Document:

Exhibit
10.7

 

EXHIBIT 1

 

 

 

 

 

 

 

 

 

 

 

 

 

     

     

    

 

UNITED STATES DISTRICT COURT

SOUTHERN DISTRICT OF NEW YORK

 

	 	 	 
	DANIEL YANNES,
    Individually and on Behalf of 	 	 
	All Others
    Similarly Situated,	 	 
	 	 	 
	Plaintiff,	 	CIVIL ACTION NO.: 20-CV-3349-JGK
	 	 	 
	vs.	 	 
	 	 	 
	SCWORX
    CORPORATION and MARC S. 	 	 
	SCHESSEL,	 	 
	 	 	 
	Defendants.	 	 
	 	 	 

 

STIPULATION
AND AGREEMENT OF SETTLEMENT

 

This
Stipulation and Agreement of Settlement dated February 11, 2022 (“Stipulation”) is entered into between Court-appointed Lead
Plaintiff Vy Nguyen (“Lead Plaintiff”), on behalf of himself and the Settlement Class (as defined below in ¶ 1(uu)),
and defendants SCWorx Corporation (“SCWorx” or the “Company”) and Marc S. Schessel (collectively, “Defendants”
and together with Lead Plaintiff, the “Parties”), by and through their respective counsel, and embodies the terms and conditions
of the settlement of the above-captioned action (“Action”).1 Subject to the approval of the Court and the terms
and conditions expressly provided herein, this Stipulation is intended to fully, finally and forever compromise, settle, release, resolve
and dismiss with prejudice all claims asserted in the Action against Defendants.

 

 

	1	All
terms with initial capitalization not otherwise defined herein shall have the meanings ascribed to them in ¶ 1 herein.

 

    2

     

    

 

WHEREAS:

 

A.
On April 29, 2020, the initial complaint was filed in the Action. In accordance with the Private Securities Litigation Reform Act of
1995, 15 U.S.C. § 78u-4, as amended (“PSLRA”), notice to the public was issued stating the deadline by which putative
class members could move the Court for appointment as lead plaintiff.

 

B.
By Order dated September 17, 2020, the Court appointed Vy Nguyen as Lead Plaintiff and Kaplan Fox & Kilsheimer LLP as Lead Counsel.

 

C.
On October 19, 2020, Lead Plaintiff filed the Consolidated Class Action Complaint for Violation of Federal Securities Laws (the “Complaint”),
asserting claims under §§ 10(b) and 20(a) of the Securities Exchange Act of 1934 (“Exchange Act”), 15 U.S.C. §§
78j(b) and 78t(a), and Rule 10b-5 promulgated thereunder, against Defendants.

 

D.
Defendants moved to dismiss the Complaint on November 18, 2020. On December 18, 2020, Lead Plaintiff filed its opposition to Defendants’
motion to dismiss, and on January 8, 2021, Defendants filed their reply in further support of their motion.

 

E.
By Order dated June 21, 2021, the Court denied Defendants’ motion to dismiss the Complaint in its entirety.

 

F.
On July 12, 2021, the Court entered a Scheduling Order including a schedule for discovery.

 

G.
Defendants filed their answers to the Complaint on July 27, 2021.

 

H.
At the outset of discovery, the Parties agreed to discuss a possible early resolution of the Action. To facilitate that discussion, Defendants
produced, on an expedited basis, certain documents that they previously produced to the Securities and Exchange Commission and the Department
of Justice in connection with those entities’ investigations of the same conduct at issue here. Additionally, the Parties scheduled
a formal mediation to be facilitated by Jed Melnick, Esq. of JAMS. In advance of the mediation, the Parties submitted detailed mediation
statements. Although the Parties were unable to reach a resolution of the Action at the initial mediation on August 23, 2021, they continued
their discussions with the assistance of Mr. Melnick, and after extensive additional negotiations, agreed to resolve the matter for the
sum of: (1) $2.7 million cash and (2) $600,000 in SCWorx common stock to be issued by the Company and (3) 100,000 shares of SCWorx common
stock to be provided by Defendant Schessel. On December 20, 2021, the Parties executed a binding term sheet setting forth the material
terms of their agreement (the “Term Sheet”).

 

I.
This Stipulation (together with the exhibits hereto) reflects the final and binding agreement between the Parties and supersedes the
Term Sheet in all respects.

 

J.
Based upon their investigation, prosecution, and mediation of the case, Lead Plaintiff and Lead Counsel have concluded that the terms
and conditions of this Stipulation are fair, reasonable and adequate to Lead Plaintiff and the Settlement Class, and in their best interests.
Based on Lead Plaintiff’s direct oversight of the prosecution of this matter and with the advice of his counsel, Lead Plaintiff
has agreed to settle and release the Released Plaintiffs’ Claims (as defined below in ¶ 1(mm)) as against Defendants pursuant
to the terms and provisions of this Stipulation, after considering, among other things: (i) the financial benefit that the Settlement
Class will receive under the proposed Settlement; and (ii) the significant risks and costs of continued litigation and trial.

 

K.
The Defendants deny, and continue to deny, that they have committed any act or omission giving rise to any liability under the Exchange
Act or Rule 10b-5 promulgated thereunder. Specifically, Defendants expressly have denied, and continue to deny, each and all of the claims
alleged by Lead Plaintiff in the Action, including without limitation, any liability arising out of any of the conduct, statements, acts,
or omissions alleged, or that could have been alleged, in the Action and maintain that their conduct was at all times proper and in compliance
with applicable provisions of law. Defendants also have denied, and continue to deny, among other things, that they made any material
misrepresentations or omissions in SCWorx’s public filings, press releases or other public statements, that Lead Plaintiff or the
Settlement Class have suffered any damages, that the price of SCWorx securities was artificially inflated by reasons of alleged misrepresentations,
non-disclosures or otherwise, or that Lead Plaintiff or the Settlement Class were harmed by the conduct alleged in the Action or that
they could have alleged as part of the Action. In addition, Defendants maintain that they have meritorious defenses to all claims alleged
in the Action.

 

    3

     

    

 

L.
As set forth below, neither the Settlement nor any of the terms of this Stipulation shall constitute an admission or finding of any fault,
liability, wrongdoing, or damages whatsoever or any infirmity in the defenses that Defendants have, or could have, asserted. Defendants
have determined that it is desirable and beneficial to them that the Action be settled in the manner and upon the terms and conditions
set forth in this Stipulation. Defendants’ decision to settle the Action was based on the conclusion that further litigation would
be protracted and expensive, with the uncertainty and risks inherent in any litigation and the determination that it is desirable and
beneficial to settle the Action in the manner and upon the terms and conditions set forth in this Stipulation and to put the Released
Claims to rest finally and forever, without in any way acknowledging any wrongdoing, fault, liability or damages to Lead Plaintiff or
the Settlement Class. Similarly, this Stipulation shall in no event be construed or deemed to be evidence of or an admission or concession
on the part of Lead Plaintiff of any infirmity in any of the claims asserted in the Action, or an admission or concession that any of
Defendants’ defenses to liability had any merit. Each of the Parties recognizes and acknowledges, however, that the Action has
been initiated, filed, and prosecuted by Lead Plaintiff in good faith and defended by Defendants in good faith, and that the Action is
being voluntarily settled with the advice of counsel.

 

NOW
THEREFORE, it is hereby STIPULATED AND AGREED, by and among Lead Plaintiff (individually and on behalf of all members of the Settlement
Class) and Defendants, by and through their respective undersigned attorneys and subject to the approval of the Court pursuant to Rule
23(e) of the Federal Rules of Civil Procedure, that, in consideration of the benefits flowing to the Parties from the Settlement, all
Released Plaintiffs’ Claims as against the Defendant Releasees and all Released Defendants’ Claims as against the Plaintiff
Releasees shall be settled and released, upon and subject to the terms and conditions set forth below.

 

DEFINITIONS

 

1.
As used in this Stipulation and any exhibits attached hereto and made a part hereof, the following capitalized terms shall have the following
meanings:

 

(a)
“Action” means Yannes v. SCWorx Corporation et ano., Civil Action No.: 20-CV-3349-JGK (S.D.N.Y.).

 

(b)
“Alternative Judgment” means a form of final judgment that may be entered by the Court herein but in a form other than the
form of Judgment provided for in this Stipulation.

 

(c)
“Authorized Claimant” means a Settlement Class Member who or which submits a Claim Form to the Claims Administrator that
is approved by the Court for payment from the Net Settlement Fund.

 

(d)
“Cash Settlement Amount” means Two Million Seven Hundred Thousand Dollars ($2,700,000.00) in cash to be paid pursuant to
¶ 8 of this Stipulation.

 

(e)
“Cash Settlement Fund” means the Cash Settlement Amount plus any and all interest earned thereon while in escrow.

 

(f)
“Claim” means a paper claim submitted on a Proof of Claim Form or an electronic claim that is submitted to the Claims Administrator.

 

(g)
“Claim Form” or “Proof of Claim Form” means the form, substantially in the form attached hereto as Exhibit A-(ii),
that a Claimant must complete and submit to the Claims Administrator in order to be eligible to share in a distribution of the Net Settlement
Fund.

 

(h)
“Claimant” means a person or entity who or which submits a Claim Form to the Claims Administrator seeking to be eligible
to share in the Net Settlement Fund.

 

(i)
“Claims Administrator” means A.B. Data, Ltd., the firm retained by Lead Counsel, subject to approval of the Court, to provide
all notices approved by the Court to potential Settlement Class Members in the Action and to administer the Settlement.

 

(j)
“Class Distribution Order” means an order entered by the Court authorizing and directing that the Net Settlement Fund be
distributed, in whole or in part, to Authorized Claimants.

 

    4

     

    

 

(k)
“Class Period” means the period of time from April 13, 2020 through April 17, 2020, inclusive.

 

(l)
“Class Settlement Shares” means the Settlement Shares less any shares awarded to Plaintiff’s Counsel as attorneys’
fees and expenses.

 

(m)
“Complaint” means the Consolidated Class Action Complaint for Violation of Federal Securities Laws filed in the Action on
October 19, 2020.

 

(n)
“Court” means the United States District Court for the Southern District of New York.

 

(o)
“Defendants” means SCWorx and Marc S. Schessel.

 

(p)
“Defendants’ Counsel” means, collectively, the law firms of King & Spalding LLP (on behalf of Defendant Schessel)
and the Law Offices of Carole R. Bernstein, Esq. (on behalf of Defendant SCWorx).

 

(q)
“Defendant Releasees” means (i) Defendants and their attorneys; (ii) the Defendants’ respective Immediate Family members,
heirs, trusts, trustees, executors, estates, administrators, beneficiaries, agents, affiliates, insurers and reinsurers, predecessors,
predecessors- in-interest, successors, successors-in-interest, assigns, advisors and associates of each of the foregoing; and (iii) all
current and former officers, directors and employees of SCWorx, in their capacities as such.

 

(r)
“Effective Date” with respect to the Settlement means the first date by which all of the events and conditions specified
in ¶ 31 of this Stipulation have been met and have occurred or have been waived.

 

(s)
“Escrow Account” means an account maintained at Valley National Bank wherein the Cash Settlement Amount shall be deposited
and held in escrow under the control of Lead Counsel.

 

(t)
“Escrow Agent” means Valley National Bank.

 

(u)
“Escrow Agreement” means the agreement between Lead Counsel and the Escrow Agent setting forth the terms under which the
Escrow Agent shall maintain the Escrow Account.

 

(v)
“Final,” with respect to the Judgment or, if applicable, the Alternative Judgment, or any other court order means: (i) if
no appeal is filed, the expiration date of the time provided for filing or noticing of any appeal under the Federal Rules of Appellate
Procedure, i.e., thirty (30) days after entry of the Judgment or order; or (ii) if there is an appeal from the Judgment or order,
(a) the date of final dismissal of all such appeals, or the final dismissal of any proceeding on certiorari or otherwise, or (b) the
date the Judgment or order is finally affirmed on an appeal, the expiration of the time to file a petition for a writ of certiorari or
other form of review, or the denial of a writ of certiorari or other form of review, and, if certiorari or other form of review is granted,
the date of final affirmance following review pursuant to that grant. However, any appeal or proceeding seeking subsequent judicial review
pertaining solely to an order issued with respect to: (i) attorneys’ fees, costs or expenses; or (ii) the plan of allocation for
the Settlement proceeds (as submitted or subsequently modified), shall not in any way delay or preclude the Judgment or, if applicable,
the Alternative Judgment, from becoming Final.

 

(w)
“Immediate Family” means children, stepchildren, grandchildren, parents, stepparents, grandparents, spouses, siblings, mothers-in-law,
fathers-in-law, sons-in-law, daughters-in-law, brothers-in-law, and sisters-in-law. As used in this definition, “spouse”
shall mean a husband, a wife, or a partner in a state recognized domestic relationship or civil union.

 

(x)
“Judgment” means the final judgment with dismissal and with prejudice, substantially in the form attached hereto as Exhibit
B, to be entered by the Court approving the Settlement.

 

(y)
“Lead Counsel” means the law firm of Kaplan Fox & Kilsheimer LLP.

 

(z)
“Lead Plaintiff” means Vy Nguyen.

 

    5

     

    

 

(aa)
“Litigation Expenses” means the costs and expenses incurred by Plaintiff’s Counsel in connection with commencing, prosecuting
and settling the Action (which may include the costs and expenses of Lead Plaintiff directly related to his representation of the Settlement
Class), for which Plaintiff’s Counsel intends to apply to the Court for reimbursement from the Cash Settlement Fund.

 

(bb)
“Net Settlement Fund” means the Settlement Fund less: (i) any Taxes and Tax Expenses; (ii) any Notice and Administration
Costs; (iii) any Litigation Expenses awarded by the Court; and (iv) any attorneys’ fees awarded by the Court.

 

(cc)
“Notice” means the Notice of (i) Pendency of Class Action and Proposed Settlement; (ii) Motion for an Award of Attorneys’
Fees and Reimbursement of Litigation Expenses; and (iii) Settlement Fairness Hearing, substantially in the form attached hereto as Exhibit
A-(i), which is to be mailed or e-mailed to Settlement Class Members.

 

(dd)
“Notice and Administration Costs” means the costs, fees and expenses that are incurred by the Claims Administrator and/or
Lead Counsel in connection with: (i) providing notices to the Settlement Class; and (ii) administering the Settlement, including but
not limited to the Claims process, as well as the costs, fees and expenses incurred in connection with the Escrow Account.

 

(ee)
“Parties” means Defendants and Lead Plaintiff, on behalf of himself and the Settlement Class.

 

(ff)
“Plaintiff Releasees” means (i) Lead Plaintiff, his attorneys and all other Settlement Class Members; (ii) the current and
former parents, affiliates, subsidiaries, successors, predecessors, assigns, and assignees of each of the foregoing in (i); and (iii)
the current and former officers, directors, Immediate Family members, heirs, trusts, trustees, executors, estates, administrators, beneficiaries,
agents, affiliates, insurers, reinsurers, predecessors, predecessors-in- interest, successors, successors-in-interest, assigns and advisors
of each of the persons or entities listed in (i) and (ii), in their capacities as such.

 

(gg)
“Plaintiff’s Counsel” means Lead Counsel.

 

(hh)
“Plan of Allocation” means the proposed plan set forth in the Notice to be utilized for determining the allocation of the
Net Settlement Fund, as submitted or subsequently modified.

 

(ii)
“Preliminary Approval Order” means the order, substantially in the form attached hereto as Exhibit A, to be entered by the
Court preliminarily approving the Settlement and directing that notice of the Settlement be provided to the Settlement Class.

 

(jj)
“PSLRA” means the Private Securities Litigation Reform Act of 1995, 15 U.S.C. § 78u-4, as amended.

 

(kk)
“Released Claims” means all Released Defendants’ Claims and all Released Plaintiffs’ Claims.

 

(ll)
“Released Defendants’ Claims” means all claims and causes of action of every nature and description, whether known
claims or Unknown Claims, whether arising under federal, state, local, common, statutory, administrative or foreign law, or any other
law, rule or regulation, at law or in equity, whether class or individual in nature, whether accrued or unaccrued, whether liquidated
or unliquidated, whether matured or unmatured, that arise out of or relate in any way to the institution, prosecution, or settlement
of the claims against Defendants. “Released Defendants’ Claims” do not include any claims relating to the enforcement
of the Settlement.

 

    6

     

    

 

(mm)
“Released Plaintiffs’ Claims” means any and all rights, debts, demands, claims and causes of action or liabilities
(including but not limited to any claims for damages, restitution, rescission, interest, attorneys’ fees, expert or consulting
fees, and any other costs expenses or liability whatsoever) of every nature and description, whether known claims or Unknown Claims,
whether based on or arising under federal, state, local, common, statutory, administrative or foreign law, or any other law, rule or
regulation, at law or in equity, whether class or individual in nature, whether accrued or unaccrued, whether liquidated or unliquidated,
whether matured or unmatured, that Lead Plaintiff or any other member of the Settlement Class: (i) asserted in the Action or (ii) could
have asserted in any court or forum that arise out of or are based upon the allegations, transactions, facts, matters or occurrences,
representations, or omissions set forth in the Action and that relate to the purchase of SCWorx common stock on the Nasdaq or other U.S.
exchanges or in a U.S. transaction during the Class Period, including, without limitation, claims that arise out of or relate to any
disclosures, SEC filings, press releases, or other public statements by or on behalf of SCWorx during the Class Period. “Released
Plaintiffs’ Claims” do not include (i) any claims relating to the enforcement of the Settlement; (ii) any of the claims asserted
in the following actions: In re SCWorx Corp. Derivative Litig., No. 20-cv-4554- JGK (S.D.N.Y.); Zarins v. Schessel, et. al.,
C.A. No. 2020-0924-MTZ (Del. Ch.); or (iii) any claims of any person or entity that submits a request for exclusion from the Settlement
Class that is accepted by the Court.

 

(nn)
“Releasee(s)” means each and any of the Defendant Releasees and each and any of the Plaintiff Releasees.

 

(oo)
“Releases” means the releases set forth in ¶¶ 4-6 of this Stipulation. (pp) “Schessel” refers to Defendant
Marc S. Schessel.

 

(qq)
“Schessel Shares” means one hundred thousand (100,000) shares of the SCWorx common stock owned by Schessel, to be paid as
part of the Settlement consideration in accordance with ¶ 8 below.

 

(rr)
“SCWorx” or the “Company” means Defendant SCWorx Corporation.

 

(ss)
“Settlement” means the settlement between Lead Plaintiff and Defendants on the terms and conditions set forth in this Stipulation.

 

(tt)
“Settlement Amount” means a total consideration of no less than Three Million Three Hundred Thousand Dollars ($3,300,00.00)
and consisting of: (1) the Cash Settlement Amount (i.e., Two Million Seven Hundred Thousand Dollars ($2,700,000.00)), (2) the Settlement
Shares (i.e., the number of shares of SCWorx common stock that equates to a value of Six Hundred Thousand Dollars ($600,000.00)), and
(3) the Schessel Shares (i.e., an additional one hundred thousand (100,000) shares of SCWorx common stock at then-current market value).

 

(uu)
“Settlement Class” means all persons or entities who purchased or otherwise acquired SCWorx common stock on the Nasdaq or
other U.S. exchanges or in a U.S. transaction between April 13, 2020 and April 17, 2020, inclusive. Excluded from the Settlement Class
are: (i) Defendants; (ii) members of the immediate family of any Defendant who is an individual; (iii) any person who was an officer
or director of SCWorx during the Class Period; (iv) any firm, trust, corporation, or other entity in which any Defendant has or had a
controlling interest; (v) SCWorx’s employee retirement and benefit plan(s) and their participants or beneficiaries, to the extent
they made purchases through such plan(s); and (vi) the legal representatives, affiliates, heirs, successors-in-interest, or assigns of
any such excluded person.

 

(vv)
“Settlement Class Member” means each person and entity who or which is a member of the Settlement Class.

 

(ww)
“Settlement Fairness Hearing” means the hearing set by the Court under Rule 23(e)(2) of the Federal Rules of Civil Procedure
to consider final approval of the Settlement.

 

(xx)
“Settlement Fund” means the Settlement Amount plus any and all interest earned thereon while in escrow.

 

(yy)
“Settlement Shares” means the number of shares of SCWorx common stock that equates to a value of at least Six Hundred Thousand
Dollars ($600,000.00) as determined in accordance with ¶ 8(c) of this Stipulation.

 

    7

     

    

 

(zz)
“Summary Notice” means the Summary Notice of (i) Pendency of Class Action and Proposed Settlement; (ii) Motion for an Award
of Attorneys’ Fees and Reimbursement of Litigation Expenses; and (iii) Settlement Fairness Hearing, substantially in the form attached
hereto as Exhibit A-(iii), to be published as set forth in the Preliminary Approval Order.

 

(aaa)
“Taxes” means: (i) all federal, state, and/or local taxes of any kind (including any estimated taxes, interest or penalties
thereon) arising with respect to any income earned by the Settlement Fund, including any taxes or tax detriments that may be imposed
upon the Releasees or their counsel with respect to any income earned by the Settlement Fund for any period after the deposit of the
Cash Settlement Amount in the Escrow Account during which the Settlement Fund does not qualify as a “qualified settlement fund”
for federal or state income tax purposes; and (ii) all taxes imposed on payments by the Settlement Fund, including withholding taxes.

 

(bbb)
“Tax Expenses” means the expenses and costs incurred by Lead Counsel in connection with determining the amount of, and paying,
any taxes owed by the Settlement Fund (including, without limitation, expenses of tax attorneys and/or accountants and mailing and distribution
costs and expenses relating to filing (or failing to file) tax returns for the Settlement Fund).

 

(ccc)
“Unknown Claims” means any Released Plaintiffs’ Claims which Lead Plaintiff or any other Settlement Class Member does
not know or suspect to exist in his, her or its favor at the time of the release of such claims, and any Released Defendants’ Claims
which any Defendant does not know or suspect to exist in his or its favor at the time of the release of such claims, which, if known
by him, her or it, might have affected his, her or its decision(s) with respect to this Settlement, including, but not limited to, whether
or not to object to the Settlement or to the release of the Released Claims. With respect to any and all Released Claims, the Parties
stipulate and agree that, upon the Effective Date of the Settlement, Lead Plaintiff and Defendants shall expressly waive, and each of
the Settlement Class Members shall be deemed to have, and by operation of the Judgment or the Alternative Judgment, if applicable, shall
have, expressly waived, the provisions, rights, and benefits conferred by any law of any state or territory of the United States, or
principle of common law or foreign law, which is similar, comparable, or equivalent to California Civil Code §1542, which provides:

 

A
GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR OR RELEASING PARTY DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR
AT THE TIME OF EXECUTING THE RELEASE AND THAT, IF KNOWN BY HIM OR HER, WOULD HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE
DEBTOR OR RELEASED PARTY.

 

The
Parties acknowledge that they may hereafter discover facts in addition to or different from those which he, she or it or their counsel
now knows or believes to be true with respect to the subject matter of the Released Claims, but, upon the Effective Date, Lead Plaintiff
and Defendants shall expressly settle and release, and each of the other Settlement Class Members shall be deemed to have, and by operation
of the Judgment or the Alternative Judgment, if applicable, shall have, settled and released, any and all Released Claims without regard
to the subsequent discovery or existence of such different or additional facts. Lead Plaintiff and Defendants acknowledge, and each of
the other Settlement Class Members shall be deemed by operation of the Judgment or the Alternative Judgment, if applicable, to have acknowledged,
that the foregoing waiver was separately bargained for and is a key element of the Settlement of which this release is a part.

 

    8

     

    

 

PRELIMINARY
APPROVAL OF SETTLEMENT

 

2.
Promptly upon execution of this Stipulation, Lead Plaintiff will move for preliminary approval of the Settlement and the scheduling of
a hearing for consideration of, inter alia, final approval of the Settlement and Lead Counsel’s application for an award
of attorneys’ fees and reimbursement of Litigation Expenses. Concurrently with the motion for preliminary approval, Lead Plaintiff
shall apply to the Court for entry of the Preliminary Approval Order, substantially in the form attached hereto as Exhibit A.

 

CLASS
CERTIFICATION

 

3.
Solely for the purpose of the Settlement, the Parties hereby stipulate and agree to:

 

(a)
certification of the Action as a class action, pursuant to Rules 23(a) and (b)(3) of the Federal Rules of Civil Procedure, consistent
with the definition of the Settlement Class; (b) appointment of Lead Plaintiff as representative for the Settlement Class; and (c) appointment
of Lead Counsel as Class Counsel pursuant to Rule 23(g) of the Federal Rules of Civil Procedure. Lead Plaintiff will move for entry of
the Preliminary Approval Order, which will certify the Action to proceed as a class action for settlement purposes only. Defendants expressly
reserve the right to contest class certification in the event that the Effective Date does not occur.

 

RELEASE
OF CLAIMS

 

4.
The obligations incurred pursuant to this Stipulation are in consideration of: (i) the full and final disposition of the Action as against
Defendants; and (ii) the Releases provided for herein.

 

5.
Pursuant to the Judgment, or the Alternative Judgment, if applicable, without further action by anyone, upon the Effective Date of the
Settlement, Lead Plaintiff and each of the other Settlement Class Members, on behalf of themselves, and their respective heirs, executors,
administrators, predecessors, successors and assigns in their capacities as such, shall be deemed to have, and by operation of law and
of the Judgment shall have, fully, finally and forever compromised, settled, released, resolved, relinquished, waived, discharged and
dismissed each and every Released Plaintiffs’ Claim against the Defendant Releasees, and shall forever be barred and enjoined from
commencing, instituting, intervening in or participating in, prosecuting or continuing to prosecute any action or other proceeding in
any court of law or equity, arbitration tribunal, or administrative forum, or other forum of any kind or character (whether brought directly,
in a representative capacity, derivatively, or in any other capacity), that asserts any or all of the Released Plaintiffs’ Claims
against any of the Defendant Releasees.

 

6.
Pursuant to the Judgment, or the Alternative Judgment, if applicable, without further action by anyone, upon the Effective Date of the
Settlement, Defendants, on behalf of themselves, and their respective heirs, executors, administrators, predecessors, successors and
assigns in their capacities as such, shall be deemed to have, and by operation of law and of the Judgment shall have, fully, finally
and forever compromised, settled, released, resolved, relinquished, waived and discharged each and every Released Defendants’ Claim
against the Plaintiff Releasees, and shall forever be barred and enjoined from prosecuting any or all of the Released Defendants’
Claims against any of the Plaintiff Releasees.

 

7.
Notwithstanding ¶¶ 4-6 above, nothing in the Judgment, or the Alternative Judgment, if applicable, shall bar any action by
any of the Parties to enforce or effectuate the terms of this Stipulation or the Judgment, or Alternative Judgment, if applicable.

 

THE
SETTLEMENT CONSIDERATION

 

8.
Total Settlement Consideration. In consideration of the full and final settlement of the claims asserted in the Action
against Defendants and the Releases specified in ¶¶ 4-6 above, Defendants shall provide or cause to be provided to the Settlement
Class total consideration of no less than Three Million Three Hundred Thousand Dollars ($3,300,000.00) in value, consisting of the Cash
Settlement Amount (Two Million Seven Hundred Thousand Dollars ($2,700,000.00)), the number of shares of SCWorx common stock that equates
to a value of Six Hundred Thousand Dollars ($600,000.00) (the Settlement Shares), and 100,000 shares of SCWorx common stock at then-current
market value (the Schessel Shares), in the form and manner described below:

 

(a)
Deposit of Cash Settlement Amount. Defendants shall cause a portion of the Cash Settlement Amount equal to Eight Hundred
Six Thousand, Seventy-Three Dollars and Eighty-Six Cents ($806,073.86) to be deposited into the Escrow Account within ten (10) business
days following the Court’s entry of an order granting preliminary approval of the Settlement. Defendants shall cause the remaining
portion of the Cash Settlement Amount equal to One Million, Eight Hundred Ninety-Three Thousand, Nine Hundred Twenty-Six Dollars and
Fourteen Cents ($1,893,926.14) to be deposited into the Escrow Account within ten (10) business days following the effective date of
Defendants’ funding agreement with XL Specialty Insurance Company.2 Lead Counsel will provide to Defendants’ Counsel
all information necessary to effectuate a transfer of funds to the Escrow Account, including the bank name and ABA routing number, account
number, and a signed Form W-9 reflecting the taxpayer identification for the Settlement Fund.

 

 

	2	Lead Counsel has reviewed the funding agreement between Defendants
and XL Specialty Insurance Company and can provide the Court with a copy if the Court wishes to review. Based on the terms of the agreement,
we expect the effective date to occur prior to the Settlement Fairness Hearing under Lead Plaintiff’s proposed schedule.

 

    9

     

    

 

(b)
Delivery of Schessel Shares. Schessel shall cause one hundred thousand (100,000) shares of his holdings of SCWorx common
stock to be transferred to the Escrow Account or such other account as directed by Lead Counsel within ten (10) business days following
the Court’s entry of an order granting preliminary approval of the Settlement. It is understood that the Schessel Shares may be
delivered by the Company on behalf of Schessel. Any fees incurred to (i) register the Schessel Shares in the name of the Authorized Claimants
in accounts maintained by the Company’s transfer agent or (ii) distribute the Schessel Shares to such Authorized Claimant accounts,
including fees charged by the Company’s transfer agent, will be paid from the Escrow Account and will constitute Notice and Administration
Costs.

 

(c)
Terms, Issuance, and Delivery of Settlement Shares. The number of Settlement Shares
that SCWorx will issue will be determined on the date the Court issues the Class Distribution Order, as further described in ¶ 26
below, and will be calculated by dividing Six Hundred Thousand Dollars ($600,000.00) by the volume-weighted average daily adjusted closing
price of SCWorx common stock over the 20 trading days immediately preceding the date of the Class Distribution Order. Further, the total
number of Settlement Shares to be issued will be adjusted to reflect any subdivision or combination in SCWorx common stock by stock splits,
reverse stock splits, reorganization, recapitalization, or other similar transaction beginning with 20th trading day immediately preceding
the date of the Distribution Order through and including the date the Settlement Shares are issued by SCWorx and delivered to Authorized
Claimants.

 

(i)
SCWorx must issue the Settlement Shares within five (5) business days of the Class Distribution Order. SCWorx will be responsible for
the payment of costs associated with the issuance of the Settlement Shares, including without limitation any and all costs associated
with listing the Settlement Shares on Nasdaq (or any other stock exchange or market on which SCWorx’s common stock is then listed
or quoted), provided however that SCWorx shall not be responsible for fees charged by SCWorx’s transfer agent to (i) register the
Settlement Shares in the name of the Authorized Claimants in accounts maintained by the Company’s transfer agent or (ii) distribute
the Settlement Shares from the Company treasury to the Authorized Claimant’s accounts at such transfer agent, all of which costs
will be paid from the Escrow Account and will constitute Notice and Administration Costs.

 

(ii)
The Company will use commercially reasonable efforts to distribute the Settlement Shares to all Authorized Claimants within twenty (20)
days of the Class Distribution Order, but in any case, said Shares will be distributed within thirty (30) days of the Class Distribution
Order. No Authorized Claimant shall, during any of the four weekly periods immediately following the Distribution of the Settlement Shares,
sell or transfer more than twenty- five percent (25%) per week of the total number of Settlement Shares received. Lead Counsel shall
notify each Authorized Claimant in writing of the foregoing limitation. For the avoidance of doubt, If an Authorized Claimant is entitled
to 5,000 Settlement Shares pursuant to the Class Distribution Order, then such Authorized Claimant may not sell more than 1,250 of such
Settlement Shares during any of the four weekly periods immediately following the distribution of the Settlement Shares. Except as otherwise
expressly provided in Section 8(c)(i), all costs associated with (i) registering the Settlement Shares and the Schessel Shares in the
name of the Authorized Claimants in accounts maintained by the Company’s transfer agent or (ii) distributing the Settlement Shares
and the Schessel Shares from the Company treasury and Schessel, respectively, to Authorized Claimants accounts at the Company’s
transfer agent (including any costs incurred by SCWorx’s transfer agent) will be paid from the Escrow Account and will constitute
Notice and Administration Costs.

 

(iii)
All Settlement Shares will be duly and validly issued, fully-paid, non-assessable, free from all liens and encumbrances, complaint with
any applicable state securities laws, rules, or regulations (“State Blue Sky Laws”), and free of any restrictions on transfer
in accordance with the exemption from registration contained in Section 3(a)(10) of the Securities Act of 1933, 15 U.S.C. § 77c(a)(10).
In order to qualify for the exemption provided by Section 3(a)(l0) of the Securities Act, the Settling Parties and their counsel will
take all steps necessary to ensure that each of the following conditions will be satisfied: (i) Settlement Class Members shall be given
adequate notice of the Settlement Hearing; (ii) the Settlement Hearing shall be open to all Settlement Class Members; (iii) there shall
be no improper impediments to the appearance by any Settlement Class Member at the Settlement Hearing; (iv) the Court shall be advised
before the Settlement Hearing that SCWorx will rely on the Section 3(a)(10) exemption based on the Court’s approval of the issuance of
the Settlement Shares as part of the consideration provided in exchange for the settlement and release of the claims asserted in the
Action; (v) the Settlement Hearing shall include consideration of the fairness of the terms and conditions of the issuance of the Settlement
Shares in exchange for the settlement and release of the claims asserted in the Action; and (vi) the order to be entered by the Court
shall approve the fairness to the Settlement Class Members of the terms and conditions of the exchange of the issuance of the Settlement
Shares for the settlement and release of the claims asserted in the Action.

 

    10

     

    

 

(iv)
No later than the date of issuance of the Settlement Shares, SCWorx must confirm to Lead Counsel that it has received the written opinion
of counsel, at no cost to the Settlement Class, the Settlement Fund, or Plaintiff’s Counsel, substantially to the effect that the
issuance, delivery and subsequent distribution of Settlement Shares to Authorized Claimants is exempt from registration under the Securities
Act under Section 3(a)(l0) of that Act (the “3(a)(l0) Opinion”). SCWorx understands that SCWorx’s transfer agent and
Lead Counsel may rely on the representation that SCWorx has obtained the 3(a)(l0) Opinion.

 

(v)
Notwithstanding any of the foregoing, SCWorx may, at its option, choose to pay all or part of the $600,000.00 Settlement Shares value
in cash of the same value. If SCWorx chooses to pay any portion of the Settlement Shares in cash, it will deposit that amount in the
Escrow Account within ten (10) calendar days after the Class Distribution Order.

 

USE
OF SETTLEMENT FUND

 

9.
The Settlement Fund shall be used to pay: (a) any Taxes and Tax Expenses; (b) any Notice and Administration Costs; (c) any Litigation
Expenses awarded by the Court; and (d) any attorneys’ fees awarded by the Court. The balance remaining in the Settlement Fund,
that is, the Net Settlement Fund, shall be distributed to Authorized Claimants as provided in ¶¶ 18-29 of this Stipulation,
or as otherwise ordered by the Court.

