumption that the Advisor did not act in good faith
and in a manner reasonably believed to be in or not opposed to the best interests of the Partnership. 
 (ii) Without limiting subsection
(i) above, to the extent that the Advisor has been successful on the merits or otherwise in defense of any action, suit or proceeding referred to in subsection (i) above, or in defense of any claim, issue or matter therein, CMF shall
indemnify the Advisor against the expenses (including, without limitation, attorneys’ and accountants’ fees) actually and reasonably incurred by it in connection therewith. 

  
 - 7 - 

 (iii) Any indemnification under subsection (i) above, unless ordered by a court or
administrative forum, shall be made by CMF only as authorized in the specific case and only upon a determination by independent legal counsel in a written opinion that such indemnification is proper in the circumstances because the Advisor has met
the applicable standard of conduct set forth in subsection (i) above. Such independent legal counsel shall be selected by CMF in a timely manner, subject to the Advisor’s approval, which approval shall not be unreasonably withheld. The
Advisor will be deemed to have approved CMF’s selection unless the Advisor notifies CMF in writing, received by CMF within five days of CMF’s telecopying to the Advisor of the notice of CMF’s selection, that the Advisor does not
approve the selection. 
 (iv) In the event the Advisor is made a party to any claim, dispute or litigation or otherwise incurs any loss or
expense as a result of, or in connection with, the Partnership’ or CMF’s activities or claimed activities unrelated to the Advisor, CMF shall indemnify, defend and hold harmless the Advisor against any loss, liability, damage, fine,
penalty, obligation, cost or expense (including, without limitation, attorneys’ and accountants’ fees) actually and reasonably incurred by it in connection therewith. 

(v) As used in this Section 6(a), the term “Advisor” shall include the Advisor, its principals, officers, directors,
shareholder(s) and employees and the term “CMF” shall include the Partnership. 
 (b) (i) The Advisor agrees to indemnify, defend
and hold harmless CMF, the Partnership and their affiliates against any loss, liability, damage, fine, penalty, obligation, cost or expense (including, without limitation, attorneys’ and accountants’ fees, collection fees, court costs and
other legal expenses), judgments and awards and amounts paid in settlement reasonably incurred by them (A) as a result of the breach of any representations, warranties or covenants made by the Advisor in this Agreement, or (B) as a result
of any act or omission of the Advisor relating to the Partnership if (1) there has been a final judicial or regulatory determination, or a written opinion of an arbitrator pursuant to Section 14 hereof, to the effect that such acts
or omissions violated the terms of this Agreement in any material respect or involved negligence, bad faith, recklessness or intentional misconduct on the part of the Advisor (except as otherwise provided in Section 1(g)), or
(2) there has been a settlement of any action or proceeding with the Advisor’s prior written consent. 
 (ii) In the event
CMF, the Partnership or any of their affiliates is made a party to any claim, dispute or litigation or otherwise incurs any loss or expense as a result of, or in connection with, the activities or claimed activities of the Advisor or its principals,
officers, directors, shareholder(s) or employees unrelated to CMF’s or the Partnership’ business, the Advisor shall indemnify, defend and hold harmless CMF, the Partnership or any of their affiliates against any loss, liability, damage,
fine, penalty, obligation, cost or expense (including, without limitation, attorneys’ and accountants’ fees, collection fees, court costs and other legal expenses), judgments, awards and amounts including amounts paid in settlement
incurred in connection therewith. 
 (c) In the event that a person entitled to indemnification under this Section 6 is made a party to
an action, suit or proceeding alleging both matters for which indemnification can be made hereunder and matters for which indemnification may not be made hereunder, such person shall be indemnified only for that portion of the loss, liability,
damage, cost or expense incurred in such action, suit or proceeding which relates to the matters for which indemnification can be made. 

  
 - 8 - 

 (d) None of the indemnifications contained in this Section 6 shall be applicable with
respect to default judgments, confessions of judgment or settlements entered into by the party claiming indemnification without the prior written consent, which shall not be unreasonably withheld or delayed, of the party obligated to indemnify such
party. 
 (e) The provisions of this Section 6 shall survive the termination of this Agreement. 

