Document:

Exhibit 10.9

 

EXECUTION
VERSION

 

SECURITIES
PURCHASE AGREEMENT

 

This
Securities Purchase Agreement (this “Agreement”) is dated as of December 26, 2018, between Stellar Acquisition III
Inc., a Republic of Marshall Islands corporation (“Stellar,” and including the successor entity to Stellar following
the Conversion (as hereinafter defined) of Stellar into a Delaware corporation in accordance with the applicable provisions of
The Republic of the Marshall Islands Associations Law, as amended, and the applicable provisions of the Delaware General Corporation
Law and in connection with the Merger (as hereinafter defined), the “Company”), and the purchasers identified on the
signature pages hereto (including each successors and assigns, the “Purchaser” or in the aggregate, the “Purchasers”).

 

WHEREAS,
subject to the terms and conditions set forth in this Agreement and pursuant to Section 4(a)(2) of the Securities Act of 1933,
as amended (the “Securities Act”), and/or Rule 506 promulgated thereunder, the Company desires to issue and sell to
the Purchasers, and the Purchasers, desire to purchase from the Company, Securities of the Company as more fully described in
this Agreement.

 

NOW,
THEREFORE, IN CONSIDERATION of the mutual covenants contained in this Agreement, and for other good and valuable consideration,
the receipt and adequacy of which are hereby acknowledged, the Company and each Purchaser agree as follows:

 

ARTICLE
I.

DEFINITIONS

 

1.1. Definitions.
In addition to the terms defined elsewhere in this Agreement: (a) capitalized terms that are not otherwise defined herein
have the meanings given to such terms in the Transaction Documents (as defined herein), and (b) the following terms have the
meanings set forth in this Section 1.1:

 

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

 

“BHCA”
shall have the meaning ascribed to such term in Section 3.1(gg). “Board of Directors” means the board of directors
of the Company.

 

“Business
Day” means any day other than a Saturday, Sunday or a legal holiday on which commercial banking institutions in New York,
New York are authorized to close for business.

 

“Certificate
of Designations” means the Certificate of Designation to be filed prior to the Closing by the Company with the Secretary
of State of the State of Delaware immediately following the Conversion, in the form of Exhibit A attached hereto.

 

“Closing
Date” means the Trading Day(s) on which all of the Transaction Documents have been executed and delivered by the applicable
parties thereto in connection with a Closing, and all conditions precedent to (i) the Purchaser’s obligations to pay the
Subscription Amount as to the Closing and (ii) the Company’s obligations to deliver the Securities as to the Closing, in
each case, have been satisfied or waived.

 

“Closing”
means closing of the purchase and sale of the Securities pursuant to Section 2.2.

 

“Commission” means the United States
Securities and Exchange Commission.

 

“Common
Stock” means the common stock of the Company, par value $0.0001 per share, and any other class of securities into which
such securities may hereafter be reclassified or changed.

 

     

     

    

 

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

 

“Consent”
means any consent, approval, waiver, authorization or Permit of, or written notice to or declaration or filing with any Governmental
Authority or any other Person.

 

“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.

 

“Control”
of a Person means the possession, directly or indirectly, of the power to direct or cause the direction of the management and
policies of such Person, whether through the ownership of voting securities, by contract, or otherwise. “Controlled”,
“Controlling” and “under common Control with” have correlative meanings. Without limiting the foregoing
a Person (the “Controlled Person”) shall be deemed Controlled by (a) any other Person (the “10% Owner”)
(i) owning beneficially, as meant in Rule 13d-3 under the Exchange Act, securities entitling such Person to cast ten percent (10%)
or more of the votes for election of directors or equivalent governing authority of the Controlled Person or (ii) entitled to
be allocated or receive ten percent (10%) or more of the profits, losses, or distributions of the Controlled Person; (b) an officer,
director, general partner, partner (other than a limited partner), manager, or member (other than a member having no management
authority that is not a 10% Owner) of the Controlled Person; or (c) a spouse, parent, lineal descendant, sibling, aunt, uncle,
niece, nephew, mother-in-law, father-in-law, sister-in-law, or brother-in-law of an Affiliate of the Controlled Person or a trust
for the benefit of an Affiliate of the Controlled Person or of which an Affiliate of the Controlled Person is a trustee.

 

“Conversion”
means the statutory conversion of Stellar from a Republic of Marshall Islands corporation into a Delaware Corporation immediately
prior to the Closing and the closing of the Merger.

 

“Conversion
Price” shall have the meaning ascribed to such term in the Certificate of Designations for the Preferred Stock.

 

“Conversion
Shares” shall have the meaning ascribed to such term in the Certificate of Designations.

 

“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.

 

“Escrow
Agent” means Continental Stock Transfer & Trust Company, with a mailing address of 1 State Street, 30th Floor,
New York, NY 10004 and a phone number of (212) 509-4000.

 

“Escrow
Agreement” means the escrow agreement entered into prior to the date hereof, by and among the Company and the Escrow Agent
pursuant to which the Purchasers shall deposit Subscription Amounts with the Escrow Agent to be applied to the transactions contemplated
hereunder.

 

“Exchange
Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

 

“Federal
Reserve” shall have the meaning ascribed to such term in Section 3.1(gg).

 

    2

     

    

 

“Financial Statements”
shall have the meaning ascribed to such term in Section 3.1(l).

 

“Form 8-K Filing” shall have the meaning ascribed
to such term in Section 4.18.

 

“GAAP” means United States generally accepted accounting principles.

 

“Governmental
Authority” means any federal, state, local, foreign or other governmental, quasi-governmental or administrative body, instrumentality,
department or agency, court, tribunal, administrative hearing body, arbitration panel, commission, or other similar dispute-resolving
panel or body.

 

“IPO
Prospectus” means the final prospectus of the Company, dated as of August 18, 2016 and filed with the Commission (File No.
333-224227) on August 19, 2016.

 

“Indebtedness”
shall have the meaning ascribed to such term in Section 3.1(t).

 

“Insolvent”
means, (I) with respect to the Company and its Subsidiaries, on a consolidated basis, (i) 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), (ii) 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 (iii) 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, (i) 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, (ii) 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 (iii) 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.

 

“Intellectual
Property Rights” means trademarks, trade names, service marks, service mark registrations, service names, original works
of authorship, patents, patent rights, copyrights, original works, inventions, licenses, approvals, governmental authorizations,
trade secrets and other intellectual property rights and all applications and registrations therefor.

 

“Law”
means any federal, state, local, municipal, foreign or other law, statute, legislation, principle of common law, ordinance, code,
edict, decree, proclamation, treaty, convention, rule, regulation, directive, requirement, writ, injunction, settlement, Order
or Consent that is or has been issued, enacted, adopted, passed, approved, promulgated, made, implemented or otherwise put into
effect by or under the authority of any Governmental Authority.

 

“Legend
Removal Date” shall have the meaning ascribed to such term in Section 4.1(c).

 

“Liens”
means any mortgage, pledge, security interest, attachment, right of first refusal, option, proxy, voting trust, encumbrance, lien
or charge of any kind (including any conditional sale or other title retention agreement or lease in the nature thereof), restriction
(whether on voting, sale, transfer, disposition or otherwise), any subordination arrangement in favor of another Person, or any
filing or agreement to file a financing statement as debtor under the Uniform Commercial Code or any similar Law, but shall exclude
licenses of intellectual property.

 

“Material
Adverse Effect” shall have the meaning assigned to such term in Section 2.4.

 

“Maximum Rate” shall have the meaning
ascribed to such term in Section 5.17.

 

“Merger”
means the proposed merger of a wholly owned subsidiary of the Company with and into Phunware, pursuant to the Merger Agreement.

 

“Merger
Agreement” means the agreement and plan of merger dated as of February 27, 2018, as amended, among the Company, Phunware
and certain other parties.

 

    3

     

    

 

“Net Short Position” shall
have the meaning ascribed to such term in Section 4.8.

 

“Order”
means any order, decree, ruling, judgment, injunction, writ, determination, binding decision, verdict, judicial award or other
action that is or has been made, entered, rendered, or otherwise put into effect by or under the authority of any Governmental
Authority.

 

“Permit”
means all federal, state, local or foreign or other third-party permits, grants, easements, consents, approvals, authorizations,
exemptions, licenses, franchises, concessions, ratifications, permissions, clearances, confirmations, endorsements, waivers, certifications,
designations, ratings, registrations, qualifications or orders of any Governmental Authority or any other Person.

 

“Person”
means an individual, corporation, partnership (including a general partnership, limited partnership or limited liability partnership),
limited liability company, association, trust or other entity or organization, including a government, domestic or foreign, or
political subdivision thereof, or an agency or instrumentality thereof.

 

“Phunware”
means Phunware Inc., a Delaware corporation.

 

“Preferred
Stock” means the 6,000 shares of the Company’s Series A Convertible Preferred Stock issued hereunder having the rights,
preferences and privileges set forth in the Certificate of Designation, in the form of Exhibit A hereto.

 

“Proceeding”
means an action, claim, suit, investigation or proceeding (including, without limitation, an informal investigation or partial
proceeding, such as a deposition), whether commenced or threatened.

 

“Registration
Rights Agreement” means the Registration Rights Agreement, in the form of Exhibit B attached hereto.

 

“Reporting
Period” shall have the meaning ascribed to such term in Section 4.13.

 

“Representatives”
means, with respect to any party, its Affiliates and the respective officers, directors, managers, employees, consultants, advisors,
agents and other legal representatives of such party and its Affiliates.

 

“Required
Approvals” shall have the meaning ascribed to such term in Section 3.1(d).

 

“Required
Minimum” means, as of any date, the maximum aggregate number of shares of Common Stock then issued or potentially issuable
in the future pursuant to the Transaction Documents, including any Conversion Shares, issuable upon conversion in full of the
Preferred Stock (including Conversion Shares issuable as payment of dividend on the Preferred Stock), ignoring any conversion
limits set forth therein, and assuming that the Conversion Price for the Preferred Stock is at all times on and after the date
of determination 50% of the then Conversion Price on the Trading Day immediately prior to the date of determination.

 

“Rule
144” means Rule 144 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from time
to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same effect as such Rule.

 

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

 

“SEC
Reports” means all reports, schedules, forms, statements and other documents required to be filed by the Company under the
Securities Act and the Exchange Act, including pursuant to Section 13(a) or 15(d) thereof.

 

“Securities”
means the Preferred Stock and the Conversion Shares.

 

    4

     

    

 

“Securities Act” means
the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

 

“Shareholder
Approval” means such approval as may be required by the applicable rules and regulations of the Nasdaq Stock Market (or
any successor entity) from the shareholders of the Company with respect to the transactions contemplated by the Transaction Documents,
including the issuance of all of the Securities in excess of 19.99% of the issued and outstanding Common Stock on the Closing
Date.

 

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

 

“Sponsor”
means (i) Astra Maritime Corp. and Dominium Investments Inc., each of which is a Republic of the Marshall Islands corporation
and a holding company with no operations, and each of which is an affiliate of Mr. Prokopios (Akis) Tsirigakis, who is the Company’s
Chairman of the Board as well as its co-Chief Executive Officer and President and (ii) Magellan Investments Corp. and Firmus Investments
Inc., each a Republic of the Marshall Islands corporation and a holding company with no operations, and each an affiliate of Mr.
George Syllantavos, who is the Company’s co-Chief Executive Officer, Chief Financial Officer, Secretary and also serves
as one of its directors.

 

“Sponsor
Shares” means 250,000 shares of Common Stock to be issued at Closing by the Sponsors to the Purchasers pursuant to the terms
of this Agreement.

 

“Sponsor
Transfer Agreement” means the agreement between the Sponsors and the Purchasers pursuant to which the Sponsors will transfer
upon Closing the Sponsor Shares.

 

“Sponsor
Warrants” means warrants to purchase 250,000 of Common Stock to be issued at Closing by the Sponsors to the Purchasers pursuant
to the terms of this Agreement.

 

“Stated
Value” means $1,000 per share of Preferred Stock.

 

“Subscription
Amount” means, as to the Purchaser, the aggregate amount to be paid for the Preferred Stock purchased hereunder as specified
below the Purchaser’s name on the signature page of this Agreement and next to the heading “Subscription Amount,”
in United States dollars and in immediately available funds.

 

“Subsidiary”
means all of the direct and indirect subsidiaries of the Company are set forth in the SEC Reports, including those acquired after
the Merger. If the Company has no subsidiaries, all other references to the Subsidiaries or any of them in the Transaction Documents
shall be disregarded.

 

“Trading
Day” means a day on which the principal Trading Market is open for trading.

 

“Trading
Market” means any of the following markets or exchanges on which the Common Stock is listed or quoted for trading on the
date in question: the NYSE American; the Nasdaq Capital Market; the Nasdaq Global Market; the Nasdaq Global Select Market; the
New York Stock Exchange; OTC Markets or the OTC Bulletin Board (or any successors to any of the foregoing).

 

“Transaction
Documents” means this Agreement, the Certificate of Designations, the shares of Preferred Stock, the Escrow Agreement, the
Registration Rights Agreement and all exhibits and schedules thereto and hereto and any other documents or agreements executed
in connection with the transactions contemplated hereunder.

 

“Transfer
Agent” means Continental Stock Transfer & Trust Company, the current transfer agent of the Company, with a mailing address
of 1 State Street, 30th Floor, New York, NY 10004 and a phone number of (212) 509-4000, and any successor transfer
agent of the Company.

 

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ARTICLE
II.

PURCHASE
AND SALE

 

2.1 Purchase;
Escrow.  On the Closing Date, upon the terms and subject to the conditions set forth herein, substantially concurrent
with the execution and delivery of this Agreement by the parties hereto, the Purchasers will purchase, severally and
not jointly, an aggregate of up to Six Million Dollars ($6,000,000) of securities comprised of an aggregate of Six
Thousand (6,000) shares of Preferred Stock at a purchase price of $1,000 per share of Preferred Stock, with an aggregate
Stated Value for each Purchaser equal to such Purchaser’s Preferred Stock Subscription Amount as set forth on the
signature page hereto executed by such Purchaser. The purchase will be completed in a single tranche as provided herein. The
Preferred Stock and the shares of Common Stock issuable upon conversion are collectively referred to as (the
“Securities”). Each Purchaser shall deliver to the Escrow Agent, via wire transfer, immediately available funds
equal to the Purchaser’s Preferred Stock Subscription Amount for the Preferred Stock as set forth on the signature page
hereto executed by the Purchaser.

 

2.2 Closing.
Subject to the satisfaction of the covenants and conditions, on the Closing Date, each Purchaser shall deliver instructions
to the Escrow Agent to release the Purchaser’s Preferred Stock Subscription Amount for the Preferred Stock, and the
Company shall deliver to each Purchaser the number of shares of Preferred Stock the Purchaser has subscribed for as set forth
on the signature pages hereto executed by such Purchaser, and the Company and each Purchaser shall deliver the other
items set forth in Section 2.3 deliverable at the Closing. Upon satisfaction of the covenants and conditions set forth in
Sections 2.3 and 2.4 for Closing, such Closing shall occur at the offices of Ellenoff Grossman & Schole, LLP or such
other location as the parties shall mutually agree, and may by agreement be undertaken remotely by electronic exchange of
Closing documentation.

 

2.3
Deliveries. 

 

a)
On or prior to the Closing Date (except as noted), the Company shall deliver or cause to be delivered to each Purchaser the
following:

 

i.
this Agreement duly executed by the Company;

 

ii.
the Registration Rights Agreement duly executed by the Company;

 

iii.
the Sponsor Transfer Agreement, duly executed by the Sponsor and the Sponsor Shares and Sponsor Warrants, duly endorsed for transfer;

 

iv.
a certificate evidencing a number of shares of Preferred Stock equal to such Purchaser’s Preferred Stock Subscription Amount
divided by the Stated Value, registered in the name of such Purchaser;

 

v.
an opinion of counsel to the Company in form and substance satisfactory to the Purchasers;

 

vi.
an officer’s certificate in form and substance satisfactory to the Purchasers; and

 

vii.
a secretary’s certificate in form and substance satisfactory to the Purchasers, including “as filed” copies
of the Certificate of Incorporation, Certificate of Designation, Certificate of Conversion and the Certificate of Merger.

 

b)
On or prior to the Closing Date, the Purchaser shall deliver or cause to be delivered to the Company or the Escrow Agent, as
applicable, the following:

 

i.
this Agreement duly executed by the Purchaser;

 

ii.
to the Escrow Agent, the Purchaser’s Subscription Amount by wire transfer to the account specified in the Escrow Agreement;

 

iii.
the Sponsor Transfer Agreement, as agreed and acknowledged by the Purchaser; and

 

iv. the Registration Rights Agreement
duly executed by the Purchasers.

 

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2.4
Closing Conditions. 

 

a)
The obligations of the Company hereunder in connection with the Closing are subject to the following conditions being
met:

 

i.
the accuracy in all material respects as at Closing Date of the representations and warranties of the Purchaser contained herein
(unless as of a specific date therein in which case they shall be accurate as of such date);

 

ii.
the consummation of the Conversion and filing of the Certificate of Designations shall have occurred;

 

iii.
the Certificate of Merger shall have been filed with the Secretary of State of the State of Delaware in accordance with the Merger
Agreement with an effective time of no later than one hour after the Closing; and

 

iv.
the delivery by the Purchaser of the items set forth in Section 2.3(b) of this Agreement.

 

b)
The respective obligations of each Purchaser hereunder in connection with the Closing are subject to the following conditions
being met:

 

i.
the accuracy in all material respects as at Closing Date of the representations and warranties of the Company contained herein
(unless as of a specific date therein in which case they shall be accurate as of such date);

 

ii.
there is no “Material Adverse Effect” (as such term is defined in the Merger Agreement) with respect to the Company
or Phunware since the date of this Agreement which is continuing and uncured;

 

iii.
the consummation of the Conversion and filing of the Certificate of Designations shall have occurred and the requisite vote of
the shareholders of the Company and Phunware for approval of the Merger shall have been obtained;

 

iv.
the Certificate of Merger shall have been filed with the Secretary of State of the State of Delaware in accordance with the Merger
Agreement with an effective time of no later than one hour after the Closing;

 

v.
the execution and delivery by the Sponsors of the Sponsor Transfer Agreement;

and

 

vi.
the delivery by the Company of the items set forth in Section 2.3(a) of this Agreement.

 

    7

     

    

 

ARTICLE
III.

REPRESENTATIONS
AND WARRANTIES

 

3.1 Representations
and Warranties of the Company. Except as set forth in the SEC Reports, the Company hereby makes the
following representations and warranties to the Purchaser as of the Closing Date:

 

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

 

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

 

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

 

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d)
Filings, Consents and Approvals.  The Company is not required to obtain any consent, waiver, authorization or order of,
give any notice to, or make any filing or registration with, any court or other federal, state, local or other Governmental Authority
or other Person in connection with the execution, delivery and performance by the Company of the Transaction Documents, other
than: (i) the notice and/or application(s) to each applicable Trading Market for the issuance and sale of the Securities and the
listing of the Conversion Shares for trading thereon in the time and manner required thereby; (ii) the filing of Form D with the
Commission and such filings as are required to be made under applicable state securities laws and (iii), if required pursuant
to Section 4.7(d), Shareholder Approval (collectively, the “Required Approvals”). All consents, authorizations,
orders, filings and registrations which the Company is required to obtain at or prior to the Closing have been 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 from obtaining or effecting any of the registration, application or filings contemplated by the Transaction
Documents. Except as disclosed in the SEC Reports, the Company is not in violation of the requirements of the Trading 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.

 

e)
Acknowledgment Regarding Purchaser’s Purchase of Securities.  The Company acknowledges and agrees that each Purchaser
is acting solely in the capacity of an arm’s length purchaser with respect to the Transaction Documents and the transactions
contemplated hereby and thereby and that no Purchaser is (i) an officer or director of the Company or any of its Subsidiaries,
(ii) an Affiliate 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 Exchange Act. The Company further acknowledges
that no Purchaser 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 Purchaser
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 Purchaser’s purchase of the Securities. The Company further represents to each
Purchaser that the Company’s decision to enter into the Transaction Documents has been based solely on the independent evaluation
by the Company and its representatives.

 

f)
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 cause this offering of the Securities to be integrated with prior offerings by the Company for purposes
of (i) the Securities Act which would require the registration of the Preferred Stock or the Conversion Shares under the Securities
Act, or (ii) any applicable shareholder approval provisions of any Trading Market on which any of the securities of the Company
are listed or designated. None of the Company, its Subsidiaries, their Affiliates nor any Person acting on their behalf will take
any action or steps that would cause the offering of any of the Securities to be integrated with other offerings of securities
of the Company.

 

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

 

    9

     

    

 

h)
Issuance of the Securities.  The Securities are duly authorized and their issuance has been authorized, when issued and
paid for in accordance with the applicable Transaction Documents, will be duly and validly issued, fully paid and nonassessable,
free and clear of all Liens imposed by the Company other than restrictions on transfer provided for in the Transaction Documents.
The Conversion Shares, when issued in accordance with the terms of the Transaction Documents, will be validly issued, fully paid
and nonassessable, free and clear of all Liens imposed by the Company other than restrictions on transfer provided for in the
Transaction Documents. The Company has reserved from its duly authorized capital stock a number of shares of Common Stock for
issuance of the Conversion Shares at least equal to 100% of the Required Minimum on the date hereof. The Sponsor Shares, when
delivered at Closing, will be validly issued, fully paid and nonassessable, free and clear of all Liens other than restrictions
on transfer provided for in the Transaction Documents. The shares of Common Stock issuable upon exercise of the Sponsor Warrants,
when issued in accordance with the terms of the Sponsor Warrants, will be validly issued, fully paid and nonassessable, free and
clear of all Liens other than restrictions on transfer provided for in the Transaction Documents.

 

i)
Certain Fees.  Except as set forth on Schedule 3.1(i), no brokerage or finder’s fees or commissions are or
will be payable by the Company or any of its Subsidiaries to any broker, financial advisor or consultant, finder, placement agent,
investment banker, bank or other Person with respect to the transactions contemplated by the Transaction Documents.

 

j)
Private Placement.  Assuming the accuracy of each Purchaser’s representations and warranties set forth in Section
3.2, no registration under the Securities Act is required for the offer and sale of the Securities by the Company to the Purchaser
as contemplated hereby. The issuance and sale of the Securities hereunder does not contravene the rules and regulations of the
Trading Market.

 

k)
SEC Reports; Financial Statements.  During the two (2) years prior to the date hereof, or for as long as the Company has
had reporting obligations with the Commission under the Exchange Act, the Company has filed all SEC Reports with the Commission
pursuant to the reporting requirements of the Securities Act and the Exchange Act on a timely basis or has received a valid extension
of such time of filing and has filed any such SEC Reports prior to the expiration of any such extension. True, correct and complete
copies of each of the SEC Reports are available on the EDGAR system. As of their respective dates, the SEC Reports complied in
all material respects with the requirements of the Exchange Act and the rules and regulations of the Commission promulgated thereunder
applicable to the SEC Reports, and none of the SEC Reports, at the time they were filed with the Commission, 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 Reports complied in all material respects with applicable accounting
requirements and the published rules and regulations of the Commission with respect thereto as in effect as of the time of filing.
Such financial statements have been prepared in accordance with 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). No other information provided by or on behalf of the Company to any of the Purchasers
which is not included in the SEC Reports 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 Reports (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 Commission. 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.

 

    10

     

    

 

l)
Absence of Certain Changes.  Since the date of the Company’s most recent audited financial statements contained in
a Form 10-K, except as disclosed in the SEC Reports filed subsequent to such 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 material 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), 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.

 

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 Commission 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 Purchaser’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 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 Trading
Market and has no knowledge of any facts or circumstances that could reasonably lead to delisting or suspension of the Common
Stock by the Trading Market in the foreseeable future. Since January 1, 2018, (i) the Common Stock has been listed or designated
for quotation on the Trading Market, (ii) trading in the Common Stock has not been suspended by the Commission or the Trading
Market and (iii) the Company has received no communication, written or oral, from the Commission or the Trading Market regarding
the suspension or delisting of the Common Stock from the Trading 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.

 

    11

     

    

 

o)
Foreign Corrupt Practices.  Neither the Company nor any of its Subsidiaries nor, to the knowledge of the Company or any
Subsidiary, any director, officer, agent, employee or other Person acting on behalf of the Company or any of its Subsidiaries
has, in the course of its actions for, or on behalf of, the Company or any of its Subsidiaries (i) used any corporate funds for
any unlawful contribution, gift, entertainment or other unlawful expenses relating to political activity; (ii) made any direct
or indirect unlawful payment to any foreign or domestic government official or employee from corporate funds; (iii) violated or
is in violation of, in any material respect, any provision of the U.S. Foreign Corrupt Practices Act of 1977, as amended; or (iv)
made any unlawful bribe, rebate, payoff, influence payment, kickback or other unlawful payment to any foreign or domestic government
official or employee.

 

p)
Sarbanes-Oxley Act.  The Company and each Subsidiary is in compliance with all applicable requirements of the Sarbanes-Oxley
Act of 2002, and all applicable rules and regulations promulgated by the Commission thereunder that are effective as of the date
hereof and as of the Closing Date.

 

q)
Transactions with Affiliates.  None of the officers or directors of the Company or any of its Subsidiaries and, to the knowledge
of the Company, none of the employees or affiliates of the Company or any of its Subsidiaries is presently a party to any transaction
with the Company or any of its Subsidiaries (other than for ordinary course services as employees, officers or directors), including
any contract, agreement or other arrangement providing for the furnishing of services to or by, providing for rental of real or
personal property to or from, or otherwise requiring payments to or from any such officer, director or employee, affiliate or,
to the knowledge of the Company or any of its Subsidiaries, any corporation, partnership, trust or other Person in which any such
officer, director, employee or affiliate has a substantial interest or is an employee, officer, director, affiliate, trustee or
partner, in each case other than for (i) payment of salary or consulting fees for services rendered, (ii) reimbursement for expenses
incurred on behalf of the Company and (iii) other employee benefits, including stock option agreements under any stock option
plan of the Company.

 

r)
Equity Capitalization.  As of the date hereof, the authorized capital stock of the Company consists of (i) 200,000,000 shares
of Common Stock, of which, 3,961,287 are issued and outstanding and, except as disclosed in the SEC Reports, no shares are reserved
for issuance pursuant to securities (other than the Conversion Shares) exercisable or exchangeable for, or convertible into, shares
of Common Stock and (ii) 15,000,000 shares of preferred stock, of which none are issued and outstanding. All of such outstanding
shares are duly authorized and have been, or upon issuance will be, validly issued and are fully paid and non-assessable. 1,938,523
shares of the Company’s issued and outstanding Common Stock on the date hereof are owned by Persons who are Affiliates (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 best of the Company’s knowledge, no Person owns 10% or more of the Company’s
issued and outstanding shares of Common Stock without conceding that such identified Person is a 10% stockholder for purposes
of federal securities laws). (i) None of the Company’s or any Subsidiary’s capital stock is subject to preemptive
rights or any other similar rights or any Liens suffered or permitted by the Company or any Subsidiary; (ii) there are no outstanding
options, warrants, scrip, rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities
or rights convertible into, or exercisable or exchangeable for, any capital stock of the Company or 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 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 capital stock of the Company or any of its Subsidiaries; (iii) there are no outstanding debt securities, notes, credit
agreements, credit facilities or other agreements, documents or instruments evidencing material Indebtedness of the Company or
any of its Subsidiaries or by which the Company or any of its Subsidiaries is or may become bound; (iv) there are no financing
statements securing obligations in any amounts filed in connection with the Company or any of its Subsidiaries; (v) 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 Securities Act (except pursuant to this Agreement); (vi) 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; (vii) there are no securities or instruments containing anti-dilution or similar provisions
that will be triggered by the issuance of the Securities; (viii) neither the Company nor any Subsidiary has any stock appreciation
rights or “phantom stock” plans or agreements or any similar plan or agreement; and (ix) neither the Company nor any
of its Subsidiaries have any liabilities or obligations required to be disclosed in the SEC Reports which are not so disclosed
in the SEC Reports, 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. The Company has furnished
to the Purchasers true, correct and complete copies of the Company’s Certificate of Incorporation, as amended and as in
effect on the date hereof, and the Company’s bylaws, as amended and as in effect on the date hereof.

 

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s)
Indebtedness and Other Contracts.  Neither the Company nor any of its Subsidiaries (i) have any outstanding Indebtedness
(as defined below), (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) 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
(iv) 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. For purposes of this Agreement: (x) “Indebtedness”
of any Person means, without duplication (A) all indebtedness for borrowed money (other than trade accounts payable incurred in
the ordinary course of business), (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.

 

t)
Litigation.  There is no action, suit, proceeding, inquiry or investigation before or by the Trading 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, which would have a Material
Adverse Effect. 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 Commission or any Governmental
Entity involving the Company, any of its Subsidiaries or any current or former director or officer of the Company or any of its
Subsidiaries. The Commission has not issued any stop order or other order suspending the effectiveness of any registration statement
filed by the Company under the Securities Act or the Exchange Act.

 

u)
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 believes that its and its Subsidiaries’ relations with their respective employees
are good. No executive officer (as defined in Rule 501(f) promulgated under the Securities 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. 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.

 

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v)
Title.  The Company and its Subsidiaries have good and marketable title in fee simple to all real property and have good
and marketable title to all personal property owned by them which is material to the business of the Company and its Subsidiaries,
in each case, free and clear of all Liens except for Permitted Liens (as defined in the Certificate of Designations) and such
other Liens as do not materially affect the value of such property and do not materially interfere with the use made and proposed
to be made of such property by the Company and any of its Subsidiaries. Any real property and facilities 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.

 

w)
Intellectual Property Rights.  The Company and its Subsidiaries own or possess adequate rights or licenses to use all Intellectual
Property Rights necessary to conduct their respective businesses as now conducted and as presently proposed to be conducted. None
of the Company’s or its Subsidiaries’ Intellectual Property Rights have expired, terminated or been abandoned, or
are expected to expire, terminate or be abandoned, within three years from the date of this Agreement. The Company has no knowledge
of any infringement by the Company or any of 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 their 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.

 

x)
Environmental Laws.  The Company and its Subsidiaries (i) are in compliance with any and all Environmental Laws (as defined
below), (ii) have received all permits, licenses or other approvals required of them under applicable Environmental Laws to conduct
their respective businesses and (iii) are in compliance with all terms and conditions of any such permit, license or approval
where, in each of the foregoing clauses (i), (ii) and (iii), the failure to so comply could be reasonably expected to have, individually
or in the aggregate, a Material Adverse Effect.

 

y)
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.

 

z)
Tax Status.  The Company and each of its Subsidiaries (i) has 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 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 U.S. Internal Revenue Code of 1986, as amended.

 

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aa) 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 Exchange Act) that is designed to provide reasonable
assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes
in accordance with GAAP, 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 Exchange Act) that are designed to provide reasonable assurance that information
required to be disclosed by the Company in the reports that it files or submits under the Exchange Act is recorded,
processed, summarized and reported, within the time periods specified in the rules and forms of the Commission, 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 Exchange 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 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.

 

bb) 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 Exchange Act filings and is not so disclosed or that otherwise could be reasonably likely to have a Material Adverse
Effect.

 

cc) 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, or (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.

 

dd) Registration
Eligibility.  The Company is eligible to register the issuance and sale of the Securities using Form S-3 promulgated under
the Securities Act.

 

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

 

ff) Bank
Holding Company Act.  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 equity 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.

 

gg) 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.

 

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

 

ii) Illegal
or Unauthorized Payments; Political Contributions.  Neither the Company nor any of its Subsidiaries nor, to
the Company’s knowledge, 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, (a) as a kickback or bribe to any Person or (b) 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.

 

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jj) 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, without limitation, (i) Executive Order 13224 of September 23, 2001 entitled, “Blocking
Property and Prohibiting Transactions With Persons Who Commit, Threaten to Commit, or Support Terrorism” (66 Fed. Reg.
49079 (2001)); and (ii) any regulations contained in 31 CFR, Subtitle B, Chapter V.

 

kk) Registration
Rights.  No holder of securities of the Company has rights to the registration of any securities of the Company because of
the issuance of the Securities hereunder or otherwise that could expose the Company to material liability or any Purchaser to
any liability or that could impair the Company’s ability to consummate the issuance and sale of the Securities in
the manner, and at the times, contemplated hereby, which rights have not been waived by the holder thereof as of the date
hereof.

 

ll) Stock
Option Plans.  Each equity award granted by the Company was granted (i) in accordance with the terms of the
applicable equity incentive plan or stock option plan of the Company and (ii) each option was granted 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.

 

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

 

nn) Management.
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);

 

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		(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:

 

(A) 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;

 

(B)
engaging in any type of business practice; or

 

(C)
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;

 

		(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 Commission or other authority to have violated any securities
law, regulation or decree and the judgment in such civil action or finding by the Commission 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.

 

3.2 Representations
and Warranties of the Purchaser.  Each Purchaser, for itself and for no other Purchaser, hereby represents and warrants as
of the date hereof and as of the Closing Date to the Company as follows (unless as of a specific date therein in which case
they shall be accurate as of such date):

 

a)
Organization; Authority.  The Purchaser is either an individual or an entity duly incorporated or formed, validly existing
and in good standing under the laws of the jurisdiction of its incorporation or formation with full right, corporate, partnership,
limited liability company or similar power and authority to enter into and to consummate the transactions contemplated by the
Transaction Documents and otherwise to carry out its obligations hereunder and thereunder. The execution and delivery of the Transaction
Documents and performance by the Purchaser of the transactions contemplated by the Transaction Documents have been duly authorized
by all necessary corporate, partnership, limited liability company or similar action, as applicable, on the part of the Purchaser.
Each Transaction Document to which it is a party has been duly executed by the Purchaser, and when delivered by the Purchaser
in accordance with the terms hereof, will constitute the valid and legally binding obligation of the Purchaser, enforceable against
it in accordance with its terms, except: (i) as limited by general equitable principles and applicable bankruptcy, insolvency,
reorganization, moratorium and other laws of general application affecting enforcement of creditors’ rights generally; (ii)
as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies; and (iii)
insofar as indemnification and contribution provisions may be limited by applicable law.

 

b)
Own Account.  The Purchaser understands that the Securities are “restricted securities” and have not been registered
under the Securities Act or any applicable state securities law and is acquiring the Securities as principal for its own account
and not with a view to or for distributing or reselling such Securities or any part thereof in violation of the Securities Act
or any applicable state securities law, has no present intention of distributing any of such Securities in violation of the Securities
Act or any applicable state securities law and has no direct or indirect arrangement or understandings with any other persons
to distribute or regarding the distribution of such Securities in violation of the Securities Act or any applicable state securities
law (this representation and warranty not limiting the Purchaser’s right to sell the Securities in compliance with applicable
federal and state securities laws). The Purchaser is acquiring the Securities hereunder in the ordinary course of its business.

 

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c)
Purchaser Status.  At the time the Purchaser was offered the Securities, it was, and as of the date hereof it is, and on
each date on which it converts the Preferred Stock it will be an “accredited investor” as defined in Rule 501(a)(1),
(a)(2), (a)(3), (a)(7) or (a)(8) under the Securities Act.

 

d)
Experience of the Purchaser.  The Purchaser, either alone or together with its representatives, has such knowledge, sophistication
and experience in business and financial matters so as to be capable of evaluating the merits and risks of the prospective investment
in the Securities, and has so evaluated the merits and risks of such investment. The Purchaser is able to bear the economic risk
of an investment in the Securities and, at the present time, is able to afford a complete loss of such investment.

 

e)
General Solicitation.  The Purchaser is not purchasing the Securities as a result of any advertisement, article, notice
or other communication regarding the Securities published in any newspaper, magazine or similar media or broadcast over television
or radio or presented at any seminar or any other general solicitation or general advertisement.

