Document:

Exhibit 4.3

 

NEITHER THIS WARRANT, NOR THE SECURITIES ISSUABLE UPON EXERCISE
OF THIS WARRANT (COLLECTIVELY, THE “SECURITIES”), HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED
(THE “SECURITIES ACT”), OR UNDER ANY STATE SECURITIES OR BLUE SKY LAWS. THE SECURITIES ARE SUBJECT TO RESTRICTIONS
ON TRANSFERABILITY AND RESALE AND MAY NOT BE OFFERED, SOLD, PLEDGED, HYPOTHECATED OR OTHERWISE TRANSFERRED EXCEPT AS PERMITTED
UNDER THE SECURITIES ACT AND APPLICABLE STATE SECURITIES OR BLUE SKY LAWS, PURSUANT TO REGISTRATION OR EXEMPTION THEREFROM. THE
COMPANY MAY REQUIRE AN OPINION OF COUNSEL IN FORM AND SUBSTANCE REASONABLY SATISFACTORY TO THE COMPANY TO THE EFFECT THAT ANY PROPOSED
TRANSFER IS IN COMPLIANCE WITH THE SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES OR BLUE SKY LAWS. THIS WARRANT IS SUBJECT
TO THE TRANSFER RESTRICTIONS SET FORTH HEREIN.

 

AQUA METALS, INC.

 

Warrant
to Purchase Common Stock

 

Warrant No.: 2016-2

 

Date of Issuance: May 24, 2016 (“Issuance Date”)

 

Aqua Metals, Inc., a Delaware corporation
(the “Company”), certifies that, for good and valuable consideration, the receipt and sufficiency of which are
acknowledged, Interstate Emerging Investments, LLC, a Delaware limited liability company, the registered holder hereof or its permitted
assigns (the “Holder”), is entitled, subject to the terms set forth below, to purchase from the Company, at
the Exercise Price (as defined below) then in effect, upon surrender of this Warrant to Purchase Common Stock (including any Warrants
to Purchase Common Stock issued in exchange, transfer or replacement hereof, the “Warrant”), at any time on
or after November 23, 2016 (the “Exercisability Date”), but not after 6:30 p.m., New York Time, on the Expiration
Date (as defined below), 1,605,131 fully paid and nonassessable shares of Common Stock (as defined below) (the “Warrant
Shares”).   The number of Warrant Shares purchasable upon exercise of this Warrant and the Exercise Price shall
be subject to adjustment from time to time as described herein. Except as otherwise defined herein, capitalized terms in this Warrant
shall have the meanings set forth in Section 17.

 

1.             EXERCISE
OF WARRANT.

 

(a)          Mechanics
of Exercise.  Subject to the terms and conditions hereof (including, without limitation, the limitations set forth
in Section 1(c)), this Warrant may be exercised by the Holder on any day on or after the Exercisability Date, in whole or in part
(but not as to fractional shares), by delivery of a written notice, in the form attached hereto as Exhibit A (the “Exercise
Notice”), of the Holder’s election to exercise this Warrant. The Holder may pay the Exercise Price in one of the
following manners:

 

(i)          Cash
Exercise. The Holder may make payment to the Company of an amount equal to the applicable Exercise Price multiplied by the
number of Warrant Shares as to which this Warrant is being exercised (the “Aggregate Exercise Price”) in cash
via wire transfer of immediately available funds (a “Cash Exercise”).  

 

(ii)         Cashless
Exercise. If an Exercise Notice is delivered at a time when a registration statement permitting the Holder to resell the Warrant
Shares is not then effective or the prospectus forming a part thereof is not then available to the Holder for the resale of the
Warrant Shares, then the Holder may notify the Company in an Exercise Notice of its election to utilize cashless exercise, in which
event the Company shall issue to the Holder the number of Warrant Shares determined as follows (a “Cashless Exercise”):

 

     

     

    

 

X = Y [(A-B)/A]

 

where:

 

X = the number of Warrant Shares
to be issued to the Holder.

 

Y = the number of Warrant Shares
with respect to which this Warrant is being exercised.

 

A = the average of the closing
prices for the five Trading Days immediately prior to (but not including) the Exercise Date.

 

B = the Exercise Price.

 

The term “Exercise
Delivery Documents” as used herein refers to (i) in the case of a Cash Exercise, the Exercise Notice and accompanying
payment; and (ii) in the case of a Cashless Exercise, the Exercise Notice.

 

For purposes
of Rule 144 promulgated under the Securities Act, it is intended, understood and acknowledged that the Warrant Shares issued in
a Cashless Exercise transaction shall be deemed to have been acquired by the Holder, and the holding period for the Warrant Shares
shall be deemed to have commenced, on the Issuance Date.

 

The Holder shall not
be required to surrender this Warrant in order to effect an exercise hereunder; provided, however, that in the event
that this Warrant is exercised in full or for the remaining unexercised portion hereof, the Holder shall deliver this Warrant to
the Company for cancellation within a reasonable time after such exercise.  Any Warrant Shares issued hereunder shall
be in uncertificated, book-entry form, as permitted by the Company’s Bylaws and the Delaware General Corporation Law. On
or before the third Trading Day following the date on which the Company has received all of the Exercise Delivery Documents (the
“Share Delivery Date”), the Company shall deliver (or cause the Company’s transfer agent for the Common
Stock (the “Transfer Agent”) to deliver) to the Holder a screen shot of the Transfer Agent’s records or
such other instrument as the Transfer Agent shall typically issue in such circumstance indicating the registration of transfer
to the Holder by book-entry of the number of shares of Common Stock issuable to the Holder upon such exercise of the Warrant (an
“Ownership Notice”). The Transfer Agent’s records and any Ownership Notices shall contain the legend set
forth in Section 16 (or an equivalent notation reflecting the transfer restrictions described in such legend) until such time as
the legend may be removed in accordance with Section 16. Upon delivery of the Exercise Notice, the Holder shall be deemed for all
corporate purposes to have become the holder of record of the Warrant Shares with respect to which this Warrant has been exercised,
irrespective of the date of delivery of the Warrant Shares to such Holder.  If this Warrant is submitted in connection
with any exercise pursuant to this Section 1(a) and the number of Warrant Shares represented by this Warrant submitted for exercise
is greater than the number of Warrant Shares being acquired upon an exercise, then the Company shall as soon as practicable and
in no event later than three Trading Days after any such submission and at its own expense, issue a new Warrant (in accordance
with Section 7(e)) representing the right to purchase the number of Warrant Shares purchasable immediately prior to such exercise
under this Warrant, less the number of Warrant Shares with respect to which this Warrant has been and/or is being exercised.  The
Company shall pay any and all taxes and other expenses of the Company (including overnight delivery charges) that may be payable
with respect to the issuance and delivery of Warrant Shares upon exercise of this Warrant; provided, however, that
the Company shall not be required to pay any tax which may be payable in respect of any transfer involved in the registration of
any certificates for Warrants in a name other than that of the Holder or an Affiliate thereof.  The Holder shall be responsible
for all other tax liability that may arise as a result of holding or transferring this Warrant or receiving Warrant Shares upon
exercise hereof.

 

(b)          Exercise
Price.  For purposes of this Warrant, “Exercise Price” means the greater of (i) $9.00 per share
of Common Stock or (ii) the consolidated closing bid price per share of Common Stock as of 4:00 pm Eastern Standard Time on the
Issuance Date, plus $0.125; in each case subject to adjustment as provided herein.

 

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(c)          Limitations
on Exercises.  Notwithstanding anything contained elsewhere in this Warrant to the contrary, the Company shall not
effect any exercise of this Warrant, and the Holder shall not have the right to exercise any portion of this Warrant, to the extent
that after giving effect to such issuance after exercise as set forth on the applicable Exercise Notice, the Holder (together with
the Holder’s Affiliates, and any other persons acting as a group together with the Holder or any of the Holder’s Affiliates),
would beneficially own in excess of 19.99% of the outstanding shares of Common Stock (the maximum amount of shares of Common Stock
issuable in compliance with the foregoing limitation, the “Beneficial Ownership Cap”). For purposes of the foregoing
sentence, the number of shares of Common Stock beneficially owned by the Holder and its Affiliates shall include the number of
shares of Common Stock issuable upon exercise of this Warrant with respect to which such determination is being made, but shall
exclude the number of shares of Common Stock that would be issuable upon (i) exercise of the remaining, nonexercised portion of
this Warrant beneficially owned by the Holder or any of its Affiliates and (ii) exercise or conversion of the unexercised or nonconverted
portion of any other securities of the Company (including, without limitation, the Two Year Warrant, the Convertible Term Note
any other securities of the Company or its subsidiaries which would entitle the holder thereof to acquire at any time shares of
Common Stock) subject to a limitation on conversion or exercise analogous to the limitation contained herein beneficially owned
by the Holder or any of its Affiliates. Except as set forth in the preceding sentence, for purposes of this Section 1(c), beneficial
ownership shall be calculated in accordance with Section 13(d) of the Securities Exchange Act of 1934, as amended (the “Exchange
Act”), and the rules and regulations promulgated thereunder. In addition, for purposes of this Section 1(c), “group”
has the meaning set forth in Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder. Notwithstanding
anything contained elsewhere in this Warrant to the contrary, the Company shall not effect any exercise of this Warrant, and the
Holder shall not have the right to exercise any portion of this Warrant, to the extent that after giving effect to such issuance
after exercise as set forth on the applicable Exercise Notice, the cumulative aggregate of all exercises or conversions as a whole
under this Warrant, the Two Year Warrant and the Convertible Term Note, as the case may be, together with the issuance of 702,247
shares of Common Stock pursuant to the Stock Purchase Agreement, would result in the issuance of shares of Common Stock (including,
for the avoidance of doubt, any Warrant Shares issued under this Warrant, the Two Year Warrant and the Convertible Term Note) that
(i) have, or will have upon issuance, voting power in excess of 19.99% of the voting power of the Common Stock outstanding immediately
before the Issuance Date or (ii) represent, or will represent upon issuance, in excess of 19.99% of the number of shares of Common
Stock outstanding immediately before the Issuance Date (the maximum amount of shares of Common Stock issuable in compliance with
the foregoing limitations (i) and (ii), the “Total Issuance Cap”). The term “Cap” as used
herein refers to either the Beneficial Ownership Cap or the Total Issuance Cap, whichever may be applicable. To the extent that
any Beneficial Ownership Cap contained in this Section 1(c) applies, the determination of whether this Warrant is exercisable (in
relation to other securities owned by the Holder together with any Affiliates) and of which portion of this Warrant is exercisable
shall be in the sole discretion of the Holder, and the submission of an Exercise Notice shall be deemed to be the Holder’s
determination of whether this Warrant is exercisable (in relation to other securities owned by the Holder together with any Affiliates)
and of which portion of this Warrant is exercisable. For purposes of this Section 1(c), in determining the number of outstanding
shares of Common Stock, the Holder may rely on the number of outstanding shares of Common Stock as reflected in (i) the Company’s
most recent Form 10-K, Form 10-Q, Current Report on Form 8-K or other public filing with the United States Securities and
Exchange Commission, as the case may be, (ii) a more recent public announcement by the Company or (iii) a more recent notice by
the Company or the Transfer Agent to the Holder setting forth the number of shares of Common Stock then outstanding. Upon the request
of the Holder, the Company shall promptly, and in any event within one Trading Day of such request, confirm to the Holder the number
shares of Common Stock then outstanding.

 

(d)          No
Fractional Shares or Scrip.  No fractional shares or scrip representing fractional shares shall be issued upon the
exercise of this Warrant.  As to any fraction of a share that the Holder would otherwise be entitled to purchase upon
such exercise, the Company shall round up to the next whole share.

 

2.             ADJUSTMENT
OF EXERCISE PRICE AND NUMBER OF WARRANT SHARES.  The Exercise Price and the number of Warrant Shares shall be adjusted
from time to time as follows:

 

(a)          Adjustment
upon Subdivision or Combination of Shares of Common Stock.  If the Company at any time on or after the Issuance Date
subdivides (by any stock split, stock dividend, recapitalization or otherwise) one or more classes of its outstanding shares of
Common Stock into a greater number of shares, the Exercise Price in effect immediately prior to such subdivision will be proportionately
reduced and the number of Warrant Shares will be proportionately increased.  If the Company at any time on or after the
Issuance Date combines (by combination, reverse stock split or otherwise) one or more classes of its outstanding shares of Common
Stock into a smaller number of shares, the Exercise Price in effect immediately prior to such combination will be proportionately
increased and the number of Warrant Shares will be proportionately decreased.  Any adjustment under this Section 2(a)
shall become effective at the close of business on the date the subdivision or combination becomes effective.

 

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(b)          Par
Value. Notwithstanding anything to the contrary in this Warrant, in no event shall the Exercise Price be reduced below the
par value of the Company’s Common Stock.

 

3.             FUNDAMENTAL
TRANSACTIONS.

 

(a)          If,
at any time while this Warrant is outstanding, there occurs any Fundamental Transaction (including, without limitation, one pursuant
to which holders of shares of Common Stock are entitled to receive securities or other assets with respect to or in exchange for
shares of Common Stock), then the Holder shall have the right thereafter to receive, upon exercise of this Warrant, in lieu of
the shares of the Common Stock (or other securities, cash assets or other property purchasable upon the exercise of the Warrant
prior to such Fundamental Transaction), the same amount and kind of shares of stock, securities, cash, assets or any other property
whatsoever (including warrants or other purchase or subscription rights) that the Holder would have been entitled to receive upon
the consummation of such Fundamental Transaction had this Warrant been exercised immediately prior to the record date for such
Fundamental Transaction, as adjusted in accordance with the provisions of this Warrant. Upon the occurrence of any Fundamental
Transaction, the Successor Entity, if any, shall succeed to, and be substituted for (so that from and after the date of such Fundamental
Transaction, the provisions of this Warrant referring to the “Company” shall refer instead to the Successor Entity),
and may exercise every right and power of the Company and shall assume all of the obligations of the Company under this Warrant
with the same effect as if such Successor Entity had been named as the Company herein. The provisions of this Section shall apply
similarly and equally to successive Fundamental Transactions and any adjustment under this Section 3 shall be without duplication
for any adjustment or distribution made under Section 2.