7. REPRESENTATIONS, WARRANTIES AND AGREEMENTS. 

(a) The Advisor represents and warrants that: 

(i) All information with respect to the Advisor and its principals and the trading performance of any of them that has been provided to CMF,
including, without limitation, the description of the Program contained in Appendix A, is complete and accurate in all material respects and such information does not contain any untrue statement of a material fact or omit to state a material
fact which is necessary to make the statements and information not misleading. 
 (ii) The Advisor will be acting as a commodity trading
advisor with respect to the Partnership and not as a securities investment adviser and is duly registered with the CFTC as a commodity trading advisor, is a member of the NFA, and is in compliance with any such other registration and licensing
requirements as shall be necessary to enable it to perform its obligations hereunder. The Advisor agrees to maintain and renew such registrations and licenses during the term of this Agreement. 

(iii) The Advisor is a limited liability company duly organized, validly existing and in good standing under the laws of the State of Delaware
and has full corporate power and authority to enter into this Agreement and to provide the services required of it hereunder. 
 (iv) The
Advisor will not, by acting as a commodity trading advisor to the Partnership, breach or cause to be breached any undertaking, agreement, contract, statute, rule or regulation to which it is a party or by which it is bound. 

(v) This Agreement has been duly and validly authorized, executed and delivered by the Advisor and is a valid and binding agreement
enforceable in accordance with its terms. 
 (vi) At any time during the term of this Agreement that an offering memorandum or prospectus
relating to the Partnership is required to be delivered in connection with the offer and sale thereof, the Advisor agrees upon the request of CMF to promptly provide the Partnership with such information as shall be necessary so that, as to the
Advisor and its principals, such offering memorandum or prospectus is accurate. 

  
 - 9 - 

 (b) CMF represents and warrants for itself and the Partnership that: 

(i) CMF is a limited liability company duly organized, validly existing and in good standing under the laws of the State of Delaware and has
full limited liability company power and authority to perform its obligations under this Agreement. 
 (ii) CMF and the Partnership have the
capacity and authority to enter into this Agreement on behalf of the Partnership. 
 (iii) This Agreement has been duly and validly
authorized, executed and delivered on CMF’s and the Partnership’ behalf and is a valid and binding agreement of CMF and the Partnership enforceable in accordance with its terms. 

(iv) CMF will not, by acting as general partner to the Partnership and the Partnership will not, breach or cause to be breached any
undertaking, agreement, contract, statute, rule or regulation to which it is a party or by which it is bound which would materially limit or affect the performance of its duties under this Agreement. 

(v) CMF is registered as a commodity pool operator and is a member of NFA and is in compliance with any such other registration and licensing
requirements as shall be necessary to enable it to perform its obligations hereunder, and it will maintain and renew such registrations and membership during the term of this Agreement. 

(vi) The Partnership is a limited partnership duly organized and validly existing under the laws of the State of Delaware and has full limited
partnership power and authority to enter into this Agreement and to perform its obligations under this Agreement. 
 (vii) The Partnership
is a “qualified eligible person” as defined in CFTC Rule 4.7 under the Commodity Exchange Act, as amended. 
 8. COVENANTS OF
THE ADVISOR, CMF AND THE PARTNERSHIP. 
 (a) The Advisor agrees as follows: 

(i) In connection with its activities on behalf of the Partnership, the Advisor will comply with all applicable laws, including rules and
regulations of the CFTC, NFA swap execution facility and/or the commodity exchange on which any particular transaction is executed. 
 (ii)
The Advisor will promptly notify CMF of the commencement of any investigation, suit, action or proceeding involving the Advisor or any of its affiliates, officers, shareholder(s), employees, agents or representatives; regardless of whether such
investigation, suit, action or proceeding also involves CMF. The Advisor will provide CMF with copies of any correspondence (including, but not limited to, any notices or correspondence regarding the violation, or potential violation, of position
limits) from or to the CFTC, NFA or any commodity exchange in connection with an investigation or audit of the Advisor’s business activities. 

  
 - 10 - 

 (iii) In the placement of orders for the Partnership’ account and for the accounts of any
other client, the Advisor will utilize a pre-determined, systematic, fair and reasonable order entry system, which shall, on an overall basis, be no less favorable to the Partnership than to any other
commodity interest trading account managed by the Advisor. The Advisor acknowledges its obligation to review the Partnership’ positions, prices and equity in the account managed by the Advisor daily and within two business days to notify, in
writing, the broker and CMF and the Partnership’ brokers of (A) any error committed by the Advisor or its principals or employees; (B) any trade which the Advisor believes was not executed in accordance with its instructions; and
(C) any discrepancy with a value of $10,000 or more (due to differences in the positions, prices or equity in the account) between its records and the information reported on the account’s daily and monthly broker statements. 