 

f)
Certain Transactions and Confidentiality.  Other than consummating the transactions contemplated hereunder, the Purchaser
has not directly or indirectly, nor has any Person acting on behalf of or pursuant to any understanding with the Purchaser, executed
any purchases or sales, including Short Sales, of the securities of the Company during the period commencing as of the time that
the Purchaser first received a term sheet (written or oral) from the Company or any other Person representing the Company setting
forth the material terms of the transactions contemplated hereunder and ending immediately prior to the execution hereof. Notwithstanding
the foregoing, in the case of a Purchaser that is a multi-managed investment vehicle whereby separate portfolio managers manage
separate portions of the Purchaser’s assets and the portfolio managers have no direct knowledge of the investment decisions
made by the portfolio managers managing other portions of the Purchaser’s assets, the representation set forth above shall
only apply with respect to the portion of assets managed by the portfolio manager that made the investment decision to purchase
the Securities covered by this Agreement. Other than to other Persons party to this Agreement, the Purchaser has maintained the
confidentiality of all disclosures made to it in connection with this transaction (including the existence and terms of this transaction).

 

g)
Special Purpose Acquisition Companies.  The Purchaser acknowledges and agrees that the Company, as of prior to the Merger,
is a special purpose acquisition company.

 

The
Company acknowledges and agrees that the representations contained in Section 3.2 shall not modify, amend or affect the Purchaser’s
right to rely on the Company’s representations and warranties contained in this Agreement or any representations and warranties
contained in any other Transaction Document or any other document or instrument executed and/or delivered in connection with this
Agreement or the consummation of the transaction contemplated hereby.

 

ARTICLE
IV.

OTHER
AGREEMENTS OF THE PARTIES

 

4.1
Transfer Restrictions. 

 

a)
The Securities may only be disposed of in compliance with state and federal securities laws. In connection with any transfer
of Securities other than pursuant to an effective registration statement or Rule 144, to the Company or to an Affiliate of a
Purchaser or in connection with a pledge as contemplated in Section 4.1(b), the Company may require the transferor thereof to
provide to the Company an opinion of counsel selected by the transferor and reasonably acceptable to the Company, at the
Company’s sole expense in the form and substance of which opinion shall be reasonably satisfactory to the Company, to
the effect that such transfer does not require registration of such transferred Securities under the Securities Act. As a
condition of transfer, any such transferee shall agree in writing to be bound by the terms of this Agreement and shall have
the rights and obligations of a Purchaser under this Agreement.

 

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b)
The Purchaser agrees to the imprinting, so long as is required by this Section 4.1, of a legend
on any of the Securities in the following form:

 

[NEITHER]
THIS SECURITY [NOR THE SECURITIES INTO WHICH THIS SECURITY IS [CONVERTIBLE] HAS [NOT] BEEN REGISTERED WITH THE SECURITIES AND
EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES
ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN
EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT
SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS EVIDENCED
BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY.
THIS SECURITY [AND THE SECURITIES ISSUABLE UPON [CONVERSION] OF THIS SECURITY] MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN
ACCOUNT WITH A REGISTERED BROKER-DEALER OR OTHER LOAN WITH A FINANCIAL INSTITUTION THAT IS AN “ACCREDITED INVESTOR”
AS DEFINED IN RULE 501(a) UNDER THE SECURITIES ACT OR OTHER LOAN SECURED BY SUCH SECURITIES.

 

The
Company acknowledges and agrees that the Purchaser may from time to time pledge pursuant to a bona fide margin agreement with
a registered broker-dealer or grant a security interest in some or all of the Securities to a financial institution that is an
“accredited investor” as defined in Rule 501(a) under the Securities Act and who agrees to be bound by the provisions
of this Agreement and, if required under the terms of such arrangement, the Purchaser may transfer pledged or secured Securities
to the pledgees or secured parties. Such a pledge or transfer would not be subject to approval of the Company and no legal opinion
of legal counsel of the pledgee, secured party or pledgor shall be required in connection therewith. Further, no notice shall
be required of such pledge. At the Company’s expense, the Company will execute and deliver such reasonable documentation
as a pledgee or secured party of Securities may reasonably request in connection with a pledge or transfer of the Securities.

 

c)
Certificates evidencing the Conversion Shares shall not contain any legend (including the legend set forth in Section 4.1(b)
hereof): (i) while a registration statement covering the resale of such security is effective under the Securities Act; (ii)
following any sale of such Conversion Shares pursuant to Rule 144; (iii) if such Conversion Shares are eligible for sale
under Rule 144 (provided that the Purchaser and such Purchaser’s broker acknowledge in writing that the shares remain
“restricted securities” until such time as they are sold pursuant to an effective registration statement or
pursuant to Rule 144); or (iv) if such legend is not required under applicable requirements of the Securities Act (including
judicial interpretations and pronouncements issued by the staff of the Commission). The Company shall upon request of a
Purchaser and at the Company’s sole expense cause its counsel (or at the Purchaser’s option, counsel selected by
the Purchaser) to issue a legal opinion to the Transfer Agent promptly after any of the events described in (i)-(iv) in the
preceding sentence if required by the Transfer Agent to effect the removal of the legend hereunder (with a copy to the
applicable Purchaser and its broker). If all or any portion of any Preferred Stock is converted at a time when there is an
effective registration statement to cover the resale of the Conversion Shares or if such Conversion Shares may be sold under
Rule 144 (provided that the Purchaser and such Purchaser’s broker acknowledge in writing that the shares remain
“restricted securities” until such time as they are sold pursuant to an effective registration statement or
pursuant to Rule 144) or if such legend is not otherwise required under applicable requirements of the Securities Act
(including judicial interpretations and pronouncements issued by the staff of the Commission) then such Conversion Shares
shall be issued free of all legends. The Company agrees that following such time as such legend is no longer required under
this Section 4.1(c), it will, no later than two (2) Trading Days following the delivery by a Purchaser to the Company or the
Transfer Agent of a certificate representing Conversion Shares issued with a restrictive legend (such third
(3rd) Trading Day, the “Legend Removal Date”), instruct the Transfer Agent to deliver or cause to be
delivered to the Purchaser a certificate representing such shares that is free from all restrictive and other legends. The
Company may not make any notation on its records or give instructions to the Transfer Agent that enlarge the restrictions on
transfer set forth in this Section 4. Certificates for the Conversion Shares subject to legend removal hereunder shall be
transmitted by the Transfer Agent to the Purchaser by crediting the account of the Purchaser’s prime broker with the
Depository Trust Company System as directed by the Purchaser.

 

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4.2 Acknowledgment
of Dilution.  The Company acknowledges that the issuance of the Securities may result in dilution of the
outstanding shares of Common Stock, which dilution may be substantial under certain market conditions. The Company further
acknowledges that its obligations under the Transaction Documents, including, without limitation, its obligation to issue the
Conversion Shares pursuant to the Transaction Documents, are unconditional and absolute and not subject to any right of set
off, counterclaim, delay or reduction, regardless of the effect of any such dilution or any claim the Company may have
against the Purchaser and regardless of the dilutive effect that such issuance may have on the ownership of the other
stockholders of the Company.

 

4.3 Exchange
Act Registration.  The Company covenants to use commercially reasonable efforts (i) to maintain the registration of the
Common Stock under Section 12(b) or 12(g) of the Exchange Act and (ii) to timely file (or obtain extensions in
respect thereof and file within the applicable grace period) all reports required to be filed by the Company after the date
hereof pursuant to the Exchange Act.

 

4.4 Integration.
The Company shall not sell, offer for sale or solicit offers to buy or otherwise negotiate in respect of any security (as
defined in Section 2 of the Securities Act) that would be integrated with the offer or sale of the Securities in a manner
that would require the registration under the Securities Act of the sale of the Securities or that would be integrated with
the offer or sale of the Securities for purposes of the rules and regulations of any Trading Market such that it would
require shareholder approval prior to the closing of such other transaction unless shareholder approval is obtained before
the closing of such subsequent transaction.

 

4.5 Conversion
and Exercise Procedures.  The form of Notice of Conversion included in the Certificate of Designations sets forth the
totality of the procedures required of the Purchaser in order to convert such Preferred Stock. Without limiting the
preceding sentences, no ink-original Notice of Conversion shall be required, nor shall any medallion guarantee (or other type
of guarantee or notarization) of any Notice of Conversion form be required in order to convert the Preferred Stock. No
additional legal opinion or other information shall be required of the Purchaser to convert such Preferred Stock. The Company
shall honor conversions of any Preferred Stock, and shall deliver Conversion Shares in accordance with the terms, conditions
and time periods set forth in the Transaction Documents.

 

4.6 Material
Non-Public Information.  Except with respect to the material terms and conditions of the transactions contemplated by the
Transaction Documents, the Company covenants and agrees that neither it, nor any of its subsidiaries, nor any other
Person acting on its behalf, will provide the Purchaser or its agents or counsel with any information that the Company
believes constitutes material non-public information, unless prior thereto such information is disclosed to the public, or
the Purchaser shall have entered into a written agreement with the Company regarding the confidentiality and use of such
information. The Company understands and confirms that the Purchaser shall be relying on the foregoing covenant in effecting
transactions in securities of the Company.

 

4.7
Reservation and Listing of Securities. 

 

a)
The Company shall maintain a reserve from its duly authorized shares of Common Stock for issuance pursuant to the Transaction
Documents in such amount as may then be required to fulfill its obligations in full under the Transaction Documents.

 

b)
If, on any date, the number of authorized but unissued (and otherwise unreserved) shares of Common Stock is less than 100% of
the Required Minimum on such date, then the Board of Directors shall use commercially reasonable efforts to amend the Company’s
Articles of Incorporation (or successor organizational documents) to increase the number of authorized but unissued shares of
Common Stock to at least 100% of the Required Minimum at such time, as soon as reasonably possible and in any event not later
than the 150th day after such date.

 

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c)
The Company shall use commercially reasonably efforts to, if applicable: (i) in the time and manner required by the
principal Trading Market, prepare and file with such Trading Market an additional shares listing application or notification
covering a number of shares of Common Stock at least equal to the Required Minimum on the date of such application; (ii) take
all steps reasonably necessary to cause such shares of Common Stock to be approved for listing on such Trading Market as soon
as possible thereafter; (iii) provide to the Purchaser evidence of such listing; and (iv) maintain the listing of such Common
Stock on any date at least equal to the Required Minimum on such date on such Trading Market or another Trading
Market.

 

d)
If at any time the Purchaser determines in its reasonable discretion that Shareholder Approval. is necessary in order to
satisfy the requirements of the Trading Market, upon receipt of such written request, the Company shall use its reasonable
best efforts to promptly obtain such Shareholder Approval and approval of the Trading Market of the issuance of all shares of
Common Stock underlying the Securities without any limitation imposed by the Trading Market. If the Company does not obtain
Shareholder Approval at the first meeting, the Company shall call a meeting every six months thereafter to seek Shareholder
Approval until the earlier of the date Shareholder Approval is obtained or the Preferred Stock is no longer
outstanding.

 

4.8 Certain
Transactions and Confidentiality.  Each Purchaser covenants and agrees that neither it, nor any Affiliate acting on its
behalf or pursuant to any understanding with it will execute any Short Sales of the Common Stock or (ii) hedging
transaction which establishes a Net Short Position with respect to the Company’s Common Stock during the period
commencing with the execution of this Agreement and ending on the date that 100% of the Preferred Stock owned by such
Purchaser has been redeemed in accordance with the terms of the Certificate of Designations; provided that this provision
shall not prohibit any sales made where a corresponding Notice of Conversion is tendered to the Company and the shares
received upon such conversion are used to close out such sale. For purposes hereof, a “Net Short Position” by a
Purchaser means a position whereby such Purchaser has executed one or more sales of Common Stock that is marked as a short
sale (but not including any sale marked “short exempt”) and that is executed at a time when such Purchaser does
not have an equivalent offsetting long position in the Common Stock (or is deemed to have a long position hereunder or
otherwise in accordance with Regulation SHO under the Exchange Act); provided, further that no “short sale” shall
be deemed to exist as a result of any failure by the Company (or its agents) to deliver shares upon conversion of the
Preferred Stock, to such Purchaser converting such Preferred Stock. For purposes of determining whether a Purchaser has an
equivalent offsetting long position in the Common Stock, such Purchaser shall be deemed to hold “long” all Common
Stock that is either (i) then owned by such Purchaser, if any, or (ii) then issuable to such Purchaser as shares issuable
upon conversion of the Preferred Stock then held by such Purchaser, if any, (without regard to any limitations on conversion
or exercise set forth in the Preferred Stock). Notwithstanding the foregoing, nothing contained herein shall (without
implication that the contrary would otherwise be true) prohibit such Purchaser from selling “long” (as defined
under Rule 200 promulgated under Regulation SHO under the Exchange Act) the Securities or any other Common Stock then owned
by such Purchaser. For the avoidance of doubt, this Section 4.8 is applicable to each Purchaser individually, and not
collectively. For example, if Purchaser A still holds Securities but Purchaser B does not, only Purchaser A remains subject
to this Section 4.8, but Purchaser B does not.

 

4.9 Form
D; Blue Sky Filings.  The Company agrees to timely file a Form D with respect to the Securities as required under
Regulation D and to provide a copy thereof, promptly upon request of the Purchaser. The Company shall take such action as the
Company shall reasonably determine is necessary in order to obtain an exemption for, or to qualify the Securities for, sale
to the Purchaser at the Closing under applicable securities or “Blue Sky” laws of the states of the United
States, and shall provide evidence of such actions promptly upon request of the Purchaser.

 

4.10 Registration
Rights.  The Company hereby grants the registration rights to the Purchasers as set forth in the Registration Rights
Agreement.

 

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4.11 Indemnification.
(i) The Company and its successors and assigns shall indemnify and hold harmless each Purchaser, each holder of the
Securities, the officers, directors, members, partners, agents and employees (and any other individuals or entities with a
functionally equivalent role of a person holding such titles, notwithstanding a lack of such title or any other title) of
each of them, each individual or entity who controls each Purchaser or any such holder of the Securities (within the
meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) and the officers, directors, members,
stockholders, partners, agents and employees (and any other individuals or entities with a functionally equivalent role of a
person holding such titles, notwithstanding a lack of such title or any other title) of each such controlling individual or
entity (each, an “Indemnified Party”), to the fullest extent permitted by applicable law, from and against any
and all losses, claims, damages, liabilities, costs (including, without limitation, reasonable attorneys’ fees) and
expenses (collectively, “Indemnified Liabilities”), as incurred, 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 Indemnified Party
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 Indemnified Party 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 Purchaser pursuant to Section 4(18), or (D) the status of such Purchaser 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); provided, however,
that the indemnity contained in clause (iii) above shall not apply to any Indemnified Liabilities which directly and
primarily result from the fraud, gross negligence or willful misconduct of an Indemnified Party. 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.

 

(ii)
Promptly after receipt by an Indemnified Party under this Section 4.11 of notice of the commencement of any action or
proceeding (including any governmental action or proceeding) involving an Indemnified Liability, such Indemnified Party
shall, if a claim in respect thereof is to be made against the Company under this Section 4.11, deliver to the Company a
written notice of the commencement thereof, and the Company shall have the right to participate in, and, to the extent the
Company so desires, to assume control of the defense thereof with counsel mutually satisfactory to the Company and the
Indemnified Party; provided, however, that an Indemnified Party shall have the right to retain its own counsel with the fees
and expenses of such counsel to be paid by the Company if: (i) the Company has agreed in writing to pay such fees and
expenses; (ii) the Company shall have failed after a reasonable period of time to assume the defense of such Indemnified
Liability and to employ counsel reasonably satisfactory to such Indemnified Party in any such Indemnified Liability; or (iii)
the named parties to any such Indemnified Liability (including any impleaded parties) include both such Indemnified Party and
the Company, and such Indemnified Party shall have been advised by counsel, in its reasonable opinion, that a material
conflict of interest on any material issue is likely to exist if the same counsel were to represent such Indemnified Party
and the Company (in which case, if such Indemnified Party notifies the Company in writing that it elects to employ separate
counsel at the expense of the Company, then the Company shall not have the right to assume the defense thereof and such
counsel shall be at the expense of the Company); provided further, that in the case of clauses (i), (ii) and (iii) above the
Company shall not be responsible for the reasonable fees and expenses of more than one (1) separate legal counsel for such
Indemnified Party. The Indemnified Party shall reasonably cooperate with the Company in connection with any negotiation or
defense of any such action or Indemnified Liability by the Company and shall furnish to the Company all information
reasonably available to the Indemnified Party which relates to such action or Indemnified Liability. The Company shall keep
the Indemnified Party reasonably apprised at all times as to the status of the defense or any settlement negotiations with
respect thereto. The Company shall not be liable for any settlement of any action, claim or proceeding effected without its
prior written consent, provided, however, that the Company shall not unreasonably withhold, delay or condition its consent.
The Company shall not, without the prior written consent of the Indemnified Party, consent to entry of any judgment or enter
into any settlement or other compromise which does not include as an unconditional term thereof the giving by the claimant or
plaintiff to such Indemnified Party of a release from all liability in respect to such Indemnified Liability or litigation,
and such settlement shall not include any admission as to fault on the part of the Indemnified Party. Following
indemnification as provided for hereunder, the Company shall be subrogated to all rights of the Indemnified Party with
respect to all third parties, firms or corporations relating to the matter for which indemnification has been made. The
failure to deliver written notice to the Company within a reasonable time of the commencement of any such action shall not
relieve the Company of any liability to the Indemnified Party under this Section 4.11, except to the extent that the Company
is materially and adversely prejudiced in its ability to defend such action.

 

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(iii) The indemnification required by this Section 4.11 shall be made by periodic payments of the amount thereof during the course
of the investigation or defense, as and when bills are received or Indemnified Liabilities are incurred.

 

(iv)
The indemnity agreement contained herein shall be in addition to (A) any cause of action or similar right of the Indemnified Party
against the Company or others, and (B) any liabilities the Company may be subject to pursuant to the law.

 

4.12 Trust
Account Waiver.  Each Purchaser understands that, as described in the IPO Prospectus, the Company has established a trust
account (the “Trust Account”) containing the proceeds of its initial public offering (the “IPO”) and
the overallotment shares acquired by its underwriters and from certain private placements occurring simultaneously with
the IPO (including interest accrued from time to time thereon) for the benefit of the Company’s public stockholders and
underwriters (the “Public Stockholders”), and that, except as otherwise described in the IPO Prospectus, the
Company may disburse monies from the Trust Account only: (a) to the Public Stockholders in the event they elect to redeem
their Common Stock in connection with the consummation of the Company’s initial business combination (as such term is
used in the IPO Prospectus) (“Business Combination”) or in connection with an extension of the deadline to
consummate a Business Combination, (b) to the Public Stockholders if the Company fails to consummate its Business Combination
by December 26, 2018 (as amended from the original deadline set forth in the IPO Prospectus and the Company’s
organizational documents), (c) with respect to any interest earned on the amounts held in the Trust Account, as necessary to
pay income or other tax obligations and to meet working capital requirements, and (d) to the Company after or concurrently
with the consummation of its Business Combination. For and in consideration of the Company entering into this Agreement and
for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, such Purchaser hereby
agrees on behalf of itself and its Affiliates that, notwithstanding anything to the contrary in this Agreement, neither such
Purchaser nor its Affiliates do now or shall at any time hereafter have any right, title, interest or claim of any kind in or
to any monies in the Trust Account or distributions therefrom, or make any claim against the Trust Account (including any
distributions therefrom), regardless of whether such claim arises as a result of, in connection with or relating in any way
to, this agreement or any proposed or actual business relationship between the Company or its Representatives, on the one
hand, and such Purchaser or its Representatives, on the other hand, or any other matter, and regardless of whether such claim
arises based on contract, tort, equity or any other theory of legal liability (“Released Claims”). Such Purchaser
on behalf of itself and its Affiliates hereby irrevocably waives any Released Claims that such Purchaser or its
Affiliates may have against the Trust Account (including any distributions therefrom) now or in the future as a result of, or
arising out of, any negotiations, contracts or agreements with the Company or its Representatives and will not seek recourse
against the Trust Account (including any distributions therefrom) for any reason whatsoever. Such Purchaser agrees and
acknowledges that such irrevocable waiver is material to this Agreement and specifically relied upon by the Company and its
Affiliates to induce the Company to enter in this Agreement, and such Purchaser further intends and understands such waiver
to be valid, binding and enforceable against such Purchaser and each of its Affiliates under applicable law. Notwithstanding
the foregoing, this Section 4.12 shall not affect any rights of a Purchaser or its Affiliates as a Public Stockholder to
receive distributions from the Trust Account in its capacity as a Public Stockholder. Notwithstanding anything to the
contrary contained in this Agreement, this Section 4.12 shall survive termination or expiration of this Agreement for any
reason.

 

4.13 Company
Escrow.  The Company covenants and agrees to open an escrow account with a bank or institution that is
reasonably acceptable to the Purchasers within three (3) Business Days after the date hereof. The Company further covenants
and agrees that immediately after opening such escrow account, the Company shall deposit $5,500,000 of the proceeds of this
offering into the escrow account and shall instruct the escrow agent in an escrow agreement to require the signature of both
the Company and Dominion Capital LLC to release funds from such escrow account. Prior to executing an escrow agreement for
the escrow account, the Company shall permit a representative of Dominion Capital LLC to review and comment on the escrow
agreement.

 

4.14 Reporting
Status.  Until the date on which no Securities are outstanding (the “Reporting Period”), the Company shall
timely file (or obtain an extension in respect thereof and file within such extension period) all reports required to
be filed with the Commission pursuant to the Exchange Act, and the Company shall not terminate its status as an issuer
required to file reports under the Exchange Act even if the Exchange Act or the rules and regulations thereunder would no
longer require such reports or would otherwise permit such termination.

 

    23

     

    

 

4.15
Use of Proceeds. The Company will use the proceeds from the sale of the Securities for general corporate purposes, but
not, directly or indirectly, for (i) the satisfaction of any Indebtedness of the Company or any of its Subsidiaries (other than
payment of trade payables in the ordinary course of business), (ii) the redemption or repurchase of any securities of the Company
or any of its Subsidiaries (other than the Securities), (iii) the settlement of any outstanding litigation.

 

4.16 Financial
Information.  The Company agrees to send the following to each Purchaser during the Reporting Period, unless filed with
the Commission through EDGAR and are available to the public through the EDGAR system, (i) within two (2) Business Days
after the filing thereof with the Commission, 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 Securities Act, (ii) on the same day as the release thereof, facsimile
copies of all press releases issued by the Company or any of its Subsidiaries and (iii) 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.

 

4.17 Passive
Foreign Investment Company.  The Company shall conduct its business in such a manner as will ensure that the Company will
not be deemed to constitute a passive foreign investment company within the meaning of Section 1297 of the U.S.
Internal Revenue Code of 1986, as amended.

 

4.18 Disclosure
of Transactions and Other Material Information.  The Company shall, within the time required under the Exchange Act, 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 Exchange Act and attaching all the material Transaction Documents (including, without
limitation, this Agreement (including all attachments, the “Form 8-K Filing”). From and after the filing of the
Form 8-K Filing, the Company shall have disclosed all material, non-public information (if any) delivered to any of the
Purchasers 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
Form 8-K Filing, the Company acknowledges and agrees that any and all confidentiality or similar obligations under any
agreement with respect to the transactions contemplated under the Transaction Documents, 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 Purchasers or any of their affiliates, on the other hand, shall terminate. In the event of a breach of
any of the foregoing covenants 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 Purchaser), in addition to any
other remedy provided herein or in the Transaction Documents, such Purchaser shall have the right to make a public
disclosure, in the form of a press release, public advertisement or otherwise, of 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; provided the Purchaser shall have first provided written notice to the Company that it
believes it has received information that constitutes material, non-public information, the Company shall have at least
48 hours to publicly disclose such material, non-public information prior to any such disclosure by the Purchaser or
demonstrate to the Purchaser in writing why such information does not constitute material, non-public information, and
(assuming the Purchaser and Purchaser’s counsel disagree with the Company’s determination) the Company shall have
failed to publicly disclose such material, non-public information within such time period. No Purchaser shall have any
liability to the Company, any of its Subsidiaries, or any of its or their respective officers, directors, employees,
stockholders or agents, for any such disclosure. To the extent that the Company delivers any material, non-public information
to a Purchaser without such Purchaser’s consent, the Company hereby covenants and agrees that such Purchaser 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 Purchaser 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 Purchaser, to make any press release or other public disclosure with respect to such
transactions (i) in substantial conformity with the Form 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 Purchaser shall be consulted by the Company
in connection with any such press release or other public disclosure prior to its release). 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 Purchaser has had, and no Purchaser shall have (unless expressly agreed to
by a particular Purchaser after the date hereof in a written definitive and binding agreement executed by the Company and
such particular Purchaser (it being understood and agreed that no Purchaser may bind any other Purchaser 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.

 

    24

     

    

 

4.19 Issuance
of Additional Securities.  For so long as any Securities remain outstanding, the Company shall not, other than
Exempt Issuances (as defined in the Certificate of Designation), (i) issue Common Stock at a price per share less than $11.50
per share (subject to adjustment for subdivision or consolidation of shares) or (ii) issue any convertible securities which
are convertible into or exercisable or exchangeable for Common Stock at a price per share less than $11.50 (subject to
adjustment for subdivision or consolidation of shares) per share, in each case, without the prior written consent of the
Purchasers, unless the outstanding Preferred Stock is correspondingly redeemed in connection therewith. Notwithstanding the
forgoing, the Company may issue Common Stock at a price per share less than $11.50 per share (subject to adjustment for
subdivision or consolidation of shares) or (ii) issue any convertible securities which are convertible into or exercisable or
exchangeable for Common Stock at a price per share less than $11.50 per share (subject to adjustment for subdivision or
consolidation of shares), in each case, in connection with any acquisition, collaboration, or other strategic transactions,
without the prior written consent of the Purchasers so long as the Purchasers are afforded the opportunity to convert 110% of
their outstanding Preferred Shares into the same terms as such acquisition, collaboration, or other strategic transaction, or
the outstanding Preferred Stock is correspondingly redeemed.

 

4.20
Intentionally omitted. 

 

4.21 Reservation
of Shares.  So long as any of the Preferred Stock remain outstanding, the Company shall take all action necessary to at
all times have authorized, and reserved for the purpose of issuance, shares of Common Stock in an amount no less than
the Required Minimum. If at any time the number of shares of Common Stock authorized and reserved for issuance is not
sufficient to meet the Required Minimum, 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, obtaining 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 Minimum.

 

4.22 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.

 

4.23. Review
of Surplus; Fair Value.  Each calendar month for the first two years after the date of this Agreement and then on a
quarterly basis thereafter (a) the Company’s Board of Directors, with the assistance of legal and/or financial
advisors as deemed necessary, will in good faith carefully consider whether under Delaware corporate law the Company had a
“surplus” or if no “surplus” net profits for the then-current or the preceding fiscal year, and (b)
if the Board of Directors determines that the Company did not have a “surplus,” the Company will retain a
third-party valuation firm approved by the holder of a majority of the then outstanding shares of Preferred Stock to value
the Company’s assets at current fair value (even if the “book value” reflected on the Company’s
balance sheet is different) in order to enable the Company to comply with applicable Delaware regarding the payment of
dividends or making a redemption or other payment under the terms of the Preferred Stock.

 

4.24.
Equal Treatment of Purchasers.  No consideration (including any modification of any Transaction Document) shall be offered
or paid to any Person to amend or consent to a waiver or modification of any provision of the Transaction Documents unless the
same consideration is also offered to all of the parties to such Transaction Documents. Further, the Company shall not make any
payment in respect of the Preferred Stock, whether as a dividend, redemption or other distribution, in amounts which are disproportionate
to the respective amounts payable under the Preferred Stock outstanding at any applicable time. For clarification purposes, this
provision constitutes a separate right granted to each Purchaser by the Company and negotiated separately by each Purchaser, and
is intended for the Company to treat the Purchasers as a class and shall not in any way be construed as the Purchasers acting
in concert or as a group with respect to the purchase, disposition or voting of Securities or otherwise.

 

    25

     

    

 

4.25.
Acknowledgment Regarding Purchaser’s Trading Activity.  Anything in this Agreement or elsewhere herein to the contrary
notwithstanding (except for Sections 3.2(f) and 4.8 hereof), it is understood and acknowledged by the Company that: (i) none of
the Purchasers has been asked by the Company to agree, nor has any Purchaser agreed, to desist from purchasing or selling, long
and/or short, securities of the Company, or “derivative” securities based on securities issued by the Company or to
hold the Securities for any specified term, (ii) past or future open market or other transactions by any Purchaser, specifically
including, without limitation, Short Sales or “derivative” transactions, before or after the closing of this or future
private placement transactions, may negatively impact the market price of the Company’s publicly-traded securities, (iii)
any Purchaser, and counter-parties in “derivative” transactions to which any such Purchaser is a party, directly or
indirectly, may presently have a “short” position in the Common Stock and (iv) each Purchaser shall not be deemed
to have any affiliation with or control over any arm’s length counter-party in any “derivative” transaction.
The Company further understands and acknowledges that (y) one or more Purchasers may engage in hedging activities at various times
during the period that the Securities are outstanding, including, without limitation, during the periods that the value of the
Underlying Shares deliverable with respect to Securities are being determined, and (z) such hedging activities (if any) could
reduce the value of the existing stockholders’ equity interests in the Company at and after the time that the hedging activities
are being conducted. The Company acknowledges that such aforementioned hedging activities do not constitute a breach of any of
the Transaction Documents.

 

4.26. Sponsor
Warrants.  The Company acknowledges and agrees that each Purchaser is a “Permitted Transferee” as defined in
Section 2.5 of that certain warrant agreement (the “Warrant Agreement”) dated as of August 18, 2016, by and
between the Company and Continental Stock Transfer & Trust Company, as warrant agent, which governs the Sponsor Warrants
and, as such, in accordance with Section 6.4 of the Warrant Agreement, the Sponsor Warrants, if assigned pursuant to the
Sponsor Transfer Agreement, to each Purchaser will not be subject to redemption pursuant to the provisions of Section 6.1 of
the Warrant Agreement.

 

ARTICLE
V.

MISCELLANEOUS

 

5.1 Termination.
This Agreement shall automatically terminate and be void and of no further force or effect, and all rights and obligations of
the parties hereunder shall terminate without any liability to either party hereto, upon the earlier to occur of: (i) such
date that the Merger Agreement is terminated in accordance with its terms, (ii) upon the mutual written agreement of each of
the parties hereto to terminate this Agreement or (c) December 26, 2018; provided that nothing herein will relieve any party
from liability for any willful breach hereof prior to the time of termination, and each party will be entitled to any
remedies at law or in equity to recover losses, liabilities or damages arising from such breach. The Company shall promptly
notify the undersigned of the termination of the Merger Agreement promptly after the termination of such
agreement. Notwithstanding the foregoing, Section 4.11 shall survive any termination of this Agreement for any
reason.

 

5.2 Fees
and Expenses.  Except as expressly set forth in the Transaction Documents to the contrary, each party shall pay the fees
and expenses of its own advisers, counsel, accountants and other experts, if any, and all other expenses incurred by
such party incident to the negotiation, preparation, execution, delivery and performance of this Agreement. The Company shall
pay all transfer agent fees (including, without limitation, any fees required for same-day processing of any instruction
letter delivered by the Company and any Notice of Conversion delivered by the Purchaser) in connection with the delivery of
the Conversion Shares to the Purchaser.

 

5.3 Entire
Agreement.  The Transaction Documents, together with the exhibits and schedules thereto, contain the entire
understanding of the parties with respect to the subject matter hereof and thereof and supersede all prior agreements and
understandings, oral or written, with respect to such matters, which the parties acknowledge have been merged into such
documents, exhibits and schedules.

 

5.4 Notices.
Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be in writing
and shall be deemed given and effective on the earliest of: (i) the date of transmission, if such notice or communication is
delivered via facsimile at the facsimile number set forth on the signature pages attached hereto at or prior to 12:00
p.m. (New York City time) on a Trading Day; (ii) the next Trading Day after the date of transmission, if such notice or
communication is delivered via facsimile at the facsimile number set forth on the signature pages attached hereto on a day
that is not a Trading Day or later than 12:00 p.m. (New York City time) on any Trading Day; (iii) the second (2nd)
Trading Day following the date of mailing, if sent by U.S. nationally recognized overnight courier service; or (iv) upon
actual receipt by the party to whom such notice is required to be given. The address for such notices and communications
shall be as set forth on the signature pages attached hereto.

 

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5.5 Amendments;
Waivers.  No provision of this Agreement may be waived, modified, supplemented or amended except in a written instrument
signed, in the case of an amendment, by the Company and Purchasers subscribing for (if prior to Closing) or holding (if after
Closing) more than fifty percent (50%) in interest of the Preferred Stock then outstanding or, in the case of a waiver, by
the party against whom enforcement of any such waived provision is sought, provided that if any amendment, modification
or waiver disproportionately and adversely impacts a Purchaser (or group of Purchasers), the consent of such
disproportionately impacted Purchaser (or group of Purchasers) shall also be required. No waiver of any default with respect
to any provision, condition or requirement of this Agreement shall be deemed to be a continuing waiver in the future or a
waiver of any subsequent default or a waiver of any other provision, condition or requirement hereof, nor shall any delay or
omission of any party to exercise any right hereunder in any manner impair the exercise of any such right. Any proposed
amendment or waiver that disproportionately, materially and adversely affects the rights and obligations of any Purchaser
relative to the comparable rights and obligations of the other Purchasers shall require the prior written consent of such
adversely affected Purchaser. Any amendment effected in accordance with accordance with this Section 5.5 shall be binding
upon each Purchaser and holder of Securities and the Company.

 

5.6 Headings.
The headings herein are for convenience only, do not constitute a part of this Agreement and shall not be deemed to limit or
affect any of the provisions hereof.

 

5.7 Successors
and Assigns.  This Agreement shall be binding upon and inure to the benefit of the parties and their successors and
permitted assigns. The Company may not assign this Agreement or any rights or obligations hereunder without the prior
written consent of the Purchaser (other than by merger). The Purchaser may assign any or all of its rights under this
Agreement to any Person to whom the Purchaser assigns or transfers any Securities, provided that such transferee agrees in
writing to be bound, with respect to the transferred Securities, by the provisions of the Transaction Documents that apply to
the “Purchaser”.

 

5.8 Third-Party
Beneficiaries.  Phunware is an intended third party beneficiary of this Agreement, and each party hereby acknowledges and
agrees that Phunware has the right prior to the Closing to cause the Company to enforce its respective rights and perform its
respective obligations under this Agreement. Other than Phunware, this Agreement is intended for the benefit of the
parties hereto and their respective successors and permitted assigns and is not for the benefit of, nor may any provision
hereof be enforced by, any other Person.

 

5.9 Governing
Law.  All questions concerning the construction, validity, enforcement and interpretation of the Transaction
Documents shall be governed by and construed and enforced in accordance with the internal laws of the State of New York,
without regard to the principles of conflicts of law thereof. Each party agrees that all legal proceedings concerning the
interpretations, enforcement and defense of the transactions contemplated by this Agreement and any other Transaction
Documents (whether brought against a party hereto or its respective affiliates, directors, officers, shareholders, partners,
members, employees or agents) shall be commenced exclusively in the state and federal courts sitting in the City of New York.
Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in the City of
New York, Borough of Manhattan for the adjudication of any dispute hereunder or in connection herewith or with any
transaction contemplated hereby or discussed herein (including with respect to the enforcement of any of the Transaction
Documents), 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 improper or is an
inconvenient venue for such proceeding. 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 via registered or certified mail or
overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Agreement
and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained
herein shall be deemed to limit in any way any right to serve process in any other manner permitted by law. If either party
shall commence an action, suit or proceeding to enforce any provisions of the Transaction Documents, then the
prevailing party in such action, suit or proceeding shall be reimbursed by the other party for its reasonable
attorneys’ fees and other costs and expenses incurred with the investigation, preparation and prosecution of such
action or proceeding.