 

(b)          In
the event that the Company at any time grants, issues or sells any Options, Convertible Securities or rights to purchase stock,
warrants, securities or other property pro rata to the record holders of any class of shares of Common Stock (the “Purchase
Rights”) the Holder will be entitled to acquire, upon the terms applicable to such Purchase Rights, the aggregate Purchase
Rights which the Holder could have acquired if the Holder had held the number of shares of Common Stock acquirable upon complete
exercise of this Warrant (without regard to any limitations on the exercise of this Warrant), immediately before the record date
for the grant, issuance or sale of such Purchase Rights, or, if no such record date is established, the date as of which the record
holders of shares of Common Stock are determined for the grant, issuance or sale of such Purchase Rights.

 

4.             RESERVATION
OF WARRANT SHARES.  The Company covenants that it will at all times reserve and keep available out of the aggregate
of its authorized but unissued and otherwise unreserved Common Stock, solely for the purpose of enabling it to issue Warrant Shares
upon exercise of this Warrant as herein provided, the number of shares of Common Stock which are then issuable and deliverable
upon the exercise of this entire Warrant, free from preemptive or any other contingent purchase rights of Persons other than the
Holder (taking into account the adjustments and restrictions in Sections 2 and 3).  Such reservation shall comply with
the provisions of Section 1.  The Company covenants that all shares of Common Stock so issuable and deliverable shall,
upon issuance and the payment of the applicable Exercise Price in accordance with the terms hereof, be duly and validly authorized,
issued and fully paid and nonassessable.  The Company will take all such actions as may be necessary to assure that such
shares of Common Stock may be issued as provided herein without violation of any applicable law or regulation, or of any requirements
of any securities exchange or automated quotation system upon which the Common Stock may be listed. If, notwithstanding the foregoing,
and not in limitation thereof, at any time while this Warrant remains outstanding the Company does not have a sufficient number
of authorized and unreserved shares of Common Stock to satisfy its obligation to reserve for issuance upon exercise of this Warrant
at least a number of shares of Common Stock equal to the maximum number of shares of Common Stock as shall from time to time be
necessary to effect the exercise of all this Warrant (without regard to any limitations on exercise contained herein) (the “Required
Reserve Amount”) (an “Authorized Share Failure”), then the Company shall immediately take all action
necessary to increase the Company’s authorized shares of Common Stock to an amount sufficient to allow the Company to reserve
the Required Reserve Amount for this entire Warrant. Without limiting the generality of the foregoing sentence, as soon as practicable
after the date of the occurrence of an Authorized Share Failure, but in no event later than sixty (60) days after the occurrence
of such Authorized Share Failure, the Company shall hold a meeting of its stockholders for the approval of an increase in the number
of authorized shares of Common Stock. In connection with such meeting, the Company shall provide each stockholder with a proxy
statement and shall use its best efforts to solicit its stockholders’ approval of such increase in authorized shares of Common
Stock and to cause its board of directors to recommend to the stockholders that they approve such proposal.

 

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5.             WARRANT
HOLDER NOT DEEMED A STOCKHOLDER; LIMITATION ON LIABILITY.  Except as otherwise specifically provided herein, the
Holder, solely in such Person’s capacity as a holder of this Warrant, shall not be entitled to vote or receive dividends
or be deemed the holder of share capital of the Company for any purpose, nor shall anything contained in this Warrant be construed
to confer upon the Holder, solely in such Person’s capacity as the Holder of this Warrant, any of the rights of a stockholder
of the Company or any right to vote, give or withhold consent to any corporate action (whether any reorganization, issue of stock,
reclassification of stock, consolidation, merger, conveyance or otherwise), receive notice of meetings, receive dividends or subscription
rights, or otherwise, prior to the issuance to the Holder of the Warrant Shares which such Person is then entitled to receive upon
the due exercise of this Warrant.  In addition, nothing contained in this Warrant shall be construed as imposing any
liabilities on the Holder to purchase any securities (upon exercise of this Warrant or otherwise) or as a stockholder of the Company,
whether such liabilities are asserted by the Company or by creditors of the Company.

 

6.             REGISTRATION
AND REISSUANCE OF WARRANTS.

 

(a)          Registration
of Warrant.  The Company shall register this Warrant, upon the records to be maintained by the Company for that purpose
(the “Warrant Register”), in the name of the record Holder hereof from time to time.  The Company
may deem and treat the registered Holder of this Warrant as the absolute owner hereof for the purpose of any exercise hereof or
any distribution to the Holder, and for all other purposes, absent actual notice to the contrary.  The Company shall
also register any transfer, exchange, reissuance or cancellation of any portion of this Warrant in the Warrant Register.

 

(b)          Transfer
of Warrant.  This Warrant may not be offered for sale, sold, transferred or assigned without the consent of the Company,
and only in accordance with applicable securities laws.  Subject to applicable securities laws, if this Warrant is to
be transferred, the Holder shall surrender this Warrant to the Company together with all applicable transfer taxes, whereupon the
Company will forthwith issue and deliver upon the order of the Holder a new Warrant (in accordance with Section 7(e)), registered
as the Holder may request, representing the right to purchase the number of Warrant Shares being transferred by the Holder and,
if less than the total number of Warrant Shares then underlying this Warrant is being transferred, a new Warrant (in accordance
with Section 7(e)) to the Holder representing the right to purchase the number of Warrant Shares not being transferred.

 

(c)          Lost,
Stolen or Mutilated Warrant.  Upon receipt by the Company of evidence reasonably satisfactory to the Company of the
loss, theft, destruction or mutilation of this Warrant, and, in the case of loss, theft or destruction, of any indemnification
undertaking by the Holder to the Company in customary form or the provision of reasonable security by the Holder to the Company
and, in the case of mutilation, upon surrender and cancellation of this Warrant, the Company shall execute and deliver to the Holder
a new Warrant (in accordance with Section 7(e)) representing the right to purchase the Warrant Shares then underlying this Warrant.

 

(d)          Exchangeable
for Multiple Warrants.  This Warrant is exchangeable, upon the surrender hereof by the Holder at the principal office
of the Company together with all applicable transfer taxes, for a new Warrant or Warrants (in accordance with Section 7(e)) representing
in the aggregate the right to purchase the number of Warrant Shares then underlying this Warrant, and each such new Warrant will
represent the right to purchase such portion of such Warrant Shares as is designated by the Holder at the time of such surrender;
provided, however, that the Company shall not be required to issue Warrants for fractional shares of Common Stock
hereunder.

 

    	 	5	 

     

    

 

(e)          Issuance
of New Warrants.  Whenever the Company is required to issue a new Warrant pursuant to the terms of this Warrant,
such new Warrant shall (i) be of like tenor with this Warrant, (ii) represent, as indicated on the face of such new Warrant, the
right to purchase the Warrant Shares then underlying this Warrant (or in the case of a new Warrant being issued pursuant to Section
7(b) or Section 7(c), the Warrant Shares designated by the Holder which, when added to the number of shares of Common Stock underlying
the other new Warrants issued in connection with such issuance, does not exceed the number of Warrant Shares then underlying this
Warrant), (iii) have an issuance date, as indicated on the face of such new Warrant which is the same as the Issuance Date and
(iv) have the same rights and conditions as this Warrant.

 

7.             NOTICES.  Whenever
notice is required to be given under this Warrant, unless otherwise provided herein, such notice shall be given in accordance with
the information set forth in the Warrant Register.  The Company shall provide the Holder with prompt written notice of
all actions taken pursuant to this Warrant, including, in reasonable detail, a description of such action and the reason or reasons
therefor.  Without limiting the generality of the foregoing, the Company will give written notice to the Holder immediately
upon any adjustment of the Exercise Price, setting forth in reasonable detail, and certifying, the calculation of such adjustment
and; provided, that in each case, such information shall be made known to the public prior to or in conjunction with such
notice being provided to the Holder.

 

8.             NONCIRCUMVENTION.  The
Company hereby covenants and agrees that the Company will not, by amendment of its Certificate of Incorporation, Bylaws or through
any reorganization, transfer of assets, consolidation, merger, scheme of arrangement, dissolution, issue or sale of securities
or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this Warrant, and will
at all times in good faith carry out all the provisions of this Warrant and take all action as may be required to protect the rights
of the Holder.  Without limiting the generality of the foregoing, the Company (i) shall not increase the par value
of any shares of Common Stock receivable upon the exercise of this Warrant above the Exercise Price then in effect, (ii) shall
use all reasonable efforts to take all such actions as may be necessary or appropriate in order that the Company may validly and
legally issue fully paid and nonassessable shares of Common Stock upon the exercise of this Warrant and (iii) shall, so long as
any of the Warrants are outstanding, take all action necessary to reserve and keep available out of its authorized and unissued
shares of Common Stock, solely for the purpose of effecting the exercise of the Warrants, the Required Reserve Amount. If the Company
is restricted by the Principal Market from issuing and delivering the lesser of the (i) Beneficial Ownership Cap or (ii) Total
Issuance Cap, then the Company shall use its best efforts to obtain the approval of the requisite holders of the issued and outstanding
voting capital stock of the Company required by the listing requirements of the Principal Market.

 

9.             AMENDMENT
AND WAIVER.  Except as otherwise provided herein, the provisions of this Warrant may be amended and the Company may
take any action herein prohibited, or omit to perform any act herein required to be performed by it, only if the Company has obtained
the written consent of the Holder.  

 

10.           GOVERNING
LAW.  This Warrant shall be governed by and construed and enforced in accordance with, and all questions concerning
the construction, validity, interpretation and performance of this Warrant shall be governed by, the internal laws of the State
of Delaware, without giving effect to any choice of law or conflict of law provision or rule (whether of the State of Delaware
or any other jurisdictions) that would cause the application of the laws of any jurisdictions other than the State of Delaware.

 

11.           CONSTRUCTION;
HEADINGS.  This Warrant shall be deemed to be jointly drafted by the Company and the Holder and shall not be construed
against any Person as the drafter hereof.  The headings of this Warrant are for convenience of reference and shall not
form part of, or affect the interpretation of, this Warrant.

 

12.           DISPUTE
RESOLUTION.  In the case of a dispute as to the determination of the Exercise Price or the arithmetic calculation
of the Warrant Shares, the Company shall submit the disputed determinations or arithmetic calculations via facsimile within two
Trading Days of receipt of the Exercise Notice giving rise to such dispute, as the case may be, to the Holder.  If the
Holder and the Company are unable to agree upon such determination or calculation of the Exercise Price or the Warrant Shares within
five Trading Days of such disputed determination or arithmetic calculation being submitted to the Holder, then the Company shall,
within two Trading Days submit via facsimile the disputed determination of the Exercise Price or the disputed arithmetic calculation
of the Warrant Shares to an independent, outside accountant.  The Company shall cause the accountant to perform the determinations
or calculations and notify the Company and the Holder of the results no later than 10 Trading Days from the time it receives the
disputed determinations or calculations.  Such accountant’s determination or calculation, as the case may be, shall
be binding upon all parties absent demonstrable error.  The expenses of the accountant will be borne by the Company unless
the accountant determines that the Holder failed to act in good faith in its determination of the Exercise Price or the arithmetic
calculation of the Warrant Shares, in which case the expenses of the accountant will be borne by the Holder.

 

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13.           REMEDIES,
OTHER OBLIGATIONS, BREACHES AND INJUNCTIVE RELIEF.  The remedies provided in this Warrant shall be cumulative and
in addition to all other remedies available under this Warrant, at law or in equity (including a decree of specific performance
and/or other injunctive relief), and nothing herein shall limit the right of the Holder to pursue actual damages for any failure
by the Company to comply with the terms of this Warrant.  The Company acknowledges that a breach by it of its obligations
hereunder may cause irreparable harm to the Holder and that the remedy at law for any such breach may be inadequate.  The
Company therefore agrees that, in the event of any such breach or threatened breach, the holder of this Warrant shall be entitled,
in addition to all other available remedies, to seek an injunction restraining any breach.  

 

14.           SUCCESSORS
AND ASSIGNS.  This Warrant shall bind and inure to the benefit of and be enforceable by the Company and the Holder
and their respective permitted successors and assigns.

 

15.           LEGENDS.
The Holder understands that the Warrant and the Warrant Shares issuable and deliverable upon exercise of this Warrant have not
been registered pursuant to the provisions of the Securities Act, and the Warrant or Warrant Shares will bear the following restrictive
legend (in addition to any legend required under applicable state securities laws):

 

THESE SECURITIES HAVE
NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR UNDER ANY STATE SECURITIES OR BLUE SKY LAWS. THE SECURITIES
ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE AND MAY NOT BE OFFERED, SOLD, PLEDGED, HYPOTHECATED OR OTHERWISE TRANSFERRED
EXCEPT AS PERMITTED UNDER THE SECURITIES ACT AND APPLICABLE STATE SECURITIES OR BLUE SKY LAWS, PURSUANT TO REGISTRATION OR EXEMPTION
THEREFROM. THE COMPANY MAY REQUIRE AN OPINION OF COUNSEL IN FORM AND SUBSTANCE REASONABLY SATISFACTORY TO THE COMPANY TO THE EFFECT
THAT ANY PROPOSED TRANSFER IS IN COMPLIANCE WITH THE SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES OR BLUE SKY LAWS.

 

The Company, at its sole
cost, shall remove the legend described in Section 15 (or instruct the Transfer Agent to so remove such legend) from the certificates
evidencing the Warrant and Warrant Shares, as applicable, if (A) such Warrant Shares are sold pursuant to an effective registration
statement under the Securities Act, (B) such Warrant or Warrant Shares, as applicable, are sold or transferred pursuant to Rule
144 (if the transferor is not an Affiliate of the Company), or (C) such Warrant or Warrant Shares, as applicable, are eligible
for sale under Rule 144, without the requirement for the Company to be in compliance with the current public information required
under Rule 144(c)(1) (or Rule 144(i)(2), if applicable) as to such securities and without volume or manner of sale restrictions.
In connection with a sale of the Warrant or Warrant Shares, as applicable, by any Holder in reliance on Rule 144, such Holder or
its broker shall deliver to the Transfer Agent and the Company a customary broker representation letter providing to the transfer
agent and the Company any information the Company deems reasonably necessary to determine that the sale of the Warrant or Warrant
Shares, as applicable, is made in compliance with Rule 144, including, where and as may be appropriate, a certification that such
Holder is not an Affiliate of the Company and regarding the length of time the Warrant or Warrant Shares, as applicable, have been
held. Upon receipt of such representation letter, the Company shall promptly remove the legend refereed to in this Section 15 from
the Warrant or direct its Transfer Agent to remove the legend referred to in this Section 15 from the Warrant Shares from the appropriate
book-entry accounts maintained by the Transfer Agent, in each case within two (2) Business Days, and the Company shall bear all
costs associated therewith. If a Holder is not an Affiliate of the Company and has held the Warrant or Warrant Shares, as applicable,
for at least one year, if the book-entry account of such Warrant Shares or certificate for the Warrant still bears the legend referred
to in this Section 15, the Company agrees, upon request of Purchaser, to take all steps necessary to effect the removal of the
legend described in this Section 15 within two (2) Business Days from the appropriate book-entry accounts maintained by the Transfer
Agent or the Warrant, and the Company shall bear all costs associated therewith, regardless of whether the request is made in connection
with a sale or otherwise, so long the Holder provides to the Company any information the Company deems reasonably necessary to
determine that the legend is no longer required under the Securities Act or applicable state laws, including (if there is no such
registration statement), where and as may be appropriate, a certification that such Holder is not an Affiliate of the Company and
regarding the length of time the Warrant or Warrant Shares, as applicable, have been held.

