Document:

Exhibit 10.1

 

ASSET PURCHASE AGREEMENT

 

This Asset Purchase Agreement
(this "Agreement"), dated as of 12:01AM Eastern Time on October 6, 2022 (the “Effective Date”),
is entered into between Vibetech International, LLC (“Vibetech” or “Seller”), Norman Serrano (“Serrano”),
and KULR Technology Group, Inc., a Delaware corporation ("Buyer"). Capitalized terms used in this Agreement have
the meanings given to such terms herein.

 

RECITALS

 

WHEREAS,
Seller is engaged in the business of directly or indirectly providing services related to vibration and/or vibration-mitigation technologies
(the "Business"); and

 

WHEREAS,
Seller wishes to sell and assign to Buyer, and Buyer wishes to purchase and assume from Seller, the rights of Seller to the Purchased
Assets (as defined herein), subject to the terms and conditions set forth herein;

 

NOW,
THEREFORE, in consideration of the mutual covenants and agreements hereinafter set forth and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

ARTICLE I

Purchase and Sale

 

Section 1.01            Purchase
and Sale of Assets. Subject to the terms and conditions set forth herein, at the Closing, Seller shall sell, convey, assign, transfer,
and deliver to Buyer, and Buyer shall purchase from Seller, all of Seller's right, title, and interest in, to, and under all of the tangible
and intangible assets, properties, and rights of every kind and nature and wherever located (other than the Excluded Assets), which relate
to, or are used or held for use in connection with, the Business, including but not limited to those listed in Schedule 1, (collectively,
the "Purchased Assets"), and including the following:

 

(a)            all
Intellectual Property (as defined below);

 

(b)            all
Social Media (as defined below);

 

(c)            all
inventory, finished goods, raw materials, work in progress, packaging, supplies, parts, and other inventories ("Inventory");

 

(d)            all
of Seller's rights under warranties, indemnities, and all similar rights against third parties to the extent related to any Purchased
Assets;

 

(e)            all
insurance benefits, including rights and proceeds, arising from or relating to the Business or the Purchased Assets;

 

     

     

    

 

(f)            originals
or, where not available, copies, of all books and records, including books of account, ledgers, and general, financial, and accounting
records, machinery and equipment maintenance files, customer lists, customer purchasing histories, price lists, distribution lists, supplier
lists, production data, quality control records and procedures, customer complaints and inquiry files, research and development files,
records, and data (including all correspondence with any federal, state, local, or foreign government or political subdivision thereof,
or any agency or instrumentality of such government or political subdivision, or any arbitrator, court, or tribunal of competent jurisdiction
(collectively, "Governmental Authority")), sales material and records, strategic plans and marketing, and promotional
surveys, material, and research and files relating to the Intellectual Property Assets and the Intellectual Property Agreements ("Books
and Records"); and

 

(g)            all
goodwill and the going concern value of the Purchased Assets and the Business.

 

Section 1.02            Excluded
Assets. Notwithstanding the foregoing, the Purchased Assets shall not include the assets, properties, and rights specifically set
forth on Schedule 2 (collectively, the "Excluded Assets").

 

Section 1.03            No
Liabilities. Buyer shall not assume any Liabilities or obligations of Seller of any kind, whether known or unknown, contingent, matured
or otherwise, whether currently existing or hereinafter created (the "Seller’s Liabilities"). For purposes of this
Agreement, "Liabilities" means liabilities, obligations, or commitments of any nature whatsoever, whether asserted or
unasserted, known or unknown, absolute or contingent, accrued or unaccrued, matured or otherwise, whether through the ownership of voting
securities, by contract, or otherwise, currently existing or hereinafter created.

 

Section 1.04            Transaction
Consideration.

 

(a)            Buyer
shall issue to Seller shares of common stock of Buyer valued, as of the Effective Date, at $1,500,000 on the Effective Date and having
an initial capital account and equity value of $1,500,000 (the “Equity Consideration”), in an exchange for an undivided
42.857% in the Purchased Assets that is intended to qualify as a tax-free contribution pursuant to the provisions of Section 351
of the Internal Revenue Code of 1986, as amended (the “Code”).
Provided that on the dates referenced hereafter Seller has not terminated his employment with Buyer for any reason other than severe health
problems or other extenuating circumstances that would render Seller unable to perform his employment obligations under standards of commercial
reason, the Equity Consideration shall be issued to Seller as follows: Buyer shall issue the Equity Consideration to Seller in four installments
of three hundred seventy-five thousand dollars ($375,000.00) each on the following dates: (i) one year after the Effective Date,
(ii) two years after the Effective Date, (iii) three years after the Effective Date, and (iv) four years after the Effective
Date. Once issued, ownership of each respective installment of the Equity Consideration shall remain with Seller, along with all the rights
given to the common stock of Buyer thereafter. In addition, if Buyer terminates Seller’s employment, unless such termination is
for cause, all of the unissued Equity Consideration shall immediately be issued by Buyer to Seller. Seller
understands that under section 83 of the Code, the fair market value of any shares included in the Equity Consideration at the first time
the rights of the Seller’s beneficial interest in such Shares are transferable or are not subject to a substantial risk of forfeiture,
whichever occurs earlier, may be reportable at that time. Seller understands that it may elect to be taxed at the time said shares are
acquired hereunder to the extent of the fair market value of the shares as of the Effective Date rather than when such shares cease to
be subject to the abovementioned restrictions by filing an election under section 83(b) of the Code with the I.R.S. within thirty
(30) days after the Effective Date. Seller acknowledges that it is Seller’s sole responsibility to file a timely election under
section 83(b) of the Code. Seller is relying solely on its advisors with respect to the decision as to whether or not to file an
83(b) election.

 

    2

     

    

 

As
used in herein, “for cause” shall be limited to Serrano’s (i) willful engagement in dishonesty, illegal
conduct, or gross misconduct that is materially injurious to the Buyer; (ii) embezzlement, misappropriation, or fraud if such related
is related to Buyer; (iii) conviction of or plea of guilty or nolo contendere to a crime that constitutes a felony (or state law
equivalent) or a crime that constitutes a misdemeanor involving moral turpitude, if such felony or other crime is work-related, materially
impairs Serrano’s ability to perform services for the Buyer, or results in material harm to the Buyer; (iv) material violation
of Buyer’s written policies or codes of conduct, including written policies related to discrimination, harassment, performance of
illegal or unethical activities, and ethical misconduct; (v) willful unauthorized disclosure of Confidential Information in breach
of this Agreement if such disclosure materially detriments Buyer; (vi) intentional damage to Buyer’s assets; (vii) willful
and continued failure to substantially perform Serrano’s duties for Buyer (other than as a result of incapacity due to physical
or mental illness); (vii) intentional engagement in any competitive activity which would constitute a breach of Serrano’s duty
of loyalty; (viii) any material inaccuracy in or material breach of the representations and warranties by the Seller or Serrano of
this Agreement.

 

(b)            Seller
shall sell the portion of the Purchased Assets remaining after the Equity Consideration to Buyer for the aggregate cash consideration
of $2,000,000, subject to adjustment pursuant to Section 1.05 below (as adjusted, the “Cash Consideration”), payable
as follows:

 

(i)            One
Million Dollars ($1,000,000) in cash on the Closing Date;

 

(ii)            Five
Hundred Thousand Dollars ($500,000) in cash six (6) months following the Closing Date; and

 

(iii)            Five
Hundred Thousand Dollars ($500,000) in cash twelve (12) months following the Closing Date.

 

The Equity Consideration and Cash Consideration
are collectively referred to herein as the “Purchase Price”

 

    3

     

    

 

Section 1.05            Repayment
of Cash Consideration. If Seller voluntarily terminates his employment with Buyer less than four (4) years after the Closing
Date for reasons other than severe health problems or other extenuating circumstances that would render Seller unable to perform his employment
obligations under standards of commercial reason, then Seller shall pay back to Buyer the following portions of the Cash Consideration
within sixty (60) days after such termination (the “Purchase Price Clawback”):

 

 

	Prorated Purchase Price Clawback = [Cash Payment] – ([Cash Payment] x ([number of Seller’s post-Closing years of employment with Buyer]/4))

 

A partial year shall be considered
a full year for purposes of the preceding formula.

 

Notwithstanding the foregoing,
Seller shall not be required to repay any part of the Cash Consideration if Buyer terminates Seller’s employment, unless such termination
is for cause as defined herein above.

 

Section 1.06            Buyer
shall pay the Cash Consideration by wire transfer to Seller of immediately available funds in accordance with the wire transfer instructions
set forth on Schedule 3.

 

Section 1.07            Withholding
Tax. Buyer shall be entitled to deduct and withhold from the Cash Consideration all Taxes that Buyer may be required to deduct and
withhold under any provision of law related to such Taxes. All such withheld amounts shall be treated as delivered to Seller hereunder.

 

Section 1.08            Third
Party Consents. To the extent that Seller's rights under any Purchased Asset may not be assigned to Buyer without the consent of another
Person which has not been obtained, this Agreement shall not constitute an agreement to assign the same if an attempted assignment would
constitute a breach thereof or be unlawful, and Seller, at its expense, shall use its reasonable best efforts to obtain any such required
consent(s) as promptly as possible. If any such consent shall not be obtained or if any attempted assignment would be ineffective
or would impair Buyer's rights under the Purchased Asset in question so that Buyer would not in effect acquire the benefit of all such
rights, Seller, to the maximum extent permitted by Law and the Purchased Asset, shall act after the Closing as Buyer's agent in order
to obtain for it the benefits thereunder and shall cooperate, to the maximum extent permitted by Law and the Purchased Asset, with Buyer
in any other reasonable arrangement designed to provide such benefits to Buyer.

 

ARTICLE II

Closing

 

Section 2.01            Closing.
Subject to the terms and conditions of this Agreement, the consummation of the transactions contemplated by this Agreement (the "Closing")
shall take place at the offices of Sichenzia Ross Ference LLP, 1185 Avenue of the Americas, 31st Floor, New York, NY 10036,
or remotely by exchange of documents and signatures (or their electronic counterparts), simultaneously with the execution and on the Effective
Date of this Agreement, or at such other time or place or in such other manner as Seller and Buyer may mutually agree upon in writing.
The date on which the Closing is to occur is herein referred to as the "Closing Date."

 

    4

     

    

 

Section 2.02            Closing
Deliverables.

 

(a)            At
the Closing, Seller shall deliver to Buyer the following:

 

(i)            a
bill of sale (the "Bill of Sale") and duly executed by Seller, transferring the Purchased Assets to Buyer;

 

(ii)          an
assignment and assumption agreement (the "Assignment and Assumption Agreement") and duly executed by Seller, effecting
the assignment to and assumption by Buyer of the Purchased Assets;

 

(iii)         assignments
in form and substance satisfactory to Buyer (the "Intellectual Property Assignments") and duly executed by Seller, transferring
all of Seller's right, title and interest in and to the Intellectual Property Assets to Buyer;

 

(iv)          a
certificate of the Secretary (or equivalent officer) of Seller certifying as to (A) the resolutions of the board of directors and
the shareholders of Seller, which authorize the execution, delivery, and performance of this Agreement, the Bill of Sale, the Assignment
and Assumption Agreement and the other agreements, instruments, and documents required to be delivered in connection with this Agreement
or at the Closing (collectively, the "Transaction Documents") and the consummation of the transactions contemplated hereby
and thereby, and (B) the names and signatures of the officers of Seller authorized to sign this Agreement and the other Transaction
Documents ; and

 

(v)         such
other customary instruments of transfer or assumption, filings, or documents, in form and substance reasonably satisfactory to Buyer,
as may be required to give effect to the transactions contemplated by this Agreement.