 

    27

     

    

 

5.10 Survival.
The representations and warranties contained herein shall survive the Closing and the delivery of the Securities.

 

5.11 Execution.
This Agreement may be executed in two or more counterparts, all of which when taken together shall be considered one and the
same agreement and shall become effective when counterparts have been signed by each party and delivered to each other party,
it being understood that the parties need not sign the same counterpart. In the event that any signature is delivered
by facsimile transmission or by e-mail delivery of a “.pdf” format data file, such signature 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 facsimile or “.pdf” signature page were an original thereof.

 

5.12 Severability.
If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction to be invalid,
illegal, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein shall
remain in full force and effect and shall in no way be affected, impaired or invalidated, and the parties hereto shall
use their commercially reasonable efforts to find and employ an alternative means to achieve the same or substantially the
same result as that contemplated by such term, provision, covenant or restriction. It is hereby stipulated and declared to be
the intention of the parties that they would have executed the remaining terms, provisions, covenants and restrictions
without including any of such that may be hereafter declared invalid, illegal, void or unenforceable.

 

5.13 Rescission
and Withdrawal Right.  Notwithstanding anything to the contrary contained in (and without limiting any similar provisions
of) any of the other Transaction Documents, whenever the Purchaser exercises a right, election, demand or option under a
Transaction Document and the Company does not timely perform its related obligations within the periods therein provided,
then the Purchaser may rescind or withdraw, in its sole discretion from time to time upon written notice to the Company, any
relevant notice, demand or election in whole or in part without prejudice to its future actions and rights; provided,
however, that in the case of a rescission of a conversion of any Preferred Stock, the Purchaser shall be required to return
any shares of Common Stock subject to any such rescinded conversion notice concurrently with the return to the Purchaser of
the aggregate price, if any, paid to the Company for such shares.

 

5.14 Replacement
of Securities.  If any certificate or instrument evidencing any Securities is mutilated, lost, stolen or destroyed, the
Company shall issue or cause to be issued in exchange and substitution for and upon cancellation thereof (in the case of
mutilation), or in lieu of and substitution therefor, a new certificate or instrument, but only upon receipt of evidence
reasonably satisfactory to the Company of such loss, theft or destruction. The applicant for a new certificate or instrument
under such circumstances shall also pay any reasonable third-party costs (including customary indemnity) associated with the
issuance of such replacement Securities.

 

5.15 Remedies.
In addition to being entitled to exercise all rights provided herein or granted by law, including recovery of damages, the
Purchaser and the Company will be entitled to specific performance under the Transaction Documents. The parties agree that
monetary damages may not be adequate compensation for any loss incurred by reason of any breach of obligations contained in
the Transaction Documents and hereby agree to waive and not to assert in any action for specific performance of any such
obligation the defense that a remedy at law would be adequate.

 

5.16 Payment
Set Aside.  To the extent that the Company makes a payment or payments to the Purchaser pursuant to any
Transaction Document or a Purchaser enforces or exercises its rights 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, 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.

 

    28

     

    

 

5.17 Usury.
To the extent it may lawfully do so, the Company hereby agrees not to insist upon or plead or in any manner whatsoever claim,
and will resist any and all efforts to be compelled to take the benefit or advantage of, usury laws wherever enacted, now or
at any time hereafter in force, in connection with any claim, action or proceeding that may be brought by the Purchaser
in order to enforce any right or remedy under any Transaction Document. Notwithstanding any provision to the contrary
contained in any Transaction Document, it is expressly agreed and provided that the total liability of the Company under the
Transaction Documents for payments in the nature of interest shall not exceed the maximum lawful rate authorized under
applicable law (the “Maximum Rate”), and, without limiting the foregoing, in no event shall any rate of interest
or default interest, or both of them, when aggregated with any other sums in the nature of interest that the Company may be
obligated to pay under the Transaction Documents exceed such Maximum Rate. It is agreed that if the maximum contract rate of
interest allowed by law and applicable to the Transaction Documents is increased or decreased by statute or any official
governmental action subsequent to the date hereof, the new maximum contract rate of interest allowed by law will be the
Maximum Rate applicable to the Transaction Documents from the effective date thereof forward, unless such application is
precluded by applicable law. If under any circumstances whatsoever, interest in excess of the Maximum Rate is paid by the
Company to the Purchaser with respect to indebtedness evidenced by the Transaction Documents, such excess shall be applied by
the Purchaser to the unpaid principal balance of any such indebtedness or be refunded to the Company, the manner of handling
such excess to be at the Purchaser’s election.

 

5.18 Saturdays,
Sundays, Holidays, etc.  If the last or appointed day for the taking of any action or the expiration of any right required
or granted herein shall not be a Business Day, then such action may be taken or such right may be exercised on the
next succeeding Business Day.

 

5.19 Construction.
The parties agree that each of them and/or their respective counsel have reviewed and had an opportunity to revise the
Transaction Documents and, therefore, the normal rule of construction to the effect that any ambiguities are to be resolved
against the drafting party shall not be employed in the interpretation of the Transaction Documents or any
amendments thereto. In addition, each and every reference to share prices and shares of Common Stock in any Transaction
Document shall be subject to adjustment for reverse and forward stock splits, stock dividends, stock combinations and other
similar transactions of the Common Stock that occur after the date of this Agreement. In this Agreement, unless the context
otherwise requires: (i) any pronoun used in this Agreement shall include the corresponding masculine, feminine or neuter
forms, and the singular form of nouns, pronouns and verbs shall include the plural and vice versa; (ii)
“including” (and with correlative meaning “include”) means including without limiting the generality
of any description preceding or succeeding such term and shall be deemed in each case to be followed by the words
“without limitation”; (iii) the words “herein,” “hereto,” and “hereby” and
other words of similar import shall be deemed in each case to refer to this Agreement as a whole and not to any particular
section or other subdivision of this Agreement; and (iv) the term “Dollars” or “$” means U.S.
dollars.

 

5.20
WAIVER OF JURY TRIAL.  IN ANY ACTION, SUIT, OR PROCEEDING IN ANY JURISDICTION BROUGHT BY ANY PARTY AGAINST ANY OTHER PARTY,
THE PARTIES EACH KNOWINGLY AND INTENTIONALLY, TO THE GREATEST EXTENT PERMITTED BY APPLICABLE LAW, HEREBY ABSOLUTELY, UNCONDITIONALLY,
IRREVOCABLY AND EXPRESSLY WAIVES FOREVER TRIAL BY JURY.

 

[Signature
Pages Follow]

 

    29

     

    

 

IN
WITNESS WHEREOF, the parties hereto have caused this Securities Purchase Agreement to be duly executed by their respective authorized
signatories as of the date first indicated above.

 

	STELLAR
ACQUISITION III INC.	 	Address for Notice: 90 Kifisias Avenue,
	 	 	15125 Marousi, Greece
	By: 	 /s/ George Syllantavos	 	 
	Name: George Syllantavos	 	Fax: +30 210 876 4877
	Title: co-CEO	 	 
	 	 	Email: gs@stellaracquisition.com
	With
a copy to (which shall not constitute notice):	 	 

 

 

 

 

 

 

 

 

 

[REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK

SIGNATURE PAGE FOR PURCHASER FOLLOWS]

 

    30

     

    

 

[PURCHASER SIGNATURE PAGES TO STELLAR
SECURITIES PURCHASE AGREEMENT]

 

IN
WITNESS WHEREOF, the undersigned have caused this Securities Purchase Agreement to be duly executed by their respective authorized
signatories as of the date first indicated above.

 

Name
of Purchaser:  Dominion Capital LLC

 

Signature
of Authorized Signatory of Purchaser:  _____________________

 

Name
of Authorized Signatory:  Mikhail Gurevich

 

Title
of Authorized Signatory:  Managing Member

 

Email
Address of Authorized Signatory:   mikhail@domcapllc.com

 

Facsimile
Number of Authorized Signatory: __________________

 

Address
for Notice to Purchaser:

 

256
West 38th Street, 15th Floor, New York, NY 10018

 

Address
for Delivery of Securities to Purchaser (if not same as address for notice):

 

Subscription
Amount:  $ 6,000,000.00

Shares
of Preferred Stock:  6,000

EIN Number:  45-2571126 

 

 

 

 

[SIGNATURE
PAGES CONTINUE]

 

    31

     

    

 

SCHEDULE 3.1(I)

 

Cash
fees paid by the Company in this offering are as follows:

 

		1.	8%
to Alliance Global Partners – $250,000 plus $75,000 for expenses ($325,000 total) paid at Closing

		2.	Stillpoint
Capital – $200,000 ($100k at Closing and $100k deferred to be paid the Company following the Merger)

 

    32

     

    

 

EXHIBIT
A

 

CERTIFICATE
OF DESIGNATION OF 8% SERIES A CONVERTIBLE PREFERRED STOCK

 

(Attached)

 

    33

     

    

 

	 	State
    of Delaware 

    Secretary of State 

    Division of Corporations 

    Delivered 08:40 PM 12/26/2018 

    FILED 08:40 PM 12/26/2018 

    SR 20188367542 - File Number 7211647

 

PHUNWARE
INC.

 

CERTIFICATE
OF DESIGNATION OF PREFERENCES,

RIGHTS AND LIMITATIONS

OF

SERIES A 8% CONVERTIBLE PREFERRED STOCK

 

PURSUANT
TO THE DELAWARE GENERAL CORPORATION LAW

 

The
undersigned, Prokopios (Akis) Tsirigakis and George Syllantavos do hereby certify that:

 

1.
They are the President and Secretary, respectively, of Phunware Inc., a Delaware corporation (the “Corporation”). 

 

2.
The Corporation is authorized to issue 100,000,000 shares of preferred stock, none of which have been issued.

 

3.
The following resolutions were duly adopted by the board of directors of the Corporation (the “Board of Directors”):

 

WHEREAS,
articles of incorporation of the Corporation provides for a class of its authorized stock known as preferred stock, consisting
of 100,000,000 shares, $0.0001 par value per share, issuable from time to time in one or more series;

 

WHEREAS,
the Board of Directors is authorized to fix the dividend rights, dividend rate, voting rights, conversion rights, rights and terms
of redemption and liquidation preferences of any wholly unissued series of preferred stock and the number of shares constituting
any series and the designation thereof, of any of them; and

 

WHEREAS,
it is the desire of the Board of Directors, pursuant to its authority as aforesaid, to fix the rights, preferences, restrictions
and other matters relating to a series of the preferred stock, which shall consist of, except as otherwise set forth in the Purchase
Agreement, up to 6,000 shares of the preferred stock which the Corporation has the authority to issue, as follows:

 

NOW,
THEREFORE, BE IT RESOLVED, that the Board of Directors does hereby provide for the issuance of a series of preferred stock for
cash or exchange of other securities, rights or property and does hereby fix and determine the rights, preferences, restrictions
and other matters relating to such series of preferred stock as follows:

 

TERMS
OF PREFERRED STOCK

 

Section
1. Definitions. For the purposes hereof, the following terms shall have the following meanings:

 

“Additional
Triggering Event” Each of the following events shall constitute an “Additional Triggering Event” and
each of the events in clauses (ix), (x) and (xi) shall constitute a “Bankruptcy Triggering Event”:

 

(i)
following an effective Registration Statement, if any of the Securities are not freely tradable without restriction by any of
the Holders due to a breach by the Corporation which remains uncured for a period of five (5) consecutive Trading
Days;

 

(ii)
the suspension from trading or failure of the Common Stock to be trading or listed (as applicable) on a National Securities Exchange
registered with the Securities and Exchange Commission under Section 6 of the Exchange Act for a period of five (5) consecutive
Trading Days;

 

     

     

    

 

(iii) the Corporation’s written notice to
any holder of the Preferred Stock, including without
limitation, by way of public announcement or through any of its agents, at any time, of its intention not to comply,
as required, with a request for conversion of any Preferred Stock into shares of Common Stock that is requested in
accordance with the provisions of this Certificate of Designations, other than pursuant to clauses (vii) and (viii) of
Section 5(c) hereof;

 

(iv)
at any time following the tenth (10th) consecutive day that a Holder’s Authorized Share Allocation (as defined in Section 5 below)
is less than 150% of the number of shares of Common Stock that such Holder would be entitled to receive upon a conversion in full
of the Preferred Stock held by such Holder (without regard to any limitations on conversion set forth in this Certificate of Designations;

 

(v)
the Corporation’s failure to pay to any Holder any amount when and as due under this Certificate of Designations (including, without
limitation, the Corporation’s failure to pay any redemption payments or amounts hereunder);

 

(vi)
the Corporation, on three or more occasions, either (A) fails to cure a Conversion Failure by delivery of the required number
of shares of Common Stock within five (5) Trading Days after the applicable Conversion Date or (B) fails to remove any restrictive
legend on any certificate for any shares of Common Stock issued to such Holder upon conversion of any Preferred Stock acquired
by such Holder as and when required with respect to such securities in accordance with applicable federal securities laws, and
any such failure remains uncured for at least five (5) Trading Days;

 

(vii)
the occurrence of any default under, redemption of or acceleration prior to maturity of at least an aggregate of $500,000 of Indebtedness
of the Corporation or any of its Subsidiaries;

 

(viii)
bankruptcy, insolvency, reorganization or liquidation proceedings or other proceedings for the relief of debtors shall be instituted
by or against the Corporation or any Subsidiary thereof and, if instituted against the Corporation or any Subsidiary thereof by
a third party, shall not be dismissed within thirty (30) days of their initiation;

 

(ix)
the commencement by the Corporation or any Subsidiary thereof of a voluntary case or proceeding under any applicable federal,
state or foreign bankruptcy, insolvency, reorganization or other similar law or of any other case or proceeding to be adjudicated
a bankrupt or insolvent, or the consent by it to the entry of a decree, order, judgment or other similar document in respect of
the Corporation or any Subsidiary thereof in an involuntary case or proceeding under any applicable federal, state or foreign
bankruptcy, insolvency, reorganization or other similar law or to the commencement of any bankruptcy or insolvency case or proceeding
against it, or the filing by it of a petition or answer or consent seeking reorganization or relief under any applicable federal,
state or foreign law, or the consent by it to the filing of such petition or to the appointment of or taking possession by a custodian,
receiver, liquidator, assignee, trustee, sequestrator or other similar official of the Corporation or any Subsidiary thereof or
of any substantial part of its property, or the making by it of an assignment for the benefit of creditors, or the execution of
a composition of debts, or the occurrence of any other similar federal, state or foreign proceeding, or the admission by it in
writing of its inability to pay its debts generally as they become due, the taking of corporate action by the Corporation or any
Subsidiary thereof in furtherance of any such action or the taking of any action by any Person to commence a Uniform Commercial
Code foreclosure sale or any other similar action under federal, state or foreign law;

 

(x)
the entry by a court of (A) a decree, order, judgment or other similar document in respect of the Corporation or any
Subsidiary thereof of a voluntary or involuntary case or proceeding under any applicable federal, state or foreign
bankruptcy, insolvency, reorganization or other similar law or (B) a decree, order, judgment or other similar document
adjudging the Corporation or any Subsidiary thereof as bankrupt or insolvent, or approving as properly filed a petition
seeking liquidation, reorganization, arrangement, adjustment or composition of or in respect of the Corporation or any
Subsidiary thereof under any applicable federal, state or foreign law or (C) a decree, order, judgment or other similar
document appointing a custodian, receiver, liquidator, assignee, trustee, sequestrator or other similar official of the
Corporation or any Subsidiary thereof or of any substantial part of its property, or ordering the winding up or liquidation
of its affairs, and the continuance of any such decree, order, judgment or other similar document or any such other decree,
order, judgment or other similar document unstayed and in effect for a period of thirty (30) consecutive days;

 

    2

     

    

 

(xi)
a final judgment or judgments for the payment of money aggregating in excess of $500,000 are rendered against the
Corporation and/or any of its Subsidiaries and which judgments are not, within thirty (30) days after the entry thereof,
bonded, discharged, settled or stayed pending appeal, or are not discharged within thirty (30) days after the expiration of
such stay; provided, however, any judgment which is covered by insurance or an indemnity from a credit worthy
party shall not be included in calculating the $500,000 amount set forth above so long as the Corporation provides each
Holder a written statement from such insurer or indemnity provider (which written statement shall be reasonably satisfactory
to each Holder) to the effect that such judgment is covered by insurance or an indemnity and the Corporation or such
Subsidiary (as the case may be) will receive the proceeds of such insurance or indemnity within thirty (30) days of the
issuance of such judgment;

 

(xii)
the Corporation and/or any Subsidiary thereof, individually or in the aggregate fails to pay, when due, or within any applicable
grace period, any payment with respect to any Indebtedness in excess of $500,000 due to any third party (other than, with respect
to unsecured Indebtedness only, payments contested by the Corporation and/or such Subsidiary (as the case may be) in good faith
by proper proceedings and with respect to which adequate reserves have been set aside for the payment thereof in accordance with
GAAP) or is otherwise in breach or violation of any agreement for monies owed or owing in an amount in excess of $500,000, for
which breach or violation causes the other party thereto to declare a default or otherwise accelerate amounts due thereunder;

 

(xiii)
other than as specifically set forth in another clause of this definition, the Corporation or any Subsidiary thereof breaches
any representation or warranty in any material respect (other than representations or warranties subject to material adverse effect
or materiality, which may not be breached in any respect) or any covenant or other term or condition of any Transaction Document,
except, in the case of a breach of a covenant or other term or condition that is curable, only if such breach remains uncured
for a period of five (5) consecutive Trading Days, unless such breach does not have a Material Adverse Effect (as defined below);

 

(xiv)
a false or inaccurate certification (including a false or inaccurate deemed certification) by the Corporation that either (A)
the Equity Conditions are satisfied, (B) there has been no failure to satisfy the Equity Conditions, or (C) as to whether any
Additional Triggering Event has occurred, and such Holder suffers economic damage thereby;

 

(xv)
any breach or failure in any respect by the Corporation or any Subsidiary thereof to comply with any covenant contained in this
Certificate of Designations, unless such breach does not have a Material Adverse Effect;

 

(xvi)
if any Conversion Shares are issued, the Company fails to (1) file a Preliminary Information Statement on Schedule 14C with
the Commission within three (3) Business Days of such date of issuance of the Conversion Shares, (2) to file a Definitive
Information Statement on Schedule 14C with the Commission on the eleventh day after the requisite ten day waiting period and
immediately mail the Definitive Information Statement on Schedule 14C to the Company shareholders (assuming no comments from
the Commission have been received with respect to such filing prior to such eleventh day) or within five (5) Business Days of
the receipt of any comments, fails to file a response to such comments or (3) to obtain all necessary approvals (including
approval of Nasdaq Capital Market) of the issue and sale of all Conversion Shares, without any Exchange Cap limitation and or
otherwise, consistent with the rules and regulations of the principal Trading Market within six months of the issuance date
of the Conversion Shares; or

 

    3

     

    

 

(xvii)
any Material Adverse Effect occurs.

 

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

 

“Applicable
Price” shall have the meaning set forth in Section 6(e).

 

“Asset
Transfer” shall have the meaning set forth in Section 8(c).

 

“Authorized
Share Allocation” shall have the meaning set forth in Section 5(c)(iv).

 

“Authorized Failure Shares”
shall have the meaning set forth in Section 5(c)(iv).

 

“Authorized Share Failure” shall have the meaning set forth
in Section 5(c)(iv).

 

“Business
Day” means any day except any Saturday, any Sunday, any day which is a federal legal holiday in the United States or
any day on which banking institutions in the State of New York are authorized or required by law or other governmental action
to close.

 

“Buy-In
Price” shall have the meaning set forth in Section 5(c)(iv).

 

“Closing
Bid Price” and “Closing Sale Price” means, for any security as of any date, the last closing bid price
and last closing trade price, respectively, for such security on the Trading Market, as reported by Bloomberg, or, if the Trading
Market begins to operate on an extended hours basis and does not designate the closing bid price or the closing trade price (as
the case may be) then the last bid price or last trade price, respectively, of such security prior to 4:00:00 p.m., New York time,
as reported by Bloomberg, or, if the Trading Market is not the principal securities exchange or trading market for such security,
the last closing bid price or last trade price, respectively, 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 closing bid
price or last trade price, respectively, of such security in the over-the-counter market on the electronic bulletin board for
such security as reported by Bloomberg, or, if no closing bid price or last trade price, respectively, is reported for such security
by Bloomberg, the average of the bid prices, or the ask prices, respectively, of any market makers for such security as reported
in the “pink sheets” by OTC Markets Group Inc. (formerly Pink Sheets LLC). If the Closing Bid Price or the Closing Sale
Price cannot be calculated for a security on a particular date on any of the foregoing bases, the Closing Bid Price or the Closing
Sale Price (as the case may be) of such security on such date shall be the fair market value as mutually determined by the Corporation
and the Holders of a majority of the then outstanding shares of Preferred Stock. If the Corporation and the Holders of a majority
of the then outstanding shares of Preferred Stock 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 10(k). All such determinations shall be appropriately adjusted
for any stock splits, stock dividends, stock combinations, recapitalizations or other similar transactions during such period.

 

“Closing
Date” means the Trading Day on which all of the Transaction Documents have been executed and delivered by the applicable
parties thereto and all conditions precedent to (i) each Holder’s obligations to pay the Subscription Amount and (ii) the Corporation’s
obligations to deliver the Securities have been satisfied or waived.

 

“Commission”
means the United States Securities and Exchange Commission.

 

    4

     

    

 

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

 

“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.

 

“Conversion
Amount” means the sum of the Stated Value at issue and all accrued and unpaid dividends and Make Whole amounts.

 

“Conversion
Date” shall have the meaning set forth in Section 5(a). “Conversion Failure” shall have the meaning
set forth in Section 5(c)(ii). “Conversion Price” shall have the meaning set forth in Section 5(b).

 

“Conversion
Shares” means, collectively, the shares of Common Stock issuable upon conversion of the shares of Preferred Stock in
accordance with the terms hereof.

 

“Conversion
Shares Registration Statement” means a registration statement that registers the resale of all of the Conversion Shares
by the Holders, which shall be named as “selling stockholders” therein, and meets the requirements of the Purchase Agreement.

 

“Dilutive
Issuance” shall have the meaning set forth in Section 6(e).

 

“Dispute
Submission Deadline” shall have the meaning set forth in Section 9(k).

 

“Distributions” shall have the
meaning set forth in Section 9.

 

“Effective
Date” means the date that the Conversion Shares Registration Statement filed by the Corporation pursuant to the Purchase
Agreement is first declared effective by the Commission.

 

    5

     

    

 

“Equity
Conditions” means, during the period in question, (a) the Corporation shall have duly honored in a timely manner
all conversions scheduled to occur or occurring by virtue of one or more Notices of Conversion of the applicable Holder on or
prior to the dates so requested or required, if any, (b)(i) there is an effective Conversion Shares Registration Statement
pursuant to which the Holders are permitted to utilize the prospectus thereunder to resell all of the Conversion Shares or
(ii) all of the Conversion Shares (and shares issuable in lieu of cash payments of dividends) may be resold pursuant to Rule
144 without volume or manner-of-sale restrictions or current public information requirements as determined by the counsel to
the Corporation as set forth in a written opinion letter to such effect, addressed and acceptable to the Transfer Agent and
the affected Holders, (c) on each of the thirty (30) days prior to the applicable date of determination the Common Stock is
trading on a Trading Market and all of the shares issuable pursuant to the Transaction Documents are duly authorized listed
or quoted for trading on such Trading Market, and shall not have been suspended from trading on such Trading Market (other
than suspensions of not more than two (2) days and occurring prior to the applicable date of determination due to business
announcements by the Corporation) nor shall delisting or suspension by such Trading Market have been threatened (with a
reasonable prospect of delisting occurring after giving effect to all applicable notice, appeal, compliance and hearing
periods) or reasonably likely to occur or pending as evidenced by (A) a writing by such Trading Market or (B) the Corporation
falling below the minimum listing maintenance requirements of the Trading Market on which the Common Stock is then listed or
designated for quotation (as applicable); (d) any shares of Common Stock to be issued in connection with the event requiring
determination (or issuable upon conversion of the Conversion Amount being redeemed in the event requiring this determination
(without regards to any limitations on conversion set forth herein)) may be issued in full without violating the rules or
regulations of the Trading Market on which the Common Stock is then listed or designated for quotation (as applicable) (e) on
each day during the period in question, no public announcement of a pending, proposed or intended Fundamental Transaction
shall have occurred which has not been abandoned, terminated or consummated; (e) the applicable Holder is not in possession
of any information provided by the Corporation, any of its Subsidiaries, or any of their officers, directors, employees,
agents or Affiliates, that constitutes, or may constitute, material non-public information. (f) on each day during the period
beginning thirty (30) calendar days prior to the applicable date of determination and ending on and including the applicable
date of determination, the Corporation otherwise shall have been in compliance with each, and shall not have breached any
representation or warranty in any material respect (other than representations or warranties subject to material adverse
effect or materiality, which may not be breached in any respect) or any covenant or other term or condition of any
Transaction Document, including, without limitation, the Corporation shall not have failed to timely make any payment
pursuant to any Transaction Document; (g) on the applicable date of determination (A) no Authorized Share Failure shall exist
or be continuing and the Required Reserve Amount is available under the Certificate of Incorporation of the Corporation and
reserved by the Corporation to be issued pursuant to the Preferred Shares and (B) all shares of Common Stock to be issued in
connection with the event requiring this determination (or issuable upon conversion of the Conversion Amount being redeemed
in the event requiring this determination (without regards to any limitations on conversion set forth herein)) may be issued
in full without resulting in an Authorized Share Failure; (h) on each day during the thirty (30) day period prior to the
applicable date of determination, there shall not have occurred and there shall not exist an Additional Triggering Event or
an event that with the passage of time or giving of notice would constitute a Triggering Event; and (i) the daily dollar
volume of the Common Stock during each of the previous ten (10) Trading Days must be greater than $150,000 per day; and (xii)
the VWAP of the Common Stock during each of the previous ten (10) Trading Days must be greater than $2.00.

 

“Exchange
Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

 

“Exchange
Cap” shall have the meaning set forth in Section 5(c)(viii).

 

“Exchange
Cap Allocation” shall have the meaning set forth in Section 5(c)(viii).

 

“Exchange Cap Shares” shall
have the meaning set forth in Section 5(c)(viii).

 

“Excluded
Financing” means any debt financing pursuant to the factoring agreement with CSNK Working Capital Finance Corp. (d/b/a
Bay View Funding) or any other current or future factoring agreement, working capital line of credit, forward purchase agreement
or similar arrangement.

 

“Exempt
Issuance” means the issuance of (a) shares of Common Stock or options to purchase shares of Common Stock issued
pursuant to any stock or option plan duly adopted for such purpose, by the Corporation’s board of directors and a
majority of the non-employee members of the board of directors or a majority of the members of a committee of non-employee
directors established for such purpose, (b) shares of Common Stock issuable upon the exercise or exchange of or conversion of
any notes, the warrants and/or any other securities issued and outstanding on the initial issuance date of the Preferred
Stock, provided that such securities have not been amended since their original issue, (c) securities issued in lieu of cash
pursuant to merger, consolidation, acquisition or strategic transactions approved by a majority of the disinterested
directors of the Corporation, provided that any such issuance shall only be to a person which is, itself or through its
Subsidiaries, an operating company in a business synergistic with the business of the Corporation and in which the
Corporation receives benefits in addition to any investment of funds, but shall not include a transaction in which the
Corporation is issuing securities primarily for the purpose of raising capital or to an entity whose primary business is
investing in securities and/or being issued to affiliates, employees and/or related persons of the Corporation and/or any of
its affiliates, (d) securities issued pursuant to any equipment loan or leasing arrangement, real property
leasing arrangement or debt financing having such terms and on such terms and conditions and from a bank or similar financial
institution, all as approved by a majority of the disinterested directors of the Corporation, (e) securities to an entity as
a component of any business relationship with such entity primarily for the purpose of a joint venture or licensing activity
or another arrangement involving a corporate partner primarily for purposes other than raising capital, and (I) issuance of
securities pursuant to a stock dividend or stock split.

 

    6

     

    

 

“Floor
Price” means $2.00 (or such lower price as mutually determined by the Corporation and the Holders of a majority of the
then outstanding shares of Preferred Stock, subject to the prior consent of the Trading Market).

 

“Fundamental
Transaction” shall have the meaning set forth in Section 6(b).

 

“GAAP” means United States generally
accepted accounting principles. “Holder” shall have the meaning given such term in Section 2.

 

“Indebtedness”
of any Person means, without duplication (a) all indebtedness for borrowed money (other than trade accounts payable incurred
in the ordinary course of business), (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.

 

“Initial
Mandatory Redemption” shall have the meaning set forth in Section 7(a).

 

“Initial
Mandatory Redemption Amount” means the sum of (a) 104% of the aggregate Stated Value of Three Thousand (3,000) shares
of Preferred Stock, and (b) all other amounts due in respect of the Preferred Stock.

 

“Initial
Mandatory Redemption Date” shall have the meaning set forth in Section 7(a).

 

“Intellectual
Property Rights” means trademarks, trade names, service marks, service mark registrations, service names, original works
of authorship, patents, patent rights, copyrights, original works, inventions, licenses, approvals, governmental authorizations,
trade secrets and other intellectual property rights and all applications and registrations therefor.

 

“Junior
Securities” means the Common Stock and all other Common Stock Equivalents of the Corporation other than those securities
which are explicitly senior or pari passu to the Preferred Stock in dividend rights, distribution, redemption
or Liquidation preference.

 

“Lien”
means any mortgage, pledge, security interest, attachment, right of first refusal, option, proxy, voting trust, encumbrance, lien
or charge of any kind (including any conditional sale or other title retention agreement or lease in the nature thereof), restriction
(whether on voting, sale, transfer, disposition or otherwise), any subordination arrangement in favor of another Person, or any
filing or agreement to file a financing statement as debtor under the Uniform Commercial Code or any similar Law, but shall exclude
licenses of intellectual property.

 

    7

     

    

 

“Liquidation”
shall have the meaning set forth in Section 4.

 

“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 Corporation or any Subsidiary thereof, either individually
or taken as a whole, (ii) the transactions contemplated hereunder or (iii) the authority or ability of the Corporation to perform
any of its obligations hereunder.

 

“Maximum
Percentage” shall have the meaning set forth in Section 5(c)(vii).

 

“New
York Courts” shall have the meaning set forth in Section 10(d).

 

“New Issuance Price” shall have the
meaning set forth in Section 6(e).

 

“Notice of Conversion” shall have the meaning set forth in Section 5(a).

 

“Original
Issue Date” means the date of the first issuance of any shares of the Preferred Stock regardless of the number of transfers
of any particular shares of Preferred Stock and regardless of the number of certificates which may be issued to evidence such
Preferred Stock.

 

“Permitted
Liens” means (i) any Lien for taxes not yet due or delinquent or being contested in good faith by appropriate
proceedings for which adequate reserves have been established in accordance with GAAP, (ii) any statutory Lien arising in the
ordinary course of business by operation of law with respect to a liability that is not yet due or delinquent, (iii) any Lien
created by operation of law, such as materialmen’s liens, mechanics’ liens and other similar liens, arising in
the ordinary course of business with respect to a liability that is not yet due or delinquent or that are being contested in
good faith by appropriate proceedings, (iv) Liens (A) upon or in any equipment acquired or held by the Corporation or any of
its Subsidiaries to secure the purchase price of such equipment or Indebtedness incurred solely for the purpose of financing
the acquisition or lease of such equipment, or (B) existing on such equipment at the time of its acquisition, provided that
the Lien is confined solely to the property so acquired and improvements thereon, and the proceeds of such equipment, in
either case, with respect to Indebtedness in an aggregate amount not to exceed $1.0 million without written consent of the
Holders of a majority of the outstanding shares of Preferred Stock, (v) Liens incurred in connection with the extension,
renewal or refinancing of the Indebtedness secured by Liens of the type described in clause (iv) above, provided that any
extension, renewal or replacement Lien shall be limited to the property encumbered by the existing Lien and the principal
amount of the Indebtedness being extended, renewed or refinanced does not increase, (vi) Liens in favor of customs and
revenue authorities arising as a matter of law to secure payments of custom duties in connection with the importation of
goods, (vii) Liens arising from judgments, decrees or attachments in circumstances not constituting an Additional Triggering
Event and (viii) Liens with respect to the Excluded Financing.

 

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

 

“Preferred
Stock” shall have the meaning set forth in Section 2.

 

“Purchase
Agreement” means the Securities Purchase Agreement, dated December 26, 2018, by and among the Corporation and the original
Holders, as amended, modified or supplemented from time to time in accordance with its terms.

 

“Registration
Statement” means a registration statement meeting the requirements set forth in the Purchase Agreement and covering the
resale of the Conversion Shares by each Holder as provided for in the Purchase Agreement.

 

    8

     

    

 

“Required
Dispute Documentation” shall have the meaning set forth in Section 9(k).

 

“Required Reserve Amount” shall
have the meaning set forth in Section 5(c)(iv).

 

“Rule
144” means Rule 144 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from time
to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same effect as such Rule.

 

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

 

“Second
Mandatory Redemption” shall have the meaning set forth in Section 7(a).

 

“Second
Mandatory Redemption Amount” means the sum of (a) 104% of the aggregate Stated Value of Two Thousand Five Hundred
(2,500) shares of Preferred Stock, and (b) all other amounts due in respect of the Preferred Stock.

 

“Second
Mandatory Redemption Date” shall have the meaning set forth in Section 7(a).

 

“Securities” means the
Preferred Stock and the Underlying Shares.

 

“Securities
Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

 

“Share
Delivery Date” shall have the meaning set forth in Section 5(c).

 

“Stated
Value” shall have the meaning set forth in Section 2, as the same may be increased pursuant to the terms of this Certificate
of Designation.

 

“Subscription
Amount” shall mean, as to each Holder, the aggregate amount to be paid for the Preferred Stock purchased pursuant to
the Purchase Agreement as specified below such Holder’s name on the signature page of the Purchase Agreement and next to the heading
“Subscription Amount,” in United States dollars and in immediately available funds.

 

“Subsidiary”
means any Subsidiary of the Corporation as set forth on Schedule 3.1(a) of the Purchase Agreement and shall,
where applicable, also include any direct or indirect Subsidiary of the Corporation formed or acquired after the date of the
Purchase Agreement.

 

“Successor
Entity” shall have the meaning set forth in Section 6(e).

 

“Third
Mandatory Redemption” shall have the meaning set forth in Section 7(a).

 

“Third
Mandatory Redemption Amount” means the sum of (a) 104% of the aggregate Stated Value of Five Hundred (500) shares
of Preferred Stock, and (b) all other amounts due in respect of the Preferred Stock.

 

“Third
Mandatory Redemption Date” shall have the meaning set forth in Section 7(a).

 

“Trading Day” means
a day on which the principal Trading Market is open for business.

 

“Trading
Market” means any of the following markets or exchanges on which the Common Stock is listed or quoted for trading on
the date in question: the NYSE American, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market,
the New York Stock Exchange, OTCQB or OTCQX (or any successors to any of the foregoing).

 

    9

     

    

 

“Transaction Documents“
means this Certificate of Designation, the Purchase Agreement, the Transfer Agent Instruction Letter, all exhibits and schedules
thereto and hereto and any other documents or agreements executed in connection with the transactions contemplated pursuant to
the Purchase Agreement.

 

“Transfer Agent” means
Continental Stock Transfer & Trust Company, the current transfer agent of the Corporation, with a mailing address of 1 State
Street, 30th Floor, New York, NY 10004 and a phone number of (212) 509-4000, and any successor transfer agent of the Corporation.

 

“Triggering Event Notice” shall
have the meaning set forth in Section 8(b).