 

    	 	7	 

     

    

 

16.           CERTAIN
DEFINITIONS.  For purposes of this Warrant, the following terms shall have the following meanings:

 

(a)          “Affiliate”
means, with respect to any Person, any other Person that directly or indirectly through one or more intermediaries controls, is
controlled by or is under common control with, the Person in question. As used herein, the term “control” means the
possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a Person, whether
through ownership of voting securities, by contract or otherwise.

 

(b)          “Bloomberg”
means Bloomberg LP or, if Bloomberg ceases to provide quotations for the Common Stock, such other nationally recognized quotation
service as the Company shall select.

 

(c)          “Business
Day” means any day except Saturday, Sunday or any other day on which commercial banks located in Dallas, Texas are authorized
or required by Law to be closed for business.

 

(d)          “Common
Stock” means (i) the Company’s shares of Common Stock, $0.001 par value per share, and (ii) any share capital into
which such Common Stock shall have been changed or any share capital resulting from a reclassification of such Common Stock.

 

(e)          “Convertible
Term Note” means that certain convertible promissory note, dated May 23, 2016, by and between the Company and the Holder,
and all renewals, replacements, amendments, modifications and extensions thereof, such note issued pursuant to Section 2.1 of that
certain Credit Agreement, dated May 18, 2016, by and between the Company and the Holder.

 

(f)          “Eligible
Market” means The New York Stock Exchange, Inc., the NYSE MKT, The Nasdaq Stock Market, the NASDAQ Global Select Market
or the Nasdaq Capital Market.

 

(g)          “Expiration
Date” means the date 36 months after the Issuance Date or, if such date falls on a day other than a Trading Day or on
which trading does not take place on the Principal Market, or, if the Principal Market is not the principal trading market for
the Common Stock, then on the principal securities exchange or securities market on which the Common Stock is then traded (a “Holiday”),
the next date that is not a Holiday.  

 

(h)          “Fundamental
Transaction” means that, after the Issuance Date, the Company shall, directly or indirectly, in one or more related transactions,
(i) consolidate or merge with or into another Person, (ii) sell, assign, transfer, convey or otherwise dispose of all or substantially
all of the properties or assets of the Company to another Person, (iii) allow another Person to make a purchase, tender or exchange
offer that is accepted by the holders of more than 50% of the outstanding shares of Common Stock (not including any shares of Common
Stock held by the Person or Persons making or party to, or associated or affiliated with the Persons making or party to, such purchase,
tender or exchange offer), (iv) consummate a stock purchase agreement or other business combination (including, without limitation,
a reorganization, recapitalization, spin-off or scheme of arrangement) with another Person whereby such other Person acquires more
than 50% of the outstanding shares of Common Stock (not including any shares of Common Stock held by the other Person or other
Persons making or party to, or associated or affiliated with the other Persons making or party to, such stock purchase agreement
or other business combination immediately prior to such stock purchase or business combination), (v) reorganize, recapitalize or
reclassify its Common Stock, or (vi) any “person” or “group” (as these terms are used for purposes of Sections
13(d) and 14(d) of the Exchange Act), other than the Holder and its Affiliates or any Related Party thereof, is or shall become
the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of 50% of the aggregate
ordinary voting power represented by issued and outstanding Common Stock (excluding any debt securities convertible into equity)
normally entitled to vote in the election of directors (“Voting Stock”) of the Company (or its successor by merger,
consolidation or purchase of all or substantially all of its assets) (for purposes of this clause, such person or group shall be
deemed to beneficially own any Voting Stock held by a Parent Entity) or 50% of the aggregate economic interests in the Company
(or its successor by merger, consolidation or purchase of all or substantially all of its assets).

 

    	 	8	 

     

    

 

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

 

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

 

(k)          “Principal
Market” means the Nasdaq Capital Market; provided, however, that in the event that the Company’s
Common Stock is ever listed or traded on the Nasdaq Global Market, the Nasdaq Global Select Market, the New York Stock Exchange,
the NYSE Amex, or the OTC Bulletin Board (it being understood that as used herein “OTC Bulletin Board” shall also mean
any successor or comparable market quotation system or exchange to the OTC Bulletin Board such as the OTCQB operated by the OTC
Markets Group, Inc.), then the “Principal Market” shall mean such other market or exchange on which the Company’s
Common Stock is then listed or traded.

 

(l)          “Related
Party” means, with respect to any specified Person, such Person’s affiliates and the respective directors, officers,
employees, agents and advisors of such Person and such Person’s affiliates.

 

(m)          “Stock
Purchase Agreement” means that certain Stock Purchase Agreement, dated May 18, 2016, by and between the Company and the
Holder.

 

(n)          “Successor
Entity” means the Person formed by, resulting from or surviving any Fundamental Transaction or the Person with which
such Fundamental Transaction shall have been entered into.

 

(o)          “Trading
Day” means any day on which the Common Stock is traded on the Principal Market, or, if the Principal Market is not the
principal trading market for the Common Stock, then on the principal securities exchange or securities market on which the Common
Stock is then traded including any day on which the Principal Market is open for trading for a period of time less than the customary
time.

 

(p)          “Two
Year Warrant” means that certain Two Year Warrant to purchase shares of Common Stock (Warrant No. 2016-1), dated the
Issuance Date, by and between the Company and the Holder.

 

17.           INVESTOR
RIGHTS AGREEMENT. This Warrant and the Warrant Shares issuable upon exercise hereof shall be subject to the terms and conditions
of that certain Investor Rights Agreement, dated as of the date hereof and the Holder shall be entitled to all of the rights and
subject to all of the obligations under such Investor Rights Agreement. The Warrant Shares shall be deemed “Registrable Securities”
as defined in such Investor Rights Agreement. Notwithstanding any other provision of this Agreement, this Warrant shall not be
exercisable at any time during which Holder is in material violation of Section 5.1 of the Investor Rights Agreement.

 

[Signature Page Follows]

 

    	 	9	 

     

    

 

IN WITNESS WHEREOF,
the Company has caused this Warrant to Purchase Common Stock to be duly executed as of the Issuance Date set out above.

 

	 	AQUA METALS, INC.
	 	 	 	 
	 	 	By:	/s/ Stephen R. Clarke
	 	 	 	Stephen R. Clarke 
	 	 	 	President and Chief Executive Officer

 

     

     

    

 

EXHIBIT A

 

EXERCISE NOTICE

 

TO BE EXECUTED BY THE REGISTERED HOLDER
TO EXERCISE THIS

WARRANT TO PURCHASE COMMON STOCK

 

AQUA METALS, INC.

 

The undersigned holder hereby exercises the right to purchase
_________________ of the shares of Common Stock (“Warrant Shares”) of Aqua Metals, Inc., a Delaware corporation
(the “Company”), evidenced by the attached Warrant to Purchase Common Stock (the “Warrant”).  Capitalized
terms used herein and not otherwise defined shall have the respective meanings set forth in the Warrant.

 

1.          Exercise
Price.  The Holder intends that payment of the Exercise Price shall be made as (check one):

 

		·	Cash Exercise under Section 1(a)(i).

 

		·	Cashless Exercise under Section 1(a)(ii).

 

2.          Cash
Exercise. If the Holder has elected a Cash Exercise, the Holder shall pay the sum of $______________ to the Company in accordance
with the terms of the Warrant.

 

3.          Delivery
of Warrant Shares.  The Company shall deliver to the holder __________ Warrant Shares in accordance with the terms
of the Warrant.

 

4.          Representations
and Warranties.  By its delivery of this Exercise Notice, the undersigned represents and warrants to the Company
that in giving effect to the exercise evidenced hereby the Holder will be in compliance with the provisions of Section 1(c) of
this Warrant to which this notice relates.

 

Date: _______________ __, ______

 

	 	 	 
	Name of Registered Holder	 	Name of Signatory

 

	By:	 	 
	 	Name:	 
	 	Title:	 

 

     

     

    

 

ACKNOWLEDGMENT

 

The Company hereby
acknowledges this Exercise Notice.

 

	 	AQUA METALS, INC.
	 	 	 	 
	 	 	By:	 
	 	 	 	Name: 
	 	 	 	Title:Exhibit 10.1

 

STOCK
PURCHASE AGREEMENT

 

by and between

 

AQUA
METALS, INC.

 

and

 

Interstate
Emerging Investments, LLC

 

dated as of

 

May 18, 2016

 

     

     

    

 

TABLE
OF CONTENTS

 

	Article I Definitions	1
	 	 
	Article II Purchase and
    Sale	7
	 	 	 
	Section 2.01	Purchase and Sale	7
	 	 	 
	Section 2.02	Transactions Effected at the Closing	8
	 	 	 
	Section 2.03	Closing	8
	 	 	 
	Section 2.04	Use of Proceeds	8
	 	 	 
	Article III Representations
    and Warranties of the Company	8
	 	 	 
	Section 3.01	Organization, Qualification and Authority of the Company	9
	 	 	 
	Section 3.02	Capitalization	9
	 	 	 
	Section 3.03	Subsidiaries	10
	 	 	 
	Section 3.04	SEC Documents	11
	 	 	 
	Section 3.05	No Defaults; Violations	11
	 	 	 
	Section 3.06	Consents	11
	 	 	 
	Section 3.07	No Conflicts, etc.	12
	 	 	 
	Section 3.08	Disclosure Controls	12
	 	 	 
	Section 3.09	Accounting Controls	12
	 	 	 
	Section 3.10	Financial Statements	13
	 	 	 
	Section 3.11	Independent Accountants	13
	 	 	 
	Section 3.12	Undisclosed Liabilities	13
	 	 	 
	Section 3.13	Absence of Certain Changes, Events and Conditions	14
	 	 	 
	Section 3.14	Disclosure of Agreements	15
	 	 	 
	Section 3.15	Title to Assets; Real Property	16
	 	 	 
	Section 3.16	Intellectual Property	16
	 	 	 
	Section 3.17	Insurance	17
	 	 	 
	Section 3.18	Legal Proceedings; Governmental Orders	17
	 	 	 
	Section 3.19	Possession of Licenses and Permits	17

 

    	i

     

    

 

	Section 3.20	Environmental Laws	18
	 	 	 
	Section 3.21	Employee Benefit Matters	18
	 	 	 
	Section 3.22	Employment Matters	20
	 	 	 
	Section 3.23	No Registration Required	21
	 	 	 
	Section 3.24	No Integration	21
	 	 	 
	Section 3.25	No Side Agreements	22
	 	 	 
	Section 3.26	NASDAQ Listing of Shares	22
	 	 	 
	Section 3.27	Taxes	22
	 	 	 
	Section 3.28	Books and Records	22
	 	 	 
	Section 3.29	Brokers	23
	 	 	 
	Section 3.30	Related Party Transactions	23
	 	 	 
	Section 3.31	Money Laundering Laws	23
	 	 	 
	Section 3.32	OFAC	23
	 	 	 
	Section 3.33	Investment Company Act	23
	 	 	 
	Section 3.34	Foreign Corrupt Practices Act	23
	 	 	 
	Section 3.35	Officer’s Certificate	24
	 	 	 
	Article IV Representations
    and Warranties of Purchaser	24
	 	 	 
	Section 4.01	Organization and Authority of Purchaser	24
	 	 	 
	Section 4.02	No Conflicts; Consents	25
	 	 	 
	Section 4.03	Investment Purpose	25
	 	 	 
	Section 4.04	Brokers	25
	 	 	 
	Section 4.05	Legend	25
	 	 	 
	Section 4.06	Accredited Investor Status	26
	 	 	 
	Section 4.07	SEC Documents	26
	 	 	 
	Article V Conditions to
    closing	26
	 	 	 
	Section 5.01	Conditions to Obligations of All Parties	26
	 	 	 
	Section 5.02	Conditions to Obligations of Purchaser	26
	 	 	 
	Section 5.03	Conditions to Obligations of the Company	28

 

    	ii

     

    

 

	Article VI Covenants	28
	 	 	 
	Section 6.01	Appointment of Director	28
	 	 	 
	Section 6.02	Taking of Necessary Action	29
	 	 	 
	Section 6.03	Supplemental Listing Application	29
	 	 	 
	Section 6.04	Further Assurances	29
	 	 	 
	Article VII Indemnification	29
	 	 	 
	Section 7.01	Survival	29
	 	 	 
	Section 7.02	Indemnification By Company	30
	 	 	 
	Section 7.03	Payments	30
	 	 	 
	Section 7.04	Tax Treatment of Indemnification Payments	30
	 	 	 
	Section 7.05	Effect of Investigation	30
	 	 	 
	Section 7.06	Exclusive Remedies	31
	 	 	 
	Article VIII Miscellaneous	31
	 	 	 
	Section 8.01	Expenses	31
	 	 	 
	Section 8.02	Notices	31
	 	 	 
	Section 8.03	Interpretation	32
	 	 	 
	Section 8.04	Removal of Legend	33
	 	 	 
	Section 8.05	Headings	33
	 	 	 
	Section 8.06	Severability	33
	 	 	 
	Section 8.07	Entire Agreement	34
	 	 	 
	Section 8.08	Successors and Assigns	34
	 	 	 
	Section 8.09	No Third-party Beneficiaries	34
	 	 	 
	Section 8.10	Amendment and Modification; Waiver	34
	 	 	 
	Section 8.11	Governing Law; Submission to Jurisdiction; Waiver of Jury Trial	35
	 	 	 
	Section 8.12	Specific Performance	35
	 	 	 
	Section 8.13	Counterparts	36
	 	 	 
	Section 8.14	Termination	36
	 	 	 
	Section 8.15	Recapitalization, Exchange, Etc.	36
	 	 	 
	Section 8.16	Failure to Timely Deliver; Buy-In	37

 

    	iii

     

    

 

STOCK
PURCHASE AGREEMENT

 

This Stock Purchase
Agreement (this “Agreement”), dated as of May 18, 2016, is entered into by and between Aqua Metals, Inc., a
Delaware corporation (the “Company”), and Interstate Emerging Investments, LLC, a Delaware limited liability
company (“Purchaser”).

