Document:

Exhibit 10.2

 

Secured
Convertible Promissory Note Purchase Agreement

 

This Secured Convertible
Promissory Note Purchase Agreement (the “Agreement”) dated as of July 20, 2018 is made and entered into by and
among EVO Transportation & Energy Services, Inc., a Delaware corporation (the “Company”), each purchaser
listed on Schedule I hereto (each, an “Investor”).

 

Recitals

 

The Company is seeking
to raise financing for its operations. The Investors desire to lend funds to the Company on the terms and conditions set forth
in this Agreement.

 

Terms
and Conditions

 

Accordingly, in consideration
of the foregoing, the mutual promises set forth herein, and for other good and valuable consideration, the receipt and adequacy
of which are hereby acknowledged, the parties hereto agree as follows:

 

1. Securities.

 

(a) Promissory
Note. Subject to the terms and conditions hereof, the Company hereby agrees to issue and sell to each Investor,
and each Investor, severally and not jointly, hereby agrees to purchase from the Company, a secured convertible promissory note
(each, a “Note”) in the principal amount set forth beside the Investor’s name on Schedule I (the
“Loan Amount”), in substantially the form attached as Exhibit A.

 

(b) Warrant.
As additional consideration for the loan, the Company will issue to each Investor, concurrently with the delivery of the Note,
a warrant in substantially the form attached hereto as Exhibit B (each, a “Warrant”) to purchase the
number of shares of the Company’s common stock set forth beside the Investor’s name on Schedule I.

 

(c) Tax
Matters. The Company and the Investors, as a result of arm’s length bargaining, agree that:

 

(i) neither
the Investors nor any entity affiliated with the Investors has rendered any services to the Company in connection with this Agreement;

 

(ii) the
Warrants are not being issued as compensation;

 

(iii) the
aggregate fair market value of the Notes, if issued apart from the Warrants, is $2,999,000 and the aggregate fair market value
of the Warrants, if issued apart from the Notes, is $1,000; and

 

(iv) all
tax returns and other informational returns of each party relative to this Agreement and the Notes and Warrants shall consistently
reflect the matters referred to in this Section 1(c).

 

2. Closings.

 

(a) Initial
Closing. The initial closing of the sale and purchase of the Notes and Warrants (the “Closing”) will
be held on the date hereof or at such other time as the Company and the Investors shall agree.

 

(b) Additional
Closings. Each of the Investors acknowledges and agrees that the Company may issue and sell additional Notes (together
with related Warrants), such that the aggregate principal amount of Notes issued pursuant to this Agreement will not exceed $5,000,000.
The issuance and sale of the additional Notes and Warrants will be on the same terms as the sale of Notes and Warrants at the initial
closing; provided, that all subsequent sales are consummated prior to 90 days after the initial closing. At each additional closing,
each Investor purchasing Notes (together with related Warrants) at that closing will become a party to this Agreement upon execution
of a Notice of Adoption of this Agreement in the form of Exhibit D by such purchaser who will thereupon become bound by
the conditions of and entitled to the benefits of this Agreement as an “Investor” and Schedule I shall be updated
accordingly.

 

(c) Delivery.
At each closing under this Agreement, (i) each Investor purchasing a Note under this Agreement will deliver to the Company a check
or wire transfer of funds in the amount of the Investor’s Loan Amount and (ii) the Company will issue and deliver to the
Investor (A) a Note in favor of the Investor in the principal amount of the Investor’s Loan Amount, (B) a corresponding Warrant,
and (C) a Security Agreement executed by the Company in favor of the Investors in the form of Exhibit C attached hereto
(the “Security Agreement” and, together with the Notes and the Warrants, collectively the “Transaction
Documents”).

 

     

     

    

 

3. Representations,
Warranties, and Covenants of the Company. To induce the Investors to enter into this Agreement and to purchase the Notes
and Warrants, the Company hereby represents and warrants to the Investors as follows.

 

(a) Organization,
Good Standing, Corporate Power and Qualification. The Company is a corporation duly organized, validly existing and
in good standing under the laws of the State of Delaware and has all requisite corporate power and authority to carry on its business
as presently conducted and as proposed to be conducted. The Company is duly qualified to transact business and is in good standing
in each jurisdiction in which the failure to so qualify would have a Material Adverse Effect. “Material Adverse Effect”
means a material adverse effect on the business, assets (including intangible assets), liabilities, financial condition, property,
prospects or results of operations of the Company.

 

(b) Authorization.
All corporate action required to be taken by the Company’s board of directors and stockholders in order to authorize the
Company to enter into this Agreement and the other Transaction Documents, and to perform its obligations under this Agreement and
the other Transaction Documents, including the issuance and delivery of the Notes and Warrants and the reservation of the equity
securities issuable upon conversion of the Notes and exercise of the Warrants has been taken or will be taken prior to the issuance
of those equity securities. All action on the part of the officers of the Company necessary for the execution and delivery of this
Agreement and the other Transaction Documents, the performance of all obligations of the Company under this Agreement and the other
Transaction Documents to be performed as of the closing, and the issuance and delivery of the Notes and Warrants has been taken
or will be taken prior to the issuance of these securities. This Agreement, the Notes, the Warrants and the other Transaction Documents,
when executed and delivered by the Company, shall constitute valid and legally binding obligations of the Company, enforceable
against the Company in accordance with their respective terms except (i) as limited by applicable bankruptcy, insolvency,
reorganization, moratorium, fraudulent conveyance, or other laws of general application relating to or affecting the enforcement
of creditors’ rights generally and (ii) as limited by laws relating to the availability of specific performance, injunctive
relief, or other equitable remedies.

 

(c) Valid
Issuance of Securities. The Notes and Warrants, when issued, sold and delivered in accordance with the terms and for
the consideration set forth in this Agreement, will be validly issued, fully paid and nonassessable and free of restrictions on
transfer other than restrictions on transfer under this Agreement or the applicable securities, applicable state and federal securities
laws and liens or encumbrances created by or imposed by an Investor. Assuming the accuracy of the representations of the Investors
in this Agreement and subject to the filings described in Section 3(d), the
Notes, the shares issuable upon conversion of the Notes (the “Note Shares”), the Warrants and the Warrant Shares
(collectively, the “Securities”) will be issued in compliance with all applicable federal and state securities
laws. The capital stock of the Company issuable upon conversion of the Notes and exercise of the Warrants, when issued in compliance
with the provisions of this Agreement, the Notes or the Warrants and the Company’s certificate of incorporation, will be
validly issued, fully paid and nonassessable and free of restrictions on transfer other than restrictions on transfer under this
Agreement or the applicable securities, applicable federal and state securities laws and liens or encumbrances created by or imposed
by an Investor. Other than the Company SEC Documents, the Company has not distributed and will not distribute prior to the Closing
date any offering material in connection with the offering and sale of the Securities. The Company has not taken any action to
sell, offer for sale or solicit offers to buy any securities of the Company which would bring the offer, issuance or sale of the
Securities within the provisions of Section 5 of the Securities Act of 1933 (the “Securities Act”), unless such
offer, issuance or sale was or shall be within the exemptions of Section 4 of the Securities Act.

 

(d) Government
Consents and Filings. Assuming the accuracy of the representations made by the Investors in this Agreement, no consent,
approval, order or authorization of, or registration, qualification, designation, declaration or filing with, any federal, state
or local governmental authority is required on the part of the Company in connection with the consummation of the transactions
contemplated by this Agreement and the other Transaction Documents, except for filings pursuant to Regulation D of the Securities
Act of 1933, other applicable securities laws, and applicable state securities laws, which have been made or will be made in a
timely manner.

 

    
	Purchase Agreement	Page 2

     

    

 

(e) Compliance
with Other Instruments and Laws. The Company is not in violation or default, the violation of which would have a Material
Adverse Effect, (i) of any provisions of its certificate of incorporation or bylaws (or any similar organization documents), (ii)
of any instrument, judgment, order, writ or decree, (iii) except as disclosed in the Company’s Annual Report on Form 10-K
for the year ended December 31, 2017, under any note, indenture or mortgage or (iv) except as disclosed in the Company’s
Annual Report on Form 10-K for the year ended December 31, 2017, under any lease, agreement, contract or purchase order to which
it is a party or by which it is bound, or, to its knowledge, of any provision of federal or state statute, rule or regulation applicable
to the Company. The execution, delivery and performance of this Agreements and the other Transaction Documents and the consummation
of the transactions contemplated by this Agreement will not result in any such violation or be in conflict with or constitute,
with or without the passage of time and giving of notice, either (i) a default under any such provision, instrument, judgment,
order, writ, decree, contract or agreement or (ii) an event which results in the creation of any lien, charge or encumbrance upon
any assets of the Company or the suspension, revocation, forfeiture, or nonrenewal of any material permit or license applicable
to the Company.

 

(f) No
Finder’s Fees. Other than certain fees to be paid to Northland Securities, Inc. or one or more of its affiliates,
the Company represents that it neither is nor will be obligated for any finder’s fee or commission in connection with this
transaction. The Company agrees to indemnify and hold harmless each Investor from any liability for any commission or compensation
in the nature of a finder’s or broker’s fee arising out of this transaction (and the costs and expenses of defending
against such liability or asserted liability) for which the Company or any of its officers, employees or representatives is responsible.

 

(g) Bad
Actor Disqualification.

 

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

 

(ii) Other
Covered Persons. Other than as set forth in Section 3(f), the Company is not aware of any person (other than any Issuer
Covered Person) that has been or will be paid (directly or indirectly) remuneration for solicitation of purchasers in connection
with the sale of any Regulation D Securities.

 

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

 

(h) Certificate
of Incorporation; Bylaws. The Company has made available to the Investors true, correct and complete copies of the certificate
of incorporation and bylaws of the Company, as in effect on the date hereof.

 

(i) SEC
Filings. The consolidated financial statements contained in each report, registration statement and definitive proxy
statement filed by the Company with the Securities and Exchange Commission on or after November 29, 2016 (the “SEC,”
and the documents, the “Company SEC Documents”): (i) complied as to form in all material respects with the published
rules and regulations of the SEC applicable thereto and were timely filed; (ii) the information contained therein as of the respective
dates thereof did not 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; (iii) were
prepared in accordance with generally accepted accounting principles applied on a consistent basis throughout the periods covered,
except as may be indicated in the notes to such financial statements and (in the case of unaudited statements) as permitted by
Form 10-Q of the SEC, and except that unaudited financial statements may not contain footnotes and are subject to year-end audit
adjustments; and (iv) fairly present the consolidated financial position of the Company and its subsidiaries as of the respective
dates thereof and the consolidated results of operations cash flows and the changes in shareholders’ equity of the Company
and its subsidiaries for the periods covered thereby. Except as set forth in the financial statements included in the Company SEC
Documents, neither the Company nor its subsidiaries has any liabilities, contingent or otherwise, other than liabilities incurred
in the ordinary course of business subsequent to March 31, 2018, and liabilities of the type not required under generally accepted
accounting principles to be reflected in such financial statements. Except for liabilities incurred in connection with that certain
Equity Purchase Agreement dated June 1, 2018 between the Company and Billy (Trey) Peck Jr., such liabilities incurred subsequent
to March 31, 2018, are not, in the aggregate, material to the financial condition or operating results of the Company and its subsidiaries,
taken as a whole.

 

    
	Purchase Agreement	Page 3

     

    

 

(j) Capitalization.
The authorized capital stock of the Company consists of (i) 100,000,000 shares of common stock, of which (A) 2,571,068 shares were
issued and outstanding as of the date of this Agreement, and (B) 15,987,287 shares were reserved for issuance upon the exercise
or conversion, as the case may be, of outstanding options, warrants or other convertible securities as of the date of this Agreement;
and (ii) 10,000,000 shares of preferred stock, of which 100,000 shares designated as Series A Preferred Stock were issued and outstanding
as of the date of this Agreement. All issued and outstanding shares of common stock have been duly authorized and validly issued,
are fully paid and nonassessable, have been issued and sold in compliance with the registration requirements of federal and state
securities laws or the applicable statutes of limitation have expired, and were not issued in violation of any preemptive rights
or similar rights to subscribe for or purchase securities. Except as set forth herein or the Company SEC Documents, there are no
(i) outstanding rights (including, without limitation, preemptive rights), warrants or options to acquire, or instruments convertible
into or exchangeable for, any unissued shares of capital stock or other equity interest in the Company, or any contract, commitment,
agreement, understanding or arrangement of any kind to which the Company or any subsidiary is a party and relating to the issuance
or sale of any capital stock or convertible or exchangeable security of the Company or any subsidiary; or (ii) obligations of the
Company to purchase redeem or otherwise acquire any of its outstanding capital stock or any interest therein or to pay any dividend
or make any other distribution in respect thereof. Except as disclosed in the Company SEC Documents, there are no anti-dilution
or price adjustment provisions, co-sale rights, registration rights, rights of first refusal or other similar rights contained
in the terms governing any outstanding security of the Company that will be triggered by the issuance of the Securities.

 

(k) Subsidiaries.
Except as set forth in the Company SEC Documents, the Company does not presently own or control, directly or indirectly, and has
no stock or other interest as owner or principal in, any other corporation or partnership, joint venture, association or other
business venture or entity (each a “subsidiary”). Each subsidiary is duly incorporated or organized, validly
existing and in good standing under the laws of its jurisdiction of incorporation or organization and has all requisite power and
authority to carry on its business as now conducted. Each subsidiary is duly qualified to transact business and is in good standing
in each jurisdiction in which the failure to so qualify would have a Material Adverse Effect on its business or properties. All
of the outstanding capital stock or other securities of each subsidiary is owned by the Company, directly or indirectly, free and
clear of any liens claims, or encumbrances except for Permitted Liens (as defined in the Security Agreement).