 

“Triggering Event Redemption Right Period”
shall have the meaning set forth in Section 8(b).

 

“Triggering Event Right Commencement
Day” shall have the meaning set forth in Section 8(b).

 

“Triggering Event Right Expiration Day” shall
have the meaning set forth in Section 8(b).

 

“Triggered Mandatory Redemption” shall have the meaning set forth
in Section 8(b).

 

“Triggered
Mandatory Redemption Amount” means the sum of (a) 110% of the aggregate Stated Value of the Preferred Stock, and (b)
all other amounts due in respect of the Preferred Stock.

 

“Triggered Mandatory Redemption Date”
shall have the meaning set forth in Section 8(b).

 

“Underlying
Shares” means the shares of Common Stock issued and issuable upon conversion or redemption of the Preferred Stock and
issued and issuable in lieu of the cash payment of dividends on the Preferred Stock in accordance with the terms of this Certificate
of Designation.

 

“Variable
Rate Transaction” means a transaction, other than an Excluded Financing, in which the Corporation or any Subsidiary (i)
issues or sells any Common Stock Equivalent (other than options) 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 Corporation 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”) whereby the Corporation or any Subsidiary may
sell securities at a future determined price (other than standard and customary “preemptive” or “participation”
rights.

 

“VWAP”
means, for any date, the price determined by the first of the following clauses that applies: (a) if the Common Stock is then listed
or quoted on a Trading Market, the daily volume weighted average price of the Common Stock for such date (or the nearest preceding
date) on the Trading Market on which the Common Stock is then listed or quoted as reported by Bloomberg L.P. (based on a Trading
Day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City time)), (b) if OTCQB or OTCQX is not a Trading Market, the
volume weighted average price of the Common Stock for such date (or the nearest preceding date) on OTCQB or OTCQX as applicable,
(c) if the Common Stock is not then listed or quoted for trading on OTCQB or OTCQX and if prices for the Common Stock are then
reported in the “Pink Sheets” published by OTC Markets, Inc. (or a similar organization or agency succeeding to its
functions of reporting prices), the most recent bid price per share of the Common Stock so reported, or (d) in all other cases,
the fair market value of a share of Common Stock as determined by an independent appraiser selected in good faith by the Purchasers
of a majority in interest of the Securities then outstanding and reasonably acceptable to the Corporation, the fees and expenses
of which shall be paid by the Corporation.

 

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Section
2. Designation, Amount and Par Value/Ranking. The series of preferred stock shall be designated as its Series A 8%
Convertible Preferred Stock (the “Preferred Stock”) and the number of shares
so designated shall be up to Six Thousand (6,000) (which shall not be subject to increase without the written consent of all of
the holders of the Preferred Stock (each, a “Holder” and collectively, the “Holders”)).
Each share of Preferred Stock shall have a par value of $0.0001 per share and a stated value equal to $1,000, subject to increase
set forth in Section 3 below (the “Stated Value”). All shares of capital stock of the Corporation shall be
junior in rank to all Preferred Stock with respect to the preferences as to dividends, distributions, consummation of redemption
and payments upon Liquidation (such junior stock is referred to herein collectively as “Junior Securities”).
The rights of all such shares of capital stock of the Corporation shall be subject to the rights, powers, preferences and privileges
of the Preferred Stock. In the event of the merger or consolidation of the Corporation with or into another corporation, the Preferred
Stock shall maintain their relative rights, powers, designations, privileges and preferences provided for herein and no such merger
or consolidation shall result inconsistent therewith.

 

Section
3. Voting Rights. Except as otherwise provided herein or as otherwise required by law, the Preferred Stock shall
have no voting rights. However, as long as any shares of Preferred Stock are outstanding, the Corporation shall not, without the
affirmative vote of the Holders of a majority of the then outstanding shares of the Preferred Stock, (a) alter or change adversely
the powers, preferences or rights given to the Preferred Stock or alter or amend this Certificate of Designation, (b) authorize
or create any class of stock ranking as to dividends, redemption or distribution of assets upon a Liquidation (as defined in Section
4) senior to, or otherwise pari passu with, the Preferred Stock or authorize or issue any Junior Securities
having a maturity date (or any other date requiring redemption or repayment of such shares of stock) that is prior to the one
year anniversary of the Original Issue Date, (c) amend or repeal any provision of its certificate of incorporation of bylaws or
other charter documents in any manner that adversely affects, alters or changes any rights, privileges or powers of the Holders,
(d) increase the number of authorized shares of Preferred Stock or issue any Preferred Stock other than pursuant to this Certificate
of Designations, (e) declare or make any dividends other than dividend payments on the Preferred Stock or other distributions
payable solely in Common Stock or (f) enter into any agreement with respect to any of the foregoing.

 

Section
4. Liquidation. Upon any liquidation, dissolution or winding-up of the Corporation, whether voluntary or
involuntary and whether in a single transaction or series of transactions (a “Liquidation”), the Holders
shall be entitled to receive out of the assets, whether capital or surplus, of the Corporation an amount equal to the greater
of (i) Stated Value, plus any other fees then due and owing thereon under this Certificate of Designation or (ii) the amount
the Holder would receive if such Holder converted such Preferred Stock into Common Stock immediately prior to the date of
Liquidation, including accrued and unpaid dividends, for each share of Preferred Stock before any distribution or payment
shall be made to the holders of any Junior Securities, and if the assets of the Corporation shall be insufficient to pay in
full such amounts, then the entire assets to be distributed to the Holders shall be ratably distributed among the Holders in
accordance with the respective amounts that would be payable on such shares if all amounts payable thereon were paid in full.
The Corporation shall mail written notice of any such Liquidation to each Holder at least twenty (20) days prior to such
Liquidation. To the extent necessary, the Corporation shall cause such actions to be taken by each of its Subsidiaries so as
to enable, to the maximum extent permitted by law, the proceeds of a Liquidation to be distributed to the Holders in
accordance with this Section 4. All the preferential amounts to be paid to the Holders under this Section 4 shall be paid or
set apart for payment before the payment or setting apart for payment of any amount for, or the distribution of any
Liquidation funds of the Corporation to the holders of shares of Junior Securities in connection with a Liquidation as to
which this Section 4 applies.

 

    11

     

    

 

Section
5. Conversion.

 

(a)
Conversions at Option of Holder. Each share of Preferred Stock shall be convertible, at any time and from time to time
from and after the Original Issue Date at the option of the Holder thereof, into that number of shares of Common Stock determined
by dividing the Stated Value plus accrued and unpaid dividends and late charges of such share of Preferred Stock by the Conversion
Price. Holders shall effect conversions by providing the Corporation with the form of conversion notice attached hereto as Annex
A (a “Notice of Conversion”). Each Notice of Conversion shall specify the number of shares of Preferred
Stock to be converted, the number of shares of Preferred Stock owned prior to the conversion at issue, the number of shares of
Preferred Stock owned subsequent to the conversion at issue and the date on which such conversion is to be effected, which date
may not be prior to the date the applicable Holder delivers by facsimile such Notice of Conversion to the Corporation (such date,
the “Conversion Date”). If no Conversion Date is specified in a Notice of Conversion, the Conversion Date shall
be the date that such Notice of Conversion to the Corporation is deemed delivered hereunder. No ink-original Notice of Conversion
shall be required, nor shall any medallion guarantee (or other type of guarantee or notarization) of any Notice of Conversion
form be required. The calculations and entries set forth in the Notice of Conversion shall control in the absence of manifest
or mathematical error. To effect conversions of shares of Preferred Stock, a Holder shall not be required to surrender the certificate(s)
representing the shares of Preferred Stock to the Corporation unless all of the shares of Preferred Stock represented thereby
are so converted, in which case such Holder shall deliver the certificate representing such shares of Preferred Stock promptly
following the Conversion Date at issue. Conversions of less than the total amount of shares of Preferred Stock represented by
a certificate held by the Holder will have the effect of lowering the outstanding number of shares of Preferred Stock held by
the Holder by an amount equal to the number so converted, as if the original stock certificate(s) were cancelled and one or more
new stock certificates evidencing the new number of shares of Preferred Stock were issued; provided, however, that
in such cases the Holder may request that the Corporation deliver to the holder a certificate representing such non-converted
shares of Preferred Stock; provided, further, that the failure of the Corporation to deliver such new certificate
shall not affect the rights of the holder to submit a further Notice of Conversion with respect to such Preferred Stock and, in
any such case, the Holder shall be deemed to have submitted the original of such new certificate at the time that it submits such
further Notice of Conversion. In the case of a dispute between the Corporation and a holder as to the calculation of the Conversion
Price, the total number of shares of Preferred Stock outstanding or the number of shares of Common Stock issuable upon a conversion,
the Corporation shall issue to such holder the number of shares of Common Stock that are not disputed within the time periods
specified below and shall submit the disputed calculations to a certified public accounting firm of national reputation within
two (2) Trading Days following the Corporation’s receipt of such holder’s Notice of Conversion. The Corporation shall
cause such accountant to calculate the Conversion Price, the total number of shares of Preferred Stock outstanding or the number
of shares of Common Stock issuable upon conversion as provided herein and to notify the Corporation and such holder of the results
in writing no later than two (2) Trading Days following the day on which such accountant received the disputed calculations. Such
accountant’s calculation shall be deemed conclusive absent manifest error. The fees of any such accountant shall be borne
by the party whose calculations were most at variance with those of such accountant. Shares of Preferred Stock converted into
Common Stock or redeemed in accordance with the terms hereof shall be canceled and shall not be reissued.

 

(b)
Conversion Price. The conversion price for the Preferred Stock shall equal $11.50, subject to adjustment herein (the “Conversion
Price”). 

 

(c)
Mechanics of Conversion. 

 

(i) Delivery
of Conversion Shares Upon Conversion. Not later than the earlier of (i) two (2) Trading Days and (ii) the number of
Trading Days comprising the Standard Settlement Period (as defined below) after each Conversion Date (the “Share
Delivery Date”), the Corporation shall deliver, or cause to be delivered, to the converting Holder (A) the number
of Conversion Shares being acquired upon the conversion of the Preferred Stock; which, on or after the earlier of (i) the six
month anniversary of the Original Issue Date or (ii) the Effective Date, shall be free of restrictive legends and trading
restrictions (other than those which may then be required by the Purchase Agreement, including the requirement that the
Holder and such Holder’s broker acknowledge in writing that the shares remain “restricted securities” until
such time as they are sold pursuant to an effective registration statement or pursuant to Rule 144)), and (B) a bank check in
the amount of accrued and unpaid dividends, including any and Make Whole Amount and late charges (if the Corporation has
elected or is required to pay accrued dividends in cash). On or after the earlier of (i) the six month anniversary of the
Original Issue Date or (ii) the Effective Date, the Corporation shall deliver the Conversion Shares required to be delivered
by the Corporation under this Section 5 electronically through the Depository Trust Company or another established clearing
corporation performing similar functions (provided that the Holder and such Holder’s broker acknowledge in writing that
the shares remain “restricted securities” until such time as they are sold pursuant to an effective registration
statement or pursuant to Rule 144). As used herein, “Standard Settlement Period” means the standard
settlement period, expressed in a number of Trading Days, on the Corporation’s primary Trading Market with respect to
the Common Stock as in effect on the date of delivery of the Notice of Conversion.

 

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(ii)
Failure to Deliver Conversion Shares. If, in the case of any Notice of Conversion, such Conversion Shares are not delivered
to or as directed by the applicable Holder by the Share Delivery Date (a “Conversion Failure”), the Holder
shall be entitled to elect by written notice to the Corporation at any time on or before its receipt of such Conversion Shares,
to rescind such Conversion, in which event the Corporation shall promptly return to the Holder any original Preferred Stock certificate
delivered to the Corporation and the Holder shall promptly return to the Corporation the Conversion Shares issued to such Holder
pursuant to the rescinded Notice of Conversion provided that the voiding of a Conversion Notice shall not affect the Corporation’s
obligations to make any payments which have accrued prior to the date of such notice pursuant to the terms of this Certificate
of Designations or otherwise, In addition to all other remedies available to the Holder, the Holder, upon written notice to the
Corporation, the Corporation shall pay in cash to the Holder on each day after the Share Delivery Date that the issuance of such
shares of Common Stock is not timely effected an amount equal to 1% of the product of (A) the aggregate number of shares of Common
Stock not issued to the Holder on a timely basis and to which the Holder is entitled and (B) the Closing Sale Price of the Common
Stock on the Trading Day immediately preceding the last possible date on which the Corporation could have issued such shares of
Common Stock to the Holder). In addition to the foregoing, if the Corporation shall fail, for any reason or for no reason, to
issue to a Holder on or prior to the Share Delivery Date, a certificate to the Holder and register such shares of Common Stock
on the Corporation’s share register or credit the Holder’s or its designee’s balance account with DTC for the
number of shares of Common Stock to which the Holder is entitled upon the Holder’s conversion hereunder (as the case may
be), and if on or after such Share Delivery Date such Holder (or any other Person in respect, or on behalf, of the Holder) purchases
(in an open market transaction or otherwise) shares of Common Stock to deliver in satisfaction of a sale by the Holder of all
or any portion of the number of shares of Common Stock, or a sale of a number of shares of Common Stock equal to all or any portion
of the number of shares of Common Stock, issuable upon such conversion that such Holder so anticipated receiving from the Corporation,
then, in addition to all other remedies available to the Holder, the Corporation shall, within two (2) Business Days after receipt
of the Holder’s request and in the Holder’s discretion, either: (I) pay cash to the Holder in an amount equal to the
Holder’s total purchase price (including brokerage commissions and other out-of-pocket expenses, if any) for the shares
of Common Stock so purchased (including, without limitation, by any other Person in respect, or on behalf, of the Holder) (the
“Buy-In Price”), at which point the Corporation’s obligation to so issue and deliver such certificate
or credit the Holder’s balance account with DTC for the number of shares of Common Stock to which the Holder is entitled
upon the Holder’s conversion hereunder (as the case may be) (and to issue such shares of Common Stock) shall terminate,
or (II) promptly honor its obligation to so issue and deliver to the Holder a certificate or certificates representing such shares
of Common Stock or credit the Holder’s balance account with DTC for the number of shares of Common Stock to which the Holder
is entitled upon conversion and pay cash to such Holder in an amount equal to the excess (if any) of the Buy-In Price over the
product of (x) such number of shares of Common Stock multiplied by (y) the lowest Closing Sale Price of the Common Stock on any
Trading Day during the period commencing on the date of the applicable Conversion Notice and ending on the date of such issuance
and payment under this clause (ii).

 

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(iii)
Obligation Absolute. The Corporation’s obligation to issue and deliver the Conversion Shares upon conversion of Preferred
Stock in accordance with the terms hereof are absolute and unconditional, irrespective of any action or inaction by a Holder to
enforce the same, any waiver or consent with respect to any provision hereof, the recovery of any judgment against any Person
or any action to enforce the same, or any setoff, counterclaim, recoupment, limitation or termination, or any breach or alleged
breach by such Holder or any other Person of any obligation to the Corporation or any violation or alleged violation of law by
such Holder or any other person, and irrespective of any other circumstance which might otherwise limit such obligation of the
Corporation to such Holder in connection with the issuance of such Conversion Shares; provided, however, that such
delivery shall not operate as a waiver by the Corporation of any such action that the Corporation may have against such Holder.
In the event a Holder shall elect to convert any or all of the Stated Value of its Preferred Stock, the Corporation may not refuse
conversion based on any claim that such Holder or any one associated or affiliated with such Holder has been engaged in any violation
of law, agreement or for any other reason, unless an injunction from a court, on notice to Holder, restraining and/or enjoining
conversion of all or part of the Preferred Stock of such holder shall have been sought and obtained, and the Corporation posts
a surety bond for the benefit of such Holder in the amount of 150% of the Stated Value of Preferred Stock which is subject to
the injunction, which bond shall remain in effect until the completion of arbitration/litigation of the underlying dispute and
the proceeds of which shall be payable to such Holder to the extent it obtains judgment. In the absence of such injunction, the
Corporation shall issue Conversion Shares and, if applicable, cash, upon a properly noticed conversion. Nothing herein shall limit
a Holder’s right to pursue actual damages for the Corporation’s failure to deliver Conversion Shares within the period
specified herein and such Holder shall have the right to pursue all remedies available to it hereunder, at law or in equity including,
without limitation, a decree of specific performance and/or injunctive relief. The exercise of any such rights shall not prohibit
a Holder from seeking to enforce damages pursuant to any other Section hereof or under applicable law.

 

(iv) Reservation
of Shares Issuable Upon Conversion. The Corporation covenants that it will at all times reserve and keep available out of
its authorized and unissued shares of Common Stock for the sole purpose of issuance upon conversion of the Preferred
Stock and payment of dividends on the Preferred Stock, each as herein provided, free from preemptive rights or any other
actual contingent purchase rights of Persons other than the Holder (and the other holders of the Preferred Stock), not less
than 150% of such aggregate number of shares of the Common Stock (the “Required Reserve Amount”) as shall
(subject to the terms and conditions set forth in the Purchase Agreement) be issuable (taking into account the adjustments
and restrictions of Section 6) upon the conversion of the then outstanding shares of Preferred Stock and payment of dividends
hereunder. The Corporation covenants that all shares of Common Stock that shall be so issuable shall, upon issue, be duly
authorized, validly issued, fully paid and nonassessable and, if the Conversion Shares Registration Statement is then
effective under the Securities Act, shall be registered for public resale in accordance with such Conversion Shares
Registration Statement (subject to such Holder’s compliance with its obligations under the Registration Rights
Agreement). The Required Reserve Amount (including, without limitation, each increase in the number of shares so reserved)
shall be allocated pro rata among the Holders based on the number of the shares of Preferred Stock 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”). If at any time the number of authorized but unissued shares of Common Stock shall not be
sufficient to effect the conversion of all then outstanding shares of Preferred Stock (“Authorized Shares
Failure”), the Corporation shall take such corporate action as may be necessary to increase its authorized but
unissued shares of Common Stock to such number of shares as shall be sufficient for such purposes, including, without
limitation, engaging in best efforts to obtain the requisite stockholder approval of any necessary amendment to the
Certificate of incorporation, which actions shall include no later than seventy-five (75) days after the occurrence of such a
failure, the Corporation holding a meeting of its stockholders for the approval of an increase in the number of authorized
shares of Common Stock, In connection with such meeting, the Corporation shall provide each stockholder with a proxy
statement and shall use its reasonable best efforts to solicit its stockholders’ approval of such increase in
authorized shares of Common Stock and to cause its board of directors to recommend to the stockholders that they approve such
proposal. In the event that the Corporation is prohibited from issuing shares of Common Stock to a Holder upon any conversion
due to the failure by the Corporation to have sufficient shares of Common Stock available out of the authorized but unissued
shares of Common Stock (such unavailable number of shares of Common Stock, the “Authorized Failure Shares”), in
lieu of delivering such Authorized Failure Shares to such Holder, the Corporation shall pay cash in exchange for the
redemption of such portion of the Conversion Amount convertible into such Authorized Failure Shares at a price equal to the
sum of (i) the product of (x) such number of Authorized Failure Shares and (y) the greatest Closing Sale Price of the Common
Stock on any Trading Day during the period commencing on the date such Holder delivers the applicable Conversion Notice with
respect to such Authorized Failure Shares to the Corporation and ending on the date of such issuance and payment under
this clause (iv); and (ii) to the extent such Holder purchases (in an open market transaction or otherwise) shares of Common
Stock to deliver in satisfaction of a sale by such Holder of Authorized Failure Shares, any brokerage commissions, if any, of
such Holder incurred in connection therewith.

 

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(v)
Fractional Shares. No fractional shares or scrip representing fractional shares shall be issued upon the conversion of
the Preferred Stock. As to any fraction of a share which the Holder would otherwise be entitled to purchase upon such conversion,
the Corporation shall round up to the next whole share.

 

(vi)
Transfer Taxes and Expenses. The issuance of Conversion Shares on conversion of this Preferred Stock shall be made without
charge to any Holder for any documentary stamp or similar taxes that may be payable in respect of the issue or delivery of such
Conversion Shares, provided that the Corporation shall not be required to pay any tax that may be payable in respect of any transfer
involved in the issuance and delivery of any such Conversion Shares upon conversion in a name other than that of the Holders of
such shares of Preferred Stock and the Corporation shall not be required to issue or deliver such Conversion Shares unless or
until the Person or Persons requesting the issuance thereof shall have paid to the Corporation the amount of such tax or shall
have established to the satisfaction of the Corporation that such tax has been paid. The Corporation shall pay all Transfer Agent
fees required for same-day processing of any Notice of Conversion and all fees to the Depository Trust Company (or another established
clearing corporation performing similar functions) required for same-day electronic delivery of the Conversion Shares.

 

(vii)
Beneficial Ownership. Notwithstanding anything to the contrary contained in this Certificate of Designations, the Preferred
Stock held by a Holder shall not be convertible by such Holder, and the Corporation shall not effect any conversion of any Preferred
Stock held by such Holder, to the extent (but only to the extent) that such Holder or any of its affiliates would beneficially
own in excess of 4.99% (the “Maximum Percentage”) of the Common Stock. To the extent the above limitation applies,
the determination of whether the Preferred Stock held by such Holder shall be convertible (vis-n-vis other convertible, exercisable
or exchangeable securities owned by such Holder or any of its affiliates) and of which such securities shall be convertible, exercisable
or exchangeable (as among all such securities owned by such Holder and its affiliates) shall, subject to such Maximum Percentage
limitation, be determined on the basis of the first submission to the Corporation for conversion, exercise or exchange (as the
case may be). No prior inability of a Holder to convert Preferred Stock, or of the Corporation to issue shares of Common Stock
to such Holder, pursuant to this clause (vii) shall have any effect on the applicability of the provisions of this clause (vii)
with respect to any subsequent determination of convertibility or issuance (as the case may be). For purposes of this clause (vii),
beneficial ownership and all determinations and calculations (including, without limitation, with respect to calculations of percentage
ownership) shall be determined in accordance with Section 13(d) of the 1934 Act and the rules and regulations promulgated thereunder.
The provisions of this clause (vii) shall be implemented in a manner otherwise than in strict conformity with the terms of this
clause (vii) to correct this clause (vii) (or any portion hereof) which may be defective or inconsistent with the intended Maximum
Percentage beneficial ownership limitation herein contained or to make changes or supplements necessary or desirable to properly
give effect to such Maximum Percentage limitation, The limitations contained in this clause (vii) shall apply to a successor holder
of Preferred Stock. The holders of Common Stock shall be third party beneficiaries of this clause (vii) and the Corporation may
not waive this clause (vii) without the consent of holders of a majority of its Common Stock. For any reason at any time, upon
the written or oral request of a Holder, the Corporation shall within one (1) Business Day confirm orally and in writing to such
Holder the number of shares of Common Stock then outstanding, including by virtue of any prior conversion or exercise of convertible
or exercisable securities into Common Stock, including, without limitation, pursuant to this Certificate of Designations. By written
notice to the Corporation, any Holder may increase or decrease the Maximum Percentage to any other percentage not in excess of
9.99% specified in such notice; provided that (i) any such increase will not be effective until the 61st day after such notice
is delivered to the Corporation, and (ii) any such increase or decrease will apply only to such Holder sending such notice.

 

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(viii) Principal
Market Regulation. The Corporation shall not issue any shares of Common Stack upon conversion of any Preferred Stock or
otherwise pursuant to the terms of this Certificate of Designations if the issuance of such shares of Common Stock
would exceed the aggregate number of shares of Common Stock which the Corporation may issue upon conversion of the Preferred
Stock or otherwise pursuant to the terms of this Certificate of Designations without breaching the Corporation’s
obligations under the rules or regulations of the Trading Market (the number of shares which may be issued without violating
such rules and regulations, the “Exchange Cap”), except that such limitation shall not apply in the event
that the Corporation (A) obtains the approval of its stockholders as required by the applicable rules of the Principal Market
for issuances of shares of Common Stock in excess of such amount, (B) obtains a written opinion from outside counsel to the
Corporation that such approval is not required, which opinion shall be reasonably satisfactory to the holders of a majority
of the outstanding shares of Preferred Stock or (C) issues the Preferred Stock through an effective registration statement in
connection with a public offering in accordance with the rules and regulations of the Trading Market. Until such approval or
such written opinion is obtained, or unless such effective registration statement is available, no Holder shall be issued in
the aggregate, upon conversion of any Preferred Stock or otherwise pursuant to the terms of this Certificate of Designations,
shares of Common Stock in an amount greater than the product of (i) the Exchange Cap as of the Initial Issuance Date
multiplied by (ii) the quotient of (1) the aggregate original Stated Value of the Preferred Stock issued to such Holder
divided by (2) the aggregate original Stated Value of the Preferred Stock issued to all Holders (with respect to each Holder,
the “Exchange Cap Allocation”). In the event that any Holder shall sell or otherwise transfer any of such
Holder’s shares of Preferred Stock, the transferee shall be allocated a pro rata portion of such Holder’s
Exchange Cap Allocation with respect to such portion of such Preferred Stock so transferred, and the restrictions of the
prior sentence shall apply to such transferee with respect to the portion of the Exchange Cap Allocation so allocated to such
transferee. Upon conversion in full of a Holder’s Preferred Stock, the difference (if any) between such Holder’s
Exchange Cap Allocation and the number of shares of Common Stock actually issued to such Holder upon such Holder’s
conversion in full of such Preferred Stock shall be allocated to the respective Exchange Cap Allocations of the remaining
Holders of Preferred Stock on a pro rata basis in proportion to the shares of Common Stock underlying the Preferred Stock
then held by each such Holder of Preferred Stock. In the event that the Corporation is prohibited from issuing any shares of
Common Stock pursuant to this Section 5(c)(viii) (the “Exchange Cap Shares”) to a Holder, the
Corporation shall pay cash to such Holder in exchange for the redemption of such number of shares of Preferred Stock held by
the Holder that are not convertible into such Exchange Cap Shares at a price equal to the sum of (i) the product of (x) such
number of Exchange Cap Shares and (y) the Closing Sale Price on the Trading Day immediately preceding the date such Holder
delivers the applicable Conversion Notice with respect to such Exchange Cap Shares to the Corporation and (ii) to the extent
such Holder purchases (in an open market transaction or otherwise) shares of Common Stock to deliver in satisfaction of a
sale by such Holder of Exchange Cap Shares, brokerage commissions, if any, of such Holder incurred in connection
therewith.

 

Section
6. Certain Adjustments. 

 

(a) Stock
Dividends and Stock Splits. If the Corporation, at any time while this Preferred Stock is outstanding: (i) pays a stock
dividend or otherwise makes a distribution or distributions payable in shares of Common Stock on shares of Common Stock or
any other Common Stock Equivalents (which, for avoidance of doubt, shall not include any shares of Common Stock issued by
the Corporation upon conversion of, or payment of a dividend on, this Preferred Stock), (ii) subdivides outstanding shares of
Common Stock into a larger number of shares, (iii) combines (including by way of a reverse stock split) outstanding shares of
Common Stock into a smaller number of shares, or (iv) issues, in the event of a reclassification of shares of the Common
Stock, any shares of capital stock of the Corporation, then the Conversion Price shall be multiplied by a fraction of which
the numerator shall be the number of shares of Common Stock (excluding any treasury shares of the Corporation) outstanding
immediately before such event, and of which the denominator shall be the number of shares of Common Stock outstanding
immediately after such event. Any adjustment made pursuant to this Section 6(a) shall become effective immediately after the
record date for the determination of stockholders entitled to receive such dividend or distribution and shall become
effective immediately after the effective date in the case of a subdivision, combination or re-classification.

 

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(b) Fundamental
Transaction. If, at any time while this Preferred Stock is outstanding, (i) the Corporation, directly or indirectly,
in one or more related transactions effects any merger or consolidation of the Corporation with or into another Person,
(ii) the Corporation, directly or indirectly, effects any sale, lease, license, assignment, transfer, conveyance or
other disposition of all or substantially all of its assets in one or a series of related transactions, (iii) any, direct
or indirect, purchase offer, tender offer or exchange offer (whether by the Corporation or another Person) is completed
pursuant to which holders of Common Stock are permitted to sell, tender or exchange their shares for other securities, cash
or property and has been accepted by the holders of 50% or more of the outstanding Common Stock, (iv) the Corporation,
directly or indirectly, in one or more related transactions effects any reclassification, reorganization or recapitalization
of the Common Stock or any compulsory share exchange pursuant to which the Common Stock is effectively converted into or
exchanged for other securities, cash or property, or (v) the Corporation, directly or indirectly, in one or more related
transactions consummates a stock or share purchase agreement or other business combination (including, without limitation,
a reorganization, recapitalization, spin-off or scheme of arrangement) with another Person whereby such other Person
acquires 50% or more of the outstanding shares of Common Stock (not including any shares of Common Stock 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) (each a “Fundamental Transaction”), then, upon
any subsequent conversion of this Preferred Stock, the Holder shall have the right to receive, for each Conversion Share
that would have been issuable upon such conversion immediately prior to the occurrence of such Fundamental Transaction, the
number of shares of Common Stock of the successor or acquiring corporation or of the Corporation, if it is the
surviving corporation. The Corporation shall cause any successor entity in a Fundamental Transaction in which the Corporation
is not the survivor (the “Successor Entity”) to assume in writing all of the obligations of the
Corporation under this Certificate of Designation and the other Transaction Documents (as defined in the Purchase Agreement)
in accordance with the provisions of this Section 6(d) pursuant to written agreements in form and substance reasonably
satisfactory to the Holder and approved by the Holder (without unreasonable delay) prior to such Fundamental Transaction and
shall, at the option of the holder of this Preferred Stock, deliver to the Holder in exchange for this Preferred Stock a
security of the Successor Entity evidenced by a written instrument substantially similar in form and substance to this
Preferred Stock which is convertible for a corresponding number of shares of capital stock of such Successor Entity (or its
parent entity) equivalent to the shares of Common Stock acquirable and receivable upon conversion of this Preferred Stock
(without regard to any limitations on the conversion of this Preferred Stock) prior to such Fundamental Transaction, and with
a conversion price which applies the conversion price hereunder to such shares of capital stock (but taking into account the
relative value of the shares of Common Stock pursuant to such Fundamental Transaction and the value of such shares of capital
stock, such number of shares of capital stock and such conversion price being for the purpose of protecting the economic
value of this Preferred Stock immediately prior to the consummation of such Fundamental Transaction), and which is
reasonably satisfactory in form and substance to the Holder. Upon the occurrence of any such 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 and the other Transaction Documents referring to the
“Corporation” shall refer instead to the Successor Entity), and may exercise every right and power of the
Corporation and shall assume all of the obligations of the Corporation under this Certificate of Designation and the other
Transaction Documents with the same effect as if such Successor Entity had been named as the Corporation herein.

 

(c)
Calculations. All calculations under this Section 6 shall be made to the nearest cent or the nearest 1/100th of a share,
as the case may be. For purposes of this Section 6, the number of shares of Common Stock deemed to be issued and outstanding as
of a given date shall be the sum of the number of shares of Common Stock (excluding any treasury shares of the Corporation) issued
and outstanding.

 

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(d)
Notice to the Holders. Whenever the Conversion Price is adjusted pursuant to any provision of this Section 6, the Corporation
shall promptly deliver to each Holder by facsimile or email a notice setting forth the Conversion Price after such adjustment
and setting forth a brief statement of the facts requiring such adjustment.

 

(e)
Issuance of Securities Below the Conversion Price. In addition to and not in limitation of any other provisions of this
paragraph 6, if and whenever on or after the Original Issue Date of the Preferred Stock, the Corporation issues or sells, or in
accordance with this subparagraph 6(e) is deemed to have issued or sold, any securities (including the issuance or sale of shares
of Common Stock or Common Stock Equivalents owned or held by or for the account of the Corporation, but excluding any Exempt Issuance,
issued or sold or deemed to have been issued or sold) for a consideration per share (the “New Issuance Price”)
less than a price equal to the Conversion Price in effect immediately prior to such issue or sale or deemed issuance or sale
(such Conversion Price then in effect is referred to as the “Applicable Price”) (the foregoing a “Dilutive
Issuance”), then immediately after such Dilutive Issuance, the Conversion Price then in effect shall be automatically
reduced to an amount equal to the New Issuance Price. For purposes of determining the adjusted Conversion Price under this subparagraph
7(e), the following shall be applicable:

 

(i)
Issuance of Options (other than Exempt Issuances). If the Corporation in any manner grants or sells any options (other
than Exempt Issuances) and the lowest price per share for which one share of Common Stock is issuable upon the exercise of any
such option or upon conversion, exercise or exchange of any convertible securities issuable upon exercise of any such option is
less than the Applicable Price, then such share of Common Stock shall be deemed to be outstanding and to have been issued and
sold by the Corporation at the time of the granting or sale of such option for such price per share. For purposes of this subparagraph
7(e)(i), the “lowest price per share for which one share of Common Stock is issuable upon the exercise of any such options
or upon conversion, exercise or exchange of any convertible securities issuable upon exercise of any such option” shall
be equal to (1) the lower of (x) the sum of the lowest amounts of consideration (if any) received or receivable by the Corporation
with respect to any one share of Common Stock upon the granting or sale of such option, upon exercise of such option and upon
conversion, exercise or exchange of any convertible security issuable upon exercise of such option and (y) the lowest exercise
price set forth in such option for which one share of Common Stock is issuable upon the exercise of any such options or upon conversion,
exercise or exchange of any convertible securities issuable upon exercise of any such option minus (2) the sum of all amounts
paid or payable to the holder of such option (or any other person) upon the granting or sale of such option, upon exercise of
such option and upon conversion, exercise or exchange of any convertible security issuable upon exercise of such option plus the
value of any other consideration received or receivable by, or benefit conferred on, the holder of such option (or any other person).
Except as contemplated below, no further adjustment of the Conversion Price shall be made upon the actual issuance of such shares
of Common Stock or of such convertible securities upon the exercise of such options or upon the actual issuance of such shares
of Common Stock upon conversion, exercise or exchange of such convertible securities.

 

(ii) Issuance
of Common Stock Equivalents (other than Exempt Issuances). If the Corporation in any manner issues or sells any Common
Stock Equivalents (other than Exempt Issuances) and the lowest price per share for which one share of Common Stock is
issuable upon the conversion, exercise or exchange thereof is less than the Applicable Price, then such share of Common Stock
shall be deemed to be outstanding and to have been issued and sold by the Corporation at the time of the issuance or sale of
such convertible securities for such price per share. For the purposes of this subparagraph 7(e)(ii), the “lowest price
per share for which one share of Common Stock is issuable upon the conversion, exercise or exchange thereof’ shall be
equal to (1) the lower of (x) the sum of the lowest amounts of consideration (if any) received or receivable by the
Corporation with respect to one share of Common Stock upon the issuance or sale of the convertible security and upon
conversion, exercise or exchange of such convertible security and (y) the lowest conversion price set forth in such
convertible security for which one share of Common Stock is issuable upon conversion, exercise or exchange thereof minus (2)
the sum of all amounts paid or payable to the holder of such convertible security (or any other person) upon the issuance or
sale of such convertible security plus the value of any other consideration received or receivable by, or benefit conferred
on, the holder of such convertible security (or any other person). Except as contemplated below, no further adjustment of the
Conversion Price shall be made upon the actual issuance of such shares of Common Stock upon conversion, exercise or exchange
of such convertible securities, and if any such issue or sale of such convertible securities is made upon exercise of any
options for which adjustment has been or is to be made pursuant to other provisions of this subparagraph 7(e)(ii), except as
contemplated below, no further adjustment of the Conversion Price shall be made by reason of such issue or sale.

