Document:

Exhibit 4.4

 

AMENDED
AND RESTATED CERTIFICATE OF DESIGNATION OF

SERIES I CONVERTIBLE PREFERRED STOCK 

OF RENOVARE ENVIRONMENTAL, INC.

 

Renovare Environmental, Inc.,
a corporation organized and existing under the laws of the State of Delaware ("Company"), hereby certifies that the Board
of Directors of the Company (the "Board of Directors" or the "Board"), pursuant to authority of the
Board of Directors as required by applicable corporate law, and in accordance with the provisions of its certificate of incorporation
and bylaws, has and hereby authorizes a series of the Company's previously authorized Preferred Stock, par value $0.0001 per share (the
 "Preferred Stock"), and hereby states the designation and number of shares, and fixes the rights, preferences, privileges,
powers and restrictions thereof, as follows:

 

1.            Designation
and Number of Shares. There shall hereby be created and established a series of preferred stock of the Company designated as “Series I
Convertible Preferred Stock” (the “Preferred Shares”). The authorized number of Preferred Shares shall be One
Hundred Fifty Thousand (150,000) shares. Each Preferred Share shall have a par value of $0.0001. Capitalized terms not defined herein
shall have the meanings as set forth in Section 19 below.

 

2.            Ranking.
The Preferred Shares shall rank junior to any existing and future Indebtedness, and to any existing series of the Company’s Preferred
Stock (including, without limitation, the Series G Convertible Preferred Stock and Series H Convertible Preferred Stock (each
as defined in the Securities Purchase Agreement)); in respect of the preferences as to dividends, distributions and payments upon the
liquidation, dissolution and winding-up of the Company (collectively, the “Senior Securities”) or any future series
of existing Indebtedness or preferred stock of pari passu rank to the Preferred Shares in respect of the preferences as to dividends,
distributions and payments upon the liquidation, dissolution and winding-up of the Company (collectively, the “Parity Stock”),
all other shares of capital stock of the Company shall be junior in rank to all Preferred Shares with respect to the preferences as to
dividends, distributions and payments upon the liquidation, dissolution and winding-up of the Company (collectively, the “Junior
Stock”). The rights of all such shares of capital stock of the Company shall be subject to the rights, powers, preferences and
privileges of the Preferred Shares. In the event of the merger or consolidation of the Company with or into another corporation, the Preferred
Shares shall maintain their relative rights, powers, preferences, privileges, and designations provided for herein and no such merger
or consolidation shall result inconsistent therewith.

 

3.            Conversion.
From and after the Resale Eligibility Date, each Preferred Share shall be convertible into validly issued, fully paid and non-assessable
shares of Common Stock (as defined below) on the terms and conditions set forth in this Section 3.

 

(a)            Holder’s
Conversion Right. Subject to the provisions of Section 3(e), at any time or times after the Resale Eligibility Date each Holder
shall be entitled to convert any whole number of Preferred Shares into validly issued, fully paid and non-assessable shares of Common
Stock in accordance with Section 3(c) at the Conversion Rate (as defined below).

 

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(b)            Conversion
Rate. The number of validly issued, fully paid and non-assessable shares of Common Stock issuable upon conversion (the “Conversion
Shares”) of each Preferred Share pursuant to Section 3(a) shall be determined according to the following formula (the
 “Conversion Rate”):

 

Conversion
Amount

Conversion Price

 

No fractional shares
of Common Stock are to be issued upon the conversion of any Preferred Shares. If the issuance would result in the issuance of a fraction
of a share of Common Stock, the Company shall round such fraction of a share of Common Stock up to the nearest whole share.

 

(c)            Mechanics
of Conversion. The conversion of each Preferred Share shall be conducted in the following manner:

 

(i)            Holder’s
Conversion. Subject to the provisions of Section 3(e), to convert Preferred Shares into validly issued, fully paid and non-assessable
shares of Common Stock on any date (a “Conversion Date”), a Holder shall deliver (via electronic mail), for receipt
on or prior to 5:00 p.m., New York time, on such date, a copy of an executed notice of conversion of Preferred Shares subject to such
conversion in the form attached hereto as Exhibit A (the “Conversion Notice”) to the Company, which
Conversion Notice shall be subject to an adjustment pursuant to Section 6 to the Conversion Price set forth on such Conversion Notice
upon the close of the Principal Market on the Conversion Date. If required by Section 3(c)(ii), within three (3) Trading Days
following a conversion of any such Preferred Shares as aforesaid, such Holder shall surrender to a nationally recognized overnight delivery
service for delivery to the Company the original certificates representing the share(s) of Preferred Shares (the “Preferred
Share Certificates”) so converted as aforesaid.

 

(ii)            Company’s
Response. On or before the first (1st) Trading Day following the date of receipt of a Conversion Notice, the Company shall
transmit by facsimile or electronic mail an acknowledgment of confirmation, in the form attached hereto as Exhibit B,
of receipt of such Conversion Notice to such Holder and the Company’s transfer agent (the “Transfer Agent”),
which confirmation shall constitute an instruction to the Transfer Agent to process such Conversion Notice in accordance with the terms
herein. On or before the second (2nd) Trading Day following the date of receipt by the Company of such Conversion Notice, the
Company shall (1) provided that (x) the Transfer Agent is participating in The Depository Trust Company’s (“DTC”)
Fast Automated Securities Transfer Program and (y) such Conversion Shares to be so issued are eligible for resale pursuant to Rule 144
credit such aggregate number of Conversion Shares to which such Holder shall be entitled to such Holder’s or its designee’s
balance account with DTC through its Deposit/Withdrawal at Custodian system, or (2) if either of the immediately preceding clauses
(x) or (y) are not satisfied, issue and deliver (via reputable overnight courier) to the address as specified in such Conversion
Notice, a certificate, registered in the name of such Holder or its designee, for the number of Conversion Shares to which such Holder
shall be entitled. If the number of Preferred Shares represented by the Preferred Share Certificate(s) submitted for conversion pursuant
to Section 3(c)(i) is greater than the number of Preferred Shares being converted, then the Company shall if requested by such
Holder, as soon as practicable and in no event later than three (3) Trading Days after receipt of the Preferred Share Certificate(s) and
at its own expense, issue and deliver to such Holder (or its designee) a new Preferred Share Certificate representing the number of Preferred
Shares not converted.

 

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(iii)            Record
Holder. The Person or Persons entitled to receive the shares of Common Stock issuable upon a conversion of Preferred Shares shall
be treated for all purposes as the record holder or holders of such shares of Common Stock on the Conversion Date.

 

(iv)            Intentionally
omitted.

 

(v)            Pro
Rata Conversion; Disputes. In the event the Company receives a Conversion Notice from more than one Holder for the same Conversion
Date and the Company can convert some, but not all, of such Preferred Shares submitted for conversion, the Company shall convert from
each Holder electing to have Preferred Shares converted on such date a pro rata amount of such Holder’s Preferred Shares submitted
for conversion on such date based on the number of Preferred Shares submitted for conversion on such date by such Holder relative to the
aggregate number of Preferred Shares submitted for conversion on such date. In the event of a dispute as to the number of shares of Common
Stock issuable to a Holder in connection with a conversion of Preferred Shares, the Company shall issue to such Holder the number of shares
of Common Stock not in dispute and resolve such dispute in accordance with Section 18.

 

(vi)            Book-Entry.
Notwithstanding anything to the contrary set forth in this Section 3, upon conversion of any Preferred Shares in accordance with
the terms hereof, no Holder thereof shall be required to physically surrender the certificate representing the Preferred Shares to the
Company following conversion thereof unless (A) the full or remaining number of Preferred Shares represented by the certificate are
being converted (in which event such certificate(s) shall be delivered to the Company as contemplated by this Section 3(c)(vi))
or (B) such Holder has provided the Company with prior written notice (which notice may be included in a Conversion Notice) requesting
reissuance of Preferred Shares upon physical surrender of any Preferred Shares. Each Holder and the Company shall maintain records showing
the number of Preferred Shares so converted by such Holder and the dates of such conversions or shall use such other method, reasonably
satisfactory to such Holder and the Company, so as not to require physical surrender of the certificate representing the Preferred Shares
upon each such conversion.

 

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(d)            Taxes.
The Company shall pay any and all documentary, stamp, transfer (but only in respect of the registered holder thereof), issuance and other
similar taxes that may be payable with respect to the issuance and delivery of shares of Common Stock upon the conversion of Preferred
Shares.

 

(e)            Beneficial
Ownership Limitation. Notwithstanding anything to the contrary set forth in this Amended and Restated Certificate of Designation (“Certificate
of Designation”), at no time may all or a portion of the Preferred Shares be converted if the number of shares of Common Stock to
be issued pursuant to such conversion would cause the holder’s beneficial ownership to exceed, when aggregated with all other shares
of Common Stock beneficially owned (as determined in accordance with Section 13(d) of the Exchange Act and the rules thereunder)
by such holder at such time, the number of shares of Common Stock more than 4.99% of all of the Common Stock issued and outstanding at
such time (which provision may be waived by such Holder by written notice from such Holder to the Company, which notice shall be effective
sixty-one (61) calendar days after the date of such notice). Additionally, in no event shall any Preferred Shares be converted if after
giving effect to the conversion, the Holder would beneficially own more than 9.99% of all of the Common Stock issued and outstanding at
such time. For purposes of this Section 3(e), in determining the number of outstanding shares of Common Stock, a Holder
may rely on the number of outstanding shares of Common Stock as reflected in (1) the Company’s most recent Form 10-K,
Form 10-Q, Current Report on Form 8-K or other public filing with the Securities and Exchange Commission, as the case may be,
(2) a more recent public announcement by the Company or (3) any other notice by the Company or its transfer agent setting forth
the number of shares of Common Stock outstanding. For any reason at any time, upon the written or oral request of a Holder, the Company
shall within one (1) business day confirm orally and in writing to such holder the number of shares of Common Stock then outstanding.
In any case, the number of outstanding shares of Common Stock shall be determined after giving effect to the conversion or exercise of
securities of the Company, including the Preferred Shares, held by such holder and its affiliates since the date as of which such number
of outstanding shares of Common Stock was reported, which in any event are convertible or exercisable, as the case may be, into shares
of the Company’s Common Stock within sixty (60) days’ of such calculation and which are not subject to a limitation on conversion
or exercise analogous to the limitation contained herein. The provisions of this Section 3(e) shall be construed
and implemented in a manner otherwise than in strict conformity with the terms of this Section 3(e) to correct this
paragraph (or any portion hereof) which may be defective or inconsistent with the intended beneficial ownership limitations herein contained
or to make changes or supplements necessary or desirable to properly give effect to such limitation.

 

4.            Rights
Upon Fundamental Transactions. The Company shall not enter into or be party to a Fundamental Transaction unless (i) the Successor
Entity assumes in writing all of the obligations of the Company under this Certificate of Designation and the other Transaction Documents
in accordance with the provisions of this Section 4 pursuant to written agreements in form and substance satisfactory to the Required
Holders and approved by the Required Holders prior to such Fundamental Transaction, including agreements to deliver to each holder of
Preferred Shares in exchange for such Preferred Shares a security of the Successor Entity evidenced by a written instrument substantially
similar in form and substance to this Certificate of Designation. Upon the occurrence of any Fundamental Transaction, the Successor Entity
shall succeed to, and be substituted for (so that from and after the date of such Fundamental Transaction, the provisions of this Certificate
of Designation referring to the “Company” shall refer instead to the Successor Entity), and may exercise every right and power
of the Company and shall assume all of the obligations of the Company under this Certificate of Designation with the same effect as if
such Successor Entity had been named as the Company herein and therein. In addition to the foregoing, upon consummation of a Fundamental
Transaction, the Successor Entity shall deliver to each Holder confirmation that there shall be issued upon conversion of the Preferred
Shares at any time after the consummation of such Fundamental Transaction, in lieu of the shares of Common Stock (or other securities,
cash, assets or other property (except such items still issuable under Section 5(a), which shall continue to be receivable thereafter))
issuable upon the conversion of the Preferred Shares prior to such Fundamental Transaction, such shares of publicly traded common stock
(or their equivalent) of the Successor Entity (including its Parent Entity) which each Holder would have been entitled to receive upon
the consummation of such Fundamental Transaction had all the Preferred Shares held by each Holder been converted immediately prior to
such Fundamental Transaction (without regard to any limitations on the conversion of the Preferred Shares contained in this Certificate
of Designation), as adjusted in accordance with the provisions of this Certificate of Designation. The provisions of this Section 4
shall apply similarly and equally to successive Fundamental Transactions and shall be applied without regard to any limitations on the
conversion of the Preferred Shares.

 

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5.            Rights
Upon Issuance of Purchase Rights and Other Corporate Events.

 

(a)            Purchase
Rights. In addition to any adjustments pursuant to Section 6 below, if at any time the Company grants, issues or sells any Options,
Convertible Securities or rights to purchase stock, warrants, securities or other property pro rata to the record holders of any class
of Common Stock (the “Purchase Rights”), then each Holder will be entitled to acquire, upon the terms applicable to
such Purchase Rights, the aggregate Purchase Rights which such Holder could have acquired if such Holder had held the number of shares
of Common Stock acquirable upon complete conversion of all the Preferred Shares (without taking into account any limitations or restrictions
on the convertibility of the Preferred Shares) held by such Holder immediately before the date on which a record is taken for the grant,
issuance or sale of such Purchase Rights, or, if no such record is taken, the date as of which the record holders of Common Stock are
to be determined for the grant, issue or sale of such Purchase Rights (provided, however, to the extent that such Holder’s right
to participate in any such Purchase Right would result in such Holder exceeding the Maximum Percentage, then such Holder shall not be
entitled to participate in such Purchase Right to such extent (or beneficial ownership of such shares of Common Stock as a result of such
Purchase Right to such extent) and such Purchase Right to such extent shall be held in abeyance for such Holder until such time, if ever,
as its right thereto would not result in such Holder exceeding the Maximum Percentage).

 

(b)            Other
Corporate Events. In addition to and not in substitution for any other rights hereunder, prior to the consummation of any Fundamental
Transaction pursuant to which holders of shares of Common Stock are entitled to receive securities or other assets with respect to or
in exchange for shares of Common Stock (a “Corporate Event”), the Company shall make appropriate provision to insure
that each Holder will thereafter have the right to receive upon a conversion of all the Preferred Shares held by such Holder (i) in
addition to the shares of Common Stock receivable upon such conversion, such securities or other assets to which such Holder would have
been entitled with respect to such shares of Common Stock had such shares of Common Stock been held by such Holder upon the consummation
of such Corporate Event (without taking into account any limitations or restrictions on the convertibility of the Preferred Shares contained
in this Certificate of Designation) or (ii) in lieu of the shares of Common Stock otherwise receivable upon such conversion, such
securities or other assets received by the holders of shares of Common Stock in connection with the consummation of such Corporate Event
in such amounts as such Holder would have been entitled to receive had the Preferred Shares held by such Holder initially been issued
with conversion rights for the form of such consideration (as opposed to shares of Common Stock) at a conversion rate for such consideration
commensurate with the Conversion Rate. The provisions of this Section 5 shall apply similarly and equally to successive Corporate
Events and shall be applied without regard to any limitations on the conversion of the Preferred Shares contained in this Certificate
of Designation.

 

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6.            Adjustment
of Conversion Price upon Subdivision or Combination of Common Stock.

 

(a)            Without
limiting any provision of Section 5, if the Company at any time on or after the first date of issuance of any Series I Preferred
Shares (the “Initial Issuance Date”), subdivides (by any stock split, stock dividend, recapitalization or otherwise) one or
more classes of its outstanding shares of Common Stock into a greater number of shares, the Conversion Price in effect immediately prior
to such subdivision will be proportionately reduced. Without limiting any provision of Section 5, if the Company at any time on or
after the Initial Issuance Date combines (by combination, reverse stock split or otherwise) one or more classes of its outstanding shares
of Common Stock into a smaller number of shares, the Conversion Price in effect immediately prior to such combination will be proportionately
increased. Any adjustment pursuant to this Section 6 shall become effective immediately after the effective date of such subdivision
or combination. If any event requiring an adjustment under this Section 6 occurs during the period that a Conversion Price is calculated
hereunder, then the calculation of such Conversion Price shall be adjusted appropriately to reflect such event.

 

(b)            On
the close of trading of the thirtieth (30) Trading Day following the Company’s Reverse Stock Split (the “Adjustment Date”),
the Conversion Price shall automatically be adjusted to lower of (i) the split-adjusted Conversion Price or (ii) the Closing
Bid Price on the Adjustment Date.

 

7.            Authorized
Shares.

 

(a)            Reservation.
The Company shall as of the Adjustment Date so long as any of the Preferred Shares are outstanding, take all action necessary to reserve
and keep available out of its authorized and unissued shares of Common Stock, solely for the purpose of effecting the conversion of the
Preferred Shares, as of any given date, 100% of the number of shares of Common Stock as shall from time to time be necessary to effect
the conversion of all of the Preferred Shares issued or issuable pursuant to this Certificate of Designation without taking into account
any limitations on the issuance of securities set forth herein, provided that at no time shall the number of shares of Common Stock so
available be less than the number of shares required to be reserved by the previous sentence (without regard to any limitations on conversions
contained in this Certificate of Designation) (the “Required Amount”). The initial number of shares of Common Stock
reserved for conversions of the Preferred Shares and each increase in the number of shares so reserved shall be allocated pro rata among
the Holders based on the number of Preferred Shares held by each Holder on the Initial Issuance Date or increase in the number of reserved
shares (as the case may be) (the “Authorized Share Allocation”). In the event a Holder shall sell or otherwise transfer
any of such Holder’s Preferred Shares, each transferee shall be allocated a pro rata portion of such Holder’s Authorized Share
Allocation. Any shares of Common Stock reserved and allocated to any Person which ceases to hold any Preferred Shares shall be allocated
to the remaining Holders of Preferred Shares, pro rata based on the number of Preferred Shares then held by such Holders.

 

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(b)            Insufficient
Authorized Shares. If, notwithstanding Section 7(a) and not in limitation thereof, at any time while any of the Preferred
Shares remain outstanding the Company does not have a sufficient number of authorized and unissued shares of Common Stock to satisfy its
obligation to have available for issuance upon conversion of the Preferred Shares at least a number of shares of Common Stock equal to
the Required Amount (an “Authorized Share Failure”), then the Company shall immediately take all action necessary to
increase the Company’s authorized shares of Common Stock to an amount sufficient to allow the Company to reserve and have available
the Required Amount for all of the Preferred Shares then outstanding. Without limiting the generality of the foregoing sentence, as soon
as practicable after the date of the occurrence of an Authorized Share Failure, but in no event later than ninety (90) days after the
occurrence of such Authorized Share Failure, the Company shall hold a meeting or obtain written consent of its stockholders for the approval
of an increase in the number of authorized shares of Common Stock. In connection with such meeting, the Company shall provide each stockholder
with a proxy statement or information statement, as applicable, and shall use its best efforts to solicit its stockholders’ approval
of such increase in authorized shares of Common Stock and to cause its Board to recommend to the stockholders that they approve such proposal.

 

8.            Voting
Rights. The Preferred Shares shall not be entitled to vote on matters as to which holders of Common Stock shall be entitled to vote.

 

9.           Vote
to Change the Terms of or Issue Preferred Shares. In addition to any other rights provided by law, except where the vote or written
consent of the holders of a greater number of shares is required by law or by another provision of the Certificate of Incorporation, without
first obtaining the affirmative vote at a meeting duly called for such purpose or the written consent without a meeting of the Required
Holders, voting together as a single class, the Company shall not amend or repeal any provision of, or add any provision to, its Certificate
of Incorporation or bylaws, or file any certificate of designations or articles of amendment of any series of shares of preferred stock,
if such action would adversely alter or change in any respect the preferences, rights, privileges or powers, or restrictions provided
for the benefit, of the Preferred Shares, regardless of whether any such action shall be by means of amendment to the Certificate of Incorporation
or by merger, consolidation or otherwise; provided, however, the Company shall be entitled, without the consent of the Required Holders
unless such consent is otherwise required by the DGCL, to (a) amend the Certificate of Incorporation to effectuate one or more reverse
stock splits of its issued and outstanding Common Stock for purposes of maintaining compliance with the rules and regulations of
the Principal Market; (b) purchase, repurchase or redeem any shares of capital stock of the Company junior in rank to the Preferred
Shares (other than pursuant to equity incentive agreements (that have in good faith been approved by the Board) with employees giving
the Company the right to repurchase shares upon the termination of services); or (c) issue any preferred stock that is junior in
rank to the Preferred Shares.

 

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10.            Lost
or Stolen Certificates. Upon receipt by the Company of evidence reasonably satisfactory to the Company of the loss, theft, destruction
or mutilation of any certificates representing Preferred Shares (as to which a written certification and the indemnification contemplated
below shall suffice as such evidence), and, in the case of loss, theft or destruction, of an indemnification undertaking by the applicable
Holder to the Company in customary and reasonable form and, in the case of mutilation, upon surrender and cancellation of the certificate(s),
the Company shall execute and deliver new certificate(s) of like tenor and date.

 

11.            Remedies,
Characterizations, Other Obligations, Breaches and Injunctive Relief. The remedies provided in this Certificate of Designation shall
be cumulative and in addition to all other remedies available under this Certificate of Designation, at law or in equity (including a
decree of specific performance and/or other injunctive relief), and no remedy contained herein shall be deemed a waiver of compliance
with the provisions giving rise to such remedy. Nothing herein shall limit any Holder’s right to pursue actual and consequential
damages for any failure by the Company to comply with the terms of this Certificate of Designation. The Company covenants to each Holder
that there shall be no characterization concerning this instrument other than as expressly provided herein. Amounts set forth or provided
for herein with respect to payments, conversion and the like (and the computation thereof) shall be the amounts to be received by a Holder
and shall not, except as expressly provided herein, be subject to any other obligation of the Company (or the performance thereof). The
Company acknowledges that a breach by it of its obligations hereunder will cause irreparable harm to the Holders and that the remedy at
law for any such breach may be inadequate. The Company therefore agrees that, in the event of any such breach or threatened breach, each
Holder shall be entitled, in addition to all other available remedies, to an injunction restraining any such breach or any such threatened
breach, without the necessity of showing economic loss and without any bond or other security being required, to the extent permitted
by applicable law. The Company shall provide all information and documentation to a Holder that is requested by such Holder to enable
such Holder to confirm the Company’s compliance with the terms and conditions of this Certificate of Designation.

 

12.          Noncircumvention.
The Company hereby covenants and agrees that the Company will not, by amendment of its Certificate of Incorporation, bylaws or through
any reorganization, transfer of assets, consolidation, merger, scheme of arrangement, dissolution, issue or sale of securities, or any
other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this Certificate of Designation, and
will at all times in good faith carry out all the provisions of this Certificate of Designation and take all action as may be required
to protect the rights of the Holders. Without limiting the generality of the foregoing or any other provision of this Certificate of Designation,
the Company (i) shall not increase the par value of any shares of Common Stock receivable upon the conversion of any Preferred Shares
above the Conversion Price then in effect, (ii) shall take all such actions as may be necessary or appropriate in order that the
Company may validly and legally issue fully paid and non-assessable shares of Common Stock upon the conversion of Preferred Shares and
(iii) shall, so long as any Preferred Shares are outstanding, take all action necessary to reserve and keep available out of its
authorized and unissued shares of Common Stock, solely for the purpose of effecting the conversion of the Preferred Shares, the maximum
number of shares of Common Stock as shall from time to time be necessary to effect the conversion of the Preferred Shares then outstanding
(without regard to any limitations on conversion contained herein).

 

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13.            Failure
or Indulgence Not Waiver. No failure or delay on the part of a Holder in the exercise of any power, right or privilege hereunder shall
operate as a waiver thereof, nor shall any single or partial exercise of any such power, right or privilege preclude other or further
exercise thereof or of any other right, power or privilege. No waiver shall be effective unless it is in writing and signed by an authorized
representative of the waiving party. This Certificate of Designation shall be deemed to be jointly drafted by the Company and all Holders
and shall not be construed against any Person as the drafter hereof.

 

14.            Notices.
The Company shall provide each Holder of Preferred Shares with prompt written notice of all actions taken pursuant to the terms of this
Certificate of Designation, including in reasonable detail a description of such action and the reason therefor. Whenever notice is required
to be given under this Certificate of Designation, unless otherwise provided herein, such notice shall be sufficiently given if given
in writing and delivered by first class mail, postage prepaid, or if given in such other manner as may be permitted in this Certificate
of Designations, in the Certificate of Incorporation or the Bylaws and by applicable law to the Holder’s last known address as set
forth in the records of the Company.

 

15.            Transfer
of Preferred Shares. Any Holder may transfer some or all of its Preferred Shares without the consent of the Company.

 

16.            Preferred
Shares Register. The Company shall maintain at its principal executive offices (or such other office or agency of the Company as it
may designate by notice to the Holders), a register for the Preferred Shares, in which the Company shall record the name, address and
facsimile number of the Persons in whose name the Preferred Shares have been issued, as well as the name and address of each transferee.
The Company may treat the Person in whose name any Preferred Shares is registered on the register as the owner and holder thereof for
all purposes, notwithstanding any notice to the contrary, but in all events recognizing any properly made transfers.

 

17.            Amendment.
This Certificate of Designation or any provision hereof may be amended by obtaining the affirmative vote at a meeting duly called for
such purpose, or written consent without a meeting in accordance with the DGCL, of the Required Holders, voting separate as a single,
as may then be required pursuant to the DGCL and the Certificate of Incorporation.

 

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18.            Dispute
Resolution.

 

(a)            Submission
to Dispute Resolution.

 

(i) In the case
of a dispute relating to a Conversion Price, or the arithmetic calculation of a Conversion Rate (as the case may be) (including, without
limitation, a dispute relating to the determination of any of the foregoing), the Company or the applicable Holder (as the case may be)
shall submit the dispute to the other party via facsimile (A) if by the Company, within two (2) Business Days after the occurrence
of the circumstances giving rise to such dispute or (B) if by such Holder at any time after such Holder learned of the circumstances
giving rise to such dispute. If such Holder and the Company are unable to promptly resolve such dispute relating to such Closing Sale
Price, such Conversion Price, arithmetic calculation of such Conversion Rate (as the case may be), at any time after the second (2nd)
Business Day following such initial notice by the Company or such Holder (as the case may be) of such dispute to the Company or such Holder
(as the case may be), then such Holder may, with the consent of the Company (not to be unreasonably or untimely withheld), select an independent,
reputable investment bank to resolve such dispute.

 

(ii) Such Holder
and the Company shall each deliver to such investment bank (A) a copy of the initial dispute submission so delivered in accordance
with the first sentence of this Section 18 and (B) written documentation supporting its position with respect to such dispute,
in each case, no later than 5:00 p.m. (New York time) by the fifth (5th) Business Day immediately following the date on
which such Holder selected such investment bank (the “Dispute Submission Deadline”) (the documents referred to in the
immediately preceding clauses (A) and (B) are collectively referred to herein as the “Required Dispute Documentation”)
(it being understood and agreed that if either such Holder or the Company fails to so deliver all of the Required Dispute Documentation
by the Dispute Submission Deadline, then the party who fails to so submit all of the Required Dispute Documentation shall no longer be
entitled to (and hereby waives its right to) deliver or submit any written documentation or other support to such investment bank with
respect to such dispute and such investment bank shall resolve such dispute based solely on the Required Dispute Documentation that was
delivered to such investment bank prior to the Dispute Submission Deadline). Unless otherwise agreed to in writing by both the Company
and such Holder or otherwise requested by such investment bank, neither the Company nor such Holder shall be entitled to deliver or submit
any written documentation or other support to such investment bank in connection with such dispute (other than the Required Dispute Documentation)
..

 

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(iii) The Company
and such Holder shall cause such investment bank to determine the resolution of such dispute and notify the Company and such Holder of
such resolution no later than ten (10) Business Days immediately following the Dispute Submission Deadline. The fees and expenses
of such investment bank shall be borne solely by the Company, and such investment bank’s resolution of such dispute shall be final
and binding upon all parties absent manifest error.