 

10.
Except as provided herein or pursuant to orders of the Court, the Net Settlement Fund shall remain in the Escrow Account prior to the
Effective Date. All funds held by the Escrow Agent shall be deemed to be in the custody of the Court and shall remain subject to the
jurisdiction of the Court until such time as the funds shall be distributed or returned pursuant to the terms of this Stipulation or
further order of the Court. At the written direction of Lead Counsel, the Escrow Agent shall invest any funds in the Escrow Account exclusively
in instruments or accounts backed by the full faith and credit of the United States Government or fully insured by the United States
Government or an agency thereof, including a United States Treasury Fund or a bank account that is either (a) fully insured by the Federal
Deposit Insurance Corporation (“FDIC”) or (b) secured by instruments backed by the full faith and credit of the United States
Government. The Escrow Agent shall reinvest the proceeds of these instruments or accounts as they mature in similar instruments or accounts
at their then-current market rates.

 

11.
The Escrow Agent shall not disburse the Settlement Fund except as provided in this Stipulation or as otherwise ordered by the Court.
The Parties agree that the Settlement Fund is intended to be a Qualified Settlement Fund within the meaning of Treasury Regulation §
1.468B- 1 and that Lead Counsel, as administrator of the Settlement Fund within the meaning of Treasury Regulation § 1.468B-2(k)(3),
shall be solely responsible for filing or causing to be filed all informational and other tax returns as may be necessary or appropriate
(including, without limitation, the returns described in Treasury Regulation § 1.468B-2(k)) for the Settlement Fund. Lead Counsel
shall also be responsible for causing payment to be made from the Settlement Fund of any Taxes or Tax Expenses owed with respect to the
Settlement Fund. Upon written request, the Company will provide to Lead Counsel the statement described in Treasury Regulation §
1.468B-3(e). Lead Counsel, as administrator of the Settlement Fund within the meaning of Treasury Regulation § 1.468B-2(k)(3), shall
timely make such elections as are necessary or advisable to carry out this paragraph, including, as necessary, making a “relation
back election,” as described in Treasury Regulation § 1.468B-1(j), to cause the Qualified Settlement Fund to come into existence
at the earliest allowable date, and shall take or cause to be taken all actions as may be necessary or appropriate in connection therewith.

 

12.
All Taxes and Tax Expenses shall be paid out of the Settlement Fund. Taxes and Tax Expenses shall be timely paid by the Escrow Agent
pursuant to the disbursement instructions to be set forth in the Escrow Agreement, and without further order of the Court, and Lead Counsel
shall be authorized (notwithstanding anything herein to the contrary) to withhold from distribution to Authorized Claimants any funds
necessary to pay such amounts, including the establishment of adequate reserves for any Taxes and Tax Expenses (as well as any amounts
that may be required to be withheld under Treas. Reg. §1.468B-2(l)(2)). The Parties hereto agree to cooperate with the Escrow Agent,
each other, and their tax attorneys and accountants to the extent reasonably necessary to carry out the provisions of ¶¶ 11
and 12 of this Stipulation.

 

13.
The Settlement is not a claims-made settlement. Upon the occurrence of the Effective Date, no Defendant, Defendant Releasee, or any other
person or entity who or which paid any portion of the Settlement Amount shall have any right to the return of the Settlement Fund or
any portion thereof for any reason whatsoever, including without limitation, the number of Claim Forms submitted, the collective amount
of Recognized Claims of Authorized Claimants, the percentage of recovery of losses, or the amounts to be paid to Authorized Claimants
from the Net Settlement Fund.

 

    11

     

    

 

14.
Prior to the Effective Date of the Settlement, Lead Counsel may pay from the Escrow Account, without further approval from Defendants
or further order of the Court, all Notice and Administration Costs actually incurred and paid or payable. Such costs and expenses shall
include, without limitation, the actual costs of printing and mailing the Notice and Claim Form, publishing the Summary Notice, reimbursements
to nominee owners for forwarding the Notice and Claim Form to their beneficial owners, the administrative expenses incurred and fees
charged by the Claims Administrator in connection with providing notice, administering the Settlement (including processing submitted
Claims), and the fees, if any, of the Escrow Agent. In the event that the Settlement is terminated pursuant to the terms of this Stipulation,
all Notice and Administration Costs paid or incurred, including any related fees, shall not be returned or repaid to Defendants, any
of the other Defendant Releasees or any other person or entity who or which paid any portion of the Settlement Amount.

 

ATTORNEYS’
FEES AND LITIGATION EXPENSES

 

15.
Lead Counsel will apply to the Court for an award of attorneys’ fees to Plaintiff’s Counsel to be paid from (and out of)
the Settlement Fund. Lead Counsel also will apply to the Court for reimbursement of Plaintiff’s Counsel’s Litigation Expenses,
which may include a request for reimbursement of Lead Plaintiff’s costs and expenses directly related to its representation of
the Settlement Class, to be paid from (and out of) the Settlement Fund. Lead Counsel’s application for an award of attorneys’
fees and/or Litigation Expenses is not the subject of any agreement between Defendants and Lead Plaintiff other than what is set forth
in this Stipulation.

 

16.
Plaintiff’s Counsel will seek attorneys’ fees of no more than 25% of the Settlement Fund, Settlement Shares, and Schessel
Shares, plus Litigation Expenses. The portion of any attorneys’ fees and Litigation Expenses awarded by the Court that are to be
paid to Plaintiff’s Counsel from (and out of) the Cash Settlement Fund shall be paid upon the Effective Date of the Settlement,
and the portion of any such attorneys’ fees and Litigation Expenses awarded that are to be paid from (and out of) the Settlement
Shares and the Schessel Shares shall be paid at the time of the Class Distribution Order, notwithstanding the existence of any timely
filed objections thereto, or potential for appeal therefrom, or collateral attack on the Settlement or any part thereof, subject to Plaintiff’s
Counsel’s obligation to make appropriate refunds or repayments to the Settlement Fund, plus accrued interest at the same net rate
as is earned by the Settlement Fund, if the Settlement is terminated pursuant to the terms of this Stipulation or if, as a result of
any appeal or further proceedings on remand, or successful collateral attack, the award of attorneys’ fees and/or Litigation Expenses
is reduced or reversed and such order reducing or reversing the award has become Final. Plaintiff’s Counsel shall make the appropriate
refund or repayment in full no later than thirty (30) calendar days after: (a) receiving from Defendants’ Counsel notice of the
termination of the Settlement; or (b) any order reducing or reversing the award of attorneys’ fees and/or Litigation Expenses has
become Final.

 

17.
The procedure for, the allowance or disallowance of, and the amount of any attorneys’ fees and/or Litigation Expenses are not necessary
terms of this Stipulation, are not conditions of the Settlement embodied herein, and shall be considered separately from the Court’s
consideration of the fairness, reasonableness, and adequacy of the Settlement. Neither Lead Plaintiff nor Lead Counsel may cancel or
terminate the Settlement based on this Court’s or any appellate court’s ruling with respect to attorneys’ fees and/or
Litigation Expenses, and any appeal from any order awarding attorneys’ fees and/or Litigation Expenses or any reversal or modification
of any such order shall not affect or delay the finality of the Judgment.

 

NOTICE
AND SETTLEMENT ADMINISTRATION

 

18.
As part of the Preliminary Approval Order, Lead Plaintiff shall seek appointment of the Claims Administrator. The Claims Administrator
shall administer the Settlement, including but not limited to the process of receiving, reviewing and approving or denying Claims, under
Lead Counsel’s supervision and subject to the jurisdiction of the Court. Other than Defendants’ obligations pursuant to ¶¶
8 and 19, none of Defendants, nor any of the other Defendant Releasees, shall have any involvement in or any responsibility, authority
or liability whatsoever for the selection of the Claims Administrator, the Plan of Allocation, the administration of the Settlement,
the Claims process, or disbursement of the Net Settlement Fund, and shall have no liability whatsoever to any person or entity, including,
but not limited to, Lead Plaintiff, any other Settlement Class Members or Plaintiff’s Counsel in connection with the foregoing.
Defendants’ Counsel shall cooperate in the administration of the Settlement to the extent reasonably necessary to effectuate its
terms.

 

19.
In accordance with the terms of the Preliminary Approval Order to be entered by the Court, Lead Counsel shall cause the Claims Administrator
to mail, or email, the Notice and Claim Form to those members of the Settlement Class as may be identified through reasonable effort.
Lead Counsel shall also cause the Claims Administrator to have the Summary Notice published in accordance with the terms of the Preliminary
Approval Order to be entered by the Court. For the purposes of identifying and providing notice to the Settlement Class, within five
(5) business days after the Court’s entry of the Preliminary Approval Order, the Company shall provide to Lead Counsel or the Claims
Administrator, at no cost to the Settlement Fund, Lead Plaintiff or the Settlement Class, Plaintiff’s Counsel or the Claims Administrator,
shareholder lists of purchasers of record (consisting of names and addresses, as well as e-mail addresses if available) during the Class
Period in electronic format, such as Excel.

 

    12

     

    

 

20.
The Claims Administrator shall receive Claims and determine first, whether the Claim is a valid Claim, in whole or in part, and second,
each Authorized Claimant’s pro rata share of the Net Settlement Fund as calculated pursuant to the proposed Plan of Allocation
set forth in the Notice attached hereto as Exhibit A-(i) (or such other plan of allocation as the Court approves).

 

21.
The Plan of Allocation proposed in the Notice is not a necessary term of the Settlement or of this Stipulation, and it is not a condition
of the Settlement or of this Stipulation that any particular plan of allocation be approved by the Court. Lead Plaintiff and Lead Counsel
may not cancel or terminate the Settlement (or this Stipulation) based on this Court’s or any appellate court’s ruling with
respect to the Plan of Allocation or any other plan of allocation approved in this Action. Defendants and the other Defendant Releasees
shall not object in any way to the Plan of Allocation or any other plan of allocation in this Action. No Defendant, nor any other Defendant
Releasees, shall have any involvement with or liability, obligation or responsibility whatsoever for the application of the Court-approved
plan of allocation.

 

22.
Any Settlement Class Member who does not submit a valid Claim Form will not be entitled to receive any distribution from the Net Settlement
Fund, but will otherwise be bound by all of the terms of this Stipulation and Settlement, including the terms of the Judgment or, the
Alternative Judgment, if applicable, to be entered in the Action and the Releases provided for herein and therein, and will be permanently
barred and enjoined from bringing any action, claim, or other proceeding of any kind against the Defendant Releasees with respect to
the Released Plaintiffs’ Claims in the event that the Effective Date occurs with respect to the Settlement.

 

23.
Lead Counsel shall be responsible for supervising the administration of the Settlement and the disbursement of the Net Settlement Fund
subject to Court approval. No Defendant, or any other Defendant Releasees, shall be permitted to review, contest or object to any Claim,
or any decision of the Claims Administrator or Lead Counsel with respect to accepting or rejecting any Claim, nor shall any Defendant
Releasee have any responsibility for, interest in, or liability for any decision. Lead Counsel shall have the right, but not the obligation,
to waive what it deems to be formal or technical defects in any Claims submitted in the interests of achieving substantial justice.

 

24.
For purposes of determining the extent, if any, to which a Settlement Class Member shall be entitled to be treated as an Authorized Claimant,
the following conditions shall apply:

 

(a)
Each Claimant shall be required to submit a Claim in paper form, substantially in the form attached hereto as Exhibit A-(ii), or in electronic
form, in accordance with the instructions for the submission of such Claims, and supported by such documents as are designated therein,
including proof of the Claimant’s claimed loss, or such other documents or proof as the Claims Administrator or Lead Counsel, in
its discretion, may deem acceptable;

 

(b)
All Claims must be submitted by the date set by the Court in the Preliminary Approval Order and specified in the Notice, unless extended
by the Court. Any Settlement Class Member who fails to submit a Claim by such date shall be forever barred from receiving any distribution
from the Net Settlement Fund or payment pursuant to this Stipulation (unless by Order of the Court such Settlement Class Member’s
Claim Form is accepted), but shall in all other respects be bound by all of the terms of this Stipulation and the Settlement, including
the terms of the Judgment or Alternative Judgment, if applicable, and the Releases provided for herein and therein, and will be permanently
barred and enjoined from bringing any action, claim or other proceeding of any kind against any Defendants’ Releasees with respect
to any Released Plaintiffs’ Claim. A Claim Form shall be deemed to be submitted when postmarked, if received with a postmark indicated
on the envelope and if mailed by first-class mail and addressed in accordance with the instructions thereon. In all other cases, the
Claim Form shall be deemed to have been submitted on the date when actually received by the Claims Administrator;

 

(c)
Each Claim shall be submitted to and reviewed by the Claims Administrator who shall determine in accordance with this Stipulation and
the plan of allocation the extent, if any, to which each Claim shall be allowed, subject to review by the Court pursuant to subparagraph
(e) below as necessary;

 

(d)
Claims that do not meet the submission requirements may be rejected in whole or in part by the Claims Administrator. Prior to rejecting
a Claim in whole or in part, the Claims Administrator shall communicate with the Claimant in writing, to give the Claimant the chance
to remedy any curable deficiencies in the Claim Form submitted. The Claims Administrator shall notify, in a timely fashion and in writing,
all Claimants whose Claim the Claims Administrator proposes to reject in whole or in part, setting forth the reasons therefor, and shall
indicate in such notice that the Claimant whose Claim is to be rejected has the right to review by the Court if the Claimant so desires
and complies with the requirements of subparagraph (e) below; and

 

    13

     

    

 

(e)
If any Claimant whose Claim has been rejected in whole or in part desires to contest such rejection, the Claimant must, within twenty
(20) days after the date of mailing of the notice required in subparagraph (d) above, serve upon the Claims Administrator a notice and
statement of reasons indicating the Claimant’s grounds for contesting the rejection along with any supporting documentation, and
requesting a review thereof by the Court. If a dispute concerning a Claim cannot be otherwise resolved, Lead Counsel shall thereafter
present the request for review to the Court.

 

25.
Each Claimant shall be deemed to have submitted to the jurisdiction of the Court with respect to the Claimant’s Claim, and the
Claim will be subject to investigation and discovery under the Federal Rules of Civil Procedure, provided, however, that such investigation
and discovery shall be limited to that Claimant’s status as a Settlement Class Member and the validity and amount of the Claimant’s
Claim. No discovery shall be allowed on the merits of this Action or of the Settlement in connection with the processing of Claims.

 

26.
Lead Counsel will apply to the Court for a Class Distribution Order: (a) approving the Claims Administrator’s administrative determinations
concerning the acceptance and rejection of the Claims submitted; (b) approving payment of any administration fees and expenses associated
with the administration of the Settlement from the Escrow Account; and (c) if the Effective Date has occurred, directing payment of the
Net Settlement Fund to Authorized Claimants from the Escrow Account.

 

27.
Payment pursuant to the Class Distribution Order shall be final and conclusive against all Settlement Class Members. All Settlement Class
Members whose Claims are not approved by the Court for payment shall be barred from participating in distributions from the Net Settlement
Fund, but otherwise shall be bound by all of the terms of this Stipulation and the Settlement, including the terms of the Judgment or
Alternative Judgment, if applicable, to be entered in this Action and the Releases provided for herein and therein, and will be permanently
barred and enjoined from bringing any action against any and all Defendant Releasees with respect to any and all of the Released Plaintiffs’
Claims.

 

28.
No person or entity shall have any claim against Lead Plaintiff, Plaintiff’s Counsel, the Claims Administrator or any other agent
designated by Lead Counsel, or the Defendant Releasees and their respective counsel, based on any investments, costs, expenses, administration,
allocations, calculations, payments, the withholding of Taxes (including interest and penalties) owed by the Settlement Fund (or any
losses incurred in connection with Taxes owed by the Settlement Fund) or distributions that are made substantially in accordance with
the Stipulation, the plan of allocation approved by the Court, or any order of the Court.

 

29.
All proceedings with respect to the administration, processing and determination of Claims and the determination of all controversies
relating to Claims, including disputed questions of law and fact with respect to the validity of Claims, shall be subject to the jurisdiction
of the Court. All Settlement Class Members, other Claimants, and the Parties to this Settlement expressly waive trial by jury (to the
extent any such right may exist) and any right of appeal or review with respect to such determinations.

 

TERMS
OF THE JUDGMENT

 

30.
If the Settlement contemplated by this Stipulation is approved by the Court, Lead Counsel and Defendants’ Counsel shall request
that the Court enter a Judgment, substantially in the form attached hereto as Exhibit B, including the dismissal with prejudice of all
of the claims asserted against Defendants in this Action.

 

    14

     

    

 

CONDITIONS
OF SETTLEMENT AND EFFECT OF 

DISAPPROVAL, CANCELLATION OR TERMINATION

 

31.
The Effective Date of the Settlement shall be the first date on which all of the following conditions have occurred:

 

(a)
the Court has entered the Preliminary Approval Order, substantially in the form set forth in Exhibit A attached hereto, as required by
¶ 2 above;

 

(b)
the Cash Settlement Amount has been deposited into the Escrow Account in accordance with the provisions of ¶ 8 above;

 

(c)
the Schessel Shares have been delivered in accordance with the provisions of this Stipulation;

 

(d)
the Settlement Shares have been issued and delivered in accordance with the provisions of this Stipulation;

 

(e)
the Company has confirmed to Lead Counsel that it has received the 3(a)(10) Opinion in accordance with the provisions of ¶ 8 above;

 

(f)
Defendants have not exercised their option to terminate the Settlement pursuant to the provisions of this Stipulation;

 

(g)
Lead Plaintiff has not exercised its option to terminate the Settlement pursuant to the provisions of this Stipulation;

 

(h)
the Court has entered Judgment, substantially in the form proposed by the Parties, following notice to the Settlement Class and a hearing,
as prescribed by Rule 23 of the Federal Rules of Civil Procedure; and

 

(i)
the Judgment has become Final and no longer subject to appeal.

 

32.
Upon the occurrence of all of the events referenced in ¶ 31 above, any and all remaining interest or right of Defendants or any
other Defendant Releasee in or to the Settlement Fund, if any, shall be absolutely and forever extinguished and the Releases herein shall
be effective.

 

33.
If (i) any Defendant exercises the right to terminate the Settlement as provided in this Stipulation; (ii) Lead Plaintiff exercises his
right to terminate the Settlement as provided in this Stipulation; (iii) the Court disapproves the Settlement; or (iv) the Effective
Date as to the Settlement otherwise fails to occur, then:

 

(a)
the Settlement (including, without limitation, the Releases provided under the Settlement) shall be deemed null and void;

 

(b)
Lead Plaintiff and Defendants shall revert to their respective positions in the Action as of the date immediately prior to the execution
of the Term Sheet on December 20, 2021;

 

(c)
the terms and provisions of this Stipulation, with the exception of this ¶ 33 and ¶¶ 14, 16, 37 and 57, shall have no
further force and effect with respect to the Parties and shall not be used in the Action or in any other proceeding for any purpose,
and any Judgment, or Alternative Judgment, if applicable, or order entered by the Court in accordance with the terms of this Stipulation
shall be treated as vacated, nunc pro tunc;

 

(d)
within five (5) business days after joint written notification of termination is sent by Defendants’ Counsel and Lead Counsel to
the Escrow Agent, the Cash Settlement Fund (including accrued interest thereon and any funds received by Lead Counsel consistent with
¶ 16 above), less any Notice and Administration Costs actually incurred, paid or payable and less any Taxes and Tax Expenses paid,
due or owing shall be returned by the Escrow Agent to the parties who contributed to the payment of the Cash Settlement Amount as instructed
by Defendants’ Counsel;

 

(e)
within five (5) business days after joint written notification of termination is sent by Defendants’ Counsel and Lead Counsel to
the entity holding any undistributed Settlement Shares and Schessel Shares, any such undistributed Settlement Shares and Schessel Shares
will be returned to SCWorx and Schessel respectively, if applicable;

 

(f)
counsel for the Parties will negotiate in good faith a proposed new scheduling order for the Action; and

 

(g)
attorneys’ fees and Litigation Expenses will be reimbursed by Plaintiffs’ Counsel as provided in ¶ 16 of this Stipulation.

 

    15

     

    

 

34.
It is further stipulated and agreed that Lead Plaintiff, on the one hand, and Defendants (provided Defendants unanimously agree amongst
themselves), on the other hand, shall each have the right to terminate the Settlement and this Stipulation, by providing written notice
of their election to do so (“Termination Notice”) to the other Parties to this Stipulation within thirty (30) days of: (a)
the Court’s final refusal to enter the Preliminary Approval Order in any material respect; (b) the Court’s final refusal
to approve the Settlement or any material part thereof; (c) the Court’s final refusal to enter the Judgment in any material respect
as to the Settlement; (d) the date upon which the Judgment is modified or reversed in any material respect by the United States Court
of Appeals for the Second Circuit or the United States Supreme Court; or (e) the date upon which an Alternative Judgment is modified
or reversed in any material respect by the United States Court of Appeals for the Second Circuit or the United States Supreme Court,
and the provisions of ¶ 33 above shall apply. However, any decision or proceeding, whether in this Court or any appellate court,
with respect to an application for attorneys’ fees or reimbursement of Litigation Expenses or with respect to any plan of allocation
shall not be considered material to the Settlement, shall not affect the finality of any Judgment or Alternative Judgment, if applicable,
and shall not be grounds for termination of the Settlement.

 

35.
In addition to the grounds set forth in ¶ 34 above, Lead Plaintiff shall have the unilateral right to terminate the Settlement if
any of: (i) the Cash Settlement Amount, (ii) the Schessel Shares, or (iii) the Settlement Shares are not paid or delivered in accordance
with ¶ 8 above and the failure is not cured within fourteen (14) calendar days of Lead Plaintiff’s written notice of its election
to terminate.

 

36.
Additionally, although Defendants do not presently intend to file for bankruptcy within 150 days of the date of this Stipulation, in
the event of the entry of a final order of a court of competent jurisdiction determining the transfer of money to the Settlement Fund
or any portion thereof by or on behalf of Defendants to be a preference, voidable transfer, fraudulent transfer or similar transaction
and any portion thereof is required to be returned, and such amount is not promptly deposited into the Settlement Fund by others, then,
at the election of Lead Plaintiff, the Parties shall jointly move the Court to vacate and set aside the Releases given and the Judgment
or Alternative Judgment, if applicable, entered in favor of Defendants and the other Defendant Releasees pursuant to this Stipulation,
in which event the Releases and Judgment, or Alternative Judgment, if applicable, shall be null and void, and the Parties shall be restored
to their respective positions in the litigation as provided in ¶ 33 above. Plaintiff’s Counsel shall promptly return any attorneys’
fees and Litigation Expenses received pursuant to ¶ 16, above, plus accrued interest at the same net rate as is earned by the Settlement
Fund, and any cash amounts in the Settlement Fund (less any Taxes and Tax Expenses paid, due or owing with respect to the Settlement
Fund and less any Notice and Administration Costs actually incurred, paid or payable) shall be returned as provided in ¶ 33 above.

 

NO
ADMISSION OF WRONGDOING

 

37.
Neither this Stipulation (whether or not consummated), including the exhibits hereto and the Plan of Allocation contained therein (or
any other plan of allocation that may be approved by the Court), the negotiations leading to the execution of this Stipulation, nor any
proceedings taken pursuant to or in connection with this Stipulation and/or approval of the Settlement (including any arguments proffered
in connection therewith):

 

(a)
may be (i) offered against any of the Defendant Releasees as evidence of, or construed as, or deemed to be evidence of any presumption,
concession, or admission by any of the Defendant Releasees with respect to the truth of any fact alleged by Lead Plaintiff or the validity
of any claim that was or could have been asserted or the deficiency of any defense that has been or could have been asserted in this
Action or in any other litigation, or of any liability, negligence, fault, or other wrongdoing of any kind of any of the Defendant Releasees
or in any way referred to for any other reason as against any of the Defendant Releasees, in any civil, criminal or administrative action
or proceeding, other than such proceedings as may be necessary to effectuate the provisions of this Stipulation; (ii) offered or received
against any Defendant as evidence of or construed as or deemed to be evidence of any presumption, concession or admission by any Defendant
that any damages were suffered by Plaintiff or the Settlement Class, or anyone else; (iii) offered or received against any Defendant
as evidence of a presumption concession, admission of any fault, misrepresentation, or omission with respect to any statement or written
document approved or made by any Defendant; (iv) offered or received against any Defendant as evidence of a presumption, concession,
or admission of any liability, negligence fault or wrongdoing, or in any way referred to for any other reason as against any of the Parties
to this Stipulation, in any other civil, criminal, or administrative action or proceeding, other than such proceedings as may be necessary
to effectuate the provision of this Stipulation; provided, however, that if this Stipulation is approved by the Court, the Parties may
refer to it to effectuate the releases granted to them hereunder; or (v) construed against Defendants, Plaintiff or the Settlement Class
as an admission or concession that the consideration to be given hereunder represents the amount which could be or would have been recovered
after trial.

 

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(b)
may be offered against any of the Plaintiff Releasees, as evidence of, or construed as, or deemed to be evidence of any presumption,
concession or admission by any of the Plaintiff Releasees that any of their claims are without merit, that any of the Defendant Releasees
had meritorious defenses, that damages recoverable under the Complaint would not have exceeded the Settlement Amount, or with respect
to any liability, negligence, fault or wrongdoing of any kind, or in any way referred to for any other reason as against any of the Plaintiff
Releasees, in any civil, criminal or administrative action or proceeding, other than such proceedings as may be necessary to effectuate
the provisions of this Stipulation; or

 

(c)
may be construed against any of the Releasees as an admission, concession, or presumption that the consideration to be given hereunder
represents the amount which could be or would have been recovered after trial; provided, however, that if this Stipulation is
approved by the Court, the Parties and the Releasees and their respective counsel may refer to it to effectuate the protections from
liability granted hereunder or otherwise to enforce the terms of the Settlement.

 

MISCELLANEOUS
PROVISIONS

 

38.
All of the exhibits attached hereto are hereby incorporated by reference as though fully set forth herein. Notwithstanding the foregoing,
in the event that there exists a conflict or inconsistency between the terms of this Stipulation and the terms of any exhibit attached
hereto, the terms of the Stipulation shall prevail.

 

39.
Pursuant to the Class Action Fairness Act (“CAFA”), 28 U.S.C. § 1715(b)-(c), no later than ten (10) calendar days after
the Stipulation is filed with the Court, Defendants, at their own cost and expense, shall serve proper notice of the proposed Settlement
upon those who are entitled to notice pursuant to CAFA.

 

40.
The Parties intend this Stipulation and the Settlement to be a final and complete resolution of all disputes asserted or which could
be asserted by Lead Plaintiff and any Settlement Class Members against the Defendants’ Releasees with respect to the Released Plaintiffs’
Claims. Accordingly, Lead Plaintiff and its counsel and Defendants and their counsel agree not to assert in any forum that this Action
was brought by Lead Plaintiff or defended by Defendants in bad faith or without a reasonable basis. No party shall assert any claims
of any violation of Rule 11 of the Federal Rules of Civil Procedure, or of 28 U.S.C. Section 1927, or otherwise make any accusation of
wrongful or actionable conduct by any other Party, relating to the institution, prosecution, defense, or settlement of this Action. The
Parties agree that the amounts paid and the other terms of the Settlement were negotiated at arm’s-length and in good faith by
the Parties through a mediation process supervised and conducted by Jed Melnick, Esq. of JAMS, and reflect the Settlement that was reached
voluntarily after extensive negotiations and consultation with experienced legal counsel, who were fully competent to assess the strengths
and weaknesses of their respective clients’ claims or defenses.

 

41.
The terms of the Settlement, as reflected in this Stipulation, may not be modified or amended, nor may any of its provisions be waived
except by a writing signed on behalf of both Lead Plaintiff and Defendants (or their successors-in-interest).

 

42.
Defendants may file the Stipulation and/or the Order and Final Judgment in any action that may be brought against them in order to support
a defense, claim, or counterclaim based on principles of res judicata, collateral estoppel, release and discharge, good faith
settlement, judgment bar or reduction, or any other theory of claim preclusion or issue preclusion or similar defense or counterclaim.
Plaintiff and the Settlement Class understand, acknowledge and agree that Defendants have denied and continue to deny all claims of wrongdoing,
liability and damages alleged in the Action.

 

43.
Except as otherwise provided for herein, all agreements made and orders entered during the course of the Action relating to the confidentiality
of information shall survive this Stipulation.

 

44.
This Stipulation supersedes the Term Sheet dated December 20, 2021.

 

45.
The headings herein are used for the purpose of convenience only and are not meant to have legal effect.

 

46.
Pending approval of the Court of this Stipulation and its exhibits, all proceedings in this Action shall be stayed and all members of
the Settlement Class shall be barred and enjoined from prosecuting any of the Released Plaintiffs’ Claims against any of the Defendant
Releasees.

 

    17

     

    

 

47.
The administration and consummation of the Settlement as embodied in this Stipulation shall be under the authority of the Court, and
the Court shall retain jurisdiction for the purpose of entering orders providing for awards of attorneys’ fees and Litigation Expenses
to Lead Counsel and enforcing the terms of this Stipulation, including the Plan of Allocation (or such other plan of allocation as may
be approved by the Court) and the distribution of the Net Settlement Fund to Settlement Class Members.

 

48.
The waiver by one Party of any breach of this Stipulation by any other Party shall not be deemed a waiver of any other prior or subsequent
breach of this Stipulation.

 

49.
This Stipulation and its exhibits constitute the entire agreement among Lead Plaintiff and Defendants concerning the Settlement. All
Parties acknowledge that no other agreements, representations, warranties, or inducements have been made by any party hereto concerning
this Stipulation or its exhibits other than those contained and memorialized in such documents.

 

50.
This Stipulation may be executed in one or more counterparts, including by signature transmitted via facsimile, or by a .pdf/.tif image
of the signature transmitted via email. All executed counterparts and each of them shall be deemed to be one and the same instrument.

 

51.
This Stipulation shall be binding upon and inure to the benefit of the successors and assigns of the Parties, including any and all Releasees
and any corporation, partnership, or other entity into or with which any party hereto may merge, consolidate or reorganize.

 

52.
The construction, interpretation, operation, effect and validity of this Stipulation, the Supplemental Agreement and all documents necessary
to effectuate the Settlement shall be governed by the internal laws of the State of New York without regard to conflicts of laws, except
to the extent that federal law requires that federal law govern.

 

53.
Any action arising under or to enforce this Stipulation or any portion thereof, shall be commenced and maintained only in the Court.

 

54.
This Stipulation shall not be construed more strictly against one Party than another merely by virtue of the fact that it, or any part
of it, may have been prepared by counsel for one of the Parties, it being recognized that it is the result of arm’s-length negotiations
between the Parties and all Parties have contributed substantially and materially to the preparation of this Stipulation.

 

55.
All counsel and any other person executing this Stipulation and any of the exhibits hereto, or any related Settlement documents, warrant
and represent that they have the full authority to do so and that they have the authority to take appropriate action required or permitted
to be taken pursuant to the Stipulation to effectuate its terms.

 

56.
Lead Counsel and Defendants’ Counsel agree to cooperate fully with one another in seeking Court approval of the Preliminary Approval
Order and the Settlement, as embodied in this Stipulation, and to use best efforts to promptly agree upon and execute all such other
documentation as may be reasonably required to obtain final approval by the Court of the Settlement.

 

57.
If any Party is required to give notice to another party under this Stipulation, such notice shall be in writing and shall be deemed
to have been duly given upon receipt of hand delivery or email transmission, with confirmation of receipt. Notice shall be provided as
follows:

 

	 	If
                                           to Lead Plaintiff or

                                           Lead
                                           Counsel:
	 	Kaplan Fox & Kilsheimer LLP

Attn: Laurence D. King
 1999 Harrison Street, Ste. 1560 
 Oakland, CA 94612
 Telephone: (415) 772-4700
 Facsimile: (415)
772-4707
 Email: lking@kaplanfox.com
	 	 	 	 
	 	If
                               to Defendants or their

                               respective

                               Defendants’
                               Counsel:  
	 	King & Spalding LLP
 Paul R. Bessette 
 500 West
2nd Street Ste. 1800
 Austin, TX 78701
 Telephone: (512) 457-2050
 Facsimile: (512) 457-2100
 Email: pbessette@kslaw.com

 Counsel for Marc S. Schessel
 and 

 

    18

     

    

 

	 	 	 	Law Offices of Carole R. Bernstein,
Esq.

Carole R. Bernstein

41 Maple Avenue North

Westport, Connecticut 06880

Telephone: 203-255-8698

Facsimile: 203-259-4735

Email: cbernsteinesq@gmail.eom

Counsel for SCWorx Corp.

 

58.
Except as otherwise provided herein, each party shall bear its own costs.

 

59.
All agreements 11ade and orders entered during the course of this Action relating to the confidentiality of informaion shall survive
this Settlement.

 

60.
No opinion or advice concerning the tax consequences of the proposed Settlement to individual Settlement Class Members· is being
given or will be given by the Parties or their counsel; nor is any representation or warranty in this regard made by virtue of this Stipulation.
Each Settlement Class Member’s tax obligations, and the determination thereof, are the sole responsibility of the Settlement (;Jass Member,
and it is understood that the tax consequences may vary depending on the particular circumstances of each individual Settlement Class
Member.

 

IN
WITNESS WHEREOF, the Parties hereto have caused this Stipulation to be executed, by their duly authorized attorneys, as of February
11, 2022.

 

	 	KAPLAN FOX & KILSHEIMER LLP
	 	 
	 	/s/ Laurence
D. King
	 	Laurence D. King
	 	1999 Harrison Street, Ste. 1560
	 	Oakland, CA 94612
	 	Telephone: (415) 772-4700
	 	Facsimile: (415) 772-4707
	 	 
	 	Frede1ic S. Fox 
	 	Donald R. Hall 
	 	Melinda D. Campbell
	 	Pamela Mayer

 

    19

     

    

 

PRIVILEGED
AND CONFIDENTIAL

FOR
SETTLEMENT DISCUSSION PURPOSES ONLY

 

	 	KING & SPALDING LLP
	 	 
	 	/s/ Paul
    R. Bessette 
	 	Paul R. Bessette 
	 	Michael J. Biles
	 	500 West 2nd Street Ste. 1800
	 	Austin, TX 78701
	 	Telephone: (512) 457-2050
	 	Facsimile: (512) 457-2100
	 	 
	 	Counsel for Defendant Marc S. Schessel
	 	 
	 	LAW OFFICES OF CAROLE R. BERNSTEIN, ESQ.
	 	 