 

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(iii)
Change in Option Price or Rate of Conversion (other than Exempt Issuances). If the purchase or exercise price provided
for in any options (other than Exempt Issuances), the additional consideration, if any, payable upon the issue, conversion, exercise
or exchange of any convertible securities, or the rate at which any convertible securities are convertible into or exercisable
or exchangeable for shares of Common Stock increases or decreases at any time, the Conversion Price in effect at the time of such
increase or decrease shall be adjusted to the Conversion Price which would have been in effect at such time had such options or
convertible securities provided for such increased or decreased purchase price, additional consideration or increased or decreased
conversion rate, as the case may be, at the time initially granted, issued or sold. For purposes of this subparagraph 7(e)(iii,
if the terms of any option or convertible security that was outstanding as of the Original issue Date are increased or decreased
in the manner described in the immediately preceding sentence, then such option or convertible security and the shares of common
stock deemed issuable upon exercise, conversion or exchange thereof shall be deemed to have been issued as of the date of such
increase or decrease. No adjustment pursuant to this subparagraph 7(e)(iii) shall be made if such adjustment would result in an
increase of the Conversion Price then in effect.

 

(iv)
Calculation of Consideration Received for issuances other than Exempt Issuances. In case any option and/or convertible
security, other than Exempt Issuances, is issued in connection with the issue or sale of other securities of the Corporation together
comprising one integrated transaction in which no specific consideration is allocated to such options by the parties thereto,
(x) the options will be deemed to have been issued for the option value of such options and (y) the other securities issued or
sold in such integrated transaction shall be deemed to have been issued or sold for the difference of (I) the aggregate consideration
received by the Corporation less any consideration paid or payable by the Corporation pursuant to the terms of such other securities
of the Corporation, less (II) the option value. If any shares of Common Stock, options or convertible securities are issued or
sold or deemed to have been issued or sold for cash, the consideration received therefor will be deemed to be the net amount received
by the Corporation therefor. If any shares of Common Stock, options or convertible securities are issued or sold for a consideration
other than cash, the amount of such consideration other than cash received by the Corporation will be the fair value of such consideration,
except where such consideration consists of publicly traded securities, in which case the amount of consideration received by
the Corporation for such securities will be the last reported Closing Sale Price or Closing Bid Price (as the case may be) of
such security on the date of receipt. If any shares of Common Stock, options or convertible securities are issued to the owners
of the non-surviving entity in connection with any merger in which the Corporation is the surviving entity, the amount of consideration
therefor will be deemed to be the fair value of such portion of the net assets and business of the non-surviving entity as is
attributable to such shares of Common Stock, options or convertible securities, as the case may be. The fair value of any consideration
other than cash or publicly traded securities will be determined by the Board of Directors of the Corporation in good faith. For
the purposes hereof, the “option value” shall be equal to the sum of the lowest amounts of consideration (if any)
received or receivable by the Corporation with respect to any one share of Common Stock upon the granting or sale of the option,
upon exercise of the option and upon conversion, exercise or exchange of any convertible security issuable upon exercise of such
option less any consideration paid or payable by the Corporation with respect to such one share of Common Stock upon the granting
or sale of such option, upon exercise of such option and upon conversion exercise or exchange of any convertible security issuable
upon exercise of such option.

 

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Section
7. Mandatory Redemption. 

 

(a)
Mandatory Redemptions. 

 

i.
On the thirty (30) day anniversary of the Original Issue Date (the “Initial Mandatory Redemption Date”), the
Corporation shall redeem a number of shares of Preferred Stock equal to $3,000,000 of Stated Value on a pro rata basis
among all of the Holders, for an amount in cash equal to the Initial Mandatory Redemption Amount (such redemption, the “Initial
Mandatory Redemption”). On the sixty (60) day anniversary of the Original Issue Date (the “Second Mandatory
Redemption Date”), the Corporation shall redeem a number of shares of Preferred Stock equal to $2,500,000 of Stated
Value on a pro rata basis among all of the Holders, for an amount in cash equal to the Second Mandatory Redemption Amount
(such redemption, the “Second Mandatory Redemption”). On the Ninety (90) day anniversary of the Original Issue
Date (the “Third Mandatory Redemption Date”), the Corporation shall redeem a number of shares of Preferred
Stock equal to $500,000 of Stated Value on a pro rata basis among all of the Holders, for an amount in cash equal to the
Third Mandatory Redemption Amount (such redemption, the “Third Mandatory Redemption”). If funds are not legally
available for the payment of Initial Mandatory Redemption, the Second Mandatory Redemption or the Third Mandatory Redemption,
then such Mandatory Redemption Amount owed on such date shall be accreted to, and increase, the outstanding Stated Value. The
Initial Mandatory Redemption Amount is payable in full on the Initial Mandatory Redemption Date, the Second Mandatory Redemption
is payable in full on the Second Mandatory Redemption Date and the Third Mandatory Redemption is payable in full on the Third
Mandatory Redemption Date. Without limitation and in addition to any other provisions in this Certificate of Designation with
respect to the Holders’ conversion rights, the Corporation covenants and agrees that it will honor all Notices of Conversion
with respect to the Mandatory Redemption Amount tendered up until the Initial, Second and Third Mandatory Redemption Amounts are
paid in full.

 

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(b)
Additional Triggering Events. Upon the occurrence of an Additional Triggering Event with respect to the Preferred Stock,
the Corporation shall within one (1) Business Day deliver written notice thereof via facsimile or electronic mail and
overnight courier (with next day delivery specified) (a “Triggering Event Notice”) to each Holder. At any
time after the earlier of a Holder’s receipt of a Triggering Event Notice and such Holder becoming aware of an
Additional Triggering Event (such earlier date, the “Triggering Event Right Commencement Date”) and ending
(such ending date, the “Triggering Event Right Expiration Date”, and each such period, a
“Triggering Event Redemption Right Period”) on the twentieth (20th) Trading Day after the later of (x) the
date such Additional Triggering Event is cured and (y) such Holder’s receipt of a Triggering Event Notice that
includes (I) a reasonable description of the applicable Additional Triggering Event, (II) a certification as to whether, in
the opinion of the Corporation, such Additional Triggering Event is capable of being cured and, if applicable, a reasonable
description of any existing plans of the Corporation to cure such Additional Triggering Event and (III) a certification as to
the date the Additional Triggering Event occurred and, if cured on or prior to the date of such Additional Triggering Event
Notice, the applicable Triggering Event Right Expiration Date, such Holder may require the Corporation to redeem (regardless
of whether such Additional Triggering Event has been cured on or prior to the Triggering Event Right Expiration Date) all or
any of the Preferred Shares by delivering written notice thereof (the “Triggering Event Redemption Notice”) to
the Corporation, which Triggering Event Redemption Notice shall indicate the number of the shares of Preferred Stock such
Holder is electing to redeem. Each of the shares of Preferred Stock subject to redemption by the Corporation pursuant to this
Section 8(b) shall be redeemed by the Corporation at a price equal to the greater of (i) the product of (A) the Conversion
Amount to be redeemed multiplied by (B) 110% and (ii) the product of (X) the Conversion Rate with respect to the
Conversion Amount in effect at such time as such Holder delivers a Triggering Event Redemption Notice multiplied by (Y) the
product of (1) 110% by (2) the greatest Closing Sale Price of the Common Stock on any Trading Day during the period
commencing on the date immediately preceding such Triggering Event and ending on the date the Corporation makes the entire
payment required to be made under this Section 8(b) (the “Triggering Event Redemption Price”) Redemptions
required by this Section 8(b) shall be made in accordance with the provisions of Section 8(c). To the extent redemptions
required by this Section 8(b) are deemed or determined by a court of competent jurisdiction to be prepayments of the
Preferred Stock by the Corporation, such redemptions shall be deemed to be voluntary prepayments. Notwithstanding anything to
the contrary in this Section 8(b), but subject to clauses (vii) and (viii) of Section 6(c) until the Triggering Event
Redemption Price (together with any late charges thereon) is paid in full, the Conversion Amount submitted for redemption
under this Section 8(b) (together with any Late Charges thereon) may be converted, in whole or in part, by such Holder into
Common Stock pursuant to the terms of this Certificate of Designations. In the event of the Corporation’s redemption of
any of the Preferred Stock under this Section 8(b), a Holder’s damages would be uncertain and difficult to estimate
because of the parties’ inability to predict future interest rates and the uncertainty of the availability of
a suitable substitute investment opportunity for such Holder. Accordingly, any redemption premium due under this Section 8(b)
is intended by the parties to be, and shall be deemed, a reasonable estimate of such Holder’s actual loss of its
investment opportunity and not as a penalty. Any redemption upon an Additional Triggering Event shall not constitute an
election of remedies by the applicable Holder or any other Holder, and all other rights and remedies of each Holder shall be
preserved. Notwithstanding anything to the contrary herein, and notwithstanding any conversion that is then required or in
process, upon any Bankruptcy Triggering Event, the Corporation shall immediately redeem, in cash, each of the shares of
Preferred Stock then outstanding at a redemption price equal to the applicable Triggering Event Redemption Price (calculated
as if such Holder shall have delivered the Triggering Event Redemption Notice immediately prior to the occurrence of such
Bankruptcy Triggering Event), without the requirement for any notice or demand or other action by any Holder or any other
person or entity, provided that a Holder may, in its sole discretion, waive such right to receive payment upon a Bankruptcy
Triggering Event, in whole or in part, and any such waiver shall not affect any other rights of such Holder or any other
Holder hereunder, including any other rights in respect of such Bankruptcy Triggering Event, any right to conversion, and any
right to payment of such Triggering Event Redemption Price or any other Redemption Price, as applicable.

 

(c)
If a Holder has submitted an Additional Triggering Event Redemption Notice in accordance with Section 7(c), the Corporation
shall deliver the applicable Triggering Event Redemption Price to such Holder in cash within five (5) Business Days after the
Corporation’s receipt of such Holder’s Triggering Event Redemption Notice. In the event that the Corporation does
not pay the applicable Redemption Price to a Holder within the time period required for any reason (except if such payment is
prohibited pursuant to the DGCL), at any time thereafter and until the Corporation pays such unpaid Redemption Price in full,
such Holder shall have the option, in lieu of redemption, to require the Corporation to promptly return to such Holder all or
any of the shares of Preferred Stock that were submitted for redemption and for which the applicable Redemption Price
(together with any late charges thereon) has not been paid. Upon the Corporation’s receipt of such notice, (x) the
applicable Redemption Notice shall be null and void with respect to such Preferred Stock, (y) the Corporation shall
immediately return the applicable Preferred Stock certificate, or issue a new Preferred Stock Certificate, to such Holder,
and in each case the declared and unpaid dividend amount of such Preferred Stock shall be increased by an amount equal to the
difference between (1) the applicable Redemption Price (as the case may be, and as adjusted pursuant to this Section 7(c), if
applicable) minus (2) the Stated Value portion of the Conversion Amount submitted for redemption and (z) the Conversion Price
of such Preferred Shares shall be automatically adjusted with respect to each conversion effected thereafter by such Holder
to the lowest of (A) the Conversion Price as in effect on the date on which the applicable Redemption Notice is voided, (B)
the greater of (x) the Floor Price and (y) 75% of the lowest Closing Bid Price of the Common Stock during the period
beginning on and including the date on which the applicable Redemption Notice is delivered to the Corporation and ending on
and including the date on which the applicable Redemption Notice is voided and (C) the greater of (x) the Floor Price and (y)
75% of the quotient of (I) the sum of the five (5) lowest VWAPs of the Common Stock during the twenty (20)
consecutive Trading Day period ending and including the Trading Day immediately preceding the applicable Conversion Date
divided by (II) five (5)(it being understood and agreed that all such determinations shall be appropriately adjusted for any
stock dividend, stock split, stock combination or other similar transaction during such period). A Holder’s delivery of
a notice voiding a Redemption Notice and exercise of its rights following such notice shall not affect the
Corporation’s obligations to make any payments of Late Charges which have accrued prior to the date of such notice with
respect to the Preferred Shares subject to such notice.

 

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(d)
Notwithstanding anything to the contrary in Section 7(b, the Corporation shall have no obligation to comply with such Section
7(c) at any time that (x) the Corporation does not have surplus under section 154 of the DGCL or funds legally available to redeem
all outstanding Preferred Stock, (y) the Corporation’s capital is impaired under Section 160 of the DGCL or (z) the redemption
of any Preferred Stock would result in an impairment of the Corporation’s capital under Section 160 of the DGCL; provided,
however that in the event that the Corporation does not comply with the provisions of Section 7 (c) by virtue of the restrictions
in this Section 8(g), the Corporation will comply with the provisions of Section 7 (c) promptly after such restrictions are no
longer applicable.

 

Section
8. Covenants. 

 

(a)
Amendments to Charter Documents. As long as any shares of Preferred Stock are outstanding, unless (i) the holders of at
least 51% in Stated Value of the then outstanding shares of Preferred Stock shall have otherwise given prior written consent,
or (ii) in connection with a transaction whereby all outstanding shares of Preferred Stock are redeemed for cash and all of the
notes of the Corporation issued on the Original Issue Date are repaid in full in cash, the Corporation shall not, and shall not
permit any of the Subsidiaries to, directly or indirectly amend its charter documents, including, without limitation, its certificate
of incorporation, bylaws and this Certificate of Designations, in any manner that materially and adversely affects any rights
of the Holder or enter into any agreement with respect to any of the foregoing.

 

(b)
Existence of Liens. The Corporation shall not, and the Corporation shall cause each of its Subsidiaries to not, directly
or indirectly, allow or suffer to exist any mortgage, lien, pledge, charge, security interest or other encumbrance upon or in
any property or assets (including accounts and contract rights) owned by the Corporation or any of its Subsidiaries (collectively,
“Liens”) other than Permitted Liens.

 

(b) Restricted
Payments. The Corporation shall not, and the Corporation shall cause each of its Subsidiaries to not, directly or
indirectly, redeem, defease, repurchase, repay or make any payments in respect of, by the payment of cash or cash
equivalents (in whole or in part, whether by way of open market purchases, tender offers, private transactions or otherwise),
all or any portion of any Indebtedness (other than any amounts payable pursuant to this Certificate of Designations) whether
by way of payment in respect of principal of (or premium, if any) or interest on, such Indebtedness if at the time such
payment is due or is otherwise made or, after giving effect to such payment, (i) an event constituting an Additional
Triggering Event has occurred and is continuing or (ii) an event that with the passage of time and without being cured would
constitute an Additional Triggering Event has occurred and is continuing. In addition, the Corporation shall not use any of
the proceeds from the sale of the Preferred Stock in excess of 5500,000 without the consent of the Holders of a majority of
the then outstanding Preferred Stock. The Corporation shall immediately segregate the proceeds from the sale of the Preferred
Stock into their own separate bank account and the Corporation shall, within twenty (20) days of the date hereof have the
Holders of a majority of the then outstanding Preferred Stock added as an authorized signatory to the bank account in which
such proceeds are held, such account to require the signature of such Holders prior to withdrawal of any funds in such
account.

 

(c)
Restriction on Transfer of Assets. The Corporation shall not, and the Corporation shall cause each of its Subsidiaries
to not, directly or indirectly, sell, lease, license, assign, transfer, spin-off, split-off, close, convey or otherwise dispose
of any assets or rights of the Corporation or any Subsidiary owned or hereafter acquired whether in a single transaction or a
series of related transactions to any Person(s) (including, without limitation, to any foreign Subsidiary) (each, an “Asset
Transfer”), other than (i) sales, leases, licenses, assignments, transfers, conveyances and other dispositions of such
assets or rights by the Corporation and its Subsidiaries in the ordinary course of business consistent with its past practice
and (ii) sales of inventory and product in the ordinary course of business.

 

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(d) Change
in Nature of Business. The Corporation shall not, and the Corporation shall cause each of its Subsidiaries to
not, directly or indirectly, engage in any material line of business substantially different from those lines of business
conducted by or publicly contemplated to be conducted by the Corporation and each of its Subsidiaries on the Original Issue
Date or any business substantially related or incidental thereto. The Corporation shall not, and the Corporation shall cause
each of its Subsidiaries to not, directly or indirectly, modify its or their corporate structure or purpose.

 

(e)
Preservation of Existence, Etc. The Corporation shall maintain and preserve, and cause each of its Subsidiaries to maintain
and preserve, its existence, rights and privileges, and become or remain, and cause each of its Subsidiaries to become or remain,
duly qualified and in good standing in each jurisdiction in which the character of the properties owned or leased by it or in
which the transaction of its business makes such qualification necessary.

 

(f)
Maintenance of Properties, Etc. The Corporation shall maintain and preserve, and cause each of its Subsidiaries to maintain
and preserve, all of its properties which are necessary or useful in the proper conduct of its business in good working order
and condition, ordinary wear and tear excepted, and comply, and cause each of its Subsidiaries to comply, at all times with the
provisions of all teases to which it is a party as lessee or under which it occupies property, so as to prevent any loss or forfeiture
thereof or thereunder.

 

(g)
Maintenance of Intellectual Property. The Corporation will, and will cause each of its Subsidiaries to, take all action
necessary or advisable to maintain all of the Intellectual Property Rights of the Corporation and/or any of its Subsidiaries that
are necessary or material to the conduct of its business in full force and effect.

 

(h)
Maintenance of Insurance. The Corporation shall maintain, and cause each of its Subsidiaries to maintain, insurance with
responsible and reputable insurance companies or associations (including, without limitation, comprehensive general liability,
hazard, rent and business interruption insurance) with respect to its properties (including all real properties leased or owned
by it) and business, in such amounts and covering such risks as is required by any governmental authority having jurisdiction
with respect thereto or as is carried generally in accordance with sound business practice by companies in similar businesses
similarly situated,

 

(i)
Transactions with Affiliates. The Corporation shall not, nor shall it permit any of its Subsidiaries to, enter into, renew,
extend or be a party to, any transaction or series of related transactions (including, without limitation, the purchase, sale,
lease, transfer or exchange of property or assets of any kind or the rendering of services of any kind) with any affiliate, except
in the ordinary course of business in a manner and to an extent consistent with past practice and necessary or desirable for the
prudent operation of its business, for fair consideration and on terms no less favorable to it or its Subsidiaries than would
be obtainable in a comparable arm’s length transaction with a Person that is not an affiliate thereof.

 

(j)
Variable Rate Transactions. So long as any Preferred Stock remain outstanding, the Corporation shall not, nor shall it
permit any of its Subsidiaries to, effect or enter into an agreement to effect any offering of securities involving a Variable
Rate Transaction without the prior written consent of the Holders, which consent may be withheld, delayed or conditioned in the
Holders’ sole discretion

 

Section
9. Distribution of Assets. If the Corporation shall declare or make any dividend or other distributions of its assets
(or rights to acquire its assets) to any or all holders of shares of Common Stock, by way of return of capital or otherwise (including
without limitation, any distribution of cash, stock or other securities, property or options by way of a dividend, spin off, reclassification,
corporate rearrangement, scheme of arrangement or other similar transaction) (the “Distributions”), then each
Holder, as a holder of Preferred Stock, will be entitled to such Distributions as if such Holder had held the number of shares
of Common Stock acquirable upon complete conversion of the Preferred Stock (without taking into account any limitations or restrictions
on the convertibility of the Preferred Stock) immediately prior to the date on which a record is taken for such Distribution or,
if no such record is taken, the date as of which the record holders of Common Stock are to be determined for such Distributions
(provided, however, that to the extent that such Holder’s right to participate in any such Distribution would
result in such Holder exceeding the Maximum Percentage, then such Holder shall not be entitled to participate in such Distribution
to such extent (and shall not be entitled to beneficial ownership of such shares of Common Stock as a result of such Distribution
(and beneficial ownership) to such extent) and the portion of such Distribution shall be held in abeyance for such Holder until
such time or times as its right thereto would not result in such Holder exceeding the Maximum Percentage, at which time or times,
if any, such Holder shall be granted such rights (and any rights under this Section 9 on such initial rights or on any subsequent
such rights to be held similarly in abeyance) to the same extent as if there had been no such limitation).

 

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Section
10. Miscellaneous.

 

(a)
Notices. Any and all notices or other communications or deliveries to be provided by the Holders hereunder including, without
limitation, any Notice of Conversion, shall be in writing and delivered personally, by facsimile or e-mail attachment, or sent
by a nationally recognized overnight courier service, addressed to the Corporation, at the address set forth above Attention:
Secretary, facsimile number +30 (210) 876-4877, e-mail address gs@stellaracquisition.com, or such other facsimile number,
e-mail address or address as the Corporation may specify for such purposes by notice to the Holders delivered in accordance with
this Section 10. Any and all notices or other communications or deliveries to be provided by the Corporation hereunder shall be
in writing and delivered personally, by facsimile or e-mail attachment, or sent by a nationally recognized overnight courier service
addressed to each Holder at the facsimile number, email address or address of such Holder appearing on the books of the Corporation,
or if no such facsimile number, e-mail address or address appears on the books of the Corporation, at the principal place of business
of such Holder, as set forth in the Purchase Agreement. Any notice or other communication or deliveries hereunder shall be deemed
given and effective on the earliest of (i) the date of transmission, if such notice or communication is delivered via facsimile
at the facsimile number or e-mail attachment at the e-mail address set forth in this Section prior to 5:30 p.m. (New York City
time) on any date, (ii) the next Trading Day after the date of transmission, if such notice or communication is delivered via
facsimile at the facsimile number or e-mail attachment at the e-mail address set forth in this Section on a day that is not a
Trading Day or later than 5:30 p.m. (New York City time) on any Trading Day, (iii) the second Trading Day following the date of
mailing, if sent by U.S. nationally recognized overnight courier service, or (iv) upon actual receipt by the party to whom such
notice is required to be given.

 

(b)
Absolute Obligation. Except as expressly provided herein, no provision of this Certificate of Designation shall alter or
impair the obligation of the Corporation, which is absolute and unconditional, to pay liquidated damages, accrued dividends and
accrued interest, as applicable, on the shares of Preferred Stock at the time, place, and rate, and in the coin or currency, herein
prescribed.

 

(c)
Lost or Mutilated Preferred Stock Certificate. If a Holder’s Preferred Stock certificate shall be mutilated, lost,
stolen or destroyed, the Corporation shall execute and deliver, in exchange and substitution for and upon cancellation of a mutilated
certificate, or in lieu of or in substitution for a lost, stolen or destroyed certificate, a new certificate for the shares of
Preferred Stock so mutilated, lost, stolen or destroyed, but only upon receipt of evidence of such loss, theft or destruction
of such certificate, and of the ownership hereof reasonably satisfactory to the Corporation.

 

(d)
Governing Law. All questions concerning the construction, validity, enforcement and interpretation of this Certificate
of Designation shall be governed by and construed and enforced in accordance with the internal laws of the State of Delaware,
without regard to the principles of conflict of laws thereof. All legal proceedings concerning the interpretation, enforcement
and defense of the transactions contemplated by any of the Transaction Documents (whether brought against a party hereto or its
respective Affiliates, directors, officers, shareholders, employees or agents) shall be commenced in the state and federal courts
sitting in the City of New York, Borough of Manhattan (the “New York Courts”). The Corporation and each Holder
hereby irrevocably submits to the exclusive jurisdiction of the New York Courts for the adjudication of any dispute hereunder
or in connection herewith or with any transaction contemplated hereby or discussed herein (including with respect to the enforcement
of any of the Transaction Documents), 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 such New York Courts, or such New York Courts are improper
or inconvenient venue for such proceeding. The Corporation and each Holder 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 via registered or certified
mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Certificate
of Designation 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 other manner permitted by applicable law.
The Corporation and each Holder hereby irrevocably waives, to the fullest extent permitted by applicable law, any and all right
to trial by jury in any legal proceeding arising out of or relating to this Certificate of Designation or the transactions contemplated
hereby. If the Corporation or any Holder shall commence an action or proceeding to enforce any provisions of this Certificate
of Designation, then the prevailing party in such action or proceeding shall be reimbursed by the other party for its attorneys’
fees and other costs and expenses incurred in the investigation, preparation and prosecution of such action or proceeding.

 

    24

     

    

 

(e)
Waiver. Any waiver by the Corporation or a Holder of a breach of any provision of this Certificate of Designation shall
not operate as or be construed to be a waiver of any other breach of such provision or of any breach of any other provision of
this Certificate of Designation or a waiver by any other Holders. The failure of the Corporation or a Holder to insist upon strict
adherence to any term of this Certificate of Designation on one or more occasions shall not be considered a waiver or deprive
that party (or any other Holder) of the right thereafter to insist upon strict adherence to that term or any other term of this
Certificate of Designation on any other occasion. Any waiver by the Corporation or a Holder must be in writing. Notwithstanding
the foregoing, nothing contained in this Section 10(e) shall permit any waiver of any provision of Section 5(c)(vii).

 

(f)
Severability. If any provision of this Certificate of Designation is invalid, illegal or unenforceable, the balance of
this Certificate of Designation shall remain in effect, and if any provision is inapplicable to any Person or circumstance, it
shall nevertheless remain applicable to all other Persons and circumstances. If it shall be found that any interest or other amount
deemed interest due hereunder violates the applicable law governing usury, the applicable rate of interest due hereunder shall
automatically be lowered to equal the maximum rate of interest permitted under applicable law.

 

(g) Next
Business Day.  Whenever any payment or other obligation hereunder shall be due on a day other than a Business Day, such
payment shall be made on the next succeeding Business Day.

 

(h)
Headings. The headings contained herein are for convenience only, do not constitute a part of this Certificate of Designation
and shall not be deemed to limit or affect any of the provisions hereof.

 

(i)
Status of Converted or Redeemed Preferred Stock. Shares of Preferred Stock may only be issued pursuant to the Purchase
Agreement. If any shares of Preferred Stock shall be converted, redeemed or reacquired by the Corporation, such shares shall resume
the status of authorized but unissued shares of preferred stock and shall no longer be designated as Series A 8% Convertible Preferred
Stock.

 

(j) Transfer
of Preferred Stock.  A Holder may transfer some or all of its Preferred Stock without the consent of the
Corporation

 

(k)
Dispute Resolution. 

 

(i)
In the case of a dispute relating to a Closing Bid Price, a Closing Sale Price, a Conversion Price, a VWAP or a fair market
value or the arithmetic calculation of a Conversion Rate, or the applicable Redemption Price (as the case may be) (including,
without limitation, a dispute relating to the determination of any of the foregoing), the Corporation or the applicable
Holder (as the case may be) shall submit the dispute to the other party via facsimile or electronic mail (A) if by the
Corporation, 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
Corporation are unable to promptly resolve such dispute relating to such Closing Bid Price, such Closing Sale Price, such
Conversion Price, such VWAP or such fair market value, or the arithmetic calculation of such Conversion Rate or such
applicable Redemption Price (as the case may be), at any time after the second (2nd) Business Day following such initial
notice by Corporation or such Holder (as the case may be) of such dispute to the Corporation or such Holder (as the case may
be), then such Holder may, at its sole option, select an independent, reputable investment bank to resolve such
dispute.

 

    25

     

    

 

(ii)
Such Holder and the Corporation 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 9(k) 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 Corporation 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 Corporation and such Holder or otherwise requested by such investment bank, neither the Corporation
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).

 

(iii)
The Corporation and such Holder shall cause such investment bank to determine the resolution of such dispute and notify the Corporation
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 Corporation, and such investment bank’s resolution
of such dispute shall be final and binding upon all parties absent manifest error.

 

*********************

 

    26

     

    

 

RESOLVED,
FURTHER, that the Chairman, the president or any vice-president, and the secretary or any assistant secretary, of the Corporation
be and they hereby are authorized and directed to prepare and file this Certificate of Designation of Preferences, Rights and
Limitations in accordance with the foregoing resolution and the provisions of Delaware law.

 

IN
WITNESS WHEREOF, the undersigned have executed this Certificate this 26th day of December 2018.

 

	/s/ Prokopios (Akis) Tsirigakis	 	/s/ George Syllantavos 
	Name: Prokopios (Akis) Tsirigakis	 	Name: George Syllantavos
	Title: President	 	Title: Secretary

 

     

     

    

 

ANNEX A

 

NOTICE OF CONVERSION

 

(TO BE EXECUTED BY THE REGISTERED HOLDER
IN ORDER TO CONVERT

SHARES OF PREFERRED STOCK)

 

The undersigned hereby elects to convert the
number of shares of Series A 8% Convertible Preferred Stock indicated below into shares of common stock, par value $0.0001 per
share (the “Common Stock”), of Phunware Inc., a Delaware corporation (the “Corporation”),
according to the conditions hereof, as of the date written below. If shares of Common Stock are to be issued in the name of a
Person other than the undersigned, the undersigned will pay all transfer taxes payable with respect thereto and is delivering
herewith such certificates and opinions as may be required by the Corporation in accordance with the Purchase Agreement. No fee
will be charged to the Holders for any conversion, except for any such transfer taxes.

 

Conversion calculations:

 

Date to Effect Conversion:                                                                                                                               

 

Number of shares of Preferred Stock owned prior to
Conversion:                                                             

 

Number of shares of Preferred Stock to be Converted:
                                                                              

 

Stated Value of shares of Preferred Stock to be Converted:
                                                                      

 

Number of shares of Common Stock to be Issued:                                                                                      

 

Applicable Conversion Price:                                                                                                                          

 

Number of shares of Preferred Stock subsequent to
Conversion:                                                           

 

Address for Delivery:                                                                               

or

 

DWAC Instructions:

Broker no:                    

Account no:               

 

	 	[HOLDER]
	 	 	 
	 	By:	 
	 	 	Name: 
	 	 	Title:

 

     

     

    

 

EXHIBIT B

 

REGISTRATION RIGHTS AGREEMENT

 

(Attached)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     

     

    

 

EXECUTION VERSION

 

REGISTRATION RIGHTS AGREEMENT

 

This Registration Rights
Agreement (this “Agreement”) is made and entered into as of December 26, 2018, between Phunware Inc., a Delaware
corporation (“Phunware,” as the successor entity to Stellar Acquisition III Inc., a Republic of Marshall Islands corporation
(“Stellar”), following the Conversion (as hereinafter defined) of Stellar into a Delaware corporation (Phunware
Inc.) in accordance with the applicable provisions of The Republic of the Marshall Islands Associations Law, as amended, and the
applicable provisions of the Delaware General Corporation Law and in connection with the Merger (as hereinafter defined), the “Company”),
and each of the several purchasers signatory hereto (each such purchaser, a “Purchaser” and, collectively, the
“Purchasers”).

 

This Agreement is made
pursuant to the Securities Purchase Agreement, dated as of the date hereof, between the Company and each Purchaser (the “Purchase
Agreement”).

 

The Company and each Purchaser hereby agrees as follows:

 

1. Definitions.

 

Capitalized terms
used and not otherwise defined herein that are defined in the Purchase Agreement shall have the meanings given such terms in the
Purchase Agreement. As used in this Agreement, the following terms shall have the following meanings:

 

“Advice” shall have the meaning set
forth in Section 6(d).

 

“Certificate
of Designation” means the Certificate of Designation for the Preferred Stock to be filed by the Company with the Secretary
of State of the State of Delaware immediately following the Conversion.

 

“Common
Stock” means the common stock of the Company, par value $0.0001 per share, and any other class of securities into which
such securities may hereafter be reclassified or changed.

 

“Conversion”
means the statutory conversion of Stellar from a Republic of Marshall Islands corporation into Phunware, a Delaware Corporation,
immediately prior to the closing of the offering in which the Registrable Securities were issued and the closing of the Merger.

 

“Conversion
Shares” means, collectively, the shares of Common Stock issuable upon conversion of the shares of Preferred Stock.

 

     

     

    

 

“Effectiveness
Date” means, with respect to the Initial Registration Statement required to be filed hereunder, the
90th calendar day following the date on which any Conversion Shares are issued to a Purchaser (or, in the event of
a “full review” by the Commission, the 120th calendar day following the
date on which any Conversion Shares are issued to a Purchaser) and with respect to any additional Registration Statements
which may be required pursuant to Section 2(c) or Section 3(c), the 90th calendar day following the date on which
an additional Registration Statement is required to be filed hereunder (or, in the event of a “full review” by
the Commission, the 120th calendar day following the date such additional Registration Statement is required to be
filed hereunder); provided, however, that in the event the Company is notified by the Commission that one or more of
the above Registration Statements will not be reviewed or is no longer subject to further review and comments, the
Effectiveness Date as to such Registration Statement shall be the fifth Trading Day following the date on which the Company
is so notified if such date precedes the dates otherwise required above, provided, further, if such Effectiveness Date falls
on a day that is not a Trading Day, then the Effectiveness Date shall be the next succeeding Trading Day.

 

“Effectiveness Period” shall
have the meaning set forth in Section 2(a).

 

“Event” shall have the meaning set forth in Section 2(d).

 

“Event Date” shall have the meaning
set forth in Section 2(d).

 

“Filing Date”
means, with respect to the Initial Registration Statement required hereunder, the 45th calendar day following the date
on which any Conversion Shares are issued to a Purchaser and, with respect to any additional Registration Statements which may
be required pursuant to Section 2(c) or Section 3(c), the earliest practical date following the date on which any Conversion Shares
are issued to a Purchaser on which the Company is permitted by SEC Guidance to file such additional Registration Statement related
to the Registrable Securities.

 

“Holder”
or “Holders” means the holder or holders, as the case may be, from time to time of Registrable Securities, including
the Purchasers.

 

“Indemnified Party” shall
have the meaning set forth in Section 5(c).

 

“Indemnifying Party” shall have the meaning set forth in Section
5(c).

 

“Initial Registration
Statement” means the initial Registration Statement filed pursuant to this Agreement.

 

“Losses” shall have the meaning
set forth in Section 5(a).

 

“Merger”
means the proposed merger of a wholly owned subsidiary of the Company with and into Phunware, pursuant to the Merger Agreement.

 

“Merger Agreement”
means the agreement and plan of merger dated as of February 27, 2018, as amended, among the Company, Phunware and certain other
parties.

 

    2

     

    

 

“Offering”
the securities offering pursuant to which the Registrable Securities were offered and sold to the Purchasers in a private
placement transaction pursuant to the terms of the Purchase Agreement.

 

“Phunware” means Phunware Inc.,
a Delaware corporation.

 

“Plan of Distribution” shall have
the meaning set forth in Section 2(a).

 

“Preferred
Stock” means the shares of the Company’s 8% Series A Convertible Preferred Stock, initially issued on the date
hereof to the Purchasers.

 

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

 

“Registrable
Securities” means, as of any date of determination, (a) all Conversion Shares; (b) all shares of Common Stock then
issued and issuable upon conversion in full of the Preferred Stock (assuming on such date the Preferred Stock is converted in
full without regard to any conversion limitations therein), (c) any shares of Common Stock issued and issuable in connection
with Preferred Stock issued as dividends; (d) all shares of Common Stock issued and issuable upon redemption of the Preferred
Stock; assuming all permissible redemption payments are made in shares of Common Stock and the Preferred Stock are held for
the maximum amount of time set forth in the Certificate of Designation, (e) all Sponsor Shares; (f) all Warrant Shares then
issued and issuable upon exercise of the Sponsor Warrants (assuming on such date the Sponsor Warrants are exercised in full
without regard to any exercise limitations therein), (g) any additional shares of Common Stock issued and issuable in
connection with any anti-dilution provisions in the Preferred Stock (without giving effect to any limitations on conversion
set forth in the Preferred Stock) and (h) any securities issued or then issuable upon any stock split, dividend or other
distribution, recapitalization or similar event with respect to the foregoing; provided, however, that any such
Registrable Securities shall cease to be Registrable Securities (and the Company shall not be required to maintain the
effectiveness of any, or file another, Registration Statement hereunder with respect thereto) for so long as (i) a
Registration Statement with respect to the sale of such Registrable Securities is declared effective by the Commission under
the Securities Act and such Registrable Securities have been disposed of by the Holder in accordance with such effective
Registration Statement, (ii) such Registrable Securities have been previously sold in accordance with Rule 144, or (iii) such
securities become eligible for resale without volume or manner-of-sale restrictions and without current public
information requirements pursuant to Rule 144 as set forth in a written opinion letter to such
effect, addressed, delivered and acceptable to the Transfer Agent and the affected Holders (assuming that such securities and
any securities issuable upon exercise, conversion or exchange of which, or as a dividend upon which, such securities were
issued or are issuable, were at no time held by any Affiliate of the Company, and all Sponsor Warrants are exercised by
“cashless exercise” as provided in each of the Sponsor Warrants), as reasonably determined by the Company, upon
the advice of counsel to the Company.