 

RECITALS

 

WHEREAS, the Company
has authorized the issuance and sale by the Company to the Purchaser of up to $5,000,000 in shares of common stock of the Company,
par value $0.001 per share (the “Common Stock”); and

 

WHEREAS, the Company
desires to issue and sell to Purchaser, and Purchaser desires to purchase from the Company, shares of the Common Stock, on the
terms and subject to the conditions set forth in this Agreement;

 

NOW, THEREFORE, in
consideration of the premises and the representations, warranties, covenants and agreements contained in this Agreement, and for
other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and intending to be legally
bound, the parties hereby agree as follows:

 

Article
I

Definitions

 

The following terms
have the meanings specified or referred to in this Article I:

 

“Action” means
any claim, action, cause of action, demand, lawsuit, arbitration, inquiry, audit, notice of violation, proceeding, litigation,
citation, summons, subpoena or investigation of any nature, civil, criminal, administrative, regulatory or otherwise, whether at
law or in equity.

 

“Affiliate” of
a Person means any other Person that directly or indirectly, through one or more intermediaries, controls, is controlled by, or
is under common control with, such Person. The term “control” (including the terms “controlled by” and
“under common control with”) means the possession, directly or indirectly, of the power to direct or cause the direction
of the management and policies of a Person, whether through the ownership of voting securities, by contract or otherwise .

 

“Agreement” has
the meaning set forth in the preamble.

 

“Audited Financial
Statements” has the meaning set forth in Section 3.10.

 

“Balance Sheet”
has the meaning set forth in Section 3.10.

 

     

     

    

 

“Balance Sheet
Date” has the meaning set forth in Section 3.10.

 

“Benefit Plan”
has the meaning set forth in Section 3.21(a).

 

“Business
Day” means any day except Saturday, Sunday or any other day on which commercial banks located in Dallas, Texas are
authorized or required by Law to be closed for business.

 

“Bylaws”
means the Amended and Restated Bylaws of the Company, as may be amended, restated or modified from time to time.

 

“CERCLA” means
the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended by the Superfund Amendments and Reauthorization
Act of 1986, 42 U.S.C. §§ 9601 et seq.

 

“Certificate
of Incorporation” means that certain First Amended and Restated Certificate of Incorporation of the Company filed with
the Delaware Secretary of State on October 1, 2014, as may be amended, restated or modified from time to time.

 

“Closing” has
the meaning set forth in Section 2.03.

 

“Closing Date” has
the meaning set forth in Section 2.03.

 

“Code” means
the Internal Revenue Code of 1986, as amended.

 

“Common Stock” has
the meaning set forth in the recitals.

 

“Company” has
the meaning set forth in the preamble.

 

“Contracts” means
all contracts, leases, deeds, mortgages, licenses, instruments, notes, loans, commitments, undertakings, indentures, joint ventures
and all other agreements, commitments and legally binding arrangements, whether written or oral.

 

“Credit Agreement”
means that certain Credit Agreement, dated as of the date hereof, by and between Purchaser and the Company.

 

“Disclosure
Schedules” means the Disclosure Schedules delivered by the Company and Purchaser concurrently with the execution
and delivery of this Agreement.

 

“Dollars”
or “$”  means the lawful currency of the United States.

 

“Employment
Laws” has the meaning set forth in Section 3.22(d).

 

“Encumbrance” means
any charge, claim, community property interest, pledge, condition, equitable interest, lien (statutory or other), option, security
interest, mortgage, easement, encroachment, right of way, right of first refusal, or restriction of any kind, including any restriction
on use, voting, transfer, receipt of income or exercise of any other attribute of ownership.

 

    	 	2	 

     

    

 

“Environmental
Claim” means any Action, Governmental Order, lien, fine, penalty, or, as to each, any settlement or judgment arising
therefrom, by or from any Person alleging liability of whatever kind or nature (including liability or responsibility for the costs
of enforcement proceedings, investigations, cleanup, governmental response, removal or remediation, natural resources damages,
property damages, personal injuries, medical monitoring, penalties, contribution, indemnification and injunctive relief) arising
out of, based on or resulting from: (a) the presence, Release of, or exposure to, any Hazardous Materials; or (b) any actual or
alleged non-compliance with any Environmental Law or term or condition of any Environmental Permit.

 

“Environmental
Law” means any applicable Law, and any Governmental Order or binding agreement with any Governmental Authority:
(a) relating to pollution (or the cleanup thereof) or the protection of natural resources, endangered or threatened species, human
health or safety, or the environment (including ambient air, soil, surface water or groundwater, or subsurface strata); or (b)
concerning the presence of, exposure to, or the management, manufacture, use, containment, storage, recycling, reclamation, reuse,
treatment, generation, discharge, transportation, processing, production, disposal or remediation of any Hazardous Materials. The
term “Environmental Law” includes, without limitation, the following (including their implementing regulations and
any state analogs): the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended by the Superfund
Amendments and Reauthorization Act of 1986, 42 U.S.C. §§ 9601 et seq.; the Solid Waste Disposal Act, as amended by the
Resource Conservation and Recovery Act of 1976, as amended by the Hazardous and Solid Waste Amendments of 1984, 42 U.S.C. §§
6901 et seq.; the Federal Water Pollution Control Act of 1972, as amended by the Clean Water Act of 1977, 33 U.S.C. §§
1251 et seq.; the Toxic Substances Control Act of 1976, as amended, 15 U.S.C. §§ 2601 et seq.; the Emergency Planning
and Community Right-to-Know Act of 1986, 42 U.S.C. §§ 11001 et seq.; the Clean Air Act of 1966, as amended by the Clean
Air Act Amendments of 1990, 42 U.S.C. §§ 7401 et seq.; and the Occupational Safety and Health Act of 1970, as amended,
29 U.S.C. §§ 651 et seq.

 

“Environmental
Notice” means any written directive, notice of violation or infraction, or notice respecting any Environmental Claim
relating to actual or alleged non-compliance with any Environmental Law or any term or condition of any Environmental Permit.

 

“Environmental
Permit” means any Permit, letter, clearance, consent, waiver, closure, exemption, decision or other action required
under or issued, granted, given, authorized by or made pursuant to Environmental Law.

 

“ERISA” means
the Employee Retirement Income Security Act of 1974, as amended, and the regulations promulgated thereunder.

 

    	 	3	 

     

    

 

“ERISA Affiliate”
means any trade or business (whether or not incorporated) that, together with the Company, is treated as a single employer under
Section 414(b), (c), (m) or (o) of the Code.

 

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

 

“Financial
Statements” has the meaning set forth in Section 3.10.

 

“FINRA” means
the Financial Industry Regulatory Authority, Inc..

 

“GAAP” means
United States generally accepted accounting principles in effect from time to time.

 

“Governmental
Authority” means any federal, state, local or foreign government or political subdivision thereof, or any agency
or instrumentality of such government or political subdivision, or any self-regulated organization or other non-governmental regulatory
authority or quasi-governmental authority (to the extent that the rules, regulations or orders of such organization or authority
have the force of Law), or any arbitrator, court or tribunal of competent jurisdiction.

 

“Governmental
Licenses” has the meaning set forth in Section 3.19.

 

“Governmental
Order” means any order, writ, judgment, injunction, decree, stipulation, determination or award entered by or with
any Governmental Authority.

 

“Hazardous
Materials” means: (a) any material, substance, chemical, waste, product, derivative, compound, mixture, solid, liquid,
mineral or gas, in each case, whether naturally occurring or man-made, that is hazardous, acutely hazardous, toxic, or words of
similar import or regulatory effect under Environmental Laws; and (b) any petroleum or petroleum-derived products, radon, radioactive
materials or wastes, asbestos in any form, lead or lead-containing materials, urea formaldehyde foam insulation, and polychlorinated
biphenyls.

 

“Insurance
Policies” has the meaning set forth in Section 3.17.

 

“Intellectual
Property Rights” has the meaning set forth in Section 3.16.

 

“Interim Balance
Sheet” has the meaning set forth in Section 3.10.

 

“Interim Balance
Sheet Date” has the meaning set forth in Section 3.10.

 

“Interim Financial
Statements” has the meaning set forth in Section 3.10.

 

    	 	4	 

     

    

 

“Investor
Rights Agreement” means the Investor Rights Agreement, dated as of the Closing Date, by and among the Company and
the Purchaser, substantially in the form attached hereto as Exhibit A.

 

“Knowledge
of the Company” or “the Company’s Knowledge” or any other similar knowledge
qualification, means the actual knowledge of any director or officer of the Company.

 

“Law” means
any statute, law, ordinance, regulation, rule, code, order, constitution, treaty, common law, judgment, decree, other requirement
or rule of law of any Governmental Authority.

 

“Liabilities” has
the meaning set forth in Section 3.12.

 

“Loan Documents”
means the Note, the Credit Agreement and the Security Documents (as defined in the Credit Agreement).

 

“Losses” means
losses, damages, liabilities, deficiencies, Actions, judgments, interest, awards, penalties, fines, costs or expenses of whatever
kind, including reasonable attorneys’ fees and the cost of enforcing any right to indemnification hereunder and the cost
of pursuing any insurance providers; provided, that “Losses” shall not include any punitive or exemplary
damages.

 

“Material
Adverse Effect” means any event, occurrence, fact, condition or change that is, or could reasonably be expected
to become, individually or in the aggregate, materially adverse to the business, results of operations, prospects, condition (financial
or otherwise) or assets of the Company.

 

“Money Laundering
Laws” has the meaning set forth in Section 3.31.

 

“Multiemployer
Plan” has the meaning set forth in Section 3.21(c).

 

“NASDAQ”
means the Nasdaq Capital Market.

 

“National
Securities Purchase Agreement” means that certain agreement between the Company and the investors named therein pursuant
to which the Company will sell approximately $5,000,000 of shares of its Common Stock, at $7.12 per share, through National Securities
Corporation as placement agent.

 

“Note”
means the convertible promissory note delivered by the Company to Purchaser pursuant to the Credit Agreement.

 

“OFAC”
has the meaning set forth in Section 3.32.

 

    	 	5	 

     

    

 

“Permits” means
all permits, licenses, franchises, approvals, authorizations, registrations, certificates, variances and similar rights obtained,
or required to be obtained, from Governmental Authorities.

 

“Permitted
Encumbrances” has the meaning set forth in Section 3.15(a).

 

“Person” means
an individual, corporation, partnership, joint venture, limited liability company, Governmental Authority, unincorporated organization,
trust, association or other entity.

 

“Purchase
Price” has the meaning set forth in Section 2.01.

 

“Purchaser” has
the meaning set forth in the preamble.

 

“Purchaser
Indemnitees” has the meaning set forth in Section 7.02.

 

“Qualified
Benefit Plan” has the meaning set forth in Section 3.21(c).

 

“Real Property” means
the real property owned, leased or subleased by the Company, together with all buildings, structures and facilities located thereon.

 

“Release” means
any actual or threatened release, spilling, leaking, pumping, pouring, emitting, emptying, discharging, injecting, escaping, leaching,
dumping, abandonment, disposing or allowing to escape or migrate into or through the environment (including, without limitation,
ambient air (indoor or outdoor), surface water, groundwater, land surface or subsurface strata or within any building, structure,
facility or fixture).

 

“Representative” means,
with respect to any Person, any and all directors, officers, employees, consultants, financial advisors, counsel, accountants and
other agents of such Person.

 

“SEC”
means the Securities and Exchange Commission.

 

“SEC Documents”
means the Company’s reports, schedules, forms, statements and other documents required to be filed by it under the Exchange
Act or the Securities Act and all exhibits included therein and financial statements and schedules thereto and documents incorporated
by reference therein.

 

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

 

“Shares”
has the meaning set forth in Section 2.01.

 

“Subsidiary”
means, with respect to any Person, any corporation, association, partnership, joint venture, or other business or corporate entity,
enterprise or organization which is directly or indirectly (through one or more intermediaries) controlled by or owned fifty 50%
or more by such Person.

 

    	 	6	 

     

    

 

“Supply Agreement” means
that certain Supply Agreement, dated as of the date hereof, by and between Purchaser and the Company.

 

“Taxes” means
all federal, state, local, foreign and other income, gross receipts, sales, use, production, ad valorem, transfer, franchise, registration,
profits, license, lease, service, service use, withholding, payroll, employment, unemployment, estimated, excise, severance, environmental,
stamp, occupation, premium, property (real or personal), real property gains, windfall profits, customs, duties or other taxes,
fees, assessments or charges of any kind whatsoever, together with any interest, additions or penalties with respect thereto and
any interest in respect of such additions or penalties.

 

“Tax Return” means
any return, declaration, report, claim for refund, information return or statement or other document relating to Taxes, including
any schedule or attachment thereto, and including any amendment thereof.

 

“Transaction
Documents” means this Agreement, the Investor Rights Agreement, the Supply Agreement, the Warrants, the Loan Documents
and each of the other agreements and instruments entered into or delivered by any of the parties hereto in connection with the
consummation of the transactions contemplated hereby and thereby, as may be amended from time to time.

 

“Union” means
any labor union, organization, association, work council, or other group representing employees with respect to their employment.

 

“WARN” has
the meaning set forth in Section 3.22(i).

 

“Warrants”
means warrants to purchase additional shares of Common Stock, on the terms and subject to the conditions set forth in the Credit
Agreement.

 

Article
II

Purchase and Sale

 

Section 2.01         Purchase
and Sale. Subject to the terms and conditions set forth herein, at the Closing, the Company shall issue and sell to Purchaser,
and Purchaser shall purchase from the Company, an aggregate of 702,247 shares of Common Stock (the “Shares”),
for an aggregate purchase price of $4,999,998.64 (the “Purchase Price”).

 

    	 	7	 

     

    

 

Section 2.02         Transactions
Effected at the Closing.

 

(a)           At
the Closing, Purchaser shall deliver to the Company:

 

(i)          the
Purchase Price by wire transfer of immediately available funds to an account of the Company designated in writing by the Company
to Purchaser at least two (2) Business Days prior to the Closing; and

 

(ii)         the
Transaction Documents and all other agreements, documents, instruments or certificates required to be delivered by Purchaser at
or prior to the Closing pursuant to Section 5.03 of this Agreement.

