Document:

Exhibit 10.11

 

SECURITIES PURCHASE AGREEMENT

 

This SECURITIES
PURCHASE AGREEMENT (this “Agreement”), dated as of March 17, 2015 (the “Effective Date”),
is by and among Mears Technologies, Inc., a Delaware corporation (the “Company”),
and the investors that have executed this Agreement and are listed on the Schedule of Buyers, attached hereto as Exhibit
A (individually, a “Buyer” and collectively, the “Buyers”).

 

RECITALS

 

A.           The
Company and each Buyer is executing and delivering this Agreement in reliance upon the exemption from securities registration
afforded by Section 4(a)(2) of the Securities Act of 1933, as amended (the “1933 Act”), and Rule 506 of Regulation
D (“Regulation D”), as promulgated by the United States Securities and Exchange Commission (the “SEC”)
under the 1933 Act.

 

B.           The
Company has authorized the issuance of senior secured convertible notes in the aggregate original principal amount of up to $12,752,667,
and reserves the right to issue additional senior secured convertible notes in the aggregate original principal amount of up to
$2,000,000, in the form attached hereto as Exhibit B (the “Notes”), which Notes shall be convertible
into shares of Common Stock (as defined in the Notes) (as converted, collectively, the “Conversion Shares”),
in accordance with the terms of the Notes.

 

C.           Prior
to the date hereof, the Company issued senior convertible notes having an aggregate principal amount of $7,349,226.24 (the “Old
MTI Convertible Notes”) to certain of the Buyers (the “Earlier Investors”).

 

D.           Each
Buyer wishes to purchase or acquire through an exchange of its Old MTI Convertible Notes, as applicable, and the Company wishes
to sell or exchange, as applicable, upon the terms and conditions stated in this Agreement, the aggregate original principal amount
of the Notes set forth opposite such Buyer’s name in column (2) on the Schedule of Buyers.

 

E.           At
the Closing, the parties hereto shall execute and deliver a Registration Rights Agreement, in the form attached hereto as Exhibit
C (the “Registration Rights Agreement”),
pursuant to which the Company has agreed to provide certain registration rights with respect to the Registrable Securities (as
defined in the Registration Rights Agreement), under the 1933 Act and the roles and regulations promulgated thereunder, and applicable
state securities laws.

 

F.           In
connection with the Offering, the Company, together with National Securities Corporation (the “Placement Agent”),
have entered into an escrow agreement, in the form attached hereto as Exhibit D (the “Escrow Agreement”),
with U.S. Bank National Association (the (“Escrow Agent”), to hold the Purchase Price (as hereinafter defined), to
be released at the Closing to the Company, upon the written consent of the Company and the Placement Agent.

 

G.           The
Notes and the Conversion Shares are collectively referred to herein as the “Securities.”

 

     

     

    

  

H.           The
Notes will be secured by a first priority perfected security interest in all or substantially all of the assets of the Company
as evidenced by a security agreement in the form attached hereto as Exhibit E (the “Security Agreement”
and together with the other security documents and agreements entered into in connection with this Agreement and each of such other
documents and agreements, as each may be amended or modified from time to time, collectively, the “Security Documents”).

 

AGREEMENT

 

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

 

		1.	PURCHASE AND SALE OF NOTES.

 

(a)          Notes   Subject
to the satisfaction (or waiver) of the conditions set forth in Sections 6 and 7 below, the Company shall issue to each Buyer, and
each Buyer severally, but not jointly, shall purchase or acquire through an exchange of one or more Old MTI Convertible Notes from
the Company on the Closing Date (as defined below), a Note in the original principal amount as is set forth opposite such Buyer’s
name in column (2) on the Schedule of Buyers.

 

(b)          Closing.
The closing (the “Closing”) of the purchase or exchange of the Notes by the Buyers shall occur at the offices
of WilmerHale, LLP, 60 State Street, Boston, MA 02109. The date and time of the Closing (the “Closing Date”)
shall be 11:00 a.m., Boston time, on the first Business Day on which the conditions to the Closing set forth in Sections
6 and 7 below are satisfied or waived (or such later date as is mutually agreed to by the Company and each Buyer). As used herein
“Business Day” means any day other than a Saturday, Sunday or other day on which commercial banks in Boston,
Massachusetts are authorized or required by law to remain closed.

 

(c)          Purchase
Price. The purchase price for each Note to be purchased by each Buyer (the “Purchase Price”) shall be equal
to the original principal amount of the Note set forth opposite such Buyer’s name in column (2) on the Schedule of Buyers.

 

(d)          Payment
of Purchase Price; Delivery of Notes. On the Closing Date, (i) each Buyer shall pay its respective Purchase Price to the Company
through the Escrow Agent for their respective Note to be issued and sold to such Buyer at the Closing, and (ii) the Company shall
deliver to each Buyer a Note (in such amount as is set forth opposite such Buyer’s name in column (2) on the Schedule of Buyers),
in all cases, duly executed on behalf of the Company and registered in the name of such Buyer or its designee.

 

(e)          Exchange
of Old MTI Convertible Notes. Any Earlier Investor may satisfy all or a portion of the Purchase Price of the Note or
Notes to be issued to such Earlier Investor in the Closing by tendering to the Company for exchange an Old MTI Convertible Note,
with the amount of the outstanding principal balance of such Old MTI Convertible Note credited on a dollar-for-dollar basis to
the Purchase Price of such Note. All accrued and unpaid interest on Old MTI Convertible Note will carry forward and be applied
to the purchase price of the Note. Concurrently with the issuance by the Company of a Note to an Earlier Investor electing to exchange
an Old MTI Convertible Note, such Earlier Investor shall deliver to the Escrow Agent the original of such Old MTI Convertible Note
duly endorsed over to the Company.

 

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		2.	BUYER’S REPRESENTATIONS AND WARRANTIES.

 

Each Buyer represents
and warrants to the Company with respect to only itself that:

 

(a)          Organization;
Authority. Such Buyer (i) if an entity, is duly organized, validly existing and in good standing under the laws of the jurisdiction
of its organization with the requisite power and authority to enter into and to consummate the transactions contemplated by the
Transaction Documents (as defined below) to which it is a party and otherwise to carry out its obligations hereunder and thereunder,
or (ii) if an individual, has the legal capacity to enter into and to consummate the transactions contemplated by the Transaction
Documents to which it is a party and otherwise to carry out its obligations hereunder and thereunder.

 

(b)          No
Public Sale or Distribution. Such Buyer (i) is acquiring its Note, and (ii) upon conversion of its Note will acquire the Conversion
Shares issuable upon conversion thereof, in each case, for its own account and not with a view towards, or for resale in connection
with, the public sale or distribution thereof in violation of applicable
securities laws, except pursuant to sales registered or exempted under the 1933 Act; provided, however, by making the representations
herein, such Buyer does not agree, or make any representation or warranty, to hold any of the Securities for any minimum’ or other
specific term and reserves the right to dispose of the Securities at any time in accordance with or pursuant to a registration
statement or an exemption under the 1933 Act. Such Buyer does not presently have any agreement or understanding, directly or indirectly,
with any Person (as defined below) to distribute any of the Securities in violation of applicable securities laws.

 

(c)          Accredited
Investor Status. Such Buyer is an “accredited investor” as that term is defined in Rule 501(a) of Regulation D.

 

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

 

(e)          Information.
Such Buyer and its advisors, if any, have been furnished with the Company’s private placement memorandum dated February 18, 2015
(the “Private Placement Memorandum”) and with
all other materials relating to the business, finances and operations of the Company and materials relating to the offer and sale
of the Securities which have been requested by such Buyer. Such Buyer and its advisors, if any, have been afforded the opportunity
to ask questions of the Company. Such Buyer understands that its investment in the Securities involves a high degree of risk.
Such Buyer 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 Securities.

 

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(f)          No
Governmental Review. Such Buyer understands that no United States federal or state agency or any other government or governmental
agency has passed on or made any recommendation or endorsement of the Securities or the fairness or suitability of the investment
in the Securities nor have such authorities passed upon or endorsed the merits of the offering of the Securities.

 

(g)          Transfer
or Resale. Such Buyer understands that except as provided in the Registration Rights Agreement or Section 4(h) hereof: (i)
the Securities have not been and are not being registered under the 1933 Act or any state securities laws, and may not be offered
for sale, sold, assigned or transferred unless (A) subsequently registered thereunder, (B) such Buyer shall have delivered to the
Company (if requested by the Company) an opinion of counsel to such Buyer, in a form reasonably acceptable to the Company, to the
effect that such Securities to be sold, assigned or transferred may be sold, assigned or transferred pursuant to an exemption from
such registration, or (C) such Buyer provides the Company with reasonable assurance and documentation as may be requested by the
Company or its legal counsel that such Securities can be sold, assigned or transferred pursuant to Rule 144 or Rule 144A promulgated
under the 1933 Act (or a successor rule thereto) (collectively, “Rule 144”); (ii) any sale of the Securities
made in reliance on Rule 144 may be made only in accordance with the terms of Rule 144, and further, if Rule 144 is not applicable,
any resale of the Securities under circumstances in which the seller (or the Person through whom the sale is made) may be deemed
to be an underwriter (as that term is defined in the 1933 Act) may require compliance with some other exemption under the 1933
Act or the rules and regulations of the SEC promulgated thereunder; and (iii) neither the Company nor any other Person is under
any obligation to register the Securities under the 1933 Act or any state securities laws or to comply with the terms and conditions
of any exemption thereunder.

 

(h)          Validity;
Enforcement. This Agreement and the other Transaction Documents executed by the Buyer have been duly and validly authorized,
executed and delivered on behalf of such Buyer and constitutes the legal, valid and binding obligations of such Buyer enforceable
against such Buyer in accordance with their respective terms, except as such enforceability may  be limited by general principles
of equity or applicable bankruptcy, insolvency, reorganization, moratorium, liquidation and other similar laws relating to, or
affecting generally, the enforcement of applicable creditors’ rights and remedies.

 

(i)          No
Conflicts. The execution, delivery and performance by such Buyer of this Agreement and the other Transaction Documents
executed by the Buyer and the consummation by such Buyer of the transactions contemplated hereby and thereby will not (i)
result in a violation of the organizational documents of such Buyer, (ii) conflict with, or constitute a default (or an event
which with notice or lapse of time or both would become a default) under, or give to others any rights of termination,
amendment, acceleration or cancellation of, any agreement, indenture or instrument to which such Buyer is a party or (iii)
result in a violation of any law, rule, regulation, order, judgment or decree (including federal and state securities laws)
applicable to such Buyer, except in the case of clauses (ii) and (iii) above, for such conflicts, defaults, rights or
violations which would not, individually or in the aggregate, reasonably be expected to have a material adverse effect on the
ability of such Buyer to perform its obligations hereunder.

 

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(j)          Buyer’s
Principal Residence/Office. The address of Buyer’s principal residence, if Buyer is a natural Person, or principal office,
if Buyer is a non-natural Person, such as a corporation, limited liability company or other entity, is set forth on the Buyer’s
signature page hereto.

 

(k)          No
Engagements. Such Buyer has not engaged any brokers, finders or agents, and the Company has not, nor will, incur, directly
or indirectly, as a result of any action taken by such Buyer, any liability for brokerage or finders’ fees or agents’ commissions
or any similar charges in connection with the transactions consummated under this Agreement. Neither such Buyer, nor any of Buyer’s
officers, directors, employees, agents, stockholders or partners has either directly or indirectly, including through a broker
or finder: (i) engaged in or received any general solicitation or (ii) published or received any advertisement in connection with
the offer or sale of the Securities.

 

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		3.	REPRESENTATIONS AND WARRANTIES OF
THE COMPANY.

 

The Company represents
and warrants to each of the Buyers that, except as set forth on the Disclosure Letter (as defined below), which exceptions shall
be deemed to be part of the representations and warranties made hereunder, the following representations are true and complete
as of the Closing Date, except as otherwise indicated. The Disclosure Letter shall be arranged in sections corresponding to the
numbered and lettered sections and subsections contained in this Section 3 and certain other sections of this agreement,
and the disclosures in any section or subsection of the Disclosure Letter shall qualify other sections and subsections in this
Section 3 only to the extent it is readily apparent from a reading of the disclosure that such disclosure is applicable
to such other sections and subsections.

 

(a)          Organization
and Qualification. The Company is an entity duly organized and validly existing and in good standing under the laws of the
jurisdiction in which it is formed, and has the requisite power and authorization to own its properties and to carry on its business
as now being conducted and as presently proposed to be conducted. The Company is duly qualified as a foreign entity to do business
and is in good standing in every jurisdiction in which its ownership of property or the nature of the business conducted by it
makes such qualification necessary, except to the extent that the failure to be so qualified or be in good standing would not be
reasonably expected to have a Material Adverse Effect. “Material Adverse Effect” means any material adverse
effect on (i) the business, properties, assets, liabilities, operations (including results thereof) or condition (financial or
otherwise) of the Company, either individually or taken as a whole, (ii) the transactions contemplated hereby or in any of the
other Transaction Documents, or (iii) the authority or ability of the Company to perform any of its obligations under any of the
Transaction Documents. The Company has no Subsidiaries. “Subsidiaries” means any Person in which the Company,
directly or indirectly, owns a majority of the outstanding capital stock or holds any equity or similar interest of such Person,
and each of the foregoing, is individually referred to herein as a “Subsidiary.” Additionally, to the extent
that any Subsidiary is hereafter created, and the context of the provision of this Agreement would ordinarily include a Subsidiary,
then the term “Company” will be deemed to include such Subsidiary.

 

(b)          Authorization;
Enforcement; Validity. The Company has the requisite power and authority to enter into and perform its obligations under this
Agreement and the other Transaction Documents and to issue the Securities in accordance with the terms hereof and thereof. The
execution and delivery of this Agreement and the other Transaction Documents by the Company, and the consummation by the Company
of the transactions contemplated hereby and thereby (including, without limitation, the issuance of the Notes and the reservation
for issuance and issuance of the Conversion Shares issuable upon conversion of the Notes) have been duly authorized by the Company’s
board of directors or other governing body, as applicable, and (other than the filing with the SEC of one or more Registration
Statements (as defined in the Registration Rights Agreement) in accordance with the requirements of the Registration Rights Agreement,
a Form D with the SEC and any other filings as may be required by any state securities agencies) no further filing, consent or
authorization is required by the Company, its respective boards of directors or the stockholders or other governing body. This
Agreement has been, and the other Transaction Documents will be prior to the Closing, duly executed and delivered by the Company,
and each constitutes the legal, valid and binding obligations of the Company, enforceable against the Company in accordance with
its respective terms, except as such enforceability may be limited by general principles of equity or applicable bankruptcy, insolvency,
reorganization, moratorium, liquidation or similar laws relating to, or affecting generally, the enforcement of applicable creditors’
rights and remedies and except as rights to indemnification and to contribution may be limited by federal or state securities
law. “Transaction Documents” means, collectively, this Agreement, the Notes, the Security Documents,
the Registration Rights Agreement, the Irrevocable Transfer Agent Instructions (as defined in the Registration Rights Agreement)
and each of the other agreements and instruments entered into or delivered by any of the parties hereto in connection with the
consummation of the transactions contemplated hereby and thereby, as may be amended from time to time.

 

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(c)          Issuance
of Conversion Shares. The Conversion Shares, when issued in accordance with the terms of the Notes, will be validly issued,
fully paid and non-assessable and free from all preemptive or similar rights, taxes, liens, charges and other encumbrances with
respect to the issue thereof under the terms thereof, with the holders being entitled to all rights accorded to a holder of Common
Stock. The Company shall have reserved from its duly authorized capital stock not less than one hundred ten percent (110%) of the
maximum number of Conversion Shares issuable upon conversion of the Notes in accordance with their terms. Subject to the accuracy
of the representations and warranties of the Buyers in this Agreement, the offer and issuance by the Company of the Securities
is exempt from registration under the 1933 Act.

 

(d)          No
Conflicts. The execution, delivery and performance of the Transaction Documents by the Company and the consummation by the
Company of the transactions contemplated hereby and thereby (including, without limitation, the issuance of the Notes, the Conversion
Shares upon conversion of the Notes, the reservation for issuance of the Conversion Shares and the creation of the security interests
represented by the Security Documents) will not (i) result in a violation of the Certificate of Incorporation (as defined below)
(including, without limitation, any certificate of designation contained therein) or other organizational documents of the Company,
any capital stock of the Company or Bylaws (as defined below) of the Company, (ii) conflict with, or constitute a default (or
an event which with notice or lapse of time or both would become a default) under, or give to others any rights of termination,
amendment, acceleration or cancellation of, any agreement, indenture or instrument to which the Company is a party or (iii) result
in a violation of any law, rule, regulation, order, judgment or decree (including, without limitation, foreign, federal and state
securities laws and regulations) applicable to the Company or by which any property or asset of the Company is bound or affected
except, in the case of clause (ii) or (iii) above, to the extent such violations that could not reasonably be expected to have
a Material Adverse Effect.

 

(e)          Consents.
The Company is not required to obtain any consent from, authorization or order of, or make any filing or registration with (other
than the filing with the SEC of one or more Registration Statements in accordance with the requirements of the Registration Rights
Agreement, a Form D with the SEC and any other filings as may be required by any state securities agencies), any court, governmental
agency or any regulatory or self-regulatory agency or any other Person in order for it to execute, deliver or perform any of its
respective obligations under, or contemplated by, the Transaction Documents, in each case, in accordance with the terms hereof
or thereof. All consents, authorizations, orders, filings and registrations which the Company is required to obtain at or prior
to the Closing have been or will be obtained or made on or prior to the Closing Date, and the Company is not aware of any facts
or circumstances which might prevent the Company from obtaining or effecting any of the registration, application or filings contemplated
by the Transaction Documents.

 

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(f)          Acknowledgment
Regarding Buyer’s Purchase of Securities. The Company acknowledges that no Buyer 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 hereby
and thereby, and any advice given by a Buyer or any of its representatives or agents in connection with the Transaction Documents
and the transactions contemplated hereby and thereby is merely incidental to such Buyer’s purchase of the Securities. The Company
further represents to each Buyer that the Company’s decision to enter into the Transaction Documents to which it is a party has
been based solely on the independent evaluation by the Company and its respective representatives.

 

(g)          No
General Solicitation; Placement Agent’s Fees. Neither the Company nor any Person acting on its behalf, has engaged in any
form of general solicitation or general advertising (within the meaning of Regulation D) in connection with the offer or sale
of the Securities. The Company shall be responsible for the payment of any Placement Agent’s fees, financial advisory fees, or
brokers’ commissions (other than for Persons engaged by any Buyer or its investment advisor) relating to or arising out of the
transactions contemplated hereby. Other than the Placement Agent, to which a cash fee of 10% of the gross proceeds and a warrant
equal to 10% of the Conversion Shares (except those Conversion Shares related to the Old MTI Convertible Notes), the Company has
not engaged any placement agent or other broker or dealer in connection with the offer or sale of the Securities.

 

(h)          No
Integrated Offering. None of the Company or, to its knowledge, any of its affiliates, nor any Person acting on its 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 require registration of the issuance of any of the Securities under the 1933 Act, whether through integration with prior
offerings or otherwise, or cause this offering of the Securities to require approval of stockholders of the Company (other than
any required approval of holders of a majority of the outstanding common stock of the Company received before the Closing) under
any applicable stockholder approval provisions. None of the Company, nor its affiliates nor any Person acting on their behalf will
take any action or steps that would require registration of the issuance of any of the Securities under the 1933 Act or cause the
offering of any of the Securities to be integrated with other offerings of securities of the Company.