	 	/s/ Carole
    R. Bernstein
	 	Carole R. Bernstein
	 	41 Maple Avenue North
	 	Westport, Connecticut 06880
	 	203-255-8698
	 	203-259-4735 (fax)
	 	 
	 	New York Office:
	 	178 East 80th Street
	 	Suite 25D
	 	New York, New York 10075
	 	 
	 	Counsel for Defendant SCWorx Corporation

 

    20

     

    

 

	 	850 Third Avenue, 14th Floor
	 	New York, NY 10022
	 	Telephone: (212) 687-1980
	 	Facsimile: (212) 687-7714
	 	 
	 	Lead Counsel for Lead Plaintiff and the Settlement
    Class
	 	 
	 	KING & SPALDING LLP
	 	 
	 	
	 	Paul R. Bessette 
	 	Michael J. Biles
	 	500 West 2nd Street Ste. 1800
	 	Austin, TX 78701
	 	Telephone: (512) 457-2050
	 	Facsimile: (512) 457-2100
	 	 
	 	Counsel for Defendant Marc S. Schessel
	 	 
	 	LAW OFFICES OF CAROLER.
	 	 
	 	BE ZEIN, ESQ.
	 	 
	 	 
	 	Carole Bernstein
	 	41 Maple Avenue North
	 	Westport, Connecticut 06880
	 	203-255-8698
	 	203-259-4735 (fax)
	 	 
	 	New York Office:
	 	178 East 80th Street
	 	 Suite 25D
	 	New York, New York 10075
	 	 
	 	Counsel for Defendant SCWorx Corporation

 

    21

     

    

 

EXHIBIT
A

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     

     

    

 

UNITED
STATES DISTRICT COURT

SOUTHERN
DISTRICT OF NEW YORK

 

	DANIEL
                         YANNES, Individually and on Behalf of All Others Similarly Situated,
	 	 
	 	
	 
	Plaintiff,

	CIVIL
      ACTION NO.: 20-CV-3349-JGK	 
	vs.

	 	 
	 	CLASS ACTION	 
	SCWORX
                                            CORPORATION and MARC S. SCHESSEL,
	 	 
	 	 	 
	Defendants.	 	 

 

ORDER
PRELIMINARILY APPROVING SETTLEMENT AND PROVIDING FOR NOTICE

 

WHEREAS,
this consolidated putative class action (the “Action”) comes before the Court on Lead Plaintiffs Motion for Preliminary Approval
of Settlement (“Motion”) and on the Stipulation and Agreement of Settlement dated February 11, 2022 (“Stipulation”)
entered into by Lead Plaintiff Vy Nguyen (“Lead Plaintiff’), and defendants SCWorx Corporation (“SCWorx” or the
“Company”) and Marc S. Schessel (collectively, “Defendants” and together with Lead Plaintiff, the “Parties”),
by and through their respective counsel;

 

WHEREAS,
the Stipulation sets forth the terms and conditions for the proposed settlement of the Action, and is subject to review under Rule 23
of the Federal Rules of Civil Procedure (“Rule 23”); and

 

WHEREAS,
the Court is familiar with and has reviewed the record in the Action and has reviewed the Motion and the Stipulation, together with the
exhibits attached thereto and incorporated by reference therein, and found good cause for entering the following Order;

 

    2

     

    

 

NOW,
THEREFORE, IT IS HEREBY ORDERED:

 

1.
This order (the “Preliminary Approval Order”) hereby incorporates by reference the definitions in the Stipulation and all
terms used herein shall have the same meanings as set forth in the Stipulation.

 

2.
The Court preliminarily certifies, solely for purposes of effectuating the Settlement, pursuant to Rule 23, a class consisting of all
persons or entities who purchased or otherwise acquired SCWorx common stock on the Nasdaq or other U.S. exchanges or in a U.S. transaction
between April 13, 2020 and April 17, 2020, inclusive. Excluded from the Settlement Class are: (i) Defendants; (ii) members of the immediate
family of any Defendant who is an individual; (iii) any person who was an officer or director of SCWorx during the Class Period; (iv)
any firm, trust, corporation, or other entity in which any Defendant has or had a controlling interest; (v) SCWorx’s. employee
retirement and benefit plan(s) and their participants or beneficiaries, to the extent they made purchases through such plan(s); and (vi)
the legal representatives, affiliates, heirs, successors-in-interest, or assigns of any such excluded person. Also excluded from the
Settlement Class are those persons who timely and validly request exclusion from the Settlement Class pursuant to the Notice of (i) Pendency
of Class Action and Proposed Settlement; (ii) Motion for an Award of Attorneys’ Fees and Reimbursement of Litigation Expenses;
and (iii) Settlement Fairness Hearing (the “Notice”).

 

3.
Pursuant to Rule 23 and for purposes of settlement only, the Court preliminarily certifies Lead Plaintiff as Class Representative for
the Settlement Class and appoints Kaplan Fox & Kilsheimer LLP as Class Counsel for the Settlement Class (“Class Counsel”).
Class Counsel is authorized to act on behalf of the Settlement Class with respect to all acts required by, or which may be undertaken
pursuant to, the Stipulation or such other acts that are reasonably necessary to consummate the proposed Settlement set forth in the
Stipulation.

 

4.
With respect to the Settlement Class, the Court preliminarily finds, solely for purposes of effectuating the Settlement, that the prerequisites
for a class action under Rules 23(a) and (b)(3) have been satisfied. The members of the Settlement Class are so numerous that joinder
of all Settlement Class Members in the class action is impracticable and there are questions of law and fact common to the Settlement
Class which predominate over any individual questions. The claims of Lead Plaintiff are typical of the claims of the Settlement Class
and Lead Plaintiff and its counsel have fairly and adequately represented and protected the interests of all of the Settlement Class
Members. A class action is also superior to other available methods for the fair and efficient adjudication of the controversy, considering:
(a) the interests of the members of the Settlement Class in individually controlling the prosecution of the separate actions; (b) the
extent and nature of any litigation concerning the controversy already commenced by members of the Settlement Class; (c) the desirability
or undesirability of continuing the litigation of these claims in this particular forum; and (d) the difficulties likely to be encountered
in the management of a class action.

 

5.
The Court preliminarily approves: (i) the Settlement of the Action as set forth in the Stipulation, including the releases contained
therein, having found that the Parties have shown the Court that it will likely be able to approve the proposed Settlement under Federal
Rule of Civil Procedure 23(e)(2), and (ii) the proposed Plan of Allocation described in the Notice, subject to the right of any Settlement
Class Member to challenge the fairness, reasonableness, and adequacy of the Settlement, the Stipulation or the proposed Plan of Allocation,
and to show cause, if any exists, why a final judgment dismissing the Action based on the Stipulation should not be ordered herein after
due and adequate notice to the Settlement Class has been given in conformity with this Order.

 

    3

     

    

 

6.
Class Counsel is hereby authorized to retain A.B. Data, Ltd. as the Claims Administrator in connection with the Settlement to supervise
and administer the notice and claims procedures as well as the processing of claims as more fully set forth below:

 

a.
No later than twenty (20) calendar days after entry of this Preliminary Approval Order, the Claims Administrator shall cause a copy of
the Notice and Proof of Claim and Release form (“Claim Form”), substantially in the forms attached hereto as Exhibits A-(i)
and A-(ii), respectively, to be mailed by first class mail, postage prepaid, to all members of the Settlement Class who may be identified
through reasonable effort, including through the cooperation of SCWorx and/or its transfer agents to provide security holder lists as
set forth in the Stipulation (the “Notice Date”);

 

b.
Class Counsel shall cause a summary notice (the “Summary Notice”), substantially in the form attached hereto as Exhibit A-(iii),
to be published once in the national edition of Investor’s Business Daily and over the PR Newswire no later than
ten (10) calendar days after the Notice Date;

 

---
c. - - Class Counsel shall serve on Defendants’ Counsel and file with the Court proof by affidavit or declaration of mailing and
publication not later than seven (7) calendar days before the Final Approval Hearing.

 

d.
Class Counsel shall cause the Notice, the Summary Notice, and the Claim Form to be placed on a website developed for the Settlement and
maintained by the Claims Administrator, on or before the Notice Date.

 

    4

     

    

 

7.
Not later than ten (10) calendar days after the submission of the Stipulation to the Court, Defendants shall serve notice on the
State and Federal officials as required by 28 U.S.C. §1715(b) (“CAFA Notice”). Not later than thirty-five (35)
calendar days before the Settlement Fairness Hearing, Defendants shall file with the Court an affidavit or declaration showing
timely compliance with this CAFA Notice directive.

 

8.
The Court hereby approves the form of Notice and Summary Notice (together, the “Notices”) and the Claim Form, and finds that
the procedures established for publication, mailing and distribution of such Notices substantially in the manner and form set forth in
paragraph 6 of this Preliminary Approval Order meet the requirements of Rule 23, the Constitution of the United States, and the Securities
Exchange Act of 1934, 15 U.S.C. §§ 78 et seq., as amended by the Private Securities Litigation Reform Act of 1995, and
shall constitute the best notice practicable under the circumstances and shall constitute due and sufficient notice to all Settlement
Class Members.

 

9.
The Claims Administrator shall use reasonable efforts to give notice to brokers and other nominees who purchased the publicly-traded
common stock of SCWorx on the Nasdaq, on other U.S. exchanges or in a U.S. transaction for the benefit of another person during the Class
Period. Those brokers and other nominees are directed to either: (i) send the Notice and Claim Form to all such beneficial owners, postmarked
within ten (10) calendar days of receipt of the Notice; or (ii) send a list of the names and addresses of such beneficial owners to the
Claims Administrator within ten (10) calendar days after receipt of the Notice, in which event the Claims Administrator shall mail the
Notice and Claim Form to such beneficial owners within ten (10) calendar days after receipt thereof.

 

    5

     

    

 

10.
Upon full compliance with this Preliminary Approval Order, including the timely mailing of the Notice and Claim Form to beneficial owners,
such nominees may seek reimbursement of their reasonable expenses actually incurred in complying with this Preliminary Approval Order
by providing the Claims Administrator with proper documentation supporting the expenses for which reimbursement is sought and reflecting
compliance with these instructions, including timely mailing of the Notice and Claim Form. Such properly documented expenses incurred
by nominees in compliance with the terms of this Preliminary Approval Order shall be paid from the Settlement Fund in accordance with
the provisions of the Stipulation, subject to further order of this Court with respect to any dispute concerning such compensation.

 

10.
Pursuant to Fed. R. Civ. P. 23(e), a hearing (the “Settlement Fairness Hearing”) shall be held on June 29, 2022, at 2:30
p.m., in the United States District Court for the Southern District of New York, the Honorable John G. Koeltl presiding, for the following
purposes:

 

a.
to determine whether the Court should grant final certification of the Settlement Class pursuant to Fed. R. Civ. P. 23(a) and (b)(3);

 

b.
to determine whether the proposed Settlement of the Action on the terms and conditions provided for in the Stipulation is fair, reasonable,
adequate, and in the best interests of the Settlement Class and should be finally approved by the Court;

 

c.
to determine whether the Plan of Allocation for the Net Settlement Fund --- should be approved by the Court as fair and reasonable; ---

 

d.
to determine whether the Judgment, substantially in the form attached as Exhibit B to the Stipulation, should be entered, inter alia,
dismissing the Action against the Defendants with prejudice and extinguishing and releasing all Released Claims (as defined in the
Stipulation);

 

e.
to consider Lead Counsel’s application for an award of attorneys’ fees and reimbursement of Litigation Expenses;

 

    6

     

    

 

f.
to consider Lead Plaintiff’s application for reimbursement of costs and expenses (including lost wages) in connection with its
representation of the Settlement Class; and

 

g.
to rule on such other matters as the Court may deem appropriate.

 

11.
The Court reserves the right to adjourn the Settlement Fairness Hearing, including the consideration of the application for attorneys’
fees and reimbursement of Litigation Expenses, or to make such modification as may be consented to by the Parties to the Stipulation,
without further notice to the Settlement Class.

 

12.
Any member of the Settlement Class who wishes to object to the Settlement must, at least twenty-one (21) calendar days prior to the Settlement
Fairness Hearing, file with the Court and serve on the Parties (listed below) a written statement of objection to the Settlement, the
Plan of Allocation, or the request for attorneys’ fees and reimbursement of Litigation Expenses in connection with the representation
of the Settlement Class.

 

13.
Any member of the Settlement Class who timely objects to the Settlement, the Plan of Allocation, or the request for attorneys’
fees and reimbursement of Litigation Expenses, or who otherwise wishes to be heard, may appear in person or by and through an attorney,
at his/her/its own expense, at the Settlement Fairness Hearing and present evidence or argument that may be proper or relevant. Such
Settlement Class Member may do so provided that no person other than the Parties and their counsel shall be heard, and no papers, briefs,
pleadings, or other documents submitted by any person shall be considered by the Court, unless within twenty-one (21) calendar days prior
to the Settlement Fairness Hearing, such person files with the Court and serves upon counsel listed below:

 

(1)
the name, address, and telephone number of the person objecting, signed by the objector;

 

    7

     

    

 

(2)
a statement of such person’s objections to any matters before the Court concerning the Settlement and whether the objection applies
only to the objector, to a specific subset of the Settlement Class, or to the entire Settlement Class;

 

(3)
the grounds therefore or the reasons that such person desires to appear and be heard, as well as all documents or writings such person
desires the Court to consider;

 

(4)
whether that person intends to present any witnesses and/or experts, the identity of any such witnesses and/or experts, and the nature
of the witness and/or expert testimony; and

 

(5)
proof of the person’s membership in the Settlement Class, which proof shall include the person’s purchases of SCWorx common
stock during the Class Period and any sales thereof, including the dates, the number of shares, and price(s) paid and received for each
such purchase or sale. Such filings shall be served upon the Court and the following counsel:

 

	
	Frederic
    S. Fox	Carole
    Bernstein
	KAPLAN
    FOX & KILSHEIMER LLP	--LAW
    OFFICES OF CAROLER.
	850
    Third Avenue; 14th Floor	BERNSTEIN
	New
    York, NY 10022	41
    Maple Ave. N.
	(212)
    687-1980	Westport,
                                            CT 06880

    (203)
    259-8698

	 	 
	 	Paul
    R. Bessette
	 	KING
    & SPALDING LLP
	 	500
    West 2nd Street Ste. 1800
	 	Austin,
    TX 78701
	 	(512)
    457-2050

 

    8

     

    

 

Any
person who does not make his, her, or its objection in the manner provided in the Notice shall be deemed to have waived such objection
and shall forever be foreclosed from making any objection to the fairness or adequacy of the proposed Settlement as set forth in the
Stipulation, unless otherwise ordered by the Court. Any papers in response to any such objections shall be served and filed no later
than seven (7) days prior to the Settlement Fairness Hearing.

 

14.
Any person falling within the definition of the Settlement Class may, upon request, be excluded from the Settlement Class. Any such person
must submit to the Claims Administrator a request for exclusion (“Request for Exclusion”) at least twenty-one (21) calendar
days prior to the date of the Settlement Fairness Hearing. To be valid, a Request for Exclusion must state: (1) the name, address, and
telephone number of the person requesting exclusion; (2) the person’s purchases of SCWorx common stock during the Class Period
and any sales thereof, including the dates, the number of shares, and price(s) paid and received for each such purchase or sale; (3)
a clear and unambiguous statement that the person wishes to be excluded from the Settlement Class; and (4) must include the person’s
signature. No further opportunity to request exclusion will be given in this Action. Requests for Exclusion may not be submitted by e-mail,
unless otherwise ordered by the Court.

 

15.
All Settlement Class Members shall be bound by all determinations and judgments in this Action concerning the settlement, including but
not limited to the releases provided for in the Stipulation, whether favorable or unfavorable, except those who are found by the Court
to have timely and validly requested exclusion from the Settlement Class. The persons and entities who request exclusion from the Settlement
Class will be excluded from the Settlement Class and shall have no rights under the Stipulation, shall not be entitled to submit any
Claim Forms, shall not share in the distribution of the Net Settlement Fund as described in the Stipulation and in the Notice, and shall
not be bound by the Stipulation or the Judgment entered as to Defendants in the Action.

 

    9

     

    

 

16.
Any Settlement Class Member who wishes to be eligible to participate in the Net Settlement Fund must timely submit a valid Claim Form
to the Claims Administrator, at the Post Office Box indicated in the Notice, postmarked no later than one hundred and twenty (120) calendar
days following the Notice Date. Such deadline may be extended further by Court order. A Claim Form shall be deemed to have been submitted
when postmarked, if mailed by first class, or registered or certified mail, postage prepaid, addressed in accordance with the instructions
given in the Claim Form. All other Claim Forms shall be deemed to have been submitted at the time they are actually received by the Claims
Administrator. To be valid, a Claim Form must: (1) be completed in a manner that permits the Claims Administrator to determine the eligibility
of the claim as set forth in the Claim Form; (2) include the release by the claimant of all Released Parties as set forth in the Stipulation;
and (3) be signed with an affirmation that the information is true and conect. As part of the Claim Form, each Settlement Class Member
shall submit to the jurisdiction of the Court with respect to the claim submitted and shall, (subject to the effectuation of the Settlement
reflected in the Stipulation), agree and enter into the release as provided in the Stipulation. All Settlement Class Members who do not
submit a valid and timely Claim Form shall be barred forever from receiving any payments from the Net Settlement Fund, but will, in all
other respects, be subject to and bound by the provisions of the Stipulation and the Judgment, if entered, whether favorable or unfavorable
and whether or not they submit a Claim Form, unless such persons request exclusion from the Settlement Class in a timely and proper manner,
as provided herein.

 

17.
If this Settlement, including any amendment made in accordance with the Stipulation, is not approved by the Court or shall not become
effective for any reason whatsoever, the Settlement (including any modification thereof) made with the consent of the Parties as provided
for in the Stipulation, and any actions taken or to be taken in connection therewith (including this Order and any judgment entered herein),
shall be terminated and shall become void and of no further force and effect except as set forth in the Stipulation and will be without
prejudice to any party, and may not be introduced as evidence or referred to in any actions or proceedings by any person or entity. Each
party shall be restored to their respective positions in the litigation immediately prior to the execution of the Stipulation, including
restoration of the Settling Parties’ respective rights to seek or to object to the certification of this litigation as a class
action under Fed. R. Civ. P. 23, or any state or federal rule, statute, law, or provision, and to contest and appeal any grant or denial
of certification in this litigation.

 

18.
All proceedings in the Action, other than such proceedings as may be necessary to carry out the terms and conditions of the Settlement,
are hereby stayed and suspended until further order of this Court. Pending final determination whether the Settlement should be approved,
Lead Plaintiff and all members of the Settlement Class are barred and enjoined from commencing, prosecuting, continuing, instituting,
intervening in or participating in or asserting any action or other proceeding in any court of law or equity, arbitration tribunal, or
administrative forum, or other forum of any kind or character (whether brought directly, in a representative capacity, derivatively,
or in any other capacity),with regards to any of the Released Plaintiff’s Claims against the Defendant Releasees as defined in
the Stipulation.

 

    10

     

    

 

19.
The contents of the Settlement Fund held by the Escrow Agent shall be deemed and considered to be in custodia legis of the Court
and shall remain subject to the jurisdiction of the Court until such time as the Settlement Fund shall be distributed pursuant to the
Stipulation and further order(s) of the Court.

 

20.
Class Counsel, or an agent thereof, is authorized and directed to prepare any tax returns and any other tax reporting for or in respect
of the Settlement Fund and to pay from the Settlement Fund any taxes owed with respect to the Settlement Fund, and to otherwise perform
all obligations with respect to taxes and any reporting or filings in respect thereof as contemplated by the Stipulation, without further
order of the Court. The Court authorizes payment out of the Settlement Fund of notice and administration expenses in accordance with
the Stipulation.

 

21.
This Preliminary Approval Order, the Settlement, the Stipulation, and all negotiations, statements, and proceedings in connection therewith,
shall not, in any event, be construed or deemed to be evidence of an admission or concession on the part of Lead Plaintiff, any Defendant,
any member of the Settlement Class, or any other person, of any liability or wrongdoing of any nature by them, or any of them, and shall
not be offered or received in evidence in any action or proceeding (except an action to enforce the Stipulation and Settlement contemplated
thereby), or be used in any way as an admission, concession, or evidence of any liability or wrongdoing of any nature, and shall not
be construed as, or deemed to be evidence of, an admission or concession that Lead Plaintiff,.any member of the Settlement Class, or
any other person, has or has not suffered any damage.

 

22.
All motions and papers in support of the Settlement, the Plan of Allocation, and the request for an award of attorneys’ fees and
reimbursement of Litigation Expenses, shall be filed and served no later than thirty-five (35) calendar days before the date scheduled
for the Settlement Fairness Hearing, and all reply b1iefs in support of said motions shall be filed and served no later than seven (7)
calendar days prior to the Settlement Fairness Hearing.

 

    11

     

    

 

23.
The Court retains jurisdiction over this Action to consider all further matters arising out of or connected with the Settlement reflected
in the Stipulation, including enforcement of the releases provided for in the Stipulation.

 

IT
IS SO ORDERED.

 

	DATED:

                                               

                                            3/22/22.
	 
		THE HONORABLE JOHN G. KOELTL UNITED STATES DISTRICT COURT
  JUDGE SOUTHERN DISTRICT OF NEW YORK

 

    12

     

    

 

Exhibit
A-(i)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     

     

    

 

UNITED
STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK

 

	DANIEL
                         YANNES, Individually and on Behalf of All Others Similarly Situated,
	 	 
	 	
	 
	Plaintiff,

	CIVIL
      ACTION NO.: 20-CV-3349-JGK	 
	vs.

	 	 
	 	CLASS ACTION	 
	SCWORX
                                            CORPORATION and MARC S. SCHESSEL,
	 	 
	 	 	 
	Defendants.	 	 

 

NOTICE
OF (i) PENDENCY OF CLASS ACTION AND PROPOSED SETTLEMENT; (ii)
MOTION FOR AN AWARD OF ATTORNEYS’ FEES AND REIMBURSEMENT OF LITIGATION EXPENSES; AND
(iii) SETTLEMENT FAIRNESS HEARING

 

A
FEDERAL COURT HAS AUTHORIZED THIS NOTICE. THIS IS NOT A SOLICITATION FROM A LAWYER.

 

NOTICE
OF PENDENCY OF CLASS ACTION AND SETTLEMENT: Please be advised that your rights may be affected by the above-captioned action (“Action”)
pending in the United States District Court for the Southern District of New York (“Court”) if you are a member of the Settlement
Class defined below.1 Please also be advised that the Court-appointed Lead Plaintiff Vy Nguyen (“Lead Plaintiff’),
on behalf of himself and the Settlement Class (as defined below), have reached a proposed Settlement of the Action for a total value
of no less than Three Million Three Hundred Thousand Dollars ($3,300,000.00), consisting of Two Million Seven Hundred Thousand Dollars
($2,700,000.00) in cash and the number of shares of SCWorx common stock that equate to a value of Six Hundred Thousand Dollars ($600,000.00),
plus an additional one hundred thousand (100,000) shares of SCWorx common stock at then-current market values, that, if approved, will
resolve all claims in the Action.

 

PLEASE
READ THIS NOTICE CAREFULLY. It explains important rights you may have, including the possible
receipt of cash from the Settlement. If you are a Settlement Class Member, your legal rights
will be affected whether or not you act.

 

If
you have any questions about this Notice, the proposed Settlement, or your eligibility to participate in the Settlement, please do
not contact Defendants, their counsel, or the Court. All questions should be directed to Lead Counsel or the Claims Administrator.

 

1.
Description of the Action and Settlement Class: This Notice relates to a proposed Settlement of claims in a pending securities
class action lawsuit brought by investors alleging that SCWorx Corporation (“SCWorx” or the “Company”) and its
f01mer chief executive officer, Marc S. Schessel (“Schessel” and, together with SCWorx, “Defendants”) violated
the federal securities laws by misrepresenting and omitting material information concerning a purported deal valued at $840 million to
supply millions of COVID-19 rapid test kits to a virtual healthcare company over the course of 24 weeks. Lead Plaintiff alleged that
these misrepresentations

 

 

		1	All
                                            capitalized terms used in this Notice that are not otherwise defined herein shall have the
                                            meanings provided in the Stipulation and Agreement of Settlement dated February 11, 2022
                                            (the “Stipulation”), which is available on the website for the Settlement at
                                            www.SCWorxSecuritiesLitigation.com. and omissions caused the price of SCWorx’s publicly-traded
                                            common stock to be artificially inflated during the Class Period (April 13, 2020 through
                                            April 17, 2020, inclusive), causing Lead Plaintiffs and the Settlement Class’s damages.
                                            The proposed Settlement, if approved by the Court, will settle all claims of the Settlement
                                            Class in the Action. The “Settlement Class,” as preliminarily certified by the
                                            Court for purposes of settlement only, means all persons or entities who purchased or otherwise
                                            acquired SCWorx common stock on the Nasdaq or other U.S. exchanges or in a U.S. transaction
                                            between April 13, 2020 and April 17, 2020, inclusive. Excluded from the Settlement Class
                                            are: (i) Defendants; (ii) members of the immediate family of any Defendant who is an individual;
                                            (iii) any person who was an officer or director of SCWorx during the Class Period; (iv) any
                                            fnm, trust, corporation, or other entity in which any Defendant has or had a controlling
                                            interest; (v) SCWorx’s employee retirement and benefit plan(s) and their participants
                                            or beneficiaries, to the extent they made purchases through such plan(s); and (vi) the legal
                                            representatives, affiliates, heirs, successors-in-interest, or assigns of any such excluded
                                            person. Also excluded from the Settlement Class are those persons and entities who timely
                                            and validly request exclusion from the Settlement Class pursuant to this Notice.

 

    1

     

    

 

2.
Statement of the Settlement Class’s Recovery: Subject to Court approval, and as described more fully below, Lead Plaintiff,
on behalf of himself and the Settlement Class, has agreed to settle the Action in exchange for a total consideration valued at no less
than Three Million Three Hundred Thousand Dollars ($3,300,000.00), consisting of: (i) Two Million Seven Hundred Thousand Dollars ($2,700,000.00)
in cash (the “Cash Settlement Amount”) and (ii) the number of shares of SCWorx common stock that equates to at least Six
Hundred Thousand Dollars ($600,000.00) in value (the “Settlement Shares”), and (iii) one hundred thousand (100,000) shares
of SCWorx common stock at then-market prices (the “Schessel Shares,” and together with the Cash Settlement Amount and the
Settlement Shares, the “Settlement Amount”). The Cash Settlement Amount will be deposited into an interest-bearing Escrow
Account. The Net Settlement Fund (i.e., the Settlement Amount plus any and all interest earned thereon while in escrow (the “Settlement
Fund”) less (i) any Taxes and Tax Expenses, (ii) any Notice and Administration Costs, (iii) any Litigation Expenses awarded by
the Court; and (iv) any attorneys’ fees awarded by the Court), will be distributed in accordance with a plan of allocation that
is approved by the Court, which will dete1mine how the Net Settlement Fund shall be allocated among members of the Settlement Class.
The proposed plan of allocation (the “Plan of Allocation”) is set forth on paragraphs 44-58, below.

 

3.
Estimate of Average Amount of Recovery Per Share: Lead Plaintiff’s damages expert estimates that 11,406,947 shares of SCWorx
common stock were purchased during the Class Period and held through a corrective disclosure, and therefore were damaged. Lead Plaintiffs
damages expert estimates that, if valid Claims for all damaged shares are submitted, the average recovery per damaged share of SCWorx
common stock will be approximately $0.29 per share, before deduction of attorneys’ fees, costs and expenses awarded by the Court,
and the costs of providing notice and administe1ing the Settlement. Settlement Class Members should note, however, that the foregoing
average recovery per eligible share is only an estimate. A Settlement Class Member’s actual recovery will depend on several
things, including: (1) the total number of Claims filed; (2) when and at what price they purchased their SCWorx common stock during the
Class Period; (3) whether and when they sold their SCWorx common stock; (4) the amount of Notice and Administration Costs; and (5) the
amount of attorneys’ fees and Litigation Expenses awarded by the Court. Distributions to Settlement Class Members will be made
based on the Plan of Allocation set fo1th below (see paragraphs 44-58) or such other plan of allocation as may be ordered by the Court.

 

4.
Statement of Average Amount of Damages Per Share: The Parties do not agree on the average amount of damages per share that would
be recoverable if Lead Plaintiff were to prevail in the Action. Among other things, Defendants deny that they made any materially false
or misleading statements or failed to disclose any material information. In sum, Defendants do not agree with the assertion that they
engaged in any actionable misconduct under the federal securities laws or that any damages were suffered by any members of the Settlement
Class as a result of their conduct.

 

    2

     

    

 

5.
Statement of Attorneys’ Fees and Expenses Sought: Court-appointed Lead Counsel, Kaplan Fox & Kilsheimer LLP, has been
prosecuting the Action on a wholly contingent basis since its inception in 2020, has not received any payment of attorneys’ fees
for their representation of Lead Plaintiff or the Settlement Class, and has advanced tens of thousands of dollars in expenses necessarily
incurred in order to prosecute the Action. As set forth in greater detail below (see paragraphs 15-23 below), Lead Counsel was
responsible for: (i) conducting an extensive investigation into the Settlement Class’s claims; (ii) drafting a detailed amended
complaint; (iii) successfully opposing Defendants’ motion to dismiss; (iv) engaging in an expedited discovery program in which
Defendants produced tens of thousands of pages of documents that Lead Counsel promptly commenced reviewing; (v) engaging experts in evaluating
claims and damages; (vi) briefing an independent and experienced mediator on relevant claims and applicable law; and (vii) engaging in
a full-day mediation session and extensive subsequent negotiations before reaching an agreement in principle to settle. Lead Counsel
will ask the Court to award attorneys’ fees in an amount not to exceed twenty-five percent (25%) of the Settlement Fund.
Lead Counsel also will apply for the reimbursement of Litigation Expenses paid or incurred by Lead Counsel in connection with the prosecution
and resolution of the Action, in an amount not to exceed $300,000, which may include the reasonable costs and expenses of Lead Plaintiff
directly related to its representation of the Settlement Class. If the Court approves Lead Counsel’s fee and expense application,
the average cost per affected share of SCWorx common stock will be approximately $0.10. Please note that this amount is only an estimate.

 

6.
Identification of Attorneys’ Representatives: Lead Plaintiff and the Settlement Class are being represented by: Frederic
S. Fox, Kaplan Fox & Kilsheimer LLP, 850 Third Avenue, 14th Floor, New York, NY 10022, (800) 290-1952, mail@kaplanfox.com.

 

7.
Reasons for the Settlement: Lead Plaintiffs principal reason for entering into the Settlement is the substantial cash and stock
benefit for the Settlement Class, without the risk or the delays inherent in further litigation. Moreover, the substantial cash and
stock benefit provided under the Settlement must be considered against the significant risk that a smaller recovery-or, indeed, no
recovery at all-might be achieved after a trial of the Action and the likely appeals that would follow a trial, a process that could
last many months, or even years, into the future. Defendants, who deny all allegations of wrongdoing or liability whatsoever, are
entering into the Settlement solely to eliminate the uncertainty, burden, and expense of further protracted litigation. - The amount
of damages recoverable by the Settlement Class was and is challenged by Defendants.

 

	SUBMIT
                                            A CLAIM FORM

    ONLINE
    OR POSTMARKED NO LATER THAN AUGUST 9, 2022.
	This
                                            is the only way to be eligible to receive a payment from the Settlement.

    If
    you are a Settlement Class Member, you will be bound by the Settlement as approved-by the Court and you will·give up any Released
    Plaintiffs’ Claims (as defined in paragraph 37 below) that you have against Defendants and the other Defendants’ Releasees
    (as defined in paragraph 36 below), so it is in your interest to submit a Claim Form.

	EXCLUDE
    YOURSELF	If
    you exclude yourself from the Settlement Class, you will not be eligible
	FROM
    THE SETTLEMENT	to
    receive any payment from the Settlement Fund. This is the only option
	CLASS
    BY SUBMITTING A	that
    allows you to ever be part of any other lawsuit against the Defendants
	WRITTEN
                                            REQUEST FOR EXCLUSION SO THAT IT

    IS
    RECEIVED NO LATER
	concerning
                                            the claims that were, or could have been, asserted in this Action.

    It
    is also the only way for Settlement Class Members to remove themselves from the Settlement Class. If you are considering excluding
    yourself from

	THAN
    JUNE 8, 2022.	the
    Settlement Class, please note that there is a risk that any new claims
	 	asserted
    against the Defendants may no longer be timely and would be time-barred.
	 	See
paragraph 63 below.

 

    3

     

    

 

	OBJECT
                                            TO THE

    SETTLEMENT
    BY SUBMITTING A WRITTEN OBJECTION SO THAT IT IS RECEIVED NO LATER THAN JUNE 8, 2022.
	If
                                            you do not like the proposed Settlement, the proposed Plan of Allocation,

    and/or
    the request for attorneys’ fees and reimbursement of Litigation Expenses, you may write to the Court and explain why you do
    not like them. You cannot object to the Settlement, the Plan of Allocation, and/or the fee and expense request unless you are a Settlement
    Class Member and do not exclude yourself from the Settlement Class.

	FILE
    A NOTICE OF INTENTION TO APPEAR SO THAT IT IS RECEIVED NO LATER THAN JUNE 8, 2022, AND GO TO THE HEARING ON JUNE 29, 2022
    AT THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK, 500 PEARL STREET, COURTROOM 14A, NEW YORK, NY 10007.	Filing
    a written objection and notice of intention to appear by June 8, 2022 allows you to speak in CoURt, at the discretion of the Court,
    about the fairness of the proposed Settlement, the proposed Plan of Allocation, and/or the request for attorneys’ fees and
    reimbursement of Litigation Expenses. If you submit a written objection, you may (but do not have to) attend the hearing and, at
    the discretion of the Court, speak to the Court about your objection.
	DO
    NOTHING.	If
    you are a member of the Settlement Class and you do not submit a Claim Form by August 9, 2022, you will not be eligible to receive
    any payment from the Settlement Fund. You will, however, remain a member of the Settlement Class, which means that you give up your
    right to sue about the claims that are resolved by the Settlement and you will be bound by any judgments or orders entered by the
    Court in the Action.

 

These
rights and options - and the deadlines to exercise them -
are further explained in this Notice. Please Note: The date and time of the Settlement Fairness Hearing -
currently scheduled fo1· June 29, 2022 at 2:30 p.m. - is subject to change without
further notice to the Settlement Class. If you plan to attend the hearing, you should check
the website www.SCWorxSecuritiesLitigation.com or contact Lead Counsel as set forth above to confirm that no change to the date and/or
time of the hearing has been made.