 

(b)            Miscellaneous.

 

(i)            The
Company expressly acknowledges and agrees that (i) this Section 18 constitutes an agreement to arbitrate between the Company
and each Holder (and constitutes an arbitration agreement) under §7501, et seq. of the New York Civil Practice Law and Rules (“CPLR”)
and that any Holder is authorized to apply for an order to compel arbitration pursuant to CPLR §7503(a) in order to compel compliance
with this Section 18, (ii) the terms of this Certificate of Designation and each other applicable Transaction Document shall
serve as the basis for the selected investment bank’s resolution of the applicable dispute, such investment bank shall be entitled
(and is hereby expressly authorized) to make all findings, determinations and the like that such investment bank determines are required
to be made by such investment bank in connection with its resolution of such dispute and in resolving such dispute such investment bank
shall apply such findings, determinations and the like to the terms of this Certificate of Designation and any other applicable Transaction
Document, (iii) the applicable Holder (and only such Holder with respect to disputes solely relating to such Holder), in its sole
discretion, shall have the right to submit any dispute described in this Section 18 to any state or federal court sitting in the
City of New York, Borough of Manhattan, subject to any choice of law provision in the Securities Exchange Agreement, in lieu of utilizing
the procedures set forth in this Section 18 and (iv) nothing in this Section 18 shall limit such Holder from obtaining
any injunctive relief or other equitable remedies (including, without limitation, with respect to any matters described in this Section 18).

 

(ii)            Whenever
any payment of cash is to be made by the Company to any Person pursuant to this Certificate of Designation, unless otherwise expressly
set forth herein, such payment shall be made in lawful money of the United States of America by a certified check drawn on the account
of the Company and sent via overnight courier service to such Person at such address as previously provided to the Company in writing,
provided that such Holder may elect to receive a payment of cash via wire transfer of immediately available funds by providing the Company
with prior written notice setting out such request and such Holder’s wire transfer instructions. Whenever any amount expressed to
be due by the terms of this Certificate of Designation is due on any day which is not a Business Day, the same shall instead be due on
the next succeeding day which is a Business Day. Any amount due hereunder which is not paid when due shall result in a late charge being
incurred and payable by the Company in an amount equal to interest on such amount at the rate of nine percent (9%) per year from the date
such amount was due until the same is paid in full (“Late Charge”).

 

    11

     

    

 

19.            Certain
Defined Terms. For purposes of this Certificate of Designation, the following terms shall have the following meanings:

 

(a)            “Bloomberg”
means Bloomberg, L.P.

 

(b)            “Business
Day” means any day other than Saturday, Sunday or other day on which commercial banks in The City of New York are authorized
or required by law to remain closed.

 

(c)            “Closing
Sale Price” means, for any security as of any date, the last closing trade price for such security on the Principal Market,
as reported by Bloomberg, or, if the Principal Market begins to operate on an extended hours basis and does not designate the closing
trade price (as the case may be) then the last trade price of such security prior to 4:00:00 p.m., New York time, as reported by Bloomberg,
or, if the Principal Market is not the principal securities exchange or trading market for such security, the last trade price of such
security on the principal securities exchange or trading market where such security is listed or traded as reported by Bloomberg, or if
the foregoing do not apply, the last trade price of such security in the over-the-counter market on the electronic bulletin board for
such security as reported by Bloomberg. If the Closing Sale Price cannot be calculated for a security on a particular date on any of the
foregoing bases, the Closing Sale Price of such security on such date shall be the fair market value as mutually determined by the Company
and the applicable Holder. If the Company and such Holder are unable to agree upon the fair market value of such security, then such dispute
shall be resolved in accordance with the procedures in Section 18. All such determinations shall be appropriately adjusted for any
stock dividend, stock split, stock combination or other similar transaction during such period.

 

(d)            “Common
Stock” means (i) the Company’s shares of common stock, $0.0001 par value per share, and (ii) any capital stock
into which such common stock shall have been changed or any share capital resulting from a reclassification of such common stock.

 

(e)            “Conversion
Amount” means, with respect to each Preferred Share, as of the applicable date of determination, the Stated Value thereof.

 

(f)            “Conversion
Price” means $0.04, subject to adjustment as provided in this Certificate of Designation.

 

(g)          “Convertible
Securities” means any stock or other security (other than Options) that is at any time and under any circumstances, directly
or indirectly, convertible into, exercisable or exchangeable for, or which otherwise entitles the holder thereof to acquire, any shares
of Common Stock.

 

    12

     

    

 

(h)            “Eligible
Market” means The New York Stock Exchange, the NYSE American, the Nasdaq Global Select Market, the Nasdaq Global Market, the
Nasdaq Capital Market, or the Principal Market.

 

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

 

(j)            “Fundamental
Transaction” means that (i) the Company or any of its Subsidiaries shall, directly or indirectly, in one or more related
transactions, (1) consolidate or merge with or into (whether or not the Company or any of its Subsidiaries is the surviving corporation)
any other Person, or (2) sell, lease, license, assign, transfer, convey or otherwise dispose of all or substantially all of its respective
properties or assets to any other Person, or (3) allow any other Person to make a purchase, tender or exchange offer that is accepted
by the holders of more than fifty percent (50%) of the outstanding shares of Voting Stock of the Company (not including any shares of
Voting Stock of the Company held by the Person or Persons making or party to, or associated or affiliated with the Persons making or party
to, such purchase, tender or exchange offer), or (4) consummate a stock or share purchase agreement or other business combination
(including, without limitation, a reorganization, recapitalization, spin-off or scheme of arrangement) with any other Person whereby such
other Person acquires more than fifty percent (50%) of the outstanding shares of Voting Stock of the Company (not including any shares
of Voting Stock of the Company held by the other Person or other Persons making or party to, or associated or affiliated with the other
Persons making or party to, such stock or share purchase agreement or other business combination), or (5)  reorganize, recapitalize
or reclassify the Common Stock, or (ii) any “person” or “group” (as these terms are used for purposes of
Sections 13(d) and 14(d) of the Exchange Act and the rules and regulations promulgated thereunder) is or shall become the
 “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of fifty percent (50%)
of the aggregate ordinary voting power represented by issued and outstanding Voting Stock of the Company.

 

(k)            “Indebtedness”
of any Person means, without duplication (A) all indebtedness for borrowed money, (B) all obligations issued, undertaken or
assumed as the deferred purchase price of property or services, including, without limitation, “capital leases” in accordance
with United States generally accepted accounting principles consistently applied for the periods covered thereby (other than trade payables
entered into in the ordinary course of business consistent with past practice), (C) all reimbursement or payment obligations with
respect to letters of credit, surety bonds and other similar instruments, (D) all obligations evidenced by notes, bonds, debentures
or similar instruments, including obligations so evidenced incurred in connection with the acquisition of property, assets or businesses,
(E) all indebtedness created or arising under any conditional sale or other title retention agreement, or incurred as financing,
in either case with respect to any property or assets acquired with the proceeds of such indebtedness (even though the rights and remedies
of the seller or bank under such agreement in the event of default are limited to repossession or sale of such property), (F) all
monetary obligations under any leasing or similar arrangement which, in connection with United States generally accepted accounting principles,
consistently applied for the periods covered thereby, is classified as a capital lease, (G) all Indebtedness referred to in clauses
(A) through (F) above secured by (or for which the holder of such indebtedness has an existing right, contingent or otherwise,
to be secured by) any mortgage, deed of trust, lien, pledge, charge, security interest or other encumbrance of any nature whatsoever in
or upon any property or assets (including accounts and contract rights) with respect to any asset or property owned by any Person, even
though the Person which owns such assets or property has not assumed or become liable for the payment of such indebtedness, and (H) all
Contingent Obligations in respect of indebtedness or obligations of others of the kinds referred to in clauses (A) through (G) above.

 

    13

     

    

 

(l)            “Options”
means any rights, warrants or options to subscribe for or purchase shares of Common Stock or Convertible Securities.

 

(m)            “Parent
Entity” of a Person means an entity that, directly or indirectly, controls the applicable Person and whose common stock or equivalent
equity security is quoted or listed on an Eligible Market, or, if there is more than one such Person or Parent Entity, the Person or Parent
Entity with the largest public market capitalization as of the date of consummation of the Fundamental Transaction.

 

(n)            “Person”
means an individual, a limited liability company, a partnership, a joint venture, a corporation, a trust, an unincorporated organization,
any other entity or a government or any department or agency thereof.

 

(o)            “Principal
Market” means the OTC PINK, OTCQB, OTCQX, or OTCBB.

 

(p)            “Required
Holders” means the holders of at least a majority of the outstanding Preferred Shares.

 

(q)            “Reverse
Stock Split” means the effective date of the initial reverse stock split of the Common Stock on the Principal Market after the
date hereof.

 

(r)             “Securities
Purchase Agreement” means that certain securities purchase and exchange agreement by and among the Company and the investors
signatory thereto, dated as of the Subscription Date, as may be amended from time in accordance with the terms thereof.

 

(s)            “Stated
Value” shall mean $1,000 per share, subject to adjustment for stock splits, stock dividends, recapitalizations, reorganizations,
reclassifications, combinations, subdivisions or other similar events occurring after the Initial Issuance Date with respect to the Preferred
Shares.

 

(t)            “Subsidiary”
or “Subsidiaries” means any subsidiary of the Company, including, where applicable,
any direct or indirect subsidiary of the Company formed or acquired after the date hereof.

 

    14

     

    

 

(u)            “Successor
Entity” means the Person (or, if so elected by the Required Holders, the Parent Entity) formed by, resulting from or surviving
any Fundamental Transaction or the Person (or, if so elected by the Required Holders, the Parent Entity) with which such Fundamental Transaction
shall have been entered into.

 

(v)            “Trading
Day” means any day on which the Common Stock is traded on the Principal Market, or, if the Principal Market is not the principal
trading market for the Common Stock, then on the principal securities exchange or securities market on which the Common Stock is then
traded, provided that “Trading Day” shall not include any day on which the Common Stock is scheduled to trade on such exchange
or market for less than 4.5 hours or any day that the Common Stock is suspended from trading during the final hour of trading on such
exchange or market (or if such exchange or market does not designate in advance the closing time of trading on such exchange or market,
then during the hour ending at 4:00:00 p.m., New York time) unless such day is otherwise designated as a Trading Day in writing by the
Required Holders.

 

(x)            “Voting
Stock” of a Person means capital stock of such Person of the class or classes pursuant to which the holders thereof have the
general voting power to elect, or the general power to appoint, at least a majority of the board of directors, managers, trustees or other
similar governing body of such Person (irrespective of whether or not at the time capital stock of any other class or classes shall have
or might have voting power by reason of the happening of any contingency).

 

(Remainder of the page left
intentionally blank.)

 

    15

     

    

 

IN
WITNESS WHEREOF, the Company has caused this Amended and Restated Certificate of Designation of Series I Convertible Preferred Stock
of Inc. to be signed by its duly authorized officer on this 19th day of August, 2022.

 

	 	RENOVARE ENVIRONMENTAL, INC.
	 	 	 	 
	 	By:  	 /s/ Brian C. Essman
	 	 	Name:  	Brian C. Essman
	 	 	Title:  	Chief Financial Officer

 

    16

     

    

 

EXHIBIT A

 

RENOVARE ENVIRONMENTAL, INC.

 

CONVERSION NOTICE

 

Reference
is made to the Amended and Restated Certificate of Designation of Series I Convertible Preferred Stock of Renovare
Environmental, Inc. (the “Certificate of Designation”). In accordance with and pursuant to the Certificate
of Designation, the undersigned hereby elects to convert the number of shares of Series I Convertible Preferred Stock (the “Preferred
Shares”), of Renovare Environmental, Inc., a Delaware corporation (the “Company”),
indicated below into shares of common stock, $0.0001 value per share, of the Company, as of the date specified below.

 

	Date of Conversion: _________________________________________________________________________
	 
	Number of Preferred Shares to be converted:  ______________________________________________________
	 
	Share certificate no(s). of Preferred Shares to be converted:  ___________________________________________
	 
	Tax ID Number (If applicable): _________________________________________________________________
	 
	Conversion Price: __________________________________________________________________________
	 
	Number of shares of Common Stock to be issued: ___________________________________________________

 

Please issue the shares of Common Stock into which
the Preferred Shares are being converted in the following name and to the following address:

 

	Issue to: ________________________________________________________________________________
	 
	                ________________________________________________________________________________
	 
	Address: ________________________________________________________________________________
	 
	Telephone Number: ________________________________________________________________________
	 
	Facsimile Number: _________________________________________________________________________
	 
	Holder: _________________________________________________________________________________

 

    17

     

    

 

	By:

________________________________________________________________________________________
	 
	Title:

________________________________________________________________________________________
	 
	Dated:

________________________________________________________________________________________

 

	Account Number (if electronic book entry transfer):

 _______________________________________________________________________________________
	 
	Transaction Code Number (if electronic book entry transfer):

 _______________________________________________________________________________________

 

    18

     

    

 

EXHIBIT B

 

ACKNOWLEDGMENT

 

The Company hereby acknowledges
this Conversion Notice and hereby directs [_________________________] to issue the above indicated number of shares of Common Stock in
accordance with the Conversion Notice dated __________, 202_ from the Company and acknowledged and agreed to by [_____________________].

 

	 	RENOVARE ENVIRONMENTAL, INC.
	 	 	 
	 	By:	              
	 	Name:	 
	 	Title:	 

 

    19Exhibit 10.1

 

SECURITIES PURCHASE AND EXCHANGE AGREEMENT

 

This SECURITIES PURCHASE
AND EXCHANGE AGREEMENT (the “Agreement”), dated as of September 7, 2022, is by and among Renovare Environmental,
Inc., a Delaware corporation with offices located at 80 Red Schoolhouse Road, Suite 101, Chestnut Ridge, New York 10977 (the “Company”),
and each of the investors listed on the Schedule of Purchasing Buyers attached hereto (individually, a “Purchasing Buyer”
and collectively, the “Purchasing Buyers”) and Schedule of Exchange Buyers attached hereto (individually, an “Exchange
Buyer” and collectively, the “Exchange Buyers”). Each Purchasing Buyer and Exchange Buyer are individually
referred to herein as a “Buyer” and collectively, the “Buyers”.

 

RECITALS

 

A.       The
Company and each Buyer is executing and delivering this Agreement in reliance upon the exemption from securities registration afforded
by Section 4(a)(2) of the Securities Act of 1933, as amended (the “1933 Act”), and (x) with respect to each Purchasing
Buyer, Rule 506(b) of Regulation D (“Regulation D”) and (y) with respect to each Exchange Buyer, Rule 144(d)(3)(ii),
in each case, as promulgated by the United States Securities and Exchange Commission (the “SEC”) under the 1933 Act.

 

B.       The
Company has authorized (i) a new series of convertible preferred stock of the Company designated as Series G Convertible Preferred
Stock, $0.0001 par value, the terms of which are set forth in the amended and restated certificate of designation for such series of
Preferred Stock (the “Series G Certificate of Designations”) in the form attached hereto as Exhibit
A-1 (together with any convertible preferred shares issued in replacement thereof in accordance with the terms thereof, the
 “Series G Preferred Stock”), which Series G Preferred Stock shall be convertible into shares of Common Stock
(such shares of Common Stock issuable pursuant to the terms of the Series G Certificate of Designations, including, without
limitation, upon conversion or otherwise, collectively, the “Series G Conversion Shares”), in accordance with the
terms of the Series G Certificate of Designations, (ii) a new series of convertible preferred stock of the Company designated as
Series H Convertible Preferred Stock, $0.0001 par value, the terms of which are set forth in the amended and restated certificate of
designation for such series of Preferred Stock (the “Series H Certificate of Designations”) in the form attached
hereto as Exhibit A-2 (together with any convertible preferred shares issued in replacement thereof in accordance with
the terms thereof, the “Series H Preferred Stock”), which Series H Preferred Stock shall be convertible into
shares of Common Stock (such shares of Common Stock issuable pursuant to the terms of the Series H Certificate of Designations,
including, without limitation, upon conversion or otherwise, collectively, the “Series H Conversion Shares”), in
accordance with the terms of the Series H Certificate of Designations, (iii) a new series of convertible preferred stock of the
Company designated as Series I Convertible Preferred Stock, $0.0001 par value, the terms of which are set forth in the amended and
restated certificate of designation for such series of Preferred Stock (the “Series I Certificate of
Designations”, and together with the Series G Certificate of Designations and the Series I Certificate of Designations,
the “Convertible Preferred Certificates of Designations”) in the form attached hereto as Exhibit
A-3 (together with any convertible preferred shares issued in replacement thereof in accordance with the terms thereof, the
 “Series I Preferred Stock”), which Series I Preferred Stock shall be convertible into shares of Common Stock
(such shares of Common Stock issuable pursuant to the terms of the Series I Certificate of Designations, including, without
limitation, upon conversion or otherwise, collectively, the “Series I Conversion Shares”, and together with the
Series G Conversion Shares and the Series H Conversion Shares, the “Conversion Shares”), in accordance with the
terms of the Series I Certificate of Designations and (iv) a new series of redeemable preferred stock of the Company designated as
Series C-1 Redeemable Preferred Stock, $0.0001 par value, the terms of which are set forth in the amended and restated certificate
of designation for such series of Preferred Stock (the “Series C-1 Certificate of Designations”, and together
with the Convertible Preferred Certificates of Designations, the “Certificates of Designations”) in the form
attached hereto as Exhibit A-4 (together with any convertible preferred shares issued in replacement thereof in
accordance with the terms thereof, the “Series C-1 Preferred Stock”).

 

     

     

    

 

C.       Each
Purchasing Buyer wishes to purchase, and the Company wishes to sell, upon the terms and conditions stated in this Agreement, (i) solely
to the extent specified on the Schedule of Purchasing Buyers, the aggregate number of shares of Series G Preferred Stock (the “Purchased
Initial Series G Preferred Shares”) set forth opposite such Purchasing Buyer’s name in column (3) on the Schedule of Purchasing
Buyers, (ii) solely to the extent specified on the Schedule of Purchasing Buyers, the aggregate number of shares of Series I Preferred
Stock (the “Purchased Series I Preferred Shares”) set forth opposite such Purchasing Buyer’s name in column (4)
on the Schedule of Purchasing Buyers, (iii) solely to the extent specified on the Schedule of Purchasing Buyers, a series G common warrant
(each, a “Purchased G Common Warrant”, and as exercised, collectively, the “Purchased G Warrant Common Shares”)
or a series G-1 common warrant (each, a “Purchased G-1 Common Warrant”, and as exercised, collectively, the “Purchased
G-1 Warrant Common Shares”), in each case, as specified in the Schedule of Purchasing Buyers, to initially acquire up to that
aggregate number of additional shares of Common Stock set forth opposite such Purchasing Buyer’s name in column (6) or column (7),
as applicable, on the Schedule of Purchasing Buyers, substantially in the form attached hereto as Exhibit B-1 (collectively,
the “Purchased Common Warrants”) (as exercised, collectively, the “Purchased Warrant Common Shares”)
and (iv) solely to the extent specified on the Schedule of Purchasing Buyers, a warrant to initially acquire up to that aggregate number
of additional shares of Series G Preferred Stock set forth opposite such Purchasing Buyer’s name in column (5) on the Schedule of
Purchasing Buyers, substantially in the form attached hereto as Exhibit C (the “Preferred Warrants”)
(as exercised, collectively, the “Warrant Preferred Shares”, and together with the Purchased Initial Series G Preferred
Shares, the “Series G Purchased Preferred Shares”, and as converted, the “Purchased Series G Conversion Shares”).

 

D       Prior
to the date hereof, the Company has issued to certain Buyers (each, an “Exchange Buyer”, and collectively, the
 “Exchange Buyers”) certain securities of the Company as described in column (3) of the Schedule of Exchange
Buyers attached hereto (the “Original Securities”). At the Closing, each Exchange Buyer, severally, not jointly,
and the Company desires to exchange (the “Exchange”), pursuant to exemption provided by Section 4(a)(2) of the
Securities Act and Rule 144(d)(3)(ii) of the Securities Act, the Original Securities set forth opposite such applicable Exchange
Buyer’s name in column (3) of the Schedule of Exchange Buyers for (i) if such Original Security is specified in the Schedule
of Exchange Buyers as a promissory note (each, an “Existing Promissory Note”), such aggregate number of shares of
Series H Preferred Stock (the “Series H Exchange Preferred Shares”, and as converted, the “Series H
Exchange Conversion Shares”) as set forth opposite the name of such Original Security in the row under such Exchange
Buyer’s name in column (6) of the Schedule of Exchange Buyers, (ii) solely with respect to any Original Security that consists
of Series C Preferred Stock (as defined below), (x) such aggregate number of shares of Series G Exchange Preferred Shares as set
forth opposite the name of such Original Security in the row under such Exchange Buyer’s name in column (5) of the Schedule of
Exchange Buyers and (y) solely to the extent specified on the Schedule of Exchange Buyers, such aggregate number of shares of Series
C-1 Preferred Stock (the “Series C-1 Exchange Preferred Shares”) as set forth opposite the name of such Original
Security in the row under such Exchange Buyer’s name in column (4) of the Schedule of Exchange Buyers, (and (iii) with respect
to any other Original Security, (x) such aggregate number of Preferred Shares as set forth opposite the name of such Original
Security in the row under such Exchange Buyer’s name in column (5), column (6) or column (7), as applicable, of the Schedule
of Exchange Buyers (the “Additional Exchange Preferred Shares”, and as converted, the “Additional
Exchange Conversion Shares”) and (y) solely to the extent specified on the Schedule of Exchange Buyers, a series G-1
warrant to purchase Common Stock to initially acquire up to that aggregate number of additional shares of Common Stock as set forth
opposite the name of such Original Security in the row under such Exchange Buyer’s name in column (8) on the Schedule of
Exchange Buyers, substantially in the form attached hereto as Exhibit B-2 (the “Exchange Common
Warrants”, and together with the Purchased Common Warrants, the “Common Warrants”) (as exercised,
collectively, the “Exchange Warrant Common Shares” and together with the Purchased Common Warrant Shares, the
 “Common Warrant Shares”). The Series G Exchange Preferred Shares and the Series H Exchange Preferred Shares are
collectively referred to herein as the “Exchange Convertible Preferred Shares”, and together with the Series C-1
Exchange Preferred Shares, the “Exchange Preferred Shares”. The Exchange Convertible Preferred Shares and the
Series G Purchased Preferred Shares are collectively referred to herein as the “Convertible Preferred Shares”.
The Convertible Preferred Shares and the Series C-1 Exchange Preferred Shares are collectively referred to herein as the
 “Preferred Shares”. The and as converted, the Additional Exchange Conversion Shares and the Series H Exchange
Conversion Shares are collectively referred to herein as the “Exchange Conversion Shares”. The Exchange Preferred
Shares, the Exchange Common Warrants are collectively referred to herein as the “Exchange Primary Securities”,
and together with the Exchange Conversion Shares and the Exchange Warrant Common Shares, the “Exchange
Securities”.

 

    2

     

    

 

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

 

F.       The
Preferred Shares, the Conversion Shares, the Preferred Warrants, the Common Warrants and the Warrant Common Shares are collectively referred
to herein as the “Securities.”

 

    3

     

    

 

AGREEMENT

 

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

 

1.           
PURCHASE AND SALE OF PREFERRED SHARES, PREFERRED WARRANTS AND COMMON WARRANTS; EXCHANGE.

 

(a)              
Purchase of Preferred Shares, Preferred Warrants and Common Warrants; Exchange. Subject to the satisfaction (or waiver)
of the conditions set forth in Sections 6 and 7 below, (i) the Company shall issue and sell to each Purchasing Buyer, and each Purchasing
Buyer severally, but not jointly, agrees to purchase from the Company on the Closing Date (as defined below) (A) the aggregate number
of Preferred Shares as is set forth opposite such Purchasing Buyer’s name in column (3) or column (4), as applicable, on the Schedule
of Purchasing Buyers, (B) solely to the extent specified on the Schedule of Purchasing Buyers, a Preferred Warrant to initially acquire
up to that aggregate number of Warrant Preferred Shares as set forth opposite such Purchasing Buyer’s name in column (5) on the
Schedule of Purchasing Buyers and (C) solely to the extent specified on the Schedule of Purchasing Buyers, a Purchased Common Warrant
to initially acquire up to that aggregate number of Purchased Warrant Common Shares as is set forth opposite such Purchasing Buyer’s
name in column (6) on the Schedule of Purchasing Buyers and (ii) pursuant to exemption provided by Section 4(a)(2) of the Securities Act
and Rule 144(d)(3)(ii) of the Securities Act, in exchange for the Original Securities set forth opposite each applicable Exchange Buyer’s
name in column (3) of the Schedule of Exchange Buyers the Company shall issue to each Exchange Buyer, and each Exchange Buyer severally,
but not jointly, agrees to exchange such Original Securities with the Company on the Closing Date for (A) if such Original Security consists
of an Existing Promissory Note, the aggregate number of Series H Exchange Preferred Shares as set forth opposite the name of such Original
Security in the row under such Exchange Buyer’s name in column (6) of the Schedule of Exchange Buyers, (B) if such Original Security
consists of Series C Preferred Stock, (x) solely to the extent specified on the Schedule of Exchange Buyers, the aggregate number of Series
C-1 Exchange Preferred Shares as set forth opposite the name of such Original Security in the row under such Exchange Buyer’s name
in column (4) of the Schedule of Exchange Buyers, and (y) the aggregate number of Series G Exchange Preferred Shares as set forth opposite
the name of such Original Security in the row under such Exchange Buyer’s name in column (5) of the Schedule of Exchange Buyers
and (C) with respect to any other Original Security, (x) such aggregate number of Exchange Preferred Shares as is set forth opposite such
Exchange Buyer’s name in in column (5), column (6) or column (7), as applicable, of the Schedule of Exchange Buyers and (y) solely
to the extent specified on the Schedule of Exchange Buyers, an Exchange Common Warrant to initially acquire up to that aggregate number
of Exchange Common Warrant Shares as it set forth opposite such Exchange Buyer’s name in column (8) on the Schedule of Exchange
Buyers.

 

(b)               Closing.
The closing (the “Closing”) of the purchase of the Preferred Shares, Preferred Warrants and the Common Warrants
by the Purchasing Buyers and the Exchange of the Original Securities for the Exchange Primary Securities by the Exchange Buyers
shall occur at the offices of Kelley Drye & Warren LLP, 3 World Trade Center, 175 Greenwich Street, New York, NY 10007. The date
and time of the Closing (the “Closing Date”) shall be 10:00 a.m., New York time, on the first (1st) Business Day
on which the conditions to the Closing set forth in Sections 6 and 7 below are satisfied or waived (or such other date as is
mutually agreed to by the Company and each Buyer). As used herein “Business Day” means any day other than
Saturday, Sunday or other day on which commercial banks in The City of New York are authorized or required by law to remain closed; provided, however,
for clarification, commercial banks shall not be deemed to be authorized or required by law to remain closed due to “stay at
home”, “shelter-in-place”, “non-essential employee”  or any other similar orders or restrictions
or the closure of any physical branch locations at the direction of any governmental authority so long as the electronic funds
transfer systems (including for wire transfers) of commercial banks in The City of New York generally are open for use by customers
on such day.

 

    4

     

    

 

(c)              
Purchase Price; No Additional Consideration for Exchange. The aggregate purchase price for the Preferred Shares, the Preferred
Warrants and the Common Warrants to be purchased by each Purchasing Buyer (the “Purchase Price”) shall be the amount
set forth opposite such Purchasing Buyer’s name in column (7) on the Schedule of Purchasing Buyers. Other than the Original Securities
to be delivered to the Company in the Exchange, no additional consideration or other remuneration shall be paid to the Company, directly
or indirectly, by any Exchange Buyer with respect to the Exchange.