 

(l) Valid
Issuance of Securities. The Securities are duly authorized and, when issued, sold and delivered in accordance with the
terms hereof or the Notes or Warrants, as the case may be, will be duly and validly authorized and issued, fully paid and nonassessable,
free from all taxes, liens, claims, encumbrances and charges with respect to the issue thereof; provided, however, that the Securities
may be subject to restrictions on transfer under state and/or federal securities laws or as otherwise set forth herein. The issuance,
sale and delivery of the Securities in accordance with the terms hereof or the Note or Warrant, as the case may be, will not be
subject to preemptive rights of stockholders of the Company. The Warrant Shares and Note Shares have been duly reserved for issuance
upon exercise of the Warrants and Notes.

 

(m) Litigation.
Except as set forth in the Company SEC Documents, there is no action, suit, proceeding nor investigation pending or, to the Company’s
knowledge, currently threatened against the Company or any of its subsidiaries that (a) if adversely determined would reasonably
be expected to adversely effect the business, condition, prospects, capitalization, assets, liabilities, operations or financial
performance of the Company or its subsidiaries or (b) would be required to be disclosed in the Company’s Annual Report on
Form 10-K under the requirements of Item 103 of Regulation S-K. The foregoing includes, without limitation, any action, suit, proceeding
or investigation, pending or threatened, that questions the validity of this Agreement or the right of the Company to enter into
such Agreement and perform its obligations hereunder. Neither the Company nor any subsidiary is subject to any injunction, judgment,
decree or order of any court, regulatory body, arbitral panel, administrative agency or other government body.

 

    
	Purchase Agreement	Page 4

     

    

 

(n) No
Brokers. Except for any fees payable to Northland Securities, Inc., no broker, finder or investment banker is entitled
to any brokerage, finder’s or other fee or commission in connection with the transactions contemplated by this Agreement
based on arrangements made by the Company.

 

(o) Compliance.
Except as would not be reasonably likely to have a Material Adverse Effect, the Company is not in violation of its certificate
of incorporation or bylaws. Neither the Company nor the subsidiaries have been advised or have reason to believe, that it is not
conducting its business in compliance with all applicable laws, rules and regulations of the jurisdictions in which it is conducting
business, including, without limitation, all applicable local, state and federal environmental laws and regulations; except where
failure to be so in compliance would not have a Material Adverse Effect. Each of the Company and the subsidiaries has all necessary
franchises, licenses, certificates and other authorizations from any foreign, federal, state or local government or governmental
agency, department or body that are currently necessary for the operation of the business of the Company and they subsidiaries
as currently conducted, except where the failure to currently possess such franchises, licenses, certificates and other authorizations
would not reasonably be expected to have a Material Adverse Effect.

 

(p) No
Material Changes. Except as disclosed in the Company SEC Documents, since March 31, 2018, there has been no material
adverse change in the assets, liabilities, business, properties, operations, financial condition or results of operations of the
Company and its subsidiaries, taken as a whole. Since March 31, 2018, the Company has not declared or paid any dividend or distribution
or its capital stock.

 

(q) Contracts.
Except for matters which are not reasonably likely to have a Material Adverse Effect and those contracts that are substantially
or fully performed or expired by their terms, the contracts listed as exhibits to or described in the Company SEC Documents that
are material to the Company or any of its subsidiaries and all amendments thereto, are in full force and effect on the date hereof,
and neither the Company nor, to the Company’ knowledge, any other party to such contracts is in breach of or default under
any of such contracts. The Company has no contracts or agreements that would constitute a material contract as such term is defined
in Item 601(b) of Regulation S-K, except for such contracts or agreements that are filed as exhibits to or described in the Company
SEC Documents.

 

(r) Intellectual
Property.

 

i. The
Company has ownership or license or legal right to use all patent, copyright, trade secret, know-how trademark, trade name customer
lists, designs, manufacturing or other processes, computer software, systems, data compilation, research results or other proprietary
rights used in the business of the Company (collectively “Intellectual Property”). All of such patents, registered
trademarks and registered copyrights have been duly registered in, filed in or issued by the United States Patent and Trademark
Office, the United States Register of Copyrights or the corresponding offices of other jurisdictions and have been maintained and
renewed in accordance with all applicable provisions of law and administrative regulations in the United States and all such jurisdictions.

 

ii. The
Company believes it has taken all reasonable steps required in accordance with sound business practice and business judgment to
establish and preserve its and its subsidiaries ownership of all material Intellectual Property with respect to their products
and technology.

 

iii. To
the knowledge of the Company, the present business, activities and products of the Company and its subsidiaries do not infringe
any intellectual property of any other person, except where such infringement would not have a Material Adverse Effect. No proceeding
charging the Company with infringement of any adversely held Intellectual Property has been filed.

 

iv. No
proceedings have been instituted or pending or, to the knowledge of the Company, threatened, which challenge the rights of the
Company to the use of the Intellectual Property. The Company has the right to use, free and clear of material claims or rights
of other persons, all of its customer lists, designs, computer software, systems, data compilations, and other information that
are required for its products or its business as presently conducted. Neither the Company nor any subsidiary is making unauthorized
use of any confidential information or trade secrets of any person. The activities of any of the employees on behalf of the Company
or of any subsidiary do not violate any agreements or arrangements between such employees and third parties are related to confidential
information or trade secrets of third parties or that restrict any such employee’s engagement in business activity of any
nature.

 

    
	Purchase Agreement	Page 5

     

    

 

v. All
licenses or other agreements under which (i) the Company or any subsidiary employs rights in Intellectual Property, or (ii) the
Company or any subsidiary has granted rights to others in Intellectual Property owned or licensed by the Company or any subsidiary
are in full force and effect, and there is no default (and there exists no condition which, with the passage of time or otherwise,
would constitute a default by the Company or such subsidiary) by the Company or any subsidiary with respect thereto.

 

(s) Exchange
Compliance. The Company’s common stock is registered pursuant to Section 12(g) of the Securities Exchange Act
of 1934 (the “Exchange Act”) and trades on the OTC Pink Market (the “Principal Market”),
and the Company has taken no action designed to, or likely to have the effect of, terminating the registration of the common stock
under the Exchange Act or delisting the common stock (including the Note Shares and Warrant Shares) from the Principal Market.
The Company is in compliance with all of the presently applicable requirements for continued listing of the common stock on the
Principal Market. The issuance of the Securities does not require shareholder approval including, without limitation, pursuant
to the rules and regulations of the Principal Market.

 

(t) [Intentionally
Omitted].

 

(u) Accountants.
EKS&H LLP, who expressed its opinion with respect to the consolidated financial statements contained in the Company’s
Annual Report on Form 10-K for the year ended December 31, 2017, to be incorporated by reference into the Registration Statement
(as hereinafter defined) and the prospectus which forms a part thereof (the “Prospectus”), have advised the
Company that it is, and to the knowledge of the Company it is, an independent accountant as required by the Securities Act and
the rules and regulations promulgated thereunder. The Company covenants to file its Form 10-K containing audited consolidated financial
statements for the year ended December 31, 2018 within the time period required by applicable securities laws and further represents
and warrants that it has no reason to believe that the auditors will not be able to express an unqualified opinion with respect
to such financial statements, assuming the Closing occurs as contemplated herein.

 

(v) Taxes.
The Company has filed all necessary federal, state, local and foreign income and franchise tax returns and has paid or accrued
all taxes shown as due thereon, and the Company has no knowledge of a tax deficiency which has been or might be asserted or threatened
against it by any taxing jurisdiction.

 

(w) Insurance.
The Company maintains and will continue to maintain insurance of the types and in the amounts that the Company reasonably believes
is adequate for its business, including, but not limited to, insurance covering all real and personal property owned or leased
by the Company against theft, damage, destruction, acts of vandalism and all other risks customarily insured against by similarly
situated companies, all of which insurance is in full force and effect.

 

(x) Transfer
Taxes. On the Closing date, all stock transfer or other taxes (other than income taxes) that are required to be paid
in connection with the sale and transfer of the Securities hereunder will be, or will have been, fully paid or provided for by
the Company and the Company will have complied with all laws imposing such taxes.

 

(y)  Investment
Company. The Company (including its subsidiaries) is not an “investment company” or an “affiliated
person” of, or “promoter” or “principal underwriter” for an investment company, within the meaning
of the Investment Company Act of 1940 and will not be deemed an “investment company” as a result of the transactions
contemplated by this Agreement.

 

(z) Related
Party Transactions. To the knowledge of the Company, no transaction has occurred between or among the Company or any
of its affiliates (including, without limitation, any of its subsidiaries), officers or directors or any affiliate or affiliates
of any such affiliate officer or director that with the passage of time will be required to be disclosed pursuant to Section 13,
14 or 15(d) of the Exchange Act other than those transactions that have already been so disclosed.

 

(aa) Books
and Records. The books, records and accounts of the Company and its subsidiaries accurately and fairly reflect, in reasonable
detail, the transactions in, and dispositions of, the assets of, and the operations of, the Company and its subsidiaries.

 

    
	Purchase Agreement	Page 6

     

    

 

(bb) Disclosure
Controls and Internal Controls.

 

i. The Company
has established and maintains disclosure controls and procedures (as such term is defined in Rule 13a-15 under the Exchange Act),
which (i) are designed to ensure that material information relating to the Company is made known to their Company’s principal
executive officer and its principal financial officer by others within those entities particularly during the periods in which
the periodic reports required under the Exchange Act are being prepared; and (ii) provide for the periodic evaluation of the effectiveness
of such disclosure controls and procedures as of the end of the period covered by the Company’s most recent annual or quarterly
report filed with the SEC.

 

ii. The
Company maintains a system of internal accounting controls sufficient to provide reasonable assurance 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 generally accepted accounting principles 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. Except as described in the
Company SEC Documents, the Company maintains disclosure controls and procedures (as such term is defined in Rule 13a-14 under the
Exchange Act) that are effective in ensuring that information required to be disclosed by the Company in the reports that it files
or submits under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the rules
and forms of the SEC, including, without limitation, controls and procedures designed in 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. Except as described in the Company SEC Documents, the
Company is not aware of (i) any significant deficiency in the design or operation of internal controls which could adversely affect
the Company’s or any of its subsidiary’s ability to record, process, summarize and report financial data or any material
weaknesses in internal controls; or (ii) any fraud, whether or not material, that involves management or other employees who have
a significant role in the Company’s or any of its subsidiary’s internal controls.

 

iii. Since
the date of the most recent evaluation of such disclosure controls and procedures, there have been no changes that have materially
affected, or are reasonably likely to materially affect, the Company’s or any of its subsidiary’s internal control
over financial reporting, including any corrective actions with regard to significant deficiencies and material weaknesses.

 

iv. Except
as described in the Company SEC Documents, there are no material off-balance sheet arrangements (as defined in Item 303 of Regulation
S-K), or any other relationships with unconsolidated entities (in which the Company or its control persons have an equity interest)
that may have a material current or future effect on the Company’s or any of its/subsidiary’s financial condition,
revenues or expenses, changes in financial condition, results of operations, liquidity, capital expenditures or capital resources.

 

v. To
the knowledge of the Company, neither the board of directors nor the audit committee has been informed, nor is any director of
the Company aware, of (1) except as described in the Company SEC Documents, any significant deficiencies in the design or operation
of the Company’s internal controls which could adversely affect the Company’s or any subsidiary’s ability to
record, process, summarize and report financial data or any material weakness in the Company’s or any subsidiary’s
internal controls; or (2) any fraud, whether or not material, that involves management or other employees of the Company or any
of its subsidiaries who have a significant role in the Company’s or any subsidiary’s internal controls.

 

(cc) No
General Solicitation. Neither the Company, nor any of its affiliates, nor any person acting on its or their behalf,
has engaged in any form of general solicitation or general advertising (within the meaning of Regulation D promulgated under the
Securities Act) in connection with the offer or sale of the Securities.

 

(dd) Application
of Takeover Protections; Rights Agreement. The Company and its board of directors have taken all necessary action, if
any, in order to render inapplicable any control share acquisition, business combination, poison pill (including any distribution
under a rights agreement) or other similar anti-takeover provision under the certificate of incorporation or the laws of the jurisdiction
of its formation which is or could become applicable to any Purchaser as a result of the transactions contemplated by this Agreement,
including, without limitation, the Company’s issuance of the Securities and any Purchaser’s ownership of the Securities.
The Company has not adopted a shareholder rights plan or similar arrangement relating to accumulations of beneficial ownership
of common stock or a change in control of the Company.

 

    
	Purchase Agreement	Page 7

     

    

 

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

 

(ff) Sarbanes-Oxley
Act. The Company is in compliance with any and all applicable requirements of the Sarbanes-Oxley Act of 2002 that are
effective as of the date hereof, and any and all applicable rules and regulations promulgated by the SEC thereunder that are effective
as of the date hereof, except where such noncompliance would not have, individually or in the aggregate, a Material Adverse Effect.