 

(b)            At
the Closing, Buyer shall deliver to Seller the following:

 

(i)            the
applicable installments of the Purchase Price (less any amounts which may be withheld for outstanding Liabilities related to any Taxes
payable in connection with the Purchased Assets);

 

(ii)            the
Assignment and Assumption Agreement duly executed by Buyer; and

 

(iii)           a
certificate of the Secretary (or equivalent officer) of Buyer certifying as to (A) the resolutions of the board of directors of Buyer,
which authorize the execution, delivery, and performance of this Agreement and the Transaction Documents and the consummation of the transactions
contemplated hereby and thereby, and (B) the names and signatures of the officers of Buyer authorized to sign this Agreement and
the other Transaction Documents.

 

    5

     

    

 

(c)            At
the Closing, Buyer shall offer to Norman Serrano, and Mr. Serrano shall accept, employment with Buyer on substantially the following
terms, as well as other terms customary in the industry and/or for the relevant geographies:

 

(i)            Compensation
of eighteen thousand dollars ($18,000) on a monthly basis;

 

(ii)            Mr. Serrano
may work primarily remotely, e.g., out of his home in Pleasant Grove, Utah, and/or other facilities in the area. However, Seller shall
travel for work at Buyer’s request and Buyer shall pay all reasonable travel expenses; and

 

(iii)            Mr. Serrano
shall receive health insurance, life insurance, and other benefits generally offered and provided to Buyer’s similarly situated
employees.

 

(d)            No
later than the Closing Date, Seller shall provide written notice to PHI Aviation, LLC (“PHI”) of termination of any
contract, agreement or otherwise with PHI related to the Purchased Assets, which termination shall be effective no later than thirty (30)
days after such notice date but shall not require Seller to directly compete with Buyer.

 

ARTICLE III

Representations and warranties of seller

 

Seller represents and warrants
to Buyer that the statements contained in this ARTICLE III are true and correct as of the date hereof.

 

Section 3.01            Authority
of Seller. Seller has full power and authority to enter into this Agreement and the other Transaction Documents to which Seller is
a party, to carry out its obligations hereunder and thereunder, and to consummate the transactions contemplated hereby and thereby. The
execution and delivery by Seller of this Agreement and any other Transaction Document to which Seller is a party, the performance by Seller
of its obligations hereunder and thereunder, and the consummation by Seller of the transactions contemplated hereby and thereby have been
duly authorized on the part of Seller. This Agreement and the Transaction Documents constitute legal, valid, and binding obligations of
Seller enforceable against Seller in accordance with their respective terms.

 

Section 3.02            No
Conflicts or Consents. The execution, delivery, and performance by Seller of this Agreement and the other Transaction Documents to
which it is a party, and the consummation of the transactions contemplated hereby and thereby, do not and will not: (a) violate or
conflict with any provision of any statute, law, ordinance, regulation, rule, code, constitution, treaty, common law, other requirement,
or rule of law of any Governmental Authority (collectively, "Law") or any order, writ, judgment, injunction, decree,
stipulation, determination, penalty, or award entered by or with any Governmental Authority ("Governmental Order") applicable
to Seller, the Business, or the Purchased Assets; (b) require the consent, notice, declaration, or filing with or other action by
any individual, corporation, partnership, joint venture, limited liability company, Governmental Authority, unincorporated organization,
trust, association, or other entity ("Person") or require any permit, license, or Governmental Order; (c) violate
or conflict with, result in the acceleration of, or create in any party the right to accelerate, terminate, modify, or cancel any contract,
agreement or otherwise to which Seller is a party or by which Seller or the Business is bound or to which any of the Purchased Assets
are subject; or (d) result in the creation or imposition of any charge, claim, pledge, equitable interest, lien, security interest,
restriction of any kind, or other encumbrance ("Encumbrance") on the Purchased Assets.

 

    6

     

    

 

Section 3.03            Undisclosed
Liabilities. Seller has no Liabilities with respect to the Business, which are not, individually or in the aggregate, material in
amount.

 

Section 3.04            Absence
of Certain Changes, Events, and Conditions. Since the inception of the Business, and other than in the ordinary course of business
consistent with past practice, there has not been any change, event, condition, or development that is, or could reasonably be expected
to be, individually or in the aggregate, materially adverse to: (a) the business, results of operations, condition (financial or
otherwise), or assets of the Business; or (b) the value of the Purchased Assets.

 

Section 3.05            Title
to Purchased Assets. Seller has good and valid title to all of the Purchased Assets, free and clear of Encumbrances.

 

Section 3.06            Intellectual
Property.

 

(a)            Schedule
1 contains a correct, current and complete list of: (i) all Intellectual Property Registrations, specifying as to each, as applicable:
the title, mark, or design; the jurisdiction by or in which it has been issued, registered or filed; the patent, registration or application
serial number; the issue, registration or filing date; and the current status; and (ii) all unregistered Trademarks included in the
Intellectual Property Assets; and (iii) all proprietary Software included in the Intellectual Property Assets; and (iv) all
other Intellectual Property Assets that are used or held for use in the conduct of the Business as currently conducted or proposed to
be conducted.

 

(b)            Schedule
1 contains a correct, current and complete list of all Intellectual Property Agreements, specifying for each the date, title, and
parties thereto, and separately identifying the Intellectual Property Agreements: (i) under which Seller is a licensor or otherwise
grants to any Person any right or interest relating to any Intellectual Property Asset; (ii) under which Seller is a licensee or
otherwise granted any right or interest relating to the Intellectual Property of any Person; and (iii) which otherwise relate to
the Seller's ownership or use of any Intellectual Property in the conduct of the Business as currently conducted or proposed to be conducted,
in each case identifying the Intellectual Property covered by such Intellectual Property Agreement. Seller has provided Buyer with true
and complete copies (or in the case of any oral agreements, a complete and correct written description) of all such Intellectual Property
Agreements, including all modifications, amendments and supplements thereto and waivers thereunder. Each Intellectual Property Agreement
is valid and binding on Seller in accordance with its terms and is in full force and effect. Neither Seller nor any other party thereto
is, or is alleged to be, in breach of or default under, or has provided or received any notice of breach of, default under, or intention
to terminate (including by non-renewal), any Intellectual Property Agreement.

 

    7

     

    

 

(c)            Seller
is the sole and exclusive legal and beneficial, and with respect to the Intellectual Property Registrations, record, owner of all right,
title and interest in and to the Intellectual Property Assets, and has the valid and enforceable right to use all other Intellectual Property
used or held for use in or necessary for the conduct of the Business as currently conducted or as proposed to be conducted, in each case,
free and clear of Encumbrances other than Permitted Encumbrances. The Intellectual Property Assets and Licensed Intellectual Property
are all of the Intellectual Property necessary to operate the Business as presently conducted or proposed to be conducted. Seller has
entered into binding, valid and enforceable written contracts with each current and former employee and independent contractor who is
or was involved in or has contributed to the invention, creation, or development of any Intellectual Property during the course of employment
or engagement with Seller whereby such employee or independent contractor (i) acknowledges Seller's exclusive ownership of all Intellectual
Property Assets invented, created or developed by such employee or independent contractor within the scope of his or her employment or
engagement with Seller; (ii) grants to Seller a present, irrevocable assignment of any ownership interest such employee or independent
contractor may have in or to such Intellectual Property, to the extent such Intellectual Property does not constitute a "work made
for hire" under Applicable Law; and (iii) irrevocably waives any right or interest, including any moral rights, regarding such
Intellectual Property, to the extent permitted by applicable Law. Seller has provided Buyer with true and complete copies of all such
contracts. All assignments and other instruments necessary to establish, record, and perfect Seller's ownership interest in the Intellectual
Property Registrations have been validly executed, delivered, and filed with the relevant Governmental Authorities and authorized registrars.

 

 

(d)            Neither
the execution, delivery, or performance of this Agreement, nor the consummation of the transactions contemplated hereunder, will result
in the loss or impairment of or payment of any additional amounts with respect to, or require the consent of any other Person in respect
of, the Buyer's right to own or use any Intellectual Property Assets or Licensed Intellectual Property in the conduct of the Business
as currently conducted and as proposed to be conducted. Immediately following the Closing, all Intellectual Property Assets will be owned
or available for use by Buyer on identical the same terms as they were owned or available for use by Seller immediately prior to the Closing.

 

(e)            All
of the Intellectual Property Assets (and Licensed Intellectual Property) is valid and enforceable, and all Intellectual Property Registrations
are subsisting and in full force and effect. Seller has taken all reasonable and necessary steps to maintain and enforce the Intellectual
Property Assets and Licensed Intellectual Property and to preserve the confidentiality of all Trade Secrets included in the Intellectual
Property Assets, including by requiring all Persons having access thereto to execute binding, written non-disclosure agreements. All required
filings and fees related to the Intellectual Property Registrations have been timely submitted with and paid to the relevant Governmental
Authorities and authorized registrars. Seller has provided Buyer with true and complete copies of all file histories, documents, certificates,
office actions, correspondence, assignments, and other instruments relating to the Intellectual Property Registrations.

 

    8

     

    

 

(f)            The
conduct of the Business as currently and formerly conducted and as proposed to be conducted, including the use of the Intellectual Property
Assets and Licensed Intellectual Property in connection therewith, and the products, processes, and services of the Business have not
infringed, misappropriated, or otherwise violated and will not infringe, misappropriate, or otherwise violate the Intellectual Property
or other rights of any Person. No Person has infringed, misappropriated, or otherwise violated any Intellectual Property Assets or Licensed
Intellectual Property.

 

 

(g)            There
are no Actions (including any opposition, cancellation, revocation, review, or other proceeding), whether settled, pending or threatened
(including in the form of offers to obtain a license): (i) alleging any infringement, misappropriation, or other violation of the
Intellectual Property of any Person by Seller in the conduct of the Business; (ii) challenging the validity, enforceability, registrability,
patentability, or ownership of any Intellectual Property Assets or Licensed Intellectual Property; or (iii) by Seller or any other
Person alleging any infringement, misappropriation, or other violation by any Person of any Intellectual Property Assets. Seller is not
aware of any facts or circumstances that could reasonably be expected to give rise to any such Action. Seller is not subject to any outstanding
or prospective Governmental Order (including any motion or petition therefor) that does or could reasonably be expected to restrict or
impair the use of any Intellectual Property Assets or Licensed Intellectual Property.

 

(h)            Schedule
1 contains a correct, current, and complete list of all social media accounts (the “Social Media”) used by Seller
in the conduct of the Business. Seller has complied with all terms of use, terms of service, and other contracts and all associated policies
and guidelines relating to its use of any social media platforms, sites, or services in the conduct of the Business (collectively, "Platform
Agreements"). There are no Actions settled, pending, or threatened alleging (A) any breach or other violation of any Platform
Agreement by Seller; or (B) defamation, any violation of publicity rights of any Person, or any other violation by Seller in connection
with its use of social media in the conduct of the Business.