 

	WHAT THIS
    NOTICE CONTAINS	 	PAGE
	Why Did I Get This Notice?	 	Page 5
	What Is This Case About?	 	Page 6
	How Do I Know If I Am Affected by the Settlement? Who
    Is Included In The Class?	 	Page7
	What Does The Settlement Provide?	 	Page 8
	What Are Lead Plaintiffs Reasons For The Settlement?	 	Page 8
	What Mitlt Happen If There Were No Settlement?	 	Page9
	How Are Settlement Class Members Affected The Settlement?
    What Claims Will Be Released By The Settlement?	 	Page 9
	How Do I Participate in the Settlement? What Do I Need
    to Do?	 	Page 10
	How Much Will My Payment Be? What Is The Proposed Plan
    Of Allocation?	 	Page 11
	What Payment Are The Attorneys For The Settlement Class
    Seeking? How Will The	 	Page 15
	Lawyers Be Paid?	 	 
	What Ifl Do Not Want To Be A Member Of The Settlement
    Class? How Do 1 Exclude Myself?	 	Page 15
	When And Where Will The Court Decide Whether To Approve
    The Settlement? Do I Have To Come To The Hearing? May I Speak At The Hearing lfl Don’t Like The Settlement?	 	Page 16
	What Ifl Bought Shares On Someone Else’s Behalf?	 	Page 17
	Can I See The Court File? Whom Should I Contact Ifl
    Have Questions?	 	Page 18

 

    4

     

    

 

 

8.
This Notice was sent to you pursuant to an Order of the Court because SCWorx common stock may have been purchased during the Class Period
(i.e., April 13, 2020 through Ap1il 17, 2020, inclusive) by you, someone in your family, or an investment account for which you
serve as custodian. The Court has directed us to send you this Notice because, as a potential Settlement Class Member, you have a right
to know about your options before the Court rules on the proposed Settlement of this Action. Additionally, you have the right to understand
how a class action lawsuit may generally affect your legal rights. If the Comt approves the Settlement,

 

A.B.
Data, Ltd., the Claims Administrator retained by Lead Counsel and approved by the Court, will distribute payments pursuant to the Plan
of Allocation after any objections and appeals are resolved.

 

9.
In a class action lawsuit, under federal law, the Court appoints one or more investors to oversee litigation brought on behalf of all
investors with similar claims, commonly known as the class or the class members. In this Action, the Court appointed By Nguyen to serve
as “Lead Plaintiff’ and appointed the law firm of Kaplan Fox & Kilsheimer LLP as Lead Counsel. Pursuant to the Court’s
Order issued on March 22, 2022, Lead Plaintiff was preliminarily certified as “Class Representative” and Lead Counsel was
preliminarily appointed as “Class Counsel” for settlement purposes. The Settlement, if approved by the Court, will resolve
all issues on behalf of the Settlement Class Members, except for any Persons who timely submit a request for exclusion in accordance
with this Notice.

 

10.
The Court in charge of this case is the United States District Court for the Southern District of New York, and the case is known as
Yannes v. SCWorx Corp., Case No. 20-cv-3349-JGK (S.D.N.Y.). The judge presiding over this case is the Honorable John G. Koeltl,
United States District Court Judge. The people who are suing are called plaintiffs and those who are being sued are called defendants.
In this case, the Lead Plaintiff is suing Defendants on behalf of itself and the Settlement Class. If the Settlement is approved, it
will resolve all claims which are, or could have been, included in the Action, and will bring the Action to an end.

 

11.
This Notice explains the lawsuit, the Settlement, your legal rights, the benefits that are available, who is eligible for them, and how
to get them. The purpose of this Notice is to inform you that a Settlement has been reached in the Action and how you might be affected.
It also is being sent to inform you of the terms of the proposed Settlement, and of a hearing to be held by the Court to consider the
fairness, reasonableness, and adequacy of the proposed Settlement, the proposed Plan of Allocation, and the motion by Lead Counsel for
an award of attorneys’ fees and reimbursement of Litigation Expenses (the “Settlement Fairness Hearing”).

 

12.
The Settlement Fairness Hearing will be held on June 29, 2022 at 2:30 p.m., before the Honorable John G. Koeltl, at the United States
District Court for the Southern District of New York, 500 Pearl Street, Courtroom 14A, New York, NY 10007, to determine:

 

		a)	whether
the Settlement Class should be certified for purposes of settlement only;

 

		b)	whether
                                            the proposed Settlement is fair, reasonable, and adequate and should be approved by the Court;
	 	 	 

		c)	whether
                                            the Action should be dismissed with prejudice against the Defendants as set forth in the Stipulation;

 

    5

     

    

 

		d)	whether
                                            the proposed Plan of Allocation is fair and reasonable and should be approved by the Court;
	 	 	 

		e)	whether
                                            Lead Counsel’s request for an award of attorneys’ fees and reimbursement of Litigation
                                            Expenses should be approved by the Court; and
	 	 	 
	 	t)	any
                                            other relief the Court deems necessary to effectuate the terms of the Settlement.

 

13.
This Notice does not express any opinion by the Court concerning the merits of any claim in the Action, and the Court still has to decide
whether to approve the Settlement. If the Court approves the Settlement, payments to Authorized Claimants will be made after any appeals
are resolved, and after the completion of all claims processing. The claims process could take substantial time to complete fully and
fairly; we appreciate your patience.

 

 

		A.	Summary
                                            of Procedural History and Back2round on Lead Plaintiff’s Claims

 

14.
This case involves allegations that Defendants violated Sections lO(b) and 20(a) of the Securities Exchange Act of 1934 (the “Exchange
Act”), and Rule 10b-5(b) promulgated thereunder.

 

15.
On April 29, 2020, the initial complaint was filed in the Action. In accordance with the Private Securities Litigation Reform Act of
1995, 15 U.S.C. § 78u-4, as amended (“PSLRA”), notice to the public was issued stating the deadline by which putative
class members could move the Court for appointment as lead plaintiff.

 

 16. By
Order dated September 17, 2020, the Court appointed Vy Nguyen as Lead Plaintiff and Kaplan Fox &
Kilsheimer LLP as Lead Counsel.

 

17.
On October 19, 2020, Lead Plaintiff filed the Consolidated Class Action Complaint for Violation of Federal Securities Laws (the “Complaint”),
asserting claims under§§ lO(b) and 20(a) of the Securities Exchange Act of 1934 (“Exchange Act”), 15 U.S.C. §§
78j(b) and 78t(a), and Rule lOb-5 promulgated thereunder, against Defendants. It alleged that between April 13, 2020 and April 17, 2020,
inclusive, misrepresenting and omitting material information concerning a deal valued at $840 million to supply millions of COVID-19
rapid test kits to a virtual healthcare company over the course of 24 weeks. It further alleged that Defendants’ allegedly false
and misleading statements caused SCWorx’s common stock to trade at artificially inflated prices during the relevant period, and
that as the truth about the alleged misstatements was revealed, SCWorx.’s stock price dropped significantly.

 

18.
Defendants moved to dismiss the Complaint on November 18, 2020. On December 18, 2020, Lead Plaintiff filed its opposition to Defendants’
motion to dismiss, and on January 8, 2021, Defendants filed their reply in further support of their motion.

 

19.
By Order dated June 21, 2021, the Court denied Defendants’ motion to dismiss the Complaint in its entirety.

 

20.
On July 12, 2021, the Court entered a Scheduling Order including a schedule for discovery.

 

21.
On July 27, 2021, Defendants filed their Answer to the Complaint. On August 10, 2021, Defendants produced approximately 36,000 pages
of documents which Lead Plaintiff promptly commenced reviewing. On October 18, 2021, Lead Plaintiff noticed the deposition of SCWorx,
however, the Parties postponed the deposition pending resolution of the settlement negotiations.

 

    6

     

    

 

		B.	The
                                            Parties’ Settlement Ne,:otiations

 

22.
On August 23, 2021, the Parties conducted a full-day remote mediation session before Jed Melnick, Esq. of JAMS. Although the Parties
were unable to reach a resolution of the Action at the initial mediation, they continued their negotiations with the assistance of Mr.
Melnick over the following four months, and executed a term sheet on December 20, 2021 providing for the Settlement and release of all
claims asserted against the Defendants for a total value of Three Million Three Hundred Thousand Dollars ($3,300,000.00) in cash and
SCWorx common stock plus an additional one hundred thousand (100,000) shares of SCWorx common stock, subject to certain terms and conditions
and the execution of a customary “long form” stipulation of Settlement and related papers.

 

23.
Based upon their investigation, prosecution, and mediation of the case, Lead Counsel has concluded that the terms and conditions of the
Stipulation are fair, reasonable, and adequate to Lead Plaintiff and the other members of the Settlement Class, and in their best interests.
Based on Lead Plaintiffs oversight of the prosecution of this matter and with the advice of Lead Counsel, Lead Plaintiff has agreed to
settle the claims raised in the Action pursuant to the terms and provisions of the Stipulation, after considering (a) the very substantial
financial benefit that Lead Plaintiff and the other members of the Settlement Class will receive under the proposed Settlement, (b) the
significant risks of continued litigation and trial, and (c) the desirability of permitting the Settlement to be consummated as provided
by the terms of the Stipulation. The fact that Lead Plaintiff has agreed to settle the Action shall in no event be construed or deemed
to be evidence of or an admission or concession on the part of any Lead Plaintiff of any infirmity in any of the claims asserted in the
Action, or an admission or concession that any of Defendants’ affirmative defenses to liability have any merit.

 

24.
Defendants are entering into the Stipulation solely to eliminate the uncertainty, burden, and expense of further protracted litigation.
Each of the Defendants denies any wrongdoing and maintain that their conduct was at all times proper and in compliance with applicable
provisions of law. The Stipulation shall in no event be construed or deemed to be an admission or concession on the part of any of the
Defendants, or any of the other Defendant Releasees (defined in paragraph 36 below), with respect to any claim or allegation of any fault
or liability or wrongdoing or damage whatsoever, or any infirmity in the defenses that Defendants have or could have asserted. Defendants
expressly deny that Lead Plaintiff has asserted any valid claims as to any of them and expressly deny all allegations of fault, liability,
wrongdoing, or damages whatsoever.

 

25.
On March 22, 2022, the Court preliminarily approved the Settlement, authorized this Notice to be disseminated to potential Settlement
Class Members, and scheduled the Settlement Fairness Hearing to consider whether to grant final approval of the Settlement.

 

 

26.
If you are a member of the Settlement Class, you are subject to the Settlement unless you are excluded from the Settlement Class as set
forth below. The Settlement Class consists of:

 

all
persons or entities who purchased or otherwise acquired SCWorx common stock on the Nasdaq or other U.S. exchanges or in a U.S. transaction
between April 13, 2020 and April 17, 2020, inclusive.

 

Excluded
from the Settlement Class are: (i) Defendants; (ii) members of the immediate family of any Defendant who is an individual; (iii) any
person who was an officer or director of SCWorx during the Class Period; (iv) any fom, trust, corporation, or other entity in which any
Defendant has or had a controlling interest; (v) SCWorx’s employee retirement and benefit plan(s) and their participants or beneficiaries,
to the extent they made purchases through such plan(s); and (vi) the legal representatives, affiliates, heirs, successors-in-interest,
or assigns of any such excluded person. Also excluded from the Settlement Class are any persons or entities who submit a request for
exclusion from the Settlement Class in connection with this Notice.

 

    7

     

    

 

PLEASE
NOTE: RECEIPT OF TIDS NOTICE DOES NOT MEAN THAT YOU ARE A SETTLEMENT CLASS MEMBER OR THAT YOU WILL BE ENTITLED TO RECEIVE PROCEEDS FROM
THE SETTLEMENT. IF YOU WISH TO BE ELIGIBLE TO PARTICIPATE IN THE DISTRIBUTION OF PROCEEDS FROM THE SETTLEMENT, YOU ARE REQUIRED TO SUBMIT
THE CLAIM FORM THAT IS BEING DISTRIBUTED WITH THIS NOTICE AND THE REQUIRED SUPPORTING DOCUMENTATION POSTMARKED (IF MAILED), OR ONLINE,
NO LATER THAN AUGUST 9, 2022.

 

 

27.
The full terms and provisions of the Settlement are set forth in the Stipulation, which can be viewed at
www.SCWorxSecuritiesLitigation.com.

 

28.
Pursuant to the Settlement, Defendants have agreed to pay a total consideration in excess of Three Million Three Hundred Thousand Dollars
($3,300,000.00) in value, consisting of the Cash Settlement Amount (Two Million Seven Hundred Thousand Dollars ($2,700,000.00)), the
number of shares of SCWorx common stock that equates to a value of Six Hundred Thousand Dollars ($600,000.00), and an additional one
hundred thousand (100,000) shares of SCWorx common stock at then-current market value (collectively referred to as the “Settlement
Amount”). The Cash Settlement Amount will be deposited into an interest-bearing Escrow Account. The Settlement Amount plus all
interest earned thereon while in escrow is referred to as the “Settlement Fund.” If the Settlement is approved by the Court
and the Effective Date occurs, the “Net Settlement Fund” (that is, the Settlement Fund less (i) any Taxes and Tax Expenses;
(ii) any Notice and Administration Costs; (iii) any Litigation Expenses awarded by the Court; and (iv) any attorneys’ fees awarded
by the Court) will be distributed to Settlement Class Members who submit valid Claim Forms, in accordance with the proposed Plan of Allocation
(as set forth below) or such other plan of allocation as the Court may approve. In accordance with the Stipulation, no Authorized Claimant
shall, during any of the four weekly periods immediately following the Distribution of the Settlement Shares, sell or transfer more than
twenty-five percent (25%) per week of the total number of Settlement Shares received.

 

29.
The Net Settlement Fund will not be distributed until the Court has approved a plan of allocation and the Settlement, and the time for
any petition for rehearing, appeal, or review, whether by certiorari or - otherwise, has expired.-

 

30.
Neither Defendants nor any other person or entity that paid any portion of the Settlement Amount on their behalf are entitled to get
back any portion of the Settlement Fund once the Court’s order or Judgment approving the Settlement becomes Final. Defendants shall
not have any liability, obligation, or responsibility for the administration of the Settlement, the disbursement of the Net Settlement
Fund, or the Plan of Allocation.

 

 

31.
The principal reason for Lead Plaintiff’s consent to the Settlement is that it provides an immediate and substantial benefit to
the Settlement Class, in the form of a substantial monetary recovery. The benefit of the present Settlement must be compared to the risk
that no recovery might be achieved after a contested trial and likely appeals, possibly many months, or even years, into the future.

 

    8

     

    

 

32.
But for the Settlement, this Action would have proceeded through further fact discovery, expert discovery, a motion for class
certification, summary judgment motions and, depending on the outcome, trial. The claims advanced by the Settlement Class in the
Action involve numerous complex legal and factual issues. If the Action were to proceed to trial, Lead Plaintiff would have to
overcome significant defenses asserted by Defendants. Among other things, the Parties disagree about (i) whether Lead Plaintiff or
the Settlement Class have suffered any damages, (ii) whether the price of SCWorx common stock was artificially inflated by reason of
the alleged misrepresentations and omissions, and (iii) whether Defendants made any material misrepresentations or omissions. Even
after an extensive investigation and discovery, questions remain regarding

 

Defendants’
liability or the extent thereof, and whether a jury would find them liable. This Settlement enables the Settlement Class to recover without
incurring any additional Iisk or costs.

 

33.
Defendants have expressly denied and continue to deny all assertions of wrongdoing or liability against them arising out of any of the
conduct, statements, acts, or omissions alleged, or that could have been alleged, in the Action. Defendants also continue to believe
that the claims asserted against them in the Action are without meiit. Defendants deny that they are liable in any respect or that Plaintiffs
suffered any injury. Defendants have agreed to enter into the Settlement, as embodied in the Stipulation, solely to avoid the uncertainty,
burden, and expense of further protracted litigation.·

 

 

34.
If there were no Settlement and Lead Plaintiff failed to establish any essential legal or factual element of its claims, neither Lead
Plaintiff nor the other members of the Settlement Class would recover anything from Defendants. Also, if Defendants were successful in
proving any of their defenses at summary judgment, trial, or on appeal, the Settlement Class likely would recover substantially less
than the amount provided in the Settlement, or nothing at all.

 

 

35.
If you are a Settlement Class Member, you will be bound by any orders issued by the Court. If the Settlement is approved, the Court will
enter a judgment (the “Judgment”), which will dismiss with prejudice the claims against Defendants. The Judgment will also
provide that, upon the Effective Date of the Settlement, Lead Plaintiff and all other Settlement Class Members, on behalf of themselves,
and their respective heirs, administrators, predecessors, successors and assigns in their capacities as such, will fully, finally and
forever release all Released Plaintiffs’ Claims against all Defendants Releasees, to the fullest extent that the law permits.

 

36.
“Defendant Releasees” means (i) Defendants and their attorneys; (ii) the Defendants’ respective Immediate Family members,
heirs, trusts, trustees, executors, estates, administrators, beneficiaries, agents, affiliates, insurers and reinsurers, predecessors,
predecessors-in-interest, successors, successors-in-interest, assigns, advisors and associates of each of the foregoing; and (iii) all
current and former officers, directors, and employees of SCWorx, in their capacities as such.

 

    9

     

    

 

37.
“Released Claims” means all Released Defendants’ Claims and all Released Plaintiffs’ Claims. “Released
Defendants’ Claims” means all claims and causes of action of eve1y nature and description, whether known claims or Unknown
Claims, whether arising under federal, state, local, common, statutory, administrative or foreign law, or any other law, rule or regulation,
at law or in equity, whether class or individual in nature, whether accrued or unaccrued, whether liquidated or unliquidated, whether
matured or unmatured, that arise out of or relate in any way to the institution, prosecution, or settlement of the claims against Defendants.
“Released Defendants’ Claims” do not include any claims relating to the enforcement of the Settlement. “Released
Plaintiffs’ Claims” means any and all rights, debts, demands, claims and causes of action or liabilities (including but not
limited to any claims for damages, restitution, rescission, interest, attorneys’ fees, expert or consulting fees, and any other
costs expenses or liability whatsoever) of every nature and description, whether known claims or Unknown Claims, whether based on or
arising under federal, state, local, common, statutory, administrative or foreign law, or any other law, rule or regulation, at law or
in equity, whether class or individual in nature, whether accrued or unaccrued, whether liquidated or unliquidated, whether matured or
unmatured, that Lead Plaintiff or any other member of the Settlement Class: (i) asserted or could have asserted in the Action or (ii)
could have asserted in any court or forum that arise out of or are based upon the allegations, transactions, facts, matters or occurrences,
representations, or omissions set forth in the Action and that relate to the purchase of SCWorx common stock on the Nasdaq or other U.S.
exchanges or in a U.S. transaction during the Class Period, including, without limitation, claims that arise out of or relate to any
disclosures, SEC filings, press releases, or other public statements by or on behalf of SCWorx during the Class Period. “Released
Plaintiffs’ Claims” do not include (i) any claims relating to the enforcement of the Settlement; (ii) any of the claims asserted
in the following actions: In re SCWorx Corp. Derivative Litig., No. 20-cv-4554-JGK (S.D.N.Y.); Zarins v. Schessel, et. al.,
C.A. No. 2020- 0924-MTZ (Del. Ch.); or (iii) any claims of any person or entity that submits a request for exclusion from the Settlement
Class that is accepted by the Court.

 

38.
“Unknown Claims” means any Released Plaintiffs’ Claims which Lead Plaintiff or any other Settlement Class Member does
not know or suspect to exist in his, her or its favor at the time of the release of such claims, and any Released Defendants’ Claims
which any Defendant does not lmow or suspect to exist in his or its favor at the time of the release of such claims, which, if known
by him, her or it, might have affected his, her or its decision(s) with respect to this Settlement, including, but not limited to, whether
or not to object to the Settlement or to the release of the Released Claims. With respect to any and all Released Claims, the Parties
stipulate and agree that, upon the Effective Date of the Settlement, Lead Plaintiff and Defendants shall expressly waive, and each of
the Settlement Class Members shall be deemed to have, and by operation of the Judgment or the Alternative Judgment, if applicable, shall
have, expressly waived, the provisions, rights, and benefits conferred by any law of any state or territory of the United States, or
principle of common law or foreign law, which is similar, comparable, or equivalent to California Civil Code §1542, which provides:

 

A
general release does not extend to claims which the creditor or releasing party does not know or suspect to exist in his or her favor
at the time of executing the release and that, if known by him or her, would have materially affected his or her settlement with the
debtor or released party.

 

The
Parties acknowledge that they may hereafter discover facts in addition to or different from those which he, she or it or their counsel
now knows or believes to be true with respect to the subject matter of the Released Claims, but, upon the Effective Date, Lead Plaintiff
and Defendants shall expressly settle and release, and each of the other Settlement Class Members shall be deemed to have, and by operation
of the Judgment or the Alternative Judgment, if applicable, shall have, settled and released, any and all Released Claims without regard
to the subsequent discovery or existence of such different or additional facts. Lead Plaintiff and Defendants acknowledge, and each of
the other Settlement Class Members shall be deemed by operation of the Judgment or the Alternative Judgment, if applicable, to have acknowledged,
that the foregoing waiver was separately bargained for and is a key element of the Settlement of which this release is a part.

  

 

39.
To be eligible for a payment from the proceeds of the Settlement, you must be a member of the Settlement Class and you must timely complete
and return the Claim Form with adequate supporting documentation postmarked (if mailed), or submitted online at www.SCWorxSecuritiesLitigation.com,
no later than August 9, 2022. A Claim Form is included with this Notice, or you may obtain one from the website for the Settlement,
www.SCWorxSecuritiesLitigation.com, or you may request that a Claim Form be mailed to you by calling the Claims Administrator, A.B. Data,
Ltd., at 1-877-266-4060. Please retain all records of your ownership of and transactions in SCWorx common stock, as they may be needed
to document your Claim. If you are excluded from the Settlement Class by definition or you submit a request for exclusion in connection
with this Notice, or if you do not submit a timely and valid Claim Form, you will not be eligible to share in the Net Settlement Fund.

 

    10

     

    

 

40.
As a Settlement Class Member, you are represented by Lead Plaintiff and Lead Counsel, unless you enter an appearance through counsel
of yow- own choice at yow- own expense. You are not required to retain your own counsel, but if you choose to do so, such counsel must
file a notice of appearance on your behalf and must serve copies of his or her notice of appearance on the attorneys listed in the section
entitled, “When and Where Will the Court Decide Whether to Approve the Settlement?,” below.

 

41.
If you are a Settlement Class Member and you wish to object to the Settlement, the proposed Plan of Allocation, or the application for
attorneys’ fees and reimbursement of Litigation Expenses, you may present your objections by following the instructions in the
section entitled, “When and Where Will the Court Decide Whether to Approve the Settlement?” below.

 

 

42.
At this time, it is not possible to make any determination as to how much any individual Settlement Class Member may receive from the
Settlement. A Claimant’s recovery from the Net Settlement Fund will depend on several factors, including when and at what prices
the Claimant pmchased or otheiwise acquired SCWorx common stock, and the total number of shares of SCWorx common stock for which valid
Claim Forms are submitted.

 

43.
The proposed Plan of Allocation for allocating the Net Settlement Fund among Authorized Claimants is set forth below. Defendants had
no involvement in the proposed Plan of Allocation. The Court may modify the Plan of Allocation, or approve a different plan of allocation,
without further notice to the Class.

 

PROPOSED
PLAN OF ALLOCATION

 

44.
The Plan of Allocation set forth below is the plan that is being proposed to the Court for approval by Lead Plaintiff after consultation
with its damages expert. The Court may approve the Plan of Allocation with or without modification, or approve another plan of allocation,
without further notice to the Settlement Class. Any Orders regarding a modification of the Plan of Allocation will be posted on the website
for the Settlement, www.SCWorxSecuritiesLitigation.com. Defendants have had, and will have, no involvement or responsibility for
the terms or application of the Plan of Allocation.

 

45.
The objective of the proposed Plan of Allocation is to equitably distribute the Net Settlement Fund among those Settlement Class Members
who suffered economic losses as a result of the alleged violations of the federal securities laws set forth in the Complaint. To that
end, Lead Plaintiffs damages expert calculated the estimated amount of alleged artificial inflation in the per share price of SCWorx
common stock over the course of the Class Period that was proximately caused by Defendants’ alleged materially false and misleading
misrepresentations and omissions. In calculating the estimated artificial inflation allegedly caused by those misrepresentations and
omissions, Lead Plaintiff’s damages expert considered price changes in SCWorx common stock in reaction to the alleged misrepresentations
and the public disclosmes that allegedly corrected misrepresentations and omissions. The calculations made pursuant to the Plan of Allocation,
however, do not represent a formal damages analysis that has been adjudicated in the Action and are not intended to measure the amounts
that Settlement Class Members would recover after a trial. Nor are these calculations intended to be estimates of the amounts that will
be paid to Authorized Claimants pursuant to the Settlement. The computations under the Plan of Allocation are only a method to weigh
the claims of Authmized Claimants against one another for the pmposes of making pro rata allocations of the Net Settlement Fund.

 

    11

     

    

 

46.
For losses to be compensable damages under the federal securities laws, the disclosure of the allegedly misrepresented information must
be the cause of the decline in the price of the security. Accordingly, to have a “Recognized Loss Amount” pursuant to the
Plan of Allocation, SCWorx common stock must have been purchased during the Class Period (i.e., from April 13, 2020 through April 17,
2020, inclusive) and held through at least one of the alleged corrective disclosures that removed alleged artificial inflation
related to that information. To that end, Lead Plaintiff’s damages expert has identified April 14, 2020 and April 17, 2020 as dates
where alleged corrective information was released to the market and removed artificial inflation from the price of SCWorx common stock.

 

CALCULATION
OF RECOGNIZED LOSS AMOUNTS

 

47.
For purposes of determining whether a Claimant has a “Recognized Claim,” purchases and sales of SCWorx common stock will
first be matched on a First In, First Out (“FIFO”) basis as set forth in paragraph 48 below.

 

48.
A “Recognized Loss Amount” will be calculated as set forth below for each share of SCWorx common stock purchased on the Nasdaq,
on other U.S. exchanges or in a U.S. transaction during the period from April 13, 2020 through April 17, 2020, inclusive, that is listed
in the Claim Form and for which adequate documentation is provided. To the extent that the calculation of a Claimant’s Recognized
Loss Amount results in a negative number, that number shall be set to zero. The sum of a Claimant’s Recognized Loss Amounts will
be the Claimant’s “Recognized Claim.”

 

49.
For each share of SCWorx common stock purchased from April 13, 2020 through April 17, 2020, inclusive, and sold on or before April 21,
2020,2 an “Out of Pocket Loss” will be calculated. Out of Pocket Loss is defined as the per-share purchase price
(excluding all fees, taxes, and commissions) minus the per-share sale price (excluding all fees, taxes, and commissions). To the
extent that the calculation of an Out-of-Pocket Loss results in a negative number, that number shall be set to zero.

 

50.
A Claimant’s Recognized Loss Amount per share of SCWorx common stock purchased on the Nasdaq, on other U.S. exchanges or in a U.S.
transaction, during the Class Period will be calculated as follows:

 

		A.	For
                                            each share of SCWorx common stock purchased during the Class Period and sold prior to the
                                            opening of trading on April 14, 2020, the Recognized Loss Amount is $0.

 

		B.	For
                                            each share of SCWorx common stock purchased during the Class Period and subsequently sold
                                            after the opening of trading on April 14, 2020 and prior to the close of trading on April
                                            17, 2020, the Recognized Loss Amount shall be the lesser of

 

		(1)	the
                                            dollar amount of alleged artificial inflation per share on the date of purchase as set forth
                                            in Table A below minus the dollar amount of alleged artificial inflation per
                                            share on the date of sale as set forth in Table A below; or

 

		(2)	the
                                            Out-of-Pocket Loss.

 

		C.	For
                                            each share of SCWorx common stock purchased during the Class Period and subsequently sold
                                            after April 17, 2020 and prior to the close of trading on April 21, 2020 (i.e., the last
                                            trading

 

 

		2	Pursuant
                                            to Section 2 l(D)(e)(l) of the PSLRA, “in any private action arising under this title
                                            in which the plaintiff seeks to establish damages by reference to the market price of a security,
                                            the award of damages to the plaintiff shall not exceed the difference between the purchase
                                            or sale price paid or received, as appropriate, by the plaintiff for the subject security
                                            and the mean trading price of that security during the 90-day period beginning on the date
                                            on which the information con-ecting the misstatement or omission that is the basis for the
                                            action is disseminated.” Trading in SCWorx common stock was halted before the beginning
                                            of regular trading on April 22, 2020 and did not resume until August 10, 2020, after the
                                            expiration of the 90-day period described above. Thus, the last trading day of the 90-day
                                            period described above (the “look-back period”) was April 21, 2020. day of the
                                            90-day look-back period), the Recognized Loss Amount shall be the least of

 

    12

     

    

 

		(1)	the
                                            dollar amount of alleged artificial inflation applicable to each such share on the date of
                                            purchase as set forth in Table A; or

 

		(2)	the
                                            Out-of-Pocket Loss; or

 

		(3)	the
                                            difference between the purchase price per share and the average closing price per share on
                                            the date of sale, as set forth in Table B.3

 

		D.	For
                                            each share of SCWorx common stock purchased during the Class Period and still held as of
                                            the close of trading on April 21, 2020 (i.e., the last trading day of the 90-day look-back
                                            peiiod), the Recognized Loss Amount shall be that number of shares multiplied by the
                                            lesser of

 

		(1)	the
                                            applicable purchase date artificial inflation per share figure, as set forth in Table
                                            A below; or

 

		(2)	the
                                            difference between the purchase price per share and $5.95 (the average closing price of SCWorx
                                            common stock during the look-back period, as shown on the last line in Table B below).

 

 

 

ADDITIONAL
PROVISIONS

 

51.
The Net Settlement Fund will be allocated among all Authorized Claimants whose Distribution Amount (defined in paragraph 56 below) is
$10.00 or greater.

 

52.
If a Settlement Class Member has more than one purchase or sale of SCWorx common stock during the Class Period, all purchases and sales
shall be matched on a FIFO basis. Class Period sales will be matched first against any holdings at the beginning of the Class Petiod,
and then against purchases in chronological order,

 

 

		3	Pursuant
                                            to Section 2l(D)(e)(2) of the PSLRA, “if the plaintiff sells or repurchases the subject
                                            security prior to the expiration of the 90-day [look-back period] ... the plaintiffs damages
                                            shall not exceed the difference between the purchase or sale price paid orreceived, as appropriate,
                                            by the plaintiff for the security and the mean trading price of the security duting the period
                                            beginning immediately after dissemination of information correcting the misstatement or omission
                                            and ending on the date on which the plaintiff sells or repurchases the security.” As
                                            previously noted, the halt in regular trading of SCWorx common stock from April 22, 2020
                                            through August 9, 2020 results in a look-back period that ends on April 21, 2020. beginning
                                            with the earliest purchase made during the Class Period.

 

    13

     

    

 

53.
Purchases and sales of SCWorx common stock shall be deemed to have occuned on the “contract” or “trade” date
as opposed to the “settlement” or “payment” date. The receipt or grant by gift, inheritance or operation of law
of SCWorx common stock during the Class Period, shall not be deemed a purchase or sale of these shares of SCWorx common stock for the
calculation of an Authorized Claimant’s Recognized Claim, nor shall the receipt or grant be deemed an assignment of any claim relating
to the purchase of such shares of SCWorx common stock unless (i) the donor or decedent purchased such shares of SCWorx common stock during
the Class Period; (ii) no Claim Form was submitted by or on behalf of the donor, on behalf of the decedent, or by anyone else with respect
to such shares of SCWorx common stock; and (iii) it is specifically so provided in the instrument of gift or assignment.

 

54.
The date of covering a “short sale” is deemed to be the date of purchase of the SCWorx common stock. The date of a “short
sale” is deemed to be the date of sale of the SCWorx common stock. In accordance with the Plan of Allocation, however, the Recognized
Loss Amount on “short sales” is zero. In the event that a Claimant has an opening short position in SCWorx common stock,
the earliest purchases during the Class Period shall be matched against such opening short position and not be entitled to a recovery
until that short position is fully covered.

 

55.
SCWorx common stock purchased on the Nasdaq, on other U.S. exchanges or in a U.S. transaction is the only security eligible for recovery
under the Plan of Allocation. Option contracts to purchase or sell SCWorx common stock are not securities eligible to participate in
the Settlement. With respect to SCWorx common stock purchased or sold through the exercise of an option, the purchase/sale date of the
SCWorx common stock is the exercise date of the option and the purchase/sale price is the exercise price of the option. Any Recognized
Loss Amount arising from purchases of SCWorx common stock acquired during the Class Period through the exercise of an option on SCWorx
common stock4 shall be computed as provided for other purchases of SCWorx common stock in the Plan of Allocation.

 

56.
The Net Settlement Fund will be distributed to Authorized Claimants on a pro rata basis based on the relative size of their Recognized
Claims. Specifically, a “Distribution Amount” will be calculated for each Authorized Claimant, which will be the Authorized
Claimant’s Recognized Claim divided by the total Recognized Claims of all Authorized Claimants, multiplied by the total amount
in the Net Settlement Fund. If any Authorized Claimant’s Distribution Amount calculates to less than $10.00, it will not be included
in the calculation and no distribution will be made to that Authorized Claimant.

 

57,
After the initial distribution of the Net Settlement Fund, the Claims Administrator will make reasonable and diligent efforts to have
Authorized Claimants cash their distribution checks. To the extent any monies remain in the Net Settlement Fund by reason of uncashed
checks, or otherwise, nine (9) months after the initial distribution, if Lead Counsel, in consultation with the Claims Administrator,
determines that it is cost-effective to do so, the Claims Administrator will conduct a re-distribution of the funds remaining after payment
of any unpaid fees and expenses incurred in administering the Settlement, including for such re-distribution, to Authorized Claimants
who have cashed their initial distiibutions and who would receive at least $10.00 from such re-distribution. Additional re-distributions
may occur thereafter if Lead Counsel, in consultation with the Claims Administrator, determines that additional re-distributions, after
deduction of any additional fees and expenses incurred in administering the Settlement, including for such re-distributions, would be
cost-effective. At such time as it is determined that the re-distribution of funds remaining in the Net Settlement Fund is not cost-effective,
the remaining balance shall be contributed to non-sectarian, not-for-profit organization(s), to be recommended by Plaintiffs’
Counsel and approved by the Court.

 

 

		4	This
includes (I) purchases of SCWorx common stock as the result of the exercise of a caU option, and (2) purchases of SCWorx common stock
by the seller of a put option as a result of the buyer of such put option exercising that put option.