 

(d)               Payment
by Purchasing Buyers; Delivery of Securities; Exchange. On the Closing Date, (i) each Purchasing Buyer shall pay its respective
Purchase Price (less, in the case of any Purchasing Buyer, the amounts withheld pursuant to Section 4(g)) to the Company for
the Preferred Shares, Preferred Warrants and the Purchased Common Warrants to be issued and sold to such Purchasing Buyer at the
Closing, by wire transfer of immediately available funds in accordance with the Flow of Funds Letter (as defined below), (ii) each
Exchange Buyer shall exchange and transfer to the Company the Original Securities set forth opposite such Buyer’s name in
column (3) of the Schedule of Exchange Buyers, (iii) the Company shall deliver to each Purchasing Buyer (A) the aggregate number of
Preferred Shares as is set forth opposite such Purchasing Buyer’s name in column (3) or column (4), as applicable, of the
Schedule of Purchasing Buyers, (B) solely to the extent specified on the Schedule of Purchasing Buyers, a Preferred Warrant to
initially acquire up to that aggregate number of Warrant Preferred Shares as set forth opposite such Purchasing Buyer’s name
in column (5) on the Schedule of Purchasing Buyers and (C) solely to the extent specified on the Schedule of Purchasing Buyers, a
Purchased Common Warrant pursuant to which such Purchasing Buyer shall have the right to initially acquire up to such aggregate
number of Purchased Warrant Common Shares as is set forth opposite such Purchasing Buyer’s name in column (6) or (7), as
applicable, of the Schedule of Purchasing Buyers, in each case, duly executed on behalf of the Company and registered in the name of
such Purchasing Buyer or its designee and (iv) the Company shall deliver to each Exchange Buyer (A) if such Original Security
consists of an Existing Promissory Note, (x) the aggregate number of Series H Exchange Preferred Shares as set forth opposite the
name of such Original Security in the row under such Exchange Buyer’s name in column (6), as applicable, of the Schedule of
Exchange Buyers, (B) if such Original Security consists of Series C Preferred Stock, (x) solely to the extent specified on the
Schedule of Exchange Buyers, the aggregate number of Series C-1 Exchange Preferred Shares as set forth opposite the name of such
Original Security in the row under such Exchange Buyer’s name in column (4) of the Schedule of Exchange Buyers, and (y) the
aggregate number of Series G Exchange Preferred Shares as set forth opposite the name of such Original Security in the row under
such Exchange Buyer’s name in column (5) of the Schedule of Exchange Buyers, and (C) with respect to any other Original
Security, (x) such aggregate number of Exchange Preferred Shares as is set forth opposite such Exchange Buyer’s name in in
column (5), column (6) or column (7), as applicable, of the Schedule of Exchange Buyers and (y) solely to the extent specified on
the Schedule of Exchange Buyers, an Exchange Common Warrant to initially acquire up to that aggregate number of Exchange Common
Warrant Shares as it set forth opposite such Exchange Buyer’s name in column (8) on the Schedule of Exchange Buyers, in each
case, duly executed on behalf of the Company and registered in the name of such Exchange Buyer or its designee. Upon the
consummation of the Exchange, the Original Securities shall be cancelled and the book entry for such Original Securities shall be
marked as cancelled in the Exchange and no longer outstanding.

 

    5

     

    

 

2.            
BUYER’S REPRESENTATIONS AND WARRANTIES.

 

Each Buyer, severally and
not jointly, represents and warrants to the Company with respect to only itself that, as of the date hereof and as of the Closing Date:

 

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

 

(b)              
No Public Sale or Distribution. Such Buyer (i) is acquiring its Preferred Shares, Preferred Warrant and Common Warrants,
(ii) upon conversion of its Preferred Shares will acquire the Conversion Shares issuable upon conversion thereof, (iii) upon exercise
of its Common Warrants (other than pursuant to a Cashless Exercise (as defined in the Common Warrants)) will acquire the Warrant Common
Shares issuable upon exercise thereof and (iv) solely with respect to each Purchasing Buyer, upon exercise of its Preferred Warrants will
acquire the Warrant Preferred Shares issuable upon exercise thereof, in each case, for its own account and not with a view towards, or
for resale in connection with, the public sale or distribution thereof in violation of applicable securities laws, except pursuant to
sales registered or exempted under the 1933 Act; provided, however, by making the representations herein, such Buyer does not agree, or
make any representation or warranty, to hold any of the Securities for any minimum or other specific term and reserves the right to dispose
of the Securities at any time in accordance with or pursuant to a registration statement or an exemption from registration under the 1933
Act. Such Buyer does not presently have any agreement or understanding, directly or indirectly, with any Person to distribute any of the
Securities in violation of applicable securities laws. For purposes of this Agreement, “Person” means an individual,
a limited liability company, a partnership, a joint venture, a corporation, a trust, an unincorporated organization, any other entity
and any Governmental Entity or any department or agency thereof.

 

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

 

    6

     

    

 

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

 

(e)              
Information. Such Buyer and its advisors, if any, have been furnished with all materials relating to the business, finances
and operations of the Company and materials relating to the offer and sale of the Securities that have been requested by such Buyer. Such
Buyer and its advisors, if any, have been afforded the opportunity to ask questions of the Company. Neither such inquiries nor any other
due diligence investigations conducted by such Buyer or its advisors, if any, or its representatives shall modify, amend or affect such
Buyer’s right to rely on the Company’s representations and warranties contained herein. Such Buyer understands that its investment
in the Securities involves a high degree of risk. Such Buyer has sought such accounting, legal and tax advice as it has considered necessary
to make an informed investment decision with respect to its acquisition of the Securities.

 

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

 

(g)               Transfer
or Resale. Such Buyer understands that except as provided in the Registration Rights Agreement and Section 4(h) hereof: (i) the
Securities have not been and are not being registered under the 1933 Act or any state securities laws, and may not be offered for
sale, sold, assigned or transferred unless (A) subsequently registered thereunder, (B) such Buyer shall have delivered to the
Company (if requested by the Company) an opinion of counsel, in a form reasonably acceptable to the Company, to the effect that such
Securities to be sold, assigned or transferred may be sold, assigned or transferred pursuant to an exemption from such registration,
or (C) such Buyer provides the Company with reasonable assurance that such Securities can be sold, assigned or transferred pursuant
to Rule 144 or Rule 144A promulgated under the 1933 Act (or a successor rule thereto) (collectively, “Rule 144”);
(ii) any sale of the Securities made in reliance on Rule 144 may be made only in accordance with the terms of Rule 144, and further,
if Rule 144 is not applicable, any resale of the Securities under circumstances in which the seller (or the Person through whom the
sale is made) may be deemed to be an underwriter (as that term is defined in the 1933 Act) may require compliance with some other
exemption under the 1933 Act or the rules and regulations of the SEC promulgated thereunder; and (iii) neither the Company nor any
other Person is under any obligation to register the Securities under the 1933 Act or any state securities laws or to comply with
the terms and conditions of any exemption thereunder. Notwithstanding the foregoing, the Securities may be pledged in connection
with a bona fide margin account or other loan or financing arrangement secured by the Securities and such pledge of Securities shall
not be deemed to be a transfer, sale or assignment of the Securities hereunder, and no Buyer effecting a pledge of Securities shall
be required to provide the Company with any notice thereof or otherwise make any delivery to the Company pursuant to this Agreement
or any other Transaction Document (as defined in Section 3(b)), including, without limitation, this Section 2(g).

 

    7

     

    

 

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

 

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

 

3.            
REPRESENTATIONS AND WARRANTIES OF THE COMPANY.

 

The Company represents and
warrants to each of the Buyers that, as of the date hereof and as of the Closing Date:

 

(a)               Organization
and Qualification. Each of the Company and each of its Subsidiaries are entities duly organized and validly existing and in good
standing under the laws of the jurisdiction in which they are formed, and have the requisite power and authority to own their
properties and to carry on their business as now being conducted and as presently proposed to be conducted. Each of the Company and
each of its Subsidiaries is duly qualified as a foreign entity to do business and is in good standing in every jurisdiction in which
its ownership of property or the nature of the business conducted by it makes such qualification necessary, except to the extent
that the failure to be so qualified or be in good standing would not reasonably be expected to have a Material Adverse Effect (as
defined below). As used in this Agreement, “Material Adverse Effect” means any material adverse effect on (i) the
business, properties, assets, liabilities, operations (including results thereof), condition (financial or otherwise) or prospects
of the Company or any Subsidiary, individually or taken as a whole, (ii) the transactions contemplated hereby or in any of the other
Transaction Documents or any other agreements or instruments to be entered into in connection herewith or therewith or (iii) the
authority or ability of the Company or any of its Subsidiaries to perform any of their respective obligations under any of the
Transaction Documents (as defined below). Other than the Persons (as defined below) set forth on Schedule 3(a), the Company has
no Subsidiaries. “Subsidiaries” means any Person in which the Company, directly or indirectly, (I) owns any of
the outstanding capital stock or holds any equity or similar interest of such Person or (II) controls or operates all or any part of
the business, operations or administration of such Person, and each of the foregoing, is individually referred to herein as a
 “Subsidiary.”

 

    8

     

    

 

(b)              
Authorization; Enforcement; Validity. The Company has the requisite power and authority to enter into and perform its obligations
under this Agreement and the other Transaction Documents, to consummate the Exchange and to issue the Securities in accordance with the
terms hereof and thereof. The execution and delivery of this Agreement and the other Transaction Documents by the Company, and the consummation
by the Company of the transactions contemplated hereby and thereby (including, without limitation, the Exchange, the issuance of the Preferred
Shares and the reservation for issuance and issuance of the Conversion Shares issuable upon conversion of the Preferred Shares, the issuance
of the Common Warrants and the reservation for issuance and issuance of the Warrant Common Shares issuable upon exercise of the Common
Warrants and the issuance of the Preferred Warrants and the reservation for issuance and issuance of the Warrant Preferred Shares issuable
upon exercise of the Preferred Warrants) have been duly authorized by the Company’s board of directors or other governing body,
as applicable, and (other than the filing with the SEC of one or more Registration Statements in accordance with the requirements of the
Registration Rights Agreement, a Form D with the SEC and any other filings as may be required by any state securities agencies) no further
filing, consent or authorization is required by the Company, its Subsidiaries, their respective boards of directors or their stockholders
or other governing body. This Agreement has been, and the other Transaction Documents to which it is a party will be prior to the Closing,
duly executed and delivered by the Company, and each constitutes the legal, valid and binding obligations of the Company, enforceable
against the Company in accordance with its respective terms, except as such enforceability may be limited by general principles of equity
or applicable bankruptcy, insolvency, reorganization, moratorium, liquidation or similar laws relating to, or affecting generally, the
enforcement of applicable creditors’ rights and remedies and except as rights to indemnification and to contribution may be limited
by federal or state securities law. The Certificates of Designations in the form attached hereto as Exhibit A-1, Exhibit
A-2 and Exhibit A-3 have been filed with the Secretary of State of the State of Delaware and is in full force and
effect, enforceable against the Company in accordance with its terms and has not have been amended. “Transaction Documents”
means, collectively, this Agreement, the Preferred Shares, the Common Warrants, the Preferred Warrants, the Certificates of Designations,
the Registration Rights Agreement, the Irrevocable Transfer Agent Instructions (as defined below) and each of the other agreements and
instruments entered into or delivered by any of the parties hereto in connection with the transactions contemplated hereby and thereby,
as may be amended from time to time.

 

(c)               Issuance
of Securities. The issuance of the Initial Series G Preferred Shares are duly authorized and upon issuance in accordance with
the terms of the Transaction Documents shall be validly issued fully paid and non-assessable and free from all preemptive or similar
rights, mortgages, defects, claims, liens, pledges, charges, taxes, rights of first refusal, encumbrances, security interests and
other encumbrances (collectively “Liens”) with respect to the issuance thereof. The issuance of the Preferred
Warrants and the Common Warrants are duly authorized and upon issuance in accordance with the terms of the Transaction Documents
shall be validly issued and free from all Liens with respect to the issuance thereof. As of the Closing, the Company shall have
reserved from its duly authorized capital stock not less than the sum of (i) [        ] Conversion Shares issuable upon conversion of the
Preferred Shares, and (ii) the maximum number of Warrant Preferred Shares initially issuable upon exercise of the Preferred Warrants
(without taking into account any limitations on the exercise of the Preferred Warrants set forth therein). Upon issuance or
conversion in accordance with the Preferred Shares or exercise in accordance with the Common Warrants or the Preferred Warrants (as
the case may be), the Conversion Shares, the Warrant Common Shares and the Warrant Preferred Shares, respectively, when issued, will
be validly issued, fully paid and nonassessable and free from all preemptive or similar rights or Liens with respect to the issue
thereof, with the holders being entitled to all rights accorded to a holder of Common Stock or Preferred Shares, as the case may be.
Subject to the accuracy of the representations and warranties of the Buyers in this Agreement, the offer and issuance by the Company
of the Securities is exempt from registration under the 1933 Act.

 

    9

     

    

 

(d)              
No Conflicts. The execution, delivery and performance of the Transaction Documents by the Company and the consummation by
the Company of the transactions contemplated hereby and thereby (including, without limitation, the Exchange, the issuance of the Initial
Series G Preferred Shares, the Common Warrants, the Preferred Warrants, the Conversion Shares, the Warrant Common Shares and the Warrant
Preferred Shares and the reservation for issuance of the Conversion Shares, the Warrant Common Shares and the Warrant Preferred Shares)
will not (i) result in a violation of the Certificate of Incorporation (as defined below) (including, without limitation, any certificate
of designation contained therein), Bylaws (as defined below), certificate of formation, memorandum of association, articles of association,
bylaws or other organizational documents of the Company or any of its Subsidiaries, or any capital stock or other securities of the Company
or any of its Subsidiaries, (ii) conflict with, or constitute a default (or an event which with notice or lapse of time or both would
become a default) in any respect under, or give to others any rights of termination, amendment, acceleration or cancellation of, any agreement,
indenture or instrument to which the Company or any of its Subsidiaries is a party, or (iii) result in a violation of any law, rule, regulation,
order, judgment or decree (including, without limitation, foreign, federal and state securities laws and regulations and the rules and
regulations of the applicable Eligible Market which, as of such time of determination, is the primary market in which the Common Stock
of the Company then trades (or, if the Common Stock is not then trading on any Eligible Market, the last Eligible Market in which the
Common Stock traded) (the “Principal Market”) and including all applicable foreign, federal and state laws, rules and
regulations) applicable to the Company or any of its Subsidiaries or by which any property or asset of the Company or any of its Subsidiaries
is bound or affected. Other than the delivery by each Exchange Buyer of the Original Securities to the Company in the Exchange, no additional
consideration or other remuneration has been paid, directly or indirectly, to the Company by any Exchange Buyer with respect to the Exchange.

 

(e)               Consents.
Neither the Company nor any Subsidiary is required to obtain any consent from, authorization or order of, or make any filing or
registration with (other than the filing with the SEC of one or more Registration Statements in accordance with the requirements of
the Registration Rights Agreement, a Form D with the SEC and any other filings as may be required by any state securities agencies),
any Governmental Entity (as defined below) or any regulatory or self-regulatory agency or any other Person in order for it to
execute, deliver or perform any of its respective obligations under or contemplated by the Transaction Documents, in each case, in
accordance with the terms hereof or thereof. All consents, authorizations, orders, filings and registrations which the Company or
any Subsidiary is required to obtain pursuant to the preceding sentence have been or will be obtained or effected on or prior to the
Closing Date, and neither the Company nor any of its Subsidiaries are aware of any facts or circumstances which might prevent the
Company or any of its Subsidiaries from obtaining or effecting any of the registration, application or filings contemplated by the
Transaction Documents. The Company is not in violation of the requirements of the Principal Market and has no knowledge of any facts
or circumstances which could reasonably lead to delisting or suspension of the Common Stock in the foreseeable future.
 “Governmental Entity” means any nation, state, county, city, town, village, district, or other political
jurisdiction of any nature, federal, state, local, municipal, foreign, or other government, governmental or quasi-governmental
authority of any nature (including any governmental agency, branch, department, official, or entity and any court or other
tribunal), multi-national organization or body; or body exercising, or entitled to exercise, any administrative, executive,
judicial, legislative, police, regulatory, or taxing authority or power of any nature or instrumentality of any of the foregoing,
including any entity or enterprise owned or controlled by a government or a public international organization or any of the
foregoing.

 

    10

     

    

 

(f)               
Acknowledgment Regarding Buyer’s Acquisition of Securities. The Company acknowledges and agrees that each Buyer is
acting solely in the capacity of an arm’s length purchaser or acquirer with respect to the Transaction Documents and the transactions
contemplated hereby and thereby and that no Buyer is (i) an officer or director of the Company or any of its Subsidiaries, (ii) an “affiliate”
(as defined in Rule 144) of the Company or any of its Subsidiaries or (iii) to its knowledge, a “beneficial owner” of more
than 10% of the shares of Common Stock (as defined for purposes of Rule 13d-3 of the Securities Exchange Act of 1934, as amended (the
 “1934 Act”)). The Company further acknowledges that no Buyer is acting as a financial advisor or fiduciary of the Company
or any of its Subsidiaries (or in any similar capacity) with respect to the Transaction Documents and the transactions contemplated hereby
and thereby, and any advice given by a Buyer or any of its representatives or agents in connection with the Transaction Documents and
the transactions contemplated hereby and thereby is merely incidental to such Buyer’s purchase of the Securities and/or Exchange,
as applicable. The Company further represents to each Buyer that the Company’s decision to enter into the Transaction Documents
to which it is a party has been based solely on the independent evaluation by the Company, each Subsidiary and their respective representatives.

 

(g)               No
General Solicitation; Placement Agent’s Fees. Neither the Company, nor any of its Subsidiaries or affiliates, nor any
Person acting on its or their behalf, has engaged in any form of general solicitation or general advertising (within the meaning of
Regulation D) in connection with the offer or sale of the Securities or the Exchange. The Company shall be responsible for the
payment of any placement agent’s fees, financial advisory fees, or brokers’ commissions (other than for Persons engaged
by any Buyer or its investment advisor) relating to or arising out of the transactions contemplated hereby, including, without
limitation, placement agent fees payable to Network 1 Financial Securities, Inc., as placement agent (the “Placement
Agent”) in connection with the sale of the Securities to the Purchasing Buyers. No commission, consideration or other
remuneration has been, will be or is required to be, as applicable, paid to the Placement Agent with respect to the Exchange and the
Company has not engaged the Placement Agent with respect to any solicitation of the Exchange or otherwise with respect to the
Exchange. The fees and expenses of the Placement Agent to be paid by the Company or any of its Subsidiaries are as set forth on
Schedule 3(g) attached hereto. The Company shall pay, and hold each Buyer harmless against, any liability, loss or expense
(including, without limitation, attorney’s fees and out-of-pocket expenses) arising in connection with any such claim. The
Company acknowledges that it has solely engaged the Placement Agent in connection with the sale of the Securities to the Purchasing
Buyers. Other than the Placement Agent, neither the Company nor any of its Subsidiaries has engaged any placement agent or other
agent in connection with the offer or sale of the Securities or the Exchange.

 

    11

     

    

 

(h)              
No Integrated Offering. None of the Company, its Subsidiaries or any of their affiliates, nor any Person acting on their
behalf has, directly or indirectly, made any offers or sales of any security or solicited any offers to buy any security, under circumstances
that would require registration of the issuance of any of the Securities under the 1933 Act, whether through integration with prior offerings
or otherwise, or cause this offering of the Securities to require approval of stockholders of the Company for purposes of the 1933 Act
or under any applicable stockholder approval provisions, including, without limitation, under the rules and regulations of any exchange
or automated quotation system on which any of the securities of the Company are listed or designated for quotation. None of the Company,
its Subsidiaries, their affiliates nor any Person acting on their behalf will take any action or steps that would require registration
of the issuance of any of the Securities under the 1933 Act or cause the offering of any of the Securities to be integrated with other
offerings of securities of the Company.

 

(i)                
Dilutive Effect. The Company understands and acknowledges that the number of Conversion Shares and Warrant Common Shares
will increase in certain circumstances. The Company further acknowledges that its obligation to issue the Conversion Shares pursuant to
the terms of the Preferred Shares in accordance with this Agreement and the Convertible Preferred Certificates of Designations, the Warrant
Preferred Shares upon exercise of the Preferred Warrants in accordance with this Agreement and the Preferred Warrants and the Warrant
Common Shares upon exercise of the Common Warrants in accordance with this Agreement and the Common Warrants is, in each case, absolute
and unconditional regardless of the dilutive effect that such issuance may have on the ownership interests of other stockholders of the
Company.

 

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

 

(k)               SEC
Documents; Financial Statements. During the two (2) years prior to the date hereof, the Company has timely filed all reports,
schedules, forms, proxy statements, statements and other documents required to be filed by it with the SEC pursuant to the reporting
requirements of the 1934 Act (all of the foregoing filed prior to the date hereof and all exhibits and appendices included therein
and financial statements, notes and schedules thereto and documents incorporated by reference therein being hereinafter referred to
as the “SEC Documents”). The Company has delivered or has made available to the Buyers or their respective
representatives true, correct and complete copies of each of the SEC Documents not available on the EDGAR system. As of their
respective dates, the SEC Documents complied in all material respects with the requirements of the 1934 Act and the rules and
regulations of the SEC promulgated thereunder applicable to the SEC Documents, and none of the SEC Documents, at the time they were
filed with the SEC, contained any untrue statement of a material fact or omitted to state a material fact required to be stated
therein or necessary in order to make the statements therein, in the light of the circumstances under which they were made, not
misleading. As of their respective dates, the financial statements of the Company included in the SEC Documents complied in all
material respects with applicable accounting requirements and the published rules and regulations of the SEC with respect thereto as
in effect as of the time of filing. Such financial statements have been prepared in accordance with generally accepted accounting
principles (“GAAP”), consistently applied, during the periods involved (except (i) as may be otherwise indicated
in such financial statements or the notes thereto, or (ii) in the case of unaudited interim statements, to the extent they may
exclude footnotes or may be condensed or summary statements) and fairly present in all material respects the financial position of
the Company as of the dates thereof and the results of its operations and cash flows for the periods then ended (subject, in the
case of unaudited statements, to normal year-end audit adjustments which will not be material, either individually or in the
aggregate). The reserves, if any, established by the Company or the lack of reserves, if applicable, are reasonable based upon facts
and circumstances known by the Company on the date hereof and there are no loss contingencies that are required to be accrued by the
Statement of Financial Accounting Standard No. 5 of the Financial Accounting Standards Board which are not provided for by the
Company in its financial statements or otherwise. No other information provided by or on behalf of the Company to any of the Buyers
which is not included in the SEC Documents (including, without limitation, information referred to in Section 2(e) of this
Agreement or in the disclosure schedules to this Agreement) contains any untrue statement of a material fact or omits to state any
material fact necessary in order to make the statements therein not misleading, in the light of the circumstance under which they
are or were made. The Company is not currently contemplating to amend or restate any of the financial statements (including, without
limitation, any notes or any letter of the independent accountants of the Company with respect thereto) included in the SEC
Documents (the “Financial Statements”), nor is the Company currently aware of facts or circumstances which would
require the Company to amend or restate any of the Financial Statements, in each case, in order for any of the Financials Statements
to be in compliance with GAAP and the rules and regulations of the SEC. The Company has not been informed by its independent
accountants that they recommend that the Company amend or restate any of the Financial Statements or that there is any need for the
Company to amend or restate any of the Financial Statements.

 

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(l)                 Absence
of Certain Changes. Since the date of the Company’s most recent audited financial statements contained in a Form 10-K,
there has been no material adverse change and no material adverse development in the business, assets, liabilities, properties,
operations (including results thereof), condition (financial or otherwise) or prospects of the Company or any of its Subsidiaries.
Since the date of the Company’s most recent audited financial statements contained in a Form 10-K, neither the Company nor any
of its Subsidiaries has (i) declared or paid any dividends, (ii) sold any assets, individually or in the aggregate, outside of the
ordinary course of business or (iii) made any capital expenditures, individually or in the aggregate, outside of the ordinary course
of business. Neither the Company nor any of its Subsidiaries has taken any steps to seek protection pursuant to any law or statute
relating to bankruptcy, insolvency, reorganization, receivership, liquidation or winding up, nor does the Company or any Subsidiary
have any knowledge or reason to believe that any of their respective creditors intend to initiate involuntary bankruptcy proceedings
or any actual knowledge of any fact which would reasonably lead a creditor to do so. The Company and its Subsidiaries, individually
and on a consolidated basis, are not as of the date hereof, and after giving effect to the transactions contemplated hereby to occur
at the Closing, will not be Insolvent (as defined below). For purposes of this Section 3(l), “Insolvent” means,
(i) with respect to the Company and its Subsidiaries, on a consolidated basis, (A) the present fair saleable value of the
Company’s and its Subsidiaries’ assets is less than the amount required to pay the Company’s and its
Subsidiaries’ total Indebtedness (as defined below), (B) the Company and its Subsidiaries are unable to pay their debts and
liabilities, subordinated, contingent or otherwise, as such debts and liabilities become absolute and matured or (C) the Company and
its Subsidiaries intend to incur or believe that they will incur debts that would be beyond their ability to pay as such debts
mature; and (ii) with respect to the Company and each Subsidiary, individually, (A) the present fair saleable value of the
Company’s or such Subsidiary’s (as the case may be) assets is less than the amount required to pay its respective total
Indebtedness, (B) the Company or such Subsidiary (as the case may be) is unable to pay its respective debts and liabilities,
subordinated, contingent or otherwise, as such debts and liabilities become absolute and matured or (C) the Company or such
Subsidiary (as the case may be) intends to incur or believes that it will incur debts that would be beyond its respective ability to
pay as such debts mature. Neither the Company nor any of its Subsidiaries has engaged in any business or in any transaction, and is
not about to engage in any business or in any transaction, for which the Company’s or such Subsidiary’s remaining assets
constitute unreasonably small capital with which to conduct the business in which it is engaged as such business is now conducted
and is proposed to be conducted.

 

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(m)            
No Undisclosed Events, Liabilities, Developments or Circumstances. No event, liability, development or circumstance has
occurred or exists, or is reasonably expected to exist or occur with respect to the Company, any of its Subsidiaries or any of their respective
businesses, properties, liabilities, prospects, operations (including results thereof) or condition (financial or otherwise), that (i)
would be required to be disclosed by the Company under applicable securities laws on a registration statement on Form S-1 filed with the
SEC relating to an issuance and sale by the Company of its Common Stock and which has not been publicly announced, (ii) could have a material
adverse effect on any Buyer’s investment hereunder or (iii) could have a Material Adverse Effect.

 

(n)               Conduct
of Business; Regulatory Permits. Neither the Company nor any of its Subsidiaries is in violation of any term of or in default
under its Certificate of Incorporation, any certificate of designation, preferences or rights of any other outstanding series of
preferred stock of the Company or any of its Subsidiaries or Bylaws or their organizational charter, certificate of formation,
memorandum of association, articles of association, Certificate of Incorporation or certificate of incorporation or bylaws,
respectively. Neither the Company nor any of its Subsidiaries is in violation of any judgment, decree or order or any statute,
ordinance, rule or regulation applicable to the Company or any of its Subsidiaries, and neither the Company nor any of its
Subsidiaries will conduct its business in violation of any of the foregoing, except in all cases for possible violations which could
not, individually or in the aggregate, have a Material Adverse Effect. Without limiting the generality of the foregoing, the Company
is not in violation of any of the rules, regulations or requirements of the Principal Market and has no knowledge of any facts or
circumstances that could reasonably lead to delisting or suspension of the Common Stock by the Principal Market in the foreseeable
future. During the two years prior to the date hereof, (i) the Common Stock has been listed or designated for quotation on the
Principal Market, (ii) trading in the Common Stock has not been suspended by the SEC or the Principal Market and (iii) the Company
has received no communication, written or oral, from the SEC or the Principal Market regarding the suspension or delisting of the
Common Stock from the Principal Market. The Company and each of its Subsidiaries possess all certificates, authorizations and
permits issued by the appropriate regulatory authorities necessary to conduct their respective businesses, except where the failure
to possess such certificates, authorizations or permits would not have, individually or in the aggregate, a Material Adverse Effect,
and neither the Company nor any such Subsidiary has received any notice of proceedings relating to the revocation or modification of
any such certificate, authorization or permit. There is no agreement, commitment, judgment, injunction, order or decree binding upon
the Company or any of its Subsidiaries or to which the Company or any of its Subsidiaries is a party which has or would reasonably
be expected to have the effect of prohibiting or materially impairing any business practice of the Company or any of its
Subsidiaries, any acquisition of property by the Company or any of its Subsidiaries or the conduct of business by the Company or any
of its Subsidiaries as currently conducted other than such effects, individually or in the aggregate, which have not had and would
not reasonably be expected to have a Material Adverse Effect on the Company or any of its Subsidiaries.