 

    3

     

    

 

“Registration
Statement” means any registration statement required to be filed hereunder pursuant to Section 2(a) and any additional
registration statements contemplated by Section 2(c) or Section 3(c), including (in each case) the Prospectus, amendments and supplements
to any such registration statement or Prospectus, including pre- and post-effective amendments, all exhibits thereto, and all material
incorporated by reference or deemed to be incorporated by reference in any such registration statement.

 

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

 

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

 

“Selling
Stockholder Notice and Questionnaire” shall have the meaning set forth in Section 3(a).

 

“SEC
Guidance” means (i) any publicly-available written or oral guidance of the Commission staff, or any comments, requirements
or requests of the Commission staff and (ii) the Securities Act.

 

“Warrant
Shares” means shares of Common Stock issuable upon exercise of the Sponsor Warrants issued to the Purchasers.

 

    4

     

    

 

2.
Shelf Registration.

 

(a) On or prior
to each Filing Date, the Company shall prepare and file with the Commission a Registration Statement covering the resale of all
of the Registrable Securities that are not then registered on an effective Registration Statement for an offering to be made on
a continuous basis pursuant to Rule 415. Each Registration Statement filed hereunder shall be on Form S-3 (except if the Company
is not then eligible to register for resale the Registrable Securities on Form S-3, in which case such registration shall be on
another appropriate form in accordance herewith, subject to the provisions of Section 2(e)) and shall contain (unless otherwise
directed by at least 85% in interest of the Holders) substantially the “Plan of Distribution” attached hereto
as Annex A and substantially the “Selling Stockholders” section attached
hereto as Annex B; provided, however, that no Holder shall be required to be named as an “underwriter”
without such Holder’s express prior written consent. Subject to the terms of this Agreement, the Company shall use its best
efforts to cause a Registration Statement filed under this Agreement (including, without limitation, under Section 3(c)) to be
declared effective under the Securities Act as promptly as possible after the filing thereof, but in any event no later than the
applicable Effectiveness Date, and shall use its best efforts to keep such Registration Statement continuously effective under
the Securities Act until the date that all Registrable Securities covered by such Registration Statement (i) have been sold, thereunder
or pursuant to Rule 144, or (ii) may be sold without volume or manner-of-sale restrictions pursuant to Rule 144 and without the
requirement for the Company to be in compliance with the current public information requirement under Rule 144, as determined
by the counsel to the Company pursuant to a written opinion letter to such effect, addressed and acceptable to the Transfer Agent
and the affected Holders (the “Effectiveness Period”). The Company shall telephonically request effectiveness
of a Registration Statement as of 5:00 p.m. (New York City time) on a Trading Day. The Company shall immediately notify the Holders
via facsimile or by e-mail of the effectiveness of a Registration Statement on the same Trading Day that the Company telephonically
confirms effectiveness with the Commission, which shall be the date requested for effectiveness of such Registration Statement.
The Company shall, by 9:30 a.m. (New York City time) on the Trading Day after the effective date of such Registration Statement,
file a final Prospectus with the Commission as required by Rule 424. Failure to so notify the Holder within one (1) Trading Day
of such notification of effectiveness or failure to file a final Prospectus as foresaid shall be deemed an Event under Section
2(d).

  

(b) Notwithstanding
the registration obligations set forth in Section 2(a), if the Commission informs the Company that all of the Registrable Securities
cannot, as a result of the application of Rule 415, be registered for resale as a secondary offering on a single registration
statement, the Company agrees to promptly inform each of the Holders thereof and use its commercially reasonable efforts to file
amendments to the Initial Registration Statement as required by the Commission, covering the maximum number of Registrable Securities
permitted to be registered by the Commission, on Form S-3 or such other form available to register for resale the Registrable
Securities as a secondary offering, subject to the provisions of Section 2(e); with respect to filing on Form S-3 or other appropriate
form, and subject to the provisions of Section 2(d) with respect to the payment of liquidated damages; provided, however,
that prior to filing such amendment, the Company shall be obligated to use diligent efforts to advocate with the Commission for
the registration of all of the Registrable Securities in accordance with the SEC Guidance, including without limitation, Compliance
and Disclosure Interpretation 612.09.

 

    5

     

    

 

(c) Notwithstanding any
other provision of this Agreement and subject to the payment of liquidated damages pursuant to Section 2(d), if the
Commission or any SEC Guidance sets forth a limitation on the number of Registrable Securities permitted to be registered on
a particular Registration Statement as a secondary offering (and notwithstanding that the Company used diligent efforts to
advocate with the Commission for the registration of all or a greater portion of Registrable Securities), unless otherwise directed
in writing by a Holder as to its Registrable Securities, the number of Registrable Securities to be registered on such
Registration Statement will be reduced as follows:

 

		a.	First, the Company shall reduce or eliminate any securities
to be included other than Registrable Securities;

 

		b.	Second, the Company shall reduce Registrable Securities
represented by Warrant Shares (applied, in the case that some Warrant Shares may be registered, to the Holders on a pro rata basis
based on the total number of unregistered Warrant Shares held by such Holders); and

 

		c.	Third, the Company shall reduce Registrable Securities
represented by Conversion Shares (applied, in the case that some Conversion Shares may be registered, to the Holders on a pro
rata basis based on the total number of unregistered Conversion Shares held by such Holders).

 

In the event of a cutback
hereunder, the Company shall give the Holder at least five (5) Trading Days prior written notice along with the calculations as
to such Holder’s allotment. In the event the Company amends the Initial Registration Statement in accordance with the foregoing,
the Company will use its best efforts to file with the Commission, as promptly as allowed by Commission or SEC Guidance provided
to the Company or to registrants of securities in general, one or more registration statements on Form S-3 or such other form available
to register for resale those Registrable Securities that were not registered for resale on the Initial Registration Statement,
as amended.

 

    6

     

    

 

(d) If: (i) the
Initial Registration Statement is not filed on or prior to its Filing Date (if the Company files the Initial Registration Statement
without affording the Holders the opportunity to review and comment on the same as required by Section 3(a) herein, the Company
shall be deemed to have not satisfied this clause (i)), or (ii) the Company fails to file with the Commission a request for acceleration
of a Registration Statement in accordance with Rule 461 promulgated by the Commission pursuant to the Securities Act, within five
Trading Days of the date that the Company is notified (orally or in writing, whichever is earlier) by the Commission that such
Registration Statement will not be “reviewed” or will not be subject to further review, or (iii) prior to the effective
date of a Registration Statement, the Company fails to file a pre-effective amendment and otherwise respond in writing to comments
made by the Commission in respect of such Registration Statement within ten (10) calendar days after the receipt of comments by
or notice from the Commission that such amendment is required in order for such Registration Statement to be declared effective,
or (iv) a Registration Statement registering for resale all of the Registrable Securities is not declared effective by the Commission
by the Effectiveness Date of the Initial Registration Statement, or (v) after the effective date of a Registration Statement,
such Registration Statement ceases for any reason to remain continuously effective as to all Registrable Securities included in
such Registration Statement, or the Holders are otherwise not permitted to utilize the Prospectus therein to resell such Registrable
Securities, for more than ten (10) consecutive calendar days or more than an aggregate of fifteen
(15) calendar days (which need not be consecutive calendar days) during any 12-month period (any such failure or breach being
referred to as an “Event”, and for purposes of clauses (i) and (iv), the date on which such Event occurs, and
for purpose of clause (ii) the date on which such five (5) Trading Day period is exceeded, and for purpose of clause (iii) the
date which such ten (10) calendar day period is exceeded, and for purpose of clause (v) the date on which such ten (10) or fifteen
(15) calendar day period, as applicable, is exceeded being referred to as “Event Date”), then, in addition
to any other rights the Holders may have hereunder or under applicable law, on each such Event Date and on each monthly anniversary
of each such Event Date (if the applicable Event shall not have been cured by such date) until the applicable Event is cured,
the Company shall pay to each Holder an amount in cash, as partial liquidated damages and not as a penalty, equal to the product
of 2.0% multiplied by the aggregate Subscription Amount paid by such Holder pursuant to the Purchase Agreement. If the Company
fails to pay any partial liquidated damages pursuant to this Section in full within seven days after the date payable, the Company
will pay interest thereon at a rate of 18% per annum (or such lesser maximum amount that is permitted to be paid by applicable
law) to the Holder, accruing daily from the date such partial liquidated damages are due until such amounts, plus all such interest
thereon, are paid in full. The partial liquidated damages pursuant to the terms hereof shall apply on a daily pro rata basis for
any portion of a month prior to the cure of an Event.

 

(e)
If Form S-3 is not available for the registration of the resale of Registrable Securities hereunder, the Company shall (i) register
the resale of the Registrable Securities on another appropriate form and (ii) undertake to register the Registrable Securities
on Form S-3 as soon as such form is available, provided that the Company shall maintain the effectiveness of the Registration Statement
then in effect until such time as a Registration Statement on Form S-3 covering the Registrable Securities has been declared effective
by the Commission.

 

(f)
Notwithstanding anything to the contrary contained herein, in no event shall the Company be permitted to name any Holder or affiliate
of a Holder as any Underwriter without the prior written consent of such Holder.

 

3. Registration Procedures.

 

In connection with the Company’s registration
obligations hereunder, the Company shall:

 

(a) Not less than
five (5) Trading Days prior to the filing of each Registration Statement and not less than one (1) Trading Day prior to the filing
of any related Prospectus or any amendment or supplement thereto (including any document that would be incorporated or deemed
to be incorporated therein by reference), the Company shall (i) furnish to each Holder copies of all such documents proposed to
be filed, which documents (other than those incorporated or deemed to be incorporated by reference) will be subject to the review
of such Holders, and (ii) cause its officers and directors, counsel and independent registered public accountants to respond to
such inquiries as shall be necessary, in the reasonable opinion of respective counsel to each Holder, to conduct a reasonable
investigation within the meaning of the Securities Act. The Company shall not file a Registration Statement or any such Prospectus
or any amendments or supplements thereto to which the Holders of a majority of the Registrable Securities shall reasonably object
in good faith, provided that, the Company is notified of such objection in writing no later than five (5) Trading Days after the
Holders have been so furnished copies of a Registration Statement or one (1) Trading Day after the Holders have been so furnished
copies of any related Prospectus or amendments or supplements thereto. Each Holder agrees to furnish to the Company a completed
questionnaire in the form attached to this Agreement as Annex C (a “Selling Stockholder Notice and Questionnaire”)
on a date that is not less than two (2) Trading Days prior to the Filing Date or by the end of the fourth (4th) Trading
Day following the date on which such Holder receives draft materials in accordance with this Section.

 

    7

     

    

 

(b) (i) Prepare
and file with the Commission such amendments, including post-effective amendments, to a Registration Statement and the Prospectus
used in connection therewith as may be necessary to keep a Registration Statement continuously effective as to the applicable Registrable
Securities for the Effectiveness Period and prepare and file with the Commission such additional Registration Statements in order
to register for resale under the Securities Act all of the Registrable Securities, (ii) cause the related Prospectus to be amended
or supplemented by any required Prospectus supplement (subject to the terms of this Agreement), and, as so supplemented or amended,
to be filed pursuant to Rule 424, (iii) respond as promptly as reasonably possible to any comments received from the Commission
with respect to a Registration Statement or any amendment thereto and provide as promptly as reasonably possible to the Holders
true and complete copies of all correspondence from and to the Commission relating to a Registration Statement (provided that,
the Company shall excise any information contained therein which would constitute material non-public information regarding the
Company or any of its Subsidiaries), and (iv) comply in all material respects with the applicable provisions of the Securities
Act and the Exchange Act with respect to the disposition of all Registrable Securities covered by a Registration Statement during
the applicable period in accordance (subject to the terms of this Agreement) with the intended methods of disposition by the Holders
thereof set forth in such Registration Statement as so amended or in such Prospectus as so supplemented.

 

(c) If during
the Effectiveness Period, the number of Registrable Securities at any time exceeds 100% of the number of shares of Common Stock
then registered in a Registration Statement, then the Company shall file as soon as reasonably practicable, but in any case prior
to the applicable Filing Date, an additional Registration Statement covering the resale by the Holders of not less than the number
of such Registrable Securities.

 

    8

     

    

 

(d) Notify
the Holders of Registrable Securities to be sold (which notice shall, pursuant to clauses (iii) through (vi) hereof, be
accompanied by an instruction to suspend the use of the Prospectus until the requisite changes have been made) as promptly as
reasonably possible (and, in the case of (i)(A) below, not less than one (1) Trading Day prior to such filing) and (if
requested by any such Person) confirm such notice in writing no later than one (1) Trading Day following the day (i)(A) when
a Prospectus or any Prospectus supplement or post-effective amendment to a Registration
Statement is proposed to be filed, (B) when the Commission notifies the Company whether there will be a “review”
of such Registration Statement and whenever the Commission comments in writing on such Registration Statement, and (C) with
respect to a Registration Statement or any post-effective amendment, when the same has become effective, (ii) of any request
by the Commission or any other federal or state governmental authority for amendments or supplements to a Registration
Statement or Prospectus or for additional information, (iii) of the issuance by the Commission or any other federal or state
governmental authority of any stop order suspending the effectiveness of a Registration Statement covering any or all of the
Registrable Securities or the initiation of any Proceedings for that purpose, (iv) of the receipt by the Company of any
notification with respect to the suspension of the qualification or exemption from qualification of any of the Registrable
Securities for sale in any jurisdiction, or the initiation or threatening of any Proceeding for such purpose, (v) of the
occurrence of any event or passage of time that makes the financial statements included in a Registration
Statement ineligible for inclusion therein or any statement made in a Registration Statement or Prospectus or any document
incorporated or deemed to be incorporated therein by reference untrue in any material respect or that requires any revisions
to a Registration Statement, Prospectus or other documents so that, in the case of a Registration Statement or the
Prospectus, as the case may be, it will not contain any untrue statement of a material fact or omit to state any material
fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which
they were made, not misleading, and (vi) of the occurrence or existence of any pending corporate development with respect to
the Company that the Company believes may be material and that, in the determination of the Company, makes it not in the best
interest of the Company to allow continued availability of a Registration Statement or Prospectus; provided, however,
that in no event shall any such notice contain any information which would constitute material, non-public information
regarding the Company or any of its Subsidiaries.

 

(e)
Use its best efforts to avoid the issuance of, or, if issued, obtain the withdrawal of (i) any order stopping or suspending the
effectiveness of a Registration Statement, or (ii) any suspension of the qualification (or exemption from qualification) of any
of the Registrable Securities for sale in any jurisdiction, at the earliest practicable moment.

 

(f)
Furnish to each Holder, without charge, at least one conformed copy of each such Registration Statement and each amendment thereto,
including financial statements and schedules, all documents incorporated or deemed to be incorporated therein by reference to the
extent requested by such Person, and all exhibits to the extent requested by such Person (including those previously furnished
or incorporated by reference) promptly after the filing of such documents with the Commission; provided, that any such item which
is available on the EDGAR system (or successor thereto) need not be furnished in physical form.

 

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(g) Subject
to the terms of this Agreement, the Company hereby consents to the use of such Prospectus and each amendment or supplement
thereto by each of the selling Holders in connection with the offering and sale of the
Registrable Securities covered by such Prospectus and any amendment or supplement thereto, except after the giving of any
notice pursuant to Section 3(d).

 

(h)
Prior to any resale of Registrable Securities by a Holder, use its commercially reasonable efforts to register or qualify or cooperate
with the selling Holders in connection with the registration or qualification (or exemption from the Registration or qualification)
of such Registrable Securities for the resale by the Holder under the securities or Blue Sky laws of such jurisdictions within
the United States as any Holder reasonably requests in writing, to keep each registration or qualification (or exemption therefrom)
effective during the Effectiveness Period and to do any and all other acts or things reasonably necessary to enable the disposition
in such jurisdictions of the Registrable Securities covered by each Registration Statement, provided that the Company shall not
be required to qualify generally to do business in any jurisdiction where it is not then so qualified, subject the Company to any
material tax in any such jurisdiction where it is not then so subject or file a general consent to service of process in any such
jurisdiction.

 

(i)
If requested by a Holder, cooperate with such Holder to facilitate the timely preparation and delivery of certificates representing
Registrable Securities to be delivered to a transferee pursuant to a Registration Statement, which certificates shall be free,
to the extent permitted by the Purchase Agreement, of all restrictive legends, and to enable such Registrable Securities to be
in such denominations and registered in such names as any such Holder may request.

 

(j)
Upon the occurrence of any event contemplated by Section 3(d), as promptly as reasonably possible under the circumstances taking
into account the Company’s good faith assessment of any adverse consequences to the Company and its stockholders of the premature
disclosure of such event, prepare a supplement or amendment, including a post-effective amendment, to a Registration Statement
or a supplement to the related Prospectus or any document incorporated or deemed to be incorporated therein by reference, and file
any other required document so that, as thereafter delivered, neither a Registration Statement nor such Prospectus will contain
an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the
statements therein, in light of the circumstances under which they were made, not misleading. If the Company notifies the Holders
in accordance with clauses (iii) through (vi) of Section 3(d) above to suspend the use of any Prospectus until the requisite changes
to such Prospectus have been made, then the Holders shall suspend use of such Prospectus. The Company will use its best efforts
to ensure that the use of the Prospectus may be resumed as promptly as is practicable. The Company shall be entitled to exercise
its right under this Section 3(j) to suspend the availability of a Registration Statement and Prospectus, subject to the payment
of partial liquidated damages otherwise required pursuant to Section 2(d), for a period not to exceed 60 calendar days (which need
not be consecutive days) in any 12-month period.

 

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(k)
Otherwise use commercially reasonable efforts to comply with all applicable rules and regulations of the Commission under the
Securities Act and the Exchange Act, including, without limitation, Rule 172 under the
Securities Act, file any final Prospectus, including any supplement or amendment thereof, with the Commission pursuant to
Rule 424 under the Securities Act, promptly inform the Holders in writing if, at any time during the Effectiveness Period,
the Company does not satisfy the conditions specified in Rule 172 and, as a result thereof, the Holders are required to
deliver a Prospectus in connection with any disposition of Registrable Securities and take such other actions as may be
reasonably necessary to facilitate the registration of the Registrable Securities hereunder.

 

(l) The Company
shall use its best efforts to maintain eligibility for use of Form S-3 (or any successor form thereto) for the registration of
the resale of Registrable Securities.

 

(m) The Company
may require each selling Holder to furnish to the Company a certified statement as to the number of shares of Common Stock beneficially
owned by such Holder and, if required by the Commission, the natural persons thereof that have voting and dispositive control over
the shares. During any periods that the Company is unable to meet its obligations hereunder with respect to the registration of
the Registrable Securities solely because any Holder fails to furnish such information within three Trading Days of the Company’s
request, any liquidated damages that are accruing at such time as to such Holder only shall be tolled and any Event that may otherwise
occur solely because of such delay shall be suspended as to such Holder only, until such information is delivered to the Company.

 

4. Registration
Expenses. All fees and expenses incident to the performance of or compliance with, this Agreement by the Company shall
be borne by the Company whether or not any Registrable Securities are sold pursuant to a Registration Statement. The fees and
expenses referred to in the foregoing sentence shall include, without limitation, (i) all registration and filing fees
(including, without limitation, fees and expenses of the Company’s counsel and independent registered public
accountants) (A) with respect to filings made with the Commission, (B) with respect to filings required to be made with any
Trading Market on which the Common Stock is then listed for trading, and (C) in compliance with applicable state securities
or Blue Sky laws reasonably agreed to by the Company in writing (including, without limitation, fees and disbursements of
counsel for the Company in connection with Blue Sky qualifications or exemptions of the Registrable Securities), (ii)
printing expenses (including, without limitation, expenses of printing certificates for Registrable Securities), (iii)
messenger, telephone and delivery expenses, (iv) fees and disbursements of counsel for the Company, (v) Securities Act
liability insurance, if the Company so desires such insurance, (vi) reasonable fees and expenses of one counsel to the
Holders (up to $10,000); and (vii) fees and expenses of all other Persons retained by the Company in connection with the
consummation of the transactions contemplated by this Agreement. In addition, the Company shall be responsible for all of its
internal expenses incurred in connection with the consummation of the transactions contemplated by this Agreement (including,
without limitation, all salaries and expenses of its officers and employees performing legal or accounting duties), the
expense of any annual audit and the fees and expenses incurred in connection with the listing of the Registrable Securities
on any securities exchange as required hereunder. In no event shall the Company be responsible for any broker or
similar commissions of any Holder or, except to the extent provided for in the Transaction
Documents, any legal fees or other costs of the Holders.

 

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		5.	Indemnification.

 

(a) Indemnification
by the Company. The Company shall, notwithstanding any termination of this Agreement, indemnify and hold harmless each Holder,
the officers, directors, members, partners, agents, brokers (including brokers who offer and sell Registrable Securities as principal
as a result of a pledge or any failure to perform under a margin call of Common Stock), investment advisors and employees (and
any other Persons with a functionally equivalent role of a Person holding such titles, notwithstanding a lack of such title or
any other title) of each of them, each Person who controls any such Holder (within the meaning of Section 15 of the Securities
Act or Section 20 of the Exchange Act) and the officers, directors, members, stockholders, partners, agents and employees (and
any other Persons with a functionally equivalent role of a Person holding such titles, notwithstanding a lack of such title or
any other title) of each such controlling Person, to the fullest extent permitted by applicable law, from and against any and
all losses, claims, damages, liabilities, costs (including, without limitation, reasonable attorneys’ fees) and expenses
(collectively, “Losses”), as incurred, arising out of or relating to (1) any untrue or alleged untrue statement
of a material fact contained in a Registration Statement, any Prospectus or any form of prospectus or in any amendment or supplement
thereto or in any preliminary prospectus, or arising out of or relating to any omission or alleged omission of a material fact
required to be stated therein or necessary to make the statements therein (in the case of any Prospectus or supplement thereto,
in light of the circumstances under which they were made) not misleading or (2) any violation or alleged violation by the Company
of the Securities Act, the Exchange Act or any state securities law, or any rule or regulation thereunder, in connection with
the performance of its obligations under this Agreement, except to the extent, but only to the extent, that (i) such untrue statements
or omissions are based solely upon information regarding such Holder furnished in writing to the Company by such Holder expressly
for use therein, or to the extent that such information relates to such Holder or such Holder’s proposed method of distribution
of Registrable Securities and was reviewed and expressly approved in writing by such Holder expressly for use in a Registration
Statement, such Prospectus or in any amendment or supplement thereto (it being understood that the Holder has approved Annex A
hereto for this purpose) or (ii) in the case of an occurrence of an event of the type specified in Section 3(d)(iii)-(vi), the
use by such Holder of an outdated, defective or otherwise unavailable Prospectus after the Company has notified such Holder in
writing that the Prospectus is outdated, defective or otherwise unavailable for use by such Holder and prior to the receipt by
such Holder of the Advice contemplated in Section 6(d). The Company shall notify the Holders promptly of the institution, threat
or assertion of any Proceeding arising from or in connection with the transactions contemplated by this Agreement of which the
Company is aware. Such indemnity shall remain in full force and effect regardless of any investigation made by or on behalf of
such indemnified person and shall survive the transfer of any Registrable Securities by any of the Holders in accordance with
Section 6(h).

 

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(b)
Indemnification by Holders. Each Holder shall, severally and not jointly, indemnify and hold harmless the Company, its
directors, officers, agents and employees, each Person who controls the Company (within the meaning of Section 15 of the Securities
Act and Section 20 of the Exchange Act), and the directors, officers, agents or employees of such controlling Persons, to the
fullest extent permitted by applicable law, from and against all Losses, as incurred, to the extent arising out of or based solely
upon: any untrue or alleged untrue statement of a material fact contained in any Registration Statement, any Prospectus, or in
any amendment or supplement thereto or in any preliminary prospectus, or arising out of or relating to any omission or alleged
omission of a material fact required to be stated therein or necessary to make the statements therein (in the case of any Prospectus
or supplement thereto, in light of the circumstances under which they were made) not misleading (i) to the extent, but only to
the extent, that such untrue statement or omission is contained in any information so furnished in writing by such Holder to the
Company expressly for inclusion in such Registration Statement or such Prospectus or (ii) to the extent, but only to the extent,
that such information relates to such Holder’s information provided in the Selling Stockholder Notice and Questionnaire
or the proposed method of distribution of Registrable Securities and was reviewed and expressly approved in writing by such Holder
expressly for use in a Registration Statement (it being understood that the Holder has approved Annex A hereto for this purpose),
such Prospectus or in any amendment or supplement thereto. In no event shall the liability of a selling Holder be greater in amount
than the dollar amount of the proceeds (net of all expenses paid by such Holder in connection with any claim relating to this
Section 5 and the amount of any damages such Holder has otherwise been required to pay by reason of such untrue statement or omission)
received by such Holder upon the sale of the Registrable Securities included in the Registration Statement giving rise to such
indemnification obligation.

 

(c) Conduct
of Indemnification Proceedings. If any Proceeding shall be brought or asserted against any Person entitled to indemnity hereunder
(an “Indemnified Party”), such Indemnified Party shall promptly notify the Person from whom indemnity is sought
(the “Indemnifying Party”) in writing, and the Indemnifying Party shall have the right to assume the defense
thereof, including the employment of counsel reasonably satisfactory to the Indemnified Party and the payment of all fees and
expenses incurred in connection with defense thereof, provided that the failure of any Indemnified Party to give such notice shall
not relieve the Indemnifying Party of its obligations or liabilities pursuant to this Agreement, except (and only) to the extent
that it shall be finally determined by a court of competent jurisdiction (which determination is not subject to appeal or further
review) that such failure shall have materially and adversely prejudiced the Indemnifying Party.

 

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An Indemnified
Party shall have the right to employ separate counsel in any such Proceeding and to participate in the defense thereof, but
the fees and expenses of such counsel shall be at the expense of such Indemnified Party or Parties unless: (1) the
Indemnifying Party has agreed in writing to pay such fees and expenses, (2) the Indemnifying Party shall have failed promptly
to assume the defense of such Proceeding and to employ counsel reasonably satisfactory to such Indemnified Party in any such
Proceeding, or (3) the named parties to any such Proceeding (including any impleaded parties) include both such Indemnified
Party and the Indemnifying Party, and counsel to the Indemnified Party shall reasonably believe
that a material conflict of interest is likely to exist if the same counsel were to represent such Indemnified Party and the
Indemnifying Party (in which case, if such Indemnified Party notifies the Indemnifying Party in writing that it elects to
employ separate counsel at the expense of the Indemnifying Party, the Indemnifying Party shall not have the right to assume
the defense thereof and the reasonable fees and expenses of no more than one separate counsel shall be at the expense of the
Indemnifying Party). The Indemnifying Party shall not be liable for any settlement of any such Proceeding effected without
its written consent, which consent shall not be unreasonably withheld or delayed. No Indemnifying Party shall, without the
prior written consent of the Indemnified Party, effect any settlement of any pending Proceeding in respect of which any
Indemnified Party is a party, unless such settlement includes an unconditional release of such Indemnified Party from all
liability on claims that are the subject matter of such Proceeding.

 

Subject to the terms
of this Agreement, all reasonable fees and expenses of the Indemnified Party (including reasonable fees and expenses to the extent
incurred in connection with investigating or preparing to defend such Proceeding in a manner not inconsistent with this Section)
shall be paid to the Indemnified Party, as incurred, within ten Trading Days of written notice thereof to the Indemnifying Party,
provided that the Indemnified Party shall promptly reimburse the Indemnifying Party for that portion of such fees and expenses
applicable to such actions for which such Indemnified Party is finally determined by a court of competent jurisdiction (which determination
is not subject to appeal or further review) not to be entitled to indemnification hereunder.

 

(d) Contribution. If
the indemnification under Section 5(a) or 5(b) is unavailable to an Indemnified Party or insufficient to hold an Indemnified
Party harmless for any Losses, then each Indemnifying Party shall contribute to the amount paid or payable by such
Indemnified Party, in such proportion as is appropriate to reflect the relative fault of the Indemnifying Party and
Indemnified Party in connection with the actions, statements or omissions that resulted in such Losses as well as any other
relevant equitable considerations. The relative fault of such Indemnifying Party and Indemnified Party shall be determined by
reference to, among other things, whether any action in question, including any untrue or alleged untrue statement of a
material fact or omission or alleged omission of a material fact, has been taken or made by, or relates to information
supplied by, such Indemnifying Party or Indemnified Party, and the parties’ relative intent, knowledge, access to
information and opportunity to correct or prevent such action, statement or omission. The amount paid or payable by a party
as a result of any Losses shall be deemed to include, subject to the limitations set forth in this Agreement, any reasonable
attorneys’ or other fees or expenses incurred by such party in connection with any Proceeding to the extent such party
would have been indemnified for such fees or expenses if the indemnification provided for in this Section was available to
such party in accordance with its terms.

 

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The parties hereto agree
that it would not be just and equitable if contribution pursuant to this Section 5(d) were determined by pro rata allocation
or by any other method of allocation that does not take into account the equitable considerations referred to in the immediately
preceding paragraph. In no event shall the contribution obligation of a Holder of Registrable Securities be greater in
amount than the dollar amount of the proceeds (net of all expenses paid by such Holder in connection with any claim relating
to this Section 5 and the amount of any damages such Holder has otherwise been required to pay by reason of such untrue or
alleged untrue statement or omission or alleged omission) received by it upon the sale of the Registrable Securities giving
rise to such contribution obligation.

 

The indemnity
and contribution agreements contained in this Section are in addition to any liability that the Indemnifying Parties may have to
the Indemnified Parties.

 

6.
Miscellaneous.

 

(a) Remedies.
In the event of a breach by the Company or by a Holder of any of their respective obligations under this Agreement, each Holder
or the Company, as the case may be, in addition to being entitled to exercise all rights granted by law and under this Agreement,
including recovery of damages, shall be entitled to specific performance of its rights under this Agreement. Each of the Company
and each Holder agrees that monetary damages would not provide adequate compensation for any losses incurred by reason of a breach
by it of any of the provisions of this Agreement and hereby further agrees that, in the event of any action for specific performance
in respect of such breach, it shall not assert or shall waive the defense that a remedy at law would be adequate.

 

(b) No Piggyback
on Registrations; Prohibition on Filing Other Registration Statements. Neither the Company nor any of its security holders
(other than the Holders in such capacity pursuant hereto) may include securities of the Company in any Registration Statements
other than the Registrable Securities. The Company shall not file any other registration statements until all Registrable Securities
are registered pursuant to a Registration Statement that is declared effective by the Commission, provided that this Section 6(b)
shall not prohibit the Company from filing amendments to registration statements filed prior to the date of this Agreement.

 

(c) [RESERVED]

 

(d) Discontinued
Disposition. By its acquisition of Registrable Securities, each Holder agrees that, upon receipt of a notice from the Company
of the occurrence of any event of the kind described in Section 3(d)(iii) through (vi), such Holder will forthwith discontinue
disposition of such Registrable Securities under a Registration Statement until it is advised in writing (the “Advice”)
by the Company that the use of the applicable Prospectus (as it may have been supplemented or amended) may be resumed. The
Company will use its best efforts to ensure that the use of the Prospectus may be resumed as promptly as is practicable. The Company
agrees and acknowledges that any periods during which the Holder is required to discontinue the disposition of the Registrable
Securities hereunder shall be subject to the provisions of Section 2(d).

 

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(e) Piggy-Back
Registrations. If, at any time during the Effectiveness Period, there is not an effective Registration Statement covering
all of the Registrable Securities, and in particular the Warrant Shares, and the Company shall determine to prepare and file with
the Commission a registration statement relating to an offering for its own account or the account of others under the Securities
Act of any of its equity securities, other than on Form S-4 or Form S-8 (each as promulgated under the Securities Act) or their
then equivalents relating to equity securities to be issued solely in connection with any acquisition of any entity or business
or equity securities issuable in connection with the Company’s stock option or other employee benefit plans, then the Company
shall deliver to each Holder a written notice of such determination and, if within fifteen days after the date of the delivery
of such notice, any such Holder shall so request in writing, the Company shall include in such registration statement all or any
part of such Registrable Securities such Holder requests to be registered; provided, however, that the Company shall
not be required to register any Registrable Securities pursuant to this Section 6(e) that are eligible for resale pursuant to
Rule 144 (without volume restrictions or current public information requirements) promulgated by the Commission pursuant to the
Securities Act or that are the subject of a then effective Registration Statement that is available for resales or other dispositions
by such Holder.

 

(f) Amendments
and Waivers. The provisions of this Agreement, including the provisions of this sentence, may not be amended, modified or
supplemented, and waivers or consents to departures from the provisions hereof may not be given, unless the same shall be in writing
and signed by the Company and the Holders of 50.1% or more of the then outstanding Registrable Securities (for purposes of clarification,
this includes any Registrable Securities issuable upon exercise or conversion of any Security), provided that, if any amendment,
modification or waiver disproportionately and adversely impacts a Holder (or group of Holders), the consent of such disproportionately
impacted Holder (or group of Holders) shall be required. If a Registration Statement does not register all of the Registrable
Securities pursuant to a waiver or amendment done in compliance with the previous sentence, then the number of Registrable Securities
to be registered for each Holder shall be reduced pro rata among all Holders and each Holder shall have the right to designate
which of its Registrable Securities shall be omitted from such Registration Statement. Notwithstanding the foregoing, a waiver
or consent to depart from the provisions hereof with respect to a matter that relates exclusively to the rights of a Holder or
some Holders and that does not directly or indirectly affect the rights of other Holders may be given only by such Holder or Holders
of all of the Registrable Securities to which such waiver or consent relates; provided, however, that the provisions
of this sentence may not be amended, modified, or supplemented except in accordance with the provisions of the first sentence
of this Section 6(f). No consideration shall be offered or paid to any Person to amend or consent to a waiver or modification
of any provision of this Agreement unless the same consideration also is offered to all of the parties to this Agreement.

 

(g) Notices.
Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be delivered as
set forth in the Purchase Agreement.

 

(h) Successors
and Assigns. This Agreement shall inure to the benefit of and be binding upon the successors and permitted assigns of each
of the parties and shall inure to the benefit of each Holder. The Company may not assign (except by merger) its rights or obligations
hereunder without the prior written consent of all of the Holders of the then outstanding Registrable Securities. Each Holder
may assign their respective rights hereunder in the manner and to the Persons as permitted under Section 5.8 of the Purchase Agreement.

 

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(i)
No Inconsistent Agreements. Neither the Company nor any of its Subsidiaries has entered, as of the date hereof, nor shall
the Company or any of its Subsidiaries, on or after the date of this Agreement, enter into any agreement with respect to its securities,
that would have the effect of impairing the rights granted to the Holders in this Agreement or otherwise conflicts with the provisions
hereof. Except as set forth on Schedule 6(i), neither the Company nor any of its Subsidiaries has previously entered into
any agreement granting any registration rights with respect to any of its securities to any Person that have not been satisfied
in full.

 

(j) Execution
and Counterparts. This Agreement may be executed in two or more counterparts, all of which when taken together 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, it being understood that both parties need not sign the same counterpart. In the event that any signature is delivered
by facsimile transmission or by e-mail delivery of a “.pdf” format data file, such signature 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 facsimile
or “.pdf” signature page were an original thereof.

 

(k) Governing
Law. All questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be determined
in accordance with the provisions of the Purchase Agreement.

 

(l) Cumulative
Remedies. The remedies provided herein are cumulative and not exclusive of any other remedies provided by law.