 

(i)          Dilutive
Effect. The Company understands and acknowledges that the number of Conversion Shares may increase in certain circumstances.
The Company further acknowledges that its obligation to issue the Conversion Shares upon conversion of the Notes in accordance
with this Agreement and the Notes is absolute and unconditional, regardless of the dilutive effect that such issuance may have
on the ownership interests of other stockholders of the Company.

 

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(j)          Application
of Takeover Protections; Rights Agreement. The Company and its board of directors have taken all necessary action, if any,
in order to render inapplicable any control share acquisition, interested stockholder, business combination, poison pill (including,
without limitation, any distribution under a rights agreement) or other similar anti-takeover provision under the Certificate of
Incorporation, Bylaws or other organizational documents which is or could become applicable to any Buyer as a result of the consummation
of the transactions contemplated by this Agreement, including, without limitation, the Company’s issuance of the Securities and
any Buyer’s ownership of the Securities. The Company and its board of directors have taken all necessary action, if any, in order
to render inapplicable any stockholder rights plan or similar arrangement relating to accumulations of beneficial ownership of
shares of Common Stock or a change in control of the Company.

 

(k)          Placement
Documents: Financial Statements. The Private Placement Memorandum provided to the Buyers in connection with the sale of the
Notes, at the time of the date thereon, as it may be amended from time to time, did 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 the
light of the circumstances under which they were made, not misleading. As of their respective dates, the financial statements of
the Company included in the private placement memorandum are unaudited and were not prepared in accordance with generally accepted
accounting principles, but fairly represented the financial position and results of the Company as of at and for the periods ended
on the dates of such financial statements. No other information provided by or on behalf of the Company to any of the Buyers taken
together with such Private Placement Memorandum contains any untrue statement of a material fact or omits to state any material
fact necessary in order to make the statements therein not misleading, in the light of the circumstance under which they are or
were made.

 

(l)         Absence
of Certain Changes. Since the date of the Company’s most recent financial statements contained in the Private Placement Memorandum
provided to the Buyers in connection with the sale of the Notes, there has been no material adverse change and no material adverse
development in the business, assets, liabilities, properties, operations (including results thereof) or condition (financial or
otherwise) of the Company. Since the date of the Company’s most recent financial statements contained in in the Private Placement
Memorandum provided to the Buyer in connection with the sale of the Notes, the Company has not (i) declared or paid any dividends
(whether by cash, property or securities), (ii) sold any assets, individually or in the aggregate, outside of the ordinary course
of business or (iii) made any capital expenditures, individually or in the aggregate, outside of the Ordinary course of business.
The Company has not taken any steps to seek protection pursuant to any law or statute relating to bankruptcy, insolvency, reorganization,
receivership, liquidation or winding up, nor does the Company have any knowledge or reason to believe that any of its creditors
intend to initiate involuntary bankruptcy proceedings or any actual knowledge of any fact which would reasonably lead a creditor
to do so. The Company is not as of the date hereof, and after giving effect .to the transactions contemplated hereby
to occur at the Closing, will not be Insolvent (as defined below). “Insolvent” means (i) the present fair saleable
value of the Company’s assets is less than the amount required to pay the Company’s total Indebtedness (as defined below) as it
becomes due, (ii) the Company is unable to pay its debts and liabilities, subordinated, contingent or otherwise, as such debts
and liabilities become absolute and matured or (iii) the Company intends to incur or believe that it will incur debts that would
be beyond its ability to pay as such debts mature.

 

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(m)          No
Material Adverse Effect. The Company has no knowledge of any event, liability, development or circumstance that has
occurred or exists, or that is reasonably expected to occur or exist with respect to the Company or any of its business,
properties, liabilities, operations (including results thereof) or condition (financial or otherwise), that would have a
Material Adverse Effect.

 

(n)          Conduct
of Business; Regulatory Permits. The Company is not in violation of any term of or in default under its Certificate of Incorporation
or Bylaws. The Company is not in violation of any judgment, decree or order or any statute, ordinance, rule or regulation applicable
to the Company, and the Company will not conduct its business in violation of any of the foregoing, except in all cases for possible
violations which could not, individually or in the aggregate, have a Material Adverse Effect. Except as set forth on Schedule
3(n) attached to the Disclosure Letter, the Company possess all certificates, authorizations and permits issued by the appropriate
regulatory authorities necessary to conduct their respective businesses, except where the failure to possess such certificates,
authorizations or permits would not have, individually or in the aggregate, a Material Adverse Effect, and the Company has not
received any notice of proceedings relating to the revocation or modification of any such certificate, authorization or permit.

 

(o)          Foreign
Corrupt Practices. The Company and none of its directors, officers, agents, employees or other Persons acting on behalf of
the Company has, in the course of its actions for, or on behalf of, the Company (i) used any corporate funds for any unlawful
contribution, gift, entertainment or other unlawful expenses relating to political activity; (ii) made any direct or indirect unlawful
payment to any foreign or domestic government official or employee from corporate funds; (iii) violated or is in violation of any
provision of the U.S. Foreign Corrupt Practices Act of 1977, as amended; or (iv) made any unlawful bribe, rebate, payoff, influence
payment, kickback or other unlawful payment to any foreign or domestic government official or employee.

 

(p)          Sarbanes-Oxley
Act. The Company is in compliance with all applicable requirements of the Sarbanes-Oxley Act of 2002 and all applicable rules
and regulations promulgated by the SEC thereunder.

 

(q)          Transactions
With Affiliates. Except as set forth on Schedule 3(q) attached to the Disclosure Letter and in the Private Placement
Memorandum provided to the Buyers in connection with the sale of the Notes, none of the officers, directors, employees or affiliates
of the Company is presently a party to any transaction with the Company (other than for ordinary course services as employees,
officers or directors and immaterial transactions), 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, or otherwise requiring payments to or from
any such officer, director, employee or affiliate or, to the knowledge of the Company, any corporation, partnership, trust or other
Person in which any such officer, director, employee or affiliate has a substantial interest or is an employee, officer, director,
trustee or partner.

 

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(r)          Equity
Capitalization. As of the date hereof, the authorized capital stock of the Company consists solely of 100,000,000 shares, consisting
of (i) 95,000,000 shares of Common Stock, of which 18,499,027 are issued and outstanding as of the Effective Date and (ii) 5,000,000
shares of Preferred Stock, of which no shares are issued or outstanding as of the Effective Date. No approval of the shareholders
is required for the issuance of the Notes or the Conversion Shares or any of the Convertible Securities. No shares of Common Stock
are held in treasury. All of the outstanding shares are duly authorized and have been, or upon issuance will be, validly issued
and are fully paid and non-assessable. All such shares of the Company’s issued and outstanding Common Stock on the date hereof,
except as disclosed on Schedule 3(r) attached to the Disclosure Letter, are not owned by Persons who are “affiliates”
(as defined in Rule 405 of the 1933 Act and calculated based on the assumption that only officers, directors and holders of at
least 10% of the Company’s issued and outstanding Common Stock are “affiliates” without conceding that any such Persons
are “affiliates” for purposes of federal securities laws) of the Company. To the Company’s knowledge, except as disclosed
on Schedule 3(r) attached to the Disclosure Letter, no Person owns 10% or more of the Company’s issued and outstanding shares of
Common Stock (calculated based on the assumption that all Convertible Securities, whether or not presently exercisable or convertible,
have been fully exercised or converted (as the case may be) taking account of any limitations on exercise or conversion (including
“blockers”) contained therein without conceding in the private placement documentation that such identified Person
is a 10% stockholder for purposes of federal securities laws). Except as set forth on Schedule 3(r) attached to the Disclosure
Letter, (i) none of the Company’s capital stock is subject to preemptive rights or any other similar rights or any liens or encumbrances
suffered or permitted by the Company; (ii) except as disclosed on Schedule 3(r) attached to the Disclosure Letter, there are no
outstanding options, warrants, scrip, rights to subscribe to, calls or commitments of any character whatsoever relating to, or
securities or rights convertible into, or exercisable or exchangeable for, any capital stock of the Company, or contracts, commitments,
understandings or arrangements by which the Company is or may become bound to issue additional capital stock of the Company or
options, warrants, scrip, rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities or
rights convertible into, or exercisable or exchangeable for, any capital stock of the Company; (iii) except for the Old MTI Convertible
Notes, there are no outstanding debt securities, notes, credit agreements, credit facilities or other agreements, documents or
instruments evidencing Indebtedness of the Company or by which the Company is or may become bound; (iv) there are no financing
statements securing obligations in any amounts filed in connection with the Company; (v) there are no agreements or arrangements
under which the Company is obligated to register the sale of any of their securities under the 1933 Act (except pursuant to the
Registration Rights Agreement and a warrant issued to the Placement Agent); (vi) there are no outstanding securities or instruments
of the Company by which the Company is or may become bound to redeem a security of the Company; (vii) there are no securities or
instruments containing anti-dilution or similar provisions that will be triggered by the issuance of the Securities; and (viii)
the Company has not issued any stock appreciation rights or “phantom stock” plans or agreements or any similar plan
or agreement. The Company has furnished to the Buyers true, correct and complete copies of the Company’s Certificate of Incorporation,
as amended and as in effect on the date hereof (the “Certificate of Incorporation”), and the Company’s bylaws,
as amended and as in effect on the date hereof (the “Bylaws”), and the terms of all securities convertible into,
or exercisable or exchangeable for, shares of Common Stock and the material rights of the holders thereof in respect thereto. “Convertible
Securities” means preferred stock, options, warrants or other securities directly or indirectly convertible into, exchangeable
for or exercisable for Common Stock of the Company.

 

    	 	11	 

     

    

  

(s)          Indebtedness
and Other Contracts. The Company, except as disclosed on Schedule 3(s) attached to the Disclosure Letter, (i) has no
outstanding Indebtedness (as defined below), (ii) is not a party to any contract, agreement or instrument, the violation of which,
or default under which, by the other party(ies) to such contract, agreement or instrument could reasonably be expected to result
in a Material Adverse Effect, (iii) is not in violation of any term of, or in default under; any contract, agreement or instrument
relating to any Indebtedness, except where such violations and defaults would not result, individually or in the aggregate, in
a Material Adverse Effect, and (iv) is not a party to any contract, agreement or instrument relating to any Indebtedness, the performance
of which, in the judgment of the Company’s officers, has or is expected to have a Material Adverse Effect. “Indebtedness”
of any Person means, without duplication (A) all indebtedness for borrowed money, (B) all obligations issued, undertaken or assumed
as the deferred purchase price of property or services (including, without limitation, “capital leases” in accordance
with generally accepted accounting principles as in effect on the Closing Date) (other than trade payables entered into in the
ordinary course of business), (C) all reimbursement or payment obligations with respect to letters of credit, surety bonds and
other similar instruments, (D) all obligations evidenced by notes, bonds, debentures or similar instruments, including obligations
so evidenced incurred in connection with the acquisition of property, assets or businesses, (E) all indebtedness created or arising
under any conditional sale or other title retention agreement, or incurred as financing, in either case with respect to any property
or assets acquired with the proceeds of such indebtedness (even though the rights and remedies of the seller or bank under such
agreement in the event of default are limited to repossession or sale of such property), (F) all monetary obligations under any
leasing or similar arrangement which, in connection with generally accepted accounting principles, consistently applied for the
periods covered thereby, is classified as a capital lease (in accordance with generally accepted accounting principles as in effect
on the Closing Date), (G) all indebtedness referred to in clauses (A) through (F) above secured by (or for which the holder of
such Indebtedness has an existing right, contingent or otherwise, to be secured by) any mortgage, lien, pledge, charge, security
interest or other encumbrance upon or in any property or assets (including accounts and contract rights) owned by any Person, even
though the Person which owns such assets or property has not assumed or become liable for the payment of such indebtedness, and
(H) all Contingent Obligations in respect of indebtedness or obligations of others of the kinds referred to in clauses (A) through
(G) above. “Contingent Obligation” means, as to any Person, any direct or indirect liability, contingent
or otherwise, of that Person with respect to any indebtedness, lease, dividend or other obligation of another Person if the primary
purpose or intent of the Person incurring such liability, or the primary effect thereof, is to provide assurance to the obligee
of such liability that such liability will be paid or discharged, or that any agreements relating thereto will be complied with,
or that the holders of such liability will be protected (in whole or in part) against loss with respect thereto. “Person”
means an individual, a limited liability company, a partnership, a joint venture, a corporation, a trust, an unincorporated
organization, any other entity and a government or any department or agency thereof.

 

(t)          Absence
of Litigation. Except as set forth on Schedule 3(t) attached to the Disclosure Letter, there is no action, suit, proceeding,
inquiry or investigation before or by any court, public board, government agency, self-regulatory organization or body pending
or, to the knowledge of the Company, threatened (i) against the Company or any of the Company’s officers or directors with respect
to their services to the Company or material to the Company; or (ii) that questions the validity of this Agreement or the right
of the Company to enter into this Agreement or to consummate the transactions contemplated hereby, There has not been, and to the
knowledge of the Company, there is not pending or contemplated, any investigation by the SEC or other United States governmental
agency involving the Company or, to the Company’s knowledge, any current or former director or officer of the Company.

 

    	 	12	 

     

    

  

(u)          Insurance.
Except as set forth in Schedule 3(u) attached to the Disclosure Letter, the Company is insured by insurers of recognized
financial responsibility against such losses and risks and in such amounts as management of the Company believes to be prudent
and customary in the businesses in which the Company is engaged. The Company has not been refused any insurance coverage sought
or applied for, and the Company has no any reason to believe that it will be unable 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
at a cost that would not have a Material Adverse Effect.

 

(v)         Employee
Relations. The Company is not a party to any collective bargaining agreement and does not employ any member of a union. No
executive officer (as defined in Rule 501(f) promulgated under the 1933 Act) or other key employee of the Company has notified
the Company that such officer intends to leave the Company or otherwise terminate such officer’s employment with the Company. To
the Company’s knowledge, no executive officer or other key employee of the Company is, or is now expected to be, in violation of
any material term of any employment contract, confidentiality, disclosure or proprietary information agreement, non-competition
agreement, or any other contract or agreement or any restrictive covenant, and the continued employment of each such executive
officer or other key employee (as the case may be) does not subject the Company to any liability with respect to any of the foregoing
matters. The Company is in compliance with all federal, state, local and foreign laws and regulations respecting labor, employment
and employment practices and benefits, terms and conditions of employment and wages and hours, except where failure to be in compliance
would not, either individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect.

 

(w)          Title.
The Company has good and marketable title to all personal property owned by it which is material to the business of the Company,
in each case, free and clear of all liens, encumbrances and defects except such as do not materially affect the value of such property
and do not interfere with the use made and proposed to be made of such property by the Company.

 

(x)          Intellectual
Property Rights. To the Company’s knowledge, the Company owns or possesses adequate rights or licenses to use all trademarks,
trade names, service marks, service mark registrations, service names, patents, patent rights, copyrights, original works, inventions,
licenses, approvals, governmental authorizations; trade secrets and other intellectual property rights and all applications and
registrations therefor (“Intellectual Property Rights”) necessary to conduct is business as now
conducted and as presently proposed to be conducted. None of the Company’s Intellectual Property Rights have expired, terminated
or been abandoned, or are expected to expire, terminate or be abandoned, within three years from the date of this Agreement, The
Company has no knowledge of any infringement by the Company of Intellectual Property Rights of others. There is no claim, action
or proceeding being made or brought, or to the knowledge of the Company, being threatened, against the Company regarding its Intellectual
Property Rights. The Company is not aware of any facts or circumstances which might give rise to any of the foregoing infringements
or claims, actions or proceedings. The Company has taken reasonable security measures to protect the secrecy, confidentiality and
value of all of its Intellectual Property Rights.

 

    	 	13	 

     

    

  

(y)          Environmental
Laws. The Company (i) is in compliance with all Environmental Laws (as defined below), (ii) except as set forth on Schedule
3(y) attached to the Disclosure Letter, has received all permits, licenses or other approvals required of it under applicable
Environmental Laws to conduct its business, and (iii) is in compliance with all terms and conditions of any such permit, license
or approval where, in each of the foregoing clauses (i), (ii) and (iii), the failure to so comply could be reasonably expected
to have, individually or in the aggregate, a Material Adverse Effect. “Environmental Laws” means all federal,
state, local or foreign laws relating to pollution or protection of human health or the environment (including, without limitation,
ambient air, surface Water, groundwater, land surface or subsurface strata), including, without limitation, laws relating to emissions,
discharges, releases or threatened releases of chemicals, pollutants, contaminants, or toxic or hazardous substances or wastes
(collectively, “Hazardous Materials”) into the environment, or otherwise relating to the manufacture, processing,
distribution, use, treatment, storage, disposal, transport or handling of Hazardous Materials, as well as all authorizations, codes,
decrees, demands or demand letters, injunctions, judgments, licenses, notices or notice letters, orders, permits, plans or regulations
issued, entered, promulgated or approved thereunder.

 

(z)          Tax
Status. The Company (i) has timely made or filed all foreign, federal and state income and all other tax returns, reports
and declarations required by any jurisdiction to which it is subject, (ii) has timely 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, except those
being contested in .good faith and (iii) has set aside on its books provision reasonably adequate for the payment of
all 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 know of
no basis for any such claim. The Company is not operated in such a manner as to qualify as a passive foreign investment company,
as defined in Section 1297 of the U.S. Internal Revenue Code of 1986, as amended.

 

(aa)          Internal
Accounting and Disclosure Controls. Except as set forth on Schedule 3(aa) attached to the Disclosure Letter, the Company
maintains internal control over financial reporting (as such term is defined in Rule 13a-15(f) under the Securities Exchange Act
of 1934, as amended, and the rules and regulations promulgated thereunder (the “1934 Act”)) that is effective
to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for
external purposes, including 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 to maintain asset and liability accountability,
(iii) access to assets or incurrence of liabilities is permitted only in accordance with management’s general or specific authorization,
and (iv) the recorded accountability for assets and liabilities is compared with the existing assets and liabilities at reasonable
intervals and appropriate action is taken with respect to any difference. The Company has not received any notice or correspondence
from any accountant or other Person relating to any potential material weakness or significant deficiency in any part of the internal
controls over financial reporting of the Company.

 

    	 	14	 

     

    

  

(bb)         Off
Balance Sheet Arrangements. There is no transaction, arrangement, or other relationship involving the Company in respect of
an off-balance sheet entity that would be required to be disclosed by the Company in a 1934 Act filing or that otherwise could
be reasonably likely to have a Material Adverse Effect.

 

(cc)          Investment
Company Status. The Company is not, and upon consummation of the sale of the Securities will not be, an “investment company,”
or, to the knowledge of the Company, an affiliate of an “investment company,” a company controlled by an “investment
company” . or an “affiliated person” of, or “promoter” or “principal underwriter” for,
an “investment company” as such terms are defined in the Investment Company Act of 1940, as amended.

 

(dd)          U.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 any Buyer’s request.