 

    14

     

    

 

(o)              
Foreign Corrupt Practices. Neither the Company, the Company’s subsidiary or any director, officer, agent, employee,
nor any other person acting for or on behalf of the foregoing (individually and collectively, a “Company Affiliate”)
have violated the U.S. Foreign Corrupt Practices Act (the “FCPA”) or any other applicable anti-bribery or anti-corruption
laws, nor has any Company Affiliate offered, paid, promised to pay, or authorized the payment of any money, or offered, given, promised
to give, or authorized the giving of anything of value, to any officer, employee or any other person acting in an official capacity for
any Governmental Entity to any political party or official thereof or to any candidate for political office (individually and collectively,
a “Government Official”) or to any person under circumstances where such Company Affiliate knew or was aware of a
high probability that all or a portion of such money or thing of value would be offered, given or promised, directly or indirectly, to
any Government Official, for the purpose of:

 

(i)                
(A) influencing any act or decision of such Government Official in his/her official capacity, (B) inducing such Government Official
to do or omit to do any act in violation of his/her lawful duty, (C) securing any improper advantage, or (D) inducing such Government
Official to influence or affect any act or decision of any Governmental Entity, or

 

(ii)             
assisting the Company or its Subsidiaries in obtaining or retaining business for or with, or directing business to, the Company
or its Subsidiaries.

 

    15

     

    

 

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

 

(q)              
Transactions With Affiliates. No current or former employee, partner, director, officer or stockholder (direct or indirect)
of the Company or its Subsidiaries, or any associate, or, to the knowledge of the Company, any affiliate of any thereof, or any relative
with a relationship no more remote than first cousin of any of the foregoing, is presently, or has ever been, (i) a party to any transaction
with the Company or its Subsidiaries (including any contract, agreement or other arrangement providing for the furnishing of services
by, or rental of real or personal property from, or otherwise requiring payments to, any such director, officer or stockholder or such
associate or affiliate or relative Subsidiaries (other than for ordinary course services as employees, officers or directors of the Company
or any of its Subsidiaries)) or (ii) the direct or indirect owner of an interest in any corporation, firm, association or business organization
which is a competitor, supplier or customer of the Company or its Subsidiaries (except for a passive investment (direct or indirect) in
less than 5% of the common stock of a company whose securities are traded on or quoted through an Eligible Market (as defined in the Convertible
Preferred Certificate of Designations)), nor does any such Person receive income from any source other than the Company or its Subsidiaries
which relates to the business of the Company or its Subsidiaries or should properly accrue to the Company or its Subsidiaries. No employee,
officer, stockholder or director of the Company or any of its Subsidiaries or member of his or her immediate family is indebted to the
Company or its Subsidiaries, as the case may be, nor is the Company or any of its Subsidiaries indebted (or committed to make loans or
extend or guarantee credit) to any of them, other than (i) for payment of salary for services rendered, (ii) reimbursement for reasonable
expenses incurred on behalf of the Company, and (iii) for other standard employee benefits made generally available to all employees or
executives (including stock option agreements outstanding under any stock option plan approved by the Board of Directors of the Company).

 

(r)               
Equity Capitalization. 

 

(i)                
Definitions:

 

(A)       “Common
Stock” means (x) the Company’s shares of common stock, $0.0001 par value per share, and (y) any capital stock into
which such common stock shall have been changed or any share capital resulting from a reclassification of such common stock.

 

(B)       “Preferred
Stock” means (x) the Company’s blank check preferred stock, $0.0001 par value per share, the terms of which may be designated
by the board of directors of the Company in a certificate of designations and (y) any capital stock into which such preferred stock shall
have been changed or any share capital resulting from a reclassification of such preferred stock (other than a conversion of such preferred
stock into Common Stock in accordance with the terms of such certificate of designations).

 

(ii)              Authorized
and Outstanding Capital Stock. As of the date hereof, the authorized capital stock of the Company consists of (A) 50,000,000
shares of Common Stock, of which, 35,199,478 are issued and outstanding and 14,259,023 shares are reserved for issuance pursuant to
Convertible Securities (as defined below) (other than the Preferred Shares and the Common Warrants) exercisable or exchangeable for,
or convertible into, shares of Common Stock and (B) (i) 333,401 shares of Series A Redeemable Preferred Stock, 333,401 of which are
issued and 95,312 are outstanding, (ii) 1,111,200 shares of Series B Preferred Stock, 428,333 of which are issued and none are
outstanding, (iii) 1,000,000 shares of Series C Preferred Stock of the Company (the “Series C Preferred Stock”),
427,500 of which are issued and 417,500 are outstanding, (iv), 20,000 shares of Series D Preferred Stock, 18,850 of which are issued
and 6,250 are outstanding, (v) 714,519 shares of Series E Preferred Stock, 714,519 of which are issued and none are outstanding, and
(ii) 30,090 shares of Series F Preferred Stock, 13,611 of which are issued and 11,002 are outstanding. No shares of Common Stock are
held in the treasury of the Company. “Convertible Securities” means any capital stock or other security of the Company
or any of its Subsidiaries that is at any time and under any circumstances directly or indirectly convertible into, exercisable or
exchangeable for, or which otherwise entitles the holder thereof to acquire, any capital stock or other security of the Company
(including, without limitation, Common Stock) or any of its Subsidiaries.

 

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(iii)           
Valid Issuance; Available Shares; Affiliates. All of such outstanding shares are duly authorized and have been, or upon
issuance will be, validly issued and are fully paid and nonassessable. Schedule 3(r)(iii) sets forth the number of shares of Common
Stock that are (A) reserved for issuance pursuant to Convertible Securities (as defined below) (other than the Preferred Shares and the
Common Warrants) and (B) that are, as of the date hereof, owned by Persons who are “affiliates” (as defined in Rule 405 of
the 1933 Act and calculated based on the assumption that only officers, directors and holders of at least 10% of the Company’s issued
and outstanding Common Stock are “affiliates” without conceding that any such Persons are “affiliates” for purposes
of federal securities laws) of the Company or any of its Subsidiaries. To the Company’s knowledge, no Person owns 10% or more of
the Company’s issued and outstanding shares of Common Stock (calculated based on the assumption that all Convertible Securities
(as defined below), whether or not presently exercisable or convertible, have been fully exercised or converted (as the case
may be) taking account of any limitations on exercise or conversion (including “blockers”) contained therein without conceding
that such identified Person is a 10% stockholder for purposes of federal securities laws).

 

(iv)             Existing
Securities; Obligations. Except as disclosed in the SEC Documents: (A) none of the Company’s or any Subsidiary’s
shares, interests or capital stock is subject to preemptive rights or any other similar rights or Liens suffered or permitted by the
Company or any Subsidiary; (B) there are no outstanding options, warrants, scrip, rights to subscribe to, calls or commitments of
any character whatsoever relating to, or securities or rights convertible into, or exercisable or exchangeable for, any shares,
interests or capital stock of the Company or any of its Subsidiaries, or contracts, commitments, understandings or arrangements by
which the Company or any of its Subsidiaries is or may become bound to issue additional shares, interests or capital stock of the
Company or any of its Subsidiaries or options, warrants, scrip, rights to subscribe to, calls or commitments of any character
whatsoever relating to, or securities or rights convertible into, or exercisable or exchangeable for, any shares, interests or
capital stock of the Company or any of its Subsidiaries; (C) there are no agreements or arrangements under which the Company or any
of its Subsidiaries is obligated to register the sale of any of their securities under the 1933 Act (except pursuant to the
Registration Rights Agreement); (D) there are no outstanding securities or instruments of the Company or any of its Subsidiaries
which contain any redemption or similar provisions, and there are no contracts, commitments, understandings or arrangements by which
the Company or any of its Subsidiaries is or may become bound to redeem a security of the Company or any of its Subsidiaries; (E)
there are no securities or instruments containing anti-dilution or similar provisions that will be triggered by the issuance of the
Securities; and (F) neither the Company nor any Subsidiary has any stock appreciation rights or “phantom stock” plans or
agreements or any similar plan or agreement.

 

    17

     

    

 

(v)              
Organizational Documents. The Company has furnished to the Buyers true, correct and complete copies of the Company’s
Certificate of Incorporation, as amended and as in effect on the date hereof (the “Certificate of Incorporation”),
and the Company’s bylaws, as amended and as in effect on the date hereof (the “Bylaws”), and the terms of all
Convertible Securities and the material rights of the holders thereof in respect thereto.

 

(s)                Indebtedness
and Other Contracts. Neither the Company nor any of its Subsidiaries, (i) except as disclosed on Schedule 3(r), has
any outstanding debt securities, notes, credit agreements, credit facilities or other agreements, documents or instruments
evidencing Indebtedness of the Company or any of its Subsidiaries or by which the Company or any of its Subsidiaries is or may
become bound, (ii) is a party to any contract, agreement or instrument, the violation of which, or default under which, by the other
party(ies) to such contract, agreement or instrument could reasonably be expected to result in a Material Adverse Effect, (iii) has
any financing statements securing obligations in any amounts filed in connection with the Company or any of its Subsidiaries; (iv)
is in violation of any term of, or in default under, any contract, agreement or instrument relating to any Indebtedness, except
where such violations and defaults would not result, individually or in the aggregate, in a Material Adverse Effect, or (v) is a
party to any contract, agreement or instrument relating to any Indebtedness, the performance of which, in the judgment of the
Company’s officers, has or is expected to have a Material Adverse Effect. Neither the Company nor any of its Subsidiaries have
any liabilities or obligations required to be disclosed in the SEC Documents which are not so disclosed in the SEC Documents, other
than those incurred in the ordinary course of the Company’s or its Subsidiaries’ respective businesses and which,
individually or in the aggregate, do not or could not have a Material Adverse Effect. For purposes of this Agreement: (x)
 “Indebtedness” of any Person means, without duplication (A) all indebtedness for borrowed money, (B) all
obligations issued, undertaken or assumed as the deferred purchase price of property or services (including, without limitation,
 “capital leases” in accordance with GAAP) (other than trade payables entered into in the ordinary course of business
consistent with past practice), (C) all reimbursement or payment obligations with respect to letters of credit, surety bonds and
other similar instruments, (D) all obligations evidenced by notes, bonds, debentures or similar instruments, including obligations
so evidenced incurred in connection with the acquisition of property, assets or businesses, (E) all indebtedness created or arising
under any conditional sale or other title retention agreement, or incurred as financing, in either case with respect to any property
or assets acquired with the proceeds of such indebtedness (even though the rights and remedies of the seller or bank under such
agreement in the event of default are limited to repossession or sale of such property), (F) all monetary obligations under any
leasing or similar arrangement which, in connection with GAAP, consistently applied for the periods covered thereby, is classified
as a capital lease, (G) all indebtedness referred to in clauses (A) through (F) above secured by (or for which the holder of such
Indebtedness has an existing right, contingent or otherwise, to be secured by) any Lien upon or in any property or assets (including
accounts and contract rights) owned by any Person, even though the Person which owns such assets or property has not assumed or
become liable for the payment of such indebtedness, and (H) all Contingent Obligations in respect of indebtedness or obligations of
others of the kinds referred to in clauses (A) through (G) above; and (y) “Contingent Obligation” means, as to
any Person, any direct or indirect liability, contingent or otherwise, of that Person with respect to any Indebtedness, lease,
dividend or other obligation of another Person if the primary purpose or intent of the Person incurring such liability, or the
primary effect thereof, is to provide assurance to the obligee of such liability that such liability will be paid or discharged, or
that any agreements relating thereto will be complied with, or that the holders of such liability will be protected (in whole or in
part) against loss with respect thereto.

 

    18

     

    

 

(t)                
Litigation. There is no action, suit, arbitration, proceeding, inquiry or investigation before or by the Principal Market,
any court, public board, other Governmental Entity, self-regulatory organization or body pending or, to the knowledge of the Company,
threatened against or affecting the Company or any of its Subsidiaries, the Common Stock or any of the Company’s or its Subsidiaries’
officers or directors, whether of a civil or criminal nature or otherwise, in their capacities as such, except as set forth in Schedule
3(t). No director, officer or employee of the Company or any of its subsidiaries has willfully violated 18 U.S.C. §1519 or engaged
in spoliation in reasonable anticipation of litigation. Without limitation of the foregoing, there has not been, and to the knowledge
of the Company, there is not pending or contemplated, any investigation by the SEC involving the Company, any of its Subsidiaries or any
current or former director or officer of the Company or any of its Subsidiaries. The SEC has not issued any stop order or other order
suspending the effectiveness of any registration statement filed by the Company under the 1933 Act or the 1934 Act. After reasonable inquiry
of its employees, the Company is not aware of any fact which might result in or form the basis for any such action, suit, arbitration,
investigation, inquiry or other proceeding. Neither the Company nor any of its Subsidiaries is subject to any order, writ, judgment, injunction,
decree, determination or award of any Governmental Entity.

 

(u)              
Insurance. The Company and each of its Subsidiaries are insured by insurers of recognized financial responsibility against
such losses and risks and in such amounts as management of the Company believes to be prudent and customary in the businesses in which
the Company and its Subsidiaries are engaged. Neither the Company nor any such Subsidiary has been refused any insurance coverage sought
or applied for, and neither the Company nor any such Subsidiary has any reason to believe that it will be unable to renew its existing
insurance coverage as and when such coverage expires or to obtain similar coverage from similar insurers as may be necessary to continue
its business at a cost that would not have a Material Adverse Effect.

 

(v)               Employee
Relations. Neither the Company nor any of its Subsidiaries is a party to any collective bargaining agreement or employs any
member of a union. The Company and its Subsidiaries believe that their relations with their employees are good. No executive officer
(as defined in Rule 501(f) promulgated under the 1933 Act) or other key employee of the Company or any of its Subsidiaries has
notified the Company or any such Subsidiary that such officer intends to leave the Company or any such Subsidiary or otherwise
terminate such officer’s employment with the Company or any such Subsidiary. No current (or former) executive officer or other
key employee of the Company or any of its Subsidiaries is, or is now expected to be, in violation of any material term of any
employment contract, confidentiality, disclosure or proprietary information agreement, non-competition agreement, or any other
contract or agreement or any restrictive covenant, and the continued employment of each such executive officer or other key employee
(as the case may be) does not subject the Company or any of its Subsidiaries to any liability with respect to any of the foregoing
matters. The Company and its Subsidiaries are in compliance with all federal, state, local and foreign laws and regulations
respecting labor, employment and employment practices and benefits, terms and conditions of employment and wages and hours, except
where failure to be in compliance would not, either individually or in the aggregate, reasonably be expected to result in a Material
Adverse Effect.

 

    19

     

    

 

(w)            
Title.

 

(i)                
Real Property. Each of the Company and its Subsidiaries holds good title to all real property, leases in real property,
facilities or other interests in real property owned or held by the Company or any of its Subsidiaries (the “Real Property”)
owned by the Company or any of its Subsidiaries (as applicable). The Real Property is free and clear of all Liens and is not subject to
any rights of way, building use restrictions, exceptions, variances, reservations, or limitations of any nature except for (a) Liens for
current taxes not yet due and (b) zoning laws and other land use restrictions that do not impair the present or anticipated use of the
property subject thereto. Any Real Property held under lease by the Company or any of its Subsidiaries are held by them under valid, subsisting
and enforceable leases with such exceptions as are not material and do not interfere with the use made and proposed to be made of such
property and buildings by the Company or any of its Subsidiaries.

 

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

 

(x)               Intellectual
Property Rights. The Company and its Subsidiaries own or possess adequate rights or licenses to use all trademarks, trade names,
service marks, service mark registrations, service names, original works of authorship, patents, patent rights, copyrights,
inventions, licenses, approvals, governmental authorizations, trade secrets and other intellectual property rights and all
applications and registrations therefor (“Intellectual Property Rights”) necessary to conduct their respective
businesses as now conducted and presently proposed to be conducted. Each of patents owned by the Company or any of its Subsidiaries
is listed on Schedule 3(x)(i). Except as set forth in Schedule 3(x)(ii), none of the Company’s Intellectual Property Rights
have expired or terminated or have been abandoned or are expected to expire or terminate or are expected to be abandoned, within
three years from the date of this Agreement. The Company does not have any knowledge of any infringement by the Company or its
Subsidiaries of Intellectual Property Rights of others. There is no claim, action or proceeding being made or brought, or to the
knowledge of the Company or any of its Subsidiaries, being threatened, against the Company or any of its Subsidiaries regarding its
Intellectual Property Rights. Neither the Company nor any of its Subsidiaries is aware of any facts or circumstances which might
give rise to any of the foregoing infringements or claims, actions or proceedings. The Company and its Subsidiaries have taken
reasonable security measures to protect the secrecy, confidentiality and value of all of their Intellectual Property Rights.

 

    20

     

    

 

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

 

(ii)             
No Hazardous Materials:

 

(A)            
have been disposed of or otherwise released from any Real Property of the Company or any of its Subsidiaries in violation of any
Environmental Laws; or

 

(B)             
are present on, over, beneath, in or upon any Real Property or any portion thereof in quantities that would constitute a violation
of any Environmental Laws. No prior use by the Company or any of its Subsidiaries of any Real Property has occurred that violates any
Environmental Laws, which violation would have a material adverse effect on the business of the Company or any of its Subsidiaries.

 

    21

     

    

 

(iii)           
 Neither the Company nor any of its Subsidiaries knows of any other person who or entity which has stored, treated, recycled, disposed
of or otherwise located on any Real Property any Hazardous Materials, including, without limitation, such substances as asbestos and polychlorinated
biphenyls.

 

(iv)            
None of the Real Properties are on any federal or state “Superfund” list or Liability Information System (“CERCLIS”)
list or any state environmental agency list of sites under consideration for CERCLIS, nor subject to any environmental related Liens.

 

(z)              
Subsidiary Rights. The Company or one of its Subsidiaries has the unrestricted right to vote, and (subject to limitations
imposed by applicable law) to receive dividends and distributions on, all capital securities of its Subsidiaries as owned by the Company
or such Subsidiary.

 

(aa)           
Tax Status. The Company and each of its Subsidiaries (i) has timely made or filed all foreign, federal and state income
and all other tax returns, reports and declarations required by any jurisdiction to which it is subject, (ii) has timely paid all taxes
and other governmental assessments and charges that are material in amount, shown or determined to be due on such returns, reports and
declarations, except those being contested in good faith and (iii) has set aside on its books provision reasonably adequate for the payment
of all taxes for periods subsequent to the periods to which such returns, reports or declarations apply. There are no unpaid taxes in
any material amount claimed to be due by the taxing authority of any jurisdiction, and the officers of the Company and its Subsidiaries
know of no basis for any such claim. The Company is not operated in such a manner as to qualify as a passive foreign investment company,
as defined in Section 1297 of the Code. The net operating loss carryforwards (“NOLs”) for United States federal income
tax purposes of the consolidated group of which the Company is the common parent, if any, shall not be adversely effected by the transactions
contemplated hereby. The transactions contemplated hereby do not constitute an “ownership change” within the meaning of Section
382 of the Code, thereby preserving the Company’s ability to utilize such NOLs.

 

(bb)           Internal
Accounting and Disclosure Controls. The Company and each of its Subsidiaries maintains internal control over financial reporting
(as such term is defined in Rule 13a-15(f) under the 1934 Act) that is effective to provide reasonable assurance regarding the
reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally
accepted accounting principles, including that (i) transactions are executed in accordance with management’s general or
specific authorizations, (ii) transactions are recorded as necessary to permit preparation of financial statements in conformity
with GAAP and to maintain asset and liability accountability, (iii) access to assets or incurrence of liabilities is permitted only
in accordance with management’s general or specific authorization and (iv) the recorded accountability for assets and
liabilities is compared with the existing assets and liabilities at reasonable intervals and appropriate action is taken with
respect to any difference. The Company maintains disclosure controls and procedures (as such term is defined in Rule 13a-15(e) under
the 1934 Act) that are effective in ensuring that information required to be disclosed by the Company in the reports that it files
or submits under the 1934 Act is recorded, processed, summarized and reported, within the time periods specified in the rules and
forms of the SEC, including, without limitation, controls and procedures designed to ensure that information required to be
disclosed by the Company in the reports that it files or submits under the 1934 Act is accumulated and communicated to the
Company’s management, including its principal executive officer or officers and its principal financial officer or officers,
as appropriate, to allow timely decisions regarding required disclosure. Neither the Company nor any of its Subsidiaries has
received any notice or correspondence from any accountant, Governmental Entity or other Person relating to any potential material
weakness or significant deficiency in any part of the internal controls over financial reporting of the Company or any of its
Subsidiaries.

 

    22

     

    

 

(cc)           
Off Balance Sheet Arrangements. There is no transaction, arrangement, or other relationship between the Company or any of
its Subsidiaries and an unconsolidated or other off balance sheet entity that is required to be disclosed by the Company in its 1934 Act
filings and is not so disclosed or that otherwise could be reasonably likely to have a Material Adverse Effect.

 

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

 

(ee)            Acknowledgement
Regarding Buyers’ Trading Activity. It is understood and acknowledged by the Company that (i) following the public
disclosure of the transactions contemplated by the Transaction Documents, in accordance with the terms thereof, none of the Buyers
have been asked by the Company or any of its Subsidiaries to agree, nor has any Buyer agreed with the Company or any of its
Subsidiaries, to desist from effecting any transactions in or with respect to (including, without limitation, purchasing or selling,
long and/or short) any securities of the Company, or “derivative” securities based on securities issued by the Company
or to hold any of the Securities for any specified term; (ii) any Buyer, and counterparties in “derivative” transactions
to which any such Buyer is a party, directly or indirectly, presently may have a “short” position in the Common Stock
which was established prior to such Buyer’s knowledge of the transactions contemplated by the Transaction Documents; (iii)
each Buyer shall not be deemed to have any affiliation with or control over any arm’s length counterparty in any
 “derivative” transaction; and (iv) each Buyer may rely on the Company’s obligation to timely deliver shares of
Common Stock upon conversion, exercise or exchange, as applicable, of the Securities as and when required pursuant to the
Transaction Documents for purposes of effecting trading in the Common Stock of the Company. The Company further understands and
acknowledges that following the public disclosure of the transactions contemplated by the Transaction Documents pursuant to the
Press Release (as defined below) one or more Buyers may engage in hedging and/or trading activities (including, without limitation,
the location and/or reservation of borrowable shares of Common Stock) at various times during the period that the Securities are
outstanding, including, without limitation, during the periods that the value and/or number of the Warrant Common Shares or
Conversion Shares, as applicable, deliverable with respect to the Securities are being determined and such hedging and/or trading
activities (including, without limitation, the location and/or reservation of borrowable shares of Common Stock), if any, can reduce
the value of the existing stockholders’ equity interest in the Company both at and after the time the hedging and/or trading
activities are being conducted. The Company acknowledges that such aforementioned hedging and/or trading activities do not
constitute a breach of this Agreement, the Certificates of Designations, the Preferred Warrants, the Common Warrants or any other
Transaction Document or any of the documents executed in connection herewith or therewith.

 

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(ff)             
Manipulation of Price. Neither the Company nor any of its Subsidiaries has, and, to the knowledge of the Company, no Person
acting on their behalf has, directly or indirectly, (i) taken any action designed to cause or to result in the stabilization or manipulation
of the price of any security of the Company or any of its Subsidiaries to facilitate the sale or resale of any of the Securities, (ii)
sold, bid for, purchased, or paid any compensation for soliciting purchases of, any of the Securities (other than the Placement Agent),
(iii) paid or agreed to pay to any Person any compensation for soliciting another to purchase any other securities of the Company or any
of its Subsidiaries or (iv) paid or agreed to pay any Person for research services with respect to any securities of the Company or any
of its Subsidiaries.

 

(gg)          
U.S. Real Property Holding Corporation. Neither the Company nor any of its Subsidiaries is, or has ever been, and so long
as any of the Securities are held by any of the Buyers, shall become, a U.S. real property holding corporation within the meaning of Section 897
of the Code, and the Company and each Subsidiary shall so certify upon any Buyer’s request.

 

(hh)          
Registration Eligibility. The Company is eligible to register the Registrable Securities for resale by the Buyers using
Form S-1 promulgated under the 1933 Act.

 

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

 

(jj)             
Bank Holding Company Act. Neither the Company nor any of its Subsidiaries is subject to the Bank Holding Company Act of
1956, as amended (the “BHCA”) and to regulation by the Board of Governors of the Federal Reserve System (the “Federal
Reserve”). Neither the Company nor any of its Subsidiaries or affiliates owns or controls, directly or indirectly, five percent
(5%) or more of the outstanding shares of any class of voting securities or twenty-five percent (25%) or more of the total equity of a
bank or any entity that is subject to the BHCA and to regulation by the Federal Reserve. Neither the Company nor any of its Subsidiaries
or affiliates exercises a controlling influence over the management or policies of a bank or any entity that is subject to the BHCA and
to regulation by the Federal Reserve.

 

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

 

(ll)              Illegal
or Unauthorized Payments; Political Contributions. Neither the Company nor any of its Subsidiaries nor, to the best of the
Company’s knowledge (after reasonable inquiry of its officers and directors), any of the officers, directors, employees,
agents or other representatives of the Company or any of its Subsidiaries or any other business entity or enterprise with which the
Company or any Subsidiary is or has been affiliated or associated, has, directly or indirectly, made or authorized any payment,
contribution or gift of money, property, or services, whether or not in contravention of applicable law, (i) as a kickback or bribe
to any Person or (ii) to any political organization, or the holder of or any aspirant to any elective or appointive public office
except for personal political contributions not involving the direct or indirect use of funds of the Company or any of its
Subsidiaries.

 

    24

     

    

 

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

 

(nn)          
Management. Except as set forth in Schedule 3(nn) hereto, during the past five year period, no current or former
officer or director or, to the knowledge of the Company, no current ten percent (10%) or greater stockholder of the Company or any of
its Subsidiaries has been the subject of:

 

(i)                
a petition under bankruptcy laws or any other insolvency or moratorium law or the appointment by a court of a receiver, fiscal
agent or similar officer for such Person, or any partnership in which such person was a general partner at or within two years before
the filing of such petition or such appointment, or any corporation or business association of which such person was an executive officer
at or within two years before the time of the filing of such petition or such appointment;

 

(ii)             
a conviction in a criminal proceeding or a named subject of a pending criminal proceeding (excluding traffic violations that do
not relate to driving while intoxicated or driving under the influence);

 

(iii)           
any order, judgment or decree, not subsequently reversed, suspended or vacated, of any court of competent jurisdiction, permanently
or temporarily enjoining any such person from, or otherwise limiting, the following activities:

 

(1)              
Acting as a futures commission merchant, introducing broker, commodity trading advisor, commodity pool operator, floor broker,
leverage transaction merchant, any other person regulated by the United States Commodity Futures Trading Commission or an associated person
of any of the foregoing, or as an investment adviser, underwriter, broker or dealer in securities, or as an affiliated person, director
or employee of any investment company, bank, savings and loan association or insurance company, or engaging in or continuing any conduct
or practice in connection with such activity;

 

(2)              
Engaging in any particular type of business practice; or

 

(3)              
Engaging in any activity in connection with the purchase or sale of any security or commodity or in connection with any violation
of securities laws or commodities laws;

 

    25

     

    

 

(iv)            
 any order, judgment or decree, not subsequently reversed, suspended or vacated, of any authority barring, suspending or otherwise
limiting for more than sixty (60) days the right of any such person to engage in any activity described in the preceding sub paragraph,
or to be associated with persons engaged in any such activity;

 

(v)              
a finding by a court of competent jurisdiction in a civil action or by the SEC or other authority to have violated any securities
law, regulation or decree and the judgment in such civil action or finding by the SEC or any other authority has not been subsequently
reversed, suspended or vacated; or

 

(vi)            
a finding by a court of competent jurisdiction in a civil action or by the Commodity Futures Trading Commission to have violated
any federal commodities law, and the judgment in such civil action or finding has not been subsequently reversed, suspended or vacated.