 

(gg) Employee
Relations. The Company is not a party to any collective bargaining agreement or employs any member of a union. The Company
believes that its relations with its employees are good. No executive officer of the Company (as defined in Rule 501(f) of the
Securities Act) has notified the Company that such officer intends to leave the Company or otherwise terminate such officer's employment
with the Company. No executive officer of the Company, to the knowledge of the Company, is, or is now expected to be, in violation
of any material term of any employment contract, confidentiality, disclosure or proprietary information agreement, non-competition
agreement, or any other contract or agreement or any restrictive covenant, and the continued employment of each such executive
officer does not subject the Company to any liability with respect to any of the foregoing matters.

 

The Company is in compliance
with all federal, state, local and foreign laws and regulations respecting labor, employment and employment practices and benefits,
terms and conditions of employment and wages and hours, except where failure to be in compliance would not, either individually
or in the aggregate, reasonably be expected to result in a Material Adverse Effect.

 

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

 

(ii) Indebtedness.
Schedule II attached hereto sets forth (a) all indebtedness of the Company and its subsidiaries for borrowed money or for
the deferred purchase price of assets or services or which is evidenced by a note, debenture or similar instrument, to the extent
it would appear as a liability upon a balance sheet of the Company prepared in accordance with GAAP; (b) all direct or contingent
obligations of the Company and its subsidiaries arising under letters of credit (including standby and commercial), bankers’
acceptances, bank guaranties, surety bonds and similar instruments; (c) net obligations of the Company and its subsidiaries under
any swap contract; (d) indebtedness described in clauses (a) through (c) of this definition (excluding prepaid interest thereon)
secured by a lien on property owned or being purchased by the Company or any of its subsidiaries (including indebtedness arising
under conditional sales or other title retention agreements), whether or not such indebtedness shall have been assumed by the Company
or a subsidiary or is limited in recourse; and (e) all guarantees of the Company and its subsidiaries in respect of any of the
foregoing.

 

(jj) No
Manipulation; Disclosure of Information. The Company has not taken and will not take any action designed to or that
might reasonably be expected to cause or result in an unlawful manipulation of the price of the common stock to facilitate the
sale or resale of the Securities. The Company confirms that, to its knowledge, with the exception of the proposed sale of Securities
as contemplated herein (as to which the Company makes not representation), neither it nor any other person acting on its behalf
has provided any of the Purchasers or their agents or counsel with any information that constitutes or might constitute material,
non-public information. The Company understands and confirms that the Purchasers shall be relying on the foregoing representations
in effecting transactions in securities of the Company. All disclosures provided to the Purchasers regarding the Company, its business
and the transactions contemplated hereby, including the exhibits to this Agreement, furnished by the Company are true and correct
and do not contain any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements
made therein, in light of the circumstances under which they were made, not misleading.

 

    
	Purchase Agreement	Page 8

     

    

 

(kk) Forward-Looking
Information. No forward-looking statement (within the meaning of Section 27A of the Securities Act and Section 21E of
the Exchange Act) made by the Company or any of its officers or directors contained in the Company SEC Documents, or made available
to the public generally since March 31, 2018, has been made or reaffirmed without a reasonable basis or has been disclosed other
than in good faith.

 

(ll) No
Additional Agreements. Other than with respect to closing mechanics, the Company has no other agreements or understandings
(including, without limitation, side letters) with any Purchaser or other person to purchase Securities on terms more favorable
to such person than as set forth herein.

 

4. Representations
of the Investors. To induce the Company to enter into this Agreement and to sell the Notes and Warrants, each
Investor, severally and not jointly, hereby represents and warrants to the Company as follows:

 

(a) Authorization.
The Investor has full power and authority to enter into this Agreement. This Agreement, when executed and delivered by the Investor,
will constitute a valid and legally binding obligation of the Investor, enforceable in accordance with their terms, except as limited
by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance, and any other laws of general application
affecting enforcement of creditors’ rights generally, and as limited by laws relating to the availability of specific performance,
injunctive relief, or other equitable remedies.

 

(b) Purchase
for Own Account. This Agreement is made with the Investor in reliance upon the Investor’s representation to the
Company, which by the Investor’s execution of this Agreement, the Investor hereby confirms, that the Securities to be acquired
by the Investor will be acquired for investment for the Investor’s own account, not as a nominee or agent, and not with a
view to the resale or distribution of any part thereof, and that the Investor has no present intention of selling, granting any
participation in, or otherwise distributing the Securities. By executing this Agreement, the Investor further represents that the
Investor does not presently have any contract, undertaking, agreement or arrangement with any person to sell, transfer or grant
participations to such person or to any third person, with respect to any of the Securities. The Investor has not been formed for
the specific purpose of acquiring the Securities.

 

(c) Disclosure
of Information; Sophistication. The Investor has had an opportunity to discuss the Company’s business, management,
financial affairs and the terms and conditions of the offering of the Securities with the Company’s management and has had
an opportunity to review the Company’s facilities. The Investor has received all information it has requested from the Company
that it considers necessary or appropriate for deciding whether to acquire the Securities. The Investor represents and warrants
that it has the knowledge and experience in financial and business matters such that it is capable of evaluating the merits and
risks of this investment. The Investor acknowledges that investment in the Securities involves a high degree of risk and represents
that it is able, without materially impairing its financial condition, to hold the Securities for an indefinite period of time
and to suffer a complete loss of its investment. The foregoing, however, does not limit or modify the representations and warranties
of the Company in Section 3 of this Agreement or the right of the Investors to rely
thereon.

 

(d) Restricted
Securities. The Investor understands that the Securities have not been, and will not be, registered under the Securities
Act of 1933, by reason of a specific exemption from the registration provisions of the Securities Act of 1933 which depends upon,
among other things, the bona fide nature of the investment intent and the accuracy of the Investor’s representations as expressed
herein. The Investor understands that the Securities are “restricted securities” under applicable U.S. federal and
state securities laws and that, pursuant to these laws, the Investor must hold the Securities indefinitely unless they are registered
with the Securities and Exchange Commission and qualified by state authorities, or an exemption from such registration and qualification
requirements is available. The Investor acknowledges that the Company has no obligation to register or qualify the Securities for
resale. The Investor further acknowledges that if an exemption from registration or qualification is available, it may be conditioned
on various requirements including, but not limited to, the time and manner of sale, the holding period for the Securities, and
on requirements relating to the Company which are outside of the Investor’s control, and which the Company is under no obligation
and may not be able to satisfy.

 

    
	Purchase Agreement	Page 9

     

    

 

(e) Legends.
The Investor understands that the Securities and any securities issued in respect of or exchange for the Securities, may bear one
or all of the following legends (in substantially the form set forth below):

 

(i) “THE
SECURITIES REPRESENTED HEREBY and the SECURITIES ISSUABLE UPON CONVERSION HEREOF
HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AND HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO, OR IN
CONNECTION WITH, THE SALE OR DISTRIBUTION THEREOF. NO SUCH TRANSFER MAY BE EFFECTED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT
RELATED THERETO OR AN OPINION OF COUNSEL IN A FORM SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE
SECURITIES ACT OF 1933.”

 

(ii) Any
legend required by the securities laws of any state to the extent such laws are applicable to the Securities represented by the
certificate so legended.

 

(f) No
Public Market. The Investor understands that no public market now exists for the Securities, and that the Company has
made no assurances that a public market will ever exist for the Securities.

 

(g) Accredited
Investor. The Investor is an accredited investor as defined in Rule 501(a) of Regulation D promulgated under the Securities
Act of 1933. The Investor satisfies the criteria indicated on the signature page hereto.

 

(h) Foreign
Investors. If the Investor is not a United States person (as defined by Section 7701(a)(30) of the Internal Revenue
Code of 1986), the Investor hereby represents that it has satisfied itself as to the full observance of the laws of its jurisdiction
in connection with any invitation to subscribe for the Securities or any use of this Agreement, including (i) the legal requirements
within its jurisdiction for the purchase of the Securities, (ii) any foreign exchange restrictions applicable to such purchase,
(iii) any governmental or other consents that may need to be obtained, and (iv) the income tax and other tax consequences,
if any, that may be relevant to the purchase, holding, redemption, sale, or transfer of the Securities. The Investor’s subscription
and payment for and continued beneficial ownership of the Securities will not violate any applicable securities or other laws of
the Investor’s jurisdiction.

 

(i) No
General Solicitation. Neither the Investor, nor any of its officers, directors, employees, agents, stockholders or partners
has either directly or indirectly, including through a broker or finder (i) engaged in any general solicitation, or (ii) published
any advertisement in connection with the offer and sale of the Securities.

 

(j) Exculpation
Among Investors. The Investor acknowledges that it is not relying upon any person, other than the Company and its officers
and directors, in making its investment or decision to invest in the Company. The Investor agrees that neither any Investor nor
the respective controlling persons, officers, directors, partners, agents, or employees of any Investor shall be liable to any
other Investor for any action heretofore taken or omitted to be taken by any of them in connection with the purchase of the Securities.

 

(k) Residence,
Investment Decision. The Investor’s residence or principal place of business, and the location where the Investor
made the decision to purchase the Notes and Warrants, is in the state set forth in the Investor’s address on the signature
page hereto.

 

(l) No
Finder’s Fees. Each Investor represents that it neither is nor will be obligated for any finder’s fee or
commission in connection with this transaction. Each Investor agrees to indemnify and to hold harmless the Company from any liability
for any commission or compensation in the nature of a finder’s or broker’s fee arising out of this transaction (and the
costs and expenses of defending against such liability or asserted liability) for which each Investor or any of its officers, employees,
or representatives is responsible.

 

(m) Further
Assurances. Each Investor agrees and covenants that at any time and from time to time it will promptly execute and deliver
to the Company such further instruments and documents and take such further action as the Company may reasonably require in order
to carry out the full intent and purpose of this Agreement and to comply with federal or state securities laws or other regulatory
approvals.

 

    
	Purchase Agreement	Page 10

     

    

 

5. Further
Agreements.

 

(a) Use
of Proceeds. In accordance with the directions of the Company’s board of directors, the Company will use the proceeds
from the sale of the Notes and Warrants for product development and other general corporate purposes. Except for approximately
$1 million of proceeds that the Company shall use to repay principal, interest, fees, and expenses related to the senior bridge
notes of the Company held by Red Ocean Consulting, LLC and the Richard H. Enrico Revocable Trust Dated June 9, 1998, the proceeds
from the sale of the Notes and Warrants shall not be used for the redemption or repurchase of debt or securities (other than the
repurchase of securities from employees and directors pursuant to the Company’s omnibus stock plan), dividends or payments
to officers other than regular salaries, relocation expenses and reimbursements for costs incurred on behalf of the Company in
the ordinary course of business.

 

(b) Reporting
Status. With a view to making available to the Investors the benefits of certain rules and regulations of the SEC which
may permit the sale of the Note Shares and Warrant Shares to the public without registration, the Company agrees to use its reasonable
efforts to file with the SEC, in a timely manner all reports and other documents required of the Company under the Exchange Act.
The Company will otherwise take such further action as an Investor may reasonably request, all to the extent required from time
to time to enable such Investor to sell the Note Shares and Warrant Shares without registration under the Securities Act or any
successor rule or regulation adopted by the SEC.

 

(c) Adjustments
in Share Numbers. In the event of any stock split, subdivision, dividend or distribution payable in shares of common
stock (or other securities or rights convertible into, or entitling the holder thereof to receive directly or indirectly shares
of common stock), combination or other similar recapitalization or event occurring after the date hereof, each reference in this
Agreement or the Note or the Warrants to a number of shares or price per share shall be amended appropriately to account for such
event.

 

6. Registration
Rights.

 

(a) Registration
Procedures and Expenses.

 

i. The
Company shall prepare and file with the SEC, as promptly as reasonably practicable following the Closing but in no event later
than 45 days following Closing, a registration statement on Form S-1 (or any successor to Form S-1), covering the resale of the
Registrable Securities (the “Registration Statement”) and as soon as reasonably practicable thereafter but in
no event later than 180 days following the filing of the Registration Statement (210 days in the event of a full review of the
Registration Statement by the SEC), to effect such registration and any related qualification or compliance with respect to all
Registrable Securities held by the Investors. For purposes of this Agreement, the term “Registrable Securities”
shall mean (i) the Note Shares; (ii) the Warrant Shares; and (iii) any common stock of the Company issued as (or issuable upon
the conversion or exercise of any warrant, right or other security which is issued as) a dividend or other distribution with respect
to, or in exchange for or in replacement of, any Note Shares or Warrant Shares. If the Registration Statement has not been declared
effective by the SEC on or before the date that is 180 days after the filing date of the Registration Statement, or 210 days after
the filing of the Registration Statement in the event of a full review of the Registration Statement by the SEC (the “Required
Effective Date”), the Company shall, on the business day immediately following the Required Effective Date and each 30th
day thereafter, make a payment to the Purchasers as partial liquidated damages for such delay (together, the “Late Registration
Payments”) equal to 1% of the Purchase Price paid for the Securities then owned by the Purchasers until the Registration
Statement is declared effective by the SEC. Late Registration Payments will be prorated on a daily basis during each 30 day period
and will be paid to the Purchasers by wire transfer or check within five business days after the earlier of (i) the end of
each 30 day period following the Required Effective Date or (ii) the effective date of the Registration Statement. If the
Company fails to pay any 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 12% per annum (or such lesser maximum amount that is permitted to be paid by applicable
law) to the Purchasers, accruing daily from the date such liquidated damages are due until such amounts, plus all such interest
thereon, are paid in full. “Business day” means any day except Saturday, Sunday and any day that is a federal
legal holiday in the United States.