 

    14

     

    

 

58.
Payment pursuant to the Plan of Allocation, or such other plan of allocation as may be approved by the Court, shall be conclusive against
all Auth9rized Claimants. No person shall have any claim against Lead Plaintiff, Lead Counsel, Lead Plaintiff’s damages experts,
Defendants, Defendants’ Counsel, any of the other Plaintiff Releasees or Defendant Releasees, or the Claims Administrator or other
agent designated by Lead Counsel arising from distributions made substantially in accordance with the Stipulation, the Plan of Allocation
approved by the Court, or further orders of the Court. Lead Plaintiff, Defendants and their respective counsel, and all other Defendant
Releasees, shall have no responsibility or liability whatsoever for the investment or distribution of the Settlement Fund or the Net
Settlement Fund; the Plan of Allocation; the determination, administration, calculation, or payment of any Claim Form or nonperformance
of the Claims Administrator; the payment or withholding of Taxes or Tax Expenses; or any losses incurred in connection therewith.

 

 

59.
Lead Counsel has not received any payment for their services in pursuing claims against the Defendants on behalf of the Settlement Class,
nor has Lead Counsel been reimbursed for their out-of-pocket expenses. Before final approval of the Settlement, Lead Counsel will apply
to the Court for an award ofattomeys’ fees from the Settlement Fund in an amount not to exceed 25% of the Settlement Fund. At the
same time, Lead Counsel also intends to apply for the reimbursement of Litigation Expenses incurred by Plaintiff’s Counsel and
Liaison Counsel in an amount not to exceed $300,000, which may include an application for reimbursement of the reasonable costs and expenses
incurred by Lead Plaintiff directly related to its representation of the Settlement Class. The Court will dete1mine the amount of any
award of attorneys’ fees or reimbursement of Litigation Expenses. Such sums as may be approved by the Court will be paid from the
Settlement Fund. Settlement Class Members are not personally liable for any such fees or expenses.

 

 

60.
Each Settlement Class Member will be bound by all determinations and judgments in this lawsuit, whether favorable or unfavorable, unless
such person or entity mails or delivers a written request for exclusion· addressed to: SCWorx Securities Litigation, ATTN: EXCLUSIONS,
c/o A.B. Data, Ltd., P.O. Box 173001, Milwaukee, WI 53217. The request for exclusion must be received no later than June 8, 2022. You
will not be able to exclude yourself from the Settlement Class after that date.

 

61.
Each request for exclusion must: (i) state the name, address, and telephone number of the person or entity requesting exclusion, and
in the case of entities, the name and telephone number of the appropriate contact person; (ii) state that such person or entity “requests
exclusion from the Settlement Class in Yannes v. SCWorx Corp., Case No. 20-cv-3349-JGK (S.D.N.Y.)”; (iii) state the number
of shares ofSCWorx common stock that the person or entity requesting exclusion purchased and/or sold during the Class Period, as well
as the dates, number of shares, and prices of each such purchase and/or sale; and (iv) be signed by the person or entity requesting exclusion
or an authorized representative.

 

62.
A request for exclusion shall not be valid and effective unless it provides all the information called for in paragraph 61 and is received
within the time stated above, or is otherwise accepted by the Court.

 

    15

     

    

 

63.
If you do not want to be pa1t of the Settlement Class, you must follow these instructions for exclusion even if you have pending, or
later file, another lawsuit, arbitration, or other proceeding relating to any Released Plaintiffs’ Claim against any of the Defendants’
Releasees. Excluding yourself from the Settlement Class is the only option that allows you to be part of any other cun-ent or future
lawsuit against Defendants or any of the other Defendants’ Releasees concerning the Released Plaintiffs’ Claims. Please note,
however, if you decide to exclude yourself from the Settlement Class, you may be time-ban-ed from asserting the claims covered by the
Action by a statute of repose. In addition, Defendants and the other Defendants’ Releasees will have the right to assert any and
all defenses they may have to any claims that you may seek to assert.

 

64.
If you ask to be excluded from the Settlement Class, you will not be eligible to receive any payment out of the Net Settlement Fund.

 

65.
Defendants have the right to terminate the Settlement if valid requests for exclusion are received from persons and entities entitled
to be members of the Settlement Class in an amount that exceeds an amount agreed to by Lead Plaintiff and Defendants.

 

 

 

66.
Settlement Class Members do not need to attend the Settlement Fairness Hearing. The Court will consider any submission made in accordance
with the provisions below even if a Settlement Class Member does not attend the hearing. You can participate in the Settlement without
attending the Settlement Fairness Hearing.

 

67.
The Settlement Fairness Hearing will be held on June 29, 2022 at 2:30 p.m. before the Honorable John G. Koeltl, at the United States
District Court, Southern District of New York, 500 Pearl St., Comtroom 14A, New York, NY 10007-1312. The Court reserves the right to
approve the Settlement, the Plan of Allocation, Lead Counsel’s motion for an award of attorneys’ fees and reimbursement of
Litigation Expenses, and/or any other matter related to the Settlement at or after the Settlement Hearing without further notice to the
members of the Settlement Class.

 

68.
Any Settlement Class Member who is not requesting exclusion from the Settlement Class may object to the proposed Settlement, the proposed
Plan of Allocation, or the motion for an award of attorneys’ fees and reimbursement of Litigation Expenses. Objections must be
in writing. You must file any written objection, together with copies of all other papers and briefs supporting the objection, with the
Clerk’s Office of the Court at the address set forth below on or before June 8, 2022. You must also serve the papers on Lead Counsel
for the Settlement Class and Defendants’ Counsel at the addresses set forth below so that the papers are received on
or before June 8, 2022.

 

	

    

    Clerk’s
    Office

 Daniel Patrick Moynihan

    U.S.
    Courthouse

    500
    Pearl Street
	 

    

    Frederic
    S. Fox KAPLAN FOX& KILSHEIMER LLP

    850
    Third Ave., 14th Fl. New York, NY 10022 (212) 687-1980
	 

    Carole
    Bernstein

    LAW
    OFFICES OF CAROLE R. BERNSTEIN

    41
    Maple Ave. N. Westport, CT 06880

    (203)
    259-8698

	New
                                            York, NY 10007

    (212)
    805-0136
	Paul
                                            R. Bessette

    KING
    & SPALDING LLP

	 	500
    West 2nd Street Ste. 1800
	 	Austin,
    TX 78701
	 	(512)
    457-2050

 

    16

     

    

 

69.
Any objection to the Settlement must include: (1) the name, address, and telephone number of the person objecting, signed by the objector;
(2) a statement of such person’s objections to any matters before the Court concerning the Settlement and whether the objection
applies only to the objector, to a specific subset of the Settlement Class, or to the entire Settlement Class; (3) the grounds therefore
or the reasons that such person desires to appear and be heard, as well as all documents or writings such person desires the Court to
consider; (4) whether that person intends to present any witnesses and/or experts, the identity of any such witnesses and/or experts,
and the nature of the testimony; and (5) proof of the person’s membership in the Settlement Class, which proof shall include the
person’s purchases of SCWorx common stock during the Class Period and any sales thereof, including the dates, the number of shares,
and price(s) paid and received for each such purchase or sale.

 

70.
You may file a written objection without having to appear at the Settlement Fairness Hearing. You may not, however, appear at the Settlement
Fairness Hearing to present your objection unless you first filed and served a written objection in accordance with the procedures described
above, unless the Court orders otherwise.

 

71.
If you wish to be heard orally at the Settlement Fairness Hearing in opposition to the approval of the Settlement, the Plan of Allocation,
or the motion for an award of attorneys’ fees and reimbursement of Litigation Expenses, and if you file and serve a timely written
objection as described above, you must also file a notice of appearance with the Clerk’s Office and serve it on Lead Counsel and
Defendants’ Counsel at the addresses set forth above so that it is received on or before June 8, 2022. Persons who
intend to object and desire to present evidence at the Settlement Fairness Hearing must include in their written objection or notice
of appearance the identity of any witnesses they may call to testify, the nature of the testimony, and any exhibits they intend to introduce
into evidence at the Settlement Hearing. Such persons may be heard orally at the discretion of the Court.

 

72.
You are not required to hire an attorney to represent you in making written objections or in appearing at the Settlement Fairness Hearing.
If you decide to hire an attorney, however, it will be at your own expense and that attorney must file a notice of appearance with the
Court and serve it on Lead Counsel and Defendants’ Counsel at the addresses set forth above so that the notice is received
on or before June 8, 2022.

 

73.
The Settlement Fairness Hearing may be adjourned by the Court without further written notice to the Settlement Class. If you intend to
attend the Settlement Fairness Hearing, you should confirm the date and time with Lead Counsel.

 

74.
Unless the Court orders otherwise, any Settlement Class Member who does not object in the manner described above will be deemed to have
waived any objection and shall be forever foreclosed from making any objection to the proposed Settlement, the proposed Plan of Allocation,
or Lead Counsel’s motion for an award of attorneys’ fees and reimbursement of Litigation Expenses. Settlement Class Members
do not need to appear at the hearing or take any other action to indicate their approval.

 

 

75.
If, for the beneficial interest of any person or entity other than yourself, you pmchased SCWorx publicly-traded common stock on the
Nasdaq, on other U.S. exchanges or in a U.S. transaction during the period from April 13, 2020 through April 17, 2020, inclusive, you
must either: (i) send the Notice and Claim Form to all such beneficial owners, postmarked within ten (10) calendar days ofreceipt of
the Notice; or (ii) send a list of the names and addresses of such beneficial owners to the Claims Administrator within ten (10) calendar
days after receipt of the Notice, in which event the Claims Administrator shall mail the Notice and Claim Form to such beneficial owners
within ten (10) calendar days after receipt thereof.

 

    17

     

    

 

76.
If you choose the first option, i.e., you elect to mail the Notice directly to beneficial owners, you must retain the mailing
records for use in connection with any further notices that may be provided in the Action. If you elect that option, the Claims Administrator
will forward the Notice and Claim Form (together, the ’‘Notice Packet”) to you to send to the beneficial owners. You
must mail the Notice Packets to the beneficial owners within ten (10) calendar days of your receipt of the packets. Upon mailing of the
Notice Packets, you may seek reimbursement of your reasonable expenses actually incurred, by providing the Claims Administrator with
proper documentation supporting the expenses for which reimbursement is sought.

 

77.
If you choose the second option, you must, within ten (10) calendar days ofreceipt of this Notice, provide a list of the names and addresses
of all such beneficial owners to SCWorx Securities Litigation c/o A.B. Data, Ltd., ATTN: FULFILLMENT DEPT., P.O. Box 170500, Milwaukee,
WI 53217. The Claims Administrator will send a copy of the Notice Packet to the beneficial owners whose names and addresses you supply.
Upon full compliance with these directions, you may seek reimbursement of your reasonable expenses actually incurred by providing the
Claims Administrator with proper documentation supporting the expenses for which reimbursement is sought. Copies of the Notice Packet
may also be obtained from the website for this Action, www.SCWorxSecuritiesLitigation.com, or by calling the Claims Administrator toll-free
at l-877-266-4060.

 

 

 

78.
This Notice contains only a summaiy of the terms of the proposed Settlement. For more detailed infmmation about the matters involved
in the Action, you are referred to the papers on file in the Action, including the Stipulation, which may be inspected
during regular office hours at the Office of the Clerk, United States District Court for the Southern District of New York. Additionally,
copies of the Stipulation and any related orders entered by the Court will be posted on the website for the Settlement, www.SCWorxSecuritiesLitigation.com.
All inquiries concerning this Notice or the Claim Form should be directed to the Claims Administrator or Lead Counsel.

 

DO
NOT CALL OR WRITE THE COURT OR THE OFFICE OF THE CLERK OF COURT, DEFENDANTS OR THEIR COUNSEL REGARDING THIS NOTICE.

 

	Dated:------, 2022	By Order of the
  Clerk of Court United States District Court Southern District of New York

 

    18

     

    

 

Exhibit
A-(ii)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     

     

    

 

UNITED
STATES DISTRICT COURT

SOUTHERN
DISTRICT OF NEW YORK

 

	DANIEL
                         YANNES, Individually and on Behalf of All Others Similarly Situated,
	 	 
	 	
	 
	Plaintiff,

	CIVIL
      ACTION NO.: 20-CV-3349-JGK	 
	vs.

	 	 
	 	CLASS ACTION	 
	SCWORX
                                            CORPORATION and MARC S. SCHESSEL,
	 	 
	 	 	 
	Defendants.	 	 

 

PROOF
OF CLAIM AND RELEASE

 

Deadline
for Submission: August 9, 2022

 

If
you purchased or otherwise acquired SCWorx Corporation (“SCWorx”) common stock on the Nasdaq or other U.S. exchanges or in
a U.S. transaction between April 13, 2020 and April 17, 2020, inclusive, you are a member of the Settlement Class and you could get a
payment from a class action settlement.

 

IF
YOU ARE A SETTLEMENT CLASS MEMBER, IN ORDER TO BE ELIGIBLE TO RECEIVE A SHARE OF THE NET SETTLEMENT FUND IN CONNECTION WITH THE PROPOSED
SETTLEMENT, YOU MUST COMPLETE AND SIGN THIS PROOF OF CLAIM AND RELEASE (“CLAIM FORM”) AND MAIL IT BY FIRST CLASS MAIL TO
THE BELOW ADDRESS, OR SUBMIT IT ONLINE AT WWW.SCWORXSECURITIESLITIGATION.COM, POSTMARKED (OR RECEIVED) NO LATER THAN AUGUST 9, 2022:

 

SCWorx
Securities Litigation 

c/o A.B. Data, Ltd.

P.O.
Box 170500 -

Milwaukee,
WI 53217

 

YOUR
FAILURE TO SUBMIT YOUR CLAIM FORM BY AUGUST 9, 2022, WILL SUBJECT YOUR CLAIM TO REJECTION AND PRECLUDE YOU FROM BEING ELIGIBLE TO RECEIVE
ANY MONEY IN CONNECTION WITH THE SETTLEMENT OF THIS ACTION. DO NOT MAIL OR DELIVER YOUR CLAIM TO THE COURT OR TO ANY OF THE PARTIES TO
THE ACTION OR THEIR COUNSEL AS ANY SUCH CLAIM WILL BE DEEMED NOT TO HAVE BEEN SUBMITTED. SUBMIT YOUR CLAIM ONLY TO THE CLAIMS ADMINISTRATOR
AT THE ADDRESS ABOVE, OR ONLINE AT WWW.SCWORXSECURITIESLITIGATION.COM.

 

GENERAL
INSTRUCTIONS

 

1.
This Claim Form is directed to members of the Settlement Class, as defined in the accompanying Notice. Certain persons and entities are
excluded from the Settlement Class by definition as set forth in ,r 1 of the Notice.

 

    -2-

     

    

 

2.
By submitting this Claim Form, you will be making a request to share in the proceeds of the Settlement described in the Notice. IF YOU
ARE NOT A SETTLEMENT CLASS MEMBER, OR IF YOU SUBMITTED A REQUEST FOR EXCLUSION FROM THE SETTLEMENT CLASS, DO NOT SUBMIT A CLAIM FORM.
YOU MAY NOT, DIRECTLY OR INDIRECTLY, PARTICIPATE IN THE SETTLEMENT. THUS, IF YOU ARE EXCLUDED FROM THE SETTLEMENT CLASS, ANY CLAIM FORM
THAT YOU SUBMIT, OR THAT MAY BE SUBMITTED ON YOUR BEHALF, WILL NOT BE ACCEPTED.

 

3.
Submission of this Claim Form does not guarantee that
you will share in the proceeds of the Settlement. The distribution of the Net Settlement Fund will be governed by the Plan of Allocation
set forth in the Notice, if it is approved by the Court, or by such other plan of allocation as the Court approves.

 

4.
Use Part II - Transactions in SCWorx common stock to supply all required details of your transaction(s) (including free transfers and
deliveries) in and holdings of SCWorx common stock. On this schedule, please provide all of the requested information with respect to
your holdings, purchases, and sales of SCWorx common stock, whether such transactions resulted in a profit or a loss. Failure to repott
all transaction and holding information during the requested time period may result in the rejection of your claim.

 

5.
You are required to submit genuine and sufficient documentation for all of your transactions in and holdings of SCWorx common stock set
forth in Patt II of this Claim Form. The documentation submitted must show that the claimed SCWorx common stock was purchased on the
Nasdaq, on other U.S. exchanges or in a U.S. transaction. Documentation may consist of copies of brokerage confirmation slips or monthly
brokerage account statements, or an authorized statement from your broker containing the transactional and holding information found
in a broker confomation slip or account statement. The Paities and the Claims Administrator do not independently have information about
your investments in SCWorx common stock. IF SUCH DOCUMENTS ARE NOT IN YOUR POSSESSION, PLEASE OBTAIN COPIES OF THE DOCUMENTS OR EQUIVALENT
DOCUMENTS FROM YOUR BROKER. FAILURE TO SUPPLY THIS DOCUMENTATION MAY RESULT IN THE REJECTION OF YOUR CLAIM. DO NOT SEND ORIGINAL DOCUMENTS.
Please keep a copy of all documents that you send to the Claims Administrator. Also, do not highlight any p01tion of the Claim Form or
any supporting documents.

 

8.
All joint beneficial owners each must sign this Claim Form and their names must appear as “Claimants” in Part I of this Claim
Form. The complete name(s) of the beneficial owner(s) must be entered. If you purchased SCWorx common stock during the Class Period and
held the shares in your name, you are the beneficial owner as well as the record owner. If you purchased SCWorx common stock during the
Class Period and the shares were registered in the name of a third party, such as a nominee or brokerage firm, you are the beneficial
owner of these shares, but the third party is the record owner. The beneficial owner, not the record owner, must sign this Claim Form.

 

9.
One Claim Form should be submitted for each separate legal entity. Separate Claim Forms should be submitted for each separate legal entity
(e.g., a claim from joint owners should not include separate transactions of just one of the joint owners, and an individual should not
combine his or her IRA transactions with transactions made solely in the individual’s name). Conversely, a single Claim Form should
be submitted on behalf of one legal entity including all transactions made by that entity on one Claim Form, no matter how many separate
accounts that entity has (e.g., a corporation with multiple brokerage accounts should include all transactions made in all accounts on
one Claim Form).

 

10.
Agents, executors, administrators, guardians, and trustees must complete and sign the Claim Form on behalf of persons or entities represented
by them, and they must:

 

(a)
expressly state the capacity in which they are acting;

 

    -3-

     

    

 

(b)
identify the name, account number, last four digits of the Social Security Number (or Taxpayer Identification Number), address, and telephone
number of the beneficial owner of (or other person or entity on whose behalf they are acting with respect to) the SCWorx common stock;
and

 

(c)
furnish herewith evidence of their authority to bind to the Claim Form the person or entity on whose behalf they are acting. (Authority
to complete and sign a Claim Form cannot be established by stockbrokers demonstrating only that they have discretionary authority to
trade securities in another person’s accounts.)

 

11.
If you have questions concerning the Claim Form, or need additional copies of the Claim Form or the Notice, you may contact the Claims
Administrator, A.B. Data, Ltd. at the above address, by email at info@SCWorxSecuritiesLitigation.com, or by toll-free phone at 1-877-266-4060,
or you can visit the website maintained by the Claims Administrator, www.SCWorxSecuritiesLitigation.com, where copies of the Claim Form
and Notice are available for downloading.

 

NOTICE
REGARDING ELECTRONIC FILES: Certain claimants with large numbers of transactions may request, or may be requested, to submit information
regarding their transactions in electronic files. All Claimants MUST submit a manually signed paper Claim Form listing all their transactions
whether or not they also submit electronic copies. If you wish to file your claim electronically, you must contact the Claims Administrator
at 1- 877-266-4060, or visit the website for the Settlement at www.SCWorxSecuritiesLitigation.com to obtain the required file layout.
No electronic files will be considered to have been properly submitted unless the Claims Administrator issues to the Claimant a written
acknowledgment of receipt and acceptance of electronically submitted data.

 

    -4-

     

    

 

PART
I - CLAIMANT INFORMATION

 

	Beneficial
    Owner’s First Name	MI	Beneficial
    Owner’s Last Name
	Co-Beneficial
    Owner’s First Name	MI	Co-Beneficial
    Owner’s Last Name
	Entity
    Name (if claimant is not an individual)
	Representative
    or Custodian Name (if different from Beneficial Owner(s) listed above)
	Address
    1:
	Address
    2:
	City	State	ZIP
	Foreign
    Province	Foreign
    Country
	Day
    Phone	Evening
    Phone
	Email
    Address:	Broker/Brokerage
    Company:
	Account
    Number:

 

Specify
one of the following:

 

	D Individual(s) D Corporation	D UGMA Custodian	D IRA D Partnership	D Estate
	 	 	 	 
	D Trust	 
	 	 	 	 	 

☐
Other __________________________________________________________________

 

Enter
Taxpayer Identification Number below for the Beneficial Owner(s).

 

	Social Security
    No. (for individuals)	or	Taxpayer Identification
    No.
		 	(for
    estates, trusts, corporations,
    etc.)
	 	 	 

 

    -5-

     

    

 

PART
II - TRANSACTIONS IN SCWORX COMMON STOCK

 

Complete
this Part II if and only if you purchased SCWorx publicly-traded common stock on the Nasdaq,
on other U.S. exchanges or in a U.S. transaction during the pe1·iod from April 13, 2020 through April 17, 2020, inclusive.

 

A.
Beginning Holdings:

 

	State the total number of shares of
  SCWorx common stock owned at the opening of trading on April 13, 2020, long or short (must be documented). If none, write “zero”
  or “O.”	 	 
	 	 	 

 

Continued
on next page 

 

    -6-

     

    

 

B.
Purchases From April 13, 2020 Through Ap1·il 21, 2020, Inclusive:

 

Separately
list each and every purchase (including free receipts) of SCWorx common stock from the opening of trading on April 13, 2020 Through April
21, 2020, inclusive, and provide the following information (must be documented):

 

	 	 	Number of	 	 	 	Total Cost	 
	 	 	SCWorx	 	 	 	(Excluding	 
	Trade Date	 	Common Stock	 	 	 	Commissions,	 
	(List Chronologically)	 	Shares	 	 	 	Taxes, and	 
	(Month/DayNear)	 	Purchased	 	Price	 	Fees)	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 

*P
- Purchase, R - Received (Transfer-In)

 

C.
Sales From April 13, 2020 Through April 21, 2020, Inclusive:

 

Separately
list each and every sale/disposition (including free deliveries) of SCWorx common stock during the period from April 13, 2020 through
April 21, 2020, inclusive and provide the following information (must be documented):

 

	 
Trade Date
 (List Chronologically)

 (Month/DayNear)..
	 	Number of

 SCWorx 

Common 

Stock Shares

 Sold	 	 	Price	 	 	

Amount 

Received (Excluding

 Commissions,

 Taxes, and

 Fees)
	 
		 	 		 	 	 	       	 	 	 	        
	 	 	 		 	 	 		 	 	 		 
	 	 	 		 	 	 		 	 	 		 

*S
- Sale, D - Delivery (Transfer-Out)

 

E.
Ending Holdings:

 

State the total number of SCWorx common stock shares
owned at the close of trading on April 21, 2020, long or short
(must be documented).

 

If
additional space is needed, attach separate, numbered sheets, giving all required information, substantially in the same format, and
print your name and Social Security or Taxpayer Identification number at the top of each sheet.

 

    -7-

     

    

 

CERTIFICATION

 

By
signing and submitting this Claim Form, the claimant(s) or the person(s) who represent(s) the claimant(s) agree(s) to the Releases contained
in the Notice and certifies (certify) as follows:

 

		1.	I
                                            (we) purchased SCWorx publicly-traded common stock and was (were) damaged thereby.

 

		2.	By
                                            submitting this Claim Form, I (we) state that I (we) believe in good faith that I am (we
                                            are) a Settlement Class Member as defined above and in the Notice, or am (are) acting for
                                            such person(s); that I am (we are) not a Defendant in the Action or anyone excluded from
                                            the Settlement Class; that I (we) have read and understand the Notice; that I (we) believe
                                            that I am (we are) entitled to receive a share of the Net Settlement Fund, as defined in
                                            the Notice; that I (we) elect to participate in the proposed Settlement described in the
                                            Notice; and that I (we) have not filed a request for exclusion.

 

		3.	I
                                            (we) consent to the jmisdiction of the Court with respect to all questions concerning the
                                            validity of this Claim Form. I (we) understand and agree that my (our) claim may be subject
                                            to investigation and discovery under the Federal Rules of Civil Procedure, provided that
                                            such investigation and discovery shall be limited to my (our) status as a Settlement Class
                                            Member(s) and the validity and amount of my (our) claim. No discovery shall be allowed on
                                            the merits of the Action or Settlement in connection with processing of the Claim Form.

 

		4.	I
                                            (we) have set forth where requested above all relevant information with respect to each purchase
                                            of SCWorx publicly-traded common stock during the Class Period, and each sale, if any, as
                                            well as my(our) holdings as requested. I (we) agree to furnish additional information to
                                            the Claims Administrator to support this claim ifrequested to do so.

 

		5.	I
                                            (we) have enclosed photocopies of confirmation slips, account statements, or other documents
                                            evidencing each purchase, sale or retention of SCWorx publicly-traded common stock listed
                                            above in support of our claim.

 

		6.	I
                                            (we) understand that the information contained in this Claim Form is subject to such verification
                                            as the Claims Administrator may request or as the Court may direct, and I (we) agree to cooperate
                                            in any such verification. (The information requested herein is designed to provide the minimum
                                            amount of information necessary to process most simple claims. The Claims Administrator may
                                            request additional information as required to efficiently and reliably calculate your recognized
                                            claim. In some cases, the Claims Administrator may condition acceptance of the claim based
                                            upon the production of additional information, including, where applicable, information concerning
                                            transactions in any derivatives securities such as options.)

 

		7.	Upon
                                            the occurrence of the Effective Date, as defined in the Notice, I (we) agree and acknowledge
                                            that my (our) signature(s) hereto shall effect and constitute a full and complete release,
                                            remise and discharge by me (us) and my (our) heirs, executors, administrators, predecessors,
                                            successors and assigns (or, if lam (we are) submitting this Claim Form on behalf of a corporation,
                                            a partnership, estate or one or more other persons, by it, him, her or them, and by its,
                                            his, her or their heirs, executors, administrators, predecessors, successors and assigns)
                                            of each of the ’‘PlaintiffReleasees”, as defined in the Notice.

 

		8.	I
                                            (We) understand
                                            that I (we) am (are) prohibited by Court-ordered
                                            agreement from selling or transferring more than twenty-five percent (25%) per week of any
                                            Settlement Shares I (we) may receive during any
                                            of the four weeks immediately following the Distribution of such Settlement Shares.

 

    -8-

     

    

 

		9.	I
                                            (We) certify that I am (we are) NOT subject to backup withholding under the provisions of
                                            Section 3406 (a)(l)(c) of the Internal Revenue Code because: (a) I am (We are) exempt from
                                            backup withholding, or

 

(b)
I (We) have not been notified by the I.R.S. that I am (we are) subject to backup withholding as a result of a failure to report all interest
or dividends, or (c) the I.R.S. has notified me (us) that I am (we are) no longer subject to backup withholding.

 

NOTE:
If you have been notified by the I.RS. that you are subject to backup withholding, please strike out the language that you are not subject
to backup withholding in the certification above.

 

UNDER
THE PENALTIES OF PERJURY, I (WE) CERTIFY THAT ALL OF THE INFORMATION I (WE) PROVIDED ON THIS PROOF OF CLAIM AND RELEASE IS TRUE, CORRECT
AND COMPLETE.

 

	 	Signature of Claimant (If this claim is being made on behalf of Joint Claimants, then each must sign)
	 	 	 
	 	 
	 	(Signature)
	 	 	 
	 	 	 
	 	 
	 	(Signature)
	 	 	 
	 	 
	 	(Capacity of person(s) signing, e.g. beneficial purchaser(s), executor, administrator, trustee, etc.)

 

Date:
                                      

 

THIS
CLAIM FORM MUST BE MAILED TO THE CLAIMS ADMINISTRATOR BY FIRST-CLASS MAIL, OR SUBMITTED ONLINE AT WWW.SCWORXSECURITIESLITIGATION.COM,
POSTMARKED (OR RECEIVED) NO LATER THAN AUGUST 9, 2022. IF MAILED, THE CLAIMS FORM SHOULD BE ADDRESSED TO:

 

SCWorx
Securities Litigation

c/o A.B. Data, Ltd.

P.O.
Box 170500

Milwaukee, WI 53217

 

If
mailed, a Claim Form received by the Claims Administrator shall be deemed to have been submitted when posted, if mailed by August 9,
2022, and if a postmark is indicated on the envelope and it is mailed first class and addressed in accordance with the above instructions.
In all other cases, a Claim Form shall be deemed to have been submitted when actually received by the Claims Administrator.

 

    -9-

     

    

 

REMINDER
CHECKLIST

 

		o	Please
                                            be sure to sign this Claim Form. If this Claim Form is submitted on behalf of joint claimants,
                                            then both claimants must sign.

 

		o	Please
                                            remember to attach supporting documents. Do NOT send any stock certificates. Keep copies
                                            of everything you submit.

 

		o	Do
                                            NOT use highlighter on the Claim Fmm or any supporting documents.

 

		o	If
                                            you move after submitting this Claim Form, please notify the Claims Administrator of the
                                            change in your address.

 

		o	Please
                                            remember that you are subject to a Court-ordered Agreement referenced in Paragraph 8 of the
                                            above Certification which limits your ability to sell your Settlement Shares during the four
                                            weeks following the distribution of the Settlement Shares.

 

    -10-

     

    

 

Exhibit
A-(iii)

 

 

 

 

 

 

 

 

 

 

 

 

     

     

    

 

UNITED
STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK

 

	DANIEL
                         YANNES, Individually and on Behalf of All Others Similarly Situated,
	 	 
	 	
	 
	Plaintiff,

	Civil
      Action NO.: 20-CV-3349-JGK	 
	vs.

	 	 
	 	CLASS ACTION	 
	SCWORX
                                            CORPORATION and MARC S. SCHESSEL,
	 	 
	 	 	 
	Defendants.	 	 

 

SUMMARY
NOTICE OF (i) PENDENCY OF CLASS ACTION AND PROPOSED SETTLEMENT; (ii)
MOTION FOR AN AWARD OF ATTORNEYS’ FEES AND REIMBURSEMENT OF LITIGATION EXPENSES; AND

(iii)
SETTLEMENT FAIRNESS HEARING

 

TO:
ALL PERSONS AND ENTITIES WHO PURCHASED OR OTHERWISE ACQUIRED SCWORX CORPORATION (“SCWORX”) COMMON STOCK ON THE NASDAQ
OR OTHER U.S. EXCHANGES OR IN A U.S. TRANSACTION BETWEEN APRIL 13, 2020 AND APRIL 17, 2020, INCLUSIVE (THE “SETTLEMENT CLASS”).

 

Certain
persons and entities are excluded from the Settlement Class as set forth in the Stipulation and Agreement of Settlement dated February
11, 2022 (“Stipulation”) and the Notice described below.

 

YOU
ARE HEREBY NOTIFIED, pursuant to Rule 23 of the Federal Rules of Civil Procedure and an Order of the United States District Court for
the Southern District of New York, that the above-captioned action (“Action”) has been provisionally certified as a class
action for the purposes of settlement only and that the parties to the Action have reached a proposed settlement of the Action (“Settlement”).
A hearing will be held on June 29,-2022, at 2:30 p.m., before the Honorable John G. Koeltl, United States District Judge, at the Southern
District of New York, 500 Pearl St., Courtroom 14A, New York, NY 10007-1312, for the purpose of dete1mining: a) whether the proposed
Settlement of the claims alleged in the Action for a total value of no less than Three Million Three Hundred Thousand Dollars ($3,300,000.00),
consisting of Two Million Seven Hundred Thousand Dollars ($2,700,000.00) in cash and the number of shares of SCWorx common stock that
equate to a value of Six Hundred Thousand Dollars ($600,000.00), plus an additional one hundred thousand (100,000) shares of SCWorx common
stock at then-current market values, is fair, reasonable, and adequate and should be approved by the Court; b) whether the Action should
be dismissed with prejudice against the Defendants as set forth in the Stipulation; c) whether the Settlement Class should be certified
for purposes of settlement; d) whether the proposed Plan of Allocation is fair and reasonable and should be approved by the Court; e)
whether Lead Counsel’s request for an award of attorneys’ fees and reimbursement of Litigation Expenses should be approved
by the Court; and f) any other relief the Court deems necessaiy to effectuate the tem1s of the Settlement.

 

    Page 2 of 3

     

    

 

IF
YOU ARE A MEMBER OF THE SETTLEMENT CLASS, YOUR RIGHTS WILL BE AFFECTED BY THE SETTLEMENT OF THIS ACTION, AND YOU MAY BE ENTITLED TO SHARE
IN THE SETTLEMENT FUND.

 

If
you have not received a detailed Notice of (i) Pendency of Class Action and Proposed Settlement; (ii) Motion for an Award of Attorneys’
Fees and Reimbursement of Litigation Expenses; and (iii) Settlement Fairness Hearing (’‘Notice”) and Claim Fmm, you
may obtain a copies by contacting the Claims Administrator by mail at SCWorx Securities Litigation c/o A.B. Data, Ltd., P.O. Box 170500,
Milwaukee, WI, 53217, by email at info@SCWorxSecuritiesLitigation.com, by telephone at 1-877-266-4060, or by the website at www.SCWorxSecuritiesLitigation.com.
If you are a Settlement Class Member, in order to share in the distribution of the Net Settlement Fund, you must submit a Claim Form
by mail (postmarked no later than August 9, 2022), or electronically no later than August 9, 2022, establishing
that you are entitled to recover. If you are a Settlement Class Member and do not submit a proper Claim Form, you will not be eligible
to share in the distribution of the net proceeds of the Settlement but you will nevertheless be bound by any releases, judgments or orders
entered by the Court in the Action.

 

If
you are a Settlement Class Member, you have the right to object to the Settlement, the Plan of Allocation, or the attorneys’ fee
and Litigation Expense applications, or otherwise request to be heard. To object, you must submit a written objection in accordance with
the procedures described in the more detailed Notice, referred to above. Any written objection must be delivered to the following recipients
so that it is received no later than June 8, 2022: (a) the Clerk’s Office, United States District Court for the Southern
District of New York, 500 Pearl Street, New York, NY 10007; (b) Frederic S. Fox, Kaplan Fox & Kilsheimer LLP, 850 Third Avenue, 14th
Floor, New York, NY 10022; (c) Carole R. Bernstein, Law Offices of Carole R. Bernstein, 41 Maple Ave. N., Westport, CT 06880;
and (d) Paul R. Bessette, King & Spalding LLP, 500 West 2nd Street, Ste. 1800, Austin, TX 78701. Note that the Court can only approve
or deny the Settlement, not change the terms of the Settlement.