 

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

 

(pp)          
No Disagreements with Accountants and Lawyers. There are no material disagreements of any kind presently existing, or
reasonably anticipated by the Company to arise, between the Company and the accountants and lawyers formerly or presently employed by
the Company and the Company is current with respect to any fees owed to its accountants and lawyers which could affect the Company’s
ability to perform any of its obligations under any of the Transaction Documents. In addition, on or prior to the date hereof, the Company
had discussions with its accountants about its financial statements previously filed with the SEC. Based on those discussions, the Company
has no reason to believe that it will need to restate any such financial statements or any part thereof.

 

(qq)           No
Disqualification Events. With respect to Securities to be offered and sold hereunder in reliance on Rule 506(b) under the
1933 Act (“Regulation D Securities”), none of the Company, any of its predecessors, any affiliated issuer, any
director, executive officer, other officer of the Company participating in the offering contemplated hereby, any beneficial owner of
20% or more of the Company’s outstanding voting equity securities, calculated on the basis of voting power, nor any promoter
(as that term is defined in Rule 405 under the 1933 Act) connected with the Company in any capacity at the time of sale (each, an
 “Issuer Covered Person” and, together, “Issuer Covered Persons”) is subject to any of the
 “Bad Actor” disqualifications described in Rule 506(d)(1)(i) to (viii) under the 1933 Act (a “Disqualification
Event”), except for a Disqualification Event covered by Rule 506(d)(2) or (d)(3). The Company has exercised reasonable
care to determine whether any Issuer Covered Person is subject to a Disqualification Event. The Company has complied, to the extent
applicable, with its disclosure obligations under Rule 506(e), and has furnished to the Buyers a copy of any disclosures provided
thereunder.

 

    26

     

    

 

(rr)             
Other Covered Persons. The Company is not aware of any Person (other than the Placement Agent) that has been or will
be paid (directly or indirectly) remuneration for solicitation of Buyers or potential purchasers in connection with the sale of any Regulation
D Securities.

 

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

 

(tt)             
Public Utility Holding Act. None of the Company nor any of its Subsidiaries is a “holding company,” or an “affiliate”
of a “holding company,” as such terms are defined in the Public Utility Holding Act of 2005.

 

(uu)          
Federal Power Act. None of the Company nor any of its Subsidiaries is subject to regulation as a “public utility”
under the Federal Power Act, as amended.

 

(vv)           .
The Company Cybersecurity. The Company and its Subsidiaries’ information technology assets and equipment, computers,
systems, networks, hardware, software, websites, applications, and databases (collectively, “IT Systems”) are
adequate for, and operate and perform in all material respects as required in connection with the operation of the business of the
Company and its subsidiaries as currently conducted, free and clear of all material bugs, errors, defects, Trojan horses, time
bombs, malware and other corruptants that would reasonably be expected to have a Material Adverse Effect on the Company’s
business. The Company and its Subsidiaries have implemented and maintained commercially reasonable physical, technical and
administrative controls, policies, procedures, and safeguards to maintain and protect their material confidential information and
the integrity, continuous operation, redundancy and security of all IT Systems and data, including “Personal Data,” used
in connection with their businesses. “Personal Data” means (i) a natural person’s name, street address,
telephone number, e-mail address, photograph, social security number or tax identification number, driver’s license number,
passport number, credit card number, bank information, or customer or account number; (ii) any information which would qualify as
 “personally identifying information” under the Federal Trade Commission Act, as amended; (iii) “personal
data” as defined by the European Union General Data Protection Regulation (“GDPR”) (EU 2016/679); (iv) any
information which would qualify as “protected health information” under the Health Insurance Portability and
Accountability Act of 1996, as amended by the Health Information Technology for Economic and Clinical Health Act (collectively,
 “HIPAA”); and (v) any other piece of information that allows the identification of such natural person, or his or
her family, or permits the collection or analysis of any data related to an identified person’s health or sexual orientation.
There have been no breaches, violations, outages or unauthorized uses of or accesses to same, except for those that have been
remedied without material cost or liability or the duty to notify any other person or such, nor any incidents under internal review
or investigations relating to the same except in each case, where such would not, either individually or in the aggregate,
reasonably be expected to result in a Material Adverse Effect. The Company and its Subsidiaries are presently in compliance with all
applicable laws or statutes and all judgments, orders, rules and regulations of any court or arbitrator or governmental or
regulatory authority, internal policies and contractual obligations relating to the privacy and security of IT Systems and Personal
Data and to the protection of such IT Systems and Personal Data from unauthorized use, access, misappropriation or modification
except in each case, where such would not, either individually or in the aggregate, reasonably be expected to result in a Material
Adverse Effect.

 

    27

     

    

 

(ww)      
Compliance with Data Privacy Laws. The Company and its Subsidiaries are, and at all prior times were, in compliance with
all applicable state and federal data privacy and security laws and regulations, including without limitation HIPAA, and the Company and
its Subsidiaries have taken commercially reasonable actions to prepare to comply with, and since May 25, 2018, have been and currently
are in compliance with, the GDPR (EU 2016/679) (collectively, the “Privacy Laws”) except in each case, where such would
not, either individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect. To ensure compliance with
the Privacy Laws, the Company and its Subsidiaries have in place, comply with, and take appropriate steps reasonably designed to ensure
compliance in all material respects with their policies and procedures relating to data privacy and security and the collection, storage,
use, disclosure, handling, and analysis of Personal Data (the “Policies”). The Company and its Subsidiaries have at
all times made all disclosures to users or customers required by applicable laws and regulatory rules or requirements, and none of such
disclosures made or contained in any Policy have, to the knowledge of the Company, been inaccurate or in violation of any applicable laws
and regulatory rules or requirements in any material respect. The Company further certifies that neither it nor any Subsidiary: (i) has
received notice of any actual or potential liability under or relating to, or actual or potential violation of, any of the Privacy Laws,
and has no knowledge of any event or condition that would reasonably be expected to result in any such notice; (ii) is currently conducting
or paying for, in whole or in part, any investigation, remediation, or other corrective action pursuant to any Privacy Law; or (iii) is
a party to any order, decree, or agreement that imposes any obligation or liability under any Privacy Law.

 

(xx)           Disclosure.
The Company confirms that neither it nor any other Person acting on its behalf has provided any of the Buyers or their agents or
counsel with any information that constitutes or could reasonably be expected to constitute material, non-public information
concerning the Company or any of its Subsidiaries, other than the existence of the transactions contemplated by this Agreement and
the other Transaction Documents. The Company understands and confirms that each of the Buyers will rely on the foregoing
representations in effecting transactions in securities of the Company. All disclosure provided to the Buyers regarding the Company
and its Subsidiaries, their businesses and the transactions contemplated hereby, including the schedules to this Agreement,
furnished by or on behalf of the Company or any of its Subsidiaries is true and correct and does not contain any untrue statement of
a material fact or omit to state any material fact necessary in order to make the statements made therein, in the light of the
circumstances under which they were made, not misleading. All of the written information furnished after the date hereof by or on
behalf of the Company or any of its Subsidiaries to each Buyer pursuant to or in connection with this Agreement and the other
Transaction Documents, taken as a whole, will be true and correct in all material respects as of the date on which such information
is so provided and will not contain any untrue statement of a material fact or omit to state any material fact necessary in order to
make the statements made therein, in the light of the circumstances under which they were made, not misleading. Each press release
issued by the Company or any of its Subsidiaries during the twelve (12) months preceding the date of this Agreement did not at the
time of release contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or
necessary in order to make the statements therein, in the light of the circumstances under which they are made, not misleading. No
event or circumstance has occurred or information exists with respect to the Company or any of its Subsidiaries or its or their
business, properties, liabilities, prospects, operations (including results thereof) or conditions (financial or otherwise), which,
under applicable law, rule or regulation, requires public disclosure at or before the date hereof or announcement by the Company but
which has not been so publicly disclosed. All financial projections and forecasts that have been prepared by or on behalf of the
Company or any of its Subsidiaries and made available to you have been prepared in good faith based upon reasonable assumptions and
represented, at the time each such financial projection or forecast was delivered to each Buyer, the Company’s best estimate
of future financial performance (it being recognized that such financial projections or forecasts are not to be viewed as facts and
that the actual results during the period or periods covered by any such financial projections or forecasts may differ from the
projected or forecasted results). The Company acknowledges and agrees that no Buyer makes or has made any representations or
warranties with respect to the transactions contemplated hereby other than those specifically set forth in Section 2.

 

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4.            
COVENANTS.

 

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

 

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

 

(c)               Reporting
Status. Until the date on which the Buyers shall have sold all of the Securities (the “Reporting Period”),
the Company shall timely file all reports required to be filed with the SEC pursuant to the 1934 Act, and the Company shall not
terminate its status as an issuer required to file reports under the 1934 Act even if the 1934 Act or the rules and regulations
thereunder would no longer require or otherwise permit such termination. From the time Form S-3 is available to the Company for the
registration of the Registrable Securities, the Company shall take all actions necessary to maintain its eligibility to register the
Registrable Securities for resale by the Buyers on Form S-3.

 

    29

     

    

 

(d)              
Use of Proceeds. The Company will use the proceeds from the sale of the Securities for expenses and professional fees related
to the acquisition of Biorenewable Technologies, Inc., a Delaware corporation, and Harp Electric Eng. Ltd., a limited company incorporated
under the laws of Ireland (collectively “Harp”) and general corporate purposes, but not, directly or indirectly, for
(i) except as set forth on Schedule 4(d), the satisfaction of any indebtedness of the Company or any of its Subsidiaries, (ii) the redemption
or repurchase of any securities of the Company or any of its Subsidiaries, or (iii) the settlement of any outstanding litigation.

 

(e)              
Financial Information. The Company agrees to send the following to each Investor (as defined in the Registration Rights
Agreement) during the Reporting Period (i) unless the following are filed with the SEC through EDGAR and are available to the public through
the EDGAR system, within one (1) Business Day after the filing thereof with the SEC, a copy of its Annual Reports on Form 10-K and Quarterly
Reports on Form 10-Q, any interim reports or any consolidated balance sheets, income statements, stockholders’ equity statements
and/or cash flow statements for any period other than annual, any Current Reports on Form 8-K and any registration statements (other than
on Form S-8) or amendments filed pursuant to the 1933 Act, (ii) unless the following are either filed with the SEC through EDGAR or are
otherwise widely disseminated via a recognized news release service (such as PR Newswire), on the same day as the release thereof, e-mail
copies of all press releases issued by the Company or any of its Subsidiaries and (iii) unless the following are filed with the SEC through
EDGAR, copies of any notices and other information made available or given to the stockholders of the Company generally, contemporaneously
with the making available or giving thereof to the stockholders.

 

(f)                Listing.
The Company shall promptly secure the listing or designation for quotation (as the case may be) of all of the Underlying Securities
(as defined below) upon each national securities exchange and automated quotation system, if any, upon which the Common Stock is
then listed or designated for quotation (as the case may be) (subject to official notice of issuance) and shall maintain such
listing or designation for quotation (as the case may be) of all Underlying Securities from time to time issuable under the terms of
the Transaction Documents on such national securities exchange or automated quotation system. The Company shall maintain the Common
Stock’s listing or authorization for quotation (as the case may be) on an Eligible Market (as defined below).
 “Eligible Market” means either (x) the OTC Pink (except, after the date hereof, if the Common Stock of the
Company becomes listed on any Secondary Market (as defined below) or Primary Market (as defined below), thereafter, the OTC Pink
shall not be an Eligible Market), (y) the OTCQB or the OTCQX (each, a “Secondary Market”) (except, after the date
hereof, if the Common Stock of the Company becomes listed on any Primary Market (as defined below), thereafter, no Secondary Market
shall be an Eligible Market) or (z) The New York Stock Exchange, the NYSE American, the Nasdaq Capital Market, the Nasdaq Global
Market or the Nasdaq Global Select Market (each, a “Primary Market”). Neither the Company nor any of its
Subsidiaries shall take any action which could be reasonably expected to result in the delisting or suspension of the Common Stock
on an Eligible Market. The Company shall pay all fees and expenses in connection with satisfying its obligations under this Section
4(f). “Underlying Securities” means (A) the Registrable Securities, (B) the Exchange Conversion Shares, (C) the
Exchange Warrant Common Shares and (D) any capital stock of the Company issued or issuable with respect to the Exchange Conversion
Shares, the Exchange Warrant Common Shares, including, without limitation, (1) as a result of any stock split, stock dividend,
recapitalization, exchange or similar event or otherwise and (2) shares of capital stock of the Company into which the shares of
Common Stock are converted or exchanged and shares of capital stock of a Successor Entity (as defined in the Common Warrants) into
which the shares of Common Stock are converted or exchanged, in each case, without regard to any limitations on conversion of the
Exchange Preferred Shares or exercise of the Exchange Common Warrants.

 

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(g)              
Fees. The Company shall reimburse the lead Buyer a non-accountable amount of $250,000 for all costs and expenses incurred
by it or its affiliates in connection with the structuring, documentation, negotiation and closing of the transactions contemplated by
the Transaction Documents (including, without limitation, as applicable, all reasonable legal fees of outside counsel and disbursements
of Kelley Drye & Warren LLP, counsel to the lead Buyer, any other reasonable fees and expenses in connection with the structuring,
documentation, negotiation and closing of the transactions contemplated by the Transaction Documents and due diligence and regulatory
filings in connection therewith) (the “Transaction Expenses”) and shall be withheld by the lead Buyer from its Purchase
Price at the Closing; provided, that the Company shall promptly reimburse Kelley Drye & Warren LLP on demand for all Transaction Expenses
not so reimbursed through such withholding at the Closing. The Company shall be responsible for the payment of any placement agent’s
fees, financial advisory fees, transfer agent fees, DTC (as defined below) fees or broker’s commissions (other than for Persons
engaged by any Buyer) relating to or arising out of the transactions contemplated hereby (including, without limitation, any fees or commissions
payable to the Placement Agent, who is the Company’s sole placement agent in connection with the transactions contemplated by this
Agreement). The Company shall pay, and hold each Buyer harmless against, any liability, loss or expense (including, without limitation,
reasonable attorneys’ fees and out-of-pocket expenses) arising in connection with any claim relating to any such payment. Except
as otherwise set forth in the Transaction Documents, each party to this Agreement shall bear its own expenses in connection with the sale
of the Securities to the Buyers.

 

(h)              
Pledge of Securities. Notwithstanding anything to the contrary contained in this Agreement, the Company acknowledges and
agrees that the Securities may be pledged by an Investor in connection with a bona fide margin agreement or other loan or financing arrangement
that is secured by the Securities. The pledge of Securities shall not be deemed to be a transfer, sale or assignment of the Securities
hereunder, and no Investor effecting a pledge of Securities shall be required to provide the Company with any notice thereof or otherwise
make any delivery to the Company pursuant to this Agreement or any other Transaction Document, including, without limitation, Section
2(g) hereof; provided that an Investor and its pledgee shall be required to comply with the provisions of Section 2(g) hereof in
order to effect a sale, transfer or assignment of Securities to such pledgee. The Company hereby agrees to execute and deliver such documentation
as a pledgee of the Securities may reasonably request in connection with a pledge of the Securities to such pledgee by a Buyer.

 

(i)                
Disclosure of Transactions and Other Material Information.

 

(i)                 Disclosure
of Transaction. The Company shall, on or before 9:00 a.m., New York time, on the date of this Agreement, issue a press
release (the “Press Release”) reasonably acceptable to the Buyers disclosing all the material terms of the
transactions contemplated by the Transaction Documents. On or before 9:00 a.m., New York time, on the date of this Agreement, the
Company shall file a Current Report on Form 8-K describing all the material terms of the transactions contemplated by the
Transaction Documents in the form required by the 1934 Act and attaching all the material Transaction Documents (including, without
limitation, this Agreement, the form of Preferred Shares, the form of the Preferred Warrants, the form of the Common Warrants, the
form of Certificates of Designations and the form of the Registration Rights Agreement) (including all attachments, the
 “8-K Filing”). From and after the filing of the 8-K Filing, the Company shall have disclosed all material,
non-public information (if any) provided to any of the Buyers by the Company or any of its Subsidiaries or any of their respective
officers, directors, employees or agents in connection with the transactions contemplated by the Transaction Documents. In addition,
effective upon the filing of the 8-K Filing, the Company acknowledges and agrees that any and all confidentiality or similar
obligations under any agreement, whether written or oral, between the Company, any of its Subsidiaries or any of their respective
officers, directors, affiliates, employees or agents, on the one hand, and any of the Buyers or any of their affiliates, on the
other hand, shall terminate.

 

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(ii)              Limitations
on Disclosure. The Company shall not, and the Company shall cause each of its Subsidiaries and each of its and their respective
officers, directors, employees and agents not to, provide any Buyer with any material, non-public information regarding the Company
or any of its Subsidiaries from and after the date hereof without the express prior written consent of such Buyer (which may be
granted or withheld in such Buyer’s sole discretion). In the event of a breach of any of the foregoing covenants, or any of
the covenants or agreements contained in any other Transaction Document, by the Company, any of its Subsidiaries, or any of its or
their respective officers, directors, employees and agents (as determined in the reasonable good faith judgment of such Buyer), in
addition to any other remedy provided herein or in the Transaction Documents, such Buyer shall have the right to make a public
disclosure, in the form of a press release, public advertisement or otherwise, of such breach or such material, non-public
information, as applicable, without the prior approval by the Company, any of its Subsidiaries, or any of its or their respective
officers, directors, employees or agents. No Buyer shall have any liability to the Company, any of its Subsidiaries, or any of its
or their respective officers, directors, employees, affiliates, stockholders or agents, for any such disclosure. To the extent that
the Company delivers any material, non-public information to a Buyer without such Buyer’s consent, the Company hereby
covenants and agrees that such Buyer shall not have any duty of confidentiality with respect to, or a duty not to trade on the basis
of, such material, non-public information. Subject to the foregoing, neither the Company, its Subsidiaries nor any Buyer shall issue
any press releases or any other public statements with respect to the transactions contemplated hereby; provided, however, the
Company shall be entitled, without the prior approval of any Buyer, to make the Press Release and any press release or other public
disclosure with respect to such transactions (i) in substantial conformity with the 8-K Filing and contemporaneously therewith and
(ii) as is required by applicable law and regulations (provided that in the case of clause (i) each Buyer shall be consulted by the
Company in connection with any such press release or other public disclosure prior to its release). Without the prior written
consent of the applicable Buyer (which may be granted or withheld in such Buyer’s sole discretion), the Company shall not (and
shall cause each of its Subsidiaries and affiliates to not) disclose the name of such Buyer in any filing, announcement, release or
otherwise. Notwithstanding anything contained in this Agreement to the contrary and without implication that the contrary would
otherwise be true, the Company expressly acknowledges and agrees that no Buyer shall have (unless expressly agreed to by a
particular Buyer after the date hereof in a written definitive and binding agreement executed by the Company and such particular
Buyer (it being understood and agreed that no Buyer may bind any other Buyer with respect thereto)), any duty of confidentiality
with respect to, or a duty not to trade on the basis of, any material, non-public information regarding the Company or any of its
Subsidiaries.

 

(iii)            Other
Confidential Information. Disclosure Failures; Disclosure Delay Payments. In addition to other remedies set forth in this
Section 4(i), and without limiting anything set forth in any other Transaction Document, at any time after the Closing Date if the
Company, any of its Subsidiaries, or any of their respective officers, directors, employees or agents, provides any Buyer with
material non-public information relating to the Company or any of its Subsidiaries (each, the “Confidential
Information”), the Company shall, on or prior to the applicable Required Disclosure Date (as defined below), publicly
disclose such Confidential Information on a Current Report on Form 8-K or otherwise (each, a “Disclosure”). From
and after such Disclosure, the Company shall have disclosed all Confidential Information provided to such Buyer by the Company or
any of its Subsidiaries or any of their respective officers, directors, employees or agents in connection with the transactions
contemplated by the Transaction Documents. In addition, effective upon such Disclosure, the Company acknowledges and agrees that any
and all confidentiality or similar obligations under any agreement, whether written or oral, between the Company, any of its
Subsidiaries or any of their respective officers, directors, affiliates, employees or agents, on the one hand, and any of the Buyers
or any of their affiliates, on the other hand, shall terminate. In the event that the Company fails to effect such Disclosure on or
prior to the Required Disclosure Date and such Buyer shall have possessed Confidential Information for at least ten (10) consecutive
Trading Days (each, a “Disclosure Failure”), then, as partial relief for the damages to such Buyer by reason of
any such delay in, or reduction of, its ability to buy or sell shares of Common Stock after such Required Disclosure Date (which
remedy shall not be exclusive of any other remedies available at law or in equity), the Company shall pay to such Buyer an amount in
cash equal to the greater of (I) two percent (2%) of the aggregate Purchase Price and (II) the applicable Disclosure Restitution
Amount, on each of the following dates (each, a “Disclosure Delay Payment Date”): (i) on the date of such
Disclosure Failure and (ii) on every thirty (30) day anniversary such Disclosure Failure until the earlier of (x) the date such
Disclosure Failure is cured and (y) such time as all such non-public information provided to such Buyer shall cease to be
Confidential Information (as evidenced by a certificate, duly executed by an authorized officer of the Company to the foregoing
effect) (such earlier date, as applicable, a “Disclosure Cure Date”). Following the initial Disclosure Delay
Payment for any particular Disclosure Failure, without limiting the foregoing, if a Disclosure Cure Date occurs prior to any thirty
(30) day anniversary of such Disclosure Failure, then such Disclosure Delay Payment (prorated for such partial month) shall be made
on the second (2nd) Business Day after such Disclosure Cure Date. The payments to which an Investor shall be entitled pursuant to
this Section 4(l)(iii) are referred to herein as “Disclosure Delay Payments.” In the event the Company fails to
make Disclosure Delay Payments in a timely manner in accordance with the foregoing, such Disclosure Delay Payments shall bear
interest at the rate of two percent (2%) per month (prorated for partial months) until paid in full.

 

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(iv)            
For the purpose of this Agreement the following definitions shall apply:

 

(1)              
 “Disclosure Failure Market Price” means, as of any Disclosure Delay Payment Date, the price computed as the
quotient of (I) the sum of the five (5) highest VWAPs (as defined in the Common Warrants) of the Common Stock during the applicable Disclosure
Restitution Period (as defined below), divided by (II) five (5) (such period, the “Disclosure Failure Measuring Period”).
All such determinations to be appropriately adjusted for any share dividend, share split, share combination, reclassification or similar
transaction that proportionately decreases or increases the Common Stock during such Disclosure Failure Measuring Period.

 

(2)              
“Disclosure Restitution Amount” means, as of any Disclosure Delay Payment Date, the product of (x) difference
of (I) the Disclosure Failure Market Price less (II) the lowest purchase price, per share of Common Stock, of any Common Stock issued
or issuable to such Buyer pursuant to this Agreement or any other Transaction Documents, multiplied by (y) 10% of the aggregate daily
dollar trading volume (as reported on Bloomberg (as defined in the Common Warrants)) of the Common Stock on the Principal Market for each
Trading Day (as defined in the Common Warrants) either (1) with respect to the initial Disclosure Delay Payment Date, during the period
commencing on the applicable Required Disclosure Date through and including the Trading Day immediately prior to the initial Disclosure
Delay Payment Date or (2) with respect to each other Disclosure Delay Payment Date, during the period commencing the immediately preceding
Disclosure Delay Payment Date through and including the Trading Day immediately prior to such applicable Disclosure Delay Payment Date
(such applicable period, the “Disclosure Restitution Period”).

 

(3)              
“Required Disclosure Date” means (x) if such Buyer authorized the delivery of such Confidential Information,
either (I) if the Company and such Buyer have mutually agreed upon a date (as evidenced by an e-mail or other writing) of Disclosure of
such Confidential Information, such agreed upon date or (II) otherwise, the seventh (7th) calendar day after the date such
Buyer first received any Confidential Information or (y) if such Buyer did not authorize the delivery of such Confidential Information,
the first (1st) Business Day after such Buyer’s receipt of such Confidential Information.

 

(j)                 Additional
Registration Statements. Until the Applicable Date (as defined below) and at any time thereafter while any Registration
Statement is not effective or the prospectus contained therein is not available for use or any Current Public Information Failure
(as defined in the Registration Rights Agreement) exists, the Company shall not file a registration statement or an offering
statement under the 1933 Act relating to securities that are not the Registrable Securities (other than a registration statement on
Form S-8 or such supplements or amendments to registration statements that are outstanding and have been declared effective by the
SEC as of the date hereof (solely to the extent necessary to keep such registration statements effective and available and not with
respect to any Subsequent Placement)). “Applicable Date” means the earlier of (x) the first date on which the
resale by the Buyers of all the Registrable Securities required to be filed on the initial Registration Statement (as defined in the
Registration Rights Agreement) pursuant to the Registration Rights Agreement is declared effective by the SEC (and each prospectus
contained therein is available for use on such date) or (y) the first date on which all of the Registrable Securities are eligible
to be resold by the Buyers pursuant to Rule 144 (or, if a Current Public Information Failure has occurred and is continuing, such
later date after which the Company has cured such Current Public Information Failure).