 

    
	Purchase Agreement	Page 11

     

    

 

ii.
The Company shall use its best efforts to:

 

A. prepare
and file with the SEC such amendments and supplements to the Registration Statement and the Prospectus used in connection therewith
as may be necessary or advisable to keep the Registration Statement current and effective for the Registrable Securities (collectively,
“Common Shares”) held by a Purchaser for a period ending on the earlier of (i) the second anniversary of the
Closing date, (ii) the date on which all Common Shares may be sold pursuant to Rule 144 under the Securities Act or any successor
rule (“Rule 144”) or (iii) such time as all Common Shares have been sold pursuant to a registration statement
or Rule 144. At such time the Company is no longer required to keep the Registration Statement current and effective for the Common
Shares held by a Purchaser (the “Registration Statement Termination Date”), that Purchaser will no longer accrue
any additional liquidated damages payments pursuant to Sections 6(a)(i) or 6(b)(iii); however, the Company shall still be obligated
to make all payments under Sections 6(a)(i) or 6(b)(ii) that were not made prior to the Registration Statement Termination Date
for that Purchaser. The Company shall notify each Purchaser promptly upon the Registration Statement and each post-effective amendment
thereto, being declared effective by the SEC and advise each Purchaser that the form of Prospectus contained in the Registration
Statement or post-effective amendment thereto, as the case may be, at the time of effectiveness meets the requirements of Section
10(a) of the Securities Act or that it intends to file a Prospectus pursuant to Rule 424(b) under the Securities Act that meets
the requirements of Section 10(a) of the Securities Act;

 

B. furnish
to the Purchaser with respect to the Common Shares registered under the Registration Statement such number of copies of the Registration
Statement and the Prospectus (including supplemental prospectuses) filed with the SEC in conformance with the requirements of the
Securities Act and other such documents as the Purchaser may reasonably request, in order to facilitate the public sale or other
disposition of all or any of the Common Shares by the Purchaser;

 

C. make
any necessary blue sky filings;

 

● pay
the expenses incurred by the Company and the Purchasers in complying with Section 6, including, all registration and filing fees,
FINRA fees, exchange listing fees, printing expenses, fees and disbursements of counsel for the Company, blue sky fees and expenses
and the expense of any special audits incident to or required by any such registration (but excluding attorneys’ fees of
any Purchaser and any and all underwriting discounts and selling commissions applicable to the sale of Registrable Securities by
the Purchasers);

 

● advise
the Purchasers, promptly after it shall receive notice or obtain knowledge of the issuance of any stop order by the SEC delaying
or suspending the effectiveness of the Registration Statement or of the initiation of any proceeding for that purpose; and it will
promptly use its commercially reasonable best efforts to prevent the issuance of any stop order or to obtain its withdrawal at
the earliest possible moment if such stop order should be issued; and

 

● with
a view to making available to the Purchaser the benefits of Rule 144 and any other rule or regulation of the SEC that may at any
time permit the Purchaser to sell Common Shares to the public without registration, the Company covenants and agrees to use its
commercially reasonable best efforts to: (i) make and keep public information available, as those terms are understood and defined
in Rule 144, until the earlier of (A) such date as all of the Common Shares qualify to be resold immediately pursuant to Rule 144
or any other rule of similar effect or (B) such date as all of the Common Shares shall have been resold pursuant to Rule 144 (and
may be further resold without restriction); (ii) file with the SEC in a timely manner all reports and other documents required
of the Company under the Securities Act and under the Exchange Act; and (iii) furnish to the Purchaser upon request, as long as
the Purchaser owns any Common Shares, (A) a written statement by the Company as to whether it has complied with the reporting requirements
of the Securities Act and the Exchange Act, (B) a copy of the Company’s most recent Annual Report on Form 10-K or Quarterly
Report on Form 10-Q, and (C) such other information as may be reasonably requested in order to avail the Purchaser of any rule
or regulation of the SEC that permits the selling of any such Common Shares without registration.

 

The Company understands that the Purchasers
disclaim being an underwriter, but acknowledges that a determination by the SEC that a Purchaser is deemed an underwriter shall
not relieve the Company of any obligations it has hereunder.

 

    
	Purchase Agreement	Page 12

     

    

 

(b) Transfer
of Shares After Registration; Suspension.

 

(i) Except
in the event that Section 6(b)(ii) applies, the Company shall: (i) if deemed necessary or advisable by the Company, prepare and
file from time to time with the SEC a post-effective amendment to the Registration Statement or a supplement to the related Prospectus
or a supplement or amendment to any document incorporated therein by reference or file any other required document so that such
Registration Statement will not 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 not misleading, and so that, as thereafter delivered to purchasers of
the Common Shares being sold thereunder, such Prospectus will not 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; (ii) provide the Purchasers copies of any documents filed pursuant to Section 6.2(a)(i);
and (iii) upon request, inform each Purchaser who so requests that the Company has complied with its obligations in Section 6.2(b)(i)
(or that, if the Company has filed a post-effective amendment to the Registration Statement which has not yet been declared effective,
the Company will notify the Purchaser to that effect, will use its commercially reasonable best efforts to secure the effectiveness
of such post-effective amendment as promptly as possible and will promptly notify the Purchaser pursuant to Section 6.2(b)(i) when
the amendment has become effective).

 

(ii) Subject
to Section 6(b)(iii), in the event: (i) of any request by the SEC or any other federal or state governmental authority during the
period of effectiveness of the Registration Statement for amendments or supplements to the Registration Statement or related Prospectus
or for additional information; (ii) of the issuance by the SEC or any other federal or state governmental authority of any stop
order suspending the effectiveness of the Registration Statement or the initiation of any proceedings for that purpose; (iii) 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 Common Shares for sale in any jurisdiction or the initiation of any proceeding for such purpose; or (iv) of any event
or circumstance which necessitates the making of any changes in the Registration Statement or Prospectus, or any document incorporated
or deemed to be incorporated therein by reference, so that, in the case of the Registration Statement, it will not contain any
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 not misleading, and that in the case of the Prospectus, it will not contain any 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 the light of the circumstances
under which they were made, not misleading; then the Company shall promptly deliver a certificate in writing to the Purchasers
(the “Suspension Notice”) to the effect of the foregoing and, upon receipt of such Suspension Notice, the Purchasers
will refrain from selling any Common Shares pursuant to the Registration Statement (a “Suspension”) until the
Purchasers are advised in writing by the Company that the current Prospectus may be used, and have received copies from the Company
of any additional or supplemental filings that are incorporated or deemed incorporated by reference in any such Prospectus. In
the event of any Suspension, the Company will use its reasonable best efforts to cause the use of the Prospectus so suspended to
be resumed as soon as reasonably practicable after delivery of a Suspension Notice to the Purchasers. In addition to and without
limiting any other remedies (including, without limitation, at law or at equity) available to the Company and the Purchaser, the
Company and the Purchasers shall be entitled to specific performance in the event that the other party fails to comply with the
provisions of this Section 6(b)(ii).

 

(iii) Notwithstanding
the foregoing paragraphs of this Section 6(b), the Company shall use its commercially reasonable best efforts to ensure that (i)
a Suspension shall not exceed 30 days individually, (ii) Suspensions covering no more than 45 days, in the aggregate, shall occur
during any twelve month period and (iii) each Suspension shall be separated by a period of at least 30 days from a prior Suspension
(each Suspension that satisfies the foregoing criteria being referred to herein as a “Qualifying Suspension”).
In the event that there occurs a Suspension (or part thereof) that does not constitute a Qualifying Suspension, the Company shall
pay to the Purchaser, on the 30th day following the first day of such Suspension (or the first day of such part), and
on each 30th day thereafter, an amount equal to 1% of the Purchase Price paid for the Securities purchased by the Purchaser
and not previously sold by the Purchaser with such payments to be prorated on a daily basis during each 30 day period and will
be paid to the Purchaser by wire transfer or check within five business days after the end of each 30 day period following.

 

(iv) If
a Suspension is not then in effect, the Purchasers may sell Common Shares under the Registration Statement, provided that they
comply with any applicable prospectus delivery requirements. Upon receipt of a request therefor, the Company will provide an adequate
number of current Prospectuses to a Purchaser and to any other parties reasonably requiring such Prospectuses.

 

(v) The
Company agrees that it shall, immediately prior to the Registration Statement being declared effective, deliver to its transfer
agent an opinion letter of counsel, opining that at any time the Registration Statement is effective, the transfer agent may issue,
in connection with the sale of the Common Shares, certificates representing such Common Shares without restrictive legend, provided
the Common Shares are to be sold pursuant to the Prospectus contained in the Registration Statement. Upon receipt of such opinion,
the Company shall cause the transfer agent to confirm, for the benefit of the Purchasers, that no further opinion of counsel is
required at the time of transfer in order to issue such Common Shares without restrictive legend.

 

    
	Purchase Agreement	Page 13

     

    

 

The Company shall cause its transfer agent
to issue a certificate without any restrictive legend to a purchaser of any Common Shares from the Purchasers, if no Suspension
is in effect at the time of sale, and (a) the sale of such Common Shares is registered under the Registration Statement (including
registration pursuant to Rule 415 under the Securities Act); (b) the holder has provided the Company with an opinion of counsel,
in form, substance and scope customary for opinions of counsel in comparable transactions, to the effect that a public sale or
transfer of such Common Shares may be made without registration under the Securities Act; or (c) such Common Shares are sold in
compliance with Rule 144 under the Securities Act. In addition, the Company shall remove the restrictive legend from any Common
Shares held by the Purchasers following the expiration of the holding period required by Rule 144 under the Securities Act (or
any successor rule).

 

(c)
Indemnification. For the purpose of this Section 6(c):

 

● the
term “Selling Shareholder” shall mean a Purchaser, its executive officers and directors and each person, if
any, who controls that Purchaser within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act; 

 

● the
term “Registration Statement” shall include any final Prospectus, exhibit, supplement or amendment included
in or relating to, and any document incorporated by reference in, the Registration Statement (or deemed to be a part thereof) referred
to in Section 6.1; and 

 

● the
term “untrue statement” shall mean any untrue statement or alleged untrue statement of a material fact, or any
omission or alleged omission to state in the Registration Statement a material fact required to be stated therein or necessary
to make the statements therein, in the light of the circumstances under which they were made, not misleading.

 

i. The
Company agrees to indemnify and hold harmless each Selling Shareholder from and against any losses, claims, damages or liabilities
to which such Selling Shareholder may become subject (under the Securities Act or otherwise) insofar as such losses, claims, damages
or liabilities (or actions or proceedings in respect thereof) arise out of, or are based upon (i) any untrue statement of a material
fact contained in the Registration Statement, (ii) any inaccuracy in the representations and warranties of the Company contained
in this Agreement or the failure of the Company to perform its obligations hereunder or (iii) any failure by the Company to fulfill
any undertaking included in the Registration Statement, and the Company will reimburse such Selling Shareholder for any reasonable
legal expense or other actual accountable out of pocket expenses reasonably incurred in investigating, defending or preparing to
defend any such action, proceeding or claim; provided, however, that the Company shall not be liable in any such case to the extent
that such loss, claim, damage or liability arises out of, or is based upon, an untrue statement made in such Registration Statement
in reliance upon and in conformity with written information furnished to the Company by or on behalf of such Selling Shareholder
specifically for use in preparation of the Registration Statement or the failure of such Selling Shareholder to comply with its
covenants and agreements contained herein or any statement or omission in any Prospectus that is corrected in any subsequent Prospectus
that was delivered to the Selling Shareholder prior to the pertinent sale or sales by the Selling Shareholder.

 

ii. Each
Purchaser severally (as to itself), and not jointly, agrees to indemnify and hold harmless the Company (and each person, if any,
who controls the Company within the meaning of Section 15 of the Securities Act, each officer of the Company who signs the Registration
Statement and each director of the Company) from and against any losses, claims, damages or liabilities to which the Company (or
any such officer, director or controlling person) may become subject (under the Securities Act or otherwise), insofar as such losses,
claims, damages or liabilities (or actions or proceedings in respect thereof) arise out of, or are based upon, (i) any failure
by that Purchaser to comply with the covenants and agreements contained herein or (ii) any untrue statement of a material fact
contained in the Registration Statement if, and only if, such untrue statement was made in reliance upon and in conformity with
written information furnished by or on behalf of that Purchaser specifically for use in preparation of the Registration Statement,
and that Purchaser will reimburse the Company (or such officer, director or controlling person, as the case may be), for any reasonable
legal expense or other reasonable actual accountable out-of-pocket expenses reasonably incurred in investigating, defending or
preparing to defend any such action, proceeding or claim. The obligation to indemnify shall be limited to the net amount of the
proceeds received by the Purchaser from the sale of the Common Shares pursuant to the Registration Statement.