 

    9

     

    

 

(i)            For
purposes of this Section 3.06, referenced terms have the following meanings:

 

(i)            "Intellectual
Property" means any and all rights in, arising out of, or associated with any of the following in any jurisdiction throughout
the world: (a) issued patents and patent applications (whether provisional or non-provisional), including abandoned patent applications,
divisionals, continuations, continuations-in-part, substitutions, reissues, reexaminations, extensions, or restorations of any of the
foregoing, and other Governmental Authority-issued indicia of invention ownership (including certificates of invention, petty patents,
and patent utility models) ("Patents"); (b) trademarks, service marks, brands, certification marks, logos, trade
dress, trade names, and other similar indicia of source or origin, together with the goodwill connected with the use of and symbolized
by, and all registrations, applications for registration, and renewals of, any of the foregoing ("Trademarks"); (c) copyrights
and works of authorship, whether or not copyrightable, and all registrations, applications for registration, and renewals of any of the
foregoing ("Copyrights"); (d) internet domain names and social media account or user names (including "handles"),
whether or not Trademarks, all associated web addresses, URLs, websites and web pages, social media sites and pages, and all content and
data thereon or relating thereto, whether or not Copyrights; (e) mask works, and all registrations, applications for registration,
and renewals thereof; (f) industrial designs, and all Patents, registrations, applications for registration, and renewals thereof;
(g) trade secrets, know-how, inventions (whether or not patentable), discoveries, improvements, technology, business and technical
information, databases, data compilations and collections, tools, methods, processes, techniques, and other confidential and proprietary
information and all rights therein ("Trade Secrets"); (h) computer programs, operating systems, applications, firmware
and other code, including all source code, object code, application programming interfaces, data files, databases, protocols, specifications,
and other documentation thereof ("Software"); (i) rights of publicity; and (j) all other intellectual or industrial
property and proprietary rights.

 

 

(ii)            "Intellectual
Property Registrations" means all Intellectual Property Assets that are subject to any issuance, registration, or application
by or with any Governmental Authority or authorized private registrar in any jurisdiction, including issued Patents, registered Trademarks,
domain names and Copyrights, and pending applications for any of the foregoing.

 

(iii)            "Intellectual
Property Agreements" means all licenses, sublicenses, consent to use agreements, settlements, coexistence agreements, covenants
not to sue, waivers, releases, permissions and other contracts, whether written or oral, relating to any Intellectual Property that is
used or held for use in the conduct of the Business as currently conducted or proposed to be conducted to which Seller is a party, beneficiary
or otherwise bound.

 

(iv)            "Intellectual
Property Assets" means all Intellectual Property that is owned by Seller and used or held for use in the conduct of the Business
as currently conducted or proposed to be conducted, together with all (i) royalties, fees, income, payments, and other proceeds now
or hereafter due or payable to Seller with respect to such Intellectual Property; and (ii) claims and causes of action with respect
to such Intellectual Property, whether accruing before, on, or after the date hereof/accruing on or after the date hereof, including all
rights to and claims for damages, restitution, and injunctive and other legal or equitable relief for past, present, or future infringement,
misappropriation, or other violation thereof.

 

    10

     

    

 

(v)            "Intellectual
Property Registrations" means all Intellectual Property Assets that are subject to any issuance, registration, or application
by or with any Governmental Authority or authorized private registrar in any jurisdiction, including issued Patents, registered Trademarks,
domain names and Copyrights, and pending applications for any of the foregoing.

 

(vi)            "Licensed
Intellectual Property" means all Intellectual Property in which Seller holds any rights or interests granted by other Persons,
including any of Seller's Affiliates, that is used or held for use in the conduct of the Business as currently conducted or proposed to
be conducted.

 

 

Section 3.07            Condition
and Sufficiency of Assets. The Purchased Assets are sufficient for the continued conduct of the Business after the Closing in substantially
the same manner as conducted prior to the Closing and constitute all of the rights, property, and assets necessary to conduct the Business
as currently conducted. None of the Excluded Assets are material to the Business.

 

Section 3.08            Inventory.
All Inventory consists of a quality and quantity usable and salable in the ordinary course of business consistent with past practice,
except for obsolete, damaged, defective, or slow-moving items that have been written off or written down to fair market value or for which
adequate reserves have been established.

 

Section 3.09            Legal
Proceedings; Governmental Orders.

 

(a)            There
are no claims, actions, causes of action, demands, lawsuits, arbitrations, inquiries, audits, notices of violation, proceedings, litigation,
citations, summons, subpoenas, or investigations of any nature, whether at law or in equity (collectively, "Actions")
pending or, to Seller's knowledge, threatened against or by Seller: (i) relating to or affecting the Business or the Purchased Assets;
or (ii) that challenge or seek to prevent, enjoin, or otherwise delay the transactions contemplated by this Agreement. No event has
occurred or circumstances exist that may give rise to, or serve as a basis for, any such Action.

 

(b)            There
are no outstanding/Seller is in compliance with all Governmental Orders against, relating to, or affecting the Business or the Purchased
Assets.

 

Section 3.10            Compliance
with Laws. Seller is in compliance with all Laws applicable to the conduct of the Business as currently conducted or the ownership
and use of the Purchased Assets.

 

Section 3.11            Taxes.
All Taxes due and owing by Seller have been, or will be, timely paid. No extensions or waivers of statutes of limitations have been given
or requested with respect to any Taxes of Seller. All tax returns with respect to the Business required to be filed by Seller for any
tax periods prior to Closing have been, or will be, timely filed. Such tax returns are, or will be, true, complete, and correct in all
respects. The term "Taxes" means all federal, state, local, foreign, and other income, gross receipts, sales, use, production,
ad valorem, transfer, documentary, franchise, registration, profits, license, withholding, payroll, employment, unemployment, excise,
severance, stamp, occupation, premium, property (real or personal), customs, duties, or other taxes, fees, assessments, or charges of
any kind whatsoever, together with any interest, additions, or penalties with respect thereto.

 

    11

     

    

 

Section 3.12            Full
Disclosure. No representation or warranty by Seller in this Agreement and no statement contained in the Schedules to this Agreement
or any certificate or other document furnished or to be furnished to Buyer, including financial information, pursuant to or in connection
with this Agreement contains any untrue statement of a material fact, or omits to state a material fact necessary to make the statements
contained therein, in light of the circumstances in which they are made, not misleading.

 

 

ARTICLE IV

Representations and warranties of buyer

 

Buyer represents and warrants
to Seller that the statements contained in this ARTICLE IV are true and correct as of the date hereof.

 

Section 4.01            Organization
and Authority of Buyer. Buyer is a corporation duly organized, validly existing, and in good standing under the Laws of the State
of Delaware. Buyer has full corporate power and authority to enter into this Agreement and the other Transaction Documents to which Buyer
is a party, to carry out its obligations hereunder and thereunder, and to consummate the transactions contemplated hereby and thereby.
The execution and delivery by Buyer of this Agreement and any other Transaction Document to which Buyer is a party, the performance by
Buyer of its obligations hereunder and thereunder, and the consummation by Buyer of the transactions contemplated hereby and thereby have
been duly authorized by all requisite corporate action on the part of Buyer. This Agreement and the Transaction Documents constitute legal,
valid, and binding obligations of Buyer enforceable against Buyer in accordance with their respective terms.

 

Section 4.02            No
Conflicts; Consents. The execution, delivery, and performance by Buyer of this Agreement and the other Transaction Documents to which
it is a party, and the consummation of the transactions contemplated hereby and thereby, do not and will not: (a) violate or conflict
with any provision of the certificate of incorporation, by-laws, or other organizational documents of Buyer; (b) violate or conflict
with any provision of any Law or Governmental Order applicable to Buyer; or (c) require the consent, notice, declaration, or filing
with or other action by any Person or require any permit, license, or Governmental Order.

 

Section 4.03            Legal
Proceedings. There are no Actions pending or, to Buyer's knowledge, threatened against or by Buyer that challenge or seek to prevent,
enjoin, or otherwise delay the transactions contemplated by this Agreement. No event has occurred or circumstances exist that may give
rise to, or serve as a basis for, any such Action.

 

    12

     

    

 

ARTICLE V

Covenants

 

Section 5.01            Confidentiality.
From and after the Closing, Seller shall, and shall cause its Affiliates to, hold, and shall use its reasonable best efforts to cause
its or their respective directors, officers, employees, consultants, counsel, accountants, and other agents ("Representatives")
to hold, in confidence any and all information, whether written or oral, concerning the Business, except to the extent that Seller can
show that such information: (a) is generally available to and known by the public through no fault of Seller, any of its Affiliates,
or their respective Representatives; or (b) is lawfully acquired by Seller, any of its Affiliates, or their respective Representatives
from and after the Closing from sources which are not prohibited from disclosing such information by a legal, contractual, or fiduciary
obligation. If Seller or any of its Affiliates or their respective Representatives are compelled to disclose any information by Governmental
Order or Law, Seller shall promptly notify Buyer in writing and shall disclose only that portion of such information which is legally
required to be disclosed, provided that Seller shall use reasonable best efforts to obtain as promptly as possible an appropriate
protective order or other reasonable assurance that confidential treatment will be accorded such information. For purposes of this Agreement:
(i) "Affiliate" of a Person means any other Person that directly or indirectly, through one or more intermediaries,
controls, is controlled by, or is under common control with, such Person; and (ii) the term "control" (including
the terms "controlled by" and "under common control with") means the possession, directly or indirectly, of the power
to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting securities, by contract,
or otherwise.

 

 

Section 5.02            Non-Competition;
Non-Solicitation.

 

(a)            Seller
acknowledges the competitive nature of the Business and accordingly agrees, in connection with the sale of the Purchased Assets, including
the goodwill of the Business, which Buyer considers to be a valuable asset, and in exchange for good and valuable consideration, that
for a period of five (5) years commencing on the Closing Date (the "Restricted Period"), Seller shall not, and shall
not permit any of its Affiliates to, directly or indirectly, (i) engage in or assist others in engaging in any activity that is the
same as, or similar to, the Business (the "Restricted Business") in the United States and other territories known to
Seller to which Buyer expects to market its services with use of the Purchase Assets (the "Territory"); (ii) have
an interest in any Person that engages directly or indirectly in the Restricted Business in the Territory in any capacity, including as
a partner, shareholder, director, member, manager, employee, principal, agent, trustee, or consultant; or (iii) cause, induce, or
encourage any material actual or prospective client, customer, supplier, or licensor of the Business (including any existing or former
client or customer of Seller and any Person that becomes a client or customer of the Business after the Closing), or any other Person
who has a material business relationship with the Business, to terminate or modify any such actual or prospective relationship. Notwithstanding
the foregoing, Seller may own, directly or indirectly, solely as an investment, securities of any Person traded on any national securities
exchange if Seller is not a controlling Person of, or a member of a group which controls, such Person and does not, directly or indirectly,
own five percent (5%) or more of any class of securities of such Person.

 

    13

     

    

 

(b)            During
the Restricted Period, Seller shall not, and shall not permit any of its Affiliates to, directly or indirectly, hire or solicit any person
who is or was employed in the Business during the Restricted Period, or encourage any such employee to leave such employment or hire any
such employee who has left such employment, except pursuant to a general solicitation which is not directed specifically to any such employees;
provided that nothing in this Section 5.02(b) shall prevent Seller or any of its Affiliates from hiring (i) any
employee whose employment has been terminated by Buyer; or (ii) after one hundred eighty (180) days from the date of termination
of employment, any employee whose employment has been terminated by the employee.

 

(c)            Seller
acknowledges that a breach or threatened breach of this Section 5.02 would give rise to irreparable harm to Buyer, for which monetary
damages would not be an adequate remedy, and hereby agrees that in the event of a breach or a threatened breach by Seller of any such
obligations, Buyer shall, in addition to any and all other rights and remedies that may be available to it in respect of such breach,
be entitled to equitable relief, including a temporary restraining order, an injunction, specific performance, and any other relief that
may be available from a court of competent jurisdiction (without any requirement to post bond).