 

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(k)               Additional
Issuance of Securities. So long as any Buyer beneficially owns any Securities, the Company will not, without the prior written
consent of the Required Holders, issue any Preferred Shares (other than to the Buyers as contemplated hereby) and the Company shall
not issue any other securities that would cause a breach or default under the Convertible Preferred Certificate of Designations or
the Common Warrants. The Company agrees that for the period commencing on the date hereof and ending on the date immediately
following the 90th Trading Day after the Applicable Date (provided that such period shall be extended by the number of
calendar days during such period and any extension thereof contemplated by this proviso on which any Registration Statement is not
effective or any prospectus contained therein is not available for use or any Current Public Information Failure exists) (the
 “Restricted Period”), neither the Company nor any of its Subsidiaries shall directly or indirectly issue, offer,
sell, grant any option or right to purchase, or otherwise dispose of (or announce any issuance, offer, sale, grant of any option or
right to purchase or other disposition of) any equity security or any equity-linked or related security (including, without
limitation, any “equity security” (as that term is defined under Rule 405 promulgated under the 1933 Act), any
Convertible Securities (as defined below), any debt, any preferred stock or any purchase rights) (any such issuance, offer, sale,
grant, disposition or announcement (whether occurring during the Restricted Period or at any time thereafter) is referred to as a
 “Subsequent Placement”). Notwithstanding the foregoing, this Section 4(k) shall not apply in respect of the
issuance of (i) shares of Common Stock, preferred stock, or standard options to purchase Common Stock to directors, officers or
employees of the Company for services rendered in their capacity as such pursuant to an Approved Stock Plan (as defined below),
provided that (1) all such issuances (taking into account the shares of Common Stock issuable upon exercise of such options) after
the date hereof pursuant to this clause (i) do not, in the aggregate, exceed more than 5% of the Common Stock issued and outstanding
immediately after time of consummation of the Harp Transaction (as defined in the Convertible Preferred Certificate of Designations)
(or, if the Harp Transaction is never consummated, 350% of the Common Stock outstanding as of the date hereof) and (2) the exercise
price of any such options is not lowered, none of such options are amended to increase the number of shares issuable thereunder and
none of the terms or conditions of any such options are otherwise materially changed in any manner that adversely affects any of the
Buyers; (ii) shares of Common Stock issued upon the conversion or exercise of Convertible Securities (other than standard options to
purchase Common Stock issued pursuant to an Approved Stock Plan that are covered by clause (i) above) issued prior to the date
hereof, provided that the conversion, exercise or other method of issuance (as the case may be) of any such Convertible Security is
made solely pursuant to the conversion, exercise or other method of issuance (as the case may be) provisions of such Convertible
Security that were in effect on the date immediately prior to the date of this Agreement, the conversion, exercise or issuance price
of any such Convertible Securities (other than standard options to purchase Common Stock issued pursuant to an Approved Stock Plan
that are covered by clause (i) above) is not lowered, none of such Convertible Securities (other than standard options to purchase
Common Stock issued pursuant to an Approved Stock Plan that are covered by clause (i) above) are amended to increase the number of
shares issuable thereunder and none of the terms or conditions of any such Convertible Securities (other than standard options to
purchase Common Stock issued pursuant to an Approved Stock Plan that are covered by clause (i) above) are otherwise materially
changed in any manner that adversely affects any of the Buyers; (iii) the Conversion Shares; provided, that the terms of the
Convertible Preferred Certificate of Designations are not amended, modified or changed on or after the hereof, (iv) the Warrant
Preferred Shares; provided, that the terms of the Preferred Warrant are not amended, modified or changed on or after the Closing
Date, (v) the Warrant Common Shares; provided, that the terms of the Common Warrants are not amended, modified or changed on or
after the Closing Date, (vi) up to $150,000 of shares of Common Stock (priced at the no less than the Closing Bid Price (as defined
in the Convertible Preferred Certificate of Designations) of the Common Stock) and issued to bona fide vendors and service
providers, for services rendered and not for capital raising purposes, in lieu of cash payments at market rates, (vii) shares of
Common Stock issuable pursuant to a Permitted ATM provided that (x) the minimum price at which the Company may sell any shares of
Common Stock in any Permitted ATM shall be $0.60 per share (as adjusted for stock splits, stock dividends, stock combinations,
recapitalizations and similar events), (y) the aggregate amount of shares of Common Stock sold pursuant to any Permitted ATM shall
not exceed $10,000,000 in the aggregate and (y) at least thirty-three (33%) of the proceeds of each any every draw down pursuant to
any Permitted ATM is used to pay down the Permitted Senior Indebtedness (as defined in the Convertible Preferred Certificate of
Designations) (each of the foregoing in clauses (i) through (vii), collectively the “Excluded Securities”).
 “Approved Stock Plan” means any employee benefit plan which has been approved by the board of directors of the
Company prior to or subsequent to the date hereof pursuant to which shares of Common Stock and standard options to purchase Common
Stock may be issued to any employee, officer or director for services provided to the Company in their capacity as such.

 

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(l)                 Reservation
of Shares. So long as any of the Preferred Shares, Preferred Warrants or Common Warrants remain outstanding, the Company shall
take all action necessary to at all times have authorized, and reserved for the purpose of issuance, no less than (i) the maximum
number of Warrant Preferred Shares initially issuable upon exercise of the Preferred Warrants (without taking into account any
limitations on the exercise of the Preferred Warrants set forth therein) and (ii) (x) if prior to the Stockholder Approval Date (as
defined below) (or, if earlier, the date the Company obtains the Stockholder Approval (as defined below)), 2,141,667 shares of
Common Stock for issuances of Conversion Shares pursuant to the Preferred Shares or (y) on or after the Stockholder Approval Date,
the sum of (A) 250% of the maximum number of Conversion Shares issuable upon conversion of all the Preferred Shares then outstanding
or issuable upon exercise of the Preferred Warrants (assuming for purposes hereof that (I) the Preferred Warrants have been
exercised in full, (II) the Preferred Shares are convertible at the Alternate Conversion Price (as defined in the Convertible
Preferred Certificate of Designations) then in effect, and (III) any such conversion shall not take into account any limitations on
the conversion of the Preferred Shares set forth in the Convertible Preferred Certificate of Designations), (B) 100% the maximum
number of Warrant Common Shares issuable upon exercise of all the Common Warrants then outstanding (without regard to any
limitations on the exercise of the Common Warrants set forth therein) and (C) the maximum number of Warrant Preferred Shares
initially issuable upon exercise of the Preferred Warrants (without taking into account any limitations on the exercise of the
Preferred Warrants set forth therein) (collectively, the “Required Reserve Amount”); provided that at no time
shall the number of shares of Common Stock reserved pursuant to this Section 4(l) be reduced other than proportionally in connection
with any conversion, exercise and/or redemption, as applicable of Preferred Shares and Common Warrants. If at any time the number of
shares of Common Stock authorized and reserved for issuance is not sufficient to meet the Required Reserve Amount, the Company will
promptly take all corporate action necessary to authorize and reserve a sufficient number of shares, including, without limitation,
calling a special meeting of stockholders to authorize additional shares to meet the Company’s obligations pursuant to the
Transaction Documents, in the case of an insufficient number of authorized shares, obtain stockholder approval of an increase in
such authorized number of shares, and voting the management shares of the Company in favor of an increase in the authorized shares
of the Company to ensure that the number of authorized shares is sufficient to meet the Required Reserve Amount.

 

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(m)            
Conduct of Business. The business of the Company and its Subsidiaries shall not be conducted in violation of any law, ordinance
or regulation of any Governmental Entity, except where such violations would not reasonably be expected to result, either individually
or in the aggregate, in a Material Adverse Effect.

 

(n)               Other
Preferred Shares; Variable Securities. So long as any Preferred Shares remain outstanding, the Company and each Subsidiary shall
be prohibited from effecting or entering into an agreement to effect any Subsequent Placement involving a Variable Rate Transaction.
 “Variable Rate Transaction” means a transaction in which the Company or any Subsidiary (i) issues or sells any
Convertible Securities either (A) at a conversion, exercise or exchange rate or other price that is based upon and/or varies with
the trading prices of or quotations for the shares of Common Stock at any time after the initial issuance of such Convertible
Securities, or (B) with a conversion, exercise or exchange price that is subject to being reset at some future date after the
initial issuance of such Convertible Securities or upon the occurrence of specified or contingent events directly or indirectly
related to the business of the Company or the market for the Common Stock, other than pursuant to a customary “weighted
average” anti-dilution provision or (ii) enters into any agreement (including, without limitation, an equity line of credit or
an “at-the-market” offering (other than a Permitted ATM (as defined below))) whereby the Company or any Subsidiary may
sell securities at a future determined price (other than standard and customary “preemptive” or
 “participation” rights). Each Buyer shall be entitled to obtain injunctive relief against the Company and its
Subsidiaries to preclude any such issuance, which remedy shall be in addition to any right to collect damages. Notwithstanding
anything to the contrary contained in this Section 4(n) the Company shall specifically be permitted to enter into an at-the-market
equity facility (the “Permitted ATM”) whereby the Company may sell shares of its common stock from time to time
provided (A) the minimum price at which the Company may sell any Common Shares in $0.60 per share and (B) the aggregate amount of
the ATM Offering does not exceed $10,000,000 and (C) at least thirty-three (33%) of the proceeds of each any every draw down
pursuant to any Permitted ATM is used to pay down the Permitted Senior Indebtedness (as defined in the Convertible Preferred
Certificate of Designations).

 

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(o)              
Dilutive Issuances. For so long as any Preferred Shares, Preferred Warrants or Common Warrants remain outstanding, the Company
shall not, in any manner, enter into or affect any Dilutive Issuance (as defined in the Convertible Preferred Certificate of Designations)
if the effect of such Dilutive Issuance is to cause the Company to be required to issue upon conversion of any Preferred Shares or exercise
of any Common Warrant any shares of Common Stock in excess of that number of shares of Common Stock which the Company may issue upon conversion
of the Preferred Shares and exercise of the Common Warrants without breaching the Company’s obligations under the rules or regulations
of the Principal Market.

 

(p)              
Stockholder Approval. The Company shall either (x) if the Company shall have obtained the prior written consent of the requisite
stockholders (the “Stockholder Consent”) to obtain the Stockholder Approval (as defined below), inform the stockholders
of the Company of the receipt of the Stockholder Consent by preparing and filing with the SEC, as promptly as practicable after the date
hereof, but prior to the fifteenth (15th) calendar day after the Closing Date (or, if such filing is delayed by a court or regulatory
agency, in no event later than the forty-fifth (45th) calendar day after the Closing), an information statement with respect thereto or
(y) provide each stockholder entitled to vote at a special meeting of stockholders of the Company (the “Stockholder Meeting”),
which shall be promptly called and held not later than the sixtieth (60th) calendar day after the Closing Date (or, if such filing is
delayed by a court or regulatory agency, in no event later than 90 calendar days after the Closing) (the “Stockholder Meeting
Deadline”), a proxy statement, in each case, in a form reasonably acceptable to the Buyers and Kelley Drye & Warren LLP,
at the expense of the Company, with the Company obligated to reimburse the expenses of Kelley Drye & Warren LLP incurred in connection
therewith in an amount not exceed $5,000. The proxy statement, if any, shall solicit each of the Company’s stockholder’s affirmative
vote at the Stockholder Meeting for approval of resolutions (“Stockholder Resolutions”) providing for the approval
of an increase the number of its authorized Common Shares to not less than 500,000,000 Common Shares (such affirmative approval being
referred to herein as the “Stockholder Approval”, and the date such Stockholder Approval is obtained, the “Stockholder
Approval Date”), and the Company shall use its reasonable best efforts to solicit its stockholders’ approval of such resolutions
and to cause the Board of Directors of the Company to recommend to the stockholders that they approve such resolutions. The Company shall
be obligated to seek to obtain the Stockholder Approval by the Stockholder Meeting Deadline. If, despite the Company’s reasonable
best efforts the Stockholder Approval is not obtained on or prior to the Stockholder Meeting Deadline, the Company shall cause an additional
Stockholder Meeting to be held on or prior to the earliest reasonable practical date following the failure to obtain Stockholder Approval.
If, despite the Company’s reasonable best efforts the Stockholder Approval is not obtained after such subsequent stockholder meetings,
the Company shall cause an additional Stockholder Meeting to be held semi-annually thereafter until such Stockholder Approval is obtained.

 

(q)               Passive
Foreign Investment Company. The Company shall conduct its business, and shall cause its Subsidiaries to conduct their respective
businesses, in such a manner as will ensure that the Company will not be deemed to constitute a passive foreign investment company
within the meaning of Section 1297 of the Code.

 

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(r)               
Restriction on Redemption and Cash Dividends. So long as any Preferred Shares are outstanding, the Company shall not, directly
or indirectly, redeem, or declare or pay any cash dividend or distribution on, any securities of the Company (other than as required by
the Convertible Preferred Certificate of Designations).

 

(s)               
Corporate Existence. So long as any Buyer beneficially owns any Preferred Shares, Preferred Warrants or Common Warrants,
the Company shall not be party to any Fundamental Transaction (as defined in the Convertible Preferred Certificate of Designations) unless
the Company is in compliance with the applicable provisions governing Fundamental Transactions set forth in the Convertible Preferred
Certificate of Designations and the Common Warrants.

 

(t)                
Stock Splits. Until the Preferred Shares and all preferred shares issued pursuant to the Convertible Preferred Certificate
of Designations are no longer outstanding, the Company shall not effect any stock combination, reverse stock split or other similar transaction
(or make any public announcement or disclosure with respect to any of the foregoing) without the prior written consent of the Required
Holders (as defined below).

 

(u)              
Conversion and Exercise Procedures. Each of the form of Exercise Notice (as defined in the Common Warrants) included in
the Common Warrants, the form of Exercise Notice (as defined in the Preferred Warrants) included in the Preferred Warrants and the form
of Conversion Notice (as defined in the Convertible Preferred Certificate of Designations) included in the Convertible Preferred Certificate
of Designations set forth the totality of the procedures required of the Buyers in order to exercise the Preferred Warrants or the Common
Warrants or convert the Preferred Shares. Except as provided in Section 5(d), no additional legal opinion, other information or instructions
shall be required of the Buyers to exercise their Preferred Warrants or Common Warrants or convert their Preferred Shares. The Company
shall honor exercises of the Preferred Warrants and Common Warrants and conversions of the Preferred Shares and shall deliver the Conversion
Shares, Warrant Preferred Shares and Warrant Common Shares in accordance with the terms, conditions and time periods set forth in the
Convertible Preferred Certificate of Designations, Preferred Warrants and Common Warrants, respectively.

 

(v)              
Regulation M. The Company will not take any action prohibited by Regulation M under the 1934 Act, in connection with the
distribution of the Securities contemplated hereby.

 

(w)            
General Solicitation. None of the Company, any of its affiliates (as defined in Rule 501(b) under the 1933 Act) or any
person acting on behalf of the Company or such affiliate will solicit any offer to buy or offer or sell the Securities by means of any
form of general solicitation or general advertising within the meaning of Regulation D, including: (i) any advertisement, article,
notice or other communication published in any newspaper, magazine or similar medium or broadcast over television or radio; and (ii) any
seminar or meeting whose attendees have been invited by any general solicitation or general advertising.

 

(x)               Integration.
None of the Company, any of its affiliates (as defined in Rule 501(b) under the 1933 Act), or any person acting on behalf of the
Company or such affiliate will sell, offer for sale, or solicit offers to buy or otherwise negotiate in respect of any security (as
defined in the 1933 Act) which will be integrated with the sale of the Securities in a manner which would require the registration
of the Securities under the 1933 Act or require stockholder approval under the rules and regulations of the Principal Market and the
Company will take all action that is appropriate or necessary to assure that its offerings of other securities will not be
integrated for purposes of the 1933 Act or the rules and regulations of the Principal Market, with the issuance of Securities
contemplated hereby.

 

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(y)              
Notice of Disqualification Events. The Company will notify the Buyers in writing, prior to the Closing Date of (i) any
Disqualification Event relating to any Issuer Covered Person and (ii) any event that would, with the passage of time, become a Disqualification
Event relating to any Issuer Covered Person.

 

(z)              
Closing Documents. On or prior to fourteen (14) calendar days after the Closing Date, the Company agrees to deliver, or
cause to be delivered, to each Buyer and Kelley Drye & Warren LLP a complete closing set of the executed Transaction Documents, Securities
and any other document required to be delivered to any party pursuant to Section 7 hereof or otherwise.

 

5.            
REGISTER; TRANSFER AGENT INSTRUCTIONS; LEGEND.

 

(a)              
Register. The Company shall maintain at its principal executive offices (or such other office or agency of the Company as
it may designate by notice to each holder of Securities), a register for the Preferred Shares, Preferred Warrants and the Common Warrants
in which the Company shall record the name and address of the Person in whose name the Preferred Shares, Preferred Warrants and the Common
Warrants have been issued (including the name and address of each transferee), the aggregate number of the Preferred Shares held by such
Person, the number of Conversion Shares issuable pursuant to the terms of the Preferred Shares, the aggregate number of Warrant Preferred
Shares issuable upon exercise of the Preferred Warrants held by such Person and the aggregate number of Warrant Common Shares issuable
upon exercise of the Common Warrants held by such Person. The Company shall keep the register open and available at all times during business
hours for inspection of any Buyer or its legal representatives.

 

(b)               Transfer
Agent Instructions. The Company shall issue irrevocable instructions to its transfer agent and any subsequent transfer agent (as
applicable, the “Transfer Agent”) in a form acceptable to each of the Buyers (the “Irrevocable Transfer
Agent Instructions”) to issue certificates or credit shares to the applicable balance accounts at The Depository Trust
Company (“DTC”), registered in the name of each Buyer or its respective nominee(s), for the Conversion Shares and
the Warrant Common Shares in such amounts as specified from time to time by each Buyer to the Company upon conversion of the
Preferred Shares or the exercise of the Common Warrants (as the case may be). The Company represents and warrants that no
instruction other than the Irrevocable Transfer Agent Instructions referred to in this Section 5(b), and stop transfer
instructions to give effect to Section 2(g) hereof, will be given by the Company to its transfer agent with respect to the
Securities, and that the Securities shall otherwise be freely transferable on the books and records of the Company, as applicable,
to the extent provided in this Agreement and the other Transaction Documents. If a Buyer effects a sale, assignment or transfer of
the Securities in accordance with Section 2(g), the Company shall permit the transfer and shall promptly instruct its transfer agent
to issue one or more certificates or credit shares to the applicable balance accounts at DTC in such name and in such denominations
as specified by such Buyer to effect such sale, transfer or assignment. In the event that such sale, assignment or transfer involves
Conversion Shares or Warrant Common Shares sold, assigned or transferred pursuant to an effective registration statement or in
compliance with Rule 144, the transfer agent shall issue such shares to such Buyer, assignee or transferee (as the case may be)
without any restrictive legend in accordance with Section 5(d) below. The Company acknowledges that a breach by it of its
obligations hereunder will cause irreparable harm to a Buyer. Accordingly, the Company acknowledges that the remedy at law for a
breach of its obligations under this Section 5(b) will be inadequate and agrees, in the event of a breach or threatened breach
by the Company of the provisions of this Section 5(b), that a Buyer shall be entitled, in addition to all other available
remedies, to an order and/or injunction restraining any breach and requiring immediate issuance and transfer, without the necessity
of showing economic loss and without any bond or other security being required. The Company shall cause its counsel to issue the
legal opinion referred to in the Irrevocable Transfer Agent Instructions to the Company’s transfer agent on each Effective
Date (as defined in the Registration Rights Agreement). Any fees (with respect to the transfer agent, counsel to the Company or
otherwise) associated with the issuance of such opinion or the removal of any legends on any of the Securities shall be borne by the
Company.

 

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

 

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

 

(d)               Removal
of Legends. Certificates evidencing Securities shall not be required to contain the legend set forth in Section 5(c) above
or any other legend (i) while a registration statement (including a Registration Statement) covering the resale of such Securities
is effective under the 1933 Act, (ii) following any sale of such Securities pursuant to Rule 144 (assuming the transferor is not an
affiliate of the Company), (iii) if such Securities are eligible to be sold, assigned or transferred under Rule 144 (provided that a
Buyer provides the Company with reasonable assurances that such Securities are eligible for sale, assignment or transfer under Rule
144 which shall not include an opinion of Buyer’s counsel), (iv) in connection with a sale, assignment or other transfer
(other than under Rule 144), provided that such Buyer provides the Company with an opinion of counsel to such Buyer, in a generally
acceptable form, to the effect that such sale, assignment or transfer of the Securities may be made without registration under the
applicable requirements of the 1933 Act or (v) if such legend is not required under applicable requirements of the 1933 Act
(including, without limitation, controlling judicial interpretations and pronouncements issued by the SEC). If a legend is not
required pursuant to the foregoing, the Company shall no later than two (2) Trading Days (or such earlier date as required pursuant
to the 1934 Act or other applicable law, rule or regulation for the settlement of a trade initiated on the date such Buyer delivers
such legended certificate representing such Securities to the Company) following the delivery by a Buyer to the Company or the
transfer agent (with notice to the Company) of a legended certificate representing such Securities (endorsed or with stock powers
attached, signatures guaranteed, and otherwise in form necessary to affect the reissuance and/or transfer, if applicable), together
with any other deliveries from such Buyer as may be required above in this Section 5(d), as directed by such Buyer, either: (A)
provided that the Company’s transfer agent is participating in the DTC Fast Automated Securities Transfer Program
(“FAST”) and such Securities are Conversion Shares or Warrant Common Shares, credit the aggregate number of
shares of Common Stock to which such Buyer shall be entitled to such Buyer’s or its designee’s balance account with DTC
through its Deposit/Withdrawal at Custodian system or (B) if the Company’s transfer agent is not participating in FAST, issue
and deliver (via reputable overnight courier) to such Buyer, a certificate representing such Securities that is free from all
restrictive and other legends, registered in the name of such Buyer or its designee (the date by which such credit is so required to
be made to the balance account of such Buyer’s or such Buyer’s designee with DTC or such certificate is required to be
delivered to such Buyer pursuant to the foregoing is referred to herein as the “Required Delivery Date”, and the
date such shares of Common Stock are actually delivered without restrictive legend to such Buyer or such Buyer’s designee with
DTC, as applicable, the “Share Delivery Date”). The Company shall be responsible for any transfer agent fees or
DTC fees with respect to any issuance of Securities or the removal of any legends with respect to any Securities in accordance
herewith.

 

    40

     

    

 

(e)               Failure
to Timely Deliver; Buy-In. If the Company fails, for any reason or for no reason, to issue and deliver (or cause to be
delivered) to a Buyer (or its designee) by the Required Delivery Date, either (I) if the Transfer Agent is not participating in
FAST, a certificate for the number of Warrant Preferred Shares, Conversion Shares or Warrant Common Shares (as the case may be) to
which such Buyer is entitled and register such Warrant Preferred Shares, Conversion Shares or Warrant Common Shares (as the case may
be) on the Company’s share register or, if the Transfer Agent is participating in FAST, to credit the balance account of such
Buyer or such Buyer’s designee with DTC for such number of Conversion Shares or Warrant Common Shares (as the case may be)
submitted for legend removal by such Buyer pursuant to Section 5(d) above or (II) if the Registration Statement covering the resale
of the Conversion Shares or Warrant Common Shares (as the case may be) submitted for legend removal by such Buyer pursuant to
Section 5(d) above (the “Unavailable Shares”) is not available for the resale of such Unavailable Shares and the
Company fails to promptly, but in no event later than as required pursuant to the Registration Rights Agreement (x) so notify such
Buyer and (y) deliver the Conversion Shares or Warrant Common Shares, as applicable, electronically without any restrictive legend
by crediting such aggregate number of Conversion Shares or Warrant Common Shares (as the case may be) submitted for legend removal
by such Buyer pursuant to Section 5(d) above to such Buyer’s or its designee’s balance account with DTC through its
Deposit/Withdrawal At Custodian system (the event described in the immediately foregoing clause (II) is hereinafter referred as a
 “Notice Failure” and together with the event described in clause (I) above, a “Delivery
Failure”), then, in addition to all other remedies available to such Buyer, the Company shall pay in cash to such Buyer on
each day after the Share Delivery Date and during such Delivery Failure an amount equal to 2% of the product of (A) the sum of the
number of shares of Common Stock not issued to such Buyer on or prior to the Required Delivery Date and to which such Buyer is
entitled, and (B) any trading price of the Common Stock selected by such Buyer in writing as in effect at any time during the period
beginning on the date of the delivery by such Buyer to the Company of the applicable Conversion Shares or Warrant Common Shares (as
the case may be) and ending on the applicable Share Delivery Date. In addition to the foregoing, if on or prior to the Required
Delivery Date either (I) if the Transfer Agent is not participating in FAST, the Company shall fail to issue and deliver a
certificate to a Buyer and register such shares of Common Stock on the Company’s share register or, if the Transfer Agent is
participating in FAST, credit the balance account of such Buyer or such Buyer’s designee with DTC for the number of shares of
Common Stock to which such Buyer submitted for legend removal by such Buyer pursuant to Section 5(d) above (ii) below or (II) a
Notice Failure occurs, and if on or after such Trading Day such Buyer purchases (in an open market transaction or otherwise) shares
of Common Stock to deliver in satisfaction of a sale by such Buyer of shares of Common Stock submitted for legend removal by such
Buyer pursuant to Section 5(d) above that such Buyer is entitled to receive from the Company (a “Buy-In”), then
the Company shall, within two (2) Trading Days after such Buyer’s request and in such Buyer’s discretion, either (i) pay
cash to such Buyer in an amount equal to such Buyer’s total purchase price (including brokerage commissions and other
out-of-pocket expenses, if any, for the shares of Common Stock so purchased) (the “Buy-In Price”), at which point
the Company’s obligation to so deliver such certificate or credit such Buyer’s balance account shall terminate and such
shares shall be cancelled, or (ii) promptly honor its obligation to so deliver to such Buyer a certificate or certificates or credit
the balance account of such Buyer or such Buyer’s designee with DTC representing such number of shares of Common Stock that
would have been so delivered if the Company timely complied with its obligations hereunder and pay cash to such Buyer in an amount
equal to the excess (if any) of the Buy-In Price over the product of (A) such number of shares of Conversion Shares or Warrant
Common Shares (as the case may be) that the Company was required to deliver to such Buyer by the Required Delivery Date multiplied
by (B) the lowest Closing Sale Price (as defined in the Common Warrants) of the Common Stock on any Trading Day during the period
commencing on the date of the delivery by such Buyer to the Company of the applicable Conversion Shares or Warrant Common Shares (as
the case may be) and ending on the date of such delivery and payment under this clause (ii). Nothing shall limit such Buyer’s
right to pursue any other remedies available to it hereunder, at law or in equity, including, without limitation, a decree of
specific performance and/or injunctive relief with respect to the Company’s failure to timely deliver certificates
representing shares of Common Stock (or to electronically deliver such shares of Common Stock) as required pursuant to the terms
hereof. Notwithstanding anything herein to the contrary, with respect to any given Notice Failure and/or Delivery Failure, this
Section 5(e) shall not apply to the applicable Buyer the extent the Company has already paid such amounts in full to such Buyer with
respect to such Notice Failure and/or Delivery Failure, as applicable, pursuant to the analogous sections of the Convertible
Preferred Certificate of Designations or Common Warrant, as applicable, with respect to the Preferred Shares or Common Warrants, as
applicable, then held by such Buyer.

 

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(f)               
FAST Compliance. While any Common Warrants remain outstanding, the Company shall maintain a transfer agent that participates
in FAST.

 

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

 

The obligation of the Company
hereunder to issue and sell the Initial Series G Preferred Shares, Preferred Warrants and the Common Warrants to each Purchasing Buyer
and to consummate the Exchange at the Closing is subject to the satisfaction, at or before the Closing Date, of each of the following
conditions, provided that these conditions are for the Company’s sole benefit and may be waived by the Company at any time in its
sole discretion by providing each Buyer with prior written notice thereof:

 

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

 

(b)              
Such Purchasing Buyer and each other Purchasing Buyer shall have delivered to the Company the Purchase Price (less, in the case
of any Purchasing Buyer, the amounts withheld pursuant to Section 4(g)) for the Initial Series G Preferred Shares, the Preferred
Warrants and the Common Warrants being purchased by such Purchasing Buyer at the Closing by wire transfer of immediately available funds
in accordance with the Flow of Funds Letter.

 

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

 

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

 

The obligation of each Purchasing
Buyer hereunder to purchase its Initial Series G Preferred Shares, Preferred Warrants and Common Warrants at the Closing and each Exchange
Buyer to consummate the Exchange is subject to the satisfaction, at or before the Closing Date, of each of the following conditions, provided
that these conditions are for each Buyer’s sole benefit and may be waived by such Buyer at any time in its sole discretion by providing
the Company with prior written notice thereof:

 

(a)               The
Company and each Subsidiary (as the case may be) shall have duly executed and delivered to such Buyer each of the Transaction
Documents to which it is a party and the Company shall have duly executed and delivered to (i) such Purchasing Buyer (A) such
aggregate number of Preferred Shares as set forth across from such Purchasing Buyer’s name in column (3) or column (4), as
applicable, of the Schedule of Purchasing Buyers, (B) solely to the extent specified on the Schedule of Purchasing Buyers, Preferred
Warrants to initially acquire up to that aggregate number of Warrant Preferred Shares as is set forth opposite such Purchasing
Buyer’s name in column (5) on the Schedule of Purchasing Buyers, and (C) solely to the extent specified on the Schedule of
Purchasing Buyers, Purchased Common Warrants to initially acquire up to that aggregate number of Purchased Warrant Common Shares as
is set forth opposite such Purchasing Buyer’s name in column (6) or column (7), as applicable, on the Schedule of Purchasing
Buyers, in each case, as being purchased by such Purchasing Buyer at the Closing pursuant to this Agreement and (ii) such Exchange
Buyer (A) if such Original Security consists of an Existing Promissory Note, the aggregate number of Series H Exchange Preferred
Shares as set forth opposite the name of such Original Security in the row under such Exchange Buyer’s name in column (6) of
the Schedule of Exchange Buyers, (B) if such Original Security consists of Series C Preferred Stock, (x) solely to the extent
specified on the Schedule of Exchange Buyers, the aggregate number of Series C-1 Exchange Preferred Shares as set forth opposite the
name of such Original Security in the row under such Exchange Buyer’s name in column (4) of the Schedule of Exchange Buyers,
(y) the aggregate number of Series G Exchange Preferred Shares as set forth opposite the name of such Original Security in the row
under such Exchange Buyer’s name in column (5) of the Schedule of Exchange Buyers, and (z) an Exchange Common Warrant to
initially acquire up to that aggregate number of additional shares of Common Stock as set forth opposite the name of such Original
Security in the row under such Exchange Buyer’s name in column (8) on the Schedule of Exchange Buyers and (C) with respect to
any other Original Security, (x) such aggregate number of Exchange Preferred Shares as is set forth opposite such Exchange
Buyer’s name in column (5), column (6) or column (7), as applicable, of the Schedule of Exchange Buyers and (y) an Exchange
Common Warrant to initially acquire up to that aggregate number of Exchange Common Warrant Shares as it set forth opposite such
Exchange Buyer’s name in column (8) on the Schedule of Exchange Buyers, in each case, duly executed on behalf of the
Company.