 

    
	Purchase Agreement	Page 14

     

    

 

iii. Promptly
after receipt by any indemnified person of a notice of a claim or the beginning of any action in respect of which indemnity is
to be sought against an indemnifying person pursuant to this Section 6(c), such indemnified person shall notify the indemnifying
person in writing of such claim or of the commencement of such action, but the omission to so notify the indemnifying party will
not relieve it from any liability which it may have to any indemnified party under this Section 6(c) (except to the extent that
such omission materially and adversely affects the indemnifying party’s ability to defend such action) or from any liability
otherwise than under this Section 6(c). Subject to the provisions hereinafter stated, in case any such action shall be brought
against an indemnified person, the indemnifying person shall be entitled to participate therein, and, to the extent that it shall
elect by written notice delivered to the indemnified party promptly after receiving the aforesaid notice from such indemnified
party, shall be entitled to assume the defense thereof, with counsel reasonably satisfactory to such indemnified person. After
notice from the indemnifying person to such indemnified person of its election to assume the defense thereof (unless it has failed
to assume the defense thereof and appoint counsel reasonably satisfactory to the indemnified party), such indemnifying person shall
not be liable to such indemnified person for any legal expenses subsequently incurred by such indemnified person in connection
with the defense thereof; provided, however, that if there exists or shall exist a conflict of interest that would make it inappropriate,
in the reasonable opinion of counsel to the indemnified person, for the same counsel to represent both the indemnified person and
such indemnifying person or any affiliate or associate thereof, the indemnified person shall be entitled to retain its own counsel
(who shall not be the same as the opining counsel) at the expense of such indemnifying person; provided, however, that no indemnifying
person shall be responsible for the fees and expenses of more than one separate counsel (together with appropriate local counsel)
for all indemnified parties. In no event shall any indemnifying person be liable in respect of any amounts paid in settlement of
any action unless the indemnifying person shall have approved the terms of such settlement; provided that such consent shall not
be unreasonably withheld. No indemnifying person shall, without the prior written consent of the indemnified person, effect any
settlement of any pending or threatened proceeding in respect of which any indemnified person is or could reasonably have been
a party and indemnification could have been sought hereunder by such indemnified person, unless such settlement includes an unconditional
release of such indemnified person from all liability on claims that are the subject matter of such proceeding.

 

iv. If
the indemnification provided for in this Section 6(c) is unavailable to or insufficient to hold harmless an indemnified party under
subsection (i) or (iii) above in respect of any losses, claims, damages or liabilities (or actions or proceedings in respect thereof)
referred to therein, then each indemnifying party shall contribute to the amount paid or payable by such indemnified party as a
result of such losses, claims, damages or liabilities (or actions in respect thereof) in such proportion as is appropriate to reflect
the relative fault of the Company on the one hand and the liable Purchaser on the other in connection with the statements or omissions
or other matters which resulted in such losses, claims, damages or liabilities (or actions in respect thereof), as well as any
other relevant equitable considerations. The relative fault shall be determined by reference to, among other things, in the case
of an untrue statement, whether the untrue statement relates to information supplied by the Company on the one hand or the liable
Purchaser on the other and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent
such untrue statement. The Company and the Purchasers agree that it would not be just and equitable if contribution pursuant to
this subsection (iv) were determined by pro rata allocation (even if the Purchasers were treated as one entity for such purpose)
or by any other method of allocation which does not take into account the equitable considerations referred to above in this subsection
(iv). The amount paid or payable by an indemnified party as a result of the losses, claims, damages or liabilities (or actions
in respect thereof) referred to above in this subsection (iv) shall be deemed to include any legal or other expenses reasonably
incurred by such indemnified party in connection with investigating or defending any such action or claim. Notwithstanding the
provisions of this subsection (iv), no Purchasers shall be required to contribute any amount in excess of the amount by which the
net amount received by that Purchaser from the sale of the Common Shares to which such loss relates exceeds the amount of any damages
which that Purchaser has otherwise been required to pay to the Company by reason of such untrue statement. No person guilty of
fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from
any person who was not guilty of such fraudulent misrepresentation. The Purchasers’ obligations in this subsection to contribute
are several in proportion to their sales of Common Shares to which such loss relates and not joint.

 

    
	Purchase Agreement	Page 15

     

    

 

v. The
parties to this Agreement hereby acknowledge that they are sophisticated business persons who were represented by counsel during
the negotiations regarding the provisions hereof including, without limitation, the provisions of this Section 6(c), and are fully
informed regarding said provisions. They further acknowledge that the provisions of this Section 6(c) fairly allocate the risks
in light of the ability of the parties to investigate the Company and its business in order to assure that adequate disclosure
is made in the Registration Statement as required by the Securities Act and the Exchange Act.

 

vi. The
obligations of the Company and of the Purchasers under this Section 6(c) shall survive completion of any offering of Registrable
Securities in such Registration Statement for a period of two years from the effective date of the Registration Statement. No indemnifying
party, in the defense of any such claim or litigation, shall, except with the consent of each indemnified party, consent to entry
of any judgment or enter into any settlement 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 claim or litigation.

 

(d) Termination
of Conditions and Obligations. The conditions precedent imposed by this Section 6 upon the transferability of the Common
Shares shall cease and terminate as to any particular number of the Common Shares when such Common Shares shall have been effectively
registered under the Securities Act and sold or otherwise disposed of in accordance with the intended method of disposition set
forth in the Registration Statement covering such Common Shares or at such time as an opinion of counsel satisfactory to the Company
shall have been rendered to the effect that such conditions are not necessary in order to comply with the Securities Act. The Company
shall request an opinion of counsel promptly upon receipt of a request therefor from Purchaser.

 

(e) Information
Available. So long as the Registration Statement is effective covering the resale of Common Shares owned by a Purchaser,
the Company will furnish (or, to the extent such information is available electronically through the Company’s filings with
the SEC, the Company will make available via the SEC’s EDGAR system or any successor thereto) to each Purchaser:

 

● as
soon as practicable after it is available, one copy of (i) its Annual Report to Shareholders (which Annual Report shall contain
financial statements audited in accordance with generally accepted accounting principles by a national firm of certified public
accountants) and (ii) if not included in substance in the Annual Report to Shareholders, its Annual Report on Form 10-K (the foregoing,
in each case, excluding exhibits); 

 

● upon
the request of the Purchaser, all exhibits excluded by the parenthetical to subparagraph (a)(ii) of this Section 6(e) as filed
with the SEC and all other information that is made available to shareholders; and 

 

● upon
the reasonable request of the Purchaser, an adequate number of copies of the Prospectuses to supply to any other party requiring
such Prospectuses; and the Company, upon the reasonable request of a Purchaser, will meet with each Purchaser or a representative
thereof at the Company’s headquarters during the Company’s normal business hours to discuss all information relevant
for disclosure in the Registration Statement covering the Common Shares and will otherwise reasonably cooperate with the Purchasers
conducting an investigation for the purpose of reducing or eliminating the Purchasers’ exposure to liability under the Securities
Act, including the reasonable production of information at the Company’s headquarters; provided, that the Company shall not
be required to disclose any confidential information to or meet at its headquarters with a Purchaser until and unless that Purchaser
shall have entered into a confidentiality agreement in form and substance reasonably satisfactory to the Company with the Company
with respect thereto.

 

(f) Public
Statements; Limitation on Information. The Company agrees to disclose on a Current Report on Form 8-K the existence
of the offering and the material terms thereof, including pricing, within one business day after it specifies the Closing date.
Such Current Report on Form 8-K shall include a form of this Agreement (and all exhibits and schedules thereto) as an exhibit thereto.
The Company will not issue any public statement, press release or any other public disclosure listing a Purchaser as one of the
purchasers of the Common Shares without that Purchaser’s prior written consent, except as may be required by applicable law
or rules of any exchange on which the Company’s securities are listed. The Company shall not provide, and shall cause each
of its subsidiaries and the respective officers, directors, employees and agents of the Company and each of its subsidiaries not
to provide, the Purchasers with any material nonpublic information regarding the Company or any subsidiary from and after the date
the Company files, or is required by this Section to file, the Current Report on Form 8-K with the SEC without the prior express
written consent of the Purchaser.

 

    
	Purchase Agreement	Page 16

     

    

 

(g) Limits
on Additional Issuances. The Company will not, for a period of six months following the Closing date offer for sale
or sell any securities without the prior consent of the holders of at least a majority of the then-outstanding principal amount
of the Notes. Except as disclosed in the Company SEC Documents and for the issuance of stock options under the Company’s
stock option plans, the issuance of common stock upon exercise of outstanding options and warrants, the issuance of common stock
purchase warrants, and the offering contemplated hereby, the Company has not engaged in any offering of equity securities during
the six months prior to the date of this Agreement. The foregoing provisions shall not prevent the Company from filing a “shelf”
registration statement pursuant to Rule 415 under the Securities Act, but the foregoing provisions shall apply to any sale of securities
thereunder.

 

(h) Form D
and State Securities Filings. The Company will file with the SEC a Notice of Sale of Securities on Form D with
respect to the Securities, as required under Regulation D under the Securities Act, no later than 15 days after the Closing
date. The Company will promptly and timely file all documents and pay all filing fees required by any states’ securities
laws in connection with the sale of Securities.

 

(i) Assignment
of Registration Rights. The rights to cause the Company to register Registrable Securities pursuant to this Section
6 may be assigned by a Purchaser to a party that acquires, other than pursuant to the Registration Statement or Rule 144, any of
the Note Shares and Warrant Shares originally issued or issuable to such Purchaser pursuant to this Agreement and Note and the
Warrants (or any common stock issued as (or issuable upon the conversion or exercise of any warrant, right or other security which
is issued as) a dividend or other distribution with respect to, or in exchange for or in replacement of, any such Note Shares or
Warrant Shares), or to any affiliate of a Purchaser that acquires any Registrable Securities. Any such permitted assignee shall
have all the rights of such Purchaser under this Section 6 with respect to the Registrable Securities transferred.

 

7. Miscellaneous.

 

(a) Survival
of Warranties. Unless otherwise set forth in this Agreement, the representations and warranties of the Company and the
Investors contained in or made pursuant to this Agreement shall survive the execution and delivery of this Agreement and the closings
under this Agreement and shall in no way be affected by any investigation or knowledge of the subject matter thereof made by or
on behalf of the Investors or the Company.

 

(b) Successors
and Assigns. The terms and conditions of this Agreement shall inure to the benefit of and be binding upon the respective
successors and assigns of the parties. Nothing in this Agreement, express or implied, is intended to confer upon any party other
than the parties hereto or their respective successors and assigns any rights, remedies, obligations, or liabilities under or by
reason of this Agreement, except as expressly provided in this Agreement.

 

(c) Governing
Law. This Agreement and any controversy arising out of or relating to this Agreement shall be governed by and construed
in accordance with the General Corporation Law of the State of Delaware as to matters within the scope thereof, and as to all other
matters shall be governed by and construed in accordance with the internal laws of State of Arizona, without regard to conflict
of law principles that would result in the application of any law other than the law of the State of Arizona.

 

(d) Counterparts;
Facsimile. This Agreement may be executed and delivered by facsimile or electronic signature and in two or more counterparts,
each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

 

(e) Titles
and Subtitles. The titles and subtitles used in this Agreement are used for convenience only and are not to be considered
in construing or interpreting this Agreement.

 

(f) Notices.
All notices and other communications given or made pursuant to this Agreement shall be in writing and shall be deemed effectively
given upon the earlier of actual receipt or: (a) personal delivery to the party to be notified, (b) when sent, if sent by electronic
mail or facsimile during normal business hours of the recipient, and if not sent during normal business hours, then on the recipient’s
next business day, (c) five days after having been sent by registered or certified mail, return receipt requested, postage prepaid,
or (d) one business day after deposit with a nationally recognized overnight courier, freight prepaid, specifying next business
day delivery, with written verification of receipt. All communications shall be sent to the respective parties at their address
as set forth on the signature page, or to such e-mail address, facsimile number or address as subsequently modified by written
notice given in accordance with this Section. If notice is given to the Company, a copy shall also be sent to Frank B. Bennett,
Fredrikson & Byron, P.A., 200 South Sixth Street, Suite 4000, Minneapolis, MN 55402, and if notice is given to the Investors,
a copy shall also be given to [Investor Counsel Name and Address].

 

    
	Purchase Agreement	Page 17

     

    

 

(g) Attorneys’
Fees. If any action at law or in equity (including arbitration) is necessary to enforce or interpret the terms of any
of this Agreement, the Notes or the Warrants, the prevailing party shall be entitled to reasonable attorneys’ fees, costs
and necessary disbursements in addition to any other relief to which such party may be entitled.

 

(h) Amendments
and Waivers. Any term of this Agreement may be amended, terminated or waived only with the written consent of (i) the
Company, (ii) (A) the holders of at least a majority of the then-outstanding principal amount of the Notes or (B) for an amendment,
termination or waiver effected prior to the initial closing, Investors obligated to purchase a majority of the principal amount
of the Notes to be issued at the initial closing and (iii) the holders of at least a majority of the then-outstanding Warrants.
Any amendment or waiver effected in accordance with this Section shall be binding upon the Investors and each transferee of the
Securities, each future holder of all such securities, and the Company.

 

(i) Severability.
The invalidity or unenforceability of any provision hereof shall in no way affect the validity or enforceability of any other provision.

 

(j) Delays
or Omissions. No delay or omission to exercise any right, power or remedy accruing to any party under this Agreement,
upon any breach or default of any other party under this Agreement, shall impair any such right, power or remedy of such non-breaching
or non-defaulting party nor shall it be construed to be a waiver of any such breach or default, or an acquiescence therein, or
of or in any similar breach or default thereafter occurring; nor shall any waiver of any single breach or default be deemed a waiver
of any other breach or default theretofore or thereafter occurring. Any waiver, permit, consent or approval of any kind or character
on the part of any party of any breach or default under this Agreement, or any waiver on the part of any party of any provisions
or conditions of this Agreement, must be in writing and shall be effective only to the extent specifically set forth in such writing.
All remedies, either under this Agreement or by law or otherwise afforded to any party, shall be cumulative and not alternative.