 

(d)            Seller
acknowledges that the restrictions contained in this Section 5.02 are reasonable and necessary to protect the legitimate interests
of Buyer and constitute a material inducement to Buyer to enter into this Agreement and consummate the transactions contemplated by this
Agreement. In the event that any covenant contained in this Section 5.02 should ever be adjudicated to exceed the time, geographic,
product or service, or other limitations permitted by applicable Law in any jurisdiction or any Governmental Order, then any court is
expressly empowered to reform such covenant in such jurisdiction to the maximum time, geographic, product or service, or other limitations
permitted by applicable Law or such Governmental Order. The covenants contained in this Section 5.02 and each provision hereof are
severable and distinct covenants and provisions. The invalidity or unenforceability of any such covenant or provision as written shall
not invalidate or render unenforceable the remaining covenants or provisions hereof, and any such invalidity or unenforceability in any
jurisdiction shall not invalidate or render unenforceable such covenant or provision in any other jurisdiction.

 

Section 5.03            Public
Announcements. Unless otherwise required by applicable Law, no party to this Agreement shall make any public announcements in respect
of this Agreement or the transactions contemplated hereby without the prior written consent of the other party (which consent shall not
be unreasonably withheld or delayed), and the parties shall cooperate as to the timing and contents of any such announcement.

 

Section 5.04            Bulk
Sales Laws. The parties hereby waive compliance with the provisions of any bulk sales, bulk transfer, or similar Laws of any jurisdiction
that may otherwise be applicable with respect to the sale of any or all of the Purchased Assets to Buyer. Any Liabilities arising out
of the failure of Seller to comply with the requirements and provisions of any bulk sales, bulk transfer, or similar Laws of any jurisdiction
shall be the responsibility of the

Seller and shall be subject to Seller’s indemnification responsibilities set forth in Section 6.02.

 

    14

     

    

 

Section 5.05            Transfer
Taxes. All sales, use, registration, and other such Taxes and fees (including any penalties and interest) incurred in connection with
this Agreement and the other Transaction Documents, if any, shall be borne and paid by Seller when due. Seller shall, at its own expense,
timely file any tax return or other document with respect to such Taxes or fees (and Buyer shall cooperate with respect thereto as necessary).

 

Section 5.06            Further
Assurances. Following the Closing, each of the parties hereto shall, and shall cause their respective Affiliates to, execute and deliver
such additional documents, instruments, conveyances, and assurances and take such further actions as may be reasonably required to carry
out the provisions hereof and give effect to the transactions contemplated by this Agreement and the other Transaction Documents.

 

ARTICLE VI

Indemnification

 

Section 6.01            Survival.
All representations, warranties, covenants, and agreements contained herein and all related rights to indemnification shall survive the
Closing.

 

Section 6.02            Indemnification
by Seller and Serrano. Subject to the other terms and conditions of this ARTICLE VI, Seller and Serrano, jointly and severally,
shall indemnify and defend each of Buyer and its Affiliates and their respective Representatives (collectively, the "Buyer Indemnitees")
against, and shall hold each of them harmless from and against, any and all losses, damages, liabilities, deficiencies, Actions, judgments,
interest, awards, penalties, fines, costs, or expenses of whatever kind, including reasonable attorneys' fees (collectively, "Losses"),
incurred or sustained by, or imposed upon, the Buyer Indemnitees based upon, arising out of, or with respect to:

 

(a)            any
inaccuracy in or breach of any of the representations or warranties of Seller contained in this Agreement, any other Transaction Document,
or any schedule, certificate, or exhibit related thereto, as of the date such representation or warranty was made or as if such representation
or warranty was made on and as of the Closing Date (except for representations and warranties that expressly relate to a specified date,
the inaccuracy in or breach of which will be determined with reference to such specified date);

 

(b)            any
breach or non-fulfillment of any covenant, agreement, or obligation to be performed by Seller pursuant to this Agreement, any other Transaction
Document, or any schedule, certificate, or exhibit related thereto;

 

(c)            any
Excluded Asset or any Seller’s Liabilities; or

 

(d)            any
Third Party Claim based upon, resulting from, or arising out of the business, operations, properties, assets, or obligations of Seller
or any of its Affiliates (other than the Purchased Assets) conducted, existing, or arising on or prior to the Closing Date. For purposes
of this Agreement, "Third Party Claim" means notice of the assertion or commencement of any Action made or brought by
any Person who is not a party to this Agreement or an Affiliate of a party to this Agreement or a Representative of the foregoing.

 

    15

     

    

 

Section 6.03            Indemnification
by Buyer. Subject to the other terms and conditions of this ARTICLE VI, Buyer shall indemnify and defend each of Seller and its
Affiliates and their respective Representatives (collectively, the "Seller Indemnitees") against, and shall hold each
of them harmless from and against any and all Losses incurred or sustained by, or imposed upon, the Seller Indemnitees based upon, arising
out of, or with respect to:

 

(a)            any
inaccuracy in or breach of any of the representations or warranties of Buyer contained in this Agreement, any other Transaction Document,
or any schedule, certificate, or exhibit related thereto, as of the date such representation or warranty was made or as if such representation
or warranty was made on and as of the Closing Date (except for representations and warranties that expressly relate to a specified date,
the inaccuracy in or breach of which will be determined with reference to such specified date); or

 

(b)            any
breach or non-fulfillment of any covenant, agreement, or obligation to be performed by Buyer pursuant to this Agreement.

 

Section 6.04            Indemnification
Procedures. Whenever any claim shall arise for indemnification hereunder, the party entitled to indemnification (the "Indemnified
Party") shall promptly provide written notice of such claim to the other party (the "Indemnifying Party"). In
connection with any claim giving rise to indemnity hereunder resulting from or arising out of any Action by a Person who is not a party
to this Agreement, the Indemnifying Party, at its sole cost and expense and upon written notice to the Indemnified Party, may assume the
defense of any such Action with counsel reasonably satisfactory to the Indemnified Party. The Indemnified Party shall be entitled to participate
in the defense of any such Action, with its counsel and at its own cost and expense. If the Indemnifying Party does not assume the defense
of any such Action, the Indemnified Party may, but shall not be obligated to, defend against such Action in such manner as it may deem
appropriate, including settling such Action, after giving notice of it to the Indemnifying Party, on such terms as the Indemnified Party
may deem appropriate and no action taken by the Indemnified Party in accordance with such defense and settlement shall relieve the Indemnifying
Party of its indemnification obligations herein provided with respect to any damages resulting therefrom. The Indemnifying Party shall
not settle any Action without the Indemnified Party's prior written consent (which consent shall not be unreasonably withheld or delayed).

 

Section 6.05            Liability
Basket Deductible. Indemnifying Party shall not be obligated to pay for any indemnified Losses until the amount of such Losses exceeds,
in the aggregate, $15,000 (fifteen thousand dollars) (the “Deductible”), in which event Indemnifying Party shall only
pay or be liable for Losses in excess of the Deductible.

 

    16

     

    

 

Section 6.06            Liability
Cap. Indemnifying Party is not obligated to reimburse Indemnified Party for any Losses that exceed, in the aggregate, One-Million-Five-Hundred-Thousand
Dollars ($1,500,000) of the Cash Consideration actually paid to Seller under this Agreement.

 

Section 6.07            Right
of Set-Off. Any payment for indemnification owed by an Indemnifying Party pursuant to this ARTICLE VI shall be effected
by a mutually agreed upon right of set-off (“Right of Set-Off’) against payments otherwise payable by the Indemnified
Party, including any or all of the Purchase Price that such Indemnifying Party has received to such date. To the extent that an Indemnified
Party plans to exercise its Right of Set-Off, the Indemnified Party shall first provide at least five (5) Business Days’ prior
written notice to the Indemnifying Party detailing the Indemnified Party’s intent to exercise its Right of Set-Off.

 

Section 6.08            Cumulative
Remedies. The rights and remedies provided in this ARTICLE VI are cumulative and are in addition to and not in substitution for
any other rights and remedies available at law or in equity or otherwise.

 

 

ARTICLE VII

Miscellaneous

 

Section 7.01            Expenses.
All costs and expenses incurred in connection with this Agreement and the transactions contemplated hereby shall be paid by the party
incurring such costs and expenses.

 

Section 7.02            Notices.
All notices, claims, demands, and other communications hereunder shall be in writing and shall be deemed to have been given: (a) when
delivered by hand (with written confirmation of receipt); (b) when received by the addressee if sent by a nationally recognized overnight
courier (receipt requested); (c) on the date sent by email of a PDF document (with confirmation of transmission) if sent during normal
business hours of the recipient, and on the next business day if sent after normal business hours of the recipient, or (d) on the
third day after the date mailed, by certified or registered mail, return receipt requested, postage prepaid. Such communications must
be sent to the respective parties at the following addresses (or at such other address for a party as shall be specified in a notice given
in accordance with this Section 7.02):

 

    17

     

    

 

	If to Seller or Serrano:	
    Norm Serrano

    1348 W1340 N

    Pleasant Grove, UT 84062

    Email: vibetech@reagan.com

    Attention: Norman Serrano

	 	 
	
    with a copy to:

     
	
    Strong & Hanni, P.C.

    102 S 200 E, Suite 800

    Salt Lake City, UT 84111

    Email: jshapiro@strongandhanni.com

    Attention: Joseph Shapiro

	 	 
	If to Buyer:	4863 Shawline Street, San Diego, California 92111

Email: michael.mo@kulrtechnology.com

Attention: Chief Executive Officer
	 	 
	
    with a copy to:

     
	
    1185 Avenue of the Americas, 31st Floor, New York, NY 10036

    Email: Jyamamoto@SRF.LAW

    Attention: Jay Yamamoto, Esq.

    

 

Section 7.03            Interpretation;
Headings. This Agreement shall be construed without regard to any presumption or rule requiring construction or interpretation
against the party drafting an instrument or causing any instrument to be drafted. The headings in this Agreement are for reference only
and shall not affect the interpretation of this Agreement.

 

Section 7.04            Severability.
If any term or provision of this Agreement is invalid, illegal, or unenforceable in any jurisdiction, such invalidity, illegality, or
unenforceability shall not affect any other term or provision of this Agreement.

 

 

Section 7.05            Entire
Agreement. This Agreement and the other Transaction Documents constitute the sole and entire agreement of the parties to this Agreement
with respect to the subject matter contained herein and therein, and supersede all prior and contemporaneous understandings and agreements,
both written and oral, with respect to such subject matter. In the event of any inconsistency between the statements in the body of this
Agreement and those in the other Transaction Documents, the Exhibits, and the Schedules (other than an exception expressly set forth as
such in the Schedules), the statements in the body of this Agreement will control.

 

Section 7.06            Successors
and Assigns. This Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective successors
and permitted assigns. Neither party may assign its rights or obligations hereunder without the prior written consent of the other party,
which consent shall not be unreasonably withheld or delayed. Any purported assignment in violation of this Section shall be null
and void. No assignment shall relieve the assigning party of any of its obligations hereunder.

 

Section 7.07            Amendment
and Modification; Waiver. This Agreement may only be amended, modified, or supplemented by an agreement in writing signed by each
party hereto. No waiver by any party of any of the provisions hereof shall be effective unless explicitly set forth in writing and signed
by the party so waiving. No failure to exercise, or delay in exercising, any right or remedy arising from this Agreement shall operate
or be construed as a waiver thereof; nor shall any single or partial exercise of any right or remedy hereunder preclude any other or further
exercise thereof or the exercise of any other right or remedy.

 

    18

     

    

 

Section 7.08            Governing
Law; Submission to Jurisdiction; Waiver of Jury Trial.