 

    42

     

    

 

(b)              
Such Buyer shall have received the opinion of McCarter & English, LLP, the Company’s counsel, dated as of the Closing
Date, in the form acceptable to such Buyer.

 

(c)              
The Company shall have delivered to such Buyer a copy of the Irrevocable Transfer Agent Instructions, in the form acceptable to
such Buyer, which instructions shall have been delivered to and acknowledged in writing by the Company’s transfer agent.

 

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

 

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

 

    43

     

    

 

(f)               
 The Company shall have delivered to such Buyer a certified copy of the Certificate of Incorporation and the Certificates of Designations
as certified by the Delaware Secretary of State within ten (10) days of the Closing Date.

 

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

 

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

 

(i)                
The Company shall have delivered to such Buyer a letter from the Company’s transfer agent certifying the number of shares
of Common Stock outstanding on the Closing Date immediately prior to the Closing.

 

(j)                
The Common Stock (A) shall be designated for quotation or listed (as applicable) on the Principal Market and (B) shall not have
been suspended, as of the Closing Date, by the SEC or the Principal Market from trading on the Principal Market nor shall suspension by
the SEC or the Principal Market have been threatened, as of the Closing Date, either (I) in writing by the SEC or the Principal Market
or (II) by falling below the minimum maintenance requirements of the Principal Market.

 

(k)              
The Company shall have obtained all governmental, regulatory or third party consents and approvals, if any, necessary for the sale
of the Securities, including without limitation, those required by the Principal Market, if any.

 

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

 

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

 

(n)              
Such Buyer shall have received a letter on the letterhead of the Company, duly executed by the Chief Executive Officer of the Company,
setting forth the wire amounts of each Purchasing Buyer and the wire transfer instructions of the Company (the “Flow of Funds
Letter”).

 

    44

     

    

 

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

 

8.            
TERMINATION.

 

In the event that the Closing
shall not have occurred with respect to a Buyer within five (5) days of the date hereof, then such Buyer shall have the right to terminate
its obligations under this Agreement with respect to itself at any time on or after the close of business on such date without liability
of such Buyer to any other party; provided, however, (i) the right to terminate this Agreement under this Section 8 shall not be
available to such Buyer if the failure of the transactions contemplated by this Agreement to have been consummated by such date is the
result of such Buyer’s breach of this Agreement and (ii) the abandonment of the sale and purchase of the Preferred Shares, Preferred
Warrants and the Common Warrants and/or the Exchange, as applicable, shall be applicable only to such Buyer providing such written notice,
provided further that no such termination shall affect any obligation of the Company under this Agreement to reimburse such Buyer for
the expenses described in Section 4(g) above. Nothing contained in this Section 8 shall be deemed to release any party from
any liability for any breach by such party of the terms and provisions of this Agreement or the other Transaction Documents or to impair
the right of any party to compel specific performance by any other party of its obligations under this Agreement or the other Transaction
Documents.

 

9.            
MISCELLANEOUS.

 

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

 

    45

     

    

 

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

 

(c)              
Headings; Gender. The headings of this Agreement are for convenience of reference and shall not form part of, or affect
the interpretation of, this Agreement. Unless the context clearly indicates otherwise, each pronoun herein shall be deemed to include
the masculine, feminine, neuter, singular and plural forms thereof. The terms “including,” “includes,” “include”
and words of like import shall be construed broadly as if followed by the words “without limitation.” The terms “herein,”
 “hereunder,” “hereof” and words of like import refer to this entire Agreement instead of just the provision in
which they are found.

 

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

 

    46

     

    

 

(e)               Entire
Agreement; Amendments. This Agreement, the other Transaction Documents and the schedules and exhibits attached hereto and
thereto and the instruments referenced herein and therein supersede all other prior oral or written agreements between the Buyers,
the Company, its Subsidiaries, their affiliates and Persons acting on their behalf, including, without limitation, any transactions
by any Buyer with respect to Common Stock or the Securities, and the other matters contained herein and therein, and this Agreement,
the other Transaction Documents, the schedules and exhibits attached hereto and thereto and the instruments referenced herein and
therein contain the entire understanding of the parties solely with respect to the matters covered herein and therein; provided,
however, nothing contained in this Agreement or any other Transaction Document shall (or shall be deemed to) (i) have any effect on
any agreements any Buyer has entered into with, or any instruments any Buyer has received from, the Company or any of its
Subsidiaries prior to the date hereof with respect to any prior investment made by such Buyer in the Company or (ii) waive, alter,
modify or amend in any respect any obligations of the Company or any of its Subsidiaries, or any rights of or benefits to any Buyer
or any other Person, in any agreement entered into prior to the date hereof between or among the Company and/or any of its
Subsidiaries and any Buyer, or any instruments any Buyer received from the Company and/or any of its Subsidiaries prior to the date
hereof, and all such agreements and instruments shall continue in full force and effect. Except as specifically set forth herein or
therein, neither the Company nor any Buyer makes any representation, warranty, covenant or undertaking with respect to such matters.
For clarification purposes, the Recitals are part of this Agreement. No provision of this Agreement may be amended other than by an
instrument in writing signed by the Company and the Required Holders (as defined below), and any amendment to any provision of this
Agreement made in conformity with the provisions of this Section 9(e) shall be binding on all Buyers and holders of Securities,
as applicable; provided that no such amendment shall be effective to the extent that it (A) applies to less than all of the holders
of the Securities then outstanding or (B) imposes any obligation or liability on any Buyer without such Buyer’s prior written
consent (which may be granted or withheld in such Buyer’s sole discretion). No waiver shall be effective unless it is in
writing and signed by an authorized representative of the waiving party, provided that the Required Holders may waive any provision
of this Agreement, and any waiver of any provision of this Agreement made in conformity with the provisions of this
Section 9(e) shall be binding on all Buyers and holders of Securities, as applicable, provided that no such waiver shall be
effective to the extent that it (1) applies to less than all of the holders of the Securities then outstanding (unless a party gives
a waiver as to itself only) or (2) imposes any obligation or liability on any Buyer without such Buyer’s prior written consent
(which may be granted or withheld in such Buyer’s sole discretion). No consideration (other than reimbursement of legal fees)
shall be offered or paid to any Person to amend or consent to a waiver or modification of any provision of any of the Transaction
Documents unless the same consideration also is offered to all of the parties to the Transaction Documents, all holders of the
Preferred Shares, all holders of Preferred Warrants or all holders of the Common Warrants (as the case may be). From the date hereof
and while any Preferred Shares, Preferred Warrants or Common Warrants are outstanding, the Company shall not be permitted to receive
any consideration from a Buyer or a holder of Preferred Shares, Preferred Warrants or Common Warrants that is not otherwise
contemplated by the Transaction Documents in order to, directly or indirectly, induce the Company or any Subsidiary (i) to treat
such Buyer or holder of Preferred Shares, Preferred Warrants or Common Warrants in a manner that is more favorable than to other
similarly situated Buyers or holders of Preferred Shares, Preferred Warrants or Common Warrants, as applicable, or (ii) to treat any
Buyer(s) or holder(s) of Preferred Shares, Preferred Warrants or Common Warrants in a manner that is less favorable than the Buyer
or holder of Preferred Shares or Common Warrants that is paying such consideration; provided, however, that the determination of
whether a Buyer has been treated more or less favorably than another Buyer shall disregard any securities of the Company purchased
or sold by any Buyer. The Company has not, directly or indirectly, made any agreements with any Buyers relating to the terms or
conditions of the transactions contemplated by the Transaction Documents except as set forth in the Transaction Documents. Without
limiting the foregoing, the Company confirms that, except as set forth in this Agreement, no Buyer has made any commitment or
promise or has any other obligation to provide any financing to the Company, any Subsidiary or otherwise. As a material inducement
for each Buyer to enter into this Agreement, the Company expressly acknowledges and agrees that (x) no due diligence or other
investigation or inquiry conducted by a Buyer, any of its advisors or any of its representatives shall affect such Buyer’s
right to rely on, or shall modify or qualify in any manner or be an exception to any of, the Company’s representations and
warranties contained in this Agreement or any other Transaction Document and (y) unless a provision of this Agreement or any other
Transaction Document is expressly preceded by the phrase “except as disclosed in the SEC Documents,” nothing contained
in any of the SEC Documents shall affect such Buyer’s right to rely on, or shall modify or qualify in any manner or be an
exception to any of, the Company’s representations and warranties contained in this Agreement or any other Transaction
Document. “Required Holders” means (I) prior to the Closing Date, each Buyer and (II) on or after the Closing
Date, Keystone Capital Partners, LLC and MVSR, LLC (in each case, solely to the extent such Buyer holds any Preferred Shares, Common
Warrants and/or Preferred Warrants, as applicable) or, thereafter, holders of a majority of the Underlying Securities as of such
time (excluding any Underlying Securities held by the Company or any of its Subsidiaries as of such time) issued or issuable
hereunder or pursuant to the Convertible Preferred Certificate of Designations and/or the Preferred Warrants and/or the Common
Warrants.

 

    47

     

    

 

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

 

    48

     

    

 

If to the Company:

 

Renovare Environmental, Inc.

80 Red Schoolhouse Road

Suite 101

Chestnut Ridge, New York 10977

Telephone: (479) 640-4190

Attention: Chief Executive Officer

E-Mail: tfuller@renovareenv.com

 

With a copy (for informational purposes only) to:

 

McCarter & English, LLP

Two Tower Center Boulevard, 24th Floor

East Brunswick, NJ 08816

Telephone: (732) 867-9741

Attention: Peter Campitiello, Esq.

E-Mail: pcampitiello@mccarter.com

 

If to the Transfer Agent:

 

VStock Transfer, LLC

18 Lafayette Place

Woodmere, NY 11508

Telephone: (212) 828-8436

Attention: Yoel Goldfelder

E-Mail: yoel@vstocktransfer.com

 

If to a Buyer, to its mailing address and e-mail
address set forth on the Schedule of Purchasing Buyers, with copies to such Buyer’s representatives as set forth on the Schedule
of Purchasing Buyers,

 

with a copy (for informational purposes only) to:

 

Kelley Drye & Warren LLP

3 World Trade Center

175 Greenwich Street

New York, NY 10007

Telephone: (212) 808-7540

Attention: Michael A. Adelstein, Esq.

E-mail: madelstein@kelleydrye.com

 

or to such other mailing address and/or
e-mail address and/or to the attention of such other Person as the recipient party has specified by written notice given to each
other party five (5) days prior to the effectiveness of such change, provided that Kelley Drye & Warren LLP shall only be
provided copies of notices sent to the lead Buyer. Written confirmation of receipt (A) given by the recipient of such notice,
consent, waiver or other communication, (B) mechanically or electronically generated by the sender’s e-mail containing the
time, date and recipient’s e-mail or (C) provided by an overnight courier service shall be rebuttable evidence of personal
service, receipt by e-mail or receipt from an overnight courier service in accordance with clause (i), (ii) or (iii) above,
respectively.

 

    49

     

    

 

(g)              
Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their respective
successors and assigns, including any purchasers of any of the Preferred Shares, Preferred Warrants and Common Warrants. The Company shall
not assign this Agreement or any rights or obligations hereunder without the prior written consent of the Required Holders, including,
without limitation, by way of a Fundamental Transaction (as defined in the Preferred Warrants) (unless the Company is in compliance with
the applicable provisions governing Fundamental Transactions set forth in the Preferred Warrants), a Fundamental Transaction (as defined
in the Common Warrants) (unless the Company is in compliance with the applicable provisions governing Fundamental Transactions set forth
in the Common Warrants) or a Fundamental Transaction (as defined in the Convertible Preferred Certificate of Designations) (unless the
Company is in compliance with the applicable provisions governing Fundamental Transactions set forth in the Convertible Preferred Certificate
of Designations). A Buyer may assign some or all of its rights hereunder in connection with any transfer of any of its Securities without
the consent of the Company, in which event such assignee shall be deemed to be a Buyer hereunder with respect to such assigned rights.

 

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

 

(i)                
Survival. The representations, warranties, agreements and covenants shall survive the Closing. Each Buyer shall be responsible
only for its own representations, warranties, agreements and covenants hereunder.

 

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

 

(k)              
Indemnification. In consideration of each Buyer’s execution and delivery of the Transaction Documents and acquiring
the Securities thereunder and in addition to all of the Company’s other obligations under the Transaction Documents, the Company
shall defend, protect, indemnify and hold harmless each Buyer and each holder of any Securities and all of their stockholders, partners,
members, officers, directors, employees and direct or indirect investors and any of the foregoing Persons’ agents or other representatives
(including, without limitation, those retained in connection with the transactions contemplated by this Agreement) (collectively, the
 “Indemnitees”) from and against any and all actions, causes of action, suits, claims, losses, costs, penalties, fees,
liabilities and damages, and expenses in connection therewith (irrespective of whether any such Indemnitee is a party to the action for
which indemnification hereunder is sought), and including reasonable attorneys’ fees and disbursements (the “Indemnified
Liabilities”), incurred by any Indemnitee as a result of, or arising out of, or relating to (i) any misrepresentation or breach
of any representation or warranty made by the Company or any Subsidiary in any of the Transaction Documents, (ii) any breach of any covenant,
agreement or obligation of the Company or any Subsidiary contained in any of the Transaction Documents or (iii) any cause of action,
suit, proceeding or claim brought or made against such Indemnitee by a third party (including for these purposes a derivative action
brought on behalf of the Company or any Subsidiary) or which otherwise involves such Indemnitee that arises out of or results from (A)
the execution, delivery, performance or enforcement of any of the Transaction Documents, (B) any transaction financed or to be financed
in whole or in part, directly or indirectly, with the proceeds of the issuance of the Securities, (C) any disclosure properly made by
such Buyer pursuant to Section 4(i), or (D) the status of such Buyer or holder of the Securities either as an investor in the Company
pursuant to the transactions contemplated by the Transaction Documents or as a party to this Agreement (including, without limitation,
as a party in interest or otherwise in any action or proceeding for injunctive or other equitable relief). To the extent that the foregoing
undertaking by the Company may be unenforceable for any reason, the Company shall make the maximum contribution to the payment and satisfaction
of each of the Indemnified Liabilities which is permissible under applicable law. Except as otherwise set forth herein, the mechanics
and procedures with respect to the rights and obligations under this Section 9(k) shall be the same as those set forth in Section 6
of the Registration Rights Agreement.

 

    50

     

    

 

(l)                
Construction. The language used in this Agreement will be deemed to be the language chosen by the parties to express their
mutual intent, and no rules of strict construction will be applied against any party. No specific representation or warranty shall limit
the generality or applicability of a more general representation or warranty. Each and every reference to share prices, shares of Common
Stock and any other numbers in this Agreement that relate to the Common Stock shall be automatically adjusted for any stock splits, stock
dividends, stock combinations, recapitalizations or other similar transactions that occur with respect to the Common Stock after the date
of this Agreement. Notwithstanding anything in this Agreement to the contrary, for the avoidance of doubt, nothing contained herein shall
constitute a representation or warranty against, or a prohibition of, any actions with respect to the borrowing of, arrangement to borrow,
identification of the availability of, and/or securing of, securities of the Company in order for such Buyer (or its broker or other financial
representative) to effect short sales or similar transactions in the future.

 

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

 

    51

     

    

 

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

 

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

 

(p)              
Judgment Currency.

 

(i)                
If for the purpose of obtaining or enforcing judgment against the Company in connection with this Agreement or any other Transaction
Document in any court in any jurisdiction it becomes necessary to convert into any other currency (such other currency being hereinafter
in this Section 9(p) referred to as the “Judgment Currency”) an amount due in US Dollars under this Agreement,
the conversion shall be made at the Exchange Rate prevailing on the Trading Day immediately preceding:

 

(1)              
the date actual payment of the amount due, in the case of any proceeding in the courts of New York or in the courts of any other
jurisdiction that will give effect to such conversion being made on such date: or

 

    52

     

    

 

(2)              
 the date on which the foreign court determines, in the case of any proceeding in the courts of any other jurisdiction (the date
as of which such conversion is made pursuant to this Section 9(p)(i)(2) being hereinafter referred to as the “Judgment Conversion
Date”).

 

(ii)             
If in the case of any proceeding in the court of any jurisdiction referred to in Section 9(p)(i)(2) above, there is a change
in the Exchange Rate prevailing between the Judgment Conversion Date and the date of actual payment of the amount due, the applicable
party shall pay such adjusted amount as may be necessary to ensure that the amount paid in the Judgment Currency, when converted at the
Exchange Rate prevailing on the date of payment, will produce the amount of US Dollars which could have been purchased with the amount
of Judgment Currency stipulated in the judgment or judicial order at the Exchange Rate prevailing on the Judgment Conversion Date.

 

(iii)           
Any amount due from the Company under this provision shall be due as a separate debt and shall not be affected by judgment being
obtained for any other amounts due under or in respect of this Agreement or any other Transaction Document.

 

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

 

[signature pages follow]

 

    53

     

    

 

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

 

 

	 	COMPANY:
	 
	 	RENOVARE ENVIRONMENTAL, INC.
	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

     

     

    

 

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

 	 	BUYER:
	 	 
	 	[OTHER BUYERS]
	 	 
	 	By:	 
	 	 	Name:
	 	 	Title: 

 

     

     

    

 

DISCLOSURE SCHEDULES

 

These Disclosure Schedules
(the “Disclosure Schedules”) are the Disclosure Schedules referred to in that certain Securities Purchase Agreement,
dated as of September 7, 2022, by and among Renovare Environmental, Inc. and each of the investors listed on the Schedule of Buyers attached
thereto (the “Agreement”). Unless otherwise indicated, all capitalized terms contained herein shall have the same meaning
ascribed to such terms in the Agreement.

 

Except as expressly provided
herein or in the Agreement, information and disclosures contained in the Disclosure Schedules are made as of the date of the Agreement
and the Closing Date, and the accuracy of such information and disclosures is confirmed only as of the date of the Agreement and the Closing
Date and not any time thereafter.

 

Disclosures made in any section
of the Disclosure Schedules shall be deemed to be disclosed for purposes of, and shall qualify, the corresponding section or subsection
of this Agreement, unless expressly provided herein or in the Agreement.

 

The information disclosed in the Disclosure Schedules
is disclosed in furtherance of, and should not be used for any purpose except in furtherance of, the transactions contemplated in the
Agreement and each party’s enforcement of their respective rights granted under the Agreement.

 

    Disclosure Schedules to Securities Purchase and Exchange Agreement - 1

     

    

 

Renovare Environmental, Inc.

Schedule 3(a) – Subsidiaries

 

	Ownership Subsidiaries of Renovare Environmental, Inc.
	 	Bio Hi Tech America, LLC (Delaware limited liability company)	100 %
	 	BioHiTech Europe Limited (A private company limited by shares registered in England and Wales)	100 %
	 	E.N.A Renewables LLC (Delaware limited liability company)	100 %
	 	BHT Financial LLC (Delaware limited liability company)	100 %
	(a)	BRT HOLDCO Inc. (Delaware Corporation)	100 %
	(b)	Apple Valley Waste Conversions, LLC (Delaware limited liability company) Owned 31% by E.N.A Renewables LLC	*
	 	Refuel America, LLC (Delaware limited liability company) owned 68% by E.N.A Renewables LLC	*
	 	Apple Valley Waste Technologies Buyer, Inc. (Delaware Corporation) owned 100% by Refuel America, LLC	*
	 	Apple Valley Waste Technologies LLC (Delaware limited liability company) Owned 100% by Apple Valley Waste Technologies, Buyer, Inc.	*
	(c)	Entsorga West Virginia LLC (Delaware limited liability company) Owned 94% by Apple Valley Waste Technologies LLC	*
	(b)	New Windsor Resource Recovery LLC (Delaware limited liability company) Owned 100% by Apple Valley Waste Technologies LLC	*
	(b)	Rensselaer Resource Recovery LLC (Delaware limited liability company) Owned 50% by Apple Valley Waste Technologies LLC	*
	 	 	 
	 	 	 
	(a)	Formed in 2022
	(b)	Inactive entity
	(c)	During March 2022, the Company commenced an operational and strategic review of EWV and its facility based MBT operations in Martinsburg, West Virginia (the “Facility”) that resulted in a decision to pause production operations to allow for reducing losses and cash requirements from the Facility. The pause has continued through the date hereof.
	*	Less than 100% ownership	 	 

 

Renovare Environmental, Inc.

Schedule 3(d) (ii) – No Conflicts

 

Michaelson Capital Special Finance Fund II L.P. (“ MCSFF
 ”)

Under a Note Purchase and Security Agreement (“NPSA”)
entered into between MCSFF and the Company and certain of its subsidiaries, MCSFF prohibits the issuance of debt, common stock and derivatives
thereof without their consent. In the event of failure to obtain such consent, MCSFF may declare a default under the NPSA. As of the date
of this response the outstanding balance of the note from MCSFF amounts to $3,281,250. On September 1, 2022 the Company and MCSFF entered
into a forbearance agreement that becomes effective no later than September 7, 2022 with the receipt of $585,170.90 paid through the flow
of funds of this transaction and receipt of their $350,000 investment in this transaction, which consents to the contemplated transactions,
reschedules principal repayments to quarterly installments of $250,000 commencing on December 31, 2022 and all remaining balances due
on December 31, 2023 and increases the interest rate to 12%.

 

Investors in a Private Placement Closed on January 25, 2022

Under a private placement Securities Purchase Agreement entered
into between the Company and several investors On January 21, 2022, the Company is restricted for a 60 day time period from the
registration date of the shares of its common stock issued in that offering from issuing shares of common stock for purposes of
raising capital. As of the date of this response such shares have not been registered.

 

    Disclosure Schedules to Securities Purchase and Exchange Agreement - 2

     

    

 

The holders in the January private placement are participating in this
transaction.

 

Renovare Environmental, Inc.

Schedule 3(g) – Placement Agent Fees

 

Under a placement agreement between Renovare Environmental,
Inc. and Network 1 Financial Securities, Inc. (“Network”) dated August 18, 2022, Network will be paid a placement fee of 7%
and an additional non-accountable expense allowance of 3.5% on cash investments raised in this transaction. Network will also receive
a cash fee of 3% from Renovare Environmental, Inc. on all amounts received by Renovare Environmental, Inc. in connection with the exercise
of warrants by purchasers issued in this offering.

 

Renovare Environmental, Inc.

Schedule 3(k) – SEC Documents

 

Financial Statements

The Company’s Annual Report on Form 10-K for
the fiscal year ended December 31, 2020 was filed after the filing deadline on April 15, 2021; accordingly it was accepted by the Commission
as of April 16, 2021, resulting in the Company losing its eligibility under the SEC Rules and Regulations to utilize Registration Statement
on Form S-3. Following that filing through the filing of the Company’s Annual Report on Form 10-K for the fiscal year ended December
31, 2021, all filings were filed on time, thereby allowing the Company to utilize Registration Statements of Form S-3, as well as access
to file a shelf Registration Statement on Form S-3.

 

The Company’s Quarterly Report on Form 10-Q
for the fiscal quarter ended March 31, 2022 was filed after the filing deadline May 23, 2022. The report was filed on June 30, 2022. As
of the date of this disclosure the Company has not filed its Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2022

 

Renovare Environmental, Inc.

Schedule 3(l) – Absence of Certain Changes

 

Creditors

See Schedule 3(s) Indebtedness.

 

Subsidiaries

See Schedule 3(t) Litigation regarding Entsorga West
Virginia, LLC.

 

Renovare Environmental, Inc.

Schedule 3(n) – Conduct of Business

 

Principal Market

Following Notices of non-compliance on January 10, 2022, April 14,
2022, a Hearing on May 19, 2022 and a Notice on May 24, 2022, on June 15, 2022 the Company received the Determination of the Nasdaq Hearing
Panel that the Company’s share trading on Nasdaq would be suspended effective June 17, 2022.

 

    Disclosure Schedules to Securities Purchase and Exchange Agreement - 3

     

    

 

On June 20, 2022, the Company’s shares commenced trading on OTC
Pink.

 

Renovare Environmental, Inc.

Schedule 3(p) – Sarbanes-Oxley Act

 

Disclosure Controls and Procedures

Pursuant to Rule 13a-15(b) under the Securities Exchange
Act of 1934, as amended (“Exchange Act”), the Company carried out an evaluation, with the participation of the Company’s
management, including the Company’s Chief Executive Officer (the Company’s principal executive officer) and Chief Financial
Officer (the Company’s principal financial and accounting officer), of the effectiveness of the Company’s disclosure controls
and procedures (as defined under Rule 13a-15(e) under the Exchange Act) as of the end of the period covered by this report. Based upon
that evaluation, the Company’s Chief Executive Officer and Chief Financial Officer concluded that due to the material weakness discussed
below, the Company’s disclosure controls and procedures are not effective to ensure that information required to be disclosed by
the Company in the reports that the Company files or submits under the Exchange Act, is recorded, processed, summarized and reported,
within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to the
Company’s management, including the Company’s Chief Executive Officer and Chief Financial Officer, as appropriate, to allow
timely decisions regarding required disclosure.

 

Management’s Annual Report on Internal Control Over
Financial Reporting

 

The management of the Company is responsible for
establishing and maintaining adequate internal control over financial reporting for the Company. Our internal control system was designed
to, in general, provide reasonable assurance to the Company’s management and board regarding the preparation and fair presentation
of published financial statements, but because of its inherent limitations, internal control over financial reporting may not prevent
or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls
may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

 

Our management assessed the effectiveness of the
Company’s internal control over financial reporting as of December 31, 2021. The framework used by management in making that assessment
was the criteria set forth in the document entitled “Internal Control - Integrated Framework (2013)” issued by the Committee
of Sponsoring Organizations of the Treadway Commission. Based on that assessment, our management has determined that as of December 31,
2021, the Company’s internal control over financial reporting was not effective for the purposes for which it is intended and determined
there to be a material weakness.

 

A material weakness is a deficiency, or a combination
of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement
of the Company’s annual or interim financial statements will not be prevented or detected on a timely basis.

 

Because of our limited operations, many of our controls
have not been formalized and evidence of the performance of those controls is limited, additionally, we have a small number of employees
which prohibits a segregation of duties, which result in a material weakness over disclosure controls and procedures, as well as internal
control over financial reporting. During 2021 the Company had limited access to sufficient resources within the accounting function, which
restricted the Company’s ability to gather, analyze and properly review information related to financial reporting in a timely manner.
We expect to add additional resources as we grow and expand our overall operations. However, there can be no assurance that our operations
will expand.

 

Changes in Internal Controls Over Financial Reporting

 

There have not been any changes in our internal
control over financial reporting during the period covered by this report that have materially affected, or are reasonably likely to materially
affect, our internal control over financial reporting.

 

    Disclosure Schedules to Securities Purchase and Exchange Agreement - 4

     

    

 

Renovare Environmental, Inc.

Schedule 3(q) – Transactions With Affiliates

 

As of and for the years ended December 31, 2021 and 2020, the Company
reported the following in the Annual Report on Form 10-K relating to transactions with affiliates.