 

(k) Entire
Agreement. This Agreement (including the exhibits hereto), the Notes and the Warrants constitute the full and entire
understanding and agreement between the parties with respect to the subject matter hereof, and any other written or oral agreement
relating to the subject matter hereof existing between the parties are expressly canceled.

 

(l) No
Commitment for Additional Financing. The Company acknowledges and agrees that no Investor has made any representation,
undertaking, commitment or agreement to provide or assist the Company in obtaining any financing, investment or other assistance,
other than the purchase of the Notes and Warrants as set forth herein and subject to the conditions set forth herein. In addition,
the Company acknowledges and agrees that (i) no statements, whether written or oral, made by any Investor or its representatives
on or after the date of this Agreement shall create an obligation, commitment or agreement to provide or assist the Company in
obtaining any financing or investment, (ii) the Company shall not rely on any such statement by any Investor or its representatives
and (iii) an obligation, commitment or agreement to provide or assist the Company in obtaining any financing or investment may
only be created by a written agreement, signed by such Investor and the Company, setting forth the terms and conditions of such
financing or investment and stating that the parties intend for such writing to be a binding obligation or agreement. Each Investor
shall have the right, in its sole and absolute discretion, to refuse or decline to participate in any other financing of or investment
in the Company, and shall have no obligation to assist or cooperate with the Company in obtaining any financing, investment or
other assistance.

 

(m) Corporate
Securities Law. THE SALE OF THE SECURITIES WHICH ARE THE SUBJECT OF THIS AGREEMENT HAS NOT BEEN QUALIFIED WITH THE COMMISSIONER
OF CORPORATIONS OF THE STATE OF CALIFORNIA AND THE ISSUANCE OF THE SECURITIES OR THE PAYMENT OR RECEIPT OF ANY PART OF THE CONSIDERATION
THEREFOR PRIOR TO THE QUALIFICATION IS UNLAWFUL, UNLESS THE SALE OF SECURITIES IS EXEMPT FROM THE QUALIFICATION BY SECTION
25100, 25102 OR 25105 OF THE CALIFORNIA CORPORATIONS CODE. THE RIGHTS OF ALL PARTIES TO THIS AGREEMENT ARE EXPRESSLY CONDITIONED
UPON THE QUALIFICATION BEING OBTAINED UNLESS THE SALE IS SO EXEMPT.

 

[Remainder of page intentionally left
blank—signature page follows]

 

    
	Purchase Agreement	Page 18

     

    

 

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

 

	Investor:	 	EVO TRANSPORTATION & ENERGY SERVICES, INC. 
	 	 	 
	Entity Name: DAN THOMPSON II LLC	 	 	 
	 	 	 	 	 
	By:	/s/ Dan Thompson 	 	By:	/s/ John P. Yeros 
	Name:	Dan Thompson	 	Name:	John P. Yeros
	Title:	President	 	Title:	Chief Executive Officer 
	 	 	 	 	 
	TIN/SSN:	 	 	 	 
	 	 	 	 	 
	Address:	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	E-mail: 	 	 	 	 
	Facsimile: 
	 	 	 	 

 

Mark all that are applicable:

 

	____	Investor is an individual with a net worth, or a joint net worth together with his or her spouse, in excess of $1,000,000. 
	 	 
	____	Investor is an individual that had an individual income in excess of $200,000 in each of the prior two years and reasonably expects an income in excess of $200,000 in the current year or an individual that had with his/her spouse joint income in excess of $300,000 in each of the prior two years and reasonably expects joint income in excess of $300,000 in the current year.
	 	 
	____	Investor is an entity all of whose members are either (a) individuals with a net worth, or a joint net worth together with the individual’s spouse, in excess of $1,000,000, (b) individuals that had an individual income in excess of $200,000 in each of the prior two years and reasonably expect an income in excess of $200,000 in the current year or (c) individuals that had with the individual’s spouse joint income in excess of $300,000 in each of the prior two years and reasonably expect joint income in excess of $300,000 in the current year.
	 	 
	____	Investor is a private business development company as defined in Section 202(a)(22) of the Investment Advisers Act of 1940, an investment company registered under the Investment Company Act of 1940, a business development company as defined in Section 2(a)(48) of the Investment Company Act of 1940 or a Small Business Investment Company licensed by the U.S. Small Business Administration under Section 301(c) or (d) of the Small Business Investment Act of 1958.
	 	 
	____	Investor has total assets in excess of $5,000,000, was not formed for the specific purpose of acquiring the securities and is one or more of the following (check one or more, as appropriate):

 

	 	____	an organization described in Section 501(c)(3) of the Internal Revenue Code;

  

	 	____	a corporation; 	____	a Massachusetts or similar business trust; or

 

	 	____	 a partnership.

 

	____	Investor is a trust with total assets exceeding $5,000,000 that was not formed for the specific purpose of acquiring securities and whose purchase is directed by a person who has such knowledge and experience in financial and business matters that he is capable of evaluating the merits and risks of the investment in the securities.
	 	 
	____	Investor is a director or executive officer of the Company.

 

     

     

    

 

Schedule
I

 

Schedule
of Investors

  

	Investor	 	Loan Amount	 	Date of Note Issue	 	Warrant Shares
	Dan Thompson II LLC

Attention:  ______________

_______________________

______________, __ _____

Tel: (___) ___-____

Fax: (___) ___-____

Email: _____@___________.___	 	$3,000,000.00	 	July 20, 2018	 	1,200,000
	 	 	 	 	 	 	 
	
        _______________________

         

        Attention: ______________

        _______________________

        ______________, __ _____

        Tel: (___) ___-____

        Fax: (___) ___-____

        Email: _____@___________.___

         
	 	$__________	 	_________ __, 20__	 	 

    
	Purchase Agreement	Schedule I

     

    

 

Schedule
II

 

Indebtedness

 

		1.	Loan Agreement, dated as of December 31, 2014, by and between Titan El Toro, LLC and FirstCNG LLC
and Tradition Capital Bank

		2.	Secured Bridge Note, dated February 29, 2016, by Titan CNG LLC in favor of Red Ocean Consulting,
LLC

		3.	Secured Bridge Note, dated February 29, 2016, by Titan CNG LLC in favor of David M. Leavenworth

		4.	Secured Bridge Note, dated September 26, 2016, by Titan CNG LLC in favor of Red Ocean Consulting,
LLC

		5.	Convertible Promissory Note, dated November 22, 2016, by Minn Shares Inc. in favor of Joseph H.
Whitney

		6.	Convertible Promissory Note, dated November 22, 2016, by Minn Shares Inc. in favor of The Globe
Resources Group, LLC

		7.	Convertible Promissory Note, dated November 22, 2016, by Minn Shares Inc. in favor of Richard E.
Gilbert

		8.	Secured Bridge Note, dated January 31, 2017, by Titan CNG LLC in favor of the Richard H. Enrico
Revocable Trust dated June 9, 1998

		9.	Convertible Promissory Note, dated February 1, 2017, by Minn Shares Inc. in favor of Danny R. Cuzick

		10.	Convertible Promissory Note, dated February 1, 2017, by Minn Shares Inc. in favor of Damon R. Cuzick

		11.	Convertible Promissory Note, dated February 1, 2017, by Minn Shares Inc. in favor of Theril H.
Lund

		12.	Convertible Promissory Note, dated February 1, 2017, by Minn Shares Inc. in favor of Thomas J.
Kiley

		13.	Senior Promissory Note, dated February 1, 2017, by Minn Shares Inc. in favor of Danny R. Cuzick,
as amended

		14.	Working Capital Note, dated February 1, 2017, by Minn Shares Inc. in favor of Danny R. Cuzick

		15.	Working Capital Note, dated February 1, 2017, by Minn Shares Inc. in favor of Damon R. Cuzick

		16.	Working Capital Note, dated February 1, 2017, by Minn Shares Inc. in favor of Theril H. Lund

		17.	Working Capital Note, dated February 1, 2017, by Minn Shares Inc. in favor of Thomas J. Kiley

		18.	Promissory Note, dated February 1, 2017, by Environmental Alternative Fuels, LLC in favor of Danny
R. Cuzick, (guaranteed by the Company)

		19.	Promissory Note dated June 1, 2018 between EVO Transportation & Energy Services, Inc. and Billy
(Trey) Peck Jr.

		20.	Equity Purchase Agreement dated June 1, 2018 between EVO Transportation & Energy Services,
Inc. and Billy (Trey) Peck Jr.

  

    
	Purchase Agreement	Schedule II

     

    

 

Exhibit
A

 

Form
of Convertible Note

 

 

 

 

 

 

    
	Purchase Agreement	Exhibit A

     

    

 

Exhibit
B

 

Form
of Initial Warrant

 

 

 

 

 

 

 

 

 

    
	Purchase Agreement	Exhibit B

     

    

 

Exhibit
C

 

Form
of Security Agreement

 

 

 

 

 

 

 

 

    
	Purchase Agreement	Exhibit C

     

    

 

Exhibit
D

 

Notice
of Adoption

 

This Notice of Adoption
(“Adoption Notice”) is executed by the undersigned (the “Adopting Party”) pursuant to the
terms of that certain Bridge Loan Agreement dated as of _________ __, 20__, as may be amended from time to time (the “Agreement”),
by and among _____________, a __________ __________, and the other parties thereto. Capitalized terms used but not defined herein
will have the respective meanings ascribed to such terms in the Agreement. By the execution and delivery of this Adoption Notice,
the Adopting Party agrees as follows:

 

1. Acknowledgment.
Adopting Party acknowledges that Adopting Party is purchasing the Notes and related Warrants set forth below.

 

2. Agreement.
Adopting Party: (i) agrees that the Notes and Warrants acquired by Adopting Party will be bound by and subject to the terms
of the Agreement; and (ii) hereby adopts the Agreement with the same force and effect as if Adopting Party were originally
an Investor, with its representations and warranties effective as of the date hereof.

 

3. Notice.
Any notice required or permitted by the Agreement will be given to Adopting Party at the address or facsimile listed beside Adopting
Party’s signature below.

 

IN WITNESS WHEREOF,
the Adopting Party has caused this Notice of Adoption to be executed by its duly authorized representative as of the date first
written below.

 

	Aggregate Principal Amount of Notes Purchased: 	 	 	 
	 	 	 	 	Printed Name of Adopting Party

 

	Date:	 	 	 	 
	 	 	 	 	 
		 	 	 	 
	 	 	 	 	Signature
	 	 	 	 	 
	Address	 	 	 
	 	 	 	 	 
	Email:	 	 	 	 

 

	Facsimile: (___) 	 	 	Printed Name and Title

 

    
	Purchase Agreement	Exhibit D

     

    

 

Mark all that are applicable:

 

	____	Investor is an individual with a net worth, or a joint net worth together with his or her spouse, in excess of $1,000,000. 
	 	 
	____	Investor is an individual that had an individual income in excess of $200,000 in each of the prior two years and reasonably expects an income in excess of $200,000 in the current year or an individual that had with his/her spouse joint income in excess of $300,000 in each of the prior two years and reasonably expects joint income in excess of $300,000 in the current year.
	 	 
	____	Investor is an entity all of whose members are either (a) individuals with a net worth, or a joint net worth together with the individual’s spouse, in excess of $1,000,000, (b) individuals that had an individual income in excess of $200,000 in each of the prior two years and reasonably expect an income in excess of $200,000 in the current year or (c) individuals that had with the individual’s spouse joint income in excess of $300,000 in each of the prior two years and reasonably expect joint income in excess of $300,000 in the current year.
	 	 
	____	Investor is a private business development company as defined in Section 202(a)(22) of the Investment Advisers Act of 1940, an investment company registered under the Investment Company Act of 1940, a business development company as defined in Section 2(a)(48) of the Investment Company Act of 1940 or a Small Business Investment Company licensed by the U.S. Small Business Administration under Section 301(c) or (d) of the Small Business Investment Act of 1958.
	 	 
	____	Investor has total assets in excess of $5,000,000, was not formed for the specific purpose of acquiring the securities and is one or more of the following (check one or more, as appropriate):

 

	 	____	an organization described in Section 501(c)(3) of the Internal Revenue Code;

 

	 	____	a corporation; 	____	a Massachusetts or similar business trust; or

 

	 	____	 a partnership.

 

	____	Investor is a trust with total assets exceeding $5,000,000 that was not formed for the specific purpose of acquiring securities and whose purchase is directed by a person who has such knowledge and experience in financial and business matters that he is capable of evaluating the merits and risks of the investment in the securities.
	 	 
	____	Investor is a director or executive officer of the Company.

 

 

	Purchase Agreement	Exhibit DExhibit
10.3

 

SECURITY
AGREEMENT

 

This
Security Agreement (the “Agreement”) is made as of July 20, 2018 by EVO TRANSPORTATION & ENERGY SERVICES,
INC., a Delaware corporation (the “Debtor”) in favor of Dan Thompson II LLC and each other Investor (as defined
below) that may become party to the Note Purchase Agreement (as defined below) from time to time, as Secured Parties (as defined
below).

 

Pursuant
to a Secured Convertible Promissory Note Purchase Agreement (together with all amendments, modifications and restatements of such
agreement, the “Note Purchase Agreement”) of even date herewith between the Debtor and Dan Thompson II LLC,
as an investor, and each of the other investors party thereto from time to time (collectively, the “Investors”),
the Investors have agreed to make advances to the Borrower.

 

As
a condition to extending credit under the Note Purchase Agreement, the Investors have required the execution and delivery of this
Agreement by the Debtor.