(iv) The Advisor or its Principal owners will maintain a net worth of not less than $250,000 during the term of this Agreement. 

(v) The Advisor will use its best efforts to close out all futures positions prior to any applicable delivery period, and will use its best
efforts to avoid causing the Partnership to take delivery of any commodity. 
 (b) CMF agrees for itself and the Partnership that: 

(i) CMF and the Partnership will comply with all applicable laws, including rules and regulations of the CFTC, NFA, swap execution facility
and/or the commodity exchange on which any particular transaction is executed. 
 (ii) CMF will promptly notify the Advisor of the
commencement of any material suit, action or proceeding involving it or the Partnership, whether or not such suit, action or proceeding also involves the Advisor. 

9. COMPLETE AGREEMENT. This Agreement constitutes the entire agreement between the parties pertaining to the subject matter hereof. 

10. ASSIGNMENT. This Agreement may not be assigned by any party without the express written consent of the other parties. 

11. AMENDMENT. This Agreement may not be amended except by the written consent of the parties. 

12. NOTICES. All notices, demands or requests required to be made or delivered under this Agreement shall be effective upon actual
receipt and shall be made either by electronic mail (email) copy or in writing and delivered personally or by registered or certified mail or expedited courier, return receipt requested, postage prepaid, to the addresses below or to such other
addresses as may be designated by the party entitled to receive the same by notice similarly given: 

  
 - 11 - 

 If to CMF or to the Partnership: 

Ceres Managed Futures LLC 
 522
Fifth Avenue, 
 New York, New York 10036 

Attention: Patrick Egan 
 Email:
Patrick.Egan@morganstanley.com 
 If to the Advisor: 

Greenwave Capital Management LLC 

Attention: 
 Email: 

13. GOVERNING LAW. This Agreement shall be governed by and construed in accordance with the laws of the State of New York. 

14. ARBITRATION. The parties agree that any dispute or controversy arising out of or relating to this Agreement or the interpretation
thereof, shall be settled by arbitration in accordance with the rules, then in effect, of NFA or, if NFA shall refuse jurisdiction, then in accordance with the rules, then in effect, of the American Arbitration Association; provided,
however, that the power of the arbitrator shall be limited to interpreting this Agreement as written and the arbitrator shall state in writing his reasons for his award, and further provided, that any such arbitration shall occur within the
Borough of Manhattan in New York City. Judgment upon any award made by the arbitrator may be entered in any court of competent jurisdiction. 

15. NO THIRD PARTY BENEFICIARIES. There are no third party beneficiaries to this Agreement, except that certain persons not parties to
this Agreement may have rights under Section 6 hereof. 
 16. COUNTERPARTS. This Agreement may be executed in any number of
counterparts, including via facsimile or email, each of which is an original and all of which when taken together evidence the same agreement. 

  
 - 12 - 

 PURSUANT TO AN EXEMPTION FROM THE COMMODITY FUTURES TRADING COMMISSION IN CONNECTION WITH ACCOUNTS OF
QUALIFIED ELIGIBLE PERSONS, THIS ACCOUNT DOCUMENT IS NOT REQUIRED TO BE, AND HAS NOT BEEN, FILED WITH THE COMMISSION. THE COMMODITY FUTURES TRADING COMMISSION DOES NOT PASS UPON THE MERITS OF PARTICIPATING IN A TRADING PROGRAM OR UPON THE ADEQUACY
OR ACCURACY OF COMMODITY TRADING ADVISOR DISCLOSURE. CONSEQUENTLY, THE COMMODITY FUTURES TRADING COMMISSION HAS NOT REVIEWED OR APPROVED THIS TRADING PROGRAM OR THIS ACCOUNT DOCUMENT. 