 

(a)            All
matters arising out of or relating to this Agreement shall be governed by and construed in accordance with the internal laws of the State
of New York without giving effect to any choice or conflict of law provision or rule (whether of the State of New York or any other
jurisdiction). Any legal suit, action, proceeding, or dispute arising out of or related to this Agreement, the other Transaction Documents,
or the transactions contemplated hereby or thereby may be instituted—if subject matter jurisdiction and venue are available therein—in
the federal courts of the United States of America or the courts of the State of New York in each case located in the city of New York
and county of New York, and each party irrevocably submits to the exclusive jurisdiction of such courts in any such suit, action, proceeding,
or dispute.

 

(b)            EACH
PARTY ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY WHICH MAY ARISE UNDER THIS AGREEMENT OR THE OTHER TRANSACTION DOCUMENTS IS LIKELY
TO INVOLVE COMPLICATED AND DIFFICULT ISSUES AND, THEREFORE, EACH PARTY IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT PERMITTED
BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL ACTION, PROCEEDING, CAUSE OF ACTION, OR COUNTERCLAIM ARISING
OUT OF OR RELATING TO THIS AGREEMENT, INCLUDING ANY EXHIBITS AND SCHEDULES ATTACHED TO THIS AGREEMENT, THE OTHER TRANSACTION DOCUMENTS,
OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY. EACH PARTY CERTIFIES AND ACKNOWLEDGES THAT: (I) NO REPRESENTATIVE OF THE OTHER
PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT THE OTHER PARTY WOULD NOT SEEK TO ENFORCE THE FOREGOING WAIVER IN THE EVENT OF A LEGAL
ACTION; (II) EACH PARTY HAS CONSIDERED THE IMPLICATIONS OF THIS WAIVER; (III) EACH PARTY MAKES THIS WAIVER KNOWINGLY AND VOLUNTARILY;
AND (IV) EACH PARTY HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN
THIS SECTION.

 

Section 7.09            Attorney
Fees. The prevailing Party in any action, suit, or proceeding to enforce this Agreement shall be entitled to reasonable costs and
attorney fees from the non-prevailing Party.

 

Section 7.10            Counterparts.
This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together shall be deemed to
be one and the same agreement. A signed copy of this Agreement delivered by facsimile, email, or other means of electronic transmission
shall be deemed to have the same legal effect as delivery of an original signed copy of this Agreement.

 

[Signature Page Follows]

 

    19

     

    

 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to
be executed as of the date first written above by their respective officers thereunto duly authorized.

 	 	SELLER
	 	 
	 	By	/s/
    Norman Serrano
	 	Norman Serrano

	 	Position: 	 

 

	 	 
	 	 
	 	NORMAN SERRANO
	 	 
	 	/s/ Norman Serrano
	 	Norman Serrano
	 	 
	 	 
	 	KULR TECHNOLOGY GROUP, INC.
	 	 
	 	By	/s/ Michael
    Mo
	 	Michael Mo
	 	Chief Executive Officer

 

    20Exhibit 10.13

 

SARATOGA INVESTMENT
CORP.

NOTES PURCHASE AGREEMENT

 

Dated as of July 9, 2020

 

To the Purchaser Listed in the signature page:

 

Ladies and Gentlemen:

 

The undersigned, Saratoga Investment
Corp., a Maryland corporation (the “Corporation”), hereby agrees with you as follows:

 

1. AUTHORIZATION; SALE AND PURCHASE OF NOTES

 

1.1. Authorization
of Notes. The Corporation has duly authorized the issuance and sale of $5,000,000 aggregate principal amount of its 7.75% Notes due
2025 (the “Notes”) in a private offering, pursuant to an offering memorandum dated on or about the date hereof (the
“Offering Memorandum”). Upon the mutual agreement of the Corporation and the Purchaser (as defined below), the Corporation
may authorize additional Notes for sale in a subsequent offering (the “Additional Notes”), or issue additional notes
with modified pricing terms (the “New Notes”), in the aggregate, up to a maximum of $50,000,000 in one or more private
offerings.

 

1.2. Sale
and Purchase of the Notes. Subject to the terms and conditions herein provided, the Corporation hereby agrees to sell to the purchaser
listed in the signature page attached hereto (the “Purchaser”), and the Purchaser agrees to purchase from the Corporation,
at the Closing provided for in Section 2 hereof, that aggregate principal amount of Notes specified directly opposite its name
in the signature page, at the purchase price of 96.25% of the principal amount thereof (the “Purchase Price”). The
Purchaser understands and acknowledges that it has made its own review of the investment merits and risks of the Notes.

 

1.3. On
the date hereof, the Corporation and the Purchaser are entering into this Notes Purchase Agreement (the “Agreement”
and, together with each of the other agreements (the “Transaction Documents”) entered into by the parties hereto or
by the Corporation and U.S. Bank National Association, as trustee (the “Trustee”), including the Notes and the base
indenture, dated May 10, 2013, governing the Notes, entered into by and between the Corporation, as issuer, and the Trustee, as well as
a fifth supplemental indenture, dated on or about the Closing Date (as defined herein), entered into in connection with the closing of
the sale of the Notes, by and between the Corporation, as issuer, and the Trustee (the “Supplemental Indenture,” and
together with the Base Indenture, the “Indenture”), in connection with the transactions contemplated by this Agreement
(collectively, the “Transactions”).

 

2. THE
CLOSING.

 

2.1. Time
and Place of the Closing. Subject to Section 3 hereof, payment of the Purchase Price for and delivery of the Notes shall be
made at the offices of the Corporation, or at such other place or in such other manner as may be agreed upon by the Corporation and the
Purchaser, at 1:00 P.M., New York time, on July 9, 2020 or at such other time or date as the Purchaser and the Corporation may mutually
determine (such date and time of payment and delivery being herein called the “Closing Date”).

 

     

     

    

 

2.2. Delivery
of and Payment for the Notes. Subject to Section 3 hereof, at the closing of the Transactions contemplated by this Agreement
(the “Closing”), the Corporation shall instruct the Trustee to deliver to the Purchaser a definitive Note bearing an
appropriate restricted securities legend, against payment in full on the Closing Date of the Purchase Price therefor by wire transfer
of immediately available funds for credit to the following account, or such other account as the Corporation shall direct in writing on
or prior to the Closing Date.

 

3. CONDITIONS
TO CLOSING

 

3.1. Conditions
to the Purchaser’s Obligations. The obligations of the Purchaser hereunder are subject to the accuracy, as of the date hereof
and on the Closing Date, of the representations and warranties of the Corporation contained herein, except to the extent any such representation
or warranty expressly specifies an earlier date, and to the performance by the Corporation of its obligations hereunder and to each of
the following additional terms and conditions:

 

(a) The
representations and warranties of the Corporation herein shall be true and correct in all respects as of the date when made and as of
the Closing Date as though 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 specified date) and the Corporation shall have performed, satisfied and complied in all respects with the
covenants, agreements and conditions required hereby to be performed, satisfied or complied with by the Corporation at or prior to the
Closing Date.

 

(b) Any
authorizations, consents, commitments, agreements, orders or approvals of, or declarations or filings with, or expirations of waiting
periods imposed by any federal, state or local court or governmental or regulatory agency or authority or applicable stock exchange or
trading market (any such court, agency, authority, exchange or market, a “Governmental Authority”) required for the
consummation of the Transactions shall have been obtained or filed or shall have occurred and any such orders shall have become final,
non-appealable orders. Each of the Corporation and the Purchaser agrees to use commercially reasonable efforts to take all actions, if
any, and to do all things necessary, proper or advisable, if any, to obtain any applicable authorizations, consents, orders and approvals
of all Governmental Authorities necessary for the Corporation to sell the Notes on the Closing Date on terms consistent with the terms
set forth in this Agreement.

 

    -2-

     

    

 

(c) The
Corporation shall have executed and delivered to the Purchaser each of the Transaction Documents, as well as:

 

(i) an
Officer’s Certificate, dated the date of the Closing, certifying that the conditions specified in Sections 3.1(a) and 3.1(b) have
been fulfilled and that the representations and warranties contained in Section 4.1 are true and correct, with the same force and effect
as though expressly made and fulfilled, as applicable, at and as of Closing (except for representations and warranties that speak as of
a specific date, which shall be true and correct as of such specified date); and

 

(ii) a
certificate of the Corporation’s Secretary, dated the date of the Closing, certifying as to (i) the resolutions attached thereto,
and other corporate proceedings, relating to the authorization, execution and delivery of the Notes and this Agreement and (ii) the Corporation’s
organizational documents as then in effect.

 

(d) The
Corporation shall have delivered to counsel for Purchaser an amount equal to the legal fees, subject to a cap of $10,000, incurred in
connection with the Transactions by wire transfer of immediately available funds pursuant to the wire instructions provided by the counsel
to the Purchaser.

 

3.2. Conditions
to the Corporation’s Obligations. The obligations of the Corporation hereunder are subject to the accuracy, as of the date hereof
and as of the Closing Date, of the representations and warranties of the Purchaser contained herein and to the performance by the Purchaser
of its obligations hereunder and to each of the following additional terms and conditions:

 

(a) The
Purchaser shall have received any and all necessary approvals from all Governmental Authorities necessary for the purchase by the Purchaser
of the Notes as the case may be, pursuant to this Agreement, and any and all applicable waiting periods upon which such approvals are
conditioned shall have expired.

 

(b) The
Purchaser shall have delivered to the Corporation the Purchase Price for the Notes being purchased by the Purchaser, at the Closing by
wire transfer of immediately available funds pursuant to the wire instructions provided by the Corporation.

 

4. REPRESENTATIONS
AND WARRANTIES & COVENANTS

 

4.1. Representations
and Warranties of the Corporation. The Corporation represents and warrants to, and agrees with the Purchaser that as of the date hereof
and as of the Closing Date:

 

(a) The
Corporation has all permits, licenses, authorizations, orders and approvals of, and has made all filings, applications and registrations
with, any governmental entities that are required in order to carry on its business as presently conducted and that are material to the
business of the Corporation, except where the failure to have such permits, licenses, authorizations, orders and approvals or the failure
to make such filings, applications and registrations would not, individually or in the aggregate, reasonably be expected to have a Material
Adverse Effect (as defined herein); and all such permits, licenses, certificates of authority, orders and approvals are in full force
and effect and, to the knowledge of the Corporation, no suspension or cancellation of any of them is threatened, and all such filings,
applications and registrations are current.

 

(b) The
Purchaser has reviewed the Offering Memorandum, as amended or supplemented (together with the documents incorporated by reference into
the Offering Memorandum, the “Disclosure Materials”). As of the date hereof, each of the documents comprising a part
of the Disclosure Materials, when such documents are considered together as a whole, did not contain or will not contain any untrue statement
of material fact or omitted to state or will not omit to state any material fact required to be stated therein or necessary to make the
statements therein, in light of the circumstances under which they were made, not misleading.

 

    -3-

     

    

 

(c) Based
in part upon the representations and warranties of the Purchaser contained herein, the Corporation is not required by applicable law or
regulation in connection with the offer, sale and delivery of the Notes to the Purchaser in the manner contemplated by this Agreement
to register the Notes under the Securities Act of 1933, as amended (the “Securities Act”), or any state securities
laws.