 

lfyou
are a Settlement Class Member and wish to exclude yourself from the Settlement Class, you must submit a request for exclusion such that
it is received no later than June 8, 2022, in accordance with the procedures described in the Notice. If you properly exclude
yourself from the Settlement Class, you will not be bound by any releases, judgments or orders entered by the Court in the Action and
you will not be eligible to share in the net proceeds of the Settlement. Excluding yourself is the only option that allows you to be
part of any other current or future lawsuit against Defendants or any of the other released parties concerning the claims being resolved
by the Settlement. Please note, however, if you decide to exclude yourself from the Settlement Class, you may be time-barred from asserting
the claims covered by the Action by a statute of repose.

 

    Page 2 of 3

     

    

 

PLEASE
    DO NOT     CONTACT     THE COURT,     THE CLERK’S
    OFFICE, DEFENDANTS OR THEIR COUNSEL REGARDING TIDS NOTICE. If you have any
questions about the Settlement, you may contact Lead Counsel at the address listed below:

 

Frederic
S. Fox

KAPLAN
FOX & KILSHEIMER LLP

850
Third Avenue, 14th Floor New York, NY 10022

(212)
687-1980

mail@kaplanfox.com

 

	Dated: -------	By
                         Order of the Clerk of Court United States District Court Southern District of New York

 

 

Page
3 of 3Exhibit 10.8

 

 

	IN
                                            THE UNITED STATES DISTRICT COURT

                                                                                FOR
                                            THE SOUTHERN DISTRICT OF NEW YORK

	 
	

    IN
    RE SCWORX CORP. DERIVATIVE

    LITIGATION
	

    Lead
    Case No. 1:20-cv-04554-JGK

 

STIPULATION
OF SETTLEMENT

 

This
Stipulation of Settlement (the “Stipulation”) dated February 15, 2022, is made and entered into by the following Parties
(as defined herein), each by and through their respective counsel: (1) plaintiffs in the above-captioned consolidated stockholder
derivative action (the “Consolidated Action”), Javier Lozano (“Lozano”) and Josstyn Richter
(“Richter”) (“Federal Plaintiffs”), plaintiff in the shareholder derivative action captioned Zarins, et
al. v. Schessel, et al., Case No. 2020-0924-MTZ, pending in the Delaware Court of Chancery (the “Delaware Action,”
and together with the Consolidated Action, the “Derivative Actions”), Hemrita Zarins (“Zarins,” and
collectively with Federal Plaintiffs, “Plaintiffs”); (2) individual defendants Marc S. Schessel, Charles K. Miller,
Robert Christie, and Steven Wallitt (the “Individual Defendants”); and (3) nominal defendant SCWorx Corp.
(“SCWorx” or the “Company,” and together with the Individual Defendants, “Defendants”)
(“Parties” refers collectively to Defendants and Plaintiffs).1

 

This
Stipulation, subject to court approval, is intended to fully, finally, and forever resolve, discharge, and settle any and all Released
Claims (as defined herein), upon the terms and subject to the conditions set forth herein.

 

 

		1	Although
only filed in the Consolidated Action, this Stipulation also resolves the Delaware Action. On the Effective Date (defined herein), the
parties in the Delaware Action shall stipulate to voluntarily dismiss the case with prejudice within five (5) days thereafter.

 

    1

     

    

 

		I.	BACKGROUND
                                            OF THE DERIVATIVE ACTIONS AND THE SETTLEMENT

 

		A.	Factual
                                            Background and Plaintiffs’ Claims

 

SCWorx
offers data services and software solutions to healthcare providers. The Company’s software is aimed at optimizing information
flow and enhancing the business systems of healthcare organizations. In April 2020, during the COVID-19 pandemic, which strained healthcare
systems across the United States and around the world and resulted in serious medical equipment shortages, the Company announced that
it was expanding into a new business to supply personal protective equipment for healthcare workers as well as COVID-19 test kits.

 

Plaintiffs
allege in the Derivative Actions that the Individual Defendants breached their fiduciary duties by personally making and/or causing the
Company to make to the investing public a series of materially false and misleading statements and omissions about SCWorx’s business,
operations, and prospects and causing the Company to fail to maintain an adequate system of internal controls. Specifically, the Derivative
Actions allege that as early as April 13, 2020, and at least through April 17, 2020, Defendants issued false and misleading statements
indicating that SCWorx had the capacity to successfully enter the market for selling COVID-19 test kits and had secured lucrative purchase
and supply agreements for COVID-19 test kits purportedly worth millions of dollars for the Company.

 

		B.	Procedural
                                            History

 

		i.	The
                                            Consolidated Action

 

On
June 15, 2020, plaintiff Lozano filed a Verified Shareholder Derivative Complaint on behalf of SCWorx against the Individual
Defendants in the United States District Court for the Southern District of New York (the “Court”), asserting claims for
breaches of fiduciary duties, unjust enrichment, abuse of control, gross mismanagement, waste of corporate assets, and seeking
contribution under sections 10(b) and 21D of the Securities Exchange Act of 1934 (the “Exchange Act”) (the
“Lozano Action”).

 

    2

     

    

 

On
August 12, 2020, the parties in the Lozano Action stipulated to stay proceedings pending the resolution of a forthcoming motion
to dismiss in the related now-consolidated securities class action, captioned Yannes v. SCWorx Corp., et al., No. 1:20-cv-03349-JGK
(S.D.N.Y.) (the “Securities Class Action”). The Court so-ordered the stipulation to stay the same day, August 12, 2020 (the
“Stay Order”).

 

On
August 21, 2020, plaintiff Richter filed another Verified Shareholder Derivative Complaint on behalf of SCWorx against the Individual
Defendants in the Court, also asserting claims for breaches of fiduciary duties, unjust enrichment, abuse of control, gross mismanagement,
waste of corporate assets, and seeking contribution under sections 10(b) and 21D of the Exchange Act (the “Richter Action”).

 

On
August 26, 2020, the parties in the Lozano Action and the Richter Action filed a Joint Stipulation and [Proposed] Order
Consolidating Related Shareholder Derivative Actions and Appointing Co-Lead Counsel that stipulated to: (i) consolidate the related actions
to form the Consolidated Action; (ii) appoint The Brown Law Firm, P.C. and The Rosen Law Firm, P.A. Co- Lead Counsel for Federal Plaintiffs;
and (iii) apply the terms of the Stay Order to the Consolidated Action. The Court so-ordered the stipulation to consolidate the next
day, August 27, 2020.

 

The
Stay Order provided, among other things, that during the pendency of the stay, Defendants would provide copies of any discovery
provided or produced to any plaintiff or purported shareholder in any related actions/threatened actions, including in response to
books and records demands under 8 Del. C. § 220 (“Section 220”), subject to an appropriate confidentiality
agreement and/or protective order. On January 28, 2021 and on August 11, 2021, Defendants provided Federal Plaintiffs copies of
non-public documents, including documents produced in response to Section 220 demands, including the documents produced to plaintiff
Zarins.

 

On
June 21, 2021, the Court denied the defendants’ motion to dismiss plaintiffs’ consolidated class action complaint in the
Securities Class Action.

 

    3

     

    

 

		ii.	The
                                            Delaware Action

 

On
October 28, 2020, plaintiff Zarins filed under seal a confidential Verified Stockholder Derivative Complaint on behalf of SCWorx, with
the benefit of the Company’s books and records pursuant to Section 220, against Defendants Schessel, Christie, and Wallitt in the
Court of Chancery of the State of Delaware (“Delaware Court”), asserting claims for breaches of fiduciary duties, waste of
corporate assets, and unjust enrichment (the “Delaware Action”). A public version of the complaint was filed on November
2, 2020.

 

On
February 3, 2021, the parties in the Delaware Action stipulated to stay the proceedings pending the resolution of the motion to dismiss
in the Securities Class Action. The Delaware Court so-ordered the stipulation to stay the Delaware Action the same day.

 

		C.	Settlement
                                            Negotiations

 

On
July 23, 2021, the Parties agreed to attend a mediation, at which the parties to the Securities Class Action would also participate,
before experienced JAMS mediator, Jed D. Melnick, Esq. (the “Mediator”) to attempt to resolve the claims in the Derivative
Actions.

 

On
August 16, 2021, in anticipation of the mediation, Plaintiffs submitted a joint mediation brief to Defendants and the Mediator,
addressing relevant arguments and allegations in the Derivative Actions. Together with their mediation submission, Plaintiffs
provided counsel for Defendants with a settlement demand that included a comprehensive corporate governance reforms proposal. On
each of August 12, 2021 and August 23, 2021, Defendants provided Plaintiffs with their respective mediation statements.

 

    4

     

    

 

On
August 23, 2021, the Parties, including the Defendants’ D&O insurers and plaintiff Zarins, participated in an all-day mediation
via Zoom with the Mediator. Although the Parties were unable to reach an agreement to settle the claims in the Derivative Actions at
the Mediation, the Parties subsequently engaged in arm’s-length negotiations through emails and teleconferences, with the assistance
of the Mediator. The Parties continued to engage in good faith settlement negotiations in the months following the Mediation, including
by exchanging various drafts of proposed corporate governance reforms, until they reached an agreement-in-principle to settle the Derivative
Actions.

 

On
October 18, 2021, the Parties reached an agreement on the material terms of the settlement, including the corporate governance reforms
that SCWorx will adopt as consideration for the settlement, which corporate governance reforms are set forth in Exhibit A hereto (the
“Reforms”).

 

With
substantial assistance from the Mediator, and only after agreeing in principle to the Reforms, the Parties negotiated, at arm’s-length,
the attorneys’ fees and reimbursement of expenses to be paid to Plaintiffs’ Counsel. On December 13, 2021, the Individual
Defendants agreed to cause their D&O insurers to pay three hundred thousand dollars ($300,000) to Plaintiffs’ Counsel for their
attorneys’ fees and expenses in light of the substantial benefit that will be conferred upon the Company and its shareholders by
the Reforms as a result of the settlement.

 

The
Parties memorialized the terms of the settlement in a binding Settlement Term Sheet dated December 22, 2021 (“Term Sheet”).

 

The
members of SCWorx’s Board of Directors (the “Board”), in exercising their business judgment, have resolved that the
settlement contemplated herein and all of its terms, as set forth in this Stipulation (the “Settlement”), is in the best
interest of SCWorx and its shareholders.

 

    5

     

    

 

		II.	PLAINTIFFS’
                                            CLAIMS AND THE BENEFITS OF SETTLEMENT

 

Plaintiffs
believe that their derivative claims have substantial merit, and Plaintiffs’ entry into this Stipulation is not intended to be
and shall not be construed as an admission or concession concerning the relative strength or merit of the claims alleged in the Derivative
Actions. However, Plaintiffs and Plaintiffs’ Counsel (defined herein) recognize and acknowledge the significant risk, expense,
and length of continued proceedings necessary to prosecute the derivative claims against the Individual Defendants through trial and
possible appeals. Plaintiffs’ Counsel also have taken into account the uncertain outcome and the risk of any litigation, especially
in complex cases such as those comprising the Derivative Actions, as well as the difficulties and delays inherent in such litigation.
Plaintiffs’ Counsel are also mindful of the inherent problems of establishing standing in derivative litigation, and the possible
defenses to the claims alleged in the Derivative Actions.

 

Plaintiffs’
Counsel have conducted extensive investigation and analysis, including, inter alia: (i) reviewing and analyzing SCWorx press
releases, public statements, filings with the U.S. Securities and Exchange Commission (“SEC”); (ii) reviewing and
analyzing securities analysts’ reports and advisories and media reports about the Company; (iii) reviewing and analyzing the
pleadings contained in the Securities Class Action; (iv) researching the applicable law with respect to the claims alleged and the
potential defenses thereto; (v) preparing and filing the complaints in the Derivative Actions; (vi) researching and evaluating
factual and legal issues relevant to the claims; (vii) analyzing and reviewing confidential documents produced by Defendants; (viii)
engaging in settlement negotiations with Defendants’ Counsel regarding the specific facts, and perceived strengths and
weaknesses of the Derivative Actions, and other issues in an effort to facilitate negotiations; (ix) conducting damages analyses and
research into the Company’s corporate governance structure in connection with settlement efforts; (x) preparing a
comprehensive written settlement demand and modified demands over the course of the Parties’ settlement negotiations; (xi)
preparing a mediation statement; (xii) participating in the all-day virtual mediation; and (xiii) negotiating the material terms of
the settlement, and negotiating and drafting the Term Sheet and this comprehensive Stipulation.

 

Based
on Plaintiffs’ Counsel’s thorough review and analysis of the relevant facts, allegations, defenses, and controlling legal
principles, Plaintiffs’ Counsel believe that the Settlement set forth in this Stipulation is fair, reasonable, and adequate, and
confers substantial benefits upon SCWorx. Based upon Plaintiffs’ Counsel’s evaluation, Plaintiffs have determined that the
Settlement is in the best interests of SCWorx and have agreed to settle the Derivative Actions upon the terms and subject to the conditions
set forth herein.

 

    6

     

    

 

		III.	DEFENDANTS’
                                            DENIALS OF WRONGDOING AND LIABILITY

 

Defendants
have denied and continue to deny each and every claim and contention alleged by Plaintiffs in the Derivative Actions. The Individual
Defendants have expressly denied and continue to deny all charges of wrongdoing or liability against them arising out of any of the
conduct, statements, acts, or omissions alleged, or that could have been alleged, in the Derivative Actions. Nonetheless, Defendants
have concluded that it is desirable for the Derivative Actions to be fully and finally settled in the matter and upon the terms and
conditions set forth in this Stipulation. Defendants have also taken into account the uncertainty and risks inherent in any
litigation, especially in complex cases like this. Defendants have, therefore, determined that it is in the best interests of SCWorx
for the Derivative Actions to be settled in the manner and upon the terms and conditions set forth in this Stipulation.

 

Neither
this Stipulation, nor any of its terms or provisions, nor entry of the Judgment (as defined herein) nor any document or exhibit referred
to or attached to this Stipulation, nor any action taken to carry out this Stipulation is or may be construed or used as evidence of
the validity or infirmity of any of the Released Claims or an admission by or against any Defendant of any fault, wrongdoing, or concession
of liability or non-liability whatsoever.

 

		IV.	TERMS
                                            OF STIPULATION AND AGREEMENT OF SETTLEMENT

 

NOW,
THEREFORE, IT IS HEREBY STIPULATED AND AGREED by and among the undersigned counsel for the Parties herein, in consideration of the benefits
flowing to the Parties from the Settlement, and subject to the approval of the Court, that the Released Claims shall be finally and fully
compromised, settled, and released, and the Derivative Actions shall be dismissed with prejudice and with full preclusive effect as to
all Parties, upon and subject to the terms and conditions of this Stipulation, as set forth below.

 

		1.	DEFINITIONS

 

As
used in this Stipulation, the following terms have the meanings specified below:

 

1.1
“Board” means SCWorx’s Board of Directors.

 

1.2 “Claims”
means claims, demands, rights, liabilities, losses, obligations, duties, damages, costs, debts, expenses, interest, penalties,
sanctions, fees, attorneys’ fees, actions, potential actions, causes of action, suits, judgments, defenses, counterclaims,
offsets, decrees, matters, issues, and controversies of any kind, nature, or description whatsoever, whether direct or derivative,
known or unknown, disclosed or undisclosed, accrued or unaccrued, apparent or not apparent, foreseen or unforeseen, matured or not
matured, suspected or unsuspected, liquidated or not liquidated, fixed or contingent, held at any point from the beginning of time
to the date of the Stipulation’s execution.

 

    7

     

    

 

1.3 “Consolidated
Action” means the consolidated derivative action pending in the Court, captioned In re SCWorx Corp. Derivative Litigation,
Lead Case No. 1:20-cv-04554-JGK (S.D.N.Y.).

 

1.4
“Court” means the United States District Court for the Southern District of New York.

 

1.5 “Current
SCWorx Shareholders” means any Person or Persons who are record or beneficial owners of SCWorx stock as of the date of this Stipulation,
and who continue to own SCWorx common stock as of the date of the Settlement Hearing, and their successors-in- interest, excluding the
Individual Defendants, the officers and directors of SCWorx, members of their immediate families, and their legal representatives, heirs,
successors, or assigns, and any entity in which any of the Individual Defendants has or has had a controlling interest.

 

1.6
“Defendants” means the Individual Defendants and nominal defendant, SCWorx.

 

1.7 “Defendants’
Counsel” means King & Spalding LLP, Law Offices of Carole R. Bernstein, and Pashman Stein Walder Hayden, P.C.

 

1.8 “Delaware
Action” means the shareholder derivative action pending in the Delaware Court captioned Zarins, et al. v. Schessel, et al.,
Case No. 2020-0924-MTZ (Del. Ch.).

 

1.9
“Derivative Actions” means the Consolidated Action and the Delaware Action.

 

1.10 “Effective
Date” means the date by which all of the events and conditions specified in Section IV (¶6.1) have been met and have
occurred.

    8

     

    

 

1.11 “Federal
Plaintiffs” means plaintiffs Javier Lozano and Josstyn Richter in the Consolidated Action.

 

1.12 “Fee
and Expense Amount” means the terms of the sum to be paid to Plaintiffs’ Counsel for their attorneys’ fees and expenses,
as detailed in Section IV, ¶¶4.1, 4.2. of this Stipulation, subject to approval by the Court.

 

1.13 “Final”
means when the last of the following, with respect to the Judgment approving this Stipulation, substantially in the form of Exhibit D,
attached hereto, shall have occurred: (1) the expiration of the time to file a notice of appeal from the Judgment without a notice of
appeal having been filed; or (2) if an appeal has been filed, the court of appeals has either affirmed the Judgment or dismissed that
appeal and the time for any reconsideration or further appellate review has passed; or (3) if a higher court has granted further appellate
review, that court has either affirmed the underlying Judgment or affirmed the court of appeal’s decision affirming the Judgment
or dismissing the appeal. For purposes of this paragraph, an “appeal” shall not include any appeal that concerns only the
issue of attorneys’ fees and expenses or the payment of service awards to Plaintiffs. Any proceeding or order, or any appeal or
petition for review pertaining solely to the application for attorneys’ fees, costs, or expenses, and/or service awards to Plaintiffs
shall not in any way delay or preclude the Judgment from becoming Final.

 

1.14 “Individual
Defendants” means Marc S. Schessel, Charles K. Miller, Robert Christie, and Steven Wallitt.

 

1.15 “Judgment”
means the [Proposed] Order and Final Judgment entered by the Court that dismisses the Consolidated Action pursuant to the Settlement,
substantially in the form of Exhibit D attached hereto.

 

    9

     

    

 

1.16
“Mediator” means Jed D. Melnick, Esq. of JAMS.

 

1.17 “Notice”
means the Notice of Pendency and Proposed Settlement of Stockholder Derivative Actions, substantially in the form of Exhibit C attached
hereto.

 

1.18
“Parties” means, Plaintiffs and Defendants.

 

1.19 “Person”
means any natural person, individual, corporation, partnership, limited partnership, limited liability partnership, limited liability
company, association, joint venture, joint stock company, estate, legal representative, trust, unincorporated association, government
or any political subdivision or agency thereof, any business or legal entity, professional corporation, and any spouse, heir, legatee,
executor, administrator, predecessor, successor, representative, or assign of any of the foregoing.

 

1.20 “Plaintiffs”
means Federal Plaintiffs and plaintiff in the Delaware Action, Hemrita Zarins.

 

1.21 “Plaintiffs’
Counsel” means The Brown Law Firm, P.C., The Rosen Law Firm, P.A., and Gainey McKenna & Egleston.

 

1.22 “Preliminary
Approval Order” means the Preliminary Approval Order entered by the Court that preliminarily approves the Settlement, authorizes
the form and manner of providing notice of the Settlement to Current SCWorx Shareholders, and sets a date for the Settlement Hearing,
substantially in the form of Exhibit B attached hereto.

 

1.23 “Reforms”
means the corporate governance reforms set forth in Exhibit A attached hereto, which the Company shall adopt, implement, and maintain,
pursuant to and in accordance with this Stipulation.

 

1.24
“Related Persons” means, with respect to any Person, all of such Person’s current and former parents,
subsidiaries, divisions, departments, affiliates, stockholders, officers, directors, employees, agents, attorneys, auditors,
accountants, underwriters, advisors, insurers, partners, control persons, family members (in their capacities as such),
representatives, predecessors, successors, and assigns; and all heirs, executors, trustees, representatives, and administrators of
any of the foregoing.

 

    10

     

    

 

1.25 “Released
Claims” shall collectively mean: (i) any and all claims for relief (including Unknown Claims, as defined in ¶1.31 below),
actions, suits, claims, debts, disputes, demands, rights, liabilities, sums of money due, judgments, matters, issues, charges of any
kind (including, but not limited to, any claims for interest, attorneys’ fees, expert or consulting fees, and any other costs,
expenses, amounts, or liabilities whatsoever), and claims of relief or causes of action of every nature and description whatsoever, known
or unknown, whether or not concealed or hidden, asserted or unasserted, fixed or contingent, accrued or unaccrued, liquidated or unliquidated,
at law or in equity, matured or unmatured, foreseen or unforeseen, whether arising under federal or state statutory or common law, or
any other law, rule, or regulation, whether foreign or domestic, that have been asserted in the Derivative Actions or could have been
asserted in the Derivative Actions by Plaintiffs, SCWorx, or by any other shareholder of SCWorx against each and every Defendant and
the Released Persons, arising out of, relating to, or based upon the facts, transactions, matters, events, occurrences, acts, disclosures,
statements, SEC filings, practices, omissions, or failures to act that were alleged or referred to in the complaints filed in the Derivative
Actions; and (ii) any claims in connection with, based upon, arising out of, or relating to the Settlement, but excluding any claims
to enforce the Settlement set forth in this Stipulation.

 

1.26 “Released
Persons” means, collectively, SCWorx, the Individual Defendants, and their Related Persons. “Released Person” means,
individually, any of the Released Persons.

 

1.27 “Releasing
Parties” means Plaintiffs, Current SCWorx Shareholders (solely in their capacity as SCWorx shareholders), Plaintiffs’ Counsel,
and SCWorx. “Releasing Party” means, individually, any of the Releasing Parties.

 

1.28 “SCWorx”
or the “Company” means nominal defendant SCWorx Corp. and its affiliates, subsidiaries, predecessors, successors, and assigns.

 

1.29 “Settlement”
means the settlement and compromise of the derivative claims as provided for in this Stipulation.

 

1.30 “Settlement
Hearing” means the hearing set by the Court to consider final approval of the Settlement.

 

    11

     

    

 

1.31 “Unknown
Claims” means any Released Claim(s) that any Releasing Party does not know of or suspect to exist in his, her, or its favor at
the time of the Settlement of the Released Persons, including, without limitation, those claims that, if known by him, her, or it, might
have affected his, her, or its settlement with and release of the Released Persons or might have affected his, her, or its decision whether
to object to this Settlement. With respect to any and all Released Claims, the Parties stipulate and agree that, upon the Effective Date,
the Releasing Parties shall expressly waive and relinquish, and each Current SCWorx Shareholder shall be deemed to have and by operation
of the Judgment shall have expressly waived and relinquished to the fullest extent permitted by law, the provisions, rights and benefits
conferred by and under California Civil Code § 1542, and any other law of the United States or any state or territory of the United
States, or principle of common law, which is similar, comparable or equivalent to California Civil Code § 1542, which provides:

 

A
GENERAL RELEASE DOES NOT EXTEND TO CLAIMS THAT THE CREDITOR OR RELEASING PARTY DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR
AT THE TIME OF EXECUTING THE RELEASE AND THAT, IF KNOWN BY HIM OR HER, WOULD HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE
DEBTOR OR RELEASED PARTY.

 

The
Releasing Parties acknowledge that they and Current SCWorx Shareholders may hereafter discover facts in addition to or different from
those now known or believed to be true by them, with respect to the subject matter of the Released Claims, but it is the intention of
the Parties that the Releasing Parties, and all Current SCWorx Shareholders shall be deemed to and by operation of the Judgment shall
completely, fully, finally, and forever compromise, settle, release, discharge, and extinguish any and all Released Claims, known or
unknown, suspected or unsuspected, contingent or absolute, accrued or unaccrued, apparent or unapparent, which do now exist, or heretofore
existed, or may hereafter exist, upon any theory of law or equity now existing or coming into existence in the future, and without regard
to the subsequent discovery of additional or different facts. The Parties acknowledge that the foregoing waiver was separately bargained
for and is a key element of the Stipulation of which this release is a part.

 

		2.	TERMS
OF THE SETTLEMENT

 

2.1 As
a result of the filing, pendency, and settlement of the Derivative Actions, within sixty (60) days of the date that the Court enters
the Judgment, the Company, or the Board, as applicable, shall implement the Reforms, which are set forth in Exhibit A attached hereto.
The Reforms shall remain in effect for no less than five (5) years after the Effective Date.

 

2.2 SCWorx
acknowledges and agrees that the filing, pendency, and settlement of the Derivative Actions was the primary factor in the Company’s
decision to adopt and implement the Reforms, which comprise new practices. SCWorx also acknowledges and agrees that the Reforms confer
substantial benefits to SCWorx and SCWorx’s shareholders.

 

    12

     

    

 

		3.	APPROVAL
AND NOTICE

 

3.1 Promptly
after execution of this Stipulation, the Federal Plaintiffs and Defendants shall submit this Stipulation together with its exhibits to
the Court and shall jointly apply for entry of an order (the “Preliminary Approval Order”), substantially in the form of
Exhibit B attached hereto, requesting: (i) preliminary approval of the Settlement set forth in this Stipulation; (ii) approval of the
form and manner of providing notice of the Settlement to Current SCWorx Shareholders; and (iii) a date for the Settlement Hearing.

 

3.2 SCWorx
shall undertake the administrative responsibility for giving notice to Current SCWorx Shareholders and shall be solely responsible for
paying the costs and expenses related to providing notice of the Settlement to Current SCWorx Shareholders. Within ten (10) business
days after the entry of the Preliminary Approval Order, SCWorx shall: (1) post a copy of the Notice and the Stipulation, with its exhibits,
on the Investor Relations page of the Company’s website; (2) file the Notice and the Stipulation, with its exhibits, with the SEC
as exhibits to a Form 8-K; and (3) issue the Notice in a press release. The Notice shall provide a link to the Investor Relations page
of SCWorx’s website where the Notice and Stipulation with its exhibits, may be viewed, which link shall be maintained through the
date of the Settlement Hearing. The Parties believe the content and manner of the notice, as set forth in this paragraph, constitutes
adequate and reasonable notice to Current SCWorx Shareholders pursuant to applicable law and due process. No later than twenty (20) calendar
days following entry of the Preliminary Approval Order, Defendants’ Counsel shall file with the Court an appropriate affidavit
or declaration with respect to filing, issuing, and posting of the notice of the Settlement.

 

3.3 Pending
the Effective Date, all proceedings in the Derivative Actions shall be stayed except as otherwise provided herein.

 

    13

     

    

 

		4.	ATTORNEYS’
FEES AND REIMBURSEMENT OF EXPENSES

 

4.1 After
negotiating the material terms of the Settlement, the Parties, with the assistance of the Mediator, began separate negotiations regarding
the attorneys’ fees and expenses to be paid to Plaintiffs’ Counsel.

 

4.2 In
recognition of the substantial benefits conferred upon SCWorx as a result of the Reforms and Plaintiffs’ and Plaintiffs’
Counsel’s efforts in connection with the Derivative Actions, the Individual Defendants shall cause their D&O insurers to pay
three hundred thousand dollars ($300,000) to Plaintiffs’ Counsel for their attorneys’ fees and costs (the “Fee and
Expense Amount”), subject to Court approval.

 

4.3 The
Fee and Expense Amount, or such other amount as may be awarded by the Court, shall constitute final and complete payment for Plaintiffs’
attorneys’ fees and expenses that have been incurred or will be incurred in connection with the Derivative Actions. Within thirty
(30) calendar days after the date of entry of the Preliminary Approval Order, the Individual Defendants shall cause their D&O insurers
to pay or cause to be paid the Fee and Expense Amount to the escrow account of The Brown Law Firm, P.C. (“Escrow Account”).
Plaintiffs’ Counsel shall promptly provide to Defendants’ Counsel, after the date of entry of the Preliminary Approval Order,
all necessary payment details to accomplish payment of the Fee and Expense Amount to the Escrow Account via wire transfer or check, and
an executed Form W-9.

 

4.4 The
Fee and Expense Amount, to the extent approved by the Court, shall be released to Plaintiffs’ Counsel from the Escrow Account upon
entry of an order by the Court approving the fee award, notwithstanding any potential appeals.

 

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4.5 If
the Fee and Expense Amount is reduced by the Court or following any appeal, Plaintiffs’ Counsel will pay the Defendants’
D&O insurers the amount by which the Fee and Expense Amount was reduced within thirty (30) days of such order.

 

4.6 In
no event shall Defendants or their D&O insurers be obligated to pay any fees or costs to Plaintiffs’ Counsel in excess of the
Fee and Expense Amount. Defendants, including SCWorx, shall have no responsibility for, and no liability with respect to, the allocation
of the attorneys’ fees and expenses awarded or distribution of attorneys’ fees and expenses from the Escrow Account.

 

4.7 Plaintiffs’
Counsel may apply to the Court for a service award of up to one thousand five hundred dollars ($1,500) for each of the Plaintiffs (“Service
Awards”), only to be paid upon Court approval, and to be paid from the Fee and Expense Amount in recognition of Plaintiffs’
participation and effort in the prosecution of the Derivative Actions. Defendants shall not oppose Plaintiffs’ Counsel’s
application for the Service Awards. The failure of the Court to approve any Service Award, in whole or in part, shall have no effect
on the Settlement set forth in this Stipulation.

 

		5.	RELEASES

 

5.1 Within
five (5) days after the Effective Date, the parties in the Delaware Action will file a stipulation of dismissal with prejudice, substantially
in the form of Exhibit E, attached hereto, in the Delaware Action.

 

5.2
Upon the Effective Date, to the extent that the Plaintiffs, Plaintiffs’ Counsel, and each of SCWorx’s shareholders
possess any of the Released Claims derivatively, Plaintiffs, Plaintiffs’ Counsel, and each of SCWorx’s shareholders
(solely in their capacity as SCWorx shareholders) shall be deemed to have, and by operation of the Judgment shall have, fully,
finally, and forever waived, released, relinquished, discharged and dismissed all Released Claims (including Unknown Claims) against
the Released Persons, including any and all claims (including Unknown Claims) against the Released Persons arising out of, relating
to, or in connection with the defense, Settlement, or resolution of the Derivative Actions.

 

    15

     

    

 

5.3 Upon
the Effective Date, to the extent Plaintiffs, Plaintiffs’ Counsel, and each of SCWorx’s shareholders possess any of the Released
Claims derivatively, Plaintiffs, Plaintiffs’ Counsel, and each of SCWorx’s stockholders (solely in their capacity as SCWorx
shareholders) shall be forever barred, estopped, and enjoined from commencing, instituting, or prosecuting any of the Released Claims
(including Unknown Claims) or any action or other proceeding against any of the Released Persons based on the Released Claims, or any
action or proceeding arising out of, relating to, or in connection with the Released Claims or the filing, prosecution, defense, settlement,
or resolution of the Derivative Actions. Nothing herein shall in any way impair or restrict the rights of any Party to enforce the terms
of this Stipulation.

 

5.4 Upon
the Effective Date, SCWorx, shall be deemed to have, and by operation of the Judgment shall have, fully, finally, and forever released,
relinquished, and discharged all Released Claims (including Unknown Claims) against the Released Persons.

 

5.5 Upon
the Effective Date, SCWorx shall be forever barred, estopped, and enjoined from commencing, instituting, or prosecuting any of the Released
Claims (including Unknown Claims) or any action or other proceeding against any of the Released Persons based on the Released Claims,
or any action or proceeding arising out of, relating to, or in connection with the Released Claims or the filing, prosecution, defense,
settlement, or resolution of the Derivative Actions. Nothing herein shall in any way impair or restrict the rights of any Party to enforce
the terms of this Stipulation.

 

5.6 Upon
the Effective Date, each of the Released Persons shall be deemed to have fully, finally, and forever released, relinquished, and discharged
Plaintiffs and their Related Persons, Plaintiffs’ Counsel and their Related Persons, and SCWorx’s shareholders (solely in
their capacity as SCWorx shareholders) and their Related Persons from all claims (including Unknown Claims), arising out of, relating
to, or in connection with the institution, prosecution, assertion, settlement, or resolution of the Derivative Actions or the Released
Claims. Nothing herein shall in any way impair or restrict the rights of any Party to enforce the terms of this Stipulation.

 

		6.	CONDITIONS OF SETTLEMENT;
                                                                                                                                                                  EFFECT OF DISAPPROVAL, CANCELLATION, OR TERMINATION

 

6.1 The
Effective Date of this Stipulation shall be conditioned on the occurrence of all of the following events:

 

a. Court
approval of the content and method of providing notice of the proposed Settlement to Current SCWorx Shareholders, and the subsequent
dissemination pursuant thereto of the notice of the proposed Settlement to Current SCWorx Shareholders;

 

b. Court
entry of the Judgment, in all material respects in the form set forth as Exhibit D annexed hereto, approving the Settlement and dismissing
the Consolidated Action with prejudice, without awarding costs to any party, except as provided herein;

 

c. payment
of the Fee and Expense Amount in accordance with Section IV (¶¶4.1-4.3); and

 

d.
the passing of the date upon which the Judgment becomes Final.

 

6.2 If
any of the conditions specified above in Section IV, ¶6.1 are not met, then this Stipulation shall be canceled and terminated subject
to Section IV, ¶6.3, unless counsel for the Parties mutually agree in writing to proceed with this Stipulation.

 

    16

     

    

 

6.3 If
for any reason the Effective Date of this Stipulation does not occur or the Delaware Action is not dismissed with prejudice, or if this
Stipulation is in any way canceled, terminated or fails to become Final in accordance with its terms: (a) all Parties shall be restored
to their respective positions in the Derivative Actions as of the date of this Stipulation; (b) all releases delivered in connection
with this Stipulation shall be null and void, (other than those set forth in Section IV, Paragraphs 1.1-1.31, 4.3-4.5, 6.2-.6.3, 7.3,
7.6-7.16, 7.20); (c) the Fee and Expense Amount paid to Plaintiffs’ Counsel shall be refunded and returned to the Defendants’
D&O insurers within thirty (30) days of receiving notice from Defendants or from a court of appropriate jurisdiction; and (d) all
negotiations, proceedings, documents prepared, and statements made in connection herewith shall be without prejudice to the Parties,
shall not be deemed or construed to be an admission by a Party of any act, matter, or proposition, and shall not be used in any manner
for any purpose in any subsequent proceeding in the Consolidated Action, the Delaware Action, or in any other proceeding for any purpose.