 

(ee)          Transfer
Taxes. On the Closing Date, all stock transfer or other taxes (other than income or similar taxes) which are required to be
paid in connection with the issuance, sale and transfer of the Securities to be sold to each Buyer hereunder will be, or will have
been, fully paid or provided for by the Company, and all laws imposing such taxes will be or will have been complied with.

 

(ff)           Bank
Holding Company Act. The Company is not subject to the Bank Holding Company Act of 1956, as amended (the “BHCA”)
and to regulation by the Board of Governors of the Federal Reserve System  (the “Federal Reserve”). Neither
the Company nor, to the Company’s knowledge, any of its 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 (25%) or more of the total equity of
a bank or any equity that is subject to the BHCA and to regulation by the Federal Reserve. Neither the Company nor, to the Company’s
knowledge, any of its 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.

 

(gg)         Shell
Company Status. The Company is not, and has never  been, an issuer identified in, or subject to, Rule 144(i).

 

(hh)         Public
Utility Holding Act. The Company is not a “holding company,” or an “affiliate” of a “holding
company,” as such terms are defined in the Public Utility Holding Act of 2005.

 

(ii)            Federal
Power Act. The Company is not subject to regulation as a “public utility” under the Federal Power Act, as amended.

 

(jj)            No
Additional Agreements. The Company does not have any agreement or understanding with .any Buyer with respect to the transactions
contemplated by the Transaction Documents other than as specified in the Transaction Documents.

 

    	 	15	 

     

    

  

(kk)          Real
Property. The Company holds good title to all real property, leases hi real property, or other interests in real property
stated as owned or held by the Company (the “Real Property”). The Real Property is free and clear of all mortgages,
defects, claims, liens, pledges, charges, taxes, rights of first refusal, encumbrances, security interests and other encumbrances
(collectively “Encumbrances”) and is not subject to any rights of way, building use restrictions, exceptions,
variances, reservations, or limitations of any nature except for (i) liens for current taxes not yet due, and (ii) zoning laws
and other land use restrictions -that do not impair the present or anticipated use of the property subject thereto, Any Real Property
held under lease by the Company is held under valid, subsisting and enforceable leases with such exceptions as are not material
and do not interfere with the use made and proposed to be made of such property and buildings by the Company.

 

(ll)        Fixtures
and Equipment. The Company has good title to, or a valid leasehold. interest in, the tangible personal property, equipment,
improvements, fixtures, and other personal property and appurtenances that are used by the Company in connection with the conduct
of its business (the “Fixtures and Equipment”). The Fixtures and Equipment are structurally sound, are in good
operating condition and repair, are adequate for the uses to which they are being put, are not in need of maintenance or repairs
except for ordinary, routine maintenance and repairs and are sufficient for the conduct of the Company’s business in the manner
as conducted prior to the Closing. The Company owns all of its Fixtures and Equipment free and clear of all Encumbrances except
for (i) liens for current taxes not yet due, and (ii) zoning laws and other land use restrictions that do not impair the present
or anticipated use of the property subject thereto.

 

(mm)        Illegal
or Unauthorized Payments; Political Contributions. Neither the Company nor, to the Company’s knowledge, any of its officers,
directors, employees, agents or other representatives, when acting in their capacity as officers, directors, employees, agents
or representatives of the Company, has, directly or indirectly, made or authorized any payment, contribution or gift of money,
property, or services, whether or not in contravention of applicable law, (i) as a kickback or bribe to any Person or (ii) to any
political organization, or the holder of or any aspirant to any elective or appointive public office except for personal political
contributions not involving the direct or indirect use of funds of the Company.

 

(nn)        Money
Laundering. The Company is in compliance with, and has not previously violated, the USA Patriot Act of 2001 and all other
applicable U.S. and non-U.S. anti-money laundering laws and regulations, including, without limitation, the laws, regulations and
Executive Orders and sanctions programs administered by the U.S. Office of Foreign Assets Control, including, without limitation,
(i) Executive Order 13224 of September 23, 2001 entitled, “Blocking Property and Prohibiting Transactions With Persons Who
Commit, Threaten to Commit, or Support Terrorism” (66 Fed. Reg. 49079 (2001)); and (ii) any regulations contained in 31 CFR,
Subtitle B, Chapter V.

 

(oo)        Ranking
of Notes. No indebtedness of the Company, at the Closing, will be senior to the Notes in right of payment, whether with respect
to payment or redemptions, interest, damages, upon liquidation or dissolution or otherwise. Except for any Old MTI Convertible
Note holder(s), if any, who do not swap its(s) Old MTI Convertible Note(s) for the Note(s), no indebtedness of the Company, at
the Closing, will be pari passu to the Notes in right of payment, whether with respect to payment or redemptions, interest,
damages, upon liquidation or dissolution or otherwise.

 

    	 	16	 

     

    

  

(pp)        Disclosure.
The Company understands and confirms that each of the Buyers will rely on the foregoing representations in effecting the transactions
consummated hereunder. The Company acknowledges and agrees that no Buyer makes or has made any representations or warranties with
respect to the transactions contemplated hereby other than those specifically set forth in Section 2.

 

		4.	COVENANTS.

 

(a)          Best
Efforts. Each Buyer shall use its best efforts to timely satisfy each of the conditions to be satisfied by it as provided
in Section 6 of this Agreement, The Company shall use its best efforts to timely satisfy each of the conditions to be satisfied
by it as provided in Section 7 of this Agreement.

 

(b)          Form
D and Blue Sky. The Company shall file a Form D with respect to the Securities as required under Regulation D and provide a
copy thereof to the Placement Agent promptly after such filing. The Company shall, on or before the Closing Date, take such action,
if any, as the Company shall reasonably determine is necessary in order to obtain an exemption for, or to, qualify the Securities
for sale to the Buyers at the Closing pursuant to this Agreement under applicable securities or “Blue Sky” laws of
the states of the United States (or to obtain an exemption from such qualification), and shall provide evidence of any such action
so taken to the Placement Agent on our prior to the Closing Date. Without limiting any other obligation of the Company under this
Agreement, the Company shall timely make all filings and reports relating to the offer and sale of the Securities required in connection
with the consummation of the transactions consummated hereunder under all applicable securities laws (including, without limitation,
all applicable federal securities laws and. all applicable “Blue Sky” laws), and the Company shall comply with all
applicable federal, foreign, state and local laws, statutes, rules, regulations and the like relating to the offering and sale
of the Securities to the Buyers.

 

(c)          Reporting
Status. After the date the Company becomes subject to the periodic reporting requirements under Sections 13 or 15(d) of the
1934 Act, as amended from time to time, together with the regulations promulgated thereunder (a “Reporting Company”),
and until the date on which the Buyers shall have sold all of the Registrable Securities (such period, to end in any event, whether
or not such securities have been sold, not later than five years after such date, the “Reporting Period”),
the Company shall use commercially reasonable efforts to timely file all reports required to be filed with the SEC pursuant to
the 1934 Act, and the Company shall not terminate its status as an issuer required to file reports under the 1934 Act even if
the 1934 Act or the rules and regulations thereunder would no longer require or otherwise permit such termination unless such
termination is approved by the holders of a majority stockholders of the voting power of the Company, or unless no Buyer has demand
registration rights under the Registration Rights Agreement or unless no Buyer is a holder of record of Conversion Shares (collectively,
the “Termination Conditions”).

 

(d)          Use
of Proceeds. The Company shall use the proceeds from the sale of the Securities for general corporate purposes as set forth
in the Private Placement Memorandum; provided, however, that the Company shall not use any of the proceeds to make or repay
loans to, or purchase assets from, any officer, director or member of executive management of the Company or any of the Company’s
affiliates.

 

    	 	17	 

     

    

  

(e)           [Reserved.]

 

(f)            Listing.
If the Company becomes a Reporting Company, the Company shall in connection with any proper demand for registration of Registrable
Securities under the Registration Rights Agreement (if the same has not previously occurred) promptly secure the listing or designation
for quotation (as the case may be) of all of the Registrable Securities upon each national securities exchange and automated quotation
system, if any, upon which the Common Stock is then listed or designated for quotation (as the case may be) (subject to official
notice of issuance) and shall thereafter maintain such listing or designation for quotation (as the case may be) of all Registrable
Securities from time to time issuable under the terms of the Transaction Documents on such national securities exchange or automated
quotation system unless one of the Termination Conditions has occurred. During any period that the Common Stock is listed or designated,
the Company shall use commercially reasonable efforts to maintain the Common Stock’s listing or designation for quotation (as
the case may be) on The New York Stock Exchange, the NYSE MKT, the Nasdaq Global Select Market, the Nasdaq Global Market or the
Nasdaq Capital Market (each, an “Eligible Market”). During the Reporting Period, the Company shall use commercially
reasonable efforts not to take any action which could be reasonably expected to prevent a listing or result in the delisting or
suspension of the Common Stock from an Eligible Market. The Company shall pay all fees and expenses in connection with satisfying
its obligations under this Section 4(f).

 

(g)           Fees.
The Company shall be responsible for the payment of any placement agent’s fees, financial advisory fees, or broker’s commissions
(other than for Persons engaged by any Buyer) relating to or arising out of the transactions contemplated hereby and resulting
from the retention by the Company of any placement agent, financial advisor or broker (including, without limitation, any fees
payable to the Placement Agent, who is the Company’s sole placement agent in connection with the transactions contemplated by
this Agreement). Except where Buyer has breached Section 2(k) hereof, the Company shall pay, and hold each Buyer harmless against,
any liability, loss or expense (including, without limitation, reasonable attorneys’ fees and out-of-pocket expenses) arising
in connection with any claim relating to any such payment. Except as otherwise set forth in the Transaction Documents, each party
to this Agreement shall bear its own expenses in connection with the sale of the Securities to the Buyers.

 

(h)           Pledge
of Securities. Notwithstanding anything to the contrary contained in this Agreement, the Company acknowledges and agrees that
the Securities may be pledged by a Buyer in connection with a bona fide margin agreement or other bona fide loan or financing arrangement
that is secured by the Securities. The pledge of Securities shall not be deemed to be a transfer, sale or assignment of the Securities
hereunder, and no Buyer making a pledge of Securities shall be required to provide the Company with any notice thereof or otherwise
make any delivery to the Company pursuant to this Agreement or any other Transaction Document, The Company hereby agrees to execute
and deliver such documentation as a holder of the Securities may reasonably request in connection with a pledge of the Securities
to such pledgee by a Buyer.

 

    	 	18	 

     

    

  

(i)          Reservation
of Shares. The Company will take all action necessary to at all times have authorized, and reserved for the purpose of issuance,
no less than one hundred ten percent (110%) of the maximum number of Conversion Shares issuable upon conversion of the Notes.

 

(j)          Conduct
of Business. So long as any of the Securities are held by the Buyers and their successors in interest and assigns, the business
of the Company shall not be conducted in violation of any law, ordinance or regulation of any governmental entity, except where
such violations would not result, either individually or in the aggregate, in a Material Adverse Effect.

 

(k)          Subsequent
Placements. Except as set forth on Schedule 4(k) attached to the Disclosure Letter, so long as the Notes are outstanding,
the Company shall, without the prior written consent of the Required Buyers (as defined below), be prohibited from effecting or
entering into an agreement to effect any offering or placement of equity or equity linked securities or debt of the Company (“Subsequent
Placement”), other than (i) a firm commitment underwritten initial public offering through a registered broker-dealer
(an “IPO”); (ii) prior to the “IPO Outside Date” (as defined in the Senior Secured Convertible
Notes), with LVP’s prior written consent, a Subsequent Placement (or series of Subsequent Placements) in which in the aggregate
gross proceeds to the Company do not exceed $2 million; (iii) prior to the IPO Outside Date, without the consent of LVP, a Subsequent
Placement (or series of Subsequent Placements) to one or more of the Company’s industry partners and/or customers (including, without
limitation, an Original Equipment Manufacturer, Integrated Device Manufacturer, and/or foundry) in a transaction, the principal
purpose of which is not to raise equity capital; or (iv) shares of Common Stock or Convertible Securities’ issued to employees
or directors of, or consultants or advisors to, the Company or any of its subsidiaries pursuant to its Stock Incentive Plan (as
defined below).

 

(I)         Change
of Control. Prior to the IPO Outside Date, the Company may not effect a Specified Change of Control without the prior written
consent of the Required Buyers. “Specified Change in Control” means (x) the acquisition of the Company by another
entity by means of any transaction to which the Company is a party (including, without limitation, any merger or consolidation)
that contemplates an enterprise value of the Company of less than $75 million, or (y) a sale of all or substantially all of the
assets of the Company for an aggregate purchase price of less than $75 million (including, for purposes of this section, the sale
or exclusive license of intellectual property rights which, in the aggregate, constitutes substantially all of the corporation’s
material intellectual property assets).

 

    	 	19	 

     

    

 

(m)          Variable
Rate Transaction. Notwithstanding anything in this Agreement to the contrary, until the later of (i) none of the Notes being
outstanding or (ii) three years after the Company becomes a Reporting Company, the Company shall be prohibited from effecting or
entering into any Subsequent Placement involving a Variable Rate Transaction. “Variable Rate Transaction” means
a transaction in which the Company (i) issues or sells any Convertible Securities either (A) at a conversion, exercise or exchange
rate or other price that is based upon and/or varies with the trading prices of, or quotations for, the shares of Common Stock
at any time after the initial issuance of such Convertible Securities, or (B) with a conversion, exercise or exchange price that
is subject to being reset at some future date after the initial issuance of such Convertible Securities or upon the occurrence
of specified or contingent events directly or indirectly related to the business of the Company or the market for the Common Stock,
other  than pursuant to a customary “weighted average” anti-dilution provision or in connection with any stock dividend,
stock split, combination or other similar recapitalization or (ii) enters into any agreement (including, without limitation, an
“equity line of credit” or an “at the market offering”) whereby the Company may sell securities at a future
determined price (other than standard and customary “preemptive” or “participation” rights). The Buyers,
by action of the Required Buyers, shall be entitled to obtain injunctive relief against the Company to preclude any such issuance,
which remedy shall be in addition to any right to collect damages.

 

(n)          Passive
Foreign Investment Company. For the period ending on the third year anniversary after the Company becomes a Reporting Company,
the Company shall conduct its business in such a manner as will ensure that the Company will not be deemed to constitute a passive
foreign investment company within the meaning of Section 1297 of the U.S. Internal Revenue Code of 1986, as amended.

 

(o)          Restriction
on Redemption and Cash Dividends. So long as any Notes are outstanding, the Company shall not, directly or indirectly, redeem
(other than repurchases of stock from former employees, advisors, directors, consultants or other persons who provided services
on behalf of the Company or a Subsidiary at the original purchase price thereof), or declare or pay any cash dividend or distribution
on, any securities of the Company without the prior express written consent of the Required Buyers.

 

(p)          Corporate
Existence. So long as any Notes are outstanding, the Company shall maintain its corporate existence.

 

(q)          Board
of Directors; Size. So long as any Notes are outstanding immediately prior to the consummation of the IPO, the Company
will, unless otherwise mutually agreed by Liquid Venture Partners, LLC (“LVP”) and the Company, use its commercially
reasonable efforts to ensure that the board of directors of the Company (the “Board”) (i) by no later than forty-five
(45) days after the Closing Date, be comprised of no more than seven (7) members who are serving on the Board as of the Closing
Date or who have been elected by a majority of the directors who are serving on the Board as of the Closing Date (the “Existing
Directors”); (ii) by the filing of the registration statement on Form S-1 (the “S-1”) for the
IPO, have at least three (3) new members, who will have been mutually selected by the Board and LVP and who will replace a corresponding
number of Existing Directors; (iii) by the filing of the S-1 for the IPO, have a majority of Independent Directors (as defined
by NASDAQ Marketplace Rule 4200(a)(15)); (iv) until the consummation of the IPO, be comprised of a majority of Existing Directors;
and (v) after the consummation of the IPO, be comprised of five (5) members or, as may be subsequently mutually agreed prior to
the filing of the S-1 for the IPO by the Board and LVP, seven (7) members.

 

(r)          Intellectual
Property Strategy. Within three months of the Effective Date, the Company will adopt an intellectual property strategy reasonably
acceptable to LVP and the Company, and provide a detailed written statement of the strategy to the Buyers.

 

    	 	20	 

     

    

 

(s)          Incentive
Equity. The Company will take the necessary actions to amend its stock incentive plan (the “Stock Incentive Plan”)
to provide that the number of shares of Common Stock reserved for issuance thereunder, together with any stock that may be awarded
for performance bonuses related to a successful IPO, shall equal to no more than fifteen percent (15%) of the number of fully
diluted shares of Common Stock (based on an assumed conversion price of the Notes of $0.44) during the period up to and including
the date of the IPO and giving effect to the IPO and debt conversions triggered by the IPO, unless otherwise mutually agreed between
the Company and LVP in writing. From and after the Effective Date and through and including the consummation of the IPO, the Company
shall not issue any options or other equity awards under the Stock Incentive Plan or otherwise to any employee, officer or director
of the Company as of the Effective Date, except as disclosed in the Private Placement Memorandum, unless otherwise mutually agreed
between the Company and LVP in writing.

 

(t)          Independent
Accountants. Within three months after the date of initial issuance of the Notes, the Company will engage independent certified
public accountants, which firm is actively registered with the PCAOB, to perform an audit of the financial statements that would
be necessary and sufficient to meet the filing requirements of a registration statement for the registration of securities of
the Company either for issuance by the Company or resale of the Conversion Shares, which audit will be completed no later than
nine (9) months after the date of the initial issuance of the Notes.

 

(u)          Lock-Up.
In connection with any IPO, the Company will use its best efforts to obtain lock-up agreements in a form reasonably acceptable
to the Placement Agent from the persons indicted in the below tables, covering themselves and their affiliates, in respect of the
securities issued by the Company held at the commencement of the IPO of the Company, including any common stock into which those
securities may be converted, exercised or exchanged into shares of Common Stock, for the time periods as indicated in the below
tables (for clarity, the lock-up does not apply to any of the securities to be offered to the public in the IPO through an underwriter
or selling group member or any securities acquired in the public market in; or at any time after, the IPO):

 

(A) 365 Day Lock-Up Table

 

For the period commencing on the offering date of the IPO of the
Company and extending for 365 days thereafter: 

 

		·	Officers and directors serving in such capacities at the commencement
of the IPO (for clarity, if any director and officer who executed a formal lock-up agreement for a 365 day lock-up period is no
longer a director or officer at the time of the IPO, such person will be fully released from the agreement at the time of the IPO,
provided that they execute a substitute lock-up agreement as provided below under the terms of the General Lock Up Table); and

		·	The Placement Agent, LVP and Liquid Patent Consulting, LLC, provided,
however they or their affiliates may exercise their respective warrants to convert them into shares of Common Stock during the
365 day lock-up period.

 

    	 	21	 

     

    

 

(B) General Lock-Up Table

 

For the period commencing on the offering date of the IPO of the
Company and extending thereafter as indicated below:

 

		·	All Employees (other than officers);

		·	All existing shareholders, if not otherwise covered by a lock-up with
a greater time period; and

		·	All holders of the Existing Convertible Notes, if any are outstanding
at the time of the IPO.