 

(b)           At
the Closing, the Company shall deliver to Purchaser:

 

(i)          evidence
of the Shares credited to book-entry accounts maintained by the transfer agent of the Company (the “Transfer Agent”),
bearing the legend or restrictive notation set forth in Section 4.05 of this Agreement, free and clear of all Encumbrances,
other than transfer restrictions set forth herein, under the Bylaws and applicable federal and state securities laws; and

 

(ii)         the
Transaction Documents and all other agreements, documents, instruments or certificates required to be delivered by the Company
at or prior to the Closing pursuant to Section 5.02 of this Agreement.

 

Section 2.03         Closing.
Subject to the terms and conditions of this Agreement, the purchase and sale of the Shares contemplated hereby shall take
place at a closing (the “Closing”) to be held at 9:00 a.m., Central time, at the offices of Thompson &
Knight LLP, 1722 Routh St., Suite 1500, Dallas, Texas 75201, or at such other time or on such other date or at such other place
or by such other method as the Company and Purchaser may mutually agree upon orally or in writing (the day on which the Closing
takes place, the “Closing Date”).

 

Section 2.04         Use
of Proceeds. The proceeds from the issuance of the Shares and the Note shall be used by the Company to purchase four kettles
for use in lead recycling, for start up and expansion costs for the Company’s Reno, Nevada lead recycling plant, and to
provide working capital for the Company’s operations.

 

Article
III

Representations and Warranties of the Company

 

Except as set forth
in the Disclosure Schedules, the Company represents and warrants to Purchaser that the statements contained in this Article
III are true and correct as of the date hereof. The Disclosure Schedules shall be arranged in sections corresponding to the
numbered and lettered sections and subsections contained in this Article III, and the disclosures in any section or subsection
of the Disclosure Schedules shall qualify other sections and subsections in this Article III only to the extent it is readily
apparent from a reading of the disclosure that such disclosure is applicable to such other sections and subsections.

 

    	 	8	 

     

    

 

Section 3.01         Organization,
Qualification and Authority of the Company. The Company is a corporation duly organized, validly existing and in good standing
under the Laws of the state of Delaware and has full corporate power and authority to (a) enter into this Agreement and the other
Transaction Documents to which the Company is a party, to carry out its obligations hereunder and thereunder and to consummate
the transactions contemplated hereby and thereby and (b) own, operate or lease the properties and assets now owned, operated or
leased by it and to carry on its business as it has been and is currently conducted. Section 3.01 of the Disclosure Schedules
sets forth each jurisdiction in which the Company is licensed or qualified to do business, and the Company is duly licensed or
qualified to do business and is in good standing in each jurisdiction in which the properties owned or leased by it or the operation
of its business as currently conducted makes such licensing or qualification necessary, except where the failure to be so licensed,
qualified or in good standing would not, individually or in the aggregate, have a Material Adverse Effect. The execution and delivery
by the Company of this Agreement and any other Transaction Document to which the Company is a party, the performance by the Company
of its obligations hereunder and thereunder and the consummation by the Company of the transactions contemplated hereby and thereby
have been duly authorized by all requisite corporate action on the part of the Company. This Agreement has been duly executed
and delivered by the Company, and (assuming due authorization, execution and delivery by Purchaser) this Agreement constitutes
a legal, valid and binding obligation of the Company enforceable against the Company in accordance with its terms, except as such
enforceability may be limited by general principles of equity or applicable bankruptcy, insolvency, reorganization, moratorium,
liquidation, usury and other similar laws relating to, or affecting generally, the enforcement of applicable creditors’
rights and remedies. When each other Transaction Document to which the Company is or will be a party has been duly executed and
delivered by the Company (assuming due authorization, execution and delivery by each other party thereto), such Transaction Document
will constitute a legal and binding obligation of the Company enforceable against it in accordance with its terms, except as such
enforceability may be limited by general principles of equity or applicable bankruptcy, insolvency, reorganization, moratorium,
liquidation, usury and other similar laws relating to, or affecting generally, the enforcement of applicable creditors’
rights and remedies.

 

Section 3.02         Capitalization.

 

(a)          As
set forth on Section 3.02(a) of the Disclosure Schedules, the authorized capital stock of the Company immediately following
the Closing after giving effect to the transactions contemplated by this Agreement and the other Transaction Documents will consist
of 50,000,000 shares of Common Stock, of which (A) 15,559,022 shares will be issued and outstanding, (B) 20,894,979 shares will
be issued and outstanding on a fully-diluted, as converted and as exercised basis, and (C) 4,633,710 shares will be reserved
for issuance upon exercise of outstanding stock options and warrants.

 

    	 	9	 

     

    

 

(b)          As
of immediately following the Closing after giving effect to the transactions contemplated by this Agreement and the other Transaction
Documents, (i) all of the issued and outstanding shares of Common Stock will have been duly authorized, validly issued, and will
be fully paid and non-assessable, (ii) all of the issued and outstanding shares of Common Stock will have been issued in compliance
with all applicable federal and state securities Laws, (iii) none of the issued and outstanding shares of Common Stock will have
been issued in violation of any agreement, arrangement or commitment to which the Company or any of its Affiliates is a party or
subject to or in violation of any preemptive or similar rights of any Person granted by the Company, and (iv) all of the Shares
will have the rights, preferences, powers, restrictions and limitations set forth in the Certificate of Incorporation and under
the Delaware General Corporation Law.

 

(c)          Section
3.02(c) of the Disclosure Schedules also sets forth, as of immediately following the Closing after giving effect to the transactions
contemplated by this Agreement and the other Transaction Documents, all outstanding or authorized (i) stock options and (ii) any
warrants, convertible securities or other rights, agreements, arrangements or commitments of any character relating to the capital
stock of the Company or obligating the Company to issue or sell any shares of capital stock of, or any other interest in, the Company,
in each case, including the number and kind of securities reserved for issuance on exercise or conversion of any such securities
or other rights, the exercise or conversion price of any such securities or other rights and any applicable vesting schedule for
any such securities or other rights. Except as set forth on Section 3.02(c) of the Disclosure Schedules, the Company does
not have outstanding, authorized, or in effect any stock appreciation, phantom stock, profit participation or similar rights. Except
as set forth on Section 3.02(c) of the Disclosure Schedules, there are no voting trusts, stockholder agreements, proxies
or other agreements, understandings or obligations in effect with respect to the voting, transfer or sale (including any rights
of first refusal, rights of first offer or drag-along rights), issuance (including any pre-emptive or anti-dilution rights), redemption
or repurchase (including any put or call or buy-sell rights), or registration (including any related lock-up or market standoff
agreements) of any shares of capital stock or other securities of the Company.

 

(d)          The
Company’s currently outstanding shares of Common Stock are quoted on the NASDAQ Capital Market, and the Company has not
received any notice of delisting.1

 

Section 3.03         Subsidiaries.
Section 3.03 of the Disclosure Schedules contains a complete list of all of the Subsidiaries of the Company. Each such
Subsidiary is an entity duly organized, validly existing and in good standing under the laws of its jurisdiction of organization,
has all requisite power and authority to own, lease and operate its properties and to carry on its business as now being conducted
and is duly qualified as a foreign entity in all jurisdictions in which it is required to be so qualified. Except as set forth
on Section 3.03 of the Disclosure Schedules, the Company does not presently have any other Subsidiaries or, directly or
indirectly, own, control or have any interest in any shares or other ownership interest in any other Person. As to any Subsidiaries
of the Company listed in Section 3.03 of the Disclosure Schedule, the Company owns, directly or indirectly, the equity
interest in those Subsidiaries that are indicated in Section 3.03 of the Disclosure Schedule.

 

 

1 NTD: To discuss.

 

    	 	10	 

     

    

 

Section 3.04         SEC
Documents. The Company has timely filed with the SEC all SEC Documents. The SEC Documents, including any audited or unaudited
financial statements and any notes thereto or schedules included therein, at the time filed (in the case of registration statements,
solely on the dates of effectiveness) (except to the extent corrected by a subsequently filed SEC Document filed prior to the
date hereof), (i) did not contain any untrue statement of a material fact or omit to state a material fact required to be stated
therein or necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading,
(ii) on their face complied as to form in all material respects with applicable requirements of the Exchange Act and the applicable
accounting requirements and with the published rules and regulations of the SEC with respect thereto, (iii) were prepared in accordance
with GAAP applied on a consistent basis during the periods involved (except as may be indicated in the notes thereto or, in the
case of unaudited statements, as permitted by Form 10-Q of the SEC) and (iv) fairly present (subject in the case of unaudited
statements to normal, recurring and year-end audit adjustments) in all material respects the consolidated financial position of
the Company as of the dates thereof and the consolidated results of its operations and cash flows for the periods then ended.

 

Section 3.05         No
Defaults; Violations. No material default exists in the due performance and observance of any term, covenant or condition
of any material license, contract, indenture, mortgage, deed of trust, note, loan or credit agreement, or any other material agreement
or instrument evidencing an obligation for borrowed money, or any other material agreement or instrument to which the Company
is a party or by which the Company may be bound or to which any of the properties or assets of the Company is subject. The Company
is not in violation of any term or provision of its Certificate of Incorporation or Bylaws, or in violation of any franchise,
license, permit, applicable law, rule, regulation, judgment or decree of any governmental agency or court, domestic or foreign,
having jurisdiction over the Company or any of its properties or businesses.

 

Section 3.06         Consents.
All consents, authorizations, approvals and orders required in connection with the execution, delivery, and performance by
the Company and the Subsidiaries of each of the Transaction Documents and all ancillary documents to which it is a party, the
consummation by the Company and the Subsidiaries of the transactions herein and therein contemplated and the compliance by the
Company and the Subsidiaries with the terms hereof and thereof have been obtained. No consent, authorization or order of, and
no filing with, any court, government agency or other body is required for the valid issuance, sale and delivery of the securities
and the consummation of the transactions and agreements contemplated by this Agreement and as contemplated by the disclosures
the SEC Documents.

 

    	 	11	 

     

    

 

Section
3.07         No Conflicts, etc. The execution, delivery, and performance by
the Company of this Agreement and all Transaction Documents, the consummation by the Company of the transactions herein and
therein contemplated and the compliance by the Company with the terms hereof and thereof do not and will not, with or without
the giving of notice or the lapse of time or both: (i) result in a violation or breach of, or conflict with any of the terms
and provisions of, or constitute a default under, or result in the creation, modification, termination or imposition of any
lien, charge or encumbrance upon any property or assets of the Company pursuant to the terms of any agreement or instrument
to which the Company is a party that could reasonably be expected to have, individually or in the aggregate, a Material
Adverse Effect; (ii) conflict with or result in any violation or breach of the provisions of the Certificate of Incorporation
or Bylaws; or (iii) conflict with or result in the Company’s violation or breach of any existing applicable law, rule,
regulation, judgment, order or decree of any governmental agency or court, domestic or foreign, having jurisdiction over the
Company or any of its properties or business constituted as of the date hereof that could reasonably be expected to
have, individually or in the aggregate, a Material Adverse Effect.

 

Section 3.08         Disclosure
Controls. The Company and its Subsidiaries maintain a system of “disclosure controls and procedures” (as such
term is defined in Rule 13a-15(e) of the Exchange Act) that complies with the requirements of the Exchange Act and that has been
designed to ensure that information required to be disclosed by the Company in reports that it files or submits under the Exchange
Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, including
controls and procedures designed to ensure that such information is accumulated and communicated to the Company’s management
as appropriate to allow timely decisions regarding required disclosure to be made; such disclosure controls and procedures are
effective.

 

Section 3.09         Accounting
Controls. The Company and its Subsidiaries maintain a system of internal accounting controls sufficient to provide reasonable
assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in
accordance with GAAP, including, but not limited to, 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 GAAP and to maintain asset accountability;
(iii) access to assets is permitted only in accordance with management’s general or specific authorization; and (iv) the
recorded accountability for assets is compared with the existing assets at reasonable intervals and appropriate action is taken
with respect to any differences.  There are no material weaknesses in the internal controls over financial reporting of the
Company.  The Company’s auditors and the Audit Committee of the board of directors of the Company have been advised
of:  (i) all significant deficiencies and material weaknesses in the design or operation of internal controls over financial
reporting which have adversely affected or are reasonably likely to adversely affect the ability of the Company to record, process,
summarize and report financial information; and (ii) any fraud, whether or not material, that involves management or other employees
who have a significant role in the Company’s internal controls over financial reporting.

 

    	 	12	 

     

    

 

Section 3.10         Financial
Statements. Complete copies of the audited consolidated financial statements, including the notes thereto and supporting schedules,
if any, of the Company and its Subsidiaries consisting of the balance sheet of the Company as at December 31 in each of the years
2014 and 2015 and the related statements of income and retained earnings, stockholders’ equity and cash flow for the years
then ended (the “Audited Financial Statements”), and unaudited financial statements consisting of the balance
sheet of the Company as at March 31, 2016 and the related statements of income and retained earnings, stockholders’ equity
and cash flow for the three-month period then ended (the “Interim Financial Statements” and together with the
Audited Financial Statements, the “Financial Statements”) have been delivered to Purchaser. The Financial Statements
have been prepared in conformity with GAAP applied on a consistent basis throughout the periods involved, subject, in the case
of the Interim Financial Statements, to normal and recurring year-end adjustments (the effect of which will not be materially
adverse) and the absence of notes (that, if presented, would not differ materially from those presented in the Audited Financial
Statements). The Financial Statements are based on the books and records of the Company, and fairly present the financial condition
of the Company as of the respective dates they were prepared and the results of the operations of the Company for the periods
indicated and the supporting schedules, if any, present fairly the information required to be stated therein. The audited balance
sheet of the Company as of December 31, 2015 is referred to herein as the “Balance Sheet” and the date thereof
as the “Balance Sheet Date” and the balance sheet of the Company as of March 31, 2016 is referred to herein
as the “Interim Balance Sheet” and the date thereof as the “Interim Balance Sheet Date”.
The Company maintains a standard system of accounting established and administered in accordance with GAAP. The interactive data
in eXtensible Business Reporting Language included or incorporated by reference in the SEC Documents fairly presents the information
called for in all material respects and has been prepared in accordance with the SEC’s rules and guidelines applicable thereto.