 

Related Party Transactions

 

Related parties include Directors, Senior Management
Officers, and shareholders, plus their immediate family, who own a 5% or greater ownership interest at the time of a transaction. Related
parties also include GMG and its subsidiaries as a result of its 31.8% and 40.0% interest in Refuel America, LLC ("Refuel")
as of December 31, 2021 and 2020, respectively, a consolidated entity of the Company.

 

During 2018 GMG acquired a regional waste management
entity, Apple Valley Waste (“AVW”), with operations located in West Virginia, Maryland and Pennsylvania. As part of this acquisition,
GMG also acquired AVW’s interests in EWV that were contributed to Refuel. Prior to GMG’s acquisition of AVW and the Company’s
investments and control acquisition of EWV, in order for EWV to receive the proceeds from the Entsorga West Virginia, LLC WVEDA Non-Recourse
Solid Waste Disposal Revenue Bonds, EWV and AWV had entered into several agreements relating to business services, solid waste delivery
and disposal.

 

The table below presents the face amount of direct
related party assets and liabilities and other transactions or conditions as of or during the periods indicated.

 

	 	 	 	 	December 31,	 	 	December 31,	 
	 	 	 	 	2021	 	 	2020	 
	Assets:	 	 	 	 	 	 	 	 	 	 
	Accounts receivable	 	(a) (b)	 	$	461,674	 	 	$	206,352	 
	Intangible assets, net, included in other assets	 	(c)	 	 	—	 	 	 	20,199	 
	Liabilities:	 	 	 	 	 	 	 	 	 	 
	Accounts payable	 	 (c) (d) (e) (f)	 	 	552,042	 	 	 	294,040	 
	Accrued interest payable	 	(h)	 	 	317,645	 	 	 	196,033	 
	Accrued liabilities	 	(j)	 	 	—	 	 	 	917,420	 
	Long term accrued interest	 	(g)	 	 	2,070,324	 	 	 	1,807,857	 
	Advance from related party	 	(h)	 	 	935,000	 	 	 	935,000	 
	Junior promissory note	 	(g)	 	 	993,928	 	 	 	971,426	 
	EntsorgaFin S.p.A Notes Payable	 	(j)	 	 	1,254,696	 	 	 	—	 
	Liabilities to non-controlling interests to be settled in subsidiary membership units	 	(k)	 	 	—	 	 	 	1,585,812	 
	Other:	 	 	 	 	 	 	 	 	 	 
	Line of credit guarantee	 	(i)	 	 	1,500,000	 	 	 	1,498,975	 

 

    Disclosure Schedules to Securities Purchase and Exchange Agreement - 5

     

    

 

The table below presents direct related party expenses
or transactions for the years ended December 31, 2021 and 2020. Compensation and related costs for employees of the Company
are excluded from the table below.

 

	 	 	 	 	Year Ended December 31,	 
	 	 	 	 	2021	 	 	2020	 
	Management advisory and other fees	 	(a)	 	$	—	 	 	$	125,000	 
	MBT revenue	 	(b)	 	 	699,903	 	 	 	1,275,982	 
	Operating expenses – HEBioT	 	(d)	 	 	40,982	 	 	 	1,083,382	 
	Operating expenses – Selling, general and administrative	 	(e)	 	 	—	 	 	 	41,514	 
	Operating expenses - Selling, general and administrative	 	(c) (f)	 	 	200,444	 	 	 	381,532	 
	Interest expense	 	 	 	 	418,791	 	 	 	395,981	 
	Debt guarantee fees	 	(i)	 	 	67,500	 	 	 	67,500	 
	Interest expense – EntsorgaFin	 	(j)	 	 	420,725	 	 	 	—	 

 

		(a)	Management Advisory Fees - The Company has provided management advisory services to Gold Medal Holdings, Inc., a subsidiary
of GMG.

 

		(b)	MBT Disposal Revenues – EWV has a series of agreements with GMG subsidiaries entities that provide for specified
fees for each ton of municipal waste delivered to the MBT facility.

 

		(c)	Distribution Agreement - BioHiTech has an exclusive license and distribution agreement (the “License Agreement”)
with BioHiTech International, Inc., a company owned by James Koh, a BioHiTech shareholder and other unrelated parties. The License
Agreement provides distribution rights to the Eco-Safe Digester through December 31, 2023 (unless extended by mutual agreement) and
for annual payments to Mr. Koh in the amount of $200,000 for the term of the License Agreement. Effective October 17, 2018,
the agreement was amended to reduce the annual payments to $75,000 and to remove several international locations that the Company does
not actively market.

 

		(d)	Disposal costs – A GMG subsidiary has provided logistics and disposal of non-recovered municipal solid waste to
the MBT facility.

 

		(e)	Facility Lease - The Company leased its corporate headquarters and warehouse space from BioHiTech Realty LLC, a company
owned by two stockholders of the Company, one of whom was the Chief Executive Officer. The lease expired in 2020. Subsequently, the property
that is leased by the Company was acquired by a nonrelated party.

 

		(f)	Business Services Fees – A GMG subsidiary provided certain general management and administrative support to the
MBT facility.

 

		(g)	Junior Promissory Note – On February 2, 2018, the Company entered into a Securities Exchange and Note Purchase
Agreement (the “Exchange Agreement”) with Frank E. Celli, the Company’s former Chairman of the Board, whereby Celli
exchanged $4,500,000 in a note receivable from the Company and $544,777 in advances made to the Company for $4,000,000 of the Registrant’s
Series C Convertible Preferred Stock, par value $0.0001 (the “Series C Preferred Stock”) and a junior promissory
note (the “Junior Note”) amounting to $1,044,477, which is carried net of discounts amounting to $135,823, less associated
amortization of $85,274 and $62,772 as of December 31, 2021 and 2020, respectively. The Junior Note, which is subordinated to the senior
secured note, is not convertible, accrues interest at the rate of 10.25% per annum and matures on February 2, 2024.

 

		(h)	Advance from Related Party - The Company’s former Chairman of the Board on occasion advances the Company
funds for operating and capital purposes. The advances bear interest at 13% and are unsecured and due on demand. There are no financial
covenants related to this advance and there are no formal commitments to extend any further advances. In addition, during the year ended
December 31, 2020 another officer advanced $200,000 to the Company which was repaid during 2020.

 

    Disclosure Schedules to Securities Purchase and Exchange Agreement - 6

     

    

 

		(i)	Line of Credit - Under the terms of the line of credit, several related parties have personally guaranteed the
line and are contingently liable should the Company not meet its obligations under the line. In connection with the line of credit, the
former Chairman of the Board and a former Director have provided a guarantee of the line of credit in exchange for a fee representing
4.5% of the debt. Effective July 31, 2022, the former Chairman of the Board forgave his portion of the accrued and unpaid fees, which
amounted to $128,333.26.

 

		(j)	Claims by Related Party - During September 2020, the Company's Entsorga West Virginia subsidiary received notice
that a minority owner of EWV (EntsorgaFin S.p.A. “EFin”), who also provided intellectual property, equipment and engineering
services relating to the set-up and initial operation of the Facility, was claiming $917,420 related to services contracted as part of
the Facility's construction and initial start-up and operation. The Company incurred offsetting costs and expenses greater than the claim
correcting or replacing the services that were contracted but that were either not performed or performed correctly. As a result of this
claim and the related costs incurred by the Company to cure the deficiencies in the services that were contracted, the Company has reflected
an impairment charge amounting to $917,420 during the year ended December 31, 2020. On May 19, 2021 the Company’s subsidiary EWV
settled the matter and executed a series of notes related to the settlement of a previously recognized claim with EFin, the parent company
of Entsorga USA, Inc., a non-controlling member of the Company’s EWV subsidiary. The series of notes are comprised of 24 monthly
notes of $41,725 bearing interest at 1% if not paid at maturity, of which four (4) notes, totaling $166,900 are only payable if EFin successfully
repairs certain equipment at the EWV facility. In addition to the 24 notes, there is a note for $253,296 (“Default Note”)
that is only payable in the event of a default on the other notes due to EFin. The 24 monthly notes totaling $1,001,400 have been discounted
at the rate of 6.6%, resulting in an initial net balance due of $917,421, which is the amount that the Company had previously accrued
for the claims made. On November 1, 2021 EWV failed to repay the note then due; accordingly the default note and interest has been recognized
as interest expense and all notes have been classified as currently due. As a result of a default in payment, the Default Note has been
recognized as a current liability and the discount on the notes originally recognized has been recognized, resulting in a total of $1,254,696
notes outstanding as of December 31, 2021. On February 25, 2022 EFin filed a complaint in the United States District Court for the Southern
District of New York seeking repayment of the notes payable. The Company is defending the claims and does not believe that the outcome
will have a material impact on the financial statements of the Company.

 

		(k)	Liabilities to non-controlling interests to be settled in subsidiary membership units - See (j), above.

 

The tables below presents the face amount of direct
related party assets and liabilities and other transactions or conditions as of March 31, 2022 or during the three months then ended along
with comparative amounts as of December 31, 2021 or for the three months ended March 31, 2021. Since March 31, 2022, the Company has not
entered into any new related party transactions.

 

	 	 	 	 	March 31,	 	 	December 31,	 
	 	 	 	 	2022	 	 	2021	 
	Assets:	 	 	 	 	 	 	 	 	 	 
	Accounts receivable	 	(a)	 	$	424,150	 	 	$	461,674	 
	Intangible assets, net, included in other assets	 	(b)	 	 	—	 	 	 	—	 
	Liabilities:	 	 	 	 	 	 	 	 	 	 
	Accounts payable	 	(b) (c) (d)	 	 	597,544	 	 	 	552,042	 
	Accrued interest payable	 	 (f)	 	 	346,013	 	 	 	317,645	 
	Accrued liabilities	 	 (h)	 	 	—	 	 	 	—	 
	Long term accrued interest	 	(e)	 	 	2,160,219	 	 	 	2,070,324	 
	Advance from related party	 	(f)	 	 	885,000	 	 	 	935,000	 
	Junior promissory note	 	(e)	 	 	999,634	 	 	 	993,928	 
	EntsorgaFin S.p.A Notes Payable	 	(h)	 	 	1,254,696	 	 	 	1,254,696	 
	Other:	 	 	 	 	 	 	 	 	 	 
	Line of credit guarantee	 	(g)	 	 	1,500,000	 	 	 	1,500,000	 

 

    Disclosure Schedules to Securities Purchase and Exchange Agreement - 7

     

    

 

The table below presents direct related party
expenses or transactions for the three months ended March 31, 2022 and 2021. Compensation and related costs for employees of the Company
are excluded from the table below.

 

	 	 	 	 	2022	 	 	2021	 
	MBT revenue	 	(b)	 	 	37,351	 	 	 	154,326	 
	Operating expenses - MBT	 	(c)	 	 	—	 	 	 	26,819	 
	Operating expenses - Selling, general and administrative	 	(b) (d)	 	 	—	 	 	 	18,750	 
	Interest expense	 	 	 	 	107,541	 	 	 	101,462	 
	Debt guarantee fees	 	(g)	 	 	16,875	 	 	 	16,875	 
	Interest expense – EntsorgaFin	 	(h)	 	 	—	 	 	 	—	 

 

Summary notes:

 

	a -	MBT Disposal Revenues	 	e -	Junior Promissory Note
	b -	Distribution Agreement	 	f -	Advances from Related Parties
	c -	Disposal costs	 	g -	Line of Credit, Effective July 31, 2022, the former Chairman of the Board forgave his portion of the accrued and unpaid fees, which amounted to $128,333.26.
	d -	Business Services Fees	 	h -	Claims by Related Party settled in Notes Payable – Note 5. Notes, Bonds, Debts and Borrowings.

 

Renovare Environmental, Inc.

Schedule 3(r)(iii) – Equity Capitalization

 

	Capital Shares Outstanding	 	 	 	 	 	 	 	 	 
	 	 	 	 	Shares	 
	 	 	 	 	Designated	 	 	 	 	 	 	 
	Class	 	or Authorized	 	 	Issued	 	 	Outstanding	 
	Convertible Preferred Stock	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Sr. A	 	 	333,401	 	 	 	333,401	 	 	 	95,312	*
	 	 	Sr. B	 	 	1,111,200	 	 	 	428,333	 	 	 	-	 
	 	 	Sr. C	 	 	1,000,000	 	 	 	427,500	 	 	 	417,500	 
	 	 	Sr. D	 	 	20,000	 	 	 	18,850	 	 	 	6,250	 
	 	 	Sr. E	 	 	714,519	 	 	 	714,519	 	 	 	-	 
	 	 	Sr. F	 	 	30,090	 	 	 	13,611	 	 	 	11,002	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Common stock	 	 	 	 	50,000,000	 	 	 	35,199,478	 	 	 	35,199,478	 

 

 

		*	Classified as temporary equity in financial statements

 

	Common Stock Outstanding and Reserved	 	 	 	 
	Common stock authorized	 	 	50,000,000	 
	Common stock outstanding	 	 	35,199,478	 
	Reserved for future issue*:	 	 	 	 
	Convertible preferred stock	 	 	3,736,342	 
	Warrants	 	 	8,876,561	 
	Convertible debt	 	 	-	 
	Stock based compensation - Options and RSUs	 	 	1,646,120	 
	Total	 	 	14,259,023	 
	Total outstanding and reserved	 	 	49,458,501	 
	Available for future issue	 	 	541,499	 

 

    Disclosure Schedules to Securities Purchase and Exchange Agreement - 8

     

    

 

Renovare Environmental, Inc.

Schedule 3(r)(iii) – Equity Capitalization

 

	Directors, Officers and 10% Affiliates	 	 	 	 	 	 	 	 	 
	 	 	Outstanding	 	 	Dilutive	 	 	 	 
	 	 	Common	 	 	Common	 	 	 	 
	 	 	Shares	 	 	Shares	 	 	 	 
	Officers and directors	 	 	 	 	 	 	 	 	 	 	 	 
	Current:	 	 	 	 	 	 	 	 	 	 	 	 
	Nicholaus Rohleder, Interim Chairman	 	 	-	 	 	 	-	 	 	 	*	 
	Anthony Fuller, Director and CEO	 	 	10,000	 	 	 	80,211	 	 	 	*	 
	Harriet Hentges, Director	 	 	12,000	 	 	 	77,777	 	 	 	*	 
	Robert Graham, Director	 	 	-	 	 	 	65,777	 	 	 	*	 
	Walter Littlejohn, Director	 	 	-	 	 	 	-	 	 	 	*	 
	Brian Essman, CFO	 	 	102,500	 	 	 	172,500	 	 	 	*	 
	As a group	 	 	124,500	 	 	 	396,265	 	 	 	1.1	%
	 	 	 	 	 	 	 	 	 	 	 	 	 
	Former:	 	 	 	 	 	 	 	 	 	 	 	 
	Frank E. Celli and Family Trust, Former Chairman	 	 	2,033,487	 	 	 	3,299,948	 	 	 	9.0	%
	James Chambers and Conundrum Partners, Former Director	 	 	1,061,261	 	 	 	1,609,848	 	 	 	4.5	%
	Robert Joyce, Former COO	 	 	342,690	 	 	 	678,990	 	 	 	1.9	%
	As a group	 	 	3,437,438	 	 	 	5,588,786	 	 	 	15.0	%
	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total	 	 	3,561,938	 	 	 	5,985,051	 	 	 	14.5	%
	 	 	 	 	 	 	 	 	 	 	 	 	 
	Others, over 10%	 	 	-	 	 	 	-	 	 	 	 	 

 

 

		*	Less than 1%

 

    Disclosure Schedules to Securities Purchase and Exchange Agreement - 9

     

    

 

Renovare Environmental, Inc.

Schedule 3(r)(iv) – Equity Capitalization

 

Obligations (iv)

 

A - Liens on shares, interest or capital

The Michaelson senior notes have a lien on the subsidiary membership
interests of the non-Refuel subsidiaries. The EWV Bonds have a security interest on the EWV LLC membership units and the assets of EWV
LLC..

 

B - Options and warrants

The Company presently has 1,646,120 options and restricted stock units
outstanding to employees and former employees.

 

C - Obligations to register shares

Under a private purchase agreement executed on January 21, 2022 and
settled on January 25, 2022, the Company is obligated to register 2,241,667 shares of presently issued common shares and 2,141,667 warrant
shares. The holders of these securities are exchanging their common stock and common stock warrants for Series I preferred shares as part
of this transaction.

 

Under a security purchase agreement executed on June 2, 2022, the Company
is obligated to register 6,349,226 common warrant shares.

 

E - Anti-dilution

All of the Company's preferred shares and 1,842,845 warrants contain
anti-dilution provisions. The present exercise or conversion rate of the outstanding instruments is $0.60. In connection with the MCSFF
forbearance agreement (see Schedule 3(d)(ii), the Company agreed to allow MCSFF the option to convert into common stock the outstanding
balance of the note and accrued interest at a conversion price based upon the closing price of the Company’s common stock on the
date of the close of this agreement.

 

    Disclosure Schedules to Securities Purchase and Exchange Agreement - 10

     

    

 

Renovare Environmental, Inc.

Schedule 3(s) – Indebtedness and Other
Contracts

 

	Creditor	Borrower	Original Date of

 instrument	Maturity of

 Current

 Instrument	Outstanding Face 

Amount	Due Within a

 Year	Due Thereafter
	Michaelson Capital Special Finance Fund II, L.P.	Renovare Environmental, Inc. and wholly owned subsidiaries	2/2/18	
    12/31/2023

     
	 $    3,517,090	 $   1,250,000 	 $  2,267,090 
	Security:	Sr. Secured, except Entsorga West Virginia, LLC. and personal partial guarantee of $1,500,000 by Frank E. Celli, former COB and CEO.
	Status:	The Company defaulted on interest payment and principal repayment due 2/15/2022, (see response to Schedule 3(d)(ii). 
	*Junior Note - Frank E. Celli	Renovare Environmental, Inc.	2/2/18	2/15/24	 $    1,044,477 	 $                  - 	 $ 1,044,477 
	Security:	Junior to Michaelson, unsecured
	Status:	Current, principal due at maturity, interest accrued, but is not paid.
	*Senior Subordinate Notes – Keystone and Cavalry	Renovare Environmental, Inc.	6/3/2022	6/3/2023	$ 246,512	$ 246,512	$                -
	Security:	Junior to Michaelson and Celli note, no new liens or debt are allowed ahead of or behind these notes.
	Status:	Current
	Comerica Bank	BHT Financial, LLC.	6/30/20	Demand	 $    1,500,000 	 $   1,500,000 	 $                - 
	Security:	Assets of BHT Financial, LLC and personal guarantees by Frank E. Celli former COB and James D. Chambers former Director.
	Status:	Current
	*Note Payable - Harold White	BioHiTech America, LLC	7/17/15	1/1/22	 $       100,000 	 $      100,000 	 $                - 
	Security:	Unsecured
	Status:	Not paid at maturity.
	*Advances, Frank E. Celli	BioHiTech America, LLC	2019	On demand	 $       885,000 	 $      885,000 	 $                - 
	Security:	Unsecured, not documented by a note
	Status:	Current
	Ally Auto Finance	BioHiTech America, LLC	11/6/17	10/6/22	 $           3,820 	 $          3,820 	 $                - 
	Security:	Truck title
	Status:	Current
	West Virginia Economic Development Agency, Solid Waste Disposal Revenue Bonds – Non-Recourse (US Bank Trustee)	Entsorga West Virginia, LLC	3/1/16	2/1/36	 $  33,000,000 	 $ 33,000,000 	 $                - 
	Security:	All assets of Entsorga West Virginia, LLC and its membership interests.
	Status:	In default. No notice or demand made by Bond Trustee.
	EntsorgaFin S.p.A.	Entsorga West Virginia, LLC	5/7/21	Monthly through 8/1/2023	$    1,254,696	$   1,254,696	$                -
	Security:	Unsecured
	Status:	In default on monthly payments since 11/1/2021. EFin has filed for collection in U.S. Court.
	 	 	 	 	 	 	 

*Debts to be exchanged for securities under this transaction.

 

    Disclosure Schedules to Securities Purchase and Exchange Agreement - 11

     

    

 

Renovare Environmental, Inc.

Schedule 3(t) – Litigation

 

During September 2020, the Company’s Entsorga
West Virginia subsidiary received notice that EFin, affiliate of a minority owner of EWV, who also provided intellectual property, equipment
and engineering services relating to the set-up and initial operation of the Facility, was claiming it was owed $917,420 related to services
contracted as part of the Facility’s construction and initial start-up and operation. The Company incurred offsetting costs and
expenses greater than the claim correcting or replacing the services that were contracted but that were either not performed or performed
correctly. As a result of this claim and the related costs incurred by the Company to cure the deficiencies in the services that were
contracted, the Company reflected an impairment charge amounting to $917,420 during the year ended December 31, 2020. On May 19, 2021
the Company signed an agreement, effective May 7, 2021, settling this matter through the issuance of notes payable as described in Note
5. On November 1, 2021, the Company failed to repay a note then due. As of March 31, 2022 and December 31, 2021, the notes amount to $1,254,696,
including the effect of the default. On February 25, 2022 EFin filed a complaint in the United States District Court for the Southern
District of New York seeking repayment of the notes payable. The Company is defending the claims and does not believe that the outcome
will have a material impact on the financial statements of the Company.

 

During the three months ended March 31, 2022, the
Company commenced an operational and strategic review of EWV and its facility based MBT operations in Martinsburg, West Virginia that
resulted in a decision to pause production operations to allow for reducing losses and cash requirements from the Facility. This pause
has continued into the second quarter of 2022.

 

In connection with the pause of operations at the
Facility, EWV provided a notice of the pause to the West Virginia Department of Environmental Protection (“WVDEP”) which provides
the license to operate the facility. While there has been no communications from the WVDEP, under their authority, they may take actions
that could include suspending or withdrawing the Facility’s license to operate and other actions to protect the environment. In
addition, the Facility’s landlord, Berkeley County Solid Waste Authority (“BCSWA”) has been apprised of the Facility’s
pause of operations and on March 24, 2022 BCSWA, by letter, provided a notice of monetary and non-monetary default and reserved their
rights under the lease, which include, but are not limited to terminating the lease and requiring EWV perform obligations under the lease.
In addition, EWV and the Facility is collateral to a nonrecourse WV EDA senior secured series of bonds (the “Bonds”). While
the Bond trustee has not provided a forbearance agreement in connection with the issuance of March 31, 2922 and December 31, 2021 financial
statements, they have not taken any actions resulting from our default under the most recent forbearance agreement. Under the terms of
the Bonds, the Trustee may declare a default and take actions to secure or foreclose on their collateral, which includes the Facility,
other assets and the membership interests in EWV.

 

Renovare Environmental, Inc.

Schedule 3(x) (i) – Patents

 

 

On May 22, 2018, the Company received its U.S. patent
for the “Network Connected Weight Tracking System for a Food Waste Disposal Machine”, which expires on July 23, 2036. On March
22, 2022, the Company received its Canadian patent for the “Network Connected Weight Tracking System for a Food Waste Disposal Machine”,
which expires on January 12, 2035.

 

    Disclosure Schedules to Securities Purchase and Exchange Agreement - 12

     

    

 

Renovare Environmental, Inc.

Schedule 3(x) (ii) – Intellectual Property
Rights

 

MBT Facility Development Costs – During
2018, the Company commenced initial development of a project in Rensselaer, NY. During 2020, the Company has received local permits and
has filed the required state permit applications, which underwent review by the New York State Department of Environmental Conservation
("NYSDEC"). On August 10, 2020 the NYSDEC, by letter, informed the Company that the application had been initially denied. The
Company initially disagreed with this decision, and as is part of the process, exercised its right to appeal the NYSDEC findings. During
the fourth quarter of 2021, the Company determined that it would not further pursue its appeal of the NYSDEC denial. During the year ended
December 31, 2021, the Company recorded $413,284 as an impairment and abandonment expense in the consolidated statements of operations.

 

Technology License Agreement – Future
Facility – On November 17, 2017, the Company acquired a fully paid technology agreement from EntsorgaFin S.p.A in exchange
for common stock and cash totaling $6,019,200 (the “IPA”).The license was applicable to a future MBT project developed by
the Company through an amended development agreement between EFin and Apple Valley Waste Conversions, LLC (“AVWC”), a subsidiary
of the Company. Under the terms of the amended development agreement there were performance terms relating to the level of active projects
and projects completed that the Company had not met. During 2021 the parties were negotiating a new development agreement and in November
2021 the parties were unable to conclude an agreement that was mutually acceptable to the parties. At such time, the Company evaluated
the costs and long term impact of alternative paths to require EFin honor the IPA and concluded that it would abandon the IPA for the
foreseeable future. During the year ended December 31, 2021, the Company recorded $6,019,200 as an impairment and abandonment expense
in the consolidated statements of operations.

 

 

Renovare Environmental, Inc.

Schedule 3(bb) – Internal Accounting and
Disclosure Controls

 

Disclosure Controls and
Procedures

 

Pursuant to Rule 13a-15(b) under the Securities Exchange
Act of 1934, as amended (“Exchange Act”), the Company carried out an evaluation, with the participation of the Company’s
management, including the Company’s Chief Executive Officer (the Company’s principal executive officer) and Chief Financial
Officer (the Company’s principal financial and accounting officer), of the effectiveness of the Company’s disclosure controls
and procedures (as defined under Rule 13a-15(e) under the Exchange Act) as of the end of the period covered by this report. Based upon
that evaluation, the Company’s Chief Executive Officer and Chief Financial Officer concluded that due to the material weakness discussed
below, the Company’s disclosure controls and procedures are not effective to ensure that information required to be disclosed by
the Company in the reports that the Company files or submits under the Exchange Act, is recorded, processed, summarized and reported,
within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to the
Company’s management, including the Company’s Chief Executive Officer and Chief Financial Officer, as appropriate, to allow
timely decisions regarding required disclosure.

 

Management’s Annual Report on Internal Control Over
Financial Reporting

 

The management of the Company is responsible for
establishing and maintaining adequate internal control over financial reporting for the Company. Our internal control system was designed
to, in general, provide reasonable assurance to the Company’s management and board regarding the preparation and fair presentation
of published financial statements, but because of its inherent limitations, internal control over financial reporting may not prevent
or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls
may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

 

    Disclosure Schedules to Securities Purchase and Exchange Agreement - 13

     

    

 

Our management assessed the effectiveness of the
Company’s internal control over financial reporting as of December 31, 2021. The framework used by management in making that assessment
was the criteria set forth in the document entitled “Internal Control - Integrated Framework (2013)” issued by the Committee
of Sponsoring Organizations of the Treadway Commission. Based on that assessment, our management has determined that as of December 31,
2021, the Company’s internal control over financial reporting was not effective for the purposes for which it is intended and determined
there to be a material weakness.

 

A material weakness is a deficiency, or a combination
of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement
of the Company’s annual or interim financial statements will not be prevented or detected on a timely basis.

 

Because of our limited operations, many of our controls
have not been formalized and evidence of the performance of those controls is limited, additionally, we have a small number of employees
which prohibits a segregation of duties, which result in a material weakness over disclosure controls and procedures, as well as internal
control over financial reporting. During 2021 the Company had limited access to sufficient resources within the accounting function, which
restricted the Company’s ability to gather, analyze and properly review information related to financial reporting in a timely manner.
We expect to add additional resources as we grow and expand our overall operations. However, there can be no assurance that our operations
will expand.

 

Changes in Internal Controls Over Financial Reporting

 

There have not been any changes in our internal
control over financial reporting during the period covered by this report that have materially affected, or are reasonably likely to materially
affect, our internal control over financial reporting.

 

Renovare Environmental, Inc.

Schedule 3(nn) – Management

 

None.

 

Renovare Environmental, Inc.

Schedule 4(d) – Use of proceeds

 

In connection with the offering, Renovare will
pay Michaelson Capital Special Finance Fund II, L.P. $585,170.90 from the proceeds for principal, interest and forbearance fees.

 

    Disclosure Schedules to Securities Purchase and Exchange Agreement - 14

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