 

Under the General Lock-Up, those persons named
above will be prohibited from offering, selling, transferring directly or indirectly, pledging, or offering to do any of the same
directly or indirectly, any of the securities of the Company (including any securities convertible, exercisable or exchangeable
into shares of Common Stock), for a period of 180 days following the effective date of the registration statement for the IPO
(the “IPO Commencement Date”), and on the 181st day following the IPO Commencement
Date and on every subsequent 31st day thereafter, 15% of the securities shall be released from the General Lock-Up
until the 366th day following the IPO Commencement Date when all such prohibitions shall have been removed. For purpose
of clarity, below is a summary of the lock-up period.

 

	Days Following the IPO	 	% of Securities
 Subject to Lock-Up	 
	1-180	 	 	100	%
	181-211	 	 	85	%
	212-242	 	 	70	%
	243-273	 	 	55	%
	274-304	 	 	40	%
	305-335	 	 	25	%
	336-365	 	 	10	%
	366 and thereafter	 	 	0	%

 

    	 	22	 

     

    

 

(v)          Investor
Market Stand-Off. In connection with the IPO, if any, each Buyer hereby agrees that, for a period of 365 days following the
IPO Commencement Date (the “Restricted Period”), it will not (i) offer, pledge, sell, contract to sell, sell
any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase, lend
or otherwise transfer or dispose of any shares of Common Stock or any securities convertible into or exercisable or exchangeable
for Common Stock, whether now owned or hereafter acquired or with respect to which such Buyer has or hereafter acquires the power
of disposition, other than any of the securities to be offered to the public in the IPO through an underwriter or selling group
member or any securities acquired in the public market in, or at any time after, the IPO (collectively, “Restricted Stock”);
or (ii) enter into any swap or other agreement, arrangement or transaction that transfers to another, in whole or in part, directly
or indirectly, any of the economic consequence of ownership of any Restricted Stock, whether any transaction described in clause
(i) or (ii) is to be settled by delivery of Common Stock, other securities, in cash or otherwise, without the prior written consent
of the managing or lead underwriter of such offering; provided, however that, (A) on the 181st day following,
the IPO Commencement Date and on every subsequent 31st day thereafter, 15% of the, securities shall be released from
this lock-up provision until the 366th day following the date of the IPO Commencement Date when all such prohibitions
shall have been removed (for purpose of clarity, the table below contains a summary of the lock-up period); and (B) notwithstanding
the foregoing, if during the last seventeen (17) days of the one hundred eighty (180) day period following the IPO Commencement
Date (the “FINRA Restricted Period”) the Company issues an earnings release or material news or a material
event relating to the Company occurs, or prior to the expiration of the FINRA Restricted Period the Company announces that it
will release earnings results during the sixteen (16) day period beginning on the last day of the restricted period, then, upon
the request of the managing or lead underwriter, to the extent required by any FINRA rules, the restrictions imposed by this Section
4(v) shall continue to apply until the end of the third (3rd) trading day following the expiration of the fifteen (15)
day period beginning on the issuance of the earnings release or the occurrence of the material news or material event. In order
to enforce the restrictions agreed to by Buyer in this Section 4(v), the Company may impose stop-transfer instructions with respect
to any security acquired under or subject to this Agreement until the end of the Restricted Period. The Company’s underwriters shall
be third-party beneficiaries of the restrictions set forth in this Section 4(v).

 

	Days Following the IPO	 	% of Securities
 Subject to Lock-Up	 
	1-180	 	 	100	%
	181-211	 	 	85	%
	212-242	 	 	70	%
	243-273	 	 	55	%
	274-304	 	 	40	%
	305-335	 	 	25	%
	336-365	 	 	10	%
	366 and thereafter	 	 	0	%

 

(w)          IPO
Commitment. The Company shall not within six (6) months of the Closing Date file a registration statement on Form S-1 (or
any successor form thereto) to register and sell Common Stock or other securities in an IPO and shall use its best efforts
to no later than nine (9) months after the Closing Date, file with the SEC a registration statement on Form S-1
(or any successor form thereto) to register and sell Common Stock in an IPO.

 

    	 	23	 

     

    

 

5.             REGISTER; TRANSFER AGENT INSTRUCTIONS; LEGEND.

 

(a)          Register.
The Company shall maintain at its principal executive offices (or such other office or agency of the Company as it may designate
by notice to each holder of Securities), a register for the Notes and, if issued, the Conversion Shares in which the Company shall
record the name and address of the Person in whose name the Notes and/or Conversion Shares have been issued (including the name
and address of each transferee), the principal amount of the Notes or aggregate number of Conversion Shares held by such Person,
and any tax related information required to be maintained. The Company shall keep the register open and available at all times
during business hours for inspection of any Buyer or its legal representatives.

 

(b)          Transfer
Agent Instructions. If a Buyer effects a sale, assignment or transfer of the Conversion Shares in compliance with all applicable
securities laws, the Company shall permit the transfer and shall promptly issue, or shall promptly instruct its transfer agent
to issue, as applicable, one or more certificates or, if the Conversion Shares are eligible for legend removal under Section 5(d),
credit shares to the applicable balance accounts at the Depository Trust Company (“DTC”) in such name and in
such denominations as specified by such Buyer to effect such sale, transfer or assignment. In the event that such sale, assignment
or transfer involves Conversion Shares sold, assigned or transferred pursuant to an effective registration statement or in compliance
with Rule 144, the transfer agent shall issue such shares to such Buyer, assignee or transferee (as the case may be) without any
restrictive legend in accordance with Section 5(d) below. The Company acknowledges that a breach by it of its obligations under
this Section 5(b) will cause irreparable harm to each Buyer. Accordingly, the Company acknowledges that the remedy at law for
a breach of its obligations under this Section 5(b) will be inadequate and agrees, in the event of a breach or threatened breach
by the Company of the provisions of this Section 5(b), that each Buyer shall be entitled, in addition to all other available remedies,
to an order and/or injunction restraining any breach and requiring immediate issuance and transfer, without the necessity of showing
economic loss and without any bond or other security being required. The Company shall cause its counsel to issue the legal opinion
referred to in the Irrevocable Transfer Agent Instructions to the Company’s transfer agent on each Effective Date (as defined
and provided in the Registration Rights Agreement), provided that the applicable Buyer(s) or its or their representatives and/or
brokers have provided the documentation to counsel reasonably necessary or required for the basis of such legal opinion. Any fees
(with respect to the transfer agent, counsel to the Company or otherwise) associated with the issuance of such opinion or the
removal of any legends on any of the Securities shall be borne by the Company.

 

(c)          Legends.
Each Buyer understands that the Securities have been issued (or will be issued in the case of the Conversion Shares) pursuant to
an exemption from registration or qualification under the 1933 Act and applicable state securities laws, and except as set forth
below, the Securities shall bear any legend as required by the “Blue Sky” laws of any state and a restrictive legend
in substantially the following form (and a stop-transfer order may be placed against transfer of such Securities):

 

    	 	24	 

     

    

 

[NEITHER THE ISSUANCE AND SALE OF
THE SECURITIES REPRESENTED HEREBY NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE CONVERTIBLE HAVE BEEN]/[THE SECURITIES REPRESENTED
BY THIS CERTIFICATE HAVE NOT BEEN] REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS.
THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT
FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL TO THE HOLDER (IF REQUESTED BY THE
COMPANY), IN A FORM REASONABLY ACCEPTABLE TO THE COMPANY, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD
OR ELIGIBLE TO BE SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID ACT, NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED
IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES.

 

(d)          Removal
of Legends. Certificates evidencing Securities shall not be required to contain the legend set forth in Section 5(c)
above or any other legend (i) following any sale of such Securities pursuant to an effective registration statement covering
the resale of such Securities is effective under the 1933 Act, (ii) following any sale of such Securities pursuant to Rule
144, (iii) if such Securities are eligible to be sold, assigned or transferred under Rule 144(b)(1) (provided that a Buyer
provides the Company with reasonable assurances that such Securities are eligible and will remain for sale, assignment or
transfer under Rule 144(b)(1) which shall not include an opinion of counsel), (iv) in connection with a sale, assignment or
other transfer (other than under Rule 144), provided that such Buyer provides the Company with an opinion of counsel to such
Buyer, in a generally acceptable form, to the effect that such sale, assignment or transfer of the Securities may be made
without restrictive legends and thereafter made without registration under the applicable requirements of the 1933 Act, or
(v) if such legend is not required under applicable requirements of the 1933 Act (including, without limitation, controlling
judicial interpretations and pronouncements issued by the SEC, provided that Buyer provides the Company with an opinion of
counsel to such effect). If the Company is a Reporting Company and a legend is not required pursuant to the foregoing, the
Company, at its expense, shall no later than three (3) Business Days following the delivery by a Buyer to the Company or the
transfer agent (with notice to the Company) of a legended certificate representing such Securities (endorsed or with stock
powers attached, signatures guaranteed, and otherwise in form necessary to affect the reissuance and/or transfer, if
applicable), together with any other deliveries from such Buyer as may be required above in this Section 5(d), as directed by
such Buyer, either: (A) provided that the Company’s transfer agent is participating in the DTC Fast Automated Securities
Transfer Program arid such Securities are Conversion Shares, credit the aggregate number of shares of Common Stock to which
such Buyer shall be entitled to the balance account of such Buyer or the purchaser of such Conversion Shares, as the case may
be (the “Designated Recipient”) with the DTC through its Deposit/Withdrawal at Custodian system or (B) if
the Company’s transfer agent is not participating in the DTC Fast Automated Securities Transfer Program, issue and dispatch
for delivery (via reputable overnight courier) to such Designated Recipient, a certificate representing such Securities that
is free from all restrictive and other legends, registered in the name of such Designated Recipient (the date by which
such credit is so required to be made to the balance account of such Designated Recipient with DTC or such certificate is
required to be delivered to such Designated Recipient pursuant to the foregoing is referred to herein as the
“Required Delivery Date”).

 

    	 	25	 

     

    

 

(e)          Failure
to Timely Deliver; Buy-In. If the Company is a Reporting Company and the Company improperly fails to (i) issue and
dispatch for delivery (or cause to be so dispatched) to a Designated Recipient by the Required Delivery Date a certificate representing
the Securities so delivered to the Company by such Buyer that is free from all restrictive and other legends or (ii) credit the
balance account of such Designated Recipient’s or such Designated Recipient’s nominee with DTC for such number of Conversion Shares
so delivered to the Company, and if on or after the business day immediately following the Required Delivery Date such Buyer (or
any other Person in respect, or on behalf, of such Buyer) purchases (in an open market transaction or otherwise) shares of Common
Stock to deliver in satisfaction of a sale by such Buyer of all or any portion of the number of shares of Common Stock, or a sale
of a number of shares of Common Stock equal to all or any portion of the number of shares of Common Stock, that such Buyer so
anticipated receiving from the Company without any restrictive legend (the “Buy-In Shares”), then the Company
shall, within five (5) Business Days after such Buyer’s request and in such Buyer’s sole discretion, either (x) pay cash to such
Buyer in an amount equal to such Buyer’s total purchase price (including brokerage commissions and other out of pocket expenses,
it’ any) for such Buy-In Shares (the “Buy-In Price”), at which point the Company’s obligation to so deliver
such certificate or credit such Designated Recipient’s balance account shall terminate and such shares shall be cancelled, or
(y) promptly honor its obligation to so deliver to such Designated Recipient a certificate or certificates or credit such Designated
Recipient’s DTC account representing such number of shares of Common Stock that would have been so delivered if the Company timely
complied with its obligations hereunder and pay cash to such Buyer in an amount equal, to the excess (if any) of the Buy-In Price
over the product of (A) such number of shares of Conversion Shares that the Company was required to deliver to such Designated
Recipient by the Required Delivery Date multiplied by (B) the lowest closing sale price of the Common Stock on the Business Days
during the period commencing on the date of the delivery by such Designated Recipient to the Company of the applicable Conversion
Shares and ending on the date of such delivery and payment under this clause (y).

 

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

 

(a)          The
obligation of the Company hereunder to issue and sell the Notes to each Buyer at the Closing is subject to the satisfaction, at
or before the Closing Date, of each of the following conditions, provided that these conditions are for the Company’s sole benefit
and may be waived by the Company at any time in its sole discretion by providing each Buyer with prior written notice thereof:

 

(i)          Such
Buyer shall have executed each of the other Transaction Documents to which it is a party and an Investor Questionnaire, and delivered
the same to the Company.

 

(ii)         Such
Buyer and each other Buyer shall have delivered to the Escrow Agent on behalf of the Company the Purchase Price for the Note being
purchased by such Buyer at the Closing by check in collected funds through the Escrow Agent or wire transfer of immediately available
funds pursuant to the wire instructions provided by the Company.

 

    	 	26	 

     

    

 

(iii)        The
representations and warranties of such Buyer shall be true and correct in all material respects as of the date when made and as
of the Closing Date as though originally made at that time (except for representations and warranties that speak as of a specific
date, which shall be true and correct as of such date), and such Buyer shall have performed, satisfied and complied in all material
respects with the covenants, agreements and conditions required by this Agreement to be performed, satisfied or complied with by
such Buyer at or prior to the Closing Date.

 

(iv)         The
Company shall have obtained all governmental, regulatory or third party consents and approvals, if any, necessary for the sale
of the Securities.

 

(v)          No
statute rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered, promulgated or endorsed
by any court or governmental authority of competent jurisdiction that prohibits the consummation of any of the transactions contemplated
by the Transaction Documents.

 

(vi)         Since
the date of execution of this Agreement, no event or series of events shall have occurred that reasonably would have or result
in a Material Adverse Effect.

 

(vii)        That
Notes having an aggregate principal amount of at least $5,000,000 are purchased by the Buyers.

 

7.          CONDITIONS
TO EACH BUYER’S OBLIGATION TO PURCHASE.

 

(a)          The
obligation of each Buyer hereunder to purchase its Note at the Closing is subject to the satisfaction, at or before the Closing
Date, of each of the following conditions, provided that these conditions are for each Buyer’s sole benefit and may be waived by
such Buyer at any time in its sole discretion by providing the Company with prior written notice thereof:

 

(i)          The
Company shall have duly executed and delivered to such Buyer each of the Transaction Documents to which it is a party and the Company
shall have duly executed and delivered to such Buyer a Note (in such original principal amount as is set forth across from such
Buyer’s name in column (2) of the Schedule of Buyers) being purchased by such Buyer at the Closing pursuant to this Agreement.

 

(ii)         Buyer
shall have received an opinion of WilmerHale LLP, the Company’s counsel, dated the date of the issuance of the Note to such Buyer,
stating that the Company is a corporation incorporated under the laws of the State of Delaware, the Transaction Documents have
been duly authorized by all requisite corporate action on the part of the Company, and that the Conversion Shares, if and when
issued in accordance with the terms of the Notes, will be duly authorized, fully paid and non-assessable, which opinion may be
subject to such assumptions and conditions are normally set forth in opinions of legal counsel in respect of such matters.

 

    	 	27	 

     

    

 

(iii)        The
Company shall have delivered to such Buyer a certificate evidencing the formation and good standing of the Company in its jurisdiction
of formation issued by the Secretary of State (or comparable office) of such jurisdiction of formation as of a date within ten
(10) days of the Closing Date.

 

(iv)         The
Company shall have delivered to such Buyer a certificate or other reasonably acceptable evidence evidencing the Company’s qualification
as a foreign corporation and good standing issued by the Secretary of State (or comparable office) of each jurisdiction in which
the Company conducts business and is required to so qualify, as of a date within ten (10) days of the Closing Date.

 

(v)          The
Company shall have delivered to such Buyer a certified copy of the Certificate of Incorporation as certified by the Secretary of
State of the Company’s jurisdiction of incorporation within ten (10) days of the Closing Date.

 

(vi)         The
Company shall have delivered to such Buyer a certificate, in the form acceptable to such Buyer, executed by the Secretary of the
Company dated as of the Closing Date, as to (i) the resolutions consistent with Section 3(b) as adopted by the Company’s board
of directors in a form reasonably acceptable to such Buyer, (ii) the Certificate of Incorporation of the Company and (iii) the
Bylaws of the Company as in effect at the Closing.

 

(vii)        Each
and every representation and warranty of the Company shall be true and correct as of the applicable Closing Date in all material
respects (except for representations and warranties that speak as of a specific date, which shall be true and correct as of such
date) and the Company shall have performed, satisfied and complied in all material respects with the covenants, agreements and
conditions required to be performed, satisfied or complied with by the Company at or prior to the Closing Date. Such Buyer shall
have received a certificate, executed by the President of the Company, dated as of the Closing Date, to the foregoing effect and
as to such other matters as may be reasonably requested by such Buyer in the form reasonably acceptable to such Buyer.

 

(viii)      The
Company shall have obtained all governmental, regulatory or third party consents and approvals, if any, necessary for the sale
of the Securities.

 

(ix)         No
statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered, promulgated or endorsed
by any court or governmental authority of competent jurisdiction that prohibits the consummation of any of the transactions contemplated
by the Transaction Documents.

 

    	 	28	 

     

    

 

(x)          Since
the date of execution of this Agreement, no event or series of events shall have occurred that reasonably would have or result
in a Material Adverse Effect.

 

(xi)         In
accordance with the terms of the Security Documents, the Company shall have delivered to such Buyer copies of appropriate financing
statements on Form UCC-1 duly filed in such office or offices and in the offices of the United States Patent and Trademark Office
as may be necessary or, in the opinion of the Buyers, desirable to perfect the first priority security interests purported to be
created by each Security Document.

 

(xii)        (i)
Within two (2) Business Days prior to the Closing, the Company shall have delivered or caused to be delivered to each Buyer true
copies of UCC search results in the Company’s jurisdiction of incorporation, listing all effective financing statements which name
as debtor the Company filed in the prior five years to perfect an interest in any assets thereof, together with copies of such
financing statements, none of which, except as otherwise agreed in writing by the Required Buyers, shall cover any of the Collateral
(as defined in the Security Documents) and the results of searches for any tax lien and judgment lien in the jurisdiction of the
Company’s principal place of business filed against such Person or its property, which results, except as otherwise agreed to in
writing by the Required Buyers shall not show any such Liens (as defined in the Security Documents); and (ii) at the Closing, the
Company shall have delivered or caused to be delivered to each Buyer a perfection certificate, duly completed and executed by the
Company, in form and substance reasonably satisfactory to the Required Buyers.

 

(xiii)      Since
the Effective Date, the Company shall not have amended, modified, waived compliance with or terminated, revoked or rescinded in
any manner or respect (and the Company shall not have taken any action, or permitted any action to be taken (whether through the
Company’s inaction or otherwise), that has a similar effect to any of the foregoing) any provision of any of material agreements
and all of such agreements shall be in full force and effect.

 

(xiv)        The
Company shall have delivered to such Buyer a letter dated as of the Closing Date, in a form reasonably acceptable to such Buyer,
executed by the Company (the “Disclosure Letter”).

 

(xv)         The
Company shall have delivered to such Buyer such other documents, instruments or certificates relating to the transactions contemplated
by this Agreement as such Buyer or its counsel may reasonably request.

 

(xvi)        That
Notes having an aggregate principal amount of at least $5,000,000 are purchased by the Buyers.

 

(xvii)      That
all members of the Company’s Board shall have tendered at the Closing resignation letters to the Board agreeing to resign from
the Board effective upon the request of the Board in the form attached hereto as Exhibit F such that the Company’s
covenant under Section 4(q) shall be fulfilled.