 

Section 3.11         Independent
Accountants. Armanino LLP, who have certified certain consolidated financial statements of the Company and its Subsidiaries,
are independent public accountants with respect to the Company and its Subsidiaries within the applicable rules and regulations
adopted by the SEC and the Public Company Accounting Oversight Board (United States) and as required by the Securities Act.

 

Section 3.12         Undisclosed
Liabilities. Except as set forth on Section 3.12 of the Disclosure Schedule, the Company has no liabilities, obligations
or commitments of any nature whatsoever, asserted or unasserted, known or unknown, absolute or contingent, accrued or unaccrued,
matured or unmatured or otherwise (“Liabilities”), except (a) those that are adequately reflected or reserved
against in the Interim Balance Sheet as of the Interim Balance Sheet Date, and (b) those that have been incurred in the ordinary
course of business consistent with past practice since the Interim Balance Sheet Date that have not had, and would not reasonably
be expected to have, individually or in the aggregate, a Material Adverse Effect.

 

    	 	13	 

     

    

 

Section 3.13         Absence
of Certain Changes, Events and Conditions. Since the Interim Balance Sheet Date, and other than in the ordinary course of
business consistent with past practice, there has not been, with respect to the Company or any Subsidiary, any:

 

(a)          event,
occurrence or development that has had, or could reasonably be expected to have, individually or in the aggregate, a Material Adverse
Effect;

 

(b)          amendment
of the Certificate of Incorporation, the Bylaws or other organizational documents of the Company;

 

(c)          split,
combination or reclassification of any shares of its capital stock;

 

(d)          issuance,
sale or other disposition of any of its capital stock, or grant of any options, warrants or other rights to purchase or obtain
(including upon conversion, exchange or exercise) any of its capital stock;

 

(e)          declaration
or payment of any dividends or distributions on or in respect of any of its capital stock or redemption, purchase or acquisition
of its capital stock;

 

(f)          material
change in any method of accounting or accounting practice of the Company, except as required by GAAP or as disclosed in the notes
to the Financial Statements;

 

(g)          incurrence,
assumption or guarantee of any indebtedness for borrowed money except unsecured current obligations and Liabilities incurred in
the ordinary course of business consistent with past practice;

 

(h)          transfer,
assignment, sale or other disposition of any of the assets shown or reflected in the Balance Sheet or cancellation, discharge or
payment of any material debts, liens or entitlements;

 

(i)          transfer,
assignment or grant of any license or sublicense of any Intellectual Property Rights;

 

(j)          any
capital investment in, or any loan to, any other Person;

 

(k)          acceleration,
termination, material modification or amendment to or cancellation of any material contract to which the Company is a party or
by which it is bound;

 

(l)          any
material capital expenditures;

 

(m)          imposition
of any Encumbrance upon any of the Company properties, capital stock or assets, tangible or intangible;

 

(n)          any
mass layoff of employees or adoption, modification or termination of any: (i) material employment, severance, retention, change
in control, or other Contract with any current or former employee, officer, director, independent contractor or consultant, (ii)
Benefit Plan or (iii) collective bargaining, memorandum of understanding, or other Contract with a Union, in each case whether
written or oral;

 

    	 	14	 

     

    

 

(o)          any
loan to (or forgiveness of any loan to), or entry into any other transaction with, any of its stockholders, directors, officers
and employees;

 

(p)          entry
into a new line of business or abandonment or discontinuance of existing lines of business;

 

(q)          adoption
of any plan of merger, consolidation, reorganization, liquidation or dissolution or filing of a petition in bankruptcy under any
provisions of federal or state bankruptcy Law or consent to the filing of any bankruptcy petition against it under any similar
Law;

 

(r)          acquisition
by merger or consolidation with, or by purchase of a substantial portion of the assets or stock of, or by any other manner, any
business or any Person or any division thereof; or

 

(s)          any
contract to do any of the foregoing, or any action or omission that would result in any of the foregoing.

 

Section 3.14         Disclosure
of Agreements. The agreements and documents described in the SEC Documents conform to the descriptions thereof contained therein
and there are no agreements or other documents required by the Securities Act and the rules and regulations to be described therein
or to be filed with the SEC, that have not been so described or filed. Each agreement or other instrument (however characterized
or described) to which the Company is a party or by which it is or may be bound or affected and (i) that is referred to in the
SEC Documents, or (ii) is material to the Company’s business, has been duly authorized and validly executed by the Company,
is in full force and effect in all material respects and is enforceable against the Company and, to the Company’s knowledge,
the other parties thereto, in accordance with its terms, except (x) as such enforceability may be limited by bankruptcy, insolvency,
reorganization or similar laws affecting creditors’ rights generally, (y) as enforceability of any indemnification or contribution
provision may be limited under the federal or state securities laws, and (z) that the remedy of specific performance and injunctive
and other forms of equitable relief may be subject to the equitable defenses and to the discretion of the court before which any
proceeding therefore may be brought. None of such agreements or instruments has been assigned by the Company, and neither the
Company nor, to the Company’s Knowledge, any other party is in default thereunder and, to the Company’s Knowledge,
no event has occurred that, with the lapse of time or the giving of notice, or both, would constitute a default thereunder. To
the Company’s Knowledge, performance by the Company of the material provisions of such agreements or instruments will not
result in a violation of any existing applicable law, rule, regulation, judgment, order or decree of any governmental agency or
court, domestic or foreign, having jurisdiction over the Company or any of its assets or businesses, including, without limitation,
those relating to environmental laws and regulations.

 

    	 	15	 

     

    

 

Section 3.15         Title
to Assets; Real Property.

 

(a)          The
Company has good and valid (and, in the case of owned Real Property, good and marketable fee simple) title to, or a valid leasehold
interest in, all Real Property and personal property and other assets reflected in the Audited Financial Statements or acquired
after the Interim Balance Sheet Date, other than properties and assets sold or otherwise disposed of in the ordinary course of
business consistent with past practice since the Interim Balance Sheet Date. All such properties and assets (including leasehold
interests) are free and clear of Encumbrances except for the following (collectively referred to as “Permitted Encumbrances”):

 

(i)          those
items set forth in Section 3.15(a) of the Disclosure Schedules;

 

(ii)         liens
for Taxes not yet due and payable or being contested in good faith by appropriate procedures and for which there are adequate accruals
or reserves on the Interim Balance Sheet;

 

(iii)        mechanics,
carriers’, workmen’s, repairmen’s or other like liens arising or incurred in the ordinary course of business
consistent with past practice or amounts that are not delinquent and which are not, individually or in the aggregate, material
to the business of the Company;

 

(iv)        easements,
rights of way, zoning ordinances and other similar encumbrances affecting Real Property which are not, individually or in the aggregate,
material to the business of the Company;

 

(v)         liens
arising under original purchase price conditional sales contracts and equipment leases with third parties entered into in the ordinary
course of business consistent with past practice which are not, individually or in the aggregate, material to the business of the
Company; or

 

(vi)        other
imperfections of title or Encumbrances, if any, that individually or in the aggregate, have not had, and would not have, a Material
Adverse Effect.

 

Section 3.16         Intellectual
Property. The Company owns or possesses adequate rights or licenses to use all trademarks, trade names, service marks, service
mark registrations, service names, patents, patent rights, copyrights, original works, inventions, licenses, approvals, governmental
authorizations, trade secrets and other intellectual property rights and all applications and registrations therefor (“Intellectual
Property Rights”) necessary to conduct its business as now conducted and as presently proposed to be conducted. To the
Knowledge of the Company, the Company has not infringed, nor conflicted with, the Intellectual Property Rights of others. There
is no claim, action or proceeding being made or brought, or to the Knowledge of the Company, being threatened, against the Company
or any Subsidiary regarding their Intellectual Property Rights. The Company is not aware of any facts or circumstances that might
reasonably give rise to any of the foregoing infringements or claims, actions or proceedings.

 

    	 	16	 

     

    

 

Section 3.17         Insurance.
The Company is covered by valid, outstanding and enforceable policies or binders of fire, liability, product liability, umbrella
liability, pollution and other environmental, real and personal property, workers’ compensation, vehicular, directors and
officers’ liability, fiduciary liability and other casualty and property insurance maintained by the Company or its Affiliates
and relating to the assets, business, operations, employees, officers and directors of the Company (collectively, the “Insurance
Policies”), and true and complete copies of such Insurance Policies have been made available to Purchaser. Such Insurance
Policies are in full force and effect and none of the Insurance Policies will lapse or terminate following the consummation of
the transactions contemplated by this Agreement. Neither the Company nor any of its Affiliates has received any written notice
of cancellation of, premium increase with respect to, or alteration of coverage under, any of such Insurance Policies. The Insurance
Policies are of the type and in the amounts customarily carried by Persons conducting a business similar to the Company and are
sufficient for compliance with all applicable Laws and Contracts to which the Company is a party or by which it is bound, except
where such noncompliance would not result in a Material Adverse Effect. There are no claims related to the business of the Company
pending under any such Insurance Policies as to which coverage has been questioned, denied or disputed or in respect of which
there is an outstanding reservation of rights.

 

Section 3.18         Legal
Proceedings; Governmental Orders.

 

(a)          There
are no material Actions pending or, to the Company’s Knowledge, threatened against, or involving the Company or any of its
Subsidiaries, or, to the Company’s Knowledge, any executive officer or director of the Company, or by the Company or any
of its Subsidiaries affecting any of its properties or assets (or by or against the Company or any Affiliate thereof and relating
to the Company).

 

(b)          There
are no outstanding Governmental Orders and no unsatisfied judgments, penalties or awards against or affecting the Company or any
of its Subsidiaries or any of their properties or assets.

 

Section 3.19         Possession
of Licenses and Permits. The Company and each of its Subsidiaries (A) possesses the licenses, permits, certificates, authorizations,
consents and approvals (collectively, “Governmental Licenses”) issued by the appropriate Governmental Authorities
necessary to conduct its business as currently conducted as described in the SEC Documents, and (B) has obtained all necessary
Governmental Licenses from other persons necessary to conduct its business, except, in each case of clauses (A) and (B), (i) as
described in the SEC Documents or (ii) to the extent that any failure to possess any Governmental Licenses, provide any notice,
make any filing, or obtain any Governmental Licenses would not, individually or in the aggregate, reasonably be expected to have
a Material Adverse Effect; none of the Company and subsidiaries is in violation of, or in default under, any Governmental License,
as except as would not reasonably be expected to have a Material Adverse Effect. All of the Governmental Licenses are valid and
in full force and effect, except when the invalidity of such Governmental Licenses or the failure of such Governmental Licenses
to be in full force and effect would not, individually or in the aggregate, reasonably be expected to have a Material Adverse
Effect. Neither the Company nor the Subsidiary has received any notice of proceedings relating to the revocation or modification
of any Governmental Licenses which, individually or in the aggregate, if the subject of an unfavorable decision, ruling or finding,
would have a Material Adverse Effect.

 

    	 	17	 

     

    

 

Section 3.20         Environmental
Laws. Except as described in the SEC Documents, (A) neither the Company nor any subsidiary is in violation of any Environmental
Laws, except for those violations that would not reasonably be expected, individually or in the aggregate, to have a Material
Adverse Effect, (B) each of the Company and its subsidiaries has all permits, authorizations and approvals required under any
applicable Environmental Laws and is in compliance in all material respects with their requirements, (C) there are no pending
or, to the Company’s Knowledge, threatened administrative, regulatory or judicial actions, suits, demands, demand letters,
claims, liens, notices of noncompliance or violation, investigations or proceedings relating to any Environmental Law against
the Company or any subsidiary, and (D) to the Company’s Knowledge, there are no events or circumstances that would
reasonably be expected to form the basis of an order for clean-up or remediation, or an investigation, action, suit or proceeding
by any private party or governmental body or agency, against or affecting the Company or any subsidiary relating to Hazardous
Materials or any Environmental Laws.

 

Section 3.21         Employee
Benefit Matters.

 

(a)          Section
3.21(a) of the Disclosure Schedules contains a true and complete list of each pension, benefit, retirement, compensation, employment,
consulting, profit-sharing, deferred compensation, incentive, bonus, performance award, phantom equity, stock or stock-based, change
in control, retention, severance, vacation, paid time off, welfare, fringe-benefit and other similar agreement, plan, policy, program
or arrangement (and any amendments thereto), in each case whether or not reduced to writing and whether funded or unfunded, including
each “employee benefit plan” within the meaning of Section 3(3) of ERISA, whether or not tax-qualified and whether
or not subject to ERISA, which is or has been maintained, sponsored, contributed to, or required to be contributed to by the Company,
or under which the Company or any of its ERISA Affiliates has or may have any Liability, or with respect to which Purchaser or
any of its Affiliates would reasonably be expected to have any Liability, contingent or otherwise (as listed on Section 3.21(a)
of the Disclosure Schedules, each, a “Benefit Plan”).

 

(b)          With
respect to each Benefit Plan, the Company has made available to Purchaser accurate, current and complete copies of each of the
following: (i) where the Benefit Plan has been reduced to writing, the plan document together with all amendments; (ii) where the
Benefit Plan has not been reduced to writing, a written summary of all material plan terms; (iii) where applicable, copies of any
trust agreements or other funding arrangements, custodial agreements, insurance policies and contracts, administration agreements
and similar agreements, and investment management or investment advisory agreements, now in effect or required in the future as
a result of the transactions contemplated by this Agreement or otherwise; (iv) copies of any summary plan descriptions, summaries
of material modifications, employee handbooks and any other written communications (or a description of any oral communications)
relating to any Benefit Plan; (v) in the case of any Benefit Plan that is intended to be qualified under Section 401(a) of the
Code, a copy of the most recent determination, opinion or advisory letter from the Internal Revenue Service; and (vi) in the case
of any Benefit Plan for which a Form 5500 is required to be filed, a copy of the most recently filed Forms 5500, with schedules
and financial statements attached.

 

    	 	18	 

     

    

 

(c)          Each
Benefit Plan and related trust has been established, administered and maintained in accordance with its terms and in compliance
with all applicable Laws (including ERISA, the Code and any applicable state or local Laws).

 

(d)          Neither
the Company nor any of its ERISA Affiliates has (i) incurred or reasonably expects to incur, either directly or indirectly, any
material Liability under Title I or Title IV of ERISA or related provisions of the Code or applicable local Law relating to employee
benefit plans; (ii) failed to timely pay premiums to the Pension Benefit Guaranty Corporation; (iii) withdrawn from any Benefit
Plan; or (iv) engaged in any transaction that would give rise to liability under Section 4069 or Section 4212(c) of ERISA.