 

(d) The
Corporation, (i) has been duly incorporated and is validly existing in good standing under the laws of its jurisdiction of incorporation,
(ii) is duly qualified to do business and is in good standing as a foreign corporation in each jurisdiction in which its ownership or
lease of property or the conduct of its businesses requires such qualification, except where the failure to be so qualified would not
result in any material adverse change in the condition, financial or otherwise, or in the earnings or business affairs of the Corporation,
or which would not materially and adversely affect the assets or properties of the Corporation, or which would not materially and adversely
affect the ability of the Corporation to perform its obligations under the Transaction Documents (individually or in the aggregate, a
“Material Adverse Effect,” except that the mere filing of any action, claim, suit or order relating to any actual or
threatened litigation involving the Corporation or any of its employees after the date of this Agreement (rather than the actual facts
and circumstances underlying such action, claim, suit or order) shall not be deemed a Material Adverse Effect); and (iii) has all corporate
power and authority necessary to own or hold its respective properties and to conduct the businesses in which it is currently engaged.

 

(e) The
Notes have been duly authorized by the Corporation and, when issued and authenticated by the Trustee pursuant to the Indenture, will have
been duly executed, issued and delivered and will constitute valid and legally binding agreements of the Corporation enforceable against
the Corporation in accordance with their terms, subject to the effects of bankruptcy, insolvency, reorganization, moratorium and other
similar laws relating to or affecting creditors’ rights generally, and general equitable principles (whether considered in a proceeding
in equity or at law). The Indenture has been duly authorized, executed and delivered by the Corporation and, when executed and delivered
by the Trustee, will constitute a valid and legally binding agreement of the Corporation enforceable against the Corporation in accordance
with its terms, subject to the effects of bankruptcy, insolvency, reorganization, moratorium and other similar laws relating to or affecting
creditors’ rights generally, and general equitable principles (whether considered in a proceeding in equity or at law).

 

(f) This
Agreement has been duly authorized by the Corporation.

 

(g) The
execution, delivery and performance of this Agreement, the issuance and sale of the Notes in the manner contemplated hereby, and the consummation
of the Transactions, will not (i) conflict with or constitute a violation of, or default (with the passage of time or the delivery of
notice) under, (A) any bond, debenture, note or other evidence of indebtedness, or any agreement, lease, franchise, license, permit, contract,
indenture, mortgage, deed of trust, loan agreement, joint venture or other agreement or instrument to which the Corporation is a party
or by which it or its property is bound, where such conflict, violation or default would reasonably be expected to have a Material Adverse
Effect, or (B) to the knowledge of the Corporation, any law, administrative regulation, ordinance or judgment, order or decree of any
court or governmental agency, arbitration panel or authority binding upon the Corporation or any of its property, where such conflict,
violation or default would reasonably be expected to have a Material Adverse Effect, or (ii) violate any of the provisions of the Corporation’s
Articles of Amendments, as amended, or the Corporation’s Second Amended and Restated Bylaws; and no consent, approval, authorization
or order of, or filing or registration with any person (including, without limitation, any such court or governmental agency or body)
is required for the consummation of the Transactions by the Corporation, except such as may be required under state securities laws or
the Securities Act.

 

    -4-

     

    

 

(h) The
Corporation’s audited financial statements (including the related notes) dated as of February 29, 2020 present fairly, in all material
respects, the financial condition and results of operations of the Corporation, at the dates and for the periods indicated, and have been
prepared in conformity with U.S. generally accepted accounting principles applied on a consistent basis throughout the periods involved.

 

(i) The
Offering Memorandum describes the outstanding “senior securities” (as that term is defined in the Investment Company Act of
1940, as amended, or the “1940 Act”) representing indebtedness of the Corporation, and since the date specified there,
there has been no material change in the amounts, interest rates, sinking funds, installment payments or maturities of the indebtedness
of the Corporation. As of the date hereof, the Corporation is not in default and no waiver of default is currently in effect in the payment
of any principal or interest on any “senior securities” representing indebtedness of the Corporation and, to the knowledge
of the Corporation, no event or condition exists with respect to any “senior securities” representing indebtedness of the
Corporation that would permit (or that with notice or the lapse of time, or both, would permit) one or more persons to cause such indebtedness
to become due and payable before its stated maturity or before its regularly scheduled dates of payment.

 

(j) The
Corporation has not changed its jurisdiction of incorporation or organization, as applicable, or been a party to any merger or consolidation
or succeeded to all or any substantial part of the liabilities of any other entity, at any time following the date of the most recent
financial statements referred to in Section 4.1(h).

 

(k) No
temporary restraining order, preliminary or permanent injunction or other order issued by any court of competent jurisdiction or other
legal restraint or prohibition preventing the consummation of the Transactions is in effect nor has any action been filed or is any proceeding
pending that seeks any such event.

 

(l) No
broker’s, finder’s, investment banker’s or similar fee or commission has been paid or will be payable by the Corporation
with respect to, or for any services rendered to the Corporation ancillary to, the offer, issue and sale of the Notes contemplated by
this Agreement.

 

(m) There
are no actions, suits, investigations or proceedings pending or, to the knowledge of the Corporation, threatened against or affecting
the Corporation or any property of the Corporation in any court or before or by any governmental authority that would, individually or
in the aggregate, reasonably be expected to have a Material Adverse Effect.

 

(n) To
its knowledge, the Corporation is in compliance with all applicable laws, rules, regulations, orders, decrees and judgments applicable
to it, including, without limitation, the 1940 Act and the rules promulgated thereunder, all applicable local, state and federal environmental
laws and regulations, the provisions of the Sarbanes-Oxley Act of 2002, as amended (“Sarbanes-Oxley Act”), and the
applicable federal and state banking laws, rules and regulations (collectively, the “Applicable Laws”), except where
failure to be so in compliance would not have a Material Adverse Effect. The Corporation has not received any notice of purported or actual
non-compliance with Applicable Laws, except to the extent it would not, individually or in the aggregate, reasonably be expected to have
a Material Adverse Effect. The Corporation has not received any communication from any Governmental Authority threatening to revoke any
permit, license, franchise, certificate of authority or other governmental authorization.

 

    -5-

     

    

 

(o) The
Corporation maintains insurance (issued by insurers of recognized financial responsibility) of the types, against such losses and in the
amounts, with such insurers and subject to deductibles and exclusions as are customary in the Corporation’s industry and otherwise
reasonably prudent, including, without limitation, insurance covering all real and personal property owned or leased by the Corporation
against theft, damage, destruction, acts of vandalism and all other risks customarily insured against by similarly situated companies,
all of which insurance is in full force and effect.

 

(p) None
of the Corporation, any of its affiliates, and any Person acting on its behalf has, directly or indirectly, made any offers or sales of
the Notes or solicited any offers to buy the Notes in this Offering, under circumstances that would require registration of the Notes
to be sold in this Offering under the Securities Act. None of the Corporation, any of its affiliates, and 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 cause this Offering of the Notes to be integrated with the current or any prior public offerings by the Corporation for purposes
of the Securities Act or any applicable stockholder approval provisions, including, without limitation, under the rules and regulations
of any exchange or automated quotation system on which any of the securities of the Corporation are listed or designated. None of the
Corporation, its affiliates and any Person acting on its behalf will take any action or steps referred to in the preceding sentence that
would require registration of any of the Notes to be sold in this Offering under the Securities Act. For the purposes of this Agreement,
“Person” shall mean any individual, corporation, partnership, joint venture, limited liability company, business trust,
joint stock corporation, trust or unincorporated organization or any government or agency or political subdivision thereof.

 

(q) The
Corporation shall use the proceeds from the sale of Notes in this Offering as described in the Offering Memorandum under the caption “Use
of Proceeds.”

 

(r) The
Corporation is in compliance in all respects with its investment policies, except to the extent that the failure to comply therewith would
not reasonably be expected to have a Material Adverse Effect.

 

4.2. Covenants
of the Corporation. For so long as the Notes are issued and outstanding, the Corporation shall comply with the following covenant:

 

(a) In
the event that the Corporation shall offer the Additional Notes or the New Notes for sale, the Purchaser shall have the right, but not
the obligation, to purchase some or all of the Additional Notes or the New Notes, as applicable, before any of the Additional Notes or
the New Notes, as applicable, are offered to any other person; provided that (i) the Purchaser shall provide notice (the “Purchaser’s
Notice”) to the Corporation of its intent to exercise its right to purchase the Additional Notes or the New Notes, as applicable,
under this Section 4.2(a) within five (5) business days of notice by the Corporation to the Purchaser of the Corporation’s intent
to offer the Additional Notes or the New Notes, as applicable; and further provided that (ii) the Purchaser shall enter into a definitive
agreement with the Corporation to purchase the Additional Notes or the New Notes, as applicable, within two (2) business days of the Purchaser’s
Notice. In the event that the requirements contained in sub-parts 4.2(a)(i) or 4.2(a)(ii) above are not met, the Corporation shall have
the right to offer the Additional Notes or the New Notes, as applicable, to third parties notwithstanding the requirements otherwise imposed
on the Corporation by this Section 4.2(a).

 

    -6-

     

    

 

4.3. Representations
and Warranties of the Purchaser. The Purchaser represents and warrants to, and agrees with the Corporation that, as of the date hereof:

 

(a) The
Purchaser has full power and authority to enter into this Agreement and this Agreement constitutes a valid and legally binding obligation
of the Purchaser, enforceable against the Purchaser in accordance with its terms, subject to the effects of bankruptcy, insolvency, reorganization,
moratorium and other similar laws relating to or affecting creditor’s rights generally, and general equitable principles (whether
considered in a proceeding in equity or at law).

 

(b) The
Purchaser is a Cayman Islands exempted company incorporated with limited liability and it represents that: (i) it is duly organized, validly
existing and in good standing in its jurisdiction of incorporation or organization and has all the requisite power and authority to purchase
the Notes as provided herein, and (ii) such investment has been duly authorized by all necessary action on behalf of the Purchaser.

 

(c) If
the Purchaser is purchasing the Notes in a representative or fiduciary capacity, the representations and warranties contained herein (and
in any other written statement or document delivered to the Corporation in connection herewith) shall be deemed to have been made on behalf
of the person or persons for whom such Notes are being purchased.

 

(d) The
Purchaser is purchasing the Notes for Purchaser’s own account and not with a view to or for sale in connection with any distribution
thereof in a transaction that would violate or cause a violation of the Securities Act or the securities laws of any state or any other
applicable jurisdiction. The Purchaser has no present intention of selling the Notes, granting any participation interest in the Notes
or otherwise distributing the Notes, in each case in violation of the Securities Act. If the Purchaser is an entity, the Purchaser has
not been organized solely for the purpose of acquiring the Notes. Purchaser is not a broker dealer registered with the SEC under the Securites
Exchange Act of 1934 (the “Exchange Act”) or an entity engaged in a business that would require it to be so registered.

 

(e) The
Purchaser is a “qualified institutional buyer” within the meaning of Rule 144A under the Securities Act and understands and
agrees that the offer and sale of the Notes to the Purchaser hereunder have not been registered under the Securities Act or any state
securities law in reliance on the availability of an exemption from such registration requirements based in part on the accuracy of the
Purchaser’s representations in this Section 4.3.

 

(f) In
the normal course of the Purchaser’s business or affairs, Purchaser invests in or purchases securities similar to the Notes and
has such knowledge and experience in financial and business matters as to be capable of evaluating the merits and risks of purchasing
the Notes. Purchaser has received and carefully reviewed the Disclosure Materials and understands the information contained therein. Purchaser
understands that the Disclosure Materials contain certain “forward-looking” information regarding the Corporation and its
business, and that the Corporation’s ability to predict results or the actual effect of future plans or strategies is inherently
uncertain. Purchaser has received all information it believes necessary to decide to purchase the Notes. Purchaser has had access to such
financial and other information concerning the Corporation as Purchaser deemed necessary or desirable in making a decision to purchase
the Notes, including an opportunity to ask questions and receive answers from officers of the Corporation and to obtain additional information
(to the extent the Corporation possessed such information or could acquire it without unreasonable effort or expense) necessary to verify
the accuracy of any information furnished to Purchaser or to which Purchaser had access.