 

ACCORDINGLY,
in consideration of the mutual covenants contained in the Note Purchase Agreement and herein, the parties hereby agree as follows:

 

1. Definitions.

 

(a) Terms
defined in Note Purchase Agreement. All terms defined in the Note Purchase Agreement that are not otherwise defined herein
shall have the meanings given them in the Note Purchase Agreement.

 

(b) Terms
defined in UCC. The following terms, when used herein (whether or not capitalized), shall have the meanings given them in
the UCC (and, in the case of any term defined in Article 9 of the UCC and in another Article of the UCC, the definition thereof
in Article 9 of the UCC shall control), except that (i) for purposes of this Agreement, the meaning of such terms will not
be limited by reason of any limitation on the scope of the UCC, whether under Section 9-109 of the UCC, by reason of federal preemption
or otherwise, and (ii) to the extent the definition of any category or type of Collateral is expanded by any amendment, modification
or revision to the UCC, such expanded definition will apply automatically as of the date of such amendment, modification or revision:

 

“Account”

“Chattel
paper”

“Commercial
tort claim”

“Deposit
account”

“Document”

“Equipment”

“Farm
products”

“General
intangible”

“Instrument”

“Inventory”

“Investment
property”

“Letter-of-credit
right”

“Letter
of credit”

“Money”

“Payment
intangible”

 

(c) Other
Definitions. The following terms have the meanings set forth below:

 

“Collateral”
means all right, title and interest of the Debtor in and to accounts, chattel paper, commercial tort claims, deposit accounts,
documents, equipment, farm products, fixtures, general intangibles (including the Debtor’s Equity Interests), goods, instruments,
inventory, investment property, letter-of-credit rights, letters of credit, securities, any other contract rights or rights to
the payment of money and money, whether now owned or hereafter acquired.

 

     

     

    

 

“Copyright”
means each copyright included in the Collateral.

 

“Equity
Interest” means all of the shares of capital stock of (or other ownership or profit interests in), all of the warrants,
options or other rights for the purchase or acquisition of shares of capital stock (or other ownership or profit interests in),
all of the securities convertible into or exchangeable for shares of capital stock (or other ownership or profit interests in)
or warrants, rights or options for the purchase or acquisition of such shares (or such other interests), and all of the other
ownership or profit interests (including partnership, member or trust interests therein), whether voting or nonvoting, and whether
or not such shares, warrants, options, rights or other interests are outstanding on any date of determination.

 

“Event
of Default” has the meaning assigned to such term in the Notes.

 

“Intellectual
Property Rights” means all actual or prospective rights arising in connection with any intellectual property or other
proprietary rights, including all rights arising in connection with copyrights, patents, service marks, trade dress, trade secrets,
trademarks, trade names or mask works.

 

“Issuer”
means any person the Equity Interests of which is included in the Collateral.

 

“LLC”
means any limited liability company in which the Debtor now owns or hereafter acquires a LLC Interest.

 

“LLC
Interest” means any membership interest in a limited liability company now owned or hereafter acquired by the Debtor.

 

“Obligations”
means all obligations of the Borrower under the Note Purchase Agreement and each of the other Transaction Documents, including
without limitation each of the Notes and the Warrants.

 

“Patent”
means each patent or application for patent included in the Collateral.

 

“Permitted
Liens” means all liens (a) granted under that certain Second Amended and Restated Security Agreement by Titan CNG LLC,
Titan El Toro LLC, Titan Diamond Bar LLC, Titan Blaine LLC, and the Company, (b) granted in connection with that certain Agreement
and Plan of Securities Exchange, dated January 11, 2017, by and among EVO CNG, LLC, Environmental Alternative Fuels, LLC, Danny
R. Cuzick, Damon R. Cuzick, Theril H. Lund, Thomas J. Kiley and the Company and the transactions contemplated thereby, and (c)
granted in connection with that certain Equity Purchase Agreement dated June 1, 2018 between the Company and Billy (Trey) Peck
Jr. and the transactions contemplated thereby.

 

“Receivable”
means any account, chattel paper, instrument, payment intangible or other right to payment arising out of the provision of goods
or services by the Debtor.

 

“Related
Voting Rights” means any and all voting rights related to or arising out of any Equity Interest constituting Collateral.

 

“Security
Interest” means the security interest granted hereunder.

 

“Secured
Parties” means the Investors and the other persons the Obligations are owing to which are or are purported to be secured
by the Collateral under the terms of this Agreement.

 

“Trademark”
means each trademark, service mark, collective membership mark, and registration or application for registration of any trademark,
service mark or collective membership mark, included in the Collateral, together with the goodwill associated therewith.

 

“UCC”
means the Uniform Commercial Code as adopted in the State of Arizona

 

    	 	-2-	 

     

    

 

2. Security
Interest. The Debtor hereby grants the Secured Parties a security interest in the Collateral to secure the payment and performance
of the Obligations.

 

3. Representations,
Warranties and Agreements. The Debtor hereby represents, warrants and agrees as follows:

 

(a) Title.
The Debtor (i) has absolute title to each item of Collateral in existence on the date hereof, free and clear of all Liens
other than Permitted Liens, (ii) will have, at the time the Debtor acquires any rights in Collateral hereafter arising, absolute
title to each such item of Collateral free and clear of all Liens other than Permitted Liens, (iii) will keep all Collateral
free and clear of all Liens other than Permitted Liens, and (iv) will defend the Collateral against all claims or demands
(other than claims and demands based on Permitted Liens) of all persons other than the Secured Parties. The Debtor will not sell
or otherwise dispose of the Collateral or any interest therein without the prior written consent of the Secured Parties, except
that, until the occurrence of an Event of Default and the revocation by the Secured Parties of the Debtor’ right to do so,
the Debtor may sell any inventory constituting Collateral to buyers in the ordinary course of business.

 

(b) Legal
Name; Jurisdiction; Chief Executive Office; Organizational Identification Number. Exhibit A hereto sets forth the Debtor’s
correct legal name, jurisdiction of organization, chief executive office, organizational identification number issued by the jurisdiction
of organization, and federal employer identification number. The Debtor has only one state of incorporation or organization. The
Debtor will not change its name, jurisdiction of organization or chief executive office without prior written notice to the Secured
Parties.

 

(c) Fixtures.
The Debtor will not permit any tangible Collateral to become part of or to be affixed to any real property without first assuring
to the reasonable satisfaction of the Secured Parties that the Security Interest will be prior and senior to any Lien then held
or thereafter acquired by any mortgagee of such real property or the owner or purchaser of any interest therein.

 

(d) Receivables.
Each Receivable is (or will be when arising or issued) the valid, genuine and legally enforceable obligation, subject to no defense,
setoff or counterclaim (other than those arising in the ordinary course of business), of the account debtor or other obligor named
therein or in the Debtor’s records pertaining thereto as being obligated to pay such obligation. The Debtor will not agree
to any material modification or amendment of, or agree to any forbearance, release or cancellation of, any such obligation without
the Secured Parties’ prior written consent, and will not subordinate any such right to payment to claims of other creditors
of such account debtor or other obligor.

 

(e) Evidences
of Collateral. The Debtor will (i) promptly (upon receipt) deliver to the Secured Parties all certificates or instruments
representing or constituting Collateral, if any, and (ii) duly endorse, in blank, each and every certificate or instrument
constituting Collateral, if any, by signing on said certificate or instrument or by signing a separate document of assignment
or transfer, as required by the Secured Parties. Prior to any of the foregoing deliveries, the Debtor shall hold all such certificates
or instruments, if any, in trust for the benefit of the Secured Parties.

 

(f) Miscellaneous
Covenants. The Debtor will:

 

		(i)	Keep
                                         all tangible Collateral in good repair, working order and condition, normal depreciation
                                         excepted, and will, from time to time, replace any worn, broken or defective parts thereof.

 

		(ii)	Promptly
                                         pay all Taxes levied or assessed upon or against any Collateral or upon or against the
                                         creation, perfection or continuance of the Security Interest, except Taxes (i) that are
                                         being contested in good faith by appropriate proceedings and for which the Debtor has
                                         set aside on its books adequate reserves in accordance with GAAP or (ii) which could
                                         not, individually or in the aggregate, have a material adverse effect.

 

    	 	-3-	 

     

    

 

		(iii)	At
                                         all reasonable times, permit the Secured Parties, or the representatives of the Secured
                                         Parties, to examine or inspect any Collateral, wherever located, and to examine, inspect
                                         and copy the Debtor’ books and records pertaining to the Collateral and their business
                                         and financial condition and to send and discuss with account debtors and other obligors
                                         requests for verifications of amounts owed to the Debtor.

 

		(iv)	Keep
                                         accurate and complete records pertaining to the Collateral and pertaining to the Debtor’s
                                         business and financial condition and submit to the Secured Parties such periodic reports
                                         concerning the Collateral and the Debtor’s business and financial condition as
                                         the Secured Parties may from time to time reasonably request.

 

		(v)	Promptly
                                         notify the Secured Parties of any loss of or material damage to any Collateral or of
                                         any adverse change, known to the Debtor, in the prospect of payment of any sums due on
                                         or under any Receivable.

 

		(vi)	At
                                         all times keep all tangible Collateral insured against risks of fire (including so-called
                                         extended coverage), theft, collision (in case of Collateral consisting of motor vehicles)
                                         and such other risks and in such amounts as the Secured Parties may reasonably request,
                                         with any loss payable to the Secured Parties to the extent of its interest.

 

		(vii)	Not
                                         permit any tangible Collateral to be located in any jurisdiction in which a financing
                                         statement covering such Collateral is required to be, but has not in fact been, filed
                                         in order to perfect the Security Interest or in which any other action is required to
                                         be, but has not in fact been, taken in order to perfect the Security Interest.

 

		(viii)	If
                                         any Collateral consists of a motor vehicle, at the request of the Secured Parties, execute
                                         such documents as may be required to have the Security Interest properly noted on a certificate
                                         of title and, if Collateral consists of investment property, execute any control or transfer
                                         agreement which Secured Parties may reasonably require to obtain control over such investment
                                         property.

 

		(ix)	Pay
                                         when due or reimburse the Secured Parties on demand for all costs of collection of any
                                         of the Obligations and all other out-of-pocket expenses (including in each case all reasonable
                                         attorneys’ fees) incurred by the Secured Parties in connection with the creation,
                                         perfection, satisfaction, protection, defense or enforcement of the Security Interest
                                         or the creation, continuance, protection, defense or enforcement of this Agreement or
                                         any or all of the Obligations, including expenses incurred in any litigation or bankruptcy
                                         or insolvency proceedings.

 

		(x)	Execute,
                                         deliver or endorse any and all assignments, security agreements, control agreements and
                                         other agreements and writings (including but not limited to copyright, patent and trademark
                                         security agreements) that the Secured Parties may at any time reasonably request in order
                                         to secure, continue, protect, perfect or enforce the Security Interest and the Secured
                                         Parties’ rights under this Agreement.

 

		(xi)	Not
                                         use or keep any Collateral, or permit it to be used or kept, for any unlawful purpose
                                         or in violation of any federal, state or local law, statute or ordinance.

 

		(xii)	Not
                                         amend or terminate any financing statement naming the Secured Parties (on behalf of the
                                         Secured Parties) as secured party except upon written prior authorization of the Secured
                                         Parties.

 

    	 	-4-	 

     

    

 

4. Secured
Parties’ Right to Take Action. If the Debtor at any time fails to perform or observe any agreement contained in this
Agreement, and if such failure continues for a period of ten calendar days after the Secured Parties give the Debtor written notice
thereof (or, in the case of the agreements contained in clauses (vi) and (viii) of Section 3(f), for a period of three
calendar days after Secured Parties give the Debtor written thereof), the Secured Parties may (but need not) perform or observe
such agreement on behalf and in the name, place and stead of the Debtor (or, at the Secured Parties’ option, in the Secured
Parties’ own name) and may (but need not) take any and all other actions which the Secured Parties may reasonably deem necessary
to cure or correct such failure (including, without limitation the payment of Taxes, the satisfaction of Liens, the performance
of obligations under contracts or agreements with account debtors or other obligors, the procurement and maintenance of insurance,
the execution of financing statements, the endorsement of instruments, and the procurement of repairs, transportation or insurance);
and, except to the extent that the effect of such payment would be to render any loan or forbearance of money usurious or otherwise
illegal under any applicable law, the Debtor shall thereupon pay the Secured Parties on demand the amount of all moneys expended
and all costs and expenses (including reasonable attorneys’ fees) incurred by the Secured Parties in connection with or
as a result of the Secured Parties’ performing or observing such agreements or taking such actions, together with interest
thereon from the date expended or incurred by the Secured Parties at the highest rate then applicable to any of the Obligations.
To facilitate the performance or observance by the Secured Parties of such agreements of the Debtor, the Debtor hereby irrevocably
appoints (which appointment is coupled with an interest) the Secured Parties, or its delegate, as the attorney-in-fact of that
Debtor with the right (but not the duty) from time to time to create, prepare, complete, execute, deliver, endorse or file, in
the name and on behalf of that Debtor, any and all instruments, documents, financing statements, applications for insurance and
other agreements and writings required to be obtained, executed, delivered or endorsed by the Debtor under this Section 4
and Section 6.