 

    	 	29	 

     

    

 

(xviii)     The
Company shall have collected substantially all of the Old MTI Convertible Notes, including all of the Old MTI Convertible Notes
being exchanged for Notes, and shall have certified the same to the Placement Agent. For purposes of the forgoing, “substantially
all” shall mean Old MTI Convertible Notes having an aggregate principal amount of at least 95% of the aggregate principal
amount of all Old MTI Convertible Notes.

 

8.          TERMINATION.

 

(a)          This
Agreement may be terminated prior to Closing:

 

(i)          by
written agreement of the Buyers and the Company; or

 

(ii)         by
either the Company or a Buyer (as to itself but no other Buyer) upon written notice to the other, if the Closing shall not
have taken place by 6:30 p.m. Eastern time on March 5, 2015, unless a later date shall have been approved by the
Company’s Board of Directors, but in no event later than March 31, 2015; provided, that the right to terminate this
Agreement under this Section 8(a)(ii) shall not be available to any party whose failure to comply with its obligations under
this Agreement has been the cause of or resulted in the failure of the Closing to occur on or before such time.

 

(b)          No
termination of this Agreement shall affect any obligation of the Company under this Agreement to reimburse such Buyer for the expenses
described in Section 4(g) above. Nothing contained in this Section 8 shall be deemed to release any party from any liability for
any breach by such party of the terms and provisions of this Agreement or the other Transaction Documents or to impair the right
of any party to compel specific performance by any other party of its obligations under this Agreement or the other Transaction
Documents.

 

9.          MISCELLANEOUS.

 

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

 

    	 	30	 

     

    

 

(b)          Counterparts.
This Agreement may be executed in two or more identical counterparts, all of which shall be considered one and the same agreement
and shall become effective when counterparts have been signed by each party and delivered to the other party. In the event that
any signature is delivered by facsimile transmission or, by an e-mail which contains a portable document format (.pdf) file of
an executed signature page, such signature page shall create a valid and binding obligation of the party executing (or on whose
behalf such signature is executed) with the same force and effect as if such signature page were an original thereof.

 

(c)          Headings;
Gender. The headings of this Agreement are for convenience of reference and shall not form part of, or affect, the interpretation
of, this Agreement, 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.

 

(d)          Severability.
If any provision of this Agreement is prohibited by law or otherwise determined to be invalid or unenforceable by a court of
competent jurisdiction, the provision that would otherwise be prohibited, invalid or unenforceable shall be deemed amended to
apply to the broadest extent that it would be valid and enforceable, and the invalidity or unenforceability of such provision
shall not affect the validity of the remaining provisions of this Agreement so long as this Agreement as so modified
continues to express, without material change, the original intentions of the parties as to the subject matter hereof and the
prohibited nature, invalidity or unenforceability of the provision(s) in question does not substantially impair the
respective expectations or reciprocal obligations of the parties or the practical realization of the benefits that would
otherwise be conferred upon the parties. The parties will endeavor in good faith negotiations to replace the prohibited,
invalid or unenforceable provision(s) with a valid provision(s), the effect of which comes as close as possible to that of
the prohibited, invalid or unenforceable provision(s), Notwithstanding anything to the contrary contained in this Agreement
or any other Transaction Document (and without implication that the following is required or applicable), it is the intention
of the parties that in no event shall amounts and value paid by the Company, or payable to or received by any of the Buyers,
under the Transaction Documents (including without ’limitation, any amounts that would be characterized as
“interest” under applicable law) exceed amounts permitted under any applicable law. Accordingly, if any obligation to
pay, payment made to any Buyer, or collection by any Buyer pursuant the Transaction Documents is finally judicially
determined to be contrary to any such applicable law, such obligation to pay, payment or collection shall be deemed to have
been made by mutual mistake of such Buyer, and the Company and such amount shall be deemed to have been adjusted
with ’retroactive effect to the maximum amount or rate of interest, as the case may be, as would not be so prohibited
by the applicable law. Such adjustment shall be effected, to the extent necessary, by reducing or refunding, at the option of
such Buyer, the amount of interest or any other amounts which would constitute unlawful amounts required to be paid or
actually paid to such Buyer under the Transaction Documents, For greater certainty, to the extent that any interest, charges,
fees, expenses or other amounts required to be paid to or received by such Buyer under any of the Transaction Documents or
related thereto are held to be within the meaning of “interest” or another applicable term to otherwise be
violative of applicable law, such amounts shall be pro-rated over the period of time to which they relate.

 

    	 	31	 

     

    

 

(e)          Entire
Agreement: Amendments. This Agreement, the other Transaction Documents and the schedules and exhibits attached hereto and
thereto and the instruments referenced herein and therein supersede all other prior oral or written agreements between the Buyers,
the Company, their affiliates and Persons acting on their behalf solely with respect to the matters contained herein and therein,
and this Agreement, the other Transaction Documents, the schedules and exhibits attached hereto and thereto and the instruments
referenced herein and therein contain the entire understanding of the parties solely with respect to the matters covered herein
and therein; provided, however, except as explicitly stated herein, nothing contained in this Agreement or any other Transaction
Document shall (or shall be deemed to) (i) have any effect on any agreements any Buyer has entered into with, or any instruments
any Buyer has received from, the Company prior to the date hereof with respect to any prior investment made by such Buyer in the
Company or (ii) waive, alter, modify or amend in any respect any obligations of the Company, or any rights of or benefits to any
Buyer or any other Person, in any agreement entered into prior to the date hereof between or among the Company and any Buyer,
or any instruments any Buyer received from the Company prior to the date hereof, and all such agreements and instruments shall
continue in full force and effect. Except as specifically set forth herein or therein, neither the Company nor any Buyer makes
any representation, warranty, covenant or undertaking with respect to such matters. For clarification purposes, the Recitals are
part of this Agreement. No provision of this Agreement may be amended other than by an instrument in writing signed by the Company
and the Required Buyers, any amendment to any provision of this Agreement made in conformity with the provisions of this Section
9(e) shall be binding on all Buyers and holders of Securities, as applicable, provided that no such amendment shall be effective
to the extent that it (1) applies to less than all of the holders of the Securities then outstanding or (2) imposes any obligation
or liability on any Buyer without such Buyer’s prior written consent (which may be granted or withheld in such Buyer’s
sole discretion). No waiver shall be effective unless it is in writing and signed by an authorized representative of the waiving
party, provided that the Required Buyers may waive any provision of this Agreement, and any waiver of any provision of this Agreement
made in conformity with the provisions of this Section 9(e) shall be binding on all Buyers and holders of Securities, as applicable,
provided that no such waiver shall be effective to the extent that it (1) applies to less than all of the holders of the Securities
then outstanding (unless a party gives a waiver as to itself only) or (2) imposes any obligation or liability on any Buyer without
such Buyer’s prior written consent (which may be granted or withheld in such Buyer’s sole discretion). No consideration
shall be offered or paid to any Person to amend or consent to a waiver or modification of any provision of any of the Transaction
Documents unless the same consideration also is offered to all of the parties to the Transaction Documents who are holders of
Notes, The Company has not, directly or indirectly, made any agreements with any Buyers relating to the terms or conditions of
the transactions contemplated by the Transaction Documents except as set forth in the Transaction Documents. Without limiting
the foregoing, the Company confirms that, except as set forth in this Agreement, no Buyer has made any commitment or promise or
has any other obligation to provide any financing to the Company or otherwise. As a material inducement for each Buyer to enter
into this Agreement, the Company expressly acknowledges and agrees that no due diligence or other investigation or inquiry conducted
by a Buyer, any of its advisors or any of its representatives shall affect such Buyer’s right to rely on, or shall modify
or qualify in any manner or be an exception to any of, the Company’s representations and warranties contained in this Agreement
or any other Transaction Document. “Required Buyers” means Buyers holding Notes having an aggregate
outstanding principal amount that represents a majority of the aggregate outstanding principal amount of all Notes.

 

    	 	32	 

     

    

 

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

 

If to the Company:

 

Mears Technologies, Inc.

20 Walnut Street, Suite 8

Wellesley Hills, MA 02481

 

with a copy (for informational purposes only) to:

 

WilmerHale LLP

60 State Street

Boston, Massachusetts 02109

Attention: Michael D. Bain, Esq.

 

If to a Buyer, to its address, facsimile number or e-mail address
set forth on such Buyer’s signature page hereto,

 

with a copy (for informational purposes only) to:

 

Golenbock Eiseman Assor Bell & Peskoe LLP

437 Madison Avenue, 40th Floor 

New York, NY 10022

 

    	 	33	 

     

    

 

Facsimile: (212) 754-0330

E-mail : ahudders@golenbock.com

cvandemark@golenbock.com

Attention: Andrew D, Hudders, Esq.

Carl Van Demark, Esq.

 

or to such other address, facsimile number
or e-mail address and/or to the. attention of such other Person as the recipient party has specified by written notice
given to each other party five (5) days prior to the effectiveness of such change. Written confirmation of receipt (A) given by
the recipient of such notice, consent, waiver or other communication, (B) mechanically or electronically generated by the sender’s
facsimile machine containing the time, date and recipient facsimile number or (C) provided by an overnight courier service shall
be rebuttable evidence of personal service, receipt by facsimile or receipt from an overnight courier service in accordance with
clause (1), (ii) or (iv) above, respectively. A copy of the e-mail transmission containing the time, date and recipient e-mail
address shall be rebuttable evidence of receipt by e-mail in accordance with clause (iii) above.

 

(g)          Successors
and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their respective successors and
assigns, including, as contemplated below, any assignee of any of the Securities. The Company shall not assign this Agreement or
any rights or obligations hereunder without the prior written consent of the Required Buyers; except in the event of a Change in
Control (as defined in the Notes) where the Company repays in full the outstanding Notes of each Buyer or offers each Buyer an
election to be repaid in full under such outstanding notes contingent only upon consummation of such Change in Control. A Buyer
may assign some or all of its rights hereunder in connection with any transfer of any of its Securities without the consent of
the Company, in which event such assignee shall be deemed to be a Buyer hereunder with respect to such assigned rights.

 

(h)          No
Third Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective permitted
successors and assigns, and is not for the benefit of, nor may any provision hereof be enforced by, any other Person, other than
the Indemnitees referred to in Section 9(k).

 

(i)          Survival.
The representations, warranties, agreements and covenants shall survive the Closing and shall expire on the conversion of the Notes
into Conversion Shares. Each Buyer shall be responsible’ only for its own representations, warranties, agreements and covenants
hereunder.

 

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

 

    	 	34	 

     

    

 

(k)          Indemnification.
In consideration of each Buyer’s execution and delivery of the Transaction Documents and acquiring the Securities thereunder
and in addition to all of the Company’s other obligations under the Transaction Documents, the Company shall defend, protect,
indemnify and hold harmless each Buyer and each holder of any Securities and all of their stockholders, partners, members, officers,
directors, employees and direct or indirect investors and any of the foregoing Persons’ agents or other representatives
(including, without limitation, those retained in connection with the transactions contemplated by this Agreement) (collectively,
the “Indemnitees”) from and against any and all actions, causes of action, suits, claims, losses, costs, penalties,
fees, liabilities and damages, and expenses in connection therewith (irrespective of whether any such Indemnitee is a party to
the action for which indemnification hereunder is sought), and including reasonable attorneys’ fees and disbursements for
one (1) counsel to all the Buyers (the “Indemnified Liabilities”), incurred by any Indemnitee as a result of,
or arising out of, or relating to (a) any misrepresentation or breach of any representation or warranty made by the Company in
any of the Transaction Documents, (b) any breach of any covenant, agreement or obligation of the Company contained in any, of
the Transaction Documents, or (c) any cause of action, suit, proceeding or claim brought or made against such Indemnitee by a
third party (including for these purposes a derivative action brought on behalf of the Company) or which otherwise involves such
Indemnitee that arises out of or results from (i) the execution, delivery, performance or successful enforcement of any of the
Transaction Documents, or (ii) the status of such Buyer as a Note holder as a result of the transactions contemplated by the Transaction
Documents or as a party to this Agreement (including, without limitation, as a party in interest or otherwise in any action or
proceeding for injunctive or other equitable relief). To the extent that the foregoing undertaking by the Company may be unenforceable
for any reason, the Company shall make the maximum contribution to the payment, and satisfaction of each of the Indemnified Liabilities
which is permissible under applicable law. Except as otherwise set forth herein, the mechanics and procedures with respect to
the rights. and obligations under this Section 9(k) shall be the same as those set forth in Section 6 of the Registration Rights
Agreement. No Indemnitee shall be entitled to indemnification under this Section 9(k) to the extent an Indemnified Liability arises
out of the gross negligence or willful misconduct of such Indemnitee. The Company shall not be obligated hereunder for any settlement
entered into by an Indemnitee without the Company’s prior written consent; provided, however, that the Company shall not
unreasonably withhold, delay or condition its consent.

 

(l)          Construction.
The language used in this Agreement will be deemed to be the language chosen by the parties to express their mutual intent, and
no rules of strict construction will be applied against any party. No specific representation or warranty shall limit the generality
or applicability of a more general representation or warranty. Each and every reference to share prices, shares of Common Stock
and any other numbers in this Agreement that relate to the Common Stock shall be automatically adjusted for stock dividends, .stock
splits, stock combinations and other similar transactions that occur with respect to the Common Stock after the date of this Agreement.

 

(m)          Remedies.
Each Person having any rights under any provision of this Agreement shall have all rights and remedies set forth in the Transaction
Documents and all rights and remedies which such holders have been granted at any time under any other agreement or contract and
all of the rights which such holders have under any law. Any Person having any rights under any provision of this Agreement shall
be entitled to enforce such rights specifically (without posting a bond or other security), to recover damages by reason of any
breach of any provision of this Agreement and to exercise all other rights granted by law. Furthermore, the Company recognizes
that in the event that it fails to perform, observe, or discharge any or all of its obligations under the Transaction Documents,
any remedy at law may prove to be inadequate relief to the Buyers. The Company therefore agrees that the Buyers shall be entitled
to seek specific performance and/or temporary; preliminary and permanent injunctive or other equitable relief from any court of
competent jurisdiction in any such case without the necessity of proving actual damages and without posting a bond or other security.

 

    	 	35	 

     

    

 

(n)          Withdrawal
Right. Notwithstanding anything to the contrary contained in (and without limiting any similar provisions of) the Transaction
Documents, whenever any Buyer exercises a right, election, demand or option under a Transaction Document and the Company does not
timely perform its related obligations within the periods therein provided, then such Buyer may rescind or withdraw, in its sole
discretion from time to time upon written notice to the Company, any relevant notice, demand or election in whole or in part without
prejudice to its future actions and rights.

 

(o)          Payment
Set Aside; Currency. To the extent that the Company makes a payment or payments to any Buyer hereunder or pursuant to any of
the other Transaction Documents or any of the Buyers enforce or exercise their rights hereunder or thereunder, and such payment
or payments or the proceeds of such enforcement or exercise or any part thereof are subsequently invalidated, declared to be fraudulent
or preferential, set aside, recovered from, disgorged by or are required to be refunded, repaid Or otherwise restored to the Company,
a trustee, receiver or any other Person under any law (including, without limitation, any bankruptcy law, foreign, state or federal
law, common law or equitable cause of action), then to the extent of any such restoration the obligation or part thereof originally
intended to be satisfied shall be revived and continued in full force and effect as if such payment had not been made or such enforcement
or setoff had not occurred. Unless otherwise expressly indicated, all dollar amounts referred to in this Agreement and the other
Transaction Documents are in United States Dollars (“U.S. Dollars”), and all amounts owing under this Agreement
and all other Transaction Documents shall be paid in U.S. Dollars. All amounts denominated in other currencies (if any) shall be
converted into the U.S. Dollar equivalent amount in accordance with the Exchange Rate on the date of calculation. “Exchange
Rate” means, in relation to any amount of currency to be converted into U.S. Dollars pursuant to this Agreement, the
U.S. Dollar exchange rate as published in The Wall Street Journal on the relevant date of calculation.

 

    	 	36	 

     

    

 

(p)          Independent
Nature of Buyers’ Obligations and Rights. The obligations of each Buyer under the Transaction Documents are several and not
joint with the obligations of any other Buyer, and no Buyer shall be responsible in any way for the performance of the obligations
of any other Buyer under any Transaction Document. Nothing contained herein or in any other Transaction Document, and no action
taken by any Buyer pursuant hereto or thereto, shall be deemed to constitute the Buyers as, and the Company acknowledges that the
Buyers do not so constitute, a partnership, an association, a joint venture or any other kind of group or entity, or create a presumption
that the Buyers are in any way acting in conceit or as a group or entity with respect to such obligations or the transactions
contemplated by the Transaction Documents or any matters, and the Company acknowledges that the Buyers are not acting in concert
or as a group, and the Company shall not assert any such claim, with respect to such obligations or the transactions contemplated
by the Transaction Documents. The decision of each Buyer to purchase Securities pursuant to the Transaction Documents has been
made by such Buyer independently of any other Buyer. Each Buyer acknowledges that no other Buyer has acted as agent for such Buyer
in connection with such Buyer making its investment hereunder and that no other Buyer will be acting as agent of such Buyer in
connection with monitoring such Buyer’s investment in the Securities or enforcing its rights under the Transaction Documents. The
Company and each Buyer confirms that each Buyer has independently participated. with the Company in the negotiation of the transaction
contemplated hereby with the advice of its own counsel and advisors. Each Buyer shall be entitled to independently protect and
enforce its rights, including, without limitation, the rights arising out of this Agreement or out of any other Transaction Documents,
and it shall not be necessary for any other Buyer to be joined as an additional party in any proceeding for such purpose. The use
of a single agreement to effectuate the purchase and sale of the Securities contemplated hereby was solely in the control of the
Company, not the action. or decision of any Buyer, and was done solely for the convenience of the Company and not because it was
required or requested to do so by any Buyer. It is expressly understood and agreed that each provision contained in this Agreement
and in each other Transaction Document is between the Company and. a Buyer, solely, and not between the Company and
the Buyers collectively and not between and among the Buyers.

 

[Signature pages follow]

 

    	 	37	 

     

    

 

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

 

	 	COMPANY:
	 	 
	 	MEARS TECHNOLOGIES, INC.,
	 	a Delaware corporation
	 	 	 
	 	By:	/s/ John D.T. Gerber
	 	 	Name: John D.T. Gerber
	 	 	Title: ChairmanExhibit 10.12

 

REGISTRATION RIGHTS AGREEMENT FOR
INVESTORS

 

THIS REGISTRATION
RIGHTS AGREEMENT (this “Agreement”) is made as of March 17, 2015 by and among Mears Technologies, Inc.,
a Delaware corporation (“Company”), and the persons listed on Schedule A hereto, referred to individually as
the “Holder” and collectively as the “Holders”.

 

A.           In
connection with the Securities Purchase Agreement by and among the parties hereto, dated as of March 17, 2015 (the “Securities
Purchase Agreement”), the Company has agreed, upon the terms and subject to the conditions of the Securities
Purchase Agreement, to issue the Notes (as defined in the Securities Purchase Agreement) to the Holders, which will be convertible
into Conversion Shares (as defined in the Notes) in accordance with the terms of the Notes.