 

    -7-

     

    

 

(g) The
Purchaser is not relying on the Corporation or any of its affiliates with respect to an analysis or consideration of the terms of or economic
considerations relating to an investment in the Notes. In regard to such considerations and analysis, the Purchaser has relied on the
advice of, or has consulted with, only his, her or its own advisors, other than those advisors of the undersigned affiliated with the
Corporation or any of its affiliates or the Corporation’s placement agent.

 

(h) The
Purchaser acknowledges and is aware that there are substantial restrictions on the transferability of the Notes. Purchaser understands
that the Notes have not been registered under the Securities Act and are “restricted securities” within the meaning of Rule
144 and may not be sold, transferred, or otherwise disposed of without registration under the Securities Act or an exemption therefrom.
Furthermore, Purchaser acknowledges that the Notes purchased hereunder will bear a legend substantially to the effect set forth below,
and the Purchaser covenants that, except to the extent such restrictions are waived by the Corporation, the Purchaser shall not transfer
the Notes without complying with the restrictions on transfer described in the legend:

 

THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR THE SECURITIES LAWS OF ANY STATE. THIS NOTE MAY NOT BE OFFERED, SOLD, ASSIGNED,
TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF EXCEPT (A) IF REGISTERED UNDER APPLICABLE SECURITIES LAWS OR (B) IN A TRANSACTION
EXEMPT FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND APPLICABLE STATE SECURITIES LAW, SUBJECT TO THE CORPORATION’S
AND THE TRUSTEE’S RIGHT TO REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO EACH OF THEM THAT SUCH TRANSACTION
DOES NOT REQUIRE REGISTRATION UNDER THE SECURITIES ACT AND/OR APPLICABLE STATE SECURITIES LAW.

 

Purchaser understands that Purchaser has no right
to require that the Notes be registered under the Securities Act.

 

(i) The
Purchaser represents and warrants that it is not required to obtain, prepare or file any authorization, approval, consent, filing or registration
with any federal Governmental Authority in order to consummate the Transactions at the Closing Date.

 

    -8-

     

    

 

(j) Purchaser
did not learn of the investment in the Notes by means of any formal general or public solicitation or general advertising or publicly
disseminated advertisements or sales literature, including (i) any registration statement or prospectus filed by the Corporation with
the SEC, (ii) any advertisement, articles, notices or other communication published in any newspaper, magazine or similar media, or broadcast
over television or radio, or (iii) any seminar or meeting to which the Purchaser was invited by any of the foregoing means of communications.

 

(k) The
Purchaser understands that the Notes are being offered and sold to it in reliance upon specific exemptions from the registration requirements
of U.S. federal and state securities laws and that the Corporation is relying upon the truth and accuracy of, and the Purchaser’s
compliance with, the representations, warranties, agreements, acknowledgements and understandings of the Purchaser set forth in this Section
4.3 in order to determine the availability of such exemption and the eligibility of the Purchaser to acquire the Notes.

 

(l) The
Purchaser acknowledges and understands that its investment in the Notes involves a significant degree of risk, including, without limitation
that (i) an investment in the Corporation is not without risk (and specific reference is made to the “Risk Factors” section
contained in the Offering Memorandum) and (ii) in the event of a disposition of the Notes, the Purchaser could sustain the loss of its
entire investment.

 

(m) The
Purchaser hereby acknowledges that the Corporation seeks to comply with all applicable laws concerning money laundering and related activities.
In furtherance of such efforts, the Purchasers hereby represent, warrant and agree that to the best of the the Purchasers’ knowledge,
based upon reasonable diligence and investigation, no consideration that the Purchaser has contributed or will contribute to the Corporation
has been or shall be derived from, or related to, any activity that is in contravention of any federal, state or international laws and
regulations, including anti-money laundering laws and regulations. The Purchasers hereby represent that neither they nor any of their
owners or affiliates is a person or entity named on a list maintained by the Office of Foreign Asset Control (“OFAC”) of the
U.S. Department of the Treasury, nor are the undersigned or any of their owners or affiliates a person or entity with whom dealings are
prohibited under any OFAC regulations. Federal regulations and Executive Orders administered by OFAC prohibit, among other things, the
engagement in transactions with, and the provision of services to, certain foreign countries, territories, entities and individuals. The
lists of OFAC prohibited countries, territories, persons and entities, including without limitation the Specially Designated Nationals
and Blocked Nations List, can be found on the OFAC website at http://www.treas.gov/ofac. In addition, the programs administered by OFAC
prohibit dealing with individuals or entities in certain countries regardless of whether such individuals or entities appear on the OFAC
lists. Please be advised that the Corporation may not accept any amounts from a Purchaser if the Purchaser cannot make the representation
set forth in the preceding sentence. The Purchaser agrees to promptly notify the Corporation should the Purchaser become aware of any
change in the information set forth in these representations.

 

(n) The
Purchaser understands and agrees that if at any time it is discovered that any of the foregoing representations set forth in Section 4.3(m)
above are incorrect, or if otherwise required by applicable law or regulation related to money laundering and similar activities, the
Corporation may, in its sole discretion, undertake appropriate actions to ensure compliance with applicable law or regulation, including
but not limited to freezing, segregating or requiring the Purchaser to sell the Purchaser’s Shares. The Purchaser agrees to provide
to the Corporation any additional information regarding the Purchaser that the Corporation deems necessary or appropriate to ensure compliance
with all laws and regulations concerning money laundering and similar activities that may apply now or in the future.

 

    -9-

     

    

 

(o) To the best of the Purchaser’s
knowledge, none of (a) the Purchaser, (b) any person controlling or controlled by the Purchaser, (c) if the Purchaser is a privately-held
entity, any person having a beneficial interest in the Purchaser or (d) any person for whom the Purchaser is acting as agent or nominee
in connection with this investment is a senior foreign political figure1,
or any immediate family member2 or close
associate3 of a senior foreign political
figure, as such terms are defined in the footnotes below.

 

(p) If
the Purchaser is affiliated with a non-U.S. banking institution (a “Foreign Bank”), or if the Purchaser receives deposits
from, makes payments on behalf of, or handles other financial transactions related to a Foreign Bank, the Purchaser represents and warrants
to the Corporation that (a) the Foreign Bank has a fixed address, other than solely an electronic address, in a country in which the Foreign
Bank is authorized to conduct banking activities, (b) the Foreign Bank maintains operating records related to its banking activities,
(c) the Foreign Bank is subject to inspection by the banking authority that licensed the Foreign Bank to conduct banking activities and
(d) the Foreign Bank does not provide banking services to any other Foreign Bank that does not have a physical presence in any country
and that is not a regulated affiliate.

 

(q) The
Purchaser acknowledges that pursuant to the requirements of the USA Patriot Act (Title III of Pub. L. 107-56 (signed into law October
26, 2001)) (the “Patriot Act”), the Corporation is required to obtain, verify and record information that identifies the Purchaser,
which information includes the name and address of the Purchaser and other information that will allow the Corporation to identify the
Purchaser in accordance with the Patriot Act. Accordingly, the Corporation may request information from the Purchaser that will help the
Corporation to identify the Purchaser (and in the case of subscribers that are entities, the Purchaser’s beneficial owners, if and
to the extent required by law), including without limitation the Corporation’s physical address, tax identification number, organizational
documents, certificate of good standing, license to do business, or any other information that the Corporation deems necessary. The Purchaser
agrees to provide to the Corporation any additional information regarding the Purchaser that the Corporation deems necessary or appropriate
to ensure compliance with the Patriot Act, or any successor law, whether now or in the future.

 

 

		1	A “senior foreign political figure” is defined as
a senior official in the executive, legislative, administrative, military or judicial branches of a foreign government (whether elected
or not), a senior official of a major foreign political party, or a senior executive of a foreign government-owned corporation. In addition,
a “senior foreign political figure” includes any corporation, business or other entity that has been formed by, or for the
benefit of, a senior foreign political figure.

 

		2	“Immediate family” of a senior foreign political
figure typically includes the figure’s parents, siblings, spouse, children and in-laws.

 

		3	A “close associate” of a senior foreign political
figure is a person who is widely and publicly known to maintain an unusually close relationship with the senior foreign political figure,
and includes a person who is in a position to conduct substantial domestic and international financial transactions on behalf of the
senior foreign political figure.

 

    -10-

     

    

 

(r) Except
as set forth in this Agreement, no representations or warranties have been made to the Purchaser by the Corporation, or any director,
officer, employee, agent or affiliate of any of them.

 

(s) The
Purchaser is not an affiliate of the Corporation.

 

(t) The
Purchaser, if a natural person, has accurately set forth his, her or its state or country of residence on the signature pages hereto where
indicated. The Purchaser, if a corporation, partnership, trust or other entity, has accurately set forth the Purchaser’s jurisdiction
of organization on the signature pages hereto where indicated.

 

(u) The
Purchaser (a) has the ability to bear the economic risks of this investment and can afford a complete loss of such investment, and (b)
understands the terms of and risks associated with the acquisition of their respective Notes, including, without limitation, a lack of
liquidity, pricing availability and risks associated with the industry in which the Corporation operates.

 

5. MISCELLANEOUS

 

5.1. Survival
of Representations and Warranties. All statements contained in any officers’ certificates delivered by or on behalf of the Corporation
pursuant to this Agreement or in connection with the Transactions contemplated hereby will be deemed representations or warranties of
the Corporation under this Agreement. All representations and warranties contained in this Agreement made by or on behalf of the Corporation
or the Purchaser will survive the execution and delivery of this Agreement, any investigation at any time made by or on behalf of the
Corporation or the Purchaser, and the sale and purchase of the Notes under this Agreement, and, except for representations and warranties
set forth in Sections 4.1(d), (e) and (f), shall expire on the one year anniversary of the Closing Date.

 

5.2. Successors
and Assigns. Except as otherwise provided herein, the terms and conditions of this Agreement shall inure to the benefit of and be
binding upon the respective successors and assigns of the parties. Nothing in this Agreement, express or implied, is intended to confer
upon any party other than the parties hereto or their respective successors and assigns any rights, remedies, obligations, or liabilities
under or by reason of this Agreement, except as expressly provided in this Agreement. Neither party shall assign this Agreement or any
rights or obligations hereunder without the prior written consent of the other party hereto. Purchaser may assign some or all of its rights
hereunder without the consent of the Corporation, in which event such assignee shall be deemed to be a Purchaser hereunder with respect
to such assigned rights.

 

    -11-

     

    

 

5.3. Notices.
All written communications provided for herein are required to be sent by registered or certified mail, postage prepaid or recognized
overnight delivery service (with charges prepaid) and (i) if to a Purchaser, addressed to the Purchaser at the address as specified for
such communications in the signature page, or at such other address as the Purchaser may have specified to the Corporation in writing,
and with a copy (for informational purposes only) to counsel for the Purchaser at the address specified for such communication in the
signature page or at such other address as the Purchaser may have specified to the Corporation in writing, and (ii) if to the Corporation,
addressed to it at:

 

Saratoga Investment Corp.

535 Madison Avenue

New York, New York 10022

Attn: Christian Oberbeck

 

with a copy (for informational purposes only) to:

 

Eversheds Sutherland (US) LLP

700 6th St NW

Washington, DC 20001

Attn: Payam Siadatpour, Esq.