 

(m) Severability.
If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction to be invalid,
illegal, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein shall remain
in full force and effect and shall in no way be affected, impaired or invalidated, and the parties hereto shall use their commercially
reasonable efforts to find and employ an alternative means to achieve the same or substantially the same result as that contemplated
by such term, provision, covenant or restriction. It is hereby stipulated and declared to be the intention of the parties that
they would have executed the remaining terms, provisions, covenants and restrictions without including any of such that may be
hereafter declared invalid, illegal, void or unenforceable.

 

(n) Headings.
The headings in this Agreement are for convenience only, do not constitute a part of the Agreement and shall not be deemed to
limit or affect any of the provisions hereof.

 

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(o) Independent
Nature of Holders’ Obligations and Rights. The obligations of each Holder hereunder are several and not joint with the
obligations of any other Holder hereunder, and no Holder shall be responsible in any way for the performance of the obligations
of any other Holder hereunder. Nothing contained herein or in any other agreement or document delivered at any closing, and no
action taken by any Holder pursuant hereto or thereto, shall be deemed to constitute the Holders as a partnership, an association,
a joint venture or any other kind of group or entity, or create a presumption that the Holders are in any way acting in concert
or as a group or entity with respect to such obligations or the transactions contemplated by this Agreement or any
other matters, and the Company acknowledges that the Holders are not acting in concert or as a group, and the Company shall not
assert any such claim, with respect to such obligations or transactions. Each Holder shall be entitled to protect and enforce
its rights, including without limitation the rights arising out of this Agreement, and it shall not be necessary for any other
Holder to be joined as an additional party in any proceeding for such purpose. The use of a single agreement with respect to the
obligations of the Company contained was solely in the control of the Company, not the action or decision of any Holder, and was
done solely for the convenience of the Company and not because it was required or requested to do so by any Holder. It is expressly
understood and agreed that each provision contained in this Agreement is between the Company and a Holder, solely, and not between
the Company and the Holders collectively and not between and among Holders.

 

********************

 

(Signature Pages Follow)

 

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

 

	 	PHUNWARE INC.
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

 

 

 

[SIGNATURE PAGE OF HOLDERS FOLLOWS]

 

     

     

    

 

SIGNATURE PAGE OF HOLDERS TO RRA

 

Name of Holder:                                                                                              

 

Signature of Authorized Signatory
of Holder:                                                                                               

 

Name of Authorized Signatory:
                                                                                              

 

Title of Authorized Signatory:
                                                                                              

 

 

 

[SIGNATURE PAGES CONTINUE]

 

     

     

    

 

Annex
A

 

Plan
of Distribution

 

Each
Selling Stockholder (the “Selling Stockholders”) of the securities and any of their pledgees, assignees and
successors-in-interest may, from time to time, sell any or all of their securities covered hereby on the principal Trading Market
or any other stock exchange, market or trading facility on which the securities are traded or in private transactions. These sales
may be at fixed or negotiated prices. A Selling Stockholder may use any one or more of the following methods when selling securities:

 

		●	ordinary
                                         brokerage transactions and transactions in which the broker-dealer solicits purchasers;

 

		●	block
                                         trades in which the broker-dealer will attempt to sell the securities as agent but may
                                         position and resell a portion of the block as principal to facilitate the transaction;

 

		●	purchases
                                         by a broker-dealer as principal and resale by the broker-dealer for its account;

 

		●	an
                                         exchange distribution in accordance with the rules of the applicable exchange;

 

		●	privately
                                         negotiated transactions;

 

		●	settlement
                                         of short sales;

 

		●	in
                                         transactions through broker-dealers that agree with the Selling Stockholders to sell
                                         a specified number of such securities at a stipulated price per security;

 

		●	through
                                         the writing or settlement of options or other hedging transactions, whether through an
                                         options exchange or otherwise;

 

		●	a
                                         combination of any such methods of sale; or

 

		●	any
                                         other method permitted pursuant to applicable law.

 

The
Selling Stockholders may also sell securities under Rule 144 or any other exemption from registration under the Securities Act
of 1933, as amended (the “Securities Act”), if available, rather than under this prospectus.

 

Broker-dealers
engaged by the Selling Stockholders may arrange for other brokers-dealers to participate in sales. Broker-dealers may receive
commissions or discounts from the Selling Stockholders (or, if any broker-dealer acts as agent for the purchaser of securities,
from the purchaser) in amounts to be negotiated, but, except as set forth in a supplement to this
Prospectus, in the case of an agency transaction not in excess of a customary brokerage commission in compliance with FINRA Rule
2440; and in the case of a principal transaction a markup or markdown in compliance with FINRA IM-2440.

 

     

     

    

 

In
connection with the sale of the securities or interests therein, the Selling Stockholders may enter into hedging transactions
with broker-dealers or other financial institutions, which may in turn engage in short sales of the securities in the course of
hedging the positions they assume. The Selling Stockholders may also sell securities short and deliver these securities to close
out their short positions, or loan or pledge the securities to broker-dealers that in turn may sell these securities. The Selling
Stockholders may also enter into option or other transactions with broker-dealers or other financial institutions or create one
or more derivative securities which require the delivery to such broker-dealer or other financial institution of securities offered
by this prospectus, which securities such broker-dealer or other financial institution may resell pursuant to this prospectus
(as supplemented or amended to reflect such transaction).

 

The
Selling Stockholders and any broker-dealers or agents that are involved in selling the securities may be deemed to be “underwriters”
within the meaning of the Securities Act in connection with such sales. In such event, any commissions received by such broker-dealers
or agents and any profit on the resale of the securities purchased by them may be deemed to be underwriting commissions or discounts
under the Securities Act. Each Selling Stockholder has informed the Company that it does not have any written or oral agreement
or understanding, directly or indirectly, with any person to distribute the securities.

 

The
Company is required to pay certain fees and expenses incurred by the Company incident to the registration of the securities. The
Company has agreed to indemnify the Selling Stockholders against certain losses, claims, damages and liabilities, including liabilities
under the Securities Act.

 

We
agreed to keep this prospectus effective until the earlier of (i) the date on which the securities may be resold by the Selling
Stockholders without registration and without regard to any volume or manner-of-sale limitations by reason of Rule 144, without
the requirement for the Company to be in compliance with the current public information under Rule 144 under the Securities Act
or any other rule of similar effect or (ii) all of the securities have been sold pursuant to this prospectus or Rule 144 under
the Securities Act or any other rule of similar effect. The resale securities will be sold only through registered or licensed
brokers or dealers if required under applicable state securities laws. In addition, in certain states, the resale securities covered
hereby may not be sold unless they have been registered or qualified for sale in the applicable state or an exemption from the
registration or qualification requirement is available and is complied with.

 

Under
applicable rules and regulations under the Exchange Act, any person engaged in the distribution of the resale securities may not
simultaneously engage in market making activities with respect to the common stock for the applicable restricted period, as defined
in Regulation M, prior to the commencement of the distribution. In addition, the Selling Stockholders will be subject to applicable
provisions of the Exchange Act and the rules and regulations thereunder, including Regulation M, which may limit the timing of
purchases and sales of the common stock by the Selling Stockholders or any other person. We will make copies of this prospectus
available to the Selling Stockholders and have informed them of the need to deliver a copy of this prospectus to each purchaser
at or prior to the time of the sale (including by compliance with Rule 172 under the Securities Act).

 

     

     

    

 

Annex
B

 

SELLING
STOCKOLDERS

 

The
common stock being offered by the selling stockholders are those previously issued to the selling stockholders, and those issuable
to the selling stockholders, upon exercise of the warrants. For additional information regarding the issuances of those shares
of common stock and warrants, see “Private Placement of Common Shares and Warrants” above. We are registering the
shares of common stock in order to permit the selling stockholders to offer the shares for resale from time to time. Except for
the ownership of the shares of common stock and the warrants, the selling stockholders have not had any material relationship
with us within the past three years.

 

The
table below lists the selling stockholders and other information regarding the beneficial ownership of the shares of common stock
by each of the selling stockholders. The second column lists the number of shares of common stock beneficially owned by each selling
stockholder, based on its ownership of the shares of common stock and warrants, as of                      ,
2018, assuming exercise of the warrants held by the selling stockholders on that date, without regard to any limitations on exercises.

 

The
third column lists the shares of common stock being offered by this prospectus by the selling stockholders.

 

In
accordance with the terms of a registration rights agreement with the selling stockholders, this prospectus generally covers
the resale of the sum of (i) the number of shares of common stock issued to the selling stockholders in the                                      and
(ii) the maximum number of shares of common stock issuable upon exercise of the related warrants, determined as if the
outstanding warrants were exercised in full as of the trading day immediately preceding the date this registration statement
was initially filed with the SEC, each as of the trading day immediately preceding the applicable date of determination and
all subject to adjustment as provided in the registration right agreement, without regard to any limitations on the exercise
of the warrants. The fourth column assumes the sale of all of the shares offered by the selling stockholders pursuant to this
prospectus.

 

Under
the terms of the warrants, a selling stockholder may not exercise the warrants to the extent such exercise would cause such selling
stockholder, together with its affiliates and attribution parties, to beneficially own a number of shares of common stock which
would exceed 4.99% of our then outstanding common stock following such exercise, excluding for purposes of such determination
shares of common stock issuable upon exercise of the warrants which have not been exercised. The number of shares in the second
column does not reflect this limitation. The selling stockholders may sell all, some or none of their shares in this offering.
See “Plan of Distribution.”

 

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

 

     

     

    

 

Annex
C

 

Phunware
Inc.

 

Selling
Stockholder Notice and Questionnaire

 

The
undersigned beneficial owner of common stock (the “Registrable Securities”) of Phunware Inc., a Delaware corporation
(the “Company”), understands that the Company has filed or intends to file with the Securities and Exchange
Commission (the “Commission”) a registration statement (the “Registration Statement”) for
the registration and resale under Rule 415 of the Securities Act of 1933, as amended (the “Securities Act”),
of the Registrable Securities, in accordance with the terms of the Registration Rights Agreement (the “Registration Rights
Agreement”) to which this document is annexed. A copy of the Registration Rights Agreement is available from the
Company upon request at the address set forth below. All capitalized terms not otherwise defined herein shall have the meanings
ascribed thereto in the Registration Rights Agreement.

 

Certain
legal consequences arise from being named as a selling stockholder in the Registration Statement and the related prospectus. Accordingly,
holders and beneficial owners of Registrable Securities are advised to consult their own securities law counsel regarding the
consequences of being named or not being named as a selling stockholder in the Registration Statement and the related prospectus.

 

NOTICE

 

The
undersigned beneficial owner (the “Selling Stockholder”) of Registrable Securities hereby elects to include
the Registrable Securities owned by it in the Registration Statement.

 

     

     

    

 

The
undersigned hereby provides the following information to the Company and represents and warrants that such information is accurate:

 

QUESTIONNAIRE

 

	1.	Name.

 

		(a)	Full
                                         Legal Name of Selling Stockholder
	 	 	 
	 	 	 

 

		(b)	Full
                                         Legal Name of Registered Holder (if not the same as (a) above) through which Registrable
                                         Securities are held:
	 	 	 
	 	 	 

 

		(c)	Full
                                         Legal Name of Natural Control Person (which means a natural person who directly or indirectly
                                         alone or with others has power to vote or dispose of the securities covered by this Questionnaire):
	 	 	 
	 	 	 

 

	2.	Address
                                         for Notices to Selling Stockholder:
	 	 
	 	 
	 	 
	 	 
	 	Telephone:
	 	 
	 	Fax:
	 	 
	 	Contact
	 	Person:
	 	 

 

	3.	Broker-Dealer
                                         Status:

 

		(a)	Are
                                         you a broker-dealer?
	 	 	 
	 	Yes  ☐  
               No  ☐

 

		(b)	If
                                         “yes” to Section 3(a), did you receive your Registrable Securities as compensation
                                         for investment banking services to the Company?
	 	 	 
	 	Yes  ☐  
               No  ☐

 

     

     

    

 

	 	Note:	If
                                         “no” to Section 3(b), the Commission’s staff has indicated that you
                                         should be identified as an underwriter in the Registration Statement.
	 	 	 
	 	Yes  ☐  
               No  ☐

  

		(c)	Are
                                         you an affiliate of a broker-dealer?
	 	 	 
	 	Yes  ☐  
               No  ☐

 

		(d)	If
                                         you are an affiliate of a broker-dealer, do you certify that you purchased the Registrable
                                         Securities in the ordinary course of business, and at the time of the purchase of the
                                         Registrable Securities to be resold, you had no agreements or understandings, directly
                                         or indirectly, with any person to distribute the Registrable Securities?
	 	 	 
	 	Yes  ☐  
               No  ☐

 

		Note:	If
                                         “no” to Section 3(d), the Commission’s staff has indicated that you
                                         should be identified as an underwriter in the Registration Statement.

 

	4.	Beneficial
                                         Ownership of Securities of the Company Owned by the Selling Stockholder.

 

Except
as set forth below in this Item 4, the undersigned is not the beneficial or registered owner of any securities of the Company
other than the securities issuable pursuant to the Purchase Agreement.

 

		(a)	Type
                                         and Amount of other securities beneficially owned by the Selling Stockholder:
	 	 	 
	 	 	 
	 	 	 

 

     

     

    

 

	5.	Relationships
                                         with the Company:

 

Except
as set forth below, neither the undersigned nor any of its affiliates, officers, directors or principal equity holders (owners
of 5% of more of the equity securities of the undersigned) has held any position or office or has had any other material relationship
with the Company (or its predecessors or affiliates) during the past three years.

 

		State any exceptions
                                         here:
	 	 
	 	 
	 	 

 

The
undersigned agrees to promptly notify the Company of any material inaccuracies or changes in the information provided herein that
may occur subsequent to the date hereof at any time while the Registration Statement remains effective; provided, that the undersigned
shall not be required to notify the Company of any changes to the number of securities held or owned by the undersigned or its
affiliates.

 

By
signing below, the undersigned consents to the disclosure of the information contained herein in its answers to Items 1 through
5 and the inclusion of such information in the Registration Statement and the related prospectus and
any amendments or supplements thereto. The undersigned understands that such information will be
relied upon by the Company in connection with the preparation or amendment of the Registration Statement and the related prospectus
and any amendments or supplements thereto.

 

IN
WITNESS WHEREOF the undersigned, by authority duly given, has caused this Notice and Questionnaire to be executed and delivered
either in person or by its duly authorized agent.

 

	Date:	 	 	Beneficial Owner:	 
	 	 	 	 

 

	 	 	 	By:	 	 
	 	 	 	 	 
	 	 	 	 	Name:	 
	 	 	 	 	Title:	 

 

PLEASE
FAX A COPY (OR EMAIL A .PDF COPY) OF THE COMPLETED AND EXECUTED NOTICE AND QUESTIONNAIRE TO:Exhibit 10.10

 

EXECUTION VERSION

 

REGISTRATION RIGHTS AGREEMENT

 

This Registration Rights Agreement (this
“Agreement”) is made and entered into as of December 26, 2018, between Phunware Inc., a Delaware corporation
(“Phunware,” as the successor entity to Stellar Acquisition III Inc., a Republic of Marshall Islands corporation (“Stellar”),
following the Conversion (as hereinafter defined) of Stellar into a Delaware corporation (Phunware Inc.) in accordance with the
applicable provisions of The Republic of the Marshall Islands Associations Law, as amended, and the applicable provisions of the
Delaware General Corporation Law and in connection with the Merger (as hereinafter defined), the “Company”),
and each of the several purchasers signatory hereto (each such purchaser, a “Purchaser” and, collectively, the
“Purchasers”).

 

This Agreement is made pursuant to the
Securities Purchase Agreement, dated as of the date hereof, between the Company and each Purchaser (the “Purchase Agreement”).

 

The Company and each Purchaser hereby agrees as follows:

 

1. Definitions.

 

Capitalized terms used and not otherwise
defined herein that are defined in the Purchase Agreement shall have the meanings given such terms in the Purchase Agreement. As
used in this Agreement, the following terms shall have the following meanings:

 

“Advice” shall have the meaning set forth
in Section 6(d).

 

“Certificate of Designation”
means the Certificate of Designation for the Preferred Stock to be filed by the Company with the Secretary of State of the State
of Delaware immediately following the Conversion.

 

“Common Stock” means
the common stock of the Company, par value $0.0001 per share, and any other class of securities into which such securities may
hereafter be reclassified or changed.

 

“Conversion” means the
statutory conversion of Stellar from a Republic of Marshall Islands corporation into Phunware, a Delaware Corporation, immediately
prior to the closing of the offering in which the Registrable Securities were issued and the closing of the Merger.

 

“Conversion Shares”
means, collectively, the shares of Common Stock issuable upon conversion of the shares of Preferred Stock.

 

     

     

    

 

“Effectiveness
Date” means, with respect to the Initial Registration Statement required to be filed hereunder, the 90th
calendar day following the date on which any Conversion Shares are issued to a Purchaser (or, in the event of a “full review”
by the Commission, the 120th calendar day following the date on which any Conversion
Shares are issued to a Purchaser) and with respect to any additional Registration Statements which may be required pursuant to
Section 2(c) or Section 3(c), the 90th calendar day following the date on which an additional Registration Statement
is required to be filed hereunder (or, in the event of a “full review” by the Commission, the 120th calendar
day following the date such additional Registration Statement is required to be filed hereunder); provided, however,
that in the event the Company is notified by the Commission that one or more of the above Registration Statements will not be
reviewed or is no longer subject to further review and comments, the Effectiveness Date as to such Registration Statement shall
be the fifth Trading Day following the date on which the Company is so notified if such date precedes the dates otherwise required
above, provided, further, if such Effectiveness Date falls on a day that is not a Trading Day, then the Effectiveness Date shall
be the next succeeding Trading Day.

 

“Effectiveness Period” shall have the meaning
set forth in Section 2(a).

 

“Event” shall have the meaning set forth in Section 2(d).

 

“Event Date”
shall have the meaning set forth in Section 2(d).

 

“Filing Date” means,
with respect to the Initial Registration Statement required hereunder, the 45th calendar day following the date on which
any Conversion Shares are issued to a Purchaser and, with respect to any additional Registration Statements which may be required
pursuant to Section 2(c) or Section 3(c), the earliest practical date following the date on which any Conversion Shares are issued
to a Purchaser on which the Company is permitted by SEC Guidance to file such additional Registration Statement related to the
Registrable Securities.

 

“Holder” or “Holders”
means the holder or holders, as the case may be, from time to time of Registrable Securities, including the Purchasers.

 

“Indemnified Party” shall have the meaning
set forth in Section 5(c).

 

“Indemnifying Party” shall have the meaning set forth in Section 5(c).

 

“Initial Registration Statement”
means the initial Registration Statement filed pursuant to this Agreement.

 

“Losses” shall have the meaning set forth
in Section 5(a).

 

“Merger” means the proposed
merger of a wholly owned subsidiary of the Company with and into Phunware, pursuant to the Merger Agreement.

 

“Merger Agreement” means
the agreement and plan of merger dated as of February 27, 2018, as amended, among the Company, Phunware and certain other parties.

 

    2

     

    

 

“Offering”
the securities offering pursuant to which the Registrable Securities were offered and sold to the Purchasers in a private
placement transaction pursuant to the terms of the Purchase Agreement.

 

“Phunware” means Phunware Inc., a Delaware
corporation.

 

“Plan of Distribution” shall have the meaning
set forth in Section 2(a).

 

“Preferred Stock” means
the shares of the Company’s 8% Series A Convertible Preferred Stock, initially issued on the date hereof to the Purchasers.

 

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

 

“Registrable
Securities” means, as of any date of determination, (a) all Conversion Shares; (b) all shares of Common Stock then issued
and issuable upon conversion in full of the Preferred Stock (assuming on such date the Preferred Stock is converted in full without
regard to any conversion limitations therein), (c) any shares of Common Stock issued and issuable in connection with Preferred
Stock issued as dividends; (d) all shares of Common Stock issued and issuable upon redemption of the Preferred Stock; assuming
all permissible redemption payments are made in shares of Common Stock and the Preferred Stock are held for the maximum amount
of time set forth in the Certificate of Designation, (e) all Sponsor Shares; (f) all Warrant Shares then issued and issuable upon
exercise of the Sponsor Warrants (assuming on such date the Sponsor Warrants are exercised in full without regard to any exercise
limitations therein), (g) any additional shares of Common Stock issued and issuable in connection with any anti-dilution provisions
in the Preferred Stock (without giving effect to any limitations on conversion set forth in the Preferred Stock) and (h) any securities
issued or then issuable upon any stock split, dividend or other distribution, recapitalization or similar event with respect to
the foregoing; provided, however, that any such Registrable Securities shall cease to be Registrable Securities
(and the Company shall not be required to maintain the effectiveness of any, or file another, Registration Statement hereunder
with respect thereto) for so long as (i) a Registration Statement with respect to the sale of such Registrable Securities is declared
effective by the Commission under the Securities Act and such Registrable Securities have been disposed of by the Holder in accordance
with such effective Registration Statement, (ii) such Registrable Securities have been previously sold in accordance with Rule
144, or (iii) such securities become eligible for resale without volume or manner-of-sale restrictions and without current public
information requirements pursuant to Rule 144 as set forth in a written opinion letter to such effect,
addressed, delivered and acceptable to the Transfer Agent and the affected Holders (assuming that such securities and any securities
issuable upon exercise, conversion or exchange of which, or as a dividend upon which, such securities were issued or are issuable,
were at no time held by any Affiliate of the Company, and all Sponsor Warrants are exercised by “cashless exercise”
as provided in each of the Sponsor Warrants), as reasonably determined by the Company, upon the advice of counsel to the Company.

 

    3

     

    

 

“Registration Statement”
means any registration statement required to be filed hereunder pursuant to Section 2(a) and any additional registration statements
contemplated by Section 2(c) or Section 3(c), including (in each case) the Prospectus, amendments and supplements to any such registration
statement or Prospectus, including pre- and post-effective amendments, all exhibits thereto, and all material incorporated by reference
or deemed to be incorporated by reference in any such registration statement.

 

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

 

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

 

“Selling Stockholder Notice and
Questionnaire” shall have the meaning set forth in Section 3(a).

 

“SEC Guidance” means
(i) any publicly-available written or oral guidance of the Commission staff, or any comments, requirements or requests of the Commission
staff and (ii) the Securities Act.

 

“Warrant Shares” means
shares of Common Stock issuable upon exercise of the Sponsor Warrants issued to the Purchasers.

 

    4

     

    

 

2. Shelf Registration.

 

(a) On or prior to each Filing
Date, the Company shall prepare and file with the Commission a Registration Statement covering the resale of all of the Registrable
Securities that are not then registered on an effective Registration Statement for an offering to be made on a continuous basis
pursuant to Rule 415. Each Registration Statement filed hereunder shall be on Form S-3 (except if the Company is not then eligible
to register for resale the Registrable Securities on Form S-3, in which case such registration shall be on another appropriate
form in accordance herewith, subject to the provisions of Section 2(e)) and shall contain (unless otherwise directed by at least
85% in interest of the Holders) substantially the “Plan of Distribution” attached hereto as Annex A
and substantially the “Selling Stockholders” section attached hereto as Annex
B; provided, however, that no Holder shall be required to be named as an “underwriter” without such
Holder’s express prior written consent. Subject to the terms of this Agreement, the Company shall use its best efforts to
cause a Registration Statement filed under this Agreement (including, without limitation, under Section 3(c)) to be declared effective
under the Securities Act as promptly as possible after the filing thereof, but in any event no later than the applicable Effectiveness
Date, and shall use its best efforts to keep such Registration Statement continuously effective under the Securities Act until
the date that all Registrable Securities covered by such Registration Statement (i) have been sold, thereunder or pursuant to
Rule 144, or (ii) may be sold without volume or manner-of-sale restrictions pursuant to Rule 144 and without the requirement for
the Company to be in compliance with the current public information requirement under Rule 144, as determined by the counsel to
the Company pursuant to a written opinion letter to such effect, addressed and acceptable to the Transfer Agent and the affected
Holders (the “Effectiveness Period”). The Company shall telephonically request effectiveness of a Registration
Statement as of 5:00 p.m. (New York City time) on a Trading Day. The Company shall immediately notify the Holders via facsimile
or by e-mail of the effectiveness of a Registration Statement on the same Trading Day that the Company telephonically confirms
effectiveness with the Commission, which shall be the date requested for effectiveness of such Registration Statement. The Company
shall, by 9:30 a.m. (New York City time) on the Trading Day after the effective date of such Registration Statement, file a final
Prospectus with the Commission as required by Rule 424. Failure to so notify the Holder within one (1) Trading Day of such notification
of effectiveness or failure to file a final Prospectus as foresaid shall be deemed an Event under Section 2(d).

 

(b) Notwithstanding
the registration obligations set forth in Section 2(a), if the Commission informs the Company that all of the Registrable Securities
cannot, as a result of the application of Rule 415, be registered for resale as a secondary offering on a single registration
statement, the Company agrees to promptly inform each of the Holders thereof and use its commercially reasonable efforts to file
amendments to the Initial Registration Statement as required by the Commission, covering the maximum number of Registrable Securities
permitted to be registered by the Commission, on Form S-3 or such other form available to register for resale the Registrable
Securities as a secondary offering, subject to the provisions of Section 2(e); with respect to filing on Form S-3 or other appropriate
form, and subject to the provisions of Section 2(d) with respect to the payment of liquidated damages; provided, however,
that prior to filing such amendment, the Company shall be obligated to use diligent efforts to advocate with the Commission for
the registration of all of the Registrable Securities in accordance with the SEC Guidance, including without limitation, Compliance
and Disclosure Interpretation 612.09.

 

(c) Notwithstanding any other
provision of this Agreement and subject to the payment of liquidated damages pursuant to Section 2(d), if the Commission or
any SEC Guidance sets forth a limitation on the number of Registrable Securities permitted to be registered on a particular
Registration Statement as a secondary offering (and notwithstanding that the Company used diligent efforts to advocate with
the Commission for the registration of all or a greater portion of Registrable Securities), unless otherwise directed
in writing by a Holder as to its Registrable Securities, the number of Registrable Securities to be registered on such
Registration Statement will be reduced as follows:

 

a. First, the Company shall reduce or eliminate
any securities to be included other than Registrable Securities;

 

    5

     

    

 

b. Second, the Company shall reduce Registrable
Securities represented by Warrant Shares (applied, in the case that some Warrant Shares may be registered, to the Holders on a
pro rata basis based on the total number of unregistered Warrant Shares held by such Holders); and

 

c. Third, the Company shall reduce Registrable
Securities represented by Conversion Shares (applied, in the case that some Conversion Shares may be registered, to the Holders
on a pro rata basis based on the total number of unregistered Conversion Shares held by such Holders).

 

In the event of a cutback hereunder, the
Company shall give the Holder at least five (5) Trading Days prior written notice along with the calculations as to such Holder’s
allotment. In the event the Company amends the Initial Registration Statement in accordance with the foregoing, the Company will
use its best efforts to file with the Commission, as promptly as allowed by Commission or SEC Guidance provided to the Company
or to registrants of securities in general, one or more registration statements on Form S-3 or such other form available to register
for resale those Registrable Securities that were not registered for resale on the Initial Registration Statement, as amended.

 

(d) If: (i) the Initial
Registration Statement is not filed on or prior to its Filing Date (if the Company files the Initial Registration Statement
without affording the Holders the opportunity to review and comment on the same as required by Section 3(a) herein, the
Company shall be deemed to have not satisfied this clause (i)), or (ii) the Company fails to file with the Commission a
request for acceleration of a Registration Statement in accordance with Rule 461 promulgated by the Commission pursuant to
the Securities Act, within five Trading Days of the date that the Company is notified (orally or in writing, whichever is
earlier) by the Commission that such Registration Statement will not be “reviewed” or will not be subject to
further review, or (iii) prior to the effective date of a Registration Statement, the Company fails to file a pre-effective
amendment and otherwise respond in writing to comments made by the Commission in respect of such Registration Statement
within ten (10) calendar days after the receipt of comments by or notice from the Commission that such amendment is required
in order for such Registration Statement to be declared effective, or (iv) a Registration Statement registering for resale
all of the Registrable Securities is not declared effective by the Commission by the Effectiveness Date of the Initial
Registration Statement, or (v) after the effective date of a Registration Statement, such Registration Statement ceases for
any reason to remain continuously effective as to all Registrable Securities included in such Registration Statement, or the
Holders are otherwise not permitted to utilize the Prospectus therein to resell such Registrable Securities, for more than
ten (10) consecutive calendar days or more than an aggregate of fifteen (15) calendar days
(which need not be consecutive calendar days) during any 12-month period (any such failure or breach being referred to as an “Event”,
and for purposes of clauses (i) and (iv), the date on which such Event occurs, and for purpose of clause (ii) the date on
which such five (5) Trading Day period is exceeded, and for purpose of clause (iii) the date which such ten (10) calendar day
period is exceeded, and for purpose of clause (v) the date on which such ten (10) or fifteen (15) calendar day period, as
applicable, is exceeded being referred to as “Event Date”), then, in addition to any other rights the
Holders may have hereunder or under applicable law, on each such Event Date and on each monthly anniversary of each such
Event Date (if the applicable Event shall not have been cured by such date) until the applicable Event is cured, the Company
shall pay to each Holder an amount in cash, as partial liquidated damages and not as a penalty, equal to the product of 2.0%
multiplied by the aggregate Subscription Amount paid by such Holder pursuant to the Purchase Agreement. If the Company fails
to pay any partial liquidated damages pursuant to this Section in full within seven days after the date payable, the
Company will pay interest thereon at a rate of 18% per annum (or such lesser maximum amount that is permitted to be paid by
applicable law) to the Holder, accruing daily from the date such partial liquidated damages are due until such amounts, plus
all such interest thereon, are paid in full. The partial liquidated damages pursuant to the terms hereof shall apply on a
daily pro rata basis for any portion of a month prior to the cure of an Event.

 

    6

     

    

 

(e) If Form S-3 is not available for
the registration of the resale of Registrable Securities hereunder, the Company shall (i) register the resale of the
Registrable Securities on another appropriate form and (ii) undertake to register the Registrable Securities on Form S-3 as
soon as such form is available, provided that the Company shall maintain the effectiveness of the Registration Statement then
in effect until such time as a Registration Statement on Form S-3 covering the Registrable Securities has been declared
effective by the Commission.

 

(f) Notwithstanding anything to the
contrary contained herein, in no event shall the Company be permitted to name any Holder or affiliate of a Holder as any
Underwriter without the prior written consent of such Holder.

 

3. Registration Procedures.

 

In connection with the Company’s registration obligations
hereunder, the Company shall:

 

(a) Not less than five (5) Trading
Days prior to the filing of each Registration Statement and not less than one (1) Trading Day prior to the filing of any related
Prospectus or any amendment or supplement thereto (including any document that would be incorporated or deemed to be incorporated
therein by reference), the Company shall (i) furnish to each Holder copies of all such documents proposed to be filed, which documents
(other than those incorporated or deemed to be incorporated by reference) will be subject to the review of such Holders, and (ii)
cause its officers and directors, counsel and independent registered public accountants to respond to such inquiries as shall
be necessary, in the reasonable opinion of respective counsel to each Holder, to conduct a reasonable
investigation within the meaning of the Securities Act. The Company shall not file a Registration Statement or any such Prospectus
or any amendments or supplements thereto to which the Holders of a majority of the Registrable Securities shall reasonably object
in good faith, provided that, the Company is notified of such objection in writing no later than five (5) Trading Days after the
Holders have been so furnished copies of a Registration Statement or one (1) Trading Day after the Holders have been so furnished
copies of any related Prospectus or amendments or supplements thereto. Each Holder agrees to furnish to the Company a completed
questionnaire in the form attached to this Agreement as Annex C (a “Selling Stockholder Notice and Questionnaire”)
on a date that is not less than two (2) Trading Days prior to the Filing Date or by the end of the fourth (4th) Trading
Day following the date on which such Holder receives draft materials in accordance with this Section.

 

(b) (i) Prepare and file with the Commission
such amendments, including post-effective amendments, to a Registration Statement and the Prospectus used in connection therewith as may be necessary to keep a
Registration Statement continuously effective as to the applicable Registrable Securities for the Effectiveness Period and prepare
and file with the Commission such additional Registration Statements in order to register for resale under the Securities Act all
of the Registrable Securities, (ii) cause the related Prospectus to be amended or supplemented by any required Prospectus supplement
(subject to the terms of this Agreement), and, as so supplemented or amended, to be filed pursuant to Rule 424, (iii) respond as
promptly as reasonably possible to any comments received from the Commission with respect to a Registration Statement or any amendment
thereto and provide as promptly as reasonably possible to the Holders true and complete copies of all correspondence from and to
the Commission relating to a Registration Statement (provided that, the Company shall excise any information contained therein
which would constitute material non-public information regarding the Company or any of its Subsidiaries), and (iv) comply in all
material respects with the applicable provisions of the Securities Act and the Exchange Act with respect to the disposition of
all Registrable Securities covered by a Registration Statement during the applicable period in accordance (subject to the terms
of this Agreement) with the intended methods of disposition by the Holders thereof set forth in such Registration Statement as
so amended or in such Prospectus as so supplemented.

 

(c) If during the Effectiveness
Period, the number of Registrable Securities at any time exceeds 100% of the number of shares of Common Stock then registered
in a Registration Statement, then the Company shall file as soon as reasonably practicable, but in any case prior to the
applicable Filing Date, an additional Registration Statement covering the resale by the Holders of not less than the number
of such Registrable Securities.

 

    7

     

    

 

(d)
Notify the Holders of Registrable Securities to be sold (which notice shall, pursuant to clauses (iii) through (vi) hereof,
be accompanied by an instruction to suspend the use of the Prospectus until the requisite changes have been made) as promptly
as reasonably possible (and, in the case of (i)(A) below, not less than one (1) Trading Day prior to such filing) and (if
requested by any such Person) confirm such notice in writing no later than one (1) Trading Day following the day (i)(A) when
a Prospectus or any Prospectus supplement or post-effective amendment to a Registration
Statement is proposed to be filed, (B) when the Commission notifies the Company whether there will be a “review”
of such Registration Statement and whenever the Commission comments in writing on such Registration Statement, and (C) with
respect to a Registration Statement or any post-effective amendment, when the same has become effective, (ii) of any request
by the Commission or any other federal or state governmental authority for amendments or supplements to a Registration
Statement or Prospectus or for additional information, (iii) of the issuance by the Commission or any other federal or state
governmental authority of any stop order suspending the effectiveness of a Registration Statement covering any or all of the
Registrable Securities or the initiation of any Proceedings for that purpose, (iv) of the receipt by the Company of any
notification with respect to the suspension of the qualification or exemption from qualification of any of the Registrable
Securities for sale in any jurisdiction, or the initiation or threatening of any Proceeding for such purpose, (v) of the
occurrence of any event or passage of time that makes the financial statements included in a Registration
Statement ineligible for inclusion therein or any statement made in a Registration Statement or Prospectus or any document
incorporated or deemed to be incorporated therein by reference untrue in any material respect or that requires any revisions
to a Registration Statement, Prospectus or other documents so that, in the case of a Registration Statement or the
Prospectus, as the case may be, it will not contain any untrue statement of a material fact or omit to state any material
fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which
they were made, not misleading, and (vi) of the occurrence or existence of any pending corporate development with respect to
the Company that the Company believes may be material and that, in the determination of the Company, makes it not in the best
interest of the Company to allow continued availability of a Registration Statement or Prospectus; provided, however,
that in no event shall any such notice contain any information which would constitute material, non-public information
regarding the Company or any of its Subsidiaries.

 

(e) Use its best efforts to avoid the
issuance of, or, if issued, obtain the withdrawal of (i) any order stopping or suspending the effectiveness of a Registration
Statement, or (ii) any suspension of the qualification (or exemption from qualification) of any of the Registrable Securities
for sale in any jurisdiction, at the earliest practicable moment.