YOU SHOULD ALSO BE AWARE THAT THIS COMMODITY TRADING ADVISOR MAY ENGAGE IN TRADING FOREIGN FUTURES OR OPTIONS CONTRACTS. TRANSACTIONS ON MARKETS LOCATED
OUTSIDE THE UNITED STATES, INCLUDING MARKETS FORMALLY LINKED TO A UNITED STATES MARKET MAY BE SUBJECT TO REGULATIONS WHICH OFFER DIFFERENT OR DIMINISHED PROTECTION. FURTHER, UNITED STATES REGULATORY AUTHORITIES MAY BE UNABLE TO COMPEL THE
ENFORCEMENT OF THE RULES OF REGULATORY AUTHORITIES OR MARKETS IN NON-UNITED STATES JURISDICTIONS WHERE YOUR TRANSACTIONS MAY BE EFFECTED. 

[THE REMAINDER OF THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK] 

  
 - 13 - 

 IN WITNESS WHEREOF, this Agreement has been executed for and on behalf of the undersigned as of
the day and year first above written. 
  

			
	CERES MANAGED FUTURES LLC
		
	By	 	 /s/ Patrick T. Egan

		 	Patrick T. Egan
		 	President and Director
	
	CERES TACTICAL CURRENCY L.P.
		
	By:	 	 Ceres Managed Futures LLC
 (General
Partner)

		
	By	 	 /s/ Patrick T. Egan

		 	 Patrick T. Egan
 President and
Director

	
	GREENWAVE CAPITAL MANAGEMENT LLC
		
	By	 	 /s/ John Apperson

		 	Name: John Apperson
		 	Title: COO

  
 - 14 - 

 Appendix A 

Greenwave’s Flagship Plus Program employs a discretionary global macro approach with an emphasis on G20 currencies. Greenwave incorporates a two step
investment process. It begins with top down, macroeconomic analysis to determine the fundamental themes in which to engage. The goal is to identify the dominant drivers in the current market environment with a focus on central bank activity,
political trends and geopolitical events. From this, Greenwave develops fundamental themes typically looking six to twelve months forward. 
 In the second
step, Greenwave employs a multi-layered quantitative process to identify the optimal timing and trade location at which to deploy risk in these themes. While themes are typically six to twelve months in duration, Greenwave will tactically trade
around these core exposures. In addition, Greenwave will take shorter term tactical trades based purely on technical analysis when the opportunity presents itself. 

  
 - 15 - 

 Appendix B 

The Partnership and the Advisor will follow the trading policies set forth below: 

1. The Partnership will invest its assets only in commodity interests that the Advisor believes are traded in sufficient volume to permit ease of taking and
liquidating positions. Sufficient volume, in this context, refers to a level of liquidity that the Advisor believes will permit it to enter and exit trades without noticeably moving the market. 

2. The Advisor will not initiate additional positions in any commodity interest if these positions would result in aggregate positions requiring margin of more
than 66 2/3% of the Partnership’ net assets allocated to the Advisor. To the extent the CFTC and/or exchanges have not otherwise established margin requirements with respect to particular contracts (i) forward contracts in currencies
will be deemed to have approximately the same margin requirements as the same or similar futures contracts traded on the Chicago Mercantile Exchange and (ii) swap contracts will be deemed to have margin requirements equivalent to the collateral
deposits, if any, made with swap counterparties. 
 3. The Partnership may occasionally accept delivery of a commodity. Unless such delivery is disposed of
promptly by retendering the warehouse receipt representing the delivery to the appropriate clearinghouse, the physical commodity position will be fully hedged. 

4. The Advisor will not employ the trading technique commonly known as “pyramiding,” in which the speculator uses unrealized profits on existing
positions as margin for the purchase or sale of additional positions in the same or related commodities. 
 5. The Partnership will not utilize borrowings
except short-term borrowings if the Partnership takes delivery of any cash commodities. 
 6. The Advisor may, from time to time, employ trading strategies
such as spreads or straddles on behalf of the Partnership. The term “spread” or “straddle” describes a commodity futures trading strategy including the simultaneous holding of futures contracts on the same commodity but involving
different delivery dates or markets and in which the trader expects to earn a profit from a widening or narrowing of the difference between the prices of the two contracts. 

7. The Partnership will not permit, and the Advisor will not engage in, the churning of its commodity trading accounts. The term “churning” refers to
the practice of entering and exiting trades with a frequency unwarranted by legitimate efforts to profit from the trades, driven by the desire to generate commission income. 

The program(s) traded by the Advisor on behalf of the Partnership are (collectively, the “Programs”) which are described in Appendix A. As described
by the Advisor in Appendix A, the Programs currently combine three types of decision-making tools. 

  
 - 16 -

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