 

		7.	MISCELLANEOUS
PROVISIONS

 

7.1 The
Parties: (a) acknowledge that it is their intent to consummate this Stipulation; and (b) agree to cooperate to the extent reasonably
necessary to implement the terms and conditions of this Stipulation and to effectuate and to exercise their best efforts to accomplish
the foregoing terms and conditions of this Stipulation.

 

7.2
The Parties intend this Settlement to be a final and complete resolution of all disputes between them with respect to the Derivative
Actions and Released Claims. The Settlement comprises claims that are contested and shall not be deemed an admission by any Party as
to the merits of any claim, allegation, or defense. Subject to, and conditional on, the Court’s final approval of the
Settlement contemplated herein, the Parties agree that each has complied fully with the applicable requirements of good faith
litigation, the Derivative Actions are being settled voluntarily by the Defendants, and no Parties shall take the position that the
Derivative Actions were brought or defended in bad faith or in violation of Rule 11 of the Federal Rules of Civil Procedure or its
state law counterparts.

 

    17

     

    

 

7.3 Neither
this Stipulation, including the annexed exhibits, nor the Settlement, nor any act performed or document executed pursuant to or in furtherance
of this Stipulation or the Settlement: (i) is or may be deemed to be or may be offered, attempted to be offered or used in any way by
the Parties or any other Person as a presumption, a concession or an admission of, or evidence of, any fault, wrongdoing, liability,
or non-liability of the Parties or Released Persons, or of the validity or infirmity of any Released Claims; (ii) is or may be deemed
to be or may be offered, attempted to be offered or used in any way by the Parties or any other Person as a presumption, a concession,
an admission, or evidence of any fault, omission, wrongdoing or liability of any of the Parties in any other actions or proceedings,
whether civil, criminal, or administrative, other than to enforce the terms therein.

 

7.4 Plaintiffs
have not assigned, encumbered or in any manner transferred in whole or in part any of the Released Claims.

 

7.5 All
agreements made and orders entered during the course of the Derivative Actions relating to the confidentiality of information and documents
shall survive this Stipulation.

 

7.6 This
Stipulation may be modified or amended only by a writing signed by the signatories hereto.

 

7.7
This Stipulation shall be deemed drafted equally by all Parties.

 

    18

     

    

 

7.8 No
representations, warranties, or inducements have been made to any of the Parties concerning this Stipulation or its exhibits other than
the representations, warranties, and covenants contained and memorialized in such documents.

 

7.9 Each
counsel or other Person executing this Stipulation or its exhibits on behalf of any of the Parties hereby warrants that such Person has
the full authority to do so.

 

7.10 The
exhibits to this Stipulation are material and integral parts hereof and are fully incorporated herein by this reference.

 

7.11 This
Stipulation and the exhibits attached hereto constitute the entire agreement among the Parties with respect to the subject matter hereof
and supersede all prior and contemporaneous oral and written agreements and discussions.

 

7.12 This
Stipulation shall be read and interpreted according to its plain meaning and any ambiguity shall not be construed against any Party.
It is expressly agreed by the Parties that the judicial rule of construction that a document should be more strictly construed against
the draftsperson thereof shall not apply to any provision of this Stipulation. In the event that there exists a conflict or inconsistency
between the terms of this Stipulation and the terms of any exhibit hereto, the terms of this Stipulation shall prevail.

 

7.13 This
Stipulation may be executed in one or more counterparts, including by signature transmitted electronically, by facsimile or e-mailed
PDF files. Each counterpart, when so transmitted, shall be deemed to be an original, and all such counterparts together shall constitute
the same instrument.

 

7.14
This Stipulation shall be considered to have been negotiated, executed and delivered, and to be wholly performed, in the State of
New York, and the rights and obligations of the parties to this Stipulation shall be construed and enforced in accordance with, and
governed by, the internal, substantive laws of the State of New York without giving effect to that State’s choice of law
principles.

 

    19

     

    

 

7.15 Without
affecting the finality of the Judgment entered in accordance with this Stipulation, the Court shall retain jurisdiction to implement
and enforce the terms of the Stipulation and the Judgment and to consider any matters or disputes arising out of or relating to the Settlement,
and the Parties submit to the jurisdiction of the Court for purposes of implementing and enforcing the Settlement embodied in the Stipulation
and Judgment, and for matters or disputes arising out of or relating to the Settlement.

 

7.16 Pending
the Effective Date or the termination of the Stipulation according to its terms, Plaintiffs and SCWorx shareholders, and anyone who acts
or purports to act on their behalf, are barred and enjoined from commencing, prosecuting, instigating, or in any way participating in
the commencement or prosecution of any action asserting any Released Claims derivatively against any of the Released Persons in any court
or tribunal.

 

7.17 Any
planned, proposed, or actual sale, merger, or change-in-control of SCWorx shall not void this Stipulation. The Stipulation shall run
to the Parties’ respective successors-in- interest. In the event of a planned, proposed, or actual sale, merger, or change-in-control
of SCWorx, the Parties shall continue to seek court approval of the Settlement expeditiously, including, but not limited to, the Settlement
terms reflected in this Stipulation and the Fee and Expense Amount.

 

7.18
In the event any proceedings by or on behalf of SCWorx, whether voluntary or involuntary, are initiated under any chapter of the
United States Bankruptcy Code, including an act of receivership, asset seizure, or similar federal or state law action
(“Bankruptcy Proceedings”), the Parties agree to use their reasonable best efforts to obtain all necessary orders,
consents, releases, and approvals for effectuation of this Stipulation in a timely and expeditious manner. In the event of any
Bankruptcy Proceedings by or on behalf of SCWorx, the Parties agree that all dates and deadlines set forth herein will be extended
for such periods of time as are necessary to obtain necessary orders, consents, releases and approvals from the bankruptcy court to
carry out the terms and conditions of the Stipulation.

 

    20

     

    

 

7.19 After
prior notice to the Court, but without further order of the Court, the Parties may agree to reasonable extensions of time to carry out
any provisions of this Stipulation.

 

7.20 Any
dispute arising out of or relating to the Settlement shall be resolved by the Mediator, or by a mutually agreed upon private neutral,
first by way of mediation and, if unsuccessful, then by way of final, binding, non-appealable resolution.

 

IN
WITNESS WHEREOF, the Parties have caused the Stipulation to be executed by their duty authorized attorneys and dated February 15, 2022.

 

	Dated: February 15, 2022	THE ROSEN LAW FIRM, P.A
	 	 
	 	
	 	Phillip Kim
	 	275 Madison Avenue, 40th Floor 

New York, NY 10016 

Telephone: (212) 686-1060
	 	E-mail: pkim@rosenlegal.com
	 	 
	Dated: February 15, 2022	THE BROWN LAW FIRM, P.C.
	 	 
	 	/s/ Timothy Brown
	 	Timothy Brown
	 	767 Third Avenue, Suite 2501 
 New York, NY 1017

        Telephone: (516) 922-5427

	 	E-mail: tbrown@thebrownlawfirm.net
	 	 
	 	Co-Lead Counsel for Federal Plaintiffs

 

    21

     

    

 

	Dated: February 15. 2022	GAINEY McKENNA & EGLESTON
	 	 
	 	/s/ Thomas J. McK na
	 	Thomas J. McK na

        501 Fitlh Avenue. 19th Floor
 New York.NY 10017

	 	Telephone: (212) 983-1300 

Email: tjmckenna@gme-law.com
	 	 
	 	Counsel for f’laint/ff Hemrita Zarins
	 	 
	Dated: February 15. 2022	KING & SPALDING LLP
	 	 
	 	 
	 	Paul R. Bcssene 
	 	Michael J. Biles
	 	I 185 Avenueof the Amcricas
	 	New York.NY 10036 
	 	Tel:(212) 556-2100
	 	Email: pbessene@kslaw.com
	 	           mbiles@kslaw.com
	 	 
	 	Counsel.for D(!(endant Marc S. Scltessel
	 	 
	Dated: February 15. 2022	LAW OFFICES OF CAROLER. BERNSTEIN
	 	 
	 	 
	 	Carole R. Bernstein

	 	41 Maple A venue North 

Westport, CT 06880
	 	Tel.:(203) 255-8698
	 	Email: cbemsteinesq@gmail.com
	 	 
	 	Counsel for Nominal Defendant SCWorx
	 	 
	Dated: February 15. 2022	PASHMAN STEIN WALDER HAYDEN, P.C.
	 	 
	 	 
	 	BruceS. Rosen 

	 	Bell Works
	 	101 Crawfords Comer Road. Suite 4202

 

    22

     

    

 

	Dated: February 15, 2022	GAINEY McKENNA & EGLESTON
	 	 
	 	 
	 	Thomas J. McKenna
	 	501 Fifth Avenue, 19th Floor 

    New York, NY 10017 

    Telephone: (212) 983-1300 

    Email: tjmckenna@gme-law.com
	 	 
	 	Counsel for Plainti.f/Hemrita Zarins
	 	 
	Dated: February 15, 2022	KING & SPALDING LLP
	 	 
	 	/s/ Paul R
    Bessette
	 	Paul R Bessette 

    Michael J. Biles
	 	1185 Avenue of the Americas

    New York, NY 10036
	 	Tel: (212) 556-2100
	 	Email: pbessette@kslaw.com
	 	           mbiles@kslaw.com
	 	 
	 	Counsel for Defendant Marc S. Schessel
	 	 
	Dated: February 15, 2022	LAW OF.FICES OF.CAROLER. BERNSTEIN
	 	 
	 	/s/ Carafe
    ernstein
	 	Carafe ernstein
	 	41 Maple Avenue North
	 	Westport, CT 06880
	 	Tel.: (203) 255-8698
	 	Email: cbernsteinesq@gmail.com
	 	 
	 	Counsel for Nominal Defendant SCWorx
	 	 
	Dated: February 15, 2022	PASHMAN STEIN WALDER HAYDEN,P.C.
	 	 
	 	/s/ Bruce
    S. Rosen
	 	Bruce S. Rosen
	 	Bell Works
	 	101 Crawfords Corner Road, Suite 4202
	 	Holmdel, NJ 07733
	 	Telephone: (732) 852-2481
	 	Telephone:
        (973) 457-0123

        Email: brosen@pashmanstein.com

	 	 
	 	Counsel for Defendants Charles K. Miller, Robert
    Christie, and Steven Wallitt

 

    23

     

    

 

IN
THE UNITED STATES DISTRICT COURT 

FOR THE SOUTHERN DISTRICT OF NEW YORK

 

	IN RE SCWORX CORP. DERIVATIVE 

	Lead
Case No. 1:20-cv-04554-JGK
	LITIGATION	EXHIBIT A

 

CORPORATE
GOVERNANCE REFORMS

 

Within
sixty (60) days of the date that the United States District Court for the Southern District of New York (“Court”) enters
the Judgment in the above-captioned action, the Board of Directors (“Board”) of SCWorx Corp. (“SCWorx” or the
“Company”) shall adopt resolutions and amend Board committee charters and/or its Bylaws1 to ensure adherence to
the following changes, modifications, and improvements to the Company’s corporate governance and business ethics practices (the
“Reforms”), which shall remain in effect for no less than five (5) years after the Effective Date.2

 

SCWorx
acknowledges and agrees that the filing, pendency, and settlement of the Derivative Actions was the primary factor in the Company’s
decision to adopt and implement the Reforms. SCWorx also acknowledges and agrees that the Reforms confer substantial benefits to SCWorx
and SCWorx’s shareholders.

 

		1.	IMPROVEMENTS
TO CORPORATE TRANSPARENCY

 

In
addition to the disclosure and internal control weaknesses identified and discussed in the Derivative Actions, the Company continues
to display weaknesses in its disclosures, or lack thereof, to the investing public. By way of example:

 

(a) The
Company’s Nominating and Corporate Governance Committee Charter refers to SCWorx’s corporate governance guidelines (including
that it is required to “develop and recommend to the Board for approval, and review on an ongoing basis the adequacy of, the corporate
governance guidelines applicable to the Company.”). No Corporate Governance Guidelines are published on the Company website and
none apparently exist.

 

 

 

		1	The
term “Bylaws” refers to the Amended and Restated Bylaws of Alliance MMA, Inc. attached as Exhibit 3.3 to the Company’s
annual report for the fiscal year ended December 31, 2020 on Form 10-K filed with the Securities and Exchange Commission (“SEC”)
on May 19, 2021, as amended through the date of this Agreement.

		2	Except
as otherwise expressly provided below or as the context otherwise requires, all capitalized terms contained herein shall have the same
meanings and/or definitions as set forth in the Stipulation of Settlement dated February 15, 2022.

 

    -1-

     

    

 

(b) All
of the Company’s corporate governance documents published on its website are undated.

 

The
Company shall correct these and all other similar deficiencies promptly (and thereafter, timely) by filing appropriate Form 8-K’s,
issuing press releases, and/or publishing revised corporate governance documents on its website.

 

		2.	BOARD
OF DIRECTORS 

 

The
Board shall adopt the following reforms as they relate to its composition and practices:

 

(a) Procedure
for Identifying New Independent Directors: Candidates for the Board shall be identified pursuant to the following procedures, which
are designed to ensure the identification of qualified, experienced, independent, and effective directors:

 

(1) The
Nominating and Corporate Governance Committee, as reconstituted herein, shall when evaluating potential Board candidates, consider the
following among other qualifications: (i) substantial executive, board-level, and/or legal or audit experience, with particular attention
paid to experience at healthcare technology and/or public companies; (ii) demonstrated financial and/or business acumen; (iii) integrity
and high ethical standards; (iv) sufficient time to devote to the Company’s business; (v) relevant public company compliance experience;
and (vi) demonstrated ability to think independently and work collaboratively; and

 

(2) Any
proposed independent director candidate that does not meet the applicable Nasdaq independence requirements and the additional independence
requirements required in subparagraph (c) hereof shall be disqualified.

 

(b) Lead
Independent Director: The Company shall adopt a formal policy providing that if at any point the Chairman of the Board is not an
“independent” director, then the independent members of the Board shall select one independent director to serve as the Lead
Independent Director, who shall act as liaison with the Chairman and shall have the following specific duties:

 

(1) Working
directly with Company management to ensure the preparation of meeting agendas, materials and schedules, and seeking input from all directors
as to the preparation of the agendas for Board and committee meetings;

 

(2) Assessing
and advising the Board as to the quality, quantity, and timeliness of the information provided to the Board by Company management to
assist the Board in performing its oversight duties;

 

(3) Developing
the agenda for, and moderating executive sessions of, the Board, and acting as principal liaison between the Board and management on
sensitive issues;

 

(4) Making
recommendations to the Chairman of the Board concerning the retention and supervision of outside consultants retained by the full Board;

 

    -2-

     

    

 

(5) Acting
as liaison between the independent directors and the Chairman of the Board and management, and regularly consulting with the chairpersons
of the Audit Committee, the Compensation Committee, and the Nominating and Corporate Governance Committee;

 

(6) Leading
the Board’s and the Compensation Committee’s evaluation of the performance of the Chief Executive Officer (“CEO”)
in order to confirm whether the CEO is providing effective leadership for the Company in the long and short-term and determining CEO
compensation; and

 

(7)
Guiding the CEO succession planning process.

 

(c) Enhanced
Board Independence: The Board shall create and adopt Corporate Governance Guidelines to require that 75% of the members of the Board
be independent within the meaning of the NASDAQ listing standards at all times. “Independence” under this clause shall also
require that any potential member of the Board:

 

(1) has
not been employed by the Company or by any of its subsidiaries or affiliates in any capacity within the last five (5) calendar years;

 

(2) does
not own or control, directly or indirectly, five percent (5%) or more of the voting power of the Company;

 

(3) has
not received, during the current calendar year or any of the three (3) immediately preceding calendar years, remuneration, directly or
indirectly, other than de minimis remuneration (less than $5,000) as a result of service as, or being affiliated with, an entity
that serves as: (i) an advisor, consultant, or legal counsel to the Company or to a member of the Company’s senior management;
or (ii) a significant customer, supplier, or partner of the Company;

 

(4) has
no personal service contracts with the Company or any member of the Company’s senior management;

 

(5) is
not affiliated with a not-for-profit entity that receives significant contributions from the Company or the Company’s executive
officers;

 

(6) during
the current calendar year or any of the three (3) immediately preceding calendar years, has not had any business relationship with the
Company for which the Company has been required to make disclosure under Regulation S-K of the SEC, other than for service as a director
or for which relationship no more than de minimis remuneration was received in any one such year;

 

(7) is
not employed by a private or public company at which an executive officer of the Company serves as a director;

 

(8) has
no interest in any investment that overlaps with an investment by the Company and/or its senior management, other than as a passive investor
or any interest in the Company or its subsidiaries; and

 

    -3-

     

    

 

(9) is
not a member of the immediate family of any person who fails to satisfy the qualifications described above.

 

(10) An
independent director who loses his or her independent status, thereby causing the Company to have fewer than the required number of independent
directors, shall immediately resign from the Board. Each independent director shall annually certify in writing that he or she is independent.

 

(11) Together
with the Nominating and Corporate Governance Committee, the Board shall review all disclosures regarding director independence in its
Proxy Statement for each annual meeting of stockholders. Such review shall include discussions with each director who may qualify as
independent and an evaluation of any relationships that might compromise the director’s independence and must be sufficient for
the Board to determine that the disclosures in each Proxy Statement accurately describe information concerning each director’s
background, employment and affiliations, and independence.

 

(d) Limitation
on Other Boards: The Board shall amend its governance documents as necessary to require that all independent directors may sit on
no more than two (2) additional boards of publicly traded companies, and that the CEO may sit on no more than one (1) other such board.
SCWorx’s directors and officers may not serve as Board members at companies that directly compete with SCWorx.

 

(e) Mandatory
Attendance at Annual Meetings: Per SCWorx’s 2021 Proxy Statement, “[w]e encourage our directors to attend our special
and annual stockholders’ meetings.” The Company shall institute a policy that, absent extraordinary circumstances, each member
of the Board shall attend each annual shareholder meeting either in person or remotely, and, during the annual shareholder meeting, shareholders
shall have the right to ask questions, both orally and in writing, and receive answers and discussion from the CEO and members of the
Board. Such discussion shall take place regardless of whether those questions were submitted in advance.

 

		3.	ENHANCEMENTS
TO THE CHIEF FINANCIAL OFFICER POSITION

 

The
enhanced responsibilities of the Chief Financial Officer (“CFO”) shall include oversight and administration of SCWorx’s
corporate governance policies, fostering a culture that integrates compliance and ethics into business processes and practices through
awareness and training, maintaining and monitoring a system for accurate public and internal disclosures and reporting, and investigating
potential compliance and ethics concerns. The CFO shall report in writing promptly to the Governance Committee (defined below) and Audit
Committee any credible allegations of compliance and ethics concerns or financial fraud or reporting violations.

 

The
CFO shall be primarily responsible for managing SCWorx’s ethics and compliance program and for assisting the Board in fulfilling
its oversight duties with regard to SCWorx’s compliance with applicable laws, regulations, and the dissemination of true and accurate
information. In this regard, the CFO shall report directly to the Governance Committee and work with other Board committees as appropriate
to facilitate the Board’s oversight responsibilities.

 

    -4-

     

    

 

The
responsibilities and duties of SCWorx’s CFO shall include the following:

 

(a) Working
with the Governance Committee to evaluate and define the goals of the Company’s ethics and compliance program in light of trends
and changes in laws that may affect SCWorx’s compliance with laws relating to disclosure of the Company’s business, business
prospects, and risk exposure;

 

(b) Managing
and overseeing SCWorx’s ethics and compliance program, and communicating with and informing the Governance Committee regarding
progress toward meeting program goals;

 

(c) (i)
assessing organizational risk for misconduct and noncompliance with applicable laws and regulations; and (ii) reporting material risks
relating to compliance or disclosure issues to the Governance Committee; and

 

(d) Working
with the Audit Committee to evaluate the adequacy of SCWorx’s internal controls over compliance and developing proposals for improving
these controls for submission to such Committee. This includes meeting with the Audit Committee at least once every quarter to discuss
ongoing and potential litigation and compliance issues.

 

		4.	IMPROVEMENTS
TO THE AUDIT COMMITTEE AND ITS CHARTER

 

SCWorx
shall adopt a resolution to amend the Audit Committee Charter. The amended Audit Committee Charter shall be posted on the Company’s
website and shall include its latest revision date.

 

The
Audit Committee Charter shall be amended as follows:

 

(a)
The Audit Committee shall be comprised of at least three independent directors;

 

(b) The
Audit Committee shall meet at least four (4) times annually and in separate executive sessions with the Company’s management and
independent auditor. The CFO will not be present in such executive session meetings. The Audit Committee shall meet at least quarterly
in separate sessions with the Company’s outside counsel to review any legal matters pertinent to carrying out its duties;

 

(c) The
Audit Committee shall review the Code of Code of Conduct at least annually, and monitor compliance with the Code of Conduct; and

 

(d) The
Audit Committee shall solicit the input of department representatives as necessary to review the accuracy of public disclosures related
to issues within their expertise, including, without limitation: (i) operations, enterprise risks, and compliance matters that may have
a material impact on the Company’s operational performance, financial health, balance of risk, stability, or liquidity; or (ii)
any other matter required to be disclosed under state and federal securities laws and regulations.

 

    -5-

     

    

 

		5.	IMPROVEMENTS
TO THE NOMINATING AND CORPORATE GOVERNANCE COMMITTEE AND ITS CHARTER

 

SCWorx
shall adopt a resolution to amend the Nominating and Corporate Governance Committee Charter. The amended Nominating and Corporate Governance
Committee Charter shall be posted on the Company’s website and shall include its latest revision date. The Nominating and Corporate
Governance Committee Charter shall be amended as follows:

 

(a) The
Nominating and Corporate Governance Committee (“Governance Committee”) shall consist of at least three (3) members, as opposed
to the currently required minimum of two (2) members;

 

(b) The
Governance Committee shall meet with each prospective new Board member prior to his or her nomination to the Board and then recommend
whether such individual shall be nominated for membership to the Board. Such review shall require, inter alia, a background check
of each candidate;

 

(c) Final
approval of a director candidate shall be determined by the full Board. Potential disqualifying conflicts of interests to be considered
shall include familial relationships with Company officers or directors, interlocking directorships, and substantial business, civic,
and/or social relationships with other members of the Board that could impair the prospective Board member’s ability to act independently
from the other Board members; and

 

(d) In
accordance with its duties to develop principles of corporate governance and recommend such principles to the Board, the Governance Committee
shall ensure that any agreed upon corporate governance principles or guidelines are promptly and widely available to the public, through
the Company’s website or otherwise.

 

The
Governance Committee shall also have the following enhanced responsibilities:

 

(a) The
Governance Committee shall, with the participation and assistance of the Compensation Committee and the Board’s independent Chairman,
conduct annual evaluations of the performance and effectiveness of the Company’s CFO, as it relates to compliance and risk management;

 

(b)
The Governance Committee shall be primarily responsible for the Company’s risk management policies and oversight of the
operation of the Company’s risk management framework. The Governance Committee shall be responsible for monitoring
SCWorx’s internal risk assessment and internal reporting conducted by SCWorx employees. The Governance Committee shall use
reasonable efforts to identify material risks relating to SCWorx’s compliance with all applicable laws and regulations,
including laws and regulations related to public disclosures regarding SCWorx’s business and business prospects. To ensure
that the Governance Committee is sufficiently informed to effectively fulfill these responsibilities, the Governance Committee shall
confer with the CFO. The Governance Committee shall also have free access to management and Company employees for the purpose of
identifying material risks relating to SCWorx’s aforesaid compliance. The Governance Committee shall advise the Board whenever
any material risks relating to SCWorx’s aforesaid compliance are identified, including specific recommendations regarding
mitigating these risks, as well as relevant considerations relating to SCWorx’s public disclosures of these risks;

 

    -6-

     

    

 

(c) The
Governance Committee shall be responsible for reviewing the Company’s periodic public reports and other public discourses to ensure
proper disclosure of risks and risk factors, including those arising from the Company’s business strategies. In the event that
such review reveals a false statement or omission of material fact in an issued periodic public report or other public disclosure, the
Governance Committee shall report the deficiency to the full Board;

 

(d) The
Governance Committee, with the assistance of the Audit Committee and the Company’s CFO, shall be responsible for monitoring compliance
with SCWorx’s Code of Conduct. In the event that a violation of the Code of Conduct is sufficiently material to trigger a disclosure
obligation, the Governance Committee shall report the violation to the full Board;

 

(e) The
Governance Committee shall report compliance issues that may have significant financial implications to the Audit Committee, and shall
also report compliance issues (including risks relating to compliance issues) that are sufficiently material to trigger a disclosure
obligation to the Audit Committee: The Governance Committee shall have the authority to retain separate and independent advisors or counsel
to aid in fulfilling its responsibilities under its charter, which shall be at SCWorx’s expense; and

 

(f) The
Governance Committee shall keep the Board apprised of its activities and shall directly advise the Board in detail of material findings
promptly. The Governance Committee shall be responsible for overseeing the maintenance and oversight of the Company’s Whistleblower
Policy, discussed hereunder. The Governance Committee shall ensure that all anonymous whistleblower complaints are provided to the Company’s
CFO, and that all complaints are completely and fully investigated by the CFO, and that any appropriate remedial action is taken based
on the results of the investigation. The Governance Committee and the CFO shall ensure that nonretaliation policies are instituted and
strictly complied with in order to protect any SCWorx employee who reports a complaint via the hotline.

 

		6.	IMPROVEMENTS
TO THE COMPENSATION COMMITTEE CHARTER

 

SCWorx
shall adopt a resolution to amend the Compensation Committee Charter. The amended Compensation Committee Charter shall be posted on the
Company’s website and shall include its latest revision date. The Compensation Committee Charter shall be amended as follows:

 

(a)
The Compensation Committee shall consist of at least three (3) members;

 

(b) In
determining director independence, the standards and requirements set forth herein shall be utilized and reflected in the Charter;

 

(c) In
determining, setting, or approving annual short-term compensation arrangements, the Compensation Committee shall take into account the
particular executive’s performance as it relates to both legal compliance and compliance with the Company’s internal policies
and procedures. This shall not affect payments or benefits that are required to be paid pursuant to the Company’s plans, policies,
or agreements; and

 

    -7-

     

    

 

(d) In
determining, setting, or approving termination benefits and/or separation pay to executive officers, the Compensation Committee shall
take into consideration the circumstances surrounding the particular executive officer’s departure and the executive’s performance
as it relates to both legal compliance and compliance with the Company’s internal policies and procedures. This shall not affect
payments or benefits that are required to be paid pursuant to the Company’s plans, policies, or agreements.

 

		7.	CREATION
OF CORPORATE GOVERNANCE GUIDELINES

 

No
Corporate Governance Guidelines are published on the Company website or included with its other corporate governance documents. SCWorx’s
2021 Proxy Statement provides in relevant part:

 

The
primary responsibilities of our Nominating and Corporate Governance Committee include:

 

		●	Assisting
the Board in, among other things, effecting Board organization, membership and function including identifying qualified Board nominees;
effecting the organization, membership and function of Board committees including composition and recommendation of qualified candidates;
establishment of and subsequent periodic evaluation of successor planning for the chief executive officer and other executive officers;
development and evaluation of criteria for Board membership such as overall qualifications, term limits, age limits and independence;
and oversight of compliance with applicable corporate governance guidelines[.] (Emphasis added.)

 

Regarding
Corporate Governance Guidelines, its Nominating and Corporate Governance Charter provides in relevant part:

 

The
Committee shall have the following authority and responsibilities:

 

*     *     *

 

To
develop and recommend to the Board a set of corporate governance guidelines applicable to the Company, to review these principles at
least once a year and to recommend any changes to the Board, and to oversee the Company’s corporate governance practices, including
reviewing and recommending to the Board for approval any changes to the other documents and policies in the Company’s corporate
governance framework, including its certificate of incorporation and by- laws.

 

*     *     *

 

To
develop and recommend to the Board for approval, and review on an ongoing basis the adequacy of, the corporate governance guidelines
applicable to the Company.

 

    -8-

     

    

 

The
Governance Committee shall create and publish on the Company website Corporate Governance Guidelines that comply with the governance
matters set forth herein, and which are otherwise consistent with all applicable laws, rules, and regulations. These guidelines shall
include its date of creation and most recent revision dates.

 

		8.	IMPROVEMENTS
TO THE CODE OF CONDUCT

 

SCWorx
shall amend its Code of Conduct to conform with and include the governance reforms contained herein. The Code of Conduct shall include
its date of creation and most recent revision dates.

 

		9.	EMPLOYEE
TRAINING IN RISK ASSESSMENT AND COMPLIANCE

 

SCWorx
shall amend its Code of Conduct and/or its Bylaws as necessary to require that SCWorx institute annual employee training concerning risk
assessment and compliance at SCWorx, as follows:

 

(a) Training
shall be mandatory for all directors, officers, and employees of SCWorx. Training shall be annual for all such persons, and in the event
a person is appointed or hired after the annual training for a particular year, a special training session shall be held for such individual
within sixty (60) business days of his or her appointment or hiring. Training shall include coverage of risk assessment and compliance,
the Code of Conduct, any and all manuals or policies established by SCWorx concerning legal or ethical standards of conduct to be observed
in connection with work performed for SCWorx (“SCWorx’s Policies”), and the laws and regulations regarding public disclosures.

 

		10.	RELATED
PARTY TRANSACTIONS

 

The
Company’s 2021 Proxy Statement states: “[o]ur policy is to enter into transactions with related parties on terms that are
on the whole no less favorable to us than those that would be available from unaffiliated parties at arm’s length.” No Corporate
Governance Guidelines are published on the Company website and none apparently exist. The Company Code of Conduct is also silent regarding
related party transactions.

 

In
accordance with this provision, SCWorx create a “Related Party Transactions Policy” that requires the following reporting
practices with respect to related party transactions:

 

(a) All
Board members and executive officers shall submit to the Audit Committee and the CFO an up-to-date list of companies in which they are
a director, an officer, and/or of which they own a controlling interest, and to promptly update the list when any changes occur;

 

(b)
The Audit Committee and the CFO shall implement procedures to ensure that any material transaction that SCWorx is contemplating that
would confer a monetary or other benefit to a party that is related to SCWorx or its officers will promptly be disclosed to the
Board. Materiality of such transactions and whether such transactions are with a party that is related to SCWorx or its officers
shall be determined by the factors set forth under Item 404(a) of Regulation S-K. The procedures shall include written disclosure to
the Board of the details of any such transaction including the nature of the relationship between the proposed counterparty and the
party related to SCWorx or its officers, the financial terms and other pertinent information;

 

    -9-

     

    

 

(c) In
determining whether a proposed related party transaction should be approved, the Board’s independent directors shall consider the
business purpose for the proposed transaction, the fairness of the transaction to the Company, and whether the proposed transaction impairs
the independence of any outside director or presents an improper conflict of interest for any SCWorx officer or director whether or not
they are involved in the transaction; and

 

(d) The
Related Party Transactions Policy shall be formalized, listed, and identified in each of the Company’s Proxy Statements, and shall
be published on the Company website and wherever other SCWorx corporate governance documents appear.

 

		11.	WHISTLEBLOWERS

 

The
Company has established a formal Whistleblower Policy, which shall henceforth be administered by the CFO, under the supervision of the
Governance Committee. The Company shall make such policy available to all employees. The CFO and Governance Committee shall be responsible
for overseeing the maintenance and oversight of SCWorx’s Whistleblower Policy and a dedicated Whistleblower Email Hotline (which
will go the CFO) (“Whistleblower Hotline”). The contact information for the Whistleblower Hotline will be provided to all
employees via electronic mail. Employees will be informed via email that the Whistleblower Hotline is a channel for employees to report
their concerns regarding, among other things, the integrity of SCWorx’s public disclosures, internal controls, auditing, financial
reporting, regulatory compliance, and other matters. Employees may also use this communication channel to report concerns relating to
ethical business or personal conduct, integrity, and professionalism.

 

		12.	POLICY
ON LOBBYING AND POLITICAL CONTRIBUTIONS

 

The
Company’s Code of Conduct contains a short provision forbidding the making of payments or gifts to foreign government officials
for the purposes of, among other things, influencing a decision to award or retain business. The Company shall amend the Code of Conduct
to further limit the use of corporate funds and other assets for governmental lobbying and political campaigns as follows:

 

(a) The
Board shall ensure that any Company lobbying or political activity is conducted solely for promoting the commercial interests of SCWorx
as a whole and is in the interests of its shareholders. The Board shall ensure that lobbying and political spending do not reflect narrow
political preferences of the Company’s executives that have little or no bearing on SCWorx’s own commercial performance.

 

    -10-

     

    

 

(b) The
Board shall provide a report, updated at least semiannually, detailing the Company’s use of corporate funds and other assets for
governmental lobbying and political campaigns (“Political Disclosure Report”). The Political Disclosure Report shall address:

 

(1)
SCWorx’s policies and procedures for making, with corporate funds or assets, contributions, and expenditures (direct or
indirect) to participate or intervene in any political campaign on behalf of (or in opposition to) any candidate for public office,
or influence the general public, or any segment thereof, with respect to an election or referendum;

 

(2) SCWorx’s
monetary and nonmonetary contributions and expenditures (direct or indirect) used in the manner described in section (a) above, including
the identity of the recipient as well as the amount paid to each, and the title(s) of the person(s) in the Company responsible for such
decision-making;

 

(3) SCWorx’s
lobbying positions on key policy issues and how these are reflected in written submissions to politicians, regulators, political parties,
trade associations, or civil society groups;

 

(4) the
names of lobbyist firms retained and key relationships with trade associations that engage in lobbying on the Company’s behalf;
and

 

(5) payments
to trade associations and other tax-exempt organizations used for political activities.

 

(c) The
Political Disclosure Report shall be posted in a conspicuous place on SCWorx’s website.

 

(d) Material
breaches of the Company’s policy on lobbying and political contributions shall be immediately reported to the Board, and the Board
shall have defined policies for dealing with material breaches.

 

(e) The
Board shall monitor the effectiveness of lobbying and political donations in terms of how this investment of time and resources benefits
the long-term interests of SCWorx and its shareholders.

 

CREDIT
FOR PRIOR ACTIONS

 

SCWorx
has taken the following actions since the commencement of the Derivative Actions to ensure that such issues do not occur again:

 

		●	Secured
three new outside directors (Alton Irby on March 16, 2021; John Ferrara and Steve Horowitz on August 11, 2021);

 

		●	Board
began working on plan for CEO to step down (September 2020), and the CEO stepped down (Effective January 19, 2021);

 

		●	Former
CEO was not renominated to Board in the Company’s April 27, 2021 Proxy Statement;

 

		●	Restructured
all Board committees (August 2021) (all new outside directors); and

 

		●	Promoted
experienced industry executive to Interim CFO (June 11, 2020), then to President/COO and Director (August 10, 2020), and finally to CEO
(May 28, 2021).