 

5. Financing
Statements. The Secured Parties may (and the Debtor hereby authorizes the Secured Parties to) execute and file such financing
statements and other documents as the Secured Parties may at any time deem appropriate to perfect the Security Interest. Without
limiting the generality of the foregoing, the Debtor authorizes the Secured Parties to file financing statements designating the
collateral as “all personal property” or “all assets” of that Debtor, and authorizes, ratifies and approves
any financing statement filed by the Secured Parties on or prior to the date of this Agreement.

 

6. Secured
Party Appointed Attorney-in-Fact. The Debtor hereby appoints the Secured Parties the Debtor’s attorney-in-fact, with
full authority in the place and stead of the Debtor and in the name of the Debtor or otherwise, from time to time during the continuance
of an Event of Default in the Secured Party’s discretion to take any action and to execute any instrument which the Secured
Party may deem necessary or advisable to accomplish the purposes of this Agreement (but the Secured Party shall not be obligated
to and shall have no liability to the Debtor or any third party for failure to do so or take action). This appointment, being
coupled with an interest, shall be irrevocable. The Debtor hereby ratifies all that said attorneys shall lawfully do or cause
to be done by virtue hereof.

 

7. Remedies
upon Event of Default. Upon the occurrence and during the continuance of an Event of Default, the Secured Parties may exercise
any one or more of the following rights and remedies: (a) declare all unmatured Obligations to be immediately due and payable,
and the same shall thereupon be immediately due and payable, without presentment or other notice or demand; (b) exercise
and enforce any or all rights and remedies available upon default to a secured party under the UCC, including but not limited
to the right to take possession of any Collateral, proceeding without judicial process or by judicial process (without a prior
hearing or notice thereof, which the Debtor hereby expressly waives), and the right to sell, lease, license or otherwise dispose
of any or all of the Collateral, and in connection therewith, the Secured Parties may require the Debtor to make the Collateral
available to the Secured Parties at a place to be designated by the Secured Parties which is reasonably convenient to all applicable
parties, and if notice to the Debtor of any intended disposition of Collateral or any other intended action is required by law
in a particular instance, such notice shall be deemed commercially reasonable if given (in the manner specified in Section
9) at least 10 calendar days prior to the date of intended disposition or other action; (c) enforce the Trademarks, Patents
and Copyrights; (d) exercise all Related Voting Rights; and (e) exercise or enforce any or all other rights or remedies available
to the Secured Parties by law or agreement against the Collateral, against the Debtor or against any other person or property.
The Secured Parties is hereby granted a nonexclusive, worldwide and royalty-free license, with the right to grant sublicenses,
to all Intellectual Property Rights of the Debtor that the Secured Parties deems necessary or appropriate to the disposition of
any Collateral; provided, however, that the Secured Parties shall not exercise such license or right prior to the
occurrence and during the continuance of an Event of Default.

 

    	 	-5-	 

     

    

 

8. Other
Personal Property. Unless at the time the Secured Parties takes possession of any tangible Collateral, or within 7 days thereafter,
the Debtor give written notice to the Secured Parties of the existence of any goods, papers or other property of the Debtor, not
affixed to or constituting a part of such Collateral, but which are located or found upon or within such Collateral, describing
such property, the Secured Parties shall not be responsible or liable to the Debtor for any action taken or omitted by or on behalf
of the Secured Parties with respect to such property without actual knowledge of the existence of any such property or without
actual knowledge that it was located or to be found upon or within such Collateral.

 

9.  Notices.
All notices and other communications hereunder shall be in writing and shall be delivered, and deemed delivered, in accordance
with the Note Purchase Agreement.

 

10. Requests
for Accounting. All requests under Section 9-210 of the UCC (i) shall be made in a writing signed by an authorized person,
(ii) shall be personally delivered, sent by registered or certified mail, return receipt requested, or by overnight courier
of national reputation, (iii) shall be deemed to be sent when received by the Secured Parties, and (iv) shall otherwise comply
with the requirements of Section 9-210 of the UCC. The Debtor request that the Secured Parties respond to all such requests which
on their face appear to come from an authorized individual and release the Secured Parties from any liability for so responding.
The Debtor shall pay Secured Parties the maximum amount allowed by law for responding to such requests.

 

11. Secured
Parties’ Obligations.

 

(a) The
Secured Parties may exercise or refrain from exercising any rights (including making demands and giving notices) and take or refrain
from taking any action (including the release or substitution of the Collateral), in accordance with this Agreement and the Note
Purchase Agreement. The Secured Parties may employ agents and attorneys-in-fact in connection herewith and shall not be liable
for the negligence or misconduct of any such agents or attorneys-in-fact selected by it in good faith. The Secured Parties may
resign and a successor Secured Party may be appointed in the manner provided in the Note Purchase Agreement.

 

(b) The
Secured Parties’ duty of care with respect to Collateral in its possession (as imposed by law) shall be deemed fulfilled
if the Secured Parties exercise reasonable care in physically safekeeping such Collateral or, in the case of Collateral in the
custody or possession of a bailee or other third person, exercise reasonable care in the selection of the bailee or other third
person, and the Secured Parties need not otherwise preserve, protect, insure or care for any Collateral. The Secured Parties shall
not be obligated to preserve any rights the Debtor may have against prior parties, to realize on the Collateral at all or in any
particular manner or order, or to apply any cash proceeds of Collateral in any particular order of application. To the extent
that applicable law imposes duties on the Secured Parties to exercise remedies in a commercially reasonable manner, the Debtor
acknowledges and agrees that it would be commercially reasonable for the Secured Parties (i) to fail to incur expenses deemed
significant by the Secured Parties to prepare Collateral for disposition or otherwise to transform raw material or work in process
into finished goods or other finished products for disposition, (ii) to fail to obtain third party consents for access to
Collateral to be disposed of, or to obtain or, if not required by other law, to fail to obtain governmental or third party consents
for the collection or disposition of Collateral to be collected or disposed of, (iii) to fail to exercise collection remedies
against any account debtor or other obligor or to remove Liens on or any adverse claims against Collateral, (iv) to advertise
dispositions of Collateral through publications or media of general circulation, whether or not the Collateral is of a specialized
nature, (v) to dispose of assets in wholesale rather than retail markets, or (vi) to disclaim disposition warranties,
such as title, possession or quiet enjoyment. The Debtor acknowledges that this Section 11 is intended to provide non-exhaustive
indications of actions or omissions by the Secured Parties that would be commercially reasonable in the Secured Parties’
exercise of remedies against the Collateral, and that other actions or omissions by the Secured Parties shall not be deemed commercially
unreasonable solely on account of not being indicated in this Section 11. Nothing contained in this Section 11 shall
be construed to grant any rights to the Debtor or to impose any duties on the Secured Parties that would not have been granted
or imposed by this Security Agreement or by applicable law in the absence of this Section 11. The Secured Parties shall
be entitled to rely upon any written notice, statement, certificate, order or other document or any telephone message believed
by it to be genuine and correct and to have been signed, sent or made by the proper person, and, with respect to all matters pertaining
to this Agreement and its duties hereunder.

 

    	 	-6-	 

     

    

 

12. Waiver;
Cumulative Remedies. This Agreement can be waived, modified, amended, terminated or discharged, and the Security Interest
can be released, only explicitly in a writing signed by the Secured Parties. A waiver signed by the Secured Parties shall be effective
only in the specific instance and for the specific purpose given. Mere delay or failure to act shall not preclude the exercise
or enforcement of any of the Secured Parties’ rights or remedies. All rights and remedies of the Secured Parties shall be
cumulative and may be exercised singularly or concurrently, at the Secured Parties’ option, and the exercise or enforcement
of any one such right or remedy shall neither be a condition to nor bar the exercise or enforcement of any other.

 

13. Binding
Effect. This Agreement has been duly and validly authorized by all necessary action of the Debtor. This Agreement shall be
binding upon and inure to the benefit of the Debtor and the Secured Parties and their respective successors and assigns and shall
take effect when signed by the Debtor and delivered to the Secured Parties. The Debtor waives notice of the Secured Parties’
acceptance hereof.

 

14. Governing
Law. This Agreement shall be governed by and construed in accordance with the internal laws of the State of Arizona without
giving effect to any choice or conflict of law provision or rule (whether of the State of Arizona or any other jurisdiction) that
would require or permit the application of the laws of any other jurisdiction.

 

15. Consent
to Jurisdiction. ANY LEGAL SUIT, ACTION OR PROCEEDING ARISING OUT OF OR BASED UPON THIS AGREEMENT MAY BE INSTITUTED ONLY IN
THE FEDERAL COURTS OF THE UNITED STATES OF AMERICA OR THE COURTS OF THE STATE OF ARIZONA IN EACH CASE LOCATED IN THE COUNTY OF
MARICOPA, AND EACH PARTY IRREVOCABLY SUBMITS TO THE EXCLUSIVE JURISDICTION OF, AND SOLE VENUE IN, SUCH COURTS IN ANY SUCH SUIT,
ACTION OR PROCEEDING. SERVICE OF PROCESS, SUMMONS, NOTICE OR OTHER DOCUMENT BY MAIL TO SUCH PARTY’S ADDRESS SET FORTH IN
THE PURCHASE AGREEMENT SHALL BE EFFECTIVE SERVICE OF PROCESS FOR ANY LEGAL SUIT, ACTION OR ANY PROCEEDING BROUGHT IN ANY SUCH
COURT. THE PARTIES IRREVOCABLY AND UNCONDITIONALLY WAIVE ANY OBJECTION TO THE LAYING OF VENUE OF ANY LEGAL SUIT, ACTION OR ANY
PROCEEDING IN SUCH COURTS AND IRREVOCABLY WAIVE AND AGREE NOT TO PLEAD OR CLAIM IN ANY SUCH COURT THAT ANY SUCH SUIT, ACTION OR
PROCEEDING BROUGHT IN ANY SUCH COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM. Each of the Borrower and each Secured Party consents
to process being served in any such suit, action or proceeding by mailing a copy thereof to such party at the address set forth
in the Purchase Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof.
Nothing in this Section 15 shall affect or limit any right to serve process in any other manner permitted by law.

 

16. Waiver
of Jury Trial. Each party hereto hereby waives, to the fullest extent permitted by applicable Requirements of Law, any
right it may have to a trial by jury in any legal proceeding directly or indirectly arising out of or relating to this Agreement,
any other Transaction Document or the transactions contemplated hereby (whether based on contract, tort or any other theory).
Each party hereto (a) certifies that no representative, agent or attorney of any other party has represented, expressly or
otherwise, that such other party would not, in the event of litigation, seek to enforce the foregoing waiver and (b) acknowledges
that it and the other parties hereto have been induced to enter into this Agreement by, among other things, the mutual waivers
and certifications in this Section.

 

17. Severability.
Any provision of this Agreement held to be invalid, illegal or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such invalidity, illegality or unenforceability without affecting the validity, legality and enforceability
of the remaining provisions hereof; and the invalidity of a particular provision in a particular jurisdiction shall not invalidate
such provision in any other jurisdiction.

 

18. Survival.
All covenants, agreements, representations and warranties made by the Borrower or any other Debtor in the Transaction Documents
and in the certificates or other instruments delivered in connection with or pursuant to this Agreement or any other Transaction
Document shall be considered to have been relied upon by the Secured Parties and the other Secured Parties and shall survive the
execution and delivery of the Transaction Documents and the making of any Loans, regardless of any investigation made by any such
other party or on its behalf and notwithstanding that the Secured Parties may have had notice or knowledge of any Default or incorrect
representation or warranty at the time any credit is extended hereunder, and shall continue in full force and effect as long as
the principal of or any accrued interest on any Loan or any fee or any other amount payable under this Agreement is outstanding
and unpaid. The provisions of Sections 12, 13, 14, 15, 16, 17, 18, and 19
shall survive and remain in full force and effect regardless of the consummation of the transactions contemplated hereby,
the repayment of the Loans, or the termination of this Agreement or any provision hereof.

 

19. Counterparts;
Integration; Effectiveness. This Agreement may be executed in counterparts (and by different parties hereto in different counterparts),
each of which shall constitute an original, but all of which when taken together shall constitute a single contract. This Agreement
and the other Transaction Documents constitute the entire contract among the parties relating to the subject matter hereof and
supersede any and all previous agreements and understandings, oral or written, relating to the subject matter hereof. This Agreement
shall become effective when it shall have been executed by the Debtor and the Secured Parties. Delivery of an executed counterpart
of a signature page of this Agreement by facsimile or other electronic transmission (i.e. a “pdf” or “tif”
document) shall be effective as delivery of a manually executed counterpart of this Agreement.

 

Signature
pages follow

    	 	-7-	 

     

    

 

IN
WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date and year first above written.

 

	 	DEBTOR:

	 	 
	 	EVO
    TRANSPORTATION & ENERGY SERVICES, INC.
	 	 	 
	 	By	/s/
John P. Yeros

	 	 	Name:
John P. Yeros

	 	 	Title:
    Chief Executive Officer

 

	 	SECURED
    PARTY:
	 	 
	 	DAN
    THOMPSON II LLC
	 	 	 
	 	By
	/s/
    Dan Thompson
	 	 	Name:
Dan Thompson

	 	 	Title:
    President

 

Signature Page to Security Agreement

     

     

    

 

Exhibit
A

 

Debtor
Information

 

	Legal Name	 	Jurisdiction of Organization	 	Chief Executive Office	 	Organizational Identification Number	 	Federal Employer Identification
    Number
	EVO Transportation & Energy Services, Inc.	 	Delaware	 	8285 West Lake Pleasant Parkway
Peoria, AZ 85382 
	 	4888415	 	37-1615850

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