 

or at such other address as the Corporation may
have specified to the Purchaser in writing. Notices under this Section 5.3 shall be deemed given only when actually received.

 

5.4. Governing
Law; Dispute Resolution; Waiver of Jury Trial. The parties shall bear their own legal fees and costs for all Disputes. All questions,
issues, disputes, demands, claims, causes of action or litigations concerning the construction, validity, enforcement, breach or interpretation
of this Agreement or otherwise arising out of or relating to the Transaction Documents (“Disputes”) 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 and shall be submitted to binding arbitration before the American Arbitration Association (“AAA”)
in New York County, City of New York, New York, in accordance with the AAA’s Commercial Arbitration Rules. The arbitration panel
shall consist of three (3) arbitrators and shall have the power to rule upon its own jurisdiction and authority, including any objection
to the initial or continuing existence, validity, effectiveness, or scope of this arbitration agreement. In the event that the parties’
agreement to arbitrate Disputes herein does not enjoy the protection they intend and is held to be unenforceable, each party hereto expressly
consents and agrees that the state and federal courts located in New York County, City of New York, New York shall have exclusive jurdicition
to hear and determine any Disputes. EACH PARTY HERETO EXPRESSLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT TO
TRIAL BY JURY OF ANY DISPUTES.

 

    -12-

     

    

 

5.5. Counterparts.
This Agreement may be executed in one or more counterparts and, if executed in more than one counterpart, the executed counterparts shall
each be deemed to be an original, but all such counterparts shall together constitute one and the same instrument.

 

5.6. Headings.
The headings herein are inserted for convenience of reference only and are not intended to be part of, or to affect the meaning or interpretation
of, this Agreement.

 

5.7. Severability.
Any provision of this Agreement that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective
to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall (to the full extent permitted by law) not invalidate or render unenforceable such provision
in any other jurisdiction.

 

5.8. Expenses.
Subject to Section 3.1(d), each of the Purchaser and the Corporation shall bear all expenses incurred by it in connection with the Agreement
and the Transactions contemplated hereby.

 

5.9. Construction.
Each agreement contained herein shall be construed (absent express provision to the contrary) as being independent of each other agreement
contained herein, so that compliance with any one agreement shall not (absent such an express contrary provision) be deemed to excuse
compliance with any other agreement. Where any provision herein refers to action to be taken by any person or entity, or which such person
or entity is prohibited from taking, such provision shall be applicable whether such action is taken directly or indirectly by such person
or entity.

 

5.10. Entire
Agreement; Amendments. This Agreement supersedes all other prior oral or written agreements between the Purchaser, the Corporation,
their affiliates and Persons acting on their behalf with respect to the matters discussed herein, and this Agreement and the instruments
referenced herein contain the entire understanding of the parties with respect to the matters covered herein and therein and, except as
specifically set forth herein or therein, neither the Corporation nor any Purchaser makes any representation, warranty, covenant or undertaking
with respect to such matters. No provision of this Agreement may be amended other than by an instrument in writing signed by the parties
hereto in accordance with any applicable law. No provision hereof may be waived other than by an instrument in writing signed by the party
against whom enforcement is sought. No such amendment shall be effective to the extent that it applies to less than all of the holders
of the Notes then outstanding. 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, including holders of the Notes. The Corporation has not, directly or indirectly, made any agreements with the Purchaser 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 Corporation confirms that, except as set forth in this Agreement, the Purchaser has not made any commitment
or promise or has any other obligation to provide any financing to the Corporation or otherwise.

 

    -13-

     

    

 

5.11. 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.

 

5.12. Confidentiality.

 

(a) From
time to time the Purchaser may provide the Corporation with information regarding the Purchaser, including the identity of the Purchaser
and other documents and information concerning the affairs of the Purchaser (“Confidential Information”). The Corporation
and its representatives shall not be entitled to reproduce any Confidential Information or portion thereof or make the contents thereof
available to any non-affiliate third party (other than its advisors, attorneys and accountants), or disclose its receipt of Confidential
Information or that Confidential Information has been made available to it, without the prior written consent of the Purchaser, except:
(i) to the extent compelled to do so in accordance with applicable law, regulatory requirement, or examination by a regulatory authority,
(ii) as required in connection with routine tax or ERISA filings, (iii) to the extent that such Confidential Information was already in
the Corporation’s or its representatives’ possession, (iv) to the extent that such Confidential Information is independently
developed by the Corporation or any of its representatives, (v) with respect to Confidential Information which otherwise becomes
publicly available or generally available to participants in the Purchaser’s industry other than through breach of this provision
by the Corporation or its agents, or (vi) as necessary to comply with the terms and conditions of this Agreement, the Notes or Indenture.
All Confidential Information is and shall at all times remain the property of the Purchaser.

 

(b) If
for any reason the Corporation is or may be required to disclose Confidential Information, the Corporation shall, to the fullest extent
permitted by law, promptly notify the Purchaser in writing of the relevant facts of such requirement prior to any such disclosure and
shall work with the Purchaser so that the Purchaser may seek at the Purchaser’s sole cost and expense a protective order or other
appropriate remedy to protect from disclosure as much of the Confidential Information as can be protected from disclosure under applicable
law.

 

5.13. Indemnification.

 

(a) In
consideration of the Purchaser’s execution and delivery of the Transaction Documents and acquiring the Notes thereunder and in addition
to all of the Corporation’s other obligations under the Transaction Documents, the Corporation shall defend, protect, indemnify
and hold harmless the Purchaser and all of their stockholders, partners, members, officers, directors, employees, advisors 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 and documented attorneys’
fees and disbursements (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 Corporation in the Transaction Documents
or any other certificate, instrument or document contemplated hereby or thereby, (b) any breach of any covenant, agreement or obligation
of the Corporation contained in the Transaction Documents or any other certificate, instrument or document contemplated hereby or thereby
or (c) any cause of action, suit or claim brought or made against such Indemnitee by a third party (including for these purposes a derivative
action brought on behalf of the Corporation) arising out of or resulting from any misrepresentation or breach of any representation or
warranty made by the Corporation in the Transaction Documents, any covenant, agreement or obligation of the Corporation contained in the
Transaction Documents, or any other certificate, instrument or document contemplated hereby or thereby, except that the Corporation shall
not defend, protect, indemnify or hold harmless any Inemnitee from any actions, causes of action, suits, claims, losses, costs, penalties,
fees, liabilities and damages, or expenses caused by the the Indemnitee’s willful misfeasance, bad faith, gross negligence, or reckless
disregard of its obligations and duties under this Agreement. To the extent that the foregoing undertaking by the Corporation may be unenforceable
for any reason, the Corporation shall make the maximum contribution to the payment and satisfaction of each of the Indemnified Liabilities
which is permissible under applicable law.

 

    -14-

     

    

 

(b) To
the fullest extent permitted by applicable law, the Purchaser will indemnify and hold harmless the Corporation, each of its directors
and officers, each person who controls the Corporation within the meaning of the Securities Act (if any), any underwriter (as defined
in the Securities Act), any other person or entity selling securities of the Corporation and referenced in a registration statement filed
by the Corporation, as applicable, and any controlling person of any such underwriter or other person or entity selling securities, against
any any loss, damage, claim or liability (joint or several) to which a party hereto may become subject under the Securities Act, the Exchange
Act or other federal or state law, in each case only to the extent that such such loss, damage, claim or liability (or any action in respect
thereof) arise out of or are based upon actions or omissions made in reliance upon and in conformity with representations and warranties
made by the Purchaser (“Damages”); and each the Purchaser will pay to the Corporation and each other aforementioned
person any legal or other expenses reasonably incurred thereby in connection with investigating or defending any claim or proceeding from
which Damages may result, as such expenses are incurred.

 

(c) Promptly
after receipt by an Indemnitee under this Section 5.13 of notice of the commencement of any action or proceeding (including any
governmental action or proceeding) involving an Indemnified Liability, such Indemnitee shall, if a claim for indemnification in respect
thereof is to be made against any indemnifying party under this Section 5.13, deliver to the indemnifying party a written notice
of the commencement thereof, and the indemnifying party shall have the right to participate in, and, to the extent the indemnifying party
so desires, jointly with any other indemnifying party similarly noticed, to assume control of the defense thereof with counsel mutually
satisfactory to the indemnifying party and the Indemnitee; provided, however, that an Indemnitee shall have the right to
retain its own counsel with the fees and expenses of not more than one counsel for such Indemnitee to be paid by the indemnifying party,
if, in the reasonable opinion of counsel to the Indemnitee, the representation by such counsel of the Indemnitee and the indemnifying
party would be inappropriate due to actual or potential differing interests between such Indemnitee and the indemnifying party. Legal
counsel referred to in the immediately preceding sentence shall be selected by the Purchaser holding at least a majority of the Notes
issued and issuable hereunder that are subject to such action or proceeding. The Indemnitee shall cooperate fully with the indemnifying
party in connection with any negotiation or defense of any such action or Indemnified Liabilities by the indemnifying party and shall
furnish to the indemnifying party all information reasonably available to the Indemnitee that relates to such action or Indemnified Liabilities.
The indemnifying party shall keep the Indemnitee fully 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 Indemnitee, which consent shall not be unreasonably
withheld conditioned or delayed, consent to entry of any judgment or enter into any settlement or other compromise which (i) does not
include as an unconditional term thereof the giving by the claimant or plaintiff to such Indemnitee of a release from all liability in
respect to such Indemnified Liabilities or litigation, (ii) requires any admission of wrongdoing by such Indemnitee, or (iii) obligates
or requires an Indemnitee to take, or refrain from taking, any action. Following indemnification as provided for hereunder, the indemnifying
party shall be subrogated to all rights of the Indemnitee 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 Indemnitee under this Section 5.13,
except to the extent that the indemnifying party is materially prejudiced in its ability to defend such action.

 

    -15-

     

    

 

(d) The
indemnification required by this Section 5.13 shall be made by periodic payments of the amount thereof during the course of the
investigation or defense, within a reasonable period of time as and when bills are received or Indemnified Liabilities are incurred.

 

(e) The
indemnity agreements contained herein shall be in addition to (x) any cause of action or similar right of the Indemnitee against the indemnifying
party or others, and (y) any liabilities the indemnifying party may be subject to pursuant to applicable law.

 

5.14. No
Strict 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.

 

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

 

5.16. Payment
Set Aside. To the extent that the Corporation makes a payment or payments to the Purchaser hereunder or pursuant to any of the other
Transaction Documents or the Purchaser enforces or exercises its 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 Corporation, 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.

 

[SIGNATURE PAGE
FOLLOWS]

 

    -16-

     

    

 

If the foregoing correctly sets forth the agreement
between the Corporation and the Purchaser, please indicate your acceptance in the space provided for that purpose below.

 

	 	Very truly yours,
	 	 	 
	 	SARATOGA INVESTMENT CORP.
	 	 	 
	 	By: 	/s/ Henri
    J. Steenkamp
	 	Name: 	Henri J. Steenkamp
	 	Title:	Chief Financial Officer, Chief
	 	Compliance Office and Secretary

 

     

     

    

 

SIGNATURE PAGE

 

This Agreement is hereby accepted and agreed to
as of the date hereof.

 

	 	 	Aggregate Amount of Principal to be Purchased: 
	 	 	$5,000,000
	 	 	Purchase Price: 
	 	 	$4,812,500
	 	 	 
	By:	/s/ Erik Herzfeld	 	Date: July 9, 2020
	Name:	 Erik Herzfeld	 	 
	Title:	Authorized Signatory

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00349-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00349-of-00352.parquet"}]]