 

B.         To
induce the Holders of the Notes to consummate the transactions contemplated by the Securities Purchase Agreement, the Company has
agreed to provide to the Holders, and their assignees or successors in interest, certain rights to provide for the registration
for resale of their Conversion Shares by means of a Registration Statement under the Securities Act, pursuant to the terms of this
Agreement.

 

C.           Unless
otherwise provided in this Agreement, capitalized terms used herein shall have the respective meanings set forth in Section 13
hereof.

 

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

 

1.          Registration.

 

(a)          Piggyback
Registrations Rights. If, at any time after the Company shall become subject to the periodic reporting obligations (a “Reporting
Company”) under the Securities Exchange Act through the date that is five years after the date the Company becomes a
Reporting Company, there is not an effective Registration Statement covering the Registrable Securities and the Company shall determine
to prepare and file with the Commission a Registration Statement relating to an offering for its own account or the account of
others under the Securities Act of any of its equity securities (other than on Form S-4 or Form S-8, each as promulgated under
the Securities Act, or their then equivalent relating to equity securities to be issued solely in connection with any acquisition
of any entity or business or equity securities issuable in connection with stock option or other employee benefit plans), then
the Company shall send to the Holders a written notice of such determination at least twenty (20) days prior to the filing of any
such Registration Statement and shall include in such Registration Statement all Registrable Securities requested by any Holder
hereunder to be included in the registration within ten (10) days after the Company sends such notice to the Holders (the “Piggyback
Shares”) for resale and offer on a continuous basis pursuant to Rule 415; provided, that (i) if, at any time after giving
written notice of its intention to register any securities and prior to the effective date of the Registration Statement filed
in connection with such registration, the Company determines for any reason not to proceed with or terminate such registration,
the Company will be relieved of its obligation to register any Registrable Securities in connection with such registration, (ii)
in case of a determination by the Company to delay registration of its securities, the Company will be permitted to delay the registration
of Registrable Securities for the same period as the delay in registering such other securities, (iii) each Holder is subject to
confidentiality obligations and shall not use or disclose any information gained in this process or any other material nonpublic
information he, she or it obtains, (iv) each Holder or assignee or successor in interest shall comply with all applicable laws
relating to insider trading or similar restrictions; and (v) if all of the Registrable Securities of the Holders cannot be so included
due to Commission Comments, Commission Guidance or Underwriter Cutbacks, then the Company may reduce, in accordance with the provisions
of Section l(c) hereof; the number of Piggyback Shares included in such Registration Statement required to comply with such Commission
Comments, Commission Guidance or Underwriter Cutbacks.

 

     

     

    

 

(b)          Initial
Registration Statement. At the election of each Holder, the Company shall be required to include up to all Piggyback Shares
held by such Holder for resale and offer on a continuous basis pursuant to Rule 415 in the first Registration Statement filed
after the date that it becomes a Reporting Company (the “Initial Registration Statement”); provided,
however, that if all of the Piggyback Shares of the Holders cannot be so included due to Commission Comments, Commission Guidance
or Underwriter Cutbacks, then the Company may reduce, in accordance with the provisions of Section 1(c) hereof, the number of
Piggyback Shares included in such Registration Statement required to comply with such Commission Comments, Commission Guidance
or Underwriter Cutbacks.

 

(c)          Cutback
Provisions. In the event all of the Registrable Securities cannot be or are not included in a Registration Statement due to
Commission Comments, Commission Guidance or Underwriter Cutbacks, the Company and the Holders agree that securities shall be removed
from such Registration Statement in the following order until no further removal is required by Commission Comments, Commission
Guidance or Underwriter Cutbacks:

 

(i)          First,
any securities held by any former employee, consultant or affiliate of the Company shall be removed, pro rata based on the number
of securities being registered for such former employees, consultants or affiliates held by all of the former employees of the
Company and any of their affiliates and successors in interest, whether pursuant to agreement or otherwise and any other person
with any registration rights outstanding on the date hereof;

 

(ii)         Second,
the securities held by National Securities Corporation (“National Securities”) and its members and affiliates,
if any, obtained solely by reason of providing services to the Company, which are being registered pursuant to any registration
rights agreement or otherwise (for clarity, any securities held by National Securities or its members or affiliates which were
acquired upon payment of a purchase price in cash or property will not be subject to this provision (c)(ii)); and

 

(iii)        Third,
the Registrable Securities held by the Holders that are requested to be included in the Registration Statement shall be removed,
pro rata based on the number of Registrable Shares held by each Holder in comparison to the number of Registrable Securities held
by all Holders who have requested to include any Registrable Securities in the Registration Statement.

 

(d)          [Reserved.]

 

(e)          Filing:
Content. The Company will use its commercially reasonable efforts to cause each Registration Statement pursuant to which any
Registrable Securities are included, including the Initial Registration Statement, to contain the Plan of Distribution substantially
similar to that attached hereto as Schedule B. The Company shall use its commercially reasonable efforts to cause any Registration
Statement filed under this Section 1, including the Initial Registration Statement, to be declared effective under the Securities
Act as promptly as practicable after the filing thereof and shall keep such Registration Statement continuously effective under
the Securities Act until the earlier of (i) one year after its Effective Date (provided, however, the one year period shall be
extended for any Grace Period), (ii) such time as all of the Registrable Securities covered by such Registration Statement have
been publicly sold by the Holders, or (iii) such time as all of the Registrable Securities covered by such Registration Statement
may be sold by the Holders pursuant to Rule 144 without regard to both the volume limitations for sales as provided in Rule 144
and the limitations for such sales provided in Rule 144(i), if applicable, as determined by the counsel to the Company pursuant
to a written opinion letter to such effect, addressed and acceptable to the Company's transfer agent and the affected Holder (“Effectiveness
Period”). By 5:00 p.m. (New York City time) on the business day immediately following the Effective Date of a Registration
Statement, the Company shall file with the Commission in accordance with Rule 424 under the Securities Act the final Prospectus
to be used in connection with sales pursuant to such Registration Statement (whether or not such filing is technically required
under such Rule). Notwithstanding the foregoing portion of this Section 1(e), the Company shall have the right in its sole discretion
to withdraw any Registration Statement filed under this Section 1 prior to its effectiveness.

 

     

     

    

 

(f)          Termination
of Piggyback Registration Rights. The registration rights afforded to each Holder under this Section 1 shall terminate on the
earliest date when all Registrable Securities of the Holder either: (i) have been publicly sold by the Holder pursuant to a Registration
Statement, (ii) have been covered by an effective Registration Statement which has been effective for an aggregate period of sixteen
(16) months (whether or not consecutive), provided, however, the time period shall be calculated so as to exclude any Grace Period,
or (iii) may be sold by the Holder pursuant to Rule 144 without regard' to both the volume limitations for sales as provided in
Ride 144 and the limitations for such sales provided in Rule 144(i), if applicable, as determined by the counsel to the Company
pursuant to a written opinion letter to such effect, addressed and acceptable to the Company's transfer agent and the affected
Holder in its reasonable discretion.

 

2.          Demand
Registration Rights.

 

(a)          Demand
Right. Commencing on the date that is one hundred eighty (180) days after the Company becomes a Reporting Company, the Holders
as a group representing at least 50% of the Registrable Securities (a “Requesting Group”) shall have a separate
one-time right, by written notice to the Company, signed by such Holders (the “Demand Notice”), to request
the Company to register for resale all Registrable Securities included by the Requesting Group in the Demand Notice (the “Demand
Shares”) under and in accordance with the provisions of the. Securities Act by filing with the Commission a Registration
Statement covering the resale of such Demand Shares (the “Demand Registration Statement”). A copy of the Demand
Notice also shall be provided by the Company to each of the other Holders who will have fifteen (15) days to notify the Company
in writing to include their Registrable Securities as part of the Demand Shares, the failure of which, however, shall not in any
way affect the rights of the Requesting Group pursuant to this Section 2(a). The Demand Registration Statement required hereunder
shall be on any form of registration statement then available for the registration of the Registrable Securities, as selected
by the Company in accordance with applicable law and regulation. The Company will use its commercially reasonable efforts to file
the DeMand Registration Statement within forty-five (45) days of the receipt of the Demand Notice, provided if the Demand Notice
is given within the forty-five (45) days after the prior fiscal year end, then the Company will use its reasonably commercial
efforts to file the Demand Registration Statement within ninety (90) days of the fiscal year end of the Company. The Company shall
use its commercially reasonable efforts to cause the Demand Registration Statement to be declared effective under the Sectirities
Act as promptly as practicable after the filing thereof and to keep the Demand Registration Statement continuously effective under
the Securities Act during the Effectiveness Period.

 

(b)          Inclusion
of Other Registrable Shares and Cutback Provisions. If as a result of Commission Comments or Commission Guidance, not all
shares are included that are desired to be included in a Registration Statement for the Demand Shares, the provisions of Section
1(c) shall apply, subject to the Demand Priority (as defined below) of the Requesting Group. Pursuant to the piggyback registration
rights granted under this Agreement, the Company may include the Registrable Shares of the other Holders which will be subject
to the provision of Section 1(c) hereof, except that under Section 1(c)(iii), there will be no cutback of the Registrable Securities
of the Requesting Group until the Holders of Piggyback Shares and the shares of any other person exercising piggyback rights under
any other registration rights agreement (except for National Securities and their current and former affiliates, which shall have
the priority established in Section 1(c)) have been removed, and thereafter if any further Registrable Securities have to be removed
then those of the Requesting Group will be removed pro rata (the “Demand Priority”), Notwithstanding the foregoing,
if any other securities of any person other than the Holders or the Requesting Group or National Securities and their current
and former affiliates are included on the Demand Registration Statement, such securities will be removed, if required pursuant
to Commission Comments, after removal of the securities indicated in Section 1(c)(i) and before the securities indicated in Section
1(c)(ii), as such persons decide among themselves, and if there is no agreement at to such removal provided to the Company within
a reasonable time, time being of the essence, then all the such securities will be removed.

 

     

     

    

 

(c)          Termination
of Demand Registration Rights. The registration rights afforded to each Holder under this Section 2 shall terminate on the
earliest date when all Registrable Securities of the Holder either: (i) have been publicly sold by the Holder pursuant to a Registration
Statement, (ii) have been covered by an effective Registration Statement which has been effective for an aggregate period of sixteen
(16) months (whether or not consecutive), provided, however, the time period shall be calculated so as to exclude any Grace
Period, or (iii) may be sold by the Holder pursuant to Rule 144 without regard to both the volume limitations for sales as provided
in Rule 144 and the limitations for such sales provided in Rule 144(i), if applicable, as determined by the counsel to the Company
pursuant to a written opinion letter to such effect, addressed and acceptable to the Company's transfer agent and the affected
Holder in its reasonable discretion.

 

3.          Registration
Procedures. Whenever any Registrable Securities are to be registered pursuant to this Agreement, the Company shall use its
commercially reasonable efforts to. effect the registration and sale of such Registrable Securities in accordance with
the intended method of disposition thereof, and pursuant thereto the Company shall have the following obligations:

 

(a)          The
Company shall prepare and file with the Commission a Registration Statement with respect to such Registrable Securities and use
its commercially reasonable efforts to cause such Registration Statement to become effective.

 

(b)          The
Company shall prepare and file with the Commission such amendments (including post-effective amendments) and supplements to a Registration
Statement and the Prospectus used in connection with such Registration Statement, which Prospectus is to be filed pursuant to Rule
424 promulgated under the Securities Act, as may be necessary to keep such Registration Statement effective at all times during
the Effectiveness Period, and, during such period, comply with the provisions of the Securities Act with respect to the disposition
of all Registrable Securities of the Company covered by such Registration Statement. In the case of amendments and supplements
to a Registration Statement which are required to be filed pursuant to this Agreement by reason of the Company filing a report
on Forms 10-K, 10-Q or Current Report on Form 8-K, or any analogous report under the Securities Exchange Act, the Company shall
have incorporated such report by reference into such Registration Statement, if applicable, or shall file such amendments or supplements
with the Commission on the same day on which the Securities Exchange Act report is filed which created the requirement for the
Company to amend or supplement such Registration Statement.

 

(c)          The
Company shall furnish to each Holder of Registrable Securities in any Registration Statement, without charge, (i) promptly after
the same is prepared and filed with the Commission at least one copy of such Registration Statement and any amendment(s) thereto,
including financial statements and schedules; all documents incorporated therein by reference, if requested by such seller, all
exhibits and each preliminary Prospectus, (ii) unless such Holder is exempt from the prospectus delivery
requirements pursuant to Rule 172 of the Securities Act, upon the effectiveness of any Registration Statement, ten (10) copies
of the Prospectus included in such Registration Statement and all amendments and supplements thereto (or such other number of copies
as such seller may reasonably request), and (iii) such other documents, including copies of any preliminary or final Prospectus,
as such seller may reasonably request from time to time in order to facilitate the disposition of the Registrable Securities owned
by such seller.

 

     

     

    

 

(d)          The
Company shall use its commercially reasonable efforts to (i) register and qualify, unless an exemption from registration and qualification
applies, the resale by any seller of the Registrable Securities covered by a Registration Statement under such other securities
or “blue sky” laws of all applicable jurisdictions in the United States, (ii) prepare and file In those jurisdictions,
such amendments (including post-effective amendments) and supplements to  such registrations and qualifications as may be
necessary to maintain the effectiveness thereof during the Effectiveness Period, (iii) take such other actions as may be necessary
to maintain such registrations and qualifications in effect at all times during the Effectiveness Period, and (iv) take all other
actions reasonably necessary or advisable to qualify the Registrable Securities for sale in such jurisdictions; provided, however,
that the Company shall not be required in connection therewith or as a condition thereto to (x) qualify to do business in any
jurisdiction where it would not otherwise be required to qualify but for this Section 3(d), (y) subject itself to general taxation
in any such jurisdiction, or (z) file a general consent to service of process in any such jurisdiction.

 

(e)          The
Company shall use its reasonable best efforts to prevent the issuance of any stop order or other suspension of effectiveness of
a Registration Statement, or the suspension of the qualification of any of Registrable Securities for sale in any jurisdiction
and, if such an order or suspension is issued, to obtain the withdrawal of such order or suspension at the earliest practicable
time and to notify the Holder of any Registrable Securities included in the offering under such Registration Statement of such
order and the resolution thereof or its receipt of actual notice of the initiation or threat of any proceeding for such purpose.

 

(f)          The
Company shall notify the Holder in writing of the happening of any event, as promptly as practicable after becoming aware of such
event, as a result of which the Prospectus included in a Registration Statement, as then in effect, includes an untrue statement
of a material fact or omission to state a material fact required to be stated therein or necessary to make the statements therein,
in the light of the circumstances under which they were made, not misleading (provided that in no event shall such notice contain
any material, nonpublic information), and, subject to Section 3(r), promptly prepare a supplement or amendment to such Registration
Statement to correct such untrue statement or omission, and, unless such Holder is exempt from the prospectus delivery requirements
pursuant to Rule 172 of the Securities Act, deliver ten (10) copies of such supplement or amendment to the Holder (or such other
number of copies as the Holder may reasonably request).

 

(g)          The
Company shall promptly notify the Holder in writing (i) when a Prospectus or any Prospectus supplement or post-effective amendment
has been filed, and when a Registration Statement or any post-effective amendment has become effective (notification of such effectiveness
shall be delivered to the Holder by email or facsimile on the same day of such effectiveness or by overnight delivery), (ii) of
any request by the Commission for amendments or supplements to a Registration Statement or related Prospectus or related information,
and (iii) of the Company's reasonable determination that a post-effective amendment to a Registration Statement would be appropriate.

 

(h)          If
the Holder is required under applicable Commission Guidance to be described in a Registration Statement as an underwriter, at the
reasonable request of such Holder, the Company shall use its best efforts to furnish to such Holder, on the date of the effectiveness
of such Registration Statement and thereafter from time to time on such dates as the Holder may reasonably request (i)
a letter, dated such date, from the Company's independent certified public accountants in form and substance as is customarily
given by independent certified public accountants to underwriters in an underwritten public offering, addressed to the Holder,
and (ii) an opinion, dated as of such date, of counsel representing the Company for purposes of such Registration Statement, in
form, scope and substance as is customarily given in an underwritten public offering, addressed to the Holder.

 

     

     

    

 

(i)          If
the Holder is required under applicable Commission Guidance to be described in a Registration Statement as an underwriter, then
at the request of such Holder in connection with such Holder's due diligence requirements, the Company shall make available for
inspection by (i) the Holder, (ii) the Holder's legal counsel, and (iii) one firm of accountants or other agents retained by the
Holder (collectively, the "Inspectors"), all pertinent financial and other records, and pertinent corporate documents
and properties of the Company (collectively, the “Records”), as shall be reasonably deemed necessary by each
Inspector, and cause the Company's officers, directors and employees to supply all information which any Inspector may reasonably
request; provided, however, that each Inspector shall agree to hold in strict confidence
and shall not make any disclosure (except to the Holder) or use of any Record or other information which the Company determines
in good faith to be confidential, and of which determination the Inspectors are so notified, unless (a) the release of such Records
is ordered pursuant to a final, non-appealable subpoena or order from a court or government body of competent jurisdiction, or
(b) the information in such Records has been made generally available to the public other than by disclosure in violation of this
or any other agreement of which the Inspector has knowledge. Each Holder agrees that it shall, upon learning that disclosure of
such Records is sought in or by a court or governmental body of competent jurisdiction or through other means, give prompt notice
to the Company and allow the Company, at its expense, to undertake appropriate action to prevent disclosure of, or to obtain a
protective order for, the Records deemed confidential. Nothing herein (or in any other confidentiality agreement between the Company
and the Holder) shall be deemed to limit the Holder's ability to sell Registrable Securities in a manner which is otherwise consistent
with applicable laws and regulations, Notwithstanding the foregoing, each Holder acknowledges that the Records may contain material
non-public information and agrees that it shall strictly comply with the insider trading rules prohibiting the purchasing, selling
or the Company's securities while in the possession of any such material non-public information.

 

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

 

(k)          The
Company shall (i) if applicable, use its best efforts to cause all of the Registrable Securities covered by a Registration Statement
to be listed on each securities exchange on which securities of the same class or series issued by the Company are then listed,
if any, if the listing of such Registrable Securities is then permitted under the rules of such exchange, or (ii) otherwise, use
its commercially reasonable efforts to secure designation and quotation of all of the Registrable Securities covered by a Registration
Statement on any one of the different levels of The NASDAQ Stock Market, or (iii) if, despite the Company's best efforts or commercially
reasonable efforts, as applicable, to satisfy, the preceding clauses (i) and (ii) the Company is unsuccessful in satisfying the
preceding clauses (i) and (ii), to instead secure the inclusion for quotation on the Over-the-Counter Bulletin Board for such Registrable
Securities and, without limiting the generality of the foregoing, to use its commercially reasonable efforts to encourage at least
two market makers to register with the Financial Industry Regulatory Authority, Inc. (“FINRA”) as such with
respect to such Registrable Securities. For the avoidance of doubt, subject to and in accordance with Section 5, the Company shall
pay all fees and expenses of the Company in connection with satisfying its obligation under this Section 3(k).