 

Due
to its current operational size, SCWorx cannot sustain an internal audit department. SCWorx has also taken the following actions to ensure
the timely and accurate filing of all financial documents, including but not limited to annual and quarterly financial reports (10-Ks
and 10-Qs).

 

		●	Engaged
new independent auditing firm (without material relationships to major shareholders/directors) (October 2020); and

 

		●	Hired
a new experienced Chief Financial Officer (November 2020).

 

The
commencement of the Derivative Actions was among the important factors in the Board’s decisions to implement the foregoing governance
reforms. SCWorx acknowledges and agrees that the foregoing governance reforms confer substantial benefits to SCWorx and SCWorx’s
shareholders.

 

    -11-

     

    

 

IN
THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK

 

	IN
RE SCWORX CORP. DERIVATIVE 	Lead Case No. 1:20-cv-04554-JGK

	LITIGATION	 

 

] PRELIMINARY
APPROVAL ORDER

 

This
matter came before the Court for a hearing on March 21, 2022. Federal Plaintiffs’ have made an unopposed motion, pursuant to Rule 23.1
of the Federal Rules of Civil Procedure, for an order: (i) preliminarily approving the proposed settlement (“Settlement”) of
stockholder derivative claims brought on behalf of SCWorx Corp. (“SCWorx,” or the “Company”) in accordance with the
Stipulation of Settlement dated February 15, 2022 (the “Stipulation”); (ii) approving the form and manner of the notice of
the Settlement; and (iii) setting a date for the Settlement Hearing.2

 

WHEREAS,
the Stipulation sets forth the terms and conditions for the Settlement, including, but not limited to a proposed Settlement and dismissal
with prejudice of the above captioned consolidated stockholder derivative action brought on behalf of SCWorx (the “Consolidated
Action”), as well as resolution of plaintiff Hemrita Zarin’s claims in the Delaware Action.

 

 

		1	“Federal
Plaintiffs” refers to plaintiffs Javier Lozano and Josstyn Richter in the above captioned consolidated stockholder derivative action.
Federal Plaintiffs, together with Henuita Zarins (who is plaintiff to a related shareholder derivative action pending in the State of
Delaware Comi of Chancery titled, Zarins, et al. v. Schessel, et al., Case No. 2020-0924-MTZ (the “Delaware Action”)
are collectively referred to as “Plaintiffs.”

		2	Except
as otherwise expressly provided below or as the context otherwise requires, all capitalized terms contained herein shall have the same
meanings and/or definitions as set forth in the Stipulation.

 

    -1-

     

    

 

WHEREAS,
the Court having: (i) read and considered Plaintiffs’ Unopposed Motion for Preliminary Approval of Derivative Settlement together with
the accompanying Memorandum of Law in Support; (ii) read and considered the Stipulation, as well as all the exhibits attached thereto;
and (iii) heard and considered arguments by counsel for the Parties in favor of preliminary approval of the Settlement;

 

WHEREAS,
the Court finds, upon a preliminary evaluation, that the proposed Settlement falls within the range of possible approval criteria, as
it provides a beneficial result for SCWorx and appears to be the product of serious, informed, non-collusive negotiations overseen by
an experienced mediator; and

 

WHEREAS,
the Court also finds, upon a preliminary evaluation, tbat SCWorx shareholders should be apprised of the Settlement through the Parties’
proposed form and means of notice, allowed to file objections, if any, thereto, and appear at the Settlement Hearing.

 

NOW,
THEREFORE, IT IS HEREBY ORDERED, ADJUDGED, AND DECREED AS FOLLOWS:

 

1. This
Court preliminarily approves, subject to further consideration at the Settlement Hearing described below, the Settlement as set forth
in the Stipulation as being fair, reasonable, and adequate.

 

2.
A hearing shall be held on June 29, 2022 at 2:30 p.m., before the Honorable John G. Koeltl, at the U.S. District Court for the
Southern District of New York, 500 Pearl Street, New York, New York 10007 (the “Settlement Hearing”), at which the Court
will determine: (i) whether the terms of the Stipulation should be approved as fair, reasonable, and adequate; (ii) whether all
Released Claims against the Released Persons should be fully and finally released;

 

    -2-

     

    

 

(iii)
whether the agreed-to Fee and Expense Amount as well as the Service Awards should be approved; and (iv) such other matters as the Court
may deem appropriate.

 

3. The
Court finds that the form, substance, and dissemination of information regarding the proposed Settlement in the manner set out in this
order (“Preliminary Approval Order”) constitutes the best notice practicable under the circumstances and complies fully with
Rule 23.1 of the Federal Rules of Civil Procedure and due process.

 

4. Within
ten (10) business days after the entry of this Order, SCWorx shall: (I) post a copy of the Notice and the Stipulation, with its exhibits,
on the Investor Relations page of the Company’s website; (2) file the Notice and the Stipulation, with its exhibits, with the U.S. Securities
and Exchange Commission as exhibits to a Form 8-K; and (3) issue the Notice in a press release. The Notice shall provide a link to the
Investor Relations page of SCWorx’s website where the Notice and Stipulation with its exhibits, may be viewed, which link shall be maintained
through the date of the Settlement Hearing.

 

5. All
costs incurred in the posting, filing, and issuing of the notice of the Settlement shall be paid by SCWorx, and SCWorx shall undertake
all administrative responsibility for the filing, issuing, and posting of the notice of the Settlement.

 

6. No
later than (20) calendar days following entry of this Order, Defendants’ Counsel shall file with the Court an appropriate affidavit or
declaration with respect to filing, issuing, and posting the notice of the Settlement as provided for in paragraph 4 of this Preliminary
Approval Order.

 

7. All
Current SCWorx Shareholders shall be subject to and bound by the provisions of the Stipulation and the releases contained therein, and
by all orders, determinations, and judgments
in the Consolidated Action concerning the Settlement, whether favorable or unfavorable to Current SCWorx Shareholders.

 

    -3-

     

    

 

8. Pending
the Effective Date or the te1mination of the Stipulation according to its terms, Plaintiffs and SCWorx shareholders, and anyone who acts
or purports to act on their behalf, are barred and enjoined from commencing, prosecuting, instigating, or in any way participating in
the commencement or prosecution of any action asserting any Released Claims derivatively against any of the Released Persons in any court
or tribunal.

 

9. Any
shareholder of SCWorx common stock may appear and show cause, if he, she, or it has any reason why the Settlement embodied in the Stipulation
should not be approved as fair, reasonable, and adequate, or why a judgment should or should not be entered hereon, or the Fee and Expense
Amount or Service Awards should not be awarded. However, no SCWorx shareholder shall be heard or entitled to contest the approval of
the proposed Settlement, or, if approved, the Judgment to be entered hereon, unless that SCWorx shareholder has caused to be filed, and
served on counsel as noted below, written objections stating all supporting bases and reasons for the objection, and setting forth proof,
including documentary evidence, of current ownership of SCWorx stock and ownership of SCWorx stock as of the date of the Stipulation.

 

    -4-

     

    

 

10. At
least twenty-one (21) days prior to the Settlement Hearing, any such person must file the written objection(s) and corresponding materials
with the Clerk of the Court, U.S. District Court for the Southern District of New York, 500 Pearl Street, New York, New York 10007 and
serve such materials by that date, to each of the following Parties’ counsel:

 

	Counsel for Plaintiffs:	Counsel for Defendants:
	 	 
	THE ROSEN LAW FIRM, P.A.	KING & SPALDING LLP
	Phillip Kim	Paul R. Bessette
	275 Madison Avenue, 40th Floor 

New York, NY 10016	1185 Avenue of the Americas

        New York, NY 10036

	Telephone: (212) 686-1060

E-mail: pkim@rosenlegal.com	Telephone: (212) 556-2100

 Email: pbessette@kslaw.com
	 	 
	THE BROWN LAW FIRM, P.C.	Counsel for Defendant Marc S. Schessel
	 	 
	Timothy Brown	LAW OFFICES OF CAROLER. 

BERNSTEIN
	767 Third Avenue, Suite 2501

 New York, NY 10017	Carole R. Bernstein

41 Maple Avenue North
	 Telephone: (516) 922-5427	 
	E-mail: tbrown@thebrownlawfam.net	Westport, CT 06880
	 	Telephone: (203) 255-8698 
	Co-Lead Counsel for Federal Plaintiffs	Email: cbemsteinesq@gmail.com
	 	 
	GAINEY Mc.KENNA & EGLESTON	
	Thomas J. McKenna	 
	501 Fifth Avenue, 19th Floor

 New York, NY 10017 

Telephone: (212) 983-1300 

Email: tjmckenna@gme-law.com	Counsel for nominal Defendant SCWorx Corp.

                                       

                                      PASHMAN STEIN WALDER HAYDEN, P.C.

	 	Bruce S. Rosen
	Counsel for Plaintiff Hemrita Zarins	Bell Works
	 	101 Crawfords Comer Road, Suite 4202
	 	Holmdel, NJ 07733
	 	Telephone: (732) 852-2481
	 	Telephone: (973) 457-0123
	 	Email: brosen@pashmanstein.com
	 	 
	 	Counsel for Defendants Charles K.

                                      Miller, Robert Christie, and Steven Wallitt

 

11. Only
shareholders who have filed with the Court and sent to the Parties’ counsel valid and timely written notices of objection will be entitled
to be heard at the hearing unless the Court orders otherwise.

 

12.
Any Person or entity who fails to appear or object in the manner provided herein shall be deemed to have waived such objection and
shall forever be foreclosed from making any objection to the fairness, reasonableness, or adequacy of the Settlement and to the Fee
and Expense Amount and Service Awards, unless otherwise ordered by the Court, but shall be forever bound by the Judgment to be
entered and the releases to be given as set forth in the Stipulation.

 

    -5-

     

    

 

13. Federal
Plaintiffs shall file their motion for final approval of the Settlement at least twenty-eight (28) days prior to the Settlement Hearing.
If there is any objection to the Settlement, any response to the objection(s) must be filed at least seven (7) days prior to the Settlement
Hearing.

 

14. All
proceedings in this Consolidated Action are stayed until further order of the Court, except as may be necessary to implement the Settlement
or comply with the terms of this Stipulation.

 

15. This
Court may, for good cause, extend any of the deadlines set forth in this Preliminary Approval Order without further notice to shareholders.

 

16. The
provisions contained in the Stipulation (including the exhibits annexed thereto) shall not be deemed a presumption, concession or an
admission of, or evidence of, any fault, wrongdoing, liability, or non-liability of the Parties or Released Persons, or of the validity
or infirmity of any Released Claims and shall not be interpreted, construed, deemed, invoked, offered, or received into evidence or otherwise
used by any person in the Derivative Actions or in any other action or proceeding, whether civil, criminal, or administrative, except
in connection with any proceeding to enforce the terms of the Settlement.

 

17.
In the event that the Stipulation or Settlement is not approved by the Court, or the Settlement is terminated for any reason, the
Parties shall be restored to their respective positions in the Derivative Actions as of the date of the Stipulation, and all
negotiations, proceedings, documents prepared and statements made in connection herewith shall be without prejudice to the Parties,
shall not be deemed or construed to be an admission by any Party of any act, matter or proposition and shall not be used in any
manner for any purpose in any subsequent proceeding in the Action or in any other action or proceeding. In such event, the terms and
provisions of the Stipulation (other than those set forth in Section IV, Paragraphs 1.1-1.31, 4.3- 4.5, 6.2-.6.3, 7.3, 7.6-7.16,
7.20) shall have no further force and effect with respect to the Parties and shall not be used in the Derivative Actions or in any
other proceeding for any purpose and any judgment or orders entered by the Comt in accordance with the terms of the Stipulation
shall be treated as vacated, nunc pro tune.

 

18. In
the event that the Stipulation or Settlement is not approved by the Court, the Judgment does not become Final, or the Settlement is terminated
for any other reason,, the Fee and Expense Amount paid to Plaintiffs’ Counsel shall be refunded and returned to the Defendants’ D&O
insurers within thirty (30) days of receiving notice from Defendants or from a court of appropriate jurisdiction.

 

17.
The Court reserves the right to hold the Settlement Hearing telephonically or by videoconference without further notice to SCWorx shareholders.
Any SCWorx shareholder (or his, her or its counsel) who wishes to appear at the Settlement Hearing should consult the Court’s calendar
and/or the Investors Relations page of SCWorx’s website for any change in date, time or format of the Settlement Hearing. The Court may
approve the Settlement and any of its terms, with such modifications as may be agreed to by the Parties, if appropriate, without further
notice to Current SCWorx Shareholders. The Court retains jurisdiction to consider all further applications arising out of or connected
with the Settlement.

 

	IT IS SO ORDERED.	 	 
	 	 	
	DATED:	 	ONORABLE JOHN G. KOELTL
	3/25/2	 	U.S. DISTRICT JUDGE

 

    -6-

     

    

 

IN
THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK

 

	IN
  RE SCWORX CORP. DERIVATIVE	Lead
  Case No. 1:20-cv-04554-JGK
	LITIGATION	EXHIBIT
  C

 

NOTICE
OF PENDENCY AND PROPOSED SETTLEMENT OF STOCKHOLDER

DERIVATIVE ACTIONS

 

		TO:	ALL
RECORD HOLDERS AND BENEFICIAL OWNERS OF SCWORX CORP. (“SCWORX” OR THE “COMPANY”) COMMON STOCK (TICKER SYMBOL:
WORX) AS OF FEBRUARY 15, 2022.

 

PLEASE
READ THIS NOTICE CAREFULLY AND IN ITS ENTIRETY. THIS NOTICE RELATES TO A PROPOSED SETTLEMENT AND DISMISSAL WITH PREJUDICE OF STOCKHOLDER
DERIVATIVE LITIGATION AND CONTAINS IMPORTANT INFORMATION REGARDING YOUR RIGHTS.

 

IF
THE COURT APPROVES THE SETTLEMENT OF THE DERIVATIVE ACTIONS, SCWORX SHAREHOLDERS WILL BE FOREVER BARRED FROM CONTESTING THE APPROVAL
OF THE PROPOSED SETTLEMENT AND DISMISSAL WITH PREJUDICE, AND FROM PURSUING RELEASED CLAIMS.

 

THIS
ACTION IS NOT A “CLASS ACTION.” THUS, THERE IS NO COMMON FUND UPON WHICH YOU CAN MAKE A CLAIM FOR A MONETARY PAYMENT.

 

PLEASE
TAKE NOTICE that this action is being settled on the terms set forth in a Stipulation of Settlement, dated February 15, 2022 (the “Stipulation”).
The purpose of this Notice is to inform you of:

 

		●	the
existence of the above-captioned consolidated derivative action pending in the United States District Court for the Southern District
Court (the “Court”) captioned In re SCWorx Corp. Derivative Litigation, Lead Case No. 1:20-cv-04554-JGK (the “Consolidated
Action”),

 

		●	the
existence of a similar derivative action pending in the Delaware Court of Chancery captioned Zarins, et al. v. Schessel, et al.,
Case No. 2020-0924-MTZ (together with the Consolidated Action, the “Derivative Actions”),

 

		●	the
proposed settlement between Plaintiffs1 and Defendants reached in the Derivative Actions (the “Settlement”),

 

 

		1	All
capitalized terms used in this notice, unless otherwise defined herein, are defined as set forth in the Stipulation.

 

    1

     

    

 

		●	the hearing to be held by the Court to consider the fairness,
reasonableness, and adequacy of the Settlement and dismissal of the Consolidated Action with prejudice,

 

		●	Plaintiffs’ Counsel’s application for fees and
expenses, and

 

		●	Plaintiffs’ monetary service awards.

 

This Notice describes
what steps you may take in relation to the Settlement. This Notice is not an expression of any opinion by the Court about the truth or
merits of Plaintiffs’ claims or Defendants’ defenses. This Notice is solely to advise you of the proposed Settlement of the
Derivative Actions and of your rights in connection with the proposed Settlement.

 

Summary

 

On February 15,
2022, SCWorx, in its capacity as a nominal defendant, entered into the Stipulation to resolve the Derivative Actions filed derivatively
on behalf of SCWorx, in the Court and in the Delaware Court of Chancery against certain current and former directors and officers of the
Company and against the Company as a nominal defendant. The Stipulation and the settlement contemplated therein (the “Settlement”),
subject to the approval of the Court, are intended by the Parties to fully, finally, and forever compromise, resolve, discharge, and settle
the Released Claims and to result in the complete dismissal of the Derivative Actions with prejudice, upon the terms and subject to the
conditions set forth in the Stipulation. The Settlement was reached after the Parties participated in a full-day videoconference mediation
with Jed Melnick, Esq. of JAMS, a nationally recognized mediator with extensive experience mediating complex stockholder disputes similar
to the Derivative Actions. The proposed Settlement requires the Company to adopt certain corporate governance reforms, as outlined in
Exhibit A to the Stipulation.

 

In light of the
substantial benefits conferred upon SCWorx by Plaintiffs’ Counsel’s efforts, after engaging in arm’s length negotiations
with the assistance of the Mediator, the Individual Defendants agreed to cause their D&O insurers to pay Plaintiffs’ Counsel’s
attorneys’ fee and expenses in the amount of $300,000 (the “Fee and Expense Amount”), subject to Court approval. Plaintiffs’
Counsel may also apply to the Court for $1,500 service awards to be paid to each of the three Plaintiffs (the “Service Awards”),
to be paid out of the Fee and Expense Amount, which Defendants shall not oppose.

 

This notice is
a summary only and does not describe all of the details of the Stipulation. For full details of the matters discussed in this summary,
please see the full Stipulation and its exhibits posted on the Company’s website, www.scworx.com,
contact Plaintiffs’ Counsel at the addresses listed below, or inspect the full Stipulation and its exhibits filed with the Clerk
of the Court.

 

    2

     

    

 

What are the Lawsuits About?

 

The Derivative
Actions are brought derivatively on behalf of nominal defendant SCWorx and allege that the Individual Defendants breached their fiduciary
duties and committed other violations of law by making and/or causing the Company to make materially false statements or omissions to
the investing public, and by causing the Company to fail to maintain internal controls. Specifically, the Derivative Actions allege that
Defendants issued false and misleading statements indicating that SCWorx had the capacity to successfully enter the market for selling
COVID-19 test kits and had secured lucrative purchase and supply agreements for COVID-19 test kits purportedly worth millions of dollars
for the Company

 

Why is there a Settlement of the Derivative Actions?

 

The Court has
not decided in favor of Defendants or Plaintiffs in the Consolidated Action. Instead, the Parties have agreed to the Settlement to avoid
the distraction, costs, and risks of further litigation, and because the Company has determined that the corporate governance reforms
adopted by the Company as part of the Settlement provide substantial benefits to SCWorx and its shareholders.

 

Defendants have
denied and continue to deny each and all of the claims and contentions alleged by Plaintiffs in the Derivative Actions. The Individual
Defendants have expressly denied and continue to deny all charges of wrongdoing or liability against them arising out of any of the conduct,
statements, acts, or omissions alleged, or that could have been alleged, in the Derivative Actions. Nonetheless, Defendants have concluded
that it is desirable for the Derivative Actions to be fully and finally settled in the matter and upon the terms and conditions set forth
in this Stipulation.

 

The Settlement Hearing, and Your Right to Object to
the Settlement

 

On March 25,
2022, the Court entered an order preliminarily approving the Stipulation and the Settlement contemplated therein (the
“Preliminary Approval Order”) and providing for notice of the Settlement to be made to SCWorx shareholders. The
Preliminary Approval Order further provides that the Court will hold a hearing (the “Settlement Hearing”) on June 29,
2022 at 2:30 p.m. before the Honorable John G. Koeltl at the U.S. District Court for the Southern District of New York, 500 Pearl
Street New York, NY 10007 to among other things: (i) determine whether the proposed Settlement is fair, reasonable and adequate and
in the best interests of the Company and its shareholders; (ii) consider any objections to the Settlement submitted in accordance
with this Notice; (iii) determine whether a judgment should be entered dismissing all claims in the Consolidated Action with
prejudice, and releasing the Released Claims against the Released Persons; (iv) whether the Court should approve the agreed-to Fee
and Expense Amount; (v) whether the Court should approve the Service Awards, which shall be funded from the Fee and Expense Amount
to the extent approved by the Court; and (vii) consider any other matters that may properly be brought before the Court in
connection with the Settlement.

 

    3

     

    

 

The Court
may, in its discretion, change the date and/or time of the Settlement Hearing without further notice to you. The Court also has
reserved the right to hold the Settlement Hearing telephonically or by videoconference without further notice to you. If you intend
to attend the Settlement Hearing, please consult the Court’s calendar and/or the website of SCWorx, www. for any change in
date, time or format of the Settlement Hearing.

 

Any SCWorx shareholder who wishes to object to the fairness, reasonableness, or
adequacy of the Settlement as set forth in the Stipulation, or to the agreed-upon Fee and Expense Amount or Service Awards, may file
with the Court a written objection. An objector must at least twenty-one (21) calendar days prior to the Settlement Hearing: (1)
file with the Clerk of the Court and serve (either by hand delivery or by first class mail) upon the below listed counsel a written
objection to the Settlement setting forth (a) the nature of the objection, (b) proof of ownership of SCWorx common stock as of
February 15, 2022 and through the date of the filing of any such objection, including the number of shares of SCWorx common stock
held and the date of purchase or acquisition, (c) any and all documentation or evidence in support of such objection; (d) the
identities of any cases, by name, court, and docket number, in which the shareholder or his, her, or its attorney has objected to a
settlement in the last three years; and (2) if intending to appear, and requesting to be heard, at the Settlement Hearing, he, she,
or it must, in addition to the requirements of (1) above, file with the Clerk of the Court and serve (either by hand delivery or by
first class mail) upon the below listed counsel (a) a written notice of his, her, or its intention to appear at the Settlement
Hearing, (b) a statement that indicates the basis for such appearance, (c) the identities of any witnesses he, she, or it intends to
call at the Settlement Hearing and a statement as to the subjects of their testimony, and (d) any and all evidence that would be
presented at the Settlement Hearing. Any objector who does not timely file and serve a notice of intention to appear in accordance
with this paragraph shall be foreclosed from raising any objection to the Settlement and shall not be permitted to appear at the
Settlement Hearing, except for good cause shown.

 

IF YOU MAKE A WRITTEN OBJECTION, IT MUST BE ON FILE
WITH THE CLERK OF THE COURT NO LATER THAN JUNE 7, 2022. The Clerk’s address is:

 

Clerk of the Court,

U.S. District Court for the Southern
District of New York,

500 Pearl Street New York, NY
10007

 

YOU ALSO MUST
DELIVER COPIES OF THE MATERIALS TO PLAINTIFFS’ COUNSEL AND DEFENDANTS’ COUNSEL SO THEY ARE RECEIVED NO LATER THANJUNE 7,
2022. Counsel’s addresses are:

 

	Counsel for Plaintiffs:
	 
	THE ROSEN LAW FIRM, P.A.	GAINEY McKENNA & EGLESTON
	Phillip Kim	Thomas J. McKenna
	275 Madison Avenue, 40th Floor	501 Fifth Avenue, 19th Floor
	New York, NY 10016	New York, NY 10017
	Telephone: (212) 686-1060	Telephone: (212) 983-1300
	 	 
	E-mail: pkim@rosenlegal.com	Email: tjmckenna@gme-law.com
	 	 
	THE BROWN LAW FIRM, P.C.	 
	Timothy Brown	 
	767 Third Avenue, Suite 2501	 
	New York, NY 10017	 
	Telephone: (516) 922-5427	 
	E-mail: tbrown@thebrownlawfirm.net	 
	 	 

 

    4

     

    

 

	Counsel for Defendants:

	 
	KING & SPALDING LLP	
    PASHMAN STEIN WALDER HAYDEN, P.C.

    

	Paul R. Bessette	Bruce S. Rosen
	1185 Avenue of the Americas	Bell Works
	New York, NY 10036	
    101 Crawfords Corner Road, Suite
    4202

    

	Telephone: (212) 556-2100	
    Holmdel, NJ 07733

    

	Email: pbessette@kslaw.com	
    Telephone: (732) 852-2481

    

	 	Telephone: (973) 457-0123
	 	Email: brosen@pashmanstein.com

	LAW OFFICES OF CAROLE R. BERNSTEIN	 
	Carole R. Bernstein 	 
	41 Maple Avenue North	 
	Westport, CT 06880	 
	Telephone: (203) 255-8698 	 
	Email: cbernsteinesq@gmail.com	 

 

An objector may
file an objection on his, her, or its own or through an attorney hired at his, her, or its own expense. If an objector hires an attorney
to represent him, her, or it for the purposes of making such objection, the attorney must serve (either by hand delivery or by first class
mail) a notice of appearance on the counsel listed above and file such notice with the Court no later than twenty-one (21) calendar days
before the Settlement Hearing. Any SCWorx shareholder who does not timely file and serve a written objection complying with the above
terms shall be deemed to have waived, and shall be foreclosed from raising, any objection to the Settlement, and any untimely objection
shall be barred.

 

Any objector who
files and serves a timely, written objection in accordance with the instructions above, may appear at the Settlement Hearing either in
person or through counsel retained at the objector’s expense. Objectors need not attend the Settlement Hearing, however, in order
to have their objections considered by the Court.

 

If you are an
SCWorx shareholder and do not take steps to appear in this action and object to the proposed Settlement, you will be bound by the Judgment
of the Court and will forever be barred from raising an objection to the settlement in this Consolidated Action, and from pursuing any
of the Released Claims.

 

SCWORX SHAREHOLDERS
AS OF FEBRUARY 15, 2022 WHO HAVE NO OBJECTION TO THE SETTLEMENT DO NOT NEED TO APPEAR AT THE SETTLEMENT HEARING OR TAKE ANY OTHER ACTION.

 

    5

     

    

 

Interim Stay and Injunction

 

Pending the Court’s
determination as to final approval of the Settlement, Plaintiffs and Plaintiffs’ Counsel, and any SCWorx shareholders, derivatively
on behalf of SCWorx, are barred and enjoined from commencing, prosecuting, instigating, or in any way participating in the commencement
or prosecution of any action asserting any Released Claims derivatively against any of the Released Persons in any court or tribunal.

 

Scope of the Notice

 

This Notice is
a summary description of the Derivative Actions, the complaints, the terms of the Settlement, and the Settlement Hearing. For a more detailed
statement of the matters involved in the Derivative Actions, reference is made to the Stipulation and its exhibits, copies of which may
be reviewed and downloaded at www. scworx.com.

 

***

 

You may
obtain further information by contacting Plaintiffs’ Counsel at: Timothy Brown, The Brown Law Firm, P.C., 767 Third Avenue,
Suite 2501, New York, NY 10017, Telephone: (516) 922-5427, E-mail: tbrown@thebrownlawfirm.net; or Phillip Kim, The Rosen Law Firm,
P.A., 275 Madison Avenue, 40th Floor, New York, NY 10016, Telephone: (212) 686-1060, E- mail: pkim@rosenlegal.com; or Thomas J.
McKenna, Gainey McKenna & Egleston, 501 Fifth Avenue, 19th Floor, New York, NY 10017, Telephone: (212) 983-1300, E-mail:
tjmckenna@gme- law.com. Please Do Not Call the Court or Defendants with Questions About the Settlement.

 

    6

     

    

 

IN THE UNITED STATES DISTRICT
COURT FOR THE SOUTHERN DISTRICT OF NEW YORK

 

	IN
RE SCWORX CORP. DERIVATIVE 	Lead Case No. 1:20-cv-04554-JGK

	LITIGATION	EXHIBIT D

 

[PROPOSED] ORDER AND FINAL JUDGMENT

 

This matter came
before the Court for hearing on ______________, 2022, to consider approval of the proposed settlement (“Settlement”) set forth
in the Stipulation of Settlement dated February 15, 2022 (the “Stipulation”). The Court has reviewed and considered all documents,
evidence, objections (if any), and arguments presented in support of or against the Settlement. Good cause appearing therefore, the Court
enters this Order and Final Judgment (the “Judgment”).

 

IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that:

 

1. This
Judgment incorporates by reference the definitions in the Stipulation, and all capitalized terms used herein shall have the same meanings
as set forth in the Stipulation.

 

2. This
Court has jurisdiction over the subject matter of the Consolidated Derivative Action, including all matters necessary to effectuate the
Settlement, and over the Parties.

 

3. The
Court finds that the form of the notice of the Settlement and the means of dissemination of the notice of the Settlement provided to Current
SCWorx Shareholders constituted the best notice practicable under the circumstances and fully satisfied the requirements of Rule 23.1
of the Federal Rules of Civil Procedure and the requirements of due process.

 

4. The
Court hereby approves the Settlement set forth in the Stipulation and finds that the Settlement is, in all respects, fair, reasonable,
and adequate to each of the Parties, and further finds that the Settlement is in the best interests of SCWorx and its shareholders.

 

    -1-

     

    

 

5. The
Consolidated Action and all claims contained therein, as well as all of the Released Claims against Released Persons, are dismissed with
prejudice. The Parties are to bear their own costs, except as otherwise provided below.

 

6. Upon
the Effective Date, to the extent that the Plaintiffs, Plaintiffs’ Counsel, and each of SCWorx’s shareholders possess any
of the Released Claims derivatively, Plaintiffs, Plaintiffs’ Counsel, and each of SCWorx’s shareholders (solely in their capacity
as SCWorx shareholders) shall be deemed to have, and by operation of this Judgment shall have, fully, finally, and forever waived, released,
relinquished, discharged and dismissed all Released Claims (including Unknown Claims) against the Released Persons, including any and
all claims (including Unknown Claims) against the Released Persons arising out of, relating to, or in connection with the defense, Settlement,
or resolution of the Derivative Actions.

 

7. Upon
the Effective Date, to the extent Plaintiffs, Plaintiffs’ Counsel, and each of SCWorx’s shareholders possess any of the Released
Claims derivatively, Plaintiffs, Plaintiffs’ Counsel, and each of SCWorx’s stockholders (solely in their capacity as SCWorx
shareholders) shall be forever barred, estopped, and enjoined from commencing, instituting, or prosecuting any of the Released Claims
(including Unknown Claims) or any action or other proceeding against any of the Released Persons based on the Released Claims, or any
action or proceeding arising out of, relating to, or in connection with the Released Claims or the filing, prosecution, defense, settlement,
or resolution of the Derivative Actions. Nothing herein shall in any way impair or restrict the rights of any Party to enforce the terms
of the Stipulation.

 

8. Upon
the Effective Date, SCWorx, shall be deemed to have, and by operation of this Judgment shall have, fully, finally, and forever released,
relinquished, and discharged all Released Claims (including Unknown Claims) against the Released Persons.

 

9. Upon
the Effective Date, SCWorx shall be forever barred, estopped, and enjoined from commencing, instituting, or prosecuting any of the Released
Claims (including Unknown Claims) or any action or other proceeding against any of the Released Persons based on the Released Claims,
or any action or proceeding arising out of, relating to, or in connection with the Released Claims or the filing, prosecution, defense,
settlement, or resolution of the Derivative Actions. Nothing herein shall in any way impair or restrict the rights of any Party to enforce
the terms of the Stipulation.

 

10. Upon
the Effective Date, each of the Released Persons shall be deemed to have fully, finally, and forever released, relinquished, and discharged
Plaintiffs and their Related Persons, Plaintiffs’ Counsel and their Related Persons, and SCWorx’s shareholders (solely in
their capacity as SCWorx shareholders) and their Related Persons from all claims (including Unknown Claims), arising out of, relating
to, or in connection with the institution, prosecution, assertion, settlement, or resolution of the Derivative Actions or the Released
Claims. Nothing herein shall in any way impair or restrict the rights of any Party to enforce the terms of the Stipulation.

 

    -2-

     

    

 

11. During
the course of the litigation, all parties and their respective counsel at all times complied with the requirements of Rule 11 of the Federal
Rules of Civil Procedure.

 

12. The
Court hereby approves the sum of $300,000 for the payment of Plaintiffs’ Counsel’s attorneys’ fees and expenses (“Fee
and Expense Amount”) and finds that the Fee and Expense Amount is fair and reasonable. No other fees, costs, or expenses may be
awarded to Plaintiffs’ Counsel in connection with the Settlement. The Fee and Expense Amount shall be distributed in accordance
with the terms of the Stipulation.

 

13. The
Court hereby approves the Service Awards of $1,500 for each of the three Plaintiffs to be paid from Plaintiffs’ Counsel’s
Fee and Expense Amount in recognition of Plaintiffs’ participation and effort in the prosecution
of the Derivative Actions.

 

14. Neither
the Stipulation, including the annexed exhibits, nor the Settlement, nor any act performed or document executed pursuant to or in furtherance
of the Stipulation or the Settlement: (i) is or may be deemed to be or may be offered, attempted to be offered or used in any way by the
Parties or any other Person as a presumption, a concession or an admission of, or evidence of, any fault, wrongdoing, liability, or non-liability
of the Parties or Released Persons, or of the validity or infirmity of any Released Claims; (ii) is or may be deemed to be or may be offered,
attempted to be offered or used in any way by the Parties or any other Person as a presumption, a concession, an admission, or evidence
of any fault, omission, wrongdoing or liability of any of the Parties in any other actions or proceedings, whether civil, criminal, or
administrative, other than to enforce the terms therein.

 

15. The
Released Parties and/or the Released Persons may file the Stipulation and/or this Judgment in any action that may be brought against them
in order to support a defense, claim, or counterclaim based on principles of res judicata, collateral estoppel, release and discharge,
good faith settlement, judgment bar or reduction, or any other theory of claim preclusion or issue preclusion or similar defense or counterclaim.

 

15. Without
affecting the finality of this Judgment entered in accordance with the Stipulation, the Court shall retain jurisdiction to implement and
enforce the terms of the Stipulation and this Judgment and to consider any matters or disputes arising out of or relating to the Settlement,
and the Parties submit to the jurisdiction of the Court for purposes of implementing and enforcing the Settlement embodied in the Stipulation
and Judgment, and for matters or disputes arising out of or relating to the Settlement.

 

 16. Pursuant to Rule 23.1 of the Federal Rules of Civil Procedure, this Court hereby finally approves the Stipulation and Settlement in all respects, and orders the Parties to perform its terms to the extent the Parties have not already done so.

 

    -3-

     

    

 

17. This
Judgment is a final judgment, and the Court finds that no just reason exists for delay in entering this Judgment in accordance with the
Stipulation. Accordingly, the Clerk is hereby directed to enter this Judgment forthwith in accordance with Rule 58 of the Federal Rules
of Civil Procedure.

 

IT IS SO ORDERED.

 

	
    

    DATED:

    
	 
		HONORABLE JOHN G. KOELTL
		U.S. DISTRICT JUDGE

 

 

-4-

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