 

(e)          With
respect to each Benefit Plan (i) no such plan is a Multiemployer Plan; (ii) no such plan is a “multiple employer plan”
within the meaning of Section 413(c) of the Code or a “multiple employer welfare arrangement” (as defined in Section
3(40) of ERISA); and (iii) no such plan is subject to the minimum funding standards of Section 412 of the Code or Title IV of ERISA.

 

(f)          Other
than as required under Section 601 et. seq. of ERISA or other applicable Law, no Benefit Plan or other arrangement provides post-termination
or retiree welfare benefits to any individual for any reason.

 

(g)          There
is no pending or, to the Company’s Knowledge, threatened Action relating to a Benefit Plan (other than routine claims for
benefits), and no Benefit Plan has within the three years prior to the date hereof been the subject of an examination or audit
by a Governmental Authority or the subject of an application or filing under, or is a participant in, an amnesty, voluntary compliance,
self-correction or similar program sponsored by any Governmental Authority.

 

(h)          Each
Benefit Plan that is subject to Section 409A of the Code has been administered in compliance with its terms and the operational
and documentary requirements of Section 409A of the Code and all applicable regulatory guidance (including notices, rulings and
proposed and final regulations) thereunder. The Company does not have any obligation to gross up, indemnify or otherwise reimburse
any individual for any excise taxes, interest or penalties incurred pursuant to Section 409A of the Code.

 

(i)          Neither
the execution of this Agreement nor any of the transactions contemplated by this Agreement will (either alone or upon the occurrence
of any additional or subsequent events): (i) entitle any current or former director, officer, employee, independent contractor
or consultant of the Company to severance pay or any other payment; (ii) accelerate the time of payment, funding or vesting, or
increase the amount of compensation due to any such individual; (iii) increase the amount payable under or result in any other
material obligation pursuant to any Benefit Plan; (iv) result in “excess parachute payments” within the meaning of
Section 280G(b) of the Code; or (v) require a “gross-up” or other payment to any “disqualified individual”
within the meaning of Section 280G(c) of the Code.

 

    	 	19	 

     

    

 

Section 3.22         Employment
Matters.

 

(a)          .
The Company is not involved in any strike, labor dispute, work stoppage, work slowdown, lockout, or similar labor matter or, to
the Knowledge of the Company, is any such dispute, slowdown, lockout or other matter threatened. To the Knowledge of the Company,
none of the Company’s employees is a member of a union, works council or labor organization. There are no labor agreements,
collective bargaining agreements, or other labor Contracts applicable to any employees of the Company or by which the Company is
bound, and no discussions or negotiations have occurred with respect thereto by the Company any Union within the prior four years.

 

(b)          No
employees of the Company are represented by any Union and no Union claims to represent a majority of any employees of the Company
in a bargaining unit of any of the Company.

 

(c)          There
are no current or, to the Company's Knowledge, threatened representational campaigns or other organizing activities by any Union
seeking to become the collective bargaining representative of any employees of the Company, and there is no Union or labor organization
representation question or certification petition against the Company pending or, to the Company's Knowledge, threatened before
the National Labor Relations Board or any similar Governmental Authority.

 

(d)          The
Company is and has been in compliance in all material respects with all applicable Laws pertaining to employment and employment
practices, including all Laws relating to labor relations, equal employment opportunities, fair employment practices, terms and
conditions of employment, employment discrimination, harassment, retaliation, reasonable accommodation, disability rights or benefits,
worker classification as exempt or non-exempt and as employee rather than independent contractor, employment-related immigration
and authorization to work in the United States, wages, hours, employee benefits, overtime compensation, child labor, hiring, promotion
and termination of employees, working conditions, meal and break periods, privacy, occupational health and safety, notice of plant
closings or mass layoffs, affirmative action, employee waivers of liability, workers’ compensation, leaves of absence and
unemployment insurance (collectively “Employment Laws”).

 

(e)          All
individuals characterized and treated by the Company as independent contractors or consultants are properly treated and classified
as independent contractors under all applicable Employment Laws. All employees classified as exempt under applicable Employment
Laws, including the Fair Labor Standards Act and state and local wage and hour Laws, are properly classified in all material respects.

 

    	 	20	 

     

    

 

(f)          There
are no pending or, to the Company's Knowledge, threatened investigations, charges, complaints, Actions, suits or judicial, administrative,
or arbitral proceedings of any kind and in any forum by or on behalf of any employee or former employee of the Company, applicant
for employment, Person claiming to be an employee, or any classes of the foregoing, against the Company alleging a violation of,
or compliance with, any express or implied contract of employment or any Employment Laws.

 

(g)          The
Company is not currently engaged in, and has not engaged in, any unfair labor practices regarding any employees of the Company
and there is no pending or, to the Company's Knowledge, threatened proceeding involving any unfair labor practices regarding any
employees of the Company before the National Labor Relations Board or any similar Governmental Authority, nor are there any actual
or threatened grievances or arbitration proceedings arising out of or under any collective bargaining agreement pending against
the Company.

 

(h)          The
Company has timely paid or properly accrued for all wages, salaries, commissions, bonuses, severance pay, vacation pay and other
paid time off, benefits, and any other compensation or remuneration owed to employees of the Company for or on account of employment.

 

(i)          Within
the previous four years, the Company has not experienced a "plant closing" or "mass layoff" as defined by the
Worker Adjustment and Retraining Notification Act (“WARN”) or been required to provide any notice, pay, or benefits
to employees or former employees under any other applicable Law governing mass layoffs and, with respect to any such "plant
closing" or "mass layoff," the Company has complied with the notice requirements of WARN and applicable Law.

 

(j)          No
severance payment, stay-on or incentive payment, change-in-control payment, vacation or other paid leave payment, or similar payment
or obligation will be owed by the Company to any of its directors, officers, employees, agents, contractors, consultants, or any
other Person upon consummation of, or as a result of, the transactions contemplated by this Agreement, nor will any such director,
officer, employee, agent, contractor, consultant, or any other Person be entitled to any such payments a result of the transactions
contemplated by this Agreement in the event of the termination of his or her employment or relationship.

 

Section 3.23         No
Registration Required. Assuming the accuracy of the representations and warranties of Purchaser contained in this Agreement,
the sale and issuance of the shares pursuant to this Agreement is exempt from the registration requirements of the Securities
Act, and neither the Company nor, to the Company’s knowledge, any authorized Representative acting on its behalf has taken
or will take any action hereafter that would cause the loss of such exemption.

 

Section 3.24         No
Integration. Neither the Company nor any of its Affiliates has, directly or indirectly through any agent, made any offers
or sales of any security of the Company or solicited any offers to buy any security that is or will be integrated with the sale
of the Shares in a manner that would require such registration under the Securities Act.

 

    	 	21	 

     

    

 

Section 3.25         No
Side Agreements. There are no agreements by the Company, on the one hand, and Purchaser or any of their Affiliates, on the
other hand, with respect to the transactions contemplated hereby other than the Transaction Documents, nor promises or inducements
for future transactions between or among any of such parties.

 

Section 3.26         NASDAQ
Listing of Shares. As of the Closing Date, the Shares will be approved for listing, subject to
official notice of issuance, on the NASDAQ Capital Market.

 

Section 3.27         Taxes.
Except as set forth in Section 3.27 of the Disclosure Schedules:

 

(a)          The
Company has timely filed all Tax Returns that it was required to file. All such Tax Returns were complete and correct in all respects.
All Taxes due and owing by the Company (whether or not shown on any Tax Return) have been timely paid.

 

(b)          The
Company has withheld and paid each Tax required to have been withheld and paid in connection with amounts paid or owing to any
employee, independent contractor, creditor, customer, stockholder or other party, and complied with all information reporting and
backup withholding provisions of applicable Law.

 

(c)          No
extensions or waivers of statutes of limitations have been given or requested with respect to any Taxes of the Company.

 

(d)          All
deficiencies asserted, or assessments made, against the Company as a result of any examinations by any taxing authority have been
fully paid.

 

(e)          The
Company is not a party to any Action by any taxing authority. There are no pending or threatened Actions by any taxing authority.

 

(f)          The
Company has not been a member of an affiliated, combined, consolidated or unitary Tax group for Tax purposes. The Company has no
Liability for Taxes of any Person (other than the Company) under Treasury Regulations Section 1.1502-6 (or any corresponding provision
of state, local or foreign Law), as transferee or successor, by contract or otherwise.

 

Section 3.28         Books
and Records. The minute books and stock record books of the Company, all of which have been made available to Purchaser, are
complete and correct and have been maintained in accordance with sound business practices. The minute books of the Company contain,
in all material respects, accurate and complete records of all meetings, and actions taken by written consent of, the stockholders,
the board of directors and any committees of the board of directors of the Company, and no meeting, or action taken by written
consent, of any such stockholders, board of directors or committee has been held for which minutes have not been prepared and
are not contained in such minute books.

 

    	 	22	 

     

    

 

Section 3.29         Brokers.
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 or any other Transaction Document based upon arrangements made by or on behalf
of the Company.

 

Section 3.30         Related
Party Transactions. Except as disclosed in the SEC Documents, there are no business relationships or related party transactions
involving the Company or any other person required to be described in the SEC Documents that have not been described as required.

 

Section 3.31         Money
Laundering Laws. The Company has not, and, to the Company’s Knowledge, none of the officers, directors, employees or
agents purporting to act on behalf of the Company or one of its Subsidiaries, as applicable, has, made any payment of funds of
the Company or one of its Subsidiaries or received or retained any funds in violation of any law, rule or regulation relating
to the “know your customer” and anti-money laundering laws of any jurisdiction (collectively, the “Money
Laundering Laws”) and no action, suit or proceeding by or before any Governmental Authority involving the Company or
one of its Subsidiaries with respect to the Money Laundering Laws is pending or, to the Company’s Knowledge, threatened.

 

Section 3.32         OFAC.
The Company has not, and, to the Company’s Knowledge, none of the respective directors, officers, agents or employees
purporting to act on behalf of the Company or one of its Subsidiaries, as applicable, is currently the target of or reasonably
likely to become the target of any U.S. sanctions administered by the Office of Foreign Assets Control of the U.S. Department
of the Treasury (“OFAC”); and the Company and its Subsidiaries will not directly or indirectly use the proceeds
of the sale of the Shares hereunder, or lend, contribute or otherwise make available such proceeds to any subsidiary, joint venture
partner or other person or entity, for the purpose of financing the activities of any person currently the target of any U.S.
sanctions administered by OFAC.

 

Section 3.33         Investment
Company Act. The Company is not, nor upon the sale of the Shares as contemplated herein and the application of the net proceeds
therefrom, will the Company be, an “investment company” or an entity “controlled” by an “investment
company” (as such terms are defined in the Investment Company Act of 1940, as amended, and the rules and regulations promulgated
thereunder).

 

Section 3.34         Foreign
Corrupt Practices Act. Neither the Company nor any of the directors, employees or officers of the Company or, to the Company’s
Knowledge, any other person acting on behalf of the Company has, directly or indirectly, given or agreed to give any money, gift
or similar benefit (other than legal price concessions to customers in the ordinary course of business) to any customer, supplier,
employee or agent of a customer or supplier, or official or employee of any governmental agency or instrumentality of any government
(domestic or foreign) or any political party or candidate for office (domestic or foreign) or any political party or candidate
for office (domestic or foreign) or other person who was, is, or may be in a position to help or hinder the business of the Company
(or assist it in connection with any actual or proposed transaction) that (i) might subject the Company to any damage or penalty
in any civil, criminal or governmental litigation or proceeding, (ii) if not given in the past, might have had a Material Adverse
Effect as reflected in any of the Financial Statements or (iii) if not continued in the future, might have a Material Adverse
Effect. The Company has taken reasonable steps to ensure that its accounting controls and procedures are sufficient to cause the
Company to comply in all material respects with the Foreign Corrupt Practices Act of 1977, as amended.

 

    	 	23	 

     

    

 

Section 3.35         Officer’s
Certificate. Any certificate pursuant to this Agreement signed by any duly authorized officer of the Company and delivered
to Purchaser shall be deemed a representation and warranty by the Company to Purchaser as to the matters covered thereby).

 

Article
IV

Representations and Warranties of Purchaser

 

Purchaser represents
and warrants to the Company that the statements contained in this Article IV are true and correct as of the date hereof.

 

Section 4.01         Organization
and Authority of Purchaser. Purchaser is a limited liability company duly organized, validly existing and in good standing
under the Laws of the State of Delaware. Purchaser has full limited liability company power and authority to enter into this Agreement
and the other Transaction Documents to which Purchaser is a party, to carry out its obligations hereunder and thereunder and to
consummate the transactions contemplated hereby and thereby. The execution and delivery by Purchaser of this Agreement and any
other Transaction Document to which Purchaser is a party, the performance by Purchaser of its obligations hereunder and thereunder
and the consummation by Purchaser of the transactions contemplated hereby and thereby have been duly authorized by all requisite
corporate action on the part of Purchaser. This Agreement has been duly executed and delivered by Purchaser, and (assuming due
authorization, execution and delivery by the Company) this Agreement constitutes a legal, valid and binding obligation of Purchaser
enforceable against Purchaser in accordance with its terms, except as such enforceability may be limited by general principles
of equity or applicable bankruptcy, insolvency, reorganization, moratorium, liquidation, usury and other similar laws relating
to, or affecting generally, the enforcement of applicable creditors’ rights and remedies. When each other Transaction Document
to which Purchaser is or will be a party has been duly executed and delivered by Purchaser (assuming due authorization, execution
and delivery by each other party thereto), such Transaction Document will constitute a legal and binding obligation of Purchaser
enforceable against it in accordance with its terms, except as such enforceability may be limited by general principles of equity
or applicable bankruptcy, insolvency, reorganization, moratorium, liquidation, usury and other similar laws relating to, or affecting
generally, the enforcement of applicable creditors’ rights and remedies.

 

    	 	24	 

     

    

 

Section 4.02         No
Conflicts; Consents. The execution, delivery and performance by Purchaser of this Agreement and the other Transaction Documents
to which it is a party, and the consummation of the transactions contemplated hereby and thereby, do not and will not: (a) conflict
with or result in a violation or breach of, or default under, any provision of the organizational documents of Purchaser; (b)
conflict with or result in a violation or breach of any provision of any Law or Governmental Order applicable to Purchaser; or
(c) require the consent, notice or other action by any Person under any Contract to which Purchaser is a party. No consent, approval,
Permit, Governmental Order, declaration or filing with, or notice to, any Governmental Authority is required by or with respect
to Purchaser in connection with the execution and delivery of this Agreement and the other Transaction Documents and the consummation
of the transactions contemplated hereby and thereby.