 

     

     

    

 

(l)          If
requested by the Holder, and permissible under Commission Guidance, the Company shall (i) as soon as practicable incorporate in
a Prospectus supplement or post-effective amendment such information as the Holder reasonably requests to be included therein relating
to the sale and distribution of Registrable Securities, including, without limitation, information with respect to the Registrable
Securities being offered or sold, the purchase price being paid therefor and any other terms of the offering of the Registrable
Securities to be sold in such offering; (ii) as soon as practicable make all required filings of such Prospectus supplement or
post-effective amendment after being notified of the matters to be incorporated in such Prospectus supplement or post-effective
amendment; and (iii) as soon as practicable, supplement or make amendments to any Registration Statement if reasonably requested
by the Holder holding any Registrable Securities.

 

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

 

(n)          The
Company shall use its commercially reasonable efforts to cause the Registrable Securities covered by a Registration Statement to
be registered with or approved by such other U.S. governmental agencies or authorities, but only in matters not contemplated Section
3(d) by or reasonably related to such matters (which matters are to be governed exclusively by Section 3(d)), as may be strictly
necessary to consummate the disposition of such Registrable Securities by the Holder strictly in accordance with the Plan of Distribution
included in the Registration Statement (as such Plan of Distribution may be modified from time to time in any filing with the Commission).

 

(o)          The
Company shall make generally available to its security holders as soon as practicable, but not later than ninety (90) days after
the close of the period covered thereby (or, if different, within the period permitted for the filing of reports on Forms 10-K
or 10-Q), an earnings statement (in form complying with, and in the manner provided by, the provisions of Rule 158 under the Securities
Act) covering a twelve-month period beginning not later than the first day of the Company's fiscal quarter next following the Effective
Date of a Registration Statement.

 

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

 

(q)          Within
two (2) business days after a Registration Statement which covers Registrable Securities is ordered effective by the Commission,
the Company shall deliver, and shall cause legal counsel for the Company to deliver, to the transfer agent for such Registrable
Securities (with copies to the Holder whose Registrable Securities are included in such Registration Statement) confirmation that
such Registration Statement has been declared effective by the Commission in the form attached hereto as Exhibit A
and the Irrevocable Transfer Agent Instructions in the form attached hereto as Exhibit B.

 

     

     

    

 

(r)          Notwithstanding
anything to the contrary herein, at any time after the Effective Date of a Registration Statement, the Company may delay the disclosure
of material, non-public information concerning the Company the disclosure of which at the time is not, in the good faith opinion
of the Board of Directors of the Company, in the best interest of the Company and not, after consultation with legal counsel, otherwise
required (a “Grace Period”); provided, that the Company shall promptly (i) notify the Holder in writing of the
existence of material, non-public information giving rise to a Grace Period (provided that in each notice the Company will not
disclose the content of such material, non-public information to the Holder) and the date on which the Grace Period will begin,
and (ii) notify the Holder in writing of the date on which the Grace Period ends; and, provided further, that no Grace Period shall
exceed sixty (60) consecutive days and during any three hundred sixty-five.(365) day period such Grace Periods shall
not exceed an aggregate of one hundred twenty (120) days (each, an “Allowable Grace Period”). For purposes of
determining the length of a Grace Period above, the Grace Period shall begin on and include the date the Holder receives the notice
referred to in clause (i) and shall end on and include the later of the date the Holder receives the notice referred to in clause
(ii) and the date referred to in such notice. The provisions of Section 3(f) hereof shall not be applicable during the period of
any Allowable Grace Period. Upon expiration of the Grace Period, the Company shall again be bound by Section 3(f) with respect
to the information giving rise thereto unless such material, non-public information is no longer applicable. Notwithstanding anything
to the contrary, the Company shall cause its transfer agent to deliver unlegended shares of Common Stock to a transferee of the
Holder in connection with any sale of Registrable Securities with respect to which the Holder has entered into a contract for sale,
and delivered a copy of the Prospectus included as part of the applicable Registration Statement (unless an exemption from such
Prospectus delivery requirements exists), prior to the Holder's receipt of the notice of a Grace Period or, if earlier, Holders
knowledge of the material, non-public information concerning the Company that gave rise to the Grace Period, and for which the
Holder has not yet settled.

 

4.          Obligations
of the Holders.

 

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

 

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

 

(c)          The
Holder agrees that, upon receipt of any notice from the Company of the happening of any event of the kind described in Sections
3(e) or 3(f) or of a Grace Period under Section 3(r), the Holder will immediately discontinue disposition of Registrable Securities
pursuant to any Registration Statement(s) covering such Registrable Securities until the Holder's receipt of the copies of the
supplemented or amended Prospectus contemplated by Sections 3(e) or 3(f) or receipt of notice that no supplement or amendment is
required. Notwithstanding anything to the contrary, the Company shall cause its transfer agent to deliver unlegended shares of
Common Stock to a transferee of the Holder in connection with any sale of Registrable Securities with respect, to which the Holder
has entered into a contract for sale prior to the Holder's receipt of a notice from the Company of
the happening of any event of the kind described in Sections 3(e) or 3(f) or of any Grace Period, or, if earlier, Holders knowledge
of the material, non-public information concerning the Company or the facts or circumstances that gave rise to the Grace Period
or of the Section 3(e) or 3(f) event, and for which the Holder has not yet settled.

 

     

     

    

 

(d)          The
Holder covenants and agrees that it will comply with the Prospectus delivery requirements
of the Securities Act as applicable to it or an exemption therefrom in connection with sales of Registrable Securities pursuant
to a Registration Statement.

 

5.          Registration
Expenses. All expenses incident  to the Company's performance of or compliance with this Agreement, including without
limitation all registration and filing fees, fees and expenses of compliance with securities or blue sky laws, printing
expenses, messenger and delivery expenses, fees and disbursements of custodians, and fees and disbursements of counsel for
the Company and all independent certified public accountants, underwriters retained by the Company (excluding discounts,
commissions and placement agent fees) and other Persons retained by the Company (all such expenses being herein called
“Registration Expenses”), shall be borne by the Company. Further, the Company shall pay its internal
expenses (including, without limitation, all salaries and expenses of its officers and employees performing legal or
accounting duties), the expense of any annual audit or quarterly review, the expense of any liability insurance and the
expenses and fees for listing the securities to be registered on each securities exchange on which similar securities issued
by the Company are then listed.

 

6.          Indemnification.

 

In the event any Registrable
Securities are included in a Registration Statement under this Agreement:

 

(a)          To
the fullest extent permitted by law, the Company will, and hereby does, indemnify, hold harmless and defend the Holder, the
directors, officers, members, partners, employees, agents, representatives of, and each Person, if any, who controls the
Holder within the meaning of the Securities Act or the Securities Exchange Act (each, an “Indemnified
Person”), against any losses, claims, damages, liabilities, judgments, fines, penalties, charges, costs, reasonable
attorneys' fees, amounts paid in settlement or expenses, joint or several, (collectively, “Claims”)
incurred in investigating, preparing or defending any action, claim, suit, inquiry, proceeding, investigation or appeal taken
from the foregoing by or before any court or governmental, administrative or other regulatory agency, body or the Commission,
whether pending or threatened, whether or not an indemnified party is or may be a party thereto (“Indemnified
Damages”), to which any of them may become subject insofar as such Claims (or actions or proceedings, whether
commenced or threatened, in respect thereof) arise out of or are based upon: (i) any untrue statement or alleged untrue
statement of a material fact in a Registration Statement or any post-effective amendment thereto or in any filing made in
connection with the qualification of the offering under the securities or other "blue sky" laws of any jurisdiction
in which Registrable Securities are offered, or the omission or alleged omission to state a material fact required to be
stated therein or necessary to make the statements therein not misleading, (ii) any untrue statement or alleged untrue
statement of a material fact contained in any preliminary Prospectus if used prior to the effective date of such
Registration Statement, or contained in the final Prospectus (as amended or supplemented, if the Company files any amendment
thereof or supplement thereto with the Commission) or the omission or alleged omission to state therein any material fact
necessary to make the statements made therein, in the light of the circumstances under which the statements therein were
made, not misleading, (iii) any violation or alleged violation by the Company of the Securities Act or the Securities
Exchange Act, any other law, including, without limitation, any state securities law, or any rule or regulation thereunder
relating to the offer or sale of the Registrable Securities pursuant to a Registration Statement or (iv) any violation of
this Agreement (the matters in the foregoing clauses (1) through (iv) being, collectively, “Violations”).
Subject to Section 6(c), the Company shall reimburse the Indemnified Persons, promptly as such expenses are incurred and are
due and payable, for any legal fees or other reasonable expenses incurred by them in connection with investigating or
defending any such Claim, Notwithstanding anything to the contrary contained herein, the indemnification agreement contained
in this Section 6(a): (i) shall not apply to a Claim by an Indemnified Person arising out of or based upon a Violation which
occurs based on a Holder's material breach of its covenants or agreements in Section 4(c) or (d) or in reliance upon and in
conformity with information furnished in writing to the Company by such Indemnified Person or by a Related
Information Provider expressly for use in connection with the preparation of the Registration Statement or any such amendment
thereof or supplement thereto and (ii) shall not be available to the extent such Claim is based on a failure of the Holder to
deliver or to cause to be delivered the Prospectus made available by the Company, including a corrected Prospectus, if such
Prospectus or corrected Prospectus was timely made available by the Company pursuant to Section 3(c); and (iii) shall not
apply to amounts paid in settlement of any Claim if such settlement is effected without the prior written consent of the
Company, which consent shall not be unreasonably withheld or delayed. Such indemnity shall remain in full force and effect
regardless of any investigation made by or on behalf of the Indemnified Person and shall survive the transfer of the
Registrable Securities by the Holder pursuant to Section 10. “Related Information Provider” means, in
respect of any Indemnified Person, the Holder to which such Indemnified Person is related or another Indemnified Person that
is related to the Holder to which such Indemnified Person is related.

 

     

     

    

 

(b)          To
the fullest extent permitted by law, in connection with any Registration Statement in which a Holder's Registrable Securities
are included or in which a Holder is otherwise participating, such Holder will severally and not
jointly indemnify and hold harmless the Company, each of its directors, each of its officers who has signed the Registration
Statement, each Person, if any, who controls the Company within the meaning of the Securities Act, any underwriter, any other
Holder or other Person selling securities in such Registration Statement and any controlling person of any such underwriter
or other Holder or other Person (each an “Other Indemnified Person”), against any Claims or Indemnified
Damages to which any of them may become subject, under the Securities Act, the Exchange Act or otherwise, insofar as such
Claim or Indemnified Damages arise out of or are based upon any Violation, in each case to the extent, and only to the
extent, that such Violation occurs based on a Holder's material breach of its covenants or agreements in Section 4(c) or (d)
or in reliance upon and in conformity with written information furnished by such Holder or by a Related Information Provider
expressly for use in connection with such Registration Statement; and each such Holder will pay, as incurred, any legal or
other expenses reasonably incurred by any Other Indemnified Person intended to be indemnified pursuant to this Section 6(b),
in connection with investigating or defending any such Claim; provided, however, that the indemnity agreement
contained in this Section 6(b) shall not apply to amounts paid in settlement of any such Claim if such settlement is effected
without the prior written consent of the Holder, which consent shall not be unreasonably withheld; provided, further,
however, that the Holder shall be liable under this Section 6(b) for only that amount of a Claim or Indemnified Damages
as does not exceed the net proceeds to the Holder as a result of the sale of Registrable Securities pursuant to such
Registration Statement, except in the case of fraud by such Holder. Such indemnity shall remain in full force and effect
regardless of any investigation made by or on behalf of such Other Indemnified Person and shall survive the transfer of the
Registrable Securities by the Holder pursuant to Section 10.

 

     

     

    

 

(c)          Promptly
after receipt by an Indemnified Person or Other Indemnified Person under this Section 6 of notice of the commencement of any action
or proceeding (including any governmental action or proceeding) involving a Claim, such Indemnified Person or Other Indemnified
Person shall, if a claim for indemnification in respect thereof is to be made against any indemnifying party under this Section
6, deliver to the indemnifying party a written notice of the commencement thereof, and the indemnifying party shall have the right
to participate in, and, to the extent the indemnifying party so desires, jointly with any other indemnifying party similarly
noticed, to assume control of the defense thereof with counsel mutually satisfactory to the indemnifying party and reasonably
satisfactory to the Indemnified Person or the Other Indemnified Person, as the case may be; provided, however,
that an Indemnified Person or Other Indemnified Person shall have the right to retain its own counsel with the fees and expenses
of not more than one counsel for all such Indemnified Persons or all such Other Indemnified Persons to be paid by the indemnifying
party, if, in the reasonable opinion of counsel retained by the indemnifying party, the representation by such counsel of the
Indemnified Person or Other Indemnified Person and the indemnifying party would be inappropriate due to actual or potential differing
interests between such Indemnified Person or Other Indemnified Person and any other party represented by such counsel in such
proceeding. The Other Indemnified Person or Indemnified Person, as applicable, shall cooperate fully with the indemnifying party
in connection with any negotiation or defense of any such action or Claim by the indemnifying party and shall furnish to the indemnifying
party all information reasonably available to such Other Indemnified Person or such Indemnified Person which relates to such action
or Claim. The indemnifying party shall keep the Other Indemnified Person or Indemnified Person, as applicable, reasonably apprised
at all times as to the status of the defense or any settlement negotiations with respect thereto. No indemnifying party shall
be liable for any settlement of any action, claim or proceeding effected without its prior written consent; provided,
however, that the indemnifying party shall not unreasonably withhold, delay or condition its consent. No indemnifying
party shall, without the prior written consent of the Other Indemnified Person or Indemnified Person, as applicable, consent to
entry of any judgment or enter into any settlement or other compromise which does not include as an unconditional term thereof
the giving by the claimant or plaintiff to such Other Indemnified Person or such Indemnified Person of a release from all liability
in respect to the Claim at issue, and such settlement shall not include any admission as to fault on the part of such Other Indemnified
Person or such Indemnified Person. Following indemnification as provided for hereunder, the indemnifying party shall be subrogated
to all rights of the Other Indemnified Person or Indemnified Person, as applicable, with respect to all third parties, firms or
corporations relating to the matter for which indemnification has been made. The failure to deliver written notice to the indemnifying
party within a reasonable time of the commencement of any such action shall not relieve such indemnifying party of any liability
to the Indemnified Person or Other Indemnified Person, as applicable, under this Section 6, except to the extent that the indemnifying
party is materially prejudiced in its ability to defend such action.

 

(d)          The
indemnification required by this Section 6 shall be made by periodic payments of the amount thereof during the course of the investigation
or defense, as and when bills are received or Indemnified Damages are incurred, subject to an undertaking by the Indemnified Person
or the Other Indemnified Person, as applicable, to return such payments to the extent a court of competent jurisdiction or other
competent authority determines that such payments were unlawful or were not required under this Agreement.

 

(e)          Without
any duplication or multiplication of damages, the indemnity agreements contained herein shall be in addition to (i) any cause of
action or similar right of the Other Indemnified Person or Indemnified Person against the indemnifying party or others, and (ii)
any liabilities the indemnifying party may be subject to pursuant to the law.

 

(f)          Unless
suspended by the underwriting agreement applicable to any registration, the obligations of the Company and Holders under this Section
6 shall survive the completion of any offering of Registrable Securities in a Registration Statement under this Agreement, or otherwise.

 

     

     

    

 

7.          Contribution.
To the extent any indemnification by an indemnifying party is prohibited or limited by law, such indemnifying party agrees
to make the maximum contribution with respect to any amounts for which it would otherwise be liable under Section 6 to the
fullest extent permitted by law; provided, however, that: (i) no Person involved
in the sale of Registrable Securities which Person is guilty of fraudulent misrepresentation (within the meaning of Section
10(f) of the Securities Act) in connection with such sale shall be entitled to contribution from any Person involved in such
sale of Registrable Securities who was not guilty of fraudulent misrepresentation; and (ii) contribution by any seller of
Registrable Securities shall be limited in amount to the net amount of proceeds received by such seller from the sale of such
Registrable Securities pursuant to such Registration Statement.

 

8.          No
Delay of Registration. No Holder shall have any right to obtain or seek an injunction restraining or otherwise delaying any
registration as the result of any controversy that might arise with respect to the interpretation or implementation of this Agreement.

 

9.          Reports
under Securities Exchange Act. With a view to making available to the Holder the benefits of Rule 144 promulgated under the
Securities Act or any other similar rule or regulation of the Commission that may at any time permit the Holder to sell securities
of the Company to the public without registration, once the Company becomes a Reporting Company, the Company agrees to use its
commercially reasonable efforts to continue to be a Reporting Company for five years and further during such time it is a Reporting
Company the Company agrees to use its best efforts to:

 

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

 

(b)          file
with the Commission in a timely manner all reports and other documents required of the Company under the Securities Act and the
Securities Exchange Act so long as the Company remains subject to such requirements and the filing of such reports and other documents
is required for the applicable provisions of Rule 144; and

 

(c)          furnish to the Holder so long as the Holder owns Registrable Securities, promptly upon request, (i) a written statement by the
Company, if true, that it has complied with the reporting requirements of Rule 144, the Securities Act and the Securities Exchange
Act, (ii) unless available on the Commission's EDGAR website, copy of the most recent annual or quarterly report of the Company
and such other reports and documents so filed by the Company, and (iii) such other information as may be reasonably requested to
permit the Holder to sell such securities pursuant to Rule 144 without registration.

 

10.         Assignment
of Registration Rights. The rights under this Agreement shall be automatically assignable by the Holder to any transferee of
all or any portion of the Holder's Registrable Securities if: (i) the Holder agrees in writing with the transferee or assignee
to assign such rights, and a copy of such agreement is furnished to the Company within a reasonable time after such assignment;
(ii) the Company is, within a reasonable time after such transfer or assignment, furnished with written notice of (a) the name
and address of such transferee or assignee, and (b) the securities with respect to which such registration rights are being transferred
or assigned; (iii) immediately following such transfer or assignment the further disposition of such securities by the transferee
or assignee is or might be restricted under the Securities Act and applicable state securities laws; and (iv) at or before the
time the Company receives the written notice contemplated by clause (ii) of this sentence the transferee or assignee agrees in
writing with the Company to be bound by all of the provisions contained herein.

 

11.         Subsequent
Registration Rights. The Company agrees that after the date hereof and excluding any registration rights agreement with National
Securities or its members and affiliates, it will not grant to any person any registration right or proceed to register any securities
of any person unless it provides in such agreement or registration that any securities being registered under such agreement or
registration will be subject to the cutback provisions of this Agreement as provided in Section 1(c)
and Section 2(b).

 

     

     

    

 

12.         Amendment
of Registration Rights. Provisions of this Agreement may be amended and the observance thereof may be waived (either generally
or in a particular instance and either retroactively or prospectively), only with the written consent of the Company and the holders
of at least a majority of the then outstanding Registrable Securities. Any amendment so effected will be binding upon all Holders,
whether or not such Holder consents thereto.

 

13.         Definitions.

 

(a)          “Commission”
means the Securities and Exchange Commission.

 

(b)          “Commission
Comments” means written comments pertaining solely to Rule 415 or other comments to the extent they relate to Rule 415
which are received by the Company from the Commission, and a copy of which shall have been provided by the Company to the Holder,
to a filed Registration Statement which limit the amount of shares which may be included therein to a number of shares which is
less than such amount sought to be included thereon as filed with the Commission.