 

(f) Furnish to each Holder, without
charge, at least one conformed copy of each such Registration Statement and each amendment thereto, including financial
statements and schedules, all documents incorporated or deemed to be incorporated therein by reference to the extent
requested by such Person, and all exhibits to the extent requested by such Person (including those previously furnished or
incorporated by reference) promptly after the filing of such documents with the Commission; provided, that any such item
which is available on the EDGAR system (or successor thereto) need not be furnished in physical form.

 

    8

     

    

 

(g) Subject to the terms of this
Agreement, the Company hereby consents to the use of such Prospectus and each amendment or supplement thereto by each of
the selling Holders in connection with the offering and sale of the Registrable Securities
covered by such Prospectus and any amendment or supplement thereto, except after the giving of any notice pursuant to Section
3(d).

 

(h) Prior to any resale of
Registrable Securities by a Holder, use its commercially reasonable efforts to register or qualify or cooperate with the
selling Holders in connection with the registration or qualification (or exemption from the Registration or qualification) of
such Registrable Securities for the resale by the Holder under the securities or Blue Sky laws of such jurisdictions within
the United States as any Holder reasonably requests in writing, to keep each registration or qualification (or exemption
therefrom) effective during the Effectiveness Period and to do any and all other acts or things reasonably necessary to
enable the disposition in such jurisdictions of the Registrable Securities covered by each Registration Statement, provided
that the Company shall not be required to qualify generally to do business in any jurisdiction where it is not then so
qualified, subject the Company to any material tax in any such jurisdiction where it is not then so subject or file a general
consent to service of process in any such jurisdiction.

 

(i) If requested by a Holder,
cooperate with such Holder to facilitate the timely preparation and delivery of certificates representing Registrable
Securities to be delivered to a transferee pursuant to a Registration Statement, which certificates shall be free, to the
extent permitted by the Purchase Agreement, of all restrictive legends, and to enable such Registrable Securities to be in
such denominations and registered in such names as any such Holder may request.

 

(j) Upon the occurrence of any event
contemplated by Section 3(d), as promptly as reasonably possible under the circumstances taking into account the
Company’s good faith assessment of any adverse consequences to the Company and its stockholders of the premature
disclosure of such event, prepare a supplement or amendment, including a post-effective amendment, to a Registration
Statement or a supplement to the related Prospectus or any document incorporated or deemed to be incorporated therein by
reference, and file any other required document so that, as thereafter delivered, neither a Registration Statement nor such
Prospectus will contain an untrue statement of a material fact or omit to state a material fact required to be stated therein
or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading. If the
Company notifies the Holders in accordance with clauses (iii) through (vi) of Section 3(d) above to suspend the use of any
Prospectus until the requisite changes to such Prospectus have been made, then the Holders shall suspend use of such
Prospectus. The Company will use its best efforts to ensure that the use of the Prospectus may be resumed as promptly as is
practicable. The Company shall be entitled to exercise its right under this Section 3(j) to suspend the availability of
a Registration Statement and Prospectus, subject to the payment of partial liquidated damages otherwise required pursuant to
Section 2(d), for a period not to exceed 60 calendar days (which need not be consecutive days) in any 12-month period.

 

    9

     

    

 

(k) Otherwise use
commercially reasonable efforts to comply with all applicable rules and regulations of the Commission under the Securities
Act and the Exchange Act, including, without limitation, Rule 172 under the Securities Act,
file any final Prospectus, including any supplement or amendment thereof, with the Commission pursuant to Rule 424 under the
Securities Act, promptly inform the Holders in writing if, at any time during the Effectiveness Period, the Company does not
satisfy the conditions specified in Rule 172 and, as a result thereof, the Holders are required to deliver a Prospectus in
connection with any disposition of Registrable Securities and take such other actions as may be reasonably necessary to
facilitate the registration of the Registrable Securities hereunder.

 

(l) The Company shall use its best
efforts to maintain eligibility for use of Form S-3 (or any successor form thereto) for the registration of the resale of
Registrable Securities.

 

(m) The Company may require each selling
Holder to furnish to the Company a certified statement as to the number of shares of Common Stock beneficially owned by such Holder
and, if required by the Commission, the natural persons thereof that have voting and dispositive control over the shares. During
any periods that the Company is unable to meet its obligations hereunder with respect to the registration of the Registrable Securities
solely because any Holder fails to furnish such information within three Trading Days of the Company’s request, any liquidated
damages that are accruing at such time as to such Holder only shall be tolled and any Event that may otherwise occur solely because
of such delay shall be suspended as to such Holder only, until such information is delivered to the Company.

 

4. Registration Expenses. All
fees and expenses incident to the performance of or compliance with, this Agreement by the Company shall be borne by the
Company whether or not any Registrable Securities are sold pursuant to a Registration Statement. The fees and expenses
referred to in the foregoing sentence shall include, without limitation, (i) all registration and filing fees (including,
without limitation, fees and expenses of the Company’s counsel and independent registered public accountants) (A) with
respect to filings made with the Commission, (B) with respect to filings required to be made with any Trading Market on which
the Common Stock is then listed for trading, and (C) in compliance with applicable state securities or Blue Sky laws
reasonably agreed to by the Company in writing (including, without limitation, fees and disbursements of counsel for the
Company in connection with Blue Sky qualifications or exemptions of the Registrable Securities), (ii) printing expenses
(including, without limitation, expenses of printing certificates for Registrable Securities), (iii) messenger, telephone and
delivery expenses, (iv) fees and disbursements of counsel for the Company, (v) Securities Act liability insurance, if the
Company so desires such insurance, (vi) reasonable fees and expenses of one counsel to the Holders (up to $10,000); and (vii)
fees and expenses of all other Persons retained by the Company in connection with the consummation of the transactions
contemplated by this Agreement. In addition, the Company shall be responsible for all of its internal expenses incurred in
connection with the consummation of the transactions contemplated by this Agreement (including, without limitation, all
salaries and expenses of its officers and employees performing legal or accounting duties), the expense of any annual
audit and the fees and expenses incurred in connection with the listing of the Registrable Securities on any securities
exchange as required hereunder. In no event shall the Company be responsible for any broker or similar commissions of
any Holder or, except to the extent provided for in the Transaction Documents, any legal fees or other costs of the
Holders.

 

    10

     

    

 

5. Indemnification.

 

(a) Indemnification by the Company. The Company
shall, notwithstanding any termination of this Agreement, indemnify and hold harmless each Holder, the officers, directors,
members, partners, agents, brokers (including brokers who offer and sell Registrable Securities as principal as a result of a
pledge or any failure to perform under a margin call of Common Stock), investment advisors and employees (and any other
Persons with a functionally equivalent role of a Person holding such titles, notwithstanding a lack of such title or any
other title) of each of them, each Person who controls any such Holder (within the meaning of Section 15 of the Securities
Act or Section 20 of the Exchange Act) and the officers, directors, members, stockholders, partners, agents and employees
(and any other Persons with a functionally equivalent role of a Person holding such titles, notwithstanding a lack of such
title or any other title) of each such controlling Person, to the fullest extent permitted by applicable law, from and
against any and all losses, claims, damages, liabilities, costs (including, without limitation, reasonable attorneys’
fees) and expenses (collectively, “Losses”), as incurred, arising out of or relating to (1) any untrue or
alleged untrue statement of a material fact contained in a Registration Statement, any Prospectus or any form of prospectus
or in any amendment or supplement thereto or in any preliminary prospectus, or arising out of or relating to any omission or
alleged omission of a material fact required to be stated therein or necessary to make the statements therein (in the case of
any Prospectus or supplement thereto, in light of the circumstances under which they were made) not misleading or (2) any
violation or alleged violation by the Company of the Securities Act, the Exchange Act or any state securities law, or any
rule or regulation thereunder, in connection with the performance of its obligations under this Agreement, except to the
extent, but only to the extent, that (i) such untrue statements or omissions are based solely upon information regarding such
Holder furnished in writing to the Company by such Holder expressly for use therein, or to the extent that such information
relates to such Holder or such Holder’s proposed method of distribution of Registrable Securities and was reviewed and
expressly approved in writing by such Holder expressly for use in a Registration Statement, such Prospectus or in any
amendment or supplement thereto (it being understood that the Holder has approved Annex A hereto for this purpose) or (ii) in
the case of an occurrence of an event of the type specified in Section 3(d)(iii)-(vi), the use by such Holder of an
outdated, defective or otherwise unavailable Prospectus after the Company has notified such Holder in writing that the
Prospectus is outdated, defective or otherwise unavailable for use by such Holder and prior to the receipt by such Holder of
the Advice contemplated in Section 6(d). The Company shall notify the Holders promptly of the institution, threat or
assertion of any Proceeding arising from or in connection with the transactions contemplated by this Agreement of which the
Company is aware. Such indemnity shall remain in full force and effect regardless of any investigation made by or on behalf
of such indemnified person and shall survive the transfer of any Registrable Securities by any of the Holders in accordance
with Section 6(h).

 

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(b) Indemnification
by Holders. Each Holder shall, severally and not jointly, indemnify and hold harmless the Company, its directors, officers,
agents and employees, each Person who controls the Company (within the meaning of Section 15 of the Securities Act and Section
20 of the Exchange Act), and the directors, officers, agents or employees of such controlling Persons, to the fullest extent permitted
by applicable law, from and against all Losses, as incurred, to the extent arising out of or based solely upon: any untrue or
alleged untrue statement of a material fact contained in any Registration Statement, any Prospectus, or in any amendment or supplement
thereto or in any preliminary prospectus, or arising out of or relating to any omission or alleged omission of a material fact
required to be stated therein or necessary to make the statements therein (in the case of any Prospectus or supplement thereto,
in light of the circumstances under which they were made) not misleading (i) to the extent, but only to the extent, that such
untrue statement or omission is contained in any information so furnished in writing by such Holder to the Company expressly for
inclusion in such Registration Statement or such Prospectus or (ii) to the extent, but only to the extent, that such information
relates to such Holder’s information provided in the Selling Stockholder Notice and Questionnaire or the proposed method
of distribution of Registrable Securities and was reviewed and expressly approved in writing by such Holder expressly for use
in a Registration Statement (it being understood that the Holder has approved Annex A hereto for this purpose), such Prospectus
or in any amendment or supplement thereto. In no event shall the liability of a selling Holder be greater in amount than the dollar
amount of the proceeds (net of all expenses paid by such Holder in connection with any claim relating to this Section 5 and the
amount of any damages such Holder has otherwise been required to pay by reason of such untrue statement or omission) received
by such Holder upon the sale of the Registrable Securities included in the Registration Statement giving rise to such indemnification
obligation.

 

(c) Conduct of Indemnification
Proceedings. If any Proceeding shall be brought or asserted against any Person entitled to indemnity hereunder (an “Indemnified
Party”), such Indemnified Party shall promptly notify the Person from whom indemnity is sought (the “Indemnifying
Party”) in writing, and the Indemnifying Party shall have the right to assume the defense thereof, including the
employment of counsel reasonably satisfactory to the Indemnified Party and the payment of all fees and expenses incurred in
connection with defense thereof, provided that the failure of any Indemnified Party to give such notice shall not relieve the
Indemnifying Party of its obligations or liabilities pursuant to this Agreement, except (and only) to the extent that it
shall be finally determined by a court of competent jurisdiction (which determination is not subject to appeal or further
review) that such failure shall have materially and adversely prejudiced the Indemnifying Party.

 

An Indemnified Party shall have the
right to employ separate counsel in any such Proceeding and to participate in the defense thereof, but the fees and expenses
of such counsel shall be at the expense of such Indemnified Party or Parties unless: (1) the Indemnifying Party has agreed in
writing to pay such fees and expenses, (2) the Indemnifying Party shall have failed promptly to assume the defense of such
Proceeding and to employ counsel reasonably satisfactory to such Indemnified Party in any such Proceeding, or (3) the named
parties to any such Proceeding (including any impleaded parties) include both such Indemnified Party and the Indemnifying
Party, and counsel to the Indemnified Party shall reasonably believe that a material conflict
of interest is likely to exist if the same counsel were to represent such Indemnified Party and the Indemnifying Party (in
which case, if such Indemnified Party notifies the Indemnifying Party in writing that it elects to employ separate counsel at
the expense of the Indemnifying Party, the Indemnifying Party shall not have the right to assume the defense thereof and the
reasonable fees and expenses of no more than one separate counsel shall be at the expense of the Indemnifying Party). The
Indemnifying Party shall not be liable for any settlement of any such Proceeding effected without its written consent, which
consent shall not be unreasonably withheld or delayed. No Indemnifying Party shall, without the prior written consent of the
Indemnified Party, effect any settlement of any pending Proceeding in respect of which any Indemnified Party is a party,
unless such settlement includes an unconditional release of such Indemnified Party from all liability on claims that are the
subject matter of such Proceeding.

 

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Subject to the terms of this Agreement,
all reasonable fees and expenses of the Indemnified Party (including reasonable fees and expenses to the extent incurred in connection
with investigating or preparing to defend such Proceeding in a manner not inconsistent with this Section) shall be paid to the
Indemnified Party, as incurred, within ten Trading Days of written notice thereof to the Indemnifying Party, provided that the
Indemnified Party shall promptly reimburse the Indemnifying Party for that portion of such fees and expenses applicable to such
actions for which such Indemnified Party is finally determined by a court of competent jurisdiction (which determination is not
subject to appeal or further review) not to be entitled to indemnification hereunder.

 

(d) Contribution. If the indemnification under
Section 5(a) or 5(b) is unavailable to an Indemnified Party or insufficient to hold an Indemnified Party harmless for any
Losses, then each Indemnifying Party shall contribute to the amount paid or payable by such Indemnified Party, in such
proportion as is appropriate to reflect the relative fault of the Indemnifying Party and Indemnified Party in connection with
the actions, statements or omissions that resulted in such Losses as well as any other relevant equitable considerations. The
relative fault of such Indemnifying Party and Indemnified Party shall be determined by reference to, among other things,
whether any action in question, including any untrue or alleged untrue statement of a material fact or omission or alleged
omission of a material fact, has been taken or made by, or relates to information supplied by, such Indemnifying Party or
Indemnified Party, and the parties’ relative intent, knowledge, access to information and opportunity to correct or
prevent such action, statement or omission. The amount paid or payable by a party as a result of any Losses shall be deemed
to include, subject to the limitations set forth in this Agreement, any reasonable attorneys’ or other fees or expenses
incurred by such party in connection with any Proceeding to the extent such party would have been indemnified for such fees
or expenses if the indemnification provided for in this Section was available to such party in accordance with its terms.

 

The
parties hereto agree that it would not be just and equitable if contribution pursuant to this Section 5(d) were determined by
pro rata allocation or by any other method of allocation that does not take into account the equitable considerations
referred to in the immediately preceding paragraph. In no event shall the contribution
obligation of a Holder of Registrable Securities be greater in amount than the dollar amount of the proceeds (net of all
expenses paid by such Holder in connection with any claim relating to this Section 5 and the amount of any damages such
Holder has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged
omission) received by it upon the sale of the Registrable Securities giving rise to such contribution obligation.

 

The indemnity and contribution agreements
contained in this Section are in addition to any liability that the Indemnifying Parties may have to the Indemnified Parties.

 

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6. Miscellaneous.

 

(a) Remedies.
In the event of a breach by the Company or by a Holder of any of their respective obligations under this Agreement, each Holder
or the Company, as the case may be, in addition to being entitled to exercise all rights granted by law and under this Agreement,
including recovery of damages, shall be entitled to specific performance of its rights under this Agreement. Each of the Company
and each Holder agrees that monetary damages would not provide adequate compensation for any losses incurred by reason of a breach
by it of any of the provisions of this Agreement and hereby further agrees that, in the event of any action for specific performance
in respect of such breach, it shall not assert or shall waive the defense that a remedy at law would be adequate.

 

(b) No
Piggyback on Registrations; Prohibition on Filing Other Registration Statements. Neither the Company nor any of its security
holders (other than the Holders in such capacity pursuant hereto) may include securities of the Company in any Registration Statements
other than the Registrable Securities. The Company shall not file any other registration statements until all Registrable Securities
are registered pursuant to a Registration Statement that is declared effective by the Commission, provided that this Section 6(b)
shall not prohibit the Company from filing amendments to registration statements filed prior to the date of this Agreement.

 

(c) [RESERVED]

 

(d) Discontinued
Disposition. By its acquisition of Registrable Securities, each Holder agrees that, upon receipt of a notice from the Company
of the occurrence of any event of the kind described in Section 3(d)(iii) through (vi), such Holder will forthwith discontinue
disposition of such Registrable Securities under a Registration Statement until it is advised in writing (the “Advice”)
by the Company that the use of the applicable Prospectus (as it may have been supplemented or amended) may be resumed. The Company
will use its best efforts to ensure that the use of the Prospectus may be resumed as promptly as is practicable. The Company agrees
and acknowledges that any periods during which the Holder is required to discontinue the disposition of the Registrable Securities
hereunder shall be subject to the provisions of Section 2(d).

 

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(e) Piggy-Back
Registrations. If, at any time during the Effectiveness Period, there is not an effective Registration Statement covering
all of the Registrable Securities, and in particular the Warrant Shares, and the Company shall determine to prepare and file with
the Commission a registration statement relating to an offering for its own account or the account of others under the Securities
Act of any of its equity securities, other than on Form S-4 or Form S-8 (each as promulgated under the Securities Act) or their
then equivalents relating to equity securities to be issued solely in connection with any acquisition of any entity or business
or equity securities issuable in connection with the Company’s stock option or other employee benefit plans, then the Company
shall deliver to each Holder a written notice of such determination and, if within fifteen days after the date of the delivery
of such notice, any such Holder shall so request in writing, the Company shall include in such registration statement all or any
part of such Registrable Securities such Holder requests to be registered; provided, however, that the Company shall not
be required to register any Registrable Securities pursuant to this Section 6(e) that are eligible for resale pursuant to Rule
144 (without volume restrictions or current public information requirements) promulgated by the Commission pursuant to the Securities
Act or that are the subject of a then effective Registration Statement that is available for resales or other dispositions by
such Holder.

 

(f) Amendments
and Waivers. The provisions of this Agreement, including the provisions of this sentence, may not be amended, modified or
supplemented, and waivers or consents to departures from the provisions hereof may not be given, unless the same shall be in writing
and signed by the Company and the Holders of 50.1% or more of the then outstanding Registrable Securities (for purposes of clarification,
this includes any Registrable Securities issuable upon exercise or conversion of any Security), provided that, if any amendment,
modification or waiver disproportionately and adversely impacts a Holder (or group of Holders), the consent of such disproportionately
impacted Holder (or group of Holders) shall be required. If a Registration Statement does not register all of the Registrable
Securities pursuant to a waiver or amendment done in compliance with the previous sentence, then the number of Registrable Securities
to be registered for each Holder shall be reduced pro rata among all Holders and each Holder shall have the right to designate
which of its Registrable Securities shall be omitted from such Registration Statement. Notwithstanding the foregoing, a waiver
or consent to depart from the provisions hereof with respect to a matter that relates exclusively to the rights of a Holder or
some Holders and that does not directly or indirectly affect the rights of other Holders may be given only by such Holder or Holders
of all of the Registrable Securities to which such waiver or consent relates; provided, however, that the provisions of
this sentence may not be amended, modified, or supplemented except in accordance with the provisions of the first sentence of
this Section 6(f). No consideration shall be offered or paid to any Person to amend or consent to a waiver or modification of
any provision of this Agreement unless the same consideration also is offered to all of the parties to this Agreement.

 

(g) Notices.
Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be delivered
as set forth in the Purchase Agreement.

 

(h) Successors
and Assigns. This Agreement shall inure to the benefit of and be binding upon the successors and permitted assigns of each
of the parties and shall inure to the benefit of each Holder. The Company may not assign (except by merger) its rights or obligations
hereunder without the prior written consent of all of the Holders of the then outstanding Registrable Securities. Each Holder
may assign their respective rights hereunder in the manner and to the Persons as permitted under Section 5.8 of the Purchase Agreement.

 

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(i)
No Inconsistent Agreements. Neither the Company nor any of its Subsidiaries has entered, as of the date hereof, nor shall
the Company or any of its Subsidiaries, on or after the date of this Agreement, enter into any agreement with respect to its securities,
that would have the effect of impairing the rights granted to the Holders in this Agreement or otherwise conflicts with the provisions
hereof. Except as set forth on Schedule 6(i), neither the Company nor any of its Subsidiaries has previously entered into
any agreement granting any registration rights with respect to any of its securities to any Person that have not been satisfied
in full.

 

(j) Execution
and Counterparts. This Agreement may be executed in two or more counterparts, all of which when taken together 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, it being understood that both parties need not sign the same counterpart. In the event that any signature is delivered
by facsimile transmission or by e-mail delivery of a “.pdf” format data file, such signature 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 facsimile or “.pdf” signature page were an original thereof.

 

(k) Governing
Law. All questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be determined
in accordance with the provisions of the Purchase Agreement.

 

(l) Cumulative
Remedies. The remedies provided herein are cumulative and not exclusive of any other remedies provided by law.

 

(m) Severability. If any term,
provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction to be invalid, illegal,
void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein shall remain in
full force and effect and shall in no way be affected, impaired or invalidated, and the parties hereto shall use their
commercially reasonable efforts to find and employ an alternative means to achieve the same or substantially the same result
as that contemplated by such term, provision, covenant or restriction. It is hereby stipulated and declared to be the
intention of the parties that they would have executed the remaining terms, provisions, covenants and restrictions without
including any of such that may be hereafter declared invalid, illegal, void or unenforceable.

 

(n) Headings.
The headings in this Agreement are for convenience only, do not constitute a part of the Agreement and shall not be deemed to
limit or affect any of the provisions hereof.

 

(o) Independent
Nature of Holders’ Obligations and Rights. The obligations of each Holder hereunder are several and not joint with
the obligations of any other Holder hereunder, and no Holder shall be responsible in any way for the performance of the
obligations of any other Holder hereunder. Nothing contained herein or in any other agreement or document delivered at any
closing, and no action taken by any Holder pursuant hereto or thereto, shall be deemed to constitute the Holders as a
partnership, an association, a joint venture or any other kind of group or entity, or create a presumption that the Holders
are in any way acting in concert or as a group or entity with respect to such obligations or the transactions contemplated by
this Agreement or any other matters, and the Company acknowledges that the Holders are not
acting in concert or as a group, and the Company shall not assert any such claim, with respect to such obligations or
transactions. Each Holder shall be entitled to protect and enforce its rights, including without limitation the rights
arising out of this Agreement, and it shall not be necessary for any other Holder to be joined as an additional party in any
proceeding for such purpose. The use of a single agreement with respect to the obligations of the Company contained was
solely in the control of the Company, not the action or decision of any Holder, and was done solely for the convenience of
the Company and not because it was required or requested to do so by any Holder. It is expressly understood and agreed that
each provision contained in this Agreement is between the Company and a Holder, solely, and not between the Company and the
Holders collectively and not between and among Holders.

 

********************

 

(Signature Pages Follow)

 

    16

     

    

 

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

 

	 	PHUNWARE INC.
	 	 	 	 
	 	By:	/s/ George Syllantavos
	 	 	Name:	George Syllantavos
	 	 	Title:	co-CEO

 

[SIGNATURE PAGE OF HOLDERS FOLLOWS]

 

     

     

    

 

SIGNATURE PAGE OF HOLDERS TO RRA

 

	Name of Holder:	Dominion Capital LLC	 
	 	 	 
	Signature of Authorized Signatory of Holder:	/s/ Mikhail Gurevich	 
	 	 	 
	Name of Authorized Signatory:	Mikhail Gurevich	 
	 	 	 
	Title of Authorized Signatory:	Managing Member	 

 

[SIGNATURE PAGES CONTINUE]

 

     

     

    

 

Annex A

 

Plan of Distribution

 

Each Selling Stockholder (the “Selling
Stockholders”) of the securities and any of their pledgees, assignees and successors-in-interest may, from time to time,
sell any or all of their securities covered hereby on the principal Trading Market or any other stock exchange, market or trading
facility on which the securities are traded or in private transactions. These sales may be at fixed or negotiated prices. A Selling
Stockholder may use any one or more of the following methods when selling securities:

 

		●	ordinary brokerage transactions and transactions in which
the broker-dealer solicits purchasers;

 

		●	block trades in which the broker-dealer will attempt to
sell the securities as agent but may position and resell a portion of the block as principal to facilitate the transaction;

 

		●	purchases by a broker-dealer as principal and resale by
the broker-dealer for its account;

 

		●	an exchange distribution in accordance with the rules of
the applicable exchange;

 

		●	privately negotiated transactions;

 

		●	settlement of short sales;

 

		●	in transactions through broker-dealers that agree with
the Selling Stockholders to sell a specified number of such securities at a stipulated price per security;

 

		●	through the writing or settlement of options or other hedging
transactions, whether through an options exchange or otherwise;

 

		●	a combination of any such methods of sale; or

 

		●	any other method permitted pursuant to applicable law.

 

The Selling Stockholders
may also sell securities under Rule 144 or any other exemption from registration under the Securities Act of 1933, as amended
(the “Securities Act”), if available, rather than under this prospectus.

 

Broker-dealers engaged by the
Selling Stockholders may arrange for other brokers-dealers to participate in sales. Broker-dealers may receive commissions or
discounts from the Selling Stockholders (or, if any broker-dealer acts as agent for the purchaser of securities, from the
purchaser) in amounts to be negotiated, but, except as set forth in a supplement to this
Prospectus, in the case of an agency transaction not in excess of a customary brokerage commission in compliance with FINRA
Rule 2440; and in the case of a principal transaction a markup or markdown in compliance with FINRA IM-2440.

 

    Annex A-1

     

    

 

In connection with the sale of the securities
or interests therein, the Selling Stockholders may enter into hedging transactions with broker-dealers or other financial institutions,
which may in turn engage in short sales of the securities in the course of hedging the positions they assume. The Selling Stockholders
may also sell securities short and deliver these securities to close out their short positions, or loan or pledge the securities
to broker-dealers that in turn may sell these securities. The Selling Stockholders may also enter into option or other transactions
with broker-dealers or other financial institutions or create one or more derivative securities which require the delivery to such
broker-dealer or other financial institution of securities offered by this prospectus, which securities such broker-dealer or other
financial institution may resell pursuant to this prospectus (as supplemented or amended to reflect such transaction).

 

The Selling Stockholders and any broker-dealers
or agents that are involved in selling the securities may be deemed to be “underwriters” within the meaning of the
Securities Act in connection with such sales. In such event, any commissions received by such broker-dealers or agents and any
profit on the resale of the securities purchased by them may be deemed to be underwriting commissions or discounts under the Securities
Act. Each Selling Stockholder has informed the Company that it does not have any written or oral agreement or understanding, directly
or indirectly, with any person to distribute the securities.

 

The Company is required to pay certain
fees and expenses incurred by the Company incident to the registration of the securities. The Company has agreed to indemnify the
Selling Stockholders against certain losses, claims, damages and liabilities, including liabilities under the Securities Act.

 

We agreed to keep this prospectus effective
until the earlier of (i) the date on which the securities may be resold by the Selling Stockholders without registration and without
regard to any volume or manner-of-sale limitations by reason of Rule 144, without the requirement for the Company to be in compliance
with the current public information under Rule 144 under the Securities Act or any other rule of similar effect or (ii) all of
the securities have been sold pursuant to this prospectus or Rule 144 under the Securities Act or any other rule of similar effect.
The resale securities will be sold only through registered or licensed brokers or dealers if required under applicable state securities
laws. In addition, in certain states, the resale securities covered hereby may not be sold unless they have been registered or
qualified for sale in the applicable state or an exemption from the registration or qualification requirement is available and
is complied with.

 

Under applicable rules and regulations
under the Exchange Act, any person engaged in the distribution of the resale securities may not simultaneously engage in market
making activities with respect to the common stock for the applicable restricted period, as defined in Regulation M, prior to the
commencement of the distribution. In addition, the

 

Selling
Stockholders will be subject to applicable provisions of the Exchange Act and the rules and regulations thereunder, including
Regulation M, which may limit the timing of purchases and sales of the common stock by the Selling Stockholders or any other person.
We will make copies of this prospectus available to the Selling Stockholders and have informed them of the need to deliver a copy
of this prospectus to each purchaser at or prior to the time of the sale (including by compliance with Rule 172 under the Securities
Act).

 

    Annex A-2

     

    

 

Annex
B

 

SELLING STOCKOLDERS

 

The common stock being offered by the selling
stockholders are those previously issued to the selling stockholders, and those issuable to the selling stockholders, upon exercise
of the warrants. For additional information regarding the issuances of those shares of common stock and warrants, see “Private
Placement of Common Shares and Warrants” above. We are registering the shares of common stock in order to permit the selling
stockholders to offer the shares for resale from time to time. Except for the ownership of the shares of common stock and the warrants,
the selling stockholders have not had any material relationship with us within the past three years.

 

The table below
lists the selling stockholders and other information regarding the beneficial ownership of the shares of common stock by each
of the selling stockholders. The second column lists the number of shares of common stock beneficially owned by each selling
stockholder, based on its ownership of the shares of common stock and warrants, as of ____________, 2018, assuming exercise of the
warrants held by the selling stockholders on that date, without regard to any limitations on exercises.

 

The third column lists the shares of common
stock being offered by this prospectus by the selling stockholders.

 

In accordance with
the terms of a registration rights agreement with the selling stockholders, this prospectus generally covers the resale of
the sum of (i) the number of shares of common stock issued to the selling stockholders in the _________________ and (ii) the
maximum number of shares of common stock issuable upon exercise of the related warrants, determined as if the outstanding
warrants were exercised in full as of the trading day immediately preceding the date this registration statement was
initially filed with the SEC, each as of the trading day immediately preceding the applicable date of determination and all
subject to adjustment as provided in the registration right agreement, without regard to any limitations on the exercise of
the warrants. The fourth column assumes the sale of all of the shares offered by the selling stockholders pursuant to this
prospectus.

 

Under the terms of the warrants, a selling
stockholder may not exercise the warrants to the extent such exercise would cause such selling stockholder, together with its affiliates
and attribution parties, to beneficially own a number of shares of common stock which would exceed 4.99% of our then outstanding
common stock following such exercise, excluding for purposes of such determination shares of common stock issuable upon exercise
of the warrants which have not been exercised. The number of shares in the second column does not reflect this limitation. The
selling stockholders may sell all, some or none of their shares in this offering. See “Plan of Distribution.”

 

	Name
    of Selling Stockholder	 	Number
    of

 shares of 

    Common Stock Owned 

    Prior to 

Offering 	 	Maximum

    Number of 

    shares of

 Common Stock 

    to be Sold

 Pursuant to this 

    Prospectus 	 	Number
    of

 shares of 

    Common 

Stock Owned 

    After Offering
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

 

    Annex B-1

     

    

 

Annex C

 

Phunware Inc.

 

Selling Stockholder Notice and Questionnaire

 

The undersigned beneficial
owner of common stock (the “Registrable Securities”) of Phunware Inc., a Delaware corporation (the “Company”),
understands that the Company has filed or intends to file with the Securities and Exchange Commission (the “Commission”)
a registration statement (the “Registration Statement”) for the registration and resale under Rule 415 of the
Securities Act of 1933, as amended (the “Securities Act”), of the Registrable Securities, in accordance with
the terms of the Registration Rights Agreement (the “Registration Rights Agreement”) to which this document
is annexed. A copy of the Registration Rights Agreement is available from the Company upon request at the address set forth below.
All capitalized terms not otherwise defined herein shall have the meanings ascribed thereto in the Registration Rights Agreement.

 

Certain legal consequences arise from being
named as a selling stockholder in the Registration Statement and the related prospectus. Accordingly, holders and beneficial owners
of Registrable Securities are advised to consult their own securities law counsel regarding the consequences of being named or
not being named as a selling stockholder in the Registration Statement and the related prospectus.

 

NOTICE

 

The undersigned beneficial owner (the “Selling
Stockholder”) of Registrable Securities hereby elects to include the Registrable Securities owned by it in the Registration
Statement.

 

    Annex C-1

     

    

 

The undersigned hereby provides the following information to
the Company and represents and warrants that such information is accurate:

 

QUESTIONNAIRE

 

		1.	Name.

 

		(a)	Full Legal Name of Selling Stockholder
	 	 	 
	 	 	 
	 	 	 
		(b)	Full Legal Name of Registered
Holder (if not the same as (a) above) through which Registrable Securities are held:
	 	 	 
	 	 	 
	 	 	 
		(c)	Full Legal Name of Natural
Control Person (which means a natural person who directly or indirectly alone or with others has power to vote or dispose of the
securities covered by this Questionnaire):
	 	 	 
	 	 	 

 

		2.	Address for Notices to
Selling Stockholder:

 

	 
	 
	 
	 
	 
	Telephone:
	 
	 
	Fax:
	 
	 
	 
	Contact Person:
	 
	 

 

    Annex C-2

     

    

 

		3.	Broker-Dealer Status:

 

		(a)	Are you a broker-dealer?

 

Yes   ☐        No   ☐

 

		(b)	If “yes” to Section
3(a), did you receive your Registrable Securities as compensation for investment banking services to the Company?

 

Yes   ☐        No   ☐

 

		Note:	If “no” to Section 3(b), the Commission’s
staff has indicated that you should be identified as an underwriter in the Registration Statement.

 

		(c)	Are you an affiliate of a broker-dealer?

 

Yes   ☐        No   ☐

 

		(d)	If you are an affiliate of a broker-dealer, do you certify
that you purchased the Registrable Securities in the ordinary course of business, and at the time of the purchase of the Registrable
Securities to be resold, you had no agreements or understandings, directly or indirectly, with any person to distribute the Registrable
Securities?

 

Yes   ☐        No   ☐

 

		Note:	If “no” to Section
3(d), the Commission’s staff has indicated that you should be identified as an underwriter in the Registration Statement.

 

		4.	Beneficial Ownership of Securities of the Company Owned
by the Selling Stockholder.

 

Except as set forth below in this Item
4, the undersigned is not the beneficial or registered owner of any securities of the Company other than the securities issuable
pursuant to the Purchase Agreement.

 

		(a)	Type and Amount of other securities beneficially owned
by the Selling Stockholder:
	 	 	 
	 	 	 
	 	 	 
	 	 	 

 

    Annex C-3

     

    

 

		5.	Relationships with the
Company:

 

Except as set forth below, neither the
undersigned nor any of its affiliates, officers, directors or principal equity holders (owners of 5% of more of the equity securities
of the undersigned) has held any position or office or has had any other material relationship with the Company (or its predecessors
or affiliates) during the past three years.

 

State any exceptions here:

 

	 	 
	 	 
	 	 

 

The undersigned agrees to promptly notify
the Company of any material inaccuracies or changes in the information provided herein that may occur subsequent to the date hereof
at any time while the Registration Statement remains effective; provided, that the undersigned shall not be required to notify
the Company of any changes to the number of securities held or owned by the undersigned or its affiliates.

 

By signing
below, the undersigned consents to the disclosure of the information contained herein in its answers to Items 1 through 5 and the
inclusion of such information in the Registration Statement and the related prospectus and any amendments or supplements
thereto. The undersigned understands that such information will be relied upon by the Company in
connection with the preparation or amendment of the Registration Statement and the related prospectus and any amendments or supplements
thereto.

 

IN WITNESS WHEREOF the undersigned, by
authority duly given, has caused this Notice and Questionnaire to be executed and delivered either in person or by its duly authorized
agent.

 

	Date:	 	 	Beneficial Owner:
	 	 	 	 
	 	 	 	 	 
	 	 	By:	 
	 	 	 	Name:
	 	 	 	Title:

 

PLEASE FAX A COPY (OR EMAIL A .PDF COPY) OF THE COMPLETED
AND EXECUTED NOTICE AND QUESTIONNAIRE TO:

 

    Annex C-4

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