 

(c)          “Commission
Guidance” means (i) any guidance, comments, requirements or requests of the Commission staff that is publicly available
in oral or written form and any comments or guidance provided by the Commission staff directly to the Company in written form,
(ii) the Securities Act and the rules and regulations promulgated thereunder or (iii) the Securities Exchange Act and the rules
and regulations promulgated thereunder.

 

(d)          “Common
Stock” means the common stock, $0.001 par value per share, of the Company.

 

(e)          “Effective
Date” means, as to a Registration Statement, the date on which such Registration Statement is first declared effective
by the Commission.

 

(f)          “Person”
means an individual, a partnership, a limited liability company, a corporation, an association, a joint stock company, a trust,
a joint venture, an unincorporated organization and a governmental entity or any department, agency or political subdivision thereof.

 

(g)          “Prospectus”
means the prospectus included in the Registration Statement (including, without limitation, a prospectus that includes any information
previously omitted from a prospectus filed as part of an effective Registration Statement in reliance upon Rule 430A promulgated
under the Securities Act), as amended or supplemented by any prospectus supplement, with respect to the terms of the offering
of any portion of the Registrable Securities covered by the Registration Statement, and all other amendments and supplements to
the Prospectus, including post-effective amendments, and all material incorporated by reference or deemed to be incorporated by
reference in such Prospectus

 

(h)          “Registrable
Securities” means (i) the Conversion Shares issued or issuable to the Holder or its assignees or successor in interest
pursuant to conversion of the Notes and (ii) any other shares of Common Stock or any other securities issued or issuable with respect
to the securities referred to in clause (i) by way of a stock dividend or stock split or in connection with an exchange or combination
of shares, recapitalization, merger, consolidation or other reorganization.

 

(i)          “Registration
Statement” means any registration statement (including, without limitation, the Initial Registration Statement or the
Follow-up Registration Statement) required to be filed hereunder (which, at the Company's option, may be an existing registration
statement of the Company previously filed with the Commission, but not declared effective), including (in each case) the Prospectus,
amendments and supplements to the Registration Statement or Prospectus, including pre- and post-effective amendments, all exhibits
thereto, and all material incorporated by reference or deemed to be incorporated by reference in the Registration Statement.

 

     

     

    

 

(j)          “Reporting
Company” means a company that is obligated to file periodic reports under Sections 13 or 15(d) of the Securities Exchange
Act.

  

(k)          “Rule
144” means Rule 144 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from time
to time, or any similar rule or regulation hereafter adopted by the Commission that may at any time permit the Holder to sell securities
of the Company to the public without registration,

 

(l)          “Rule
415” means Rule 415 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from time
to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same effect as such Rule.

 

(m)          “Rule
424” means Rule 424 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from time
to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same effect as such Rule.

 

(n)          “Securities
Act” means the Securities Act of 1933, as amended from time to time together with the regulations promulgated thereunder.

 

(o)          “Securities
Exchange Act” means the Securities Exchange Act of 1934, as amended from time to time, together with the regulations
promulgated thereunder.

 

(p)          “Underwriter
Cutbacks” means any reduction in the number of shares suggested by any managing underwriter to be included in a registration
under a Registration Statement based upon the guidance in this Section 13(p). In connection with any offering involving an underwriting
of shares of the Company’s capital stock, the Company shall not be required under Section 1 to include any of the Holders' securities
in such underwriting unless they accept the terms of the underwriting as agreed upon between the Company and the underwriters,
and then only in such quantity as the underwriters determine in their sole discretion will not jeopardize the success of the offering
by the Company. If the total amount of securities, including Registrable Securities, requested by stockholders to be included in
such offering exceeds the amount of securities to be sold other than by the Company that the underwriters determine in their sole
discretion is compatible with the success of the offering, then the Company shall be required to include in the offering only that
number of such securities, including Registrable Securities, which the underwriters determine in their sole discretion will not
jeopardize the success of the offering (the securities so included to be apportioned pro rata among the selling shareholders according
to the total amount of securities entitled to be included therein owned by each selling shareholder or in such other proportions
as shall mutually be agreed to by such selling shareholders); provided, that any such cutback will be effected in accordance with
the priorities established by Section 1(c); provided further that in no event shall the amount of securities of the selling Holders
included in an offering pursuant to Section 1 be reduced below 30% of the total amount of securities included in such offering.

 

14.         Market
Stand-Off. Each Holder agrees that prior to the Company’s IPO (as that term is defined in the Securities Purchase Agreement)
it will not transfer securities of the Company unless each transferee agrees in writing to be bound by all of the provisions of
Section 4(v) of the Securities Purchase Agreement.

 

     

     

    

 

Each Holder agrees that a legend reading
substantially as follows shall be placed on all certificates representing all Registrable Securities of each Holder issued before
the Company's IPO (and the shares or securities of every other person subject to the restriction contained in Section 4(v) of the
Securities Purchase Agreement):

 

THE SECURITIES REPRESENTED BY
THIS CERTIFICATE ARE SUBJECT TO A LOCK-UP PERIOD FOLLOWING THE EFFECTIVE DATE OF THE ISSUER’S IPO REGISTRATION STATEMENT FILED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AS SET FORTH IN AN AGREEMENT BETWEEN THE COMPANY AND THE ORIGINAL HOLDER OF THESE
SECURITIES, A COPY OF WHICH MAY BE OBTAINED AT THE ISSUER’S PRINCIPAL OFFICE, SUCH LOCK-UP PERIOD IS BINDING ON TRANSFEREES OF
THESE SHARES.

 

After the Company’s IPO and expiration
of any lock-up period, upon request of any Holder who is a holder of record of the shares represented by any stock certificate(s)
bearing such legend and the surrender of such certificate(s) in connection with such request, the Company shall cause its transfer
agent to promptly issue replacement certificate(s) not bearing such legend representing the shares represented by such surrendered
stock certificate(s).

 

15.         Miscellaneous.

 

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

 

(b)          Any
notices, consents, waivers or other communications required or permitted to be given under the terms of this Agreement must
be in writing and will be deemed to have been delivered: (i) upon receipt, when delivered personally; (ii) upon receipt, when
sent by facsimile or email (provided confirmation of transmission is mechanically or electronically generated and kept on
file by the sending party); or (iii) one business day after deposit with a nationally recognized overnight delivery service,
in each case properly addressed to the party to receive the same. The addresses and facsimile numbers for such communications
shall be:

 

	 	If to the Company:
	 	 	 
	 	 	Mears Technologies, Inc.
	 	 	189 Wells Avenue
	 	 	Newton, MA 02459
	 	 	Attn: CEO
	 	 	 
	 	With a copy (for informational purposes only) to:
	 	 	 
	 	 	WilmerHale LLP
	 	 	60 State Street
	 	 	Boston, MA 02109
	 	 	Facsimile: (617) 526-5000
	 	 	Attention: Michael D. Bain, Esq.

 

     

     

    

 

	 	and

 

If to any
Holder, at the address for such Holder on the records of the Company, which may include the information on Schedule A hereto.

 

or to such other address and/or facsimile
number and/or to the attention of such other Person as the recipient party has specified by written notice given to each other
party five (5) days prior to the effectiveness of such change. Written confirmation of receipt (A) given by the recipient of such
notice, consent, waiver or other communication, (B) mechanically or electronically generated by the sender’s facsimile machine
or email service containing the time, date, recipient ,facsimile number and an image of the first page of such transmission
or (C) provided by a courier or overnight courier service shall be rebuttable evidence of personal service, receipt by facsimile
or receipt from a nationally recognized overnight delivery service in accordance with clause (i), (ii) or (iii) above, respectively.

 

(c)          Failure
of any party to exercise any right or remedy under this Agreement or otherwise, or delay by a party in exercising such right or
remedy, shall not operate as a waiver thereof.

 

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

 

(e)          This
Agreement and the instruments referenced herein and therein constitute the entire agreement among the parties hereto with respect
to the subject matter hereof and thereof. There are no restrictions, promises, warranties or undertakings, other than those set
forth or referred to herein and therein. This Agreement and the instruments referenced herein and therein supersede all prior agreements
and understandings among the parties hereto with respect to the subject matter hereof and thereof.

 

(f)          Subject
to the requirements of Section 9, this Agreement shall inure to the benefit of and be binding upon the permitted successors and
assigns of each of the parties hereto.

 

(g)          The
headings in this Agreement are for convenience of reference only and shall not limit or otherwise affect the meaning hereof.

 

     

     

    

 

(h)          This
Agreement may be executed in identical counterparts, each of which shall be deemed an original but all of which shall constitute
one and the same agreement. This Agreement, once executed by a party, may be delivered to the other party hereto by facsimile transmission
or other electronic transmission (such as but not limited to an email attachment in PDF format) of a copy of this Agreement bearing
the signature of the party so delivering this Agreement. This Agreement may also be executed by electronic signature of such Person.

 

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

 

(j)          All
consents and other determinations required to be made by the Holder pursuant to this Agreement shall be made, unless otherwise specified
in this Agreement, by the Holder.

 

(k)          The
language used in this Agreement will be deemed to be the language chosen by the parties to express their mutual intent and no rules
of strict construction will be applied against any party.

 

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

 

(m)          The
obligations of each Holder hereunder are several and not joint with the obligations of any other Holder, and no provision of this
Agreement is intended to confer any obligations on a Holder vis-a-vis any other Holder. Nothing contained herein, and no action
taken by any Holder pursuant hereto, shall be deemed to constitute the Holder as a partnership, an association, a joint venture
or any other kind of entity, or create a presumption that the Holder are in any way acting in concert or as a group with respect
to such obligations or the transactions contemplated herein.

 

(n)          Currency.
As used herein, “Dollar”, “US Dollar” and “$” each mean the lawful money of the United States.

 

[Signature pages follow immediately]

 

     

     

    

 

IN WITNESS WHEREOF, the parties have executed
this Registration Rights Agreement as of the date first written above.

 

	COMPANY:	MEARS TECHNOLOGIES, INC.
	 	 
	 	By:	/s/ John D.T. Gerber
	 	Name: John D.T. Gerber
	 	Title:  Chairman

 

	HOLDERS:	 
	 	 
	For Entity Investors:	For Individual Investors:
	 	 
	Print Name: _______________________________	Print Name: ____________________________
	 	 
	Signature: ________________________________	Signature: _______________________________ 
	 	 
	Name of Signatory: _________________________	If Joint Investment, 2nd Investor should complete:
	 	 
	Title: ____________________________________	Print Name: _______________________________
	 	 
	 	Signature: _______________________________

 

     

     

    

 

EXHIBIT A

 

FORM OF NOTICE OF EFFECTIVENESS

OF REGISTRATION STATEMENT

 

[Transfer Agent]

[Address]

Attention:

 

Re: Mears Technologies, Inc,

 

Ladies and Gentlemen:

 

[We are][I am]
counsel to Mears Technologies, Inc., a Delaware corporation (the "Company"), and have represented the Company in
connection with that certain Registration Rights Agreement with __________ (the "Holder") (the "Registration
Rights Agreement") pursuant to which the Company agreed, among other things, to register certain of the Registrable
Securities (as defined in the Registration Rights Agreement) held by the Holder, under the Securities Act of 1933, as amended
(the "1933 Act"). In connection with the Company's obligations under the Registration Rights Agreement, on
______________ ___, 20__, the Company filed a registration statement on Form S-[1] (File No. 333- ____________)
(the “Registration Statement”) with the Securities and Exchange Commission (the "SEC") relating to
the Registrable Securities which names the Holder as a selling stockholder thereunder.

 

In connection with
the foregoing, [we][I] advise you that a member of the SEC's staff has advised [us][me] by telephone that the SEC has entered an
order declaring the Registration Statement effective under the 1933 Act at [ENTER TIME OF EFFECTIVENESS] on [ENTER DATE OF EFFECTIVENESS]
and [we][I] have no knowledge, after telephonic inquiry of a member of the SEC's staff, that any stop order suspending its effectiveness
has been issued or that any proceedings for that purpose are pending before, or threatened by, the SEC and the Registrable Securities
are available for resale under the 1933 Act pursuant to the Registration Statement.

 

If applicable, you
may receive notices from the Company pursuant to the Company's rights or obligations under the Registration Rights Agreement in
connection with stop orders or other restrictions on transfer of the shares included in such Registration Statement, but [we][I]
[are][am] not obligated to update this letter or otherwise inform you of any such stop order or restriction.

 

[Other applicable disclosure to be inserted
here, if appropriate.]

 

	 	Very truly yours,
	 	 

 

     

     

    

 

EXHIBIT B

 

IRREVOCABLE TRANSFER AGENT INSTRUCTIONS

 

_________________, 201[_]

 

	[Addressed to Transfer Agent]	 
	 	 
	 	 

 

 

Attention:       [_________________]

 

Ladies and Gentlemen:

 

Reference is made
to that certain Registration Rights Agreement, dated as of _____________, 2015 (the “Agreement”), by and among
Mears Technologies, Inc., a Delaware corporation (the “Company”), _________________ (the “Holder”)
and certain other security holders of the Company, pursuant to which the Company is obligated to register certain shares held
by the Holder (the “Holder Shares”) of Common Stock of the Company, par value $0.001 per share (the “Common
Stock”).

 

This letter shall serve
as our irrevocable authorization and direction to you (provided that you are the transfer agent of the Company at such time) to
issue shares of Common Stock upon transfer or resale of the Holder Shares, unless we have otherwise informed you of the termination
of effectiveness of the registration statement in which the Holder Shares are included, a stop order or another transfer restriction.
We may also later inform you that after the termination of effectiveness of such registration statement that a registration statement
in which the Holder's Shares are included, or that such stop order has been lifted or that such transfer restriction is not applicable,
in which case this authorization and direction shall be reinstated and be effective.

 

You acknowledge and
agree that so long as you have previously received (a) written confirmation from the Company's legal counsel that either (i) a
registration statement covering resales of the Holder Shares has been declared and remains effective by the Securities and Exchange
Commission (the “SEC”) under the Securities Act of 1933, as amended (the “1933 Act”), or (ii) sales
of the Holder Shares may be made in conformity with Rule 144 under the 1933 Act (“Rule 144”), (b) if applicable,
a copy of such registration statement, and (c) notice from legal counsel to the Company or any Holder that a transfer of Holder
Shares has been effected either pursuant to the registration statement (and a prospectus delivered to the transferee) or pursuant
to Rule 144, then as promptly as practicable, you shall issue the certificates representing the Holder Shares registered in the
names of such transferees, and such certificates shall not bear any legend restricting transfer of the Common Stock evidenced
thereby and should not be subject to any stop-transfer restriction; provided, however, that if such shares of Common Stock and
are not registered for resale under the 1933 Act or able to be sold under Rule 144, then the certificates for such Common Shares
shall bear the following legend:

 

THE SECURITIES REPRESENTED
BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE
SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (1) IN THE ABSENCE OF (A) AN
EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS
AMENDED, OR (B) AN OPINION OF COUNSEL, IN A GENERALLY ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR
(II) UNLESS SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID ACT. NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE
PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE
SECURITIES.

 

     

     

    

 

A form of written confirmation
from the Company’s outside legal counsel that a registration statement covering resales of the Holder Shares has been declared
effective by the SEC under the 1933 Act is attached hereto. We will inform you of any stop orders or other transfer restrictions.

 

Please execute this
letter in the space indicated to acknowledge your agreement to act in accordance with these instructions. Should you have any questions
concerning this matter, please contact me at _________________.

 

	 	Very truly yours,	 
	 	 	 
	 	Mears Technologies, Inc.	 
	 	 	 	 
	 	By;	 	 
	 	 	Name:	 
	 	 	Title:	 

 

THE FOREGOING INSTRUCTIONS ARE

ACKNOWLEDGED AND AGREED TO

 

this__ day of ______,201[_]

 

[TRANSFER AGENT]

 

	By:	 	 
	 	Name: ___________________	 
	 	Title:    ___________________	 
	 	 	 
	Enclosures	 
	 	 	 
	Copy: Holder	 

 

     

     

    

 

SCHEDULE A

 

LIST OF HOLDERS

 

	Name	 	Address
	 	 	 

  

     

     

    

 

SCHEDULE B

 

SELLING STOCKHOLDERS

 

The shares of common
stock being offered by the selling stockholders are those issuable to the selling stockholders upon [conversion of the notes and
exercise of the warrants]. For additional information regarding the issuance of the [notes and the warrants], see “Private
Placement of Notes” above. We are registering the shares of common stock in order to permit the selling stockholders to offer
the shares for resale [from time to time]. Except for the ownership of [the notes issued pursuant to and in connection with the
Securities Purchase Agreement, and the warrants issued pursuant to and the agreements governing our engagement of National Securities
Corporation as a placement agent for the private placement of the notes and the engagement of National Securities Corporation as
an underwriter for a public offering of common stock by the Company] the selling stockholders have not had any material relationship
with us within the past three years.

 

The table below lists
the selling stockholders and other information regarding the beneficial ownership (as determined under Section 13(d) of the Securities
Exchange Act of 1934, as amended, and the rules and regulations thereunder) of the shares of common stock held by each of the selling
stockholders. The second column lists the number of shares of common stock beneficially owned by the selling stockholders, based
on their respective ownership of shares of common stock [, notes and warrants,] as of _______, 20__ [assuming conversion of the
notes and exercise of the warrants held by each such selling stockholder on that date but taking account of any limitations on
conversion and exercise set forth therein].

 

The third column lists
the shares of common stock being offered by this prospectus by the selling stockholders [and does not take. into account any limitations
on (i) conversion of the notes set forth therein or (ii) exercise of the warrants set forth therein].

 

In accordance with
the terms of a registration rights agreement with the holders of the notes and the warrants, this prospectus generally covers the
resale of [(i) the shares of common stock issued upon conversion of the notes and (ii) the maximum number of shares of common stock
issuable upon exercise of the warrants, in each case, determined as if the outstanding notes and warrants were converted or exercised
(as the case may be) in full (without regard to any limitations on conversion or exercise contained therein) as of the trading
day immediately preceding the date this registration statement was initially filed with the SEC]. Because the conversion price
of the notes and the exercise price of the warrants may be adjusted, the number of shares that will actually be issued may be more
or less than the number of shares being offered by this prospectus. The fourth column assumes the sale of all of the shares offered
by the selling stockholders pursuant to this prospectus.

 

See “Plan of Distribution.”

 

     

     

    

 

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

 

[Notes (1)...]

 

     

     

    

 

PLAN OF DISTRIBUTION

 

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

 

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

 

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

 

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

 

     

     

    

 

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

 

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

 

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

 

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

 

The selling stockholders
and any other person participating in such distribution will be subject to applicable provisions of the Securities Act of 1933,
as amended, and the Securities Exchange Act of 1934, as amended, and in each case together with the rules and regulations thereunder,
including, without limitation, to the extent applicable, Regulation M of the Exchange Act, which may limit the timing of purchases
and sales of any of the shares of common stock by the selling stockholders and any other participating person. To the extent applicable,
Regulation M may also restrict the ability of any person engaged in the distribution of the shares of common stock to engage in
market-making activities with respect to the shares of common stock. All of the foregoing may affect the marketability of the shares
of common stock and the ability of any Person to engage in market-making activities with respect to the shares of common stock.

 

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

 

     

     

    

 

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

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