 

Section 4.03         Investment
Purpose. Purchaser is acquiring the Shares solely for its own account for investment purposes and not with a view to, or for
offer or sale in connection with, any distribution thereof. Purchaser acknowledges that the Shares are not registered under the
Securities Act of 1933, as amended, or any state securities laws, and that the Shares may not be transferred or sold except pursuant
to the registration provisions of the Securities Act of 1933, as amended, or pursuant to an applicable exemption therefrom and
subject to state securities laws and regulations, as applicable.

 

Section 4.04         Brokers.
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 or any other Transaction Document based upon arrangements made by or on behalf
of Purchaser.

 

Section 4.05         Legend.
Purchaser understands that the book entry evidencing the Shares will bear the following legend: “THESE SECURITIES HAVE
NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED, OR UNDER ANY STATE SECURITIES OR BLUE SKY LAWS. THE SECURITIES
ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE AND MAY NOT BE OFFERED, SOLD, PLEDGED, HYPOTHECATED OR OTHERWISE TRANSFERRED
EXCEPT AS PERMITTED UNDER THE SECURITIES ACT AND APPLICABLE STATE SECURITIES OR BLUE SKY LAWS, PURSUANT TO REGISTRATION OR EXEMPTION
THEREFROM. THE COMPANY MAY REQUIRE AN OPINION OF COUNSEL IN FORM AND SUBSTANCE REASONABLY SATISFACTORY TO THE COMPANY TO THE EFFECT
THAT ANY PROPOSED TRANSFER IS IN COMPLIANCE WITH THE SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES OR BLUE SKY LAWS.”

 

    	 	25	 

     

    

 

Section 4.06         Accredited
Investor Status. Purchaser is an “accredited investor” as that term is defined in Rule 501(a) of Regulation D,
as promulgated under the Securities Act.

 

Section 4.07         SEC
Documents. Purchaser acknowledges and agrees that the Company has provided or made available to Purchaser (through EDGAR,
the Company’s website or otherwise) all SEC Documents, as well as all press releases or investor presentations issued by
the Company through the date of this Agreement that are included in a filing by the Company on Form 8-K or clearly posted on the
Company’s website.

 

Article
V

Conditions to closing

 

Section 5.01         Conditions
to Obligations of All Parties. The obligations of each party to consummate the transactions contemplated by this Agreement
shall be subject to the fulfillment, at or prior to the Closing Date, of each of the following conditions:

 

(a)          No
Governmental Authority shall have enacted, issued, promulgated, enforced or entered any Governmental Order which is in effect and
has the effect of making the transactions contemplated by this Agreement illegal, otherwise restraining or prohibiting consummation
of such transactions or causing any of the transactions contemplated hereunder to be rescinded following completion thereof.

 

(b)          This
Agreement and each of the other Transaction Documents shall have been executed and delivered by the parties thereto and true and
complete copies thereof shall have been delivered to the parties.

 

(c)          The
contemporaneous closing of the transactions contemplated by the National Securities Purchase Agreement.

 

Section 5.02         Conditions
to Obligations of Purchaser. The obligations of Purchaser to consummate the transactions contemplated by this Agreement shall
be subject to the fulfillment or Purchaser’s waiver, at or prior to the Closing, of each of the following conditions:

 

(a)          The
Company shall have obtained all governmental, regulatory or third party consents and approvals necessary for the sale of the Shares.

 

(b)          Purchaser
shall have received a certificate duly executed by the President and Chief Executive Officer of the Company, dated as of the Closing,
certifying:

 

(i)          
all representations and warranties of the Company shall be true and correct in all material respects as of the date hereof and
at and as of the Closing Date, with the same force and effect as though made on and as of the Closing Date; and

 

(ii)         the
Company shall have performed all obligations and agreements and complied with all covenants and conditions contained in this Agreement
to be performed or complied with by it prior to the Closing Date.

 

    	 	26	 

     

    

 

(c)          Purchaser
shall have received a certificate duly executed by the secretary or an assistant secretary (or equivalent officer) of the Company,
dated as of the Closing, certifying:

 

(i)          that
attached thereto are true and complete copies of all resolutions and other consents adopted by the board of directors and stockholders
of the Company authorizing and approving the execution, delivery, filing and performance of this Agreement and the other Transaction
Documents and the consummation of the transactions contemplated hereby and thereby, and that all such resolutions and consents
are in full force and effect as of the Closing and are all the resolutions and consents adopted in connection with the transactions
contemplated hereby and thereby;

 

(ii)         that
attached thereto are true and complete copies of the Certificate of Incorporation and Bylaws of the Company and that such organizational
documents are in full force and effect as of the Closing; and

 

(iii)        the
names and signatures of the officers of the Company authorized to sign this Agreement, the Transaction Documents and the other
documents to be delivered hereunder and thereunder.

 

(d)          The
Company shall have delivered to Purchaser (i) a good standing certificate (or its equivalent) for the Company and each of the Subsidiaries
from the secretary of state of the State of Delaware and (ii) a foreign qualification certificate (or its equivalent) for the Company
and each of the Subsidiaries from the secretary of state or similar Governmental Authority of each jurisdiction in which the Company
has qualified, or is required to qualify, to do business as a foreign corporation.

 

(e)          The
Company shall have delivered, or caused to be delivered, to Purchaser each of the following, each in form and substance satisfactory
to Purchaser:

 

(i)          evidence
of the Shares credited to book-entry accounts maintained by the Transfer Agent, bearing the legend or restrictive notation set
forth in Section 4.05 of this Agreement, free and clear of all Encumbrances, other than transfer restrictions under the
Transaction Documents, the Bylaws and applicable federal and state securities laws;

 

(ii)         an
opinion of legal counsel to the Company, dated as of the Closing Date, satisfactory to Purchaser; and

 

(iii)        such
other documents or instruments as Purchaser reasonably requests and are reasonably necessary to consummate the transactions contemplated
by this Agreement.

 

(f)          The
Company shall have fully complied with, or obtained appropriate consents or waivers with respect to, its obligations under each
of the agreements or other documents identified on Section 3.02(c) of the Disclosure Schedules, including with respect to
any outstanding rights of first refusal, rights of first offer, pre-emptive rights or anti-dilution rights or redemption or repurchase
rights.

 

(g)          The
NASDAQ shall have authorized, upon official notice of issuance, the listing of the Shares.

 

    	 	27	 

     

    

 

(h)          No
notice of delisting from the NASDAQ shall have been received by the Company with respect to the Shares.

 

(i)          The
Shares shall not have been suspended by the SEC or the NASDAQ from trading on the NASDAQ nor shall suspension by the SEC or the
NASDAQ have been threatened in writing by the SEC or the NASDAQ.

 

Section 5.03         Conditions
to Obligations of the Company. The obligations of the Company to consummate the transactions contemplated by this Agreement
shall be subject to the fulfillment or the Company’s waiver, at or prior to the Closing, of each of the following conditions:

 

(a)          The
Company shall have received a certificate duly executed by an officer of Purchaser, dated as of the Closing, certifying:

 

(i)          all
representations and warranties of Purchaser shall be true and correct in all material respects as of the date hereof and at and
as of the Closing Date, with the same force and effect as though made on and as of the Closing Date; and

 

(ii)         Purchaser
shall have performed all obligations and agreements and complied with all covenants and conditions contained in this Agreement
to be performed or complied with by it prior to the Closing Date.

 

(b)          The
Company shall have received a certificate duly executed by the secretary or an assistant secretary (or equivalent officer) of Purchaser,
dated as of the Closing, certifying:

 

(i)          the
names and signatures of the officers of Purchaser authorized to sign this Agreement, the other Transaction Documents and the other
documents to be delivered hereunder and thereunder.

 

(c)          Purchaser
shall have delivered to the Company cash in an amount equal to the Purchase Price by wire transfer in immediately available funds,
to an account or accounts designated in writing by the Company to Purchaser.

 

Article
VI

Covenants

 

Section 6.01         Appointment
of Director. Following the Closing and before its next annual meeting of stockholders, the Company shall appoint a new independent
director to its board of directors and audit committee in order to regain compliance with NASDAQ Listing Rule 5605(b)(1) and NASDAQ
Listing Rule 5605(c)(2).

 

    	 	28	 

     

    

 

Section 6.02         Taking
of Necessary Action. Each of the parties hereto shall use its commercially reasonable efforts promptly to take or cause to
be taken all action and promptly to do or cause to be done all things necessary, proper or advisable under applicable Law and
regulations to consummate and make effective the transactions contemplated by this Agreement. Without limiting the foregoing,
the Company and Purchaser shall each use its commercially reasonable efforts to make all filings and obtain all consents of Governmental
Authorities that may be necessary or, in the reasonable opinion of the other parties, as the case may be, advisable for the consummation
of the transactions contemplated by the Transaction Documents. The Company shall promptly and accurately respond, and shall use
its commercially reasonable efforts to cause its transfer agent to respond, to reasonable requests for information (which is otherwise
not publicly available) made by Purchaser or its auditors relating to the actual holdings of Purchaser or its accounts; provided,
that the Company shall not be obligated to provide any such information that could reasonably result in a violation of applicable
Law or conflict with the Company’s insider trading policy or a confidentiality obligation of the Company. The Company shall
use its commercially reasonable efforts to cause its transfer agent to reasonably cooperate with Purchaser to ensure that the
Shares are validly and effectively issued to Purchaser and that Purchaser’s ownership of the Shares following the Closing
is accurately reflected on the appropriate books and records of the Company’s transfer agent.

 

Section 6.03         Supplemental
Listing Application. The Company shall file prior to the Closing a supplemental listing application with the NASDAQ to list
the Shares.

 

Section 6.04         Further
Assurances. Following the Closing, each of the parties hereto shall, and shall cause their respective Affiliates to, execute
and deliver such additional documents, instruments, conveyances and assurances and take such further actions as may be reasonably
required to carry out the provisions hereof and give effect to the transactions contemplated by this Agreement.

 

Article
VII

Indemnification

 

Section 7.01         Survival.
Subject to the limitations and other provisions of this Agreement, the representations, warranties and covenants contained
herein shall survive the Closing and shall remain in full force and effect until the date that is two (2) years from the Closing
Date; provided, that the representations and warranties in Section 3.17, Section 3.20, Section 3.21,
Section 3.22 and Section 3.27 shall survive for the full period of all applicable statutes of limitations (giving
effect to any waiver, mitigation or extension thereof) plus 60 days. All covenants and agreements of the parties contained herein
shall survive the Closing indefinitely or for the period explicitly specified therein. Notwithstanding the foregoing, any claims
asserted in good faith with reasonable specificity (to the extent known at such time) and in writing by notice from the non-breaching
party to the breaching party prior to the expiration date of the applicable survival period shall not thereafter be barred by
the expiration of the relevant representation or warranty and such claims shall survive until finally resolved.

 

    	 	29	 

     

    

 

Section 7.02         Indemnification
By Company. Subject to the other terms and conditions of this Article VII, the Company shall indemnify and defend each
of Purchaser and its Affiliates and their respective Representatives (collectively, the “Purchaser Indemnitees”)
against, and shall hold each of them harmless from and against, and shall pay and reimburse each of them for, any and all Losses
incurred or sustained by, or imposed upon, the Purchaser Indemnitees based upon, arising out of, with respect to or by reason
of:

 

(a)          any
inaccuracy in or breach of any of the representations or warranties of the Company contained in this Agreement or in any certificate
or instrument delivered by or on behalf of the Company pursuant to this Agreement; or

 

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

 

The indemnity contained in this Section
7.02 shall not apply to amounts paid in settlement of any Loss if such settlement is effected without the prior written consent
of the Company, which consent shall not be unreasonably withheld, delayed or conditioned. Notwithstanding the foregoing sentence,
if at any time any Purchaser Indemnitee shall have requested the Company to reimburse such Purchaser Indemnitee for any Loss as
contemplated by this Section 7.02, the Company agrees that it shall be liable for any settlement of Loss effected without
its written consent if (i) such settlement is entered into more than 60 days after receipt by the Company of the aforesaid request
and (ii) the Company shall not have reimbursed the Purchaser Indemnitee in accordance with such request or disputed in good faith
the Purchaser Indemnitee’s entitlement to such reimbursement prior to the date of such settlement.

 

Section 7.03         Payments.
Once a Loss is agreed to by the Company or finally adjudicated to be payable pursuant to this Article VII, the Company
shall satisfy its obligations within fifteen (15) Business Days of such final, non-appealable adjudication by wire transfer of
immediately available funds. The parties hereto agree that should the Company not make full payment of any such obligations within
such fifteen (15)-Business Day period, any amount payable shall accrue interest from and including the date of agreement of the
Company or final, non-appealable adjudication to the date such payment has been made at a rate of 18% per annum. Such interest
shall be calculated daily on the basis of a 365-day year and the actual number of days elapsed.

 

Section 7.04         Tax
Treatment of Indemnification Payments. All indemnification payments made under this Agreement shall be treated by the parties
as an adjustment to the Purchase Price for Tax purposes, unless otherwise required by Law.

 

Section 7.05         Effect
of Investigation. Neither the representations, warranties and covenants of the Company, nor the right to indemnification of
any Purchaser Indemnitee making a claim under this Article VII with respect thereto, shall be affected or deemed waived
by reason of any investigation made by or on behalf of a Purchaser Indemnitee (including by any of its Representatives) or by
reason of the fact that a Purchaser Indemnitee or any of its Representatives knew or should have known that any such representation
or warranty is, was or might be inaccurate or by reason of a Purchaser Indemnitee’s waiver of any condition set forth in
Section 5.02.

 

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Section 7.06         Exclusive
Remedies. Subject to Section 8.12, the parties acknowledge and agree that their sole and exclusive remedy with respect
to any and all claims (other than claims arising from fraud, criminal activity or willful misconduct on the part of a party hereto
in connection with the transactions contemplated by this Agreement) for any breach of any representation, warranty, covenant,
agreement or obligation set forth herein or otherwise relating to the subject matter of this Agreement, shall be pursuant to the
indemnification provisions set forth in this Article VII. In furtherance of the foregoing, each party hereby waives, to
the fullest extent permitted under Law, any and all rights, claims and causes of action for any breach of any representation,
warranty, covenant, agreement or obligation set forth herein or otherwise relating to the subject matter of this Agreement it
may have against the other parties hereto and their Affiliates and each of their respective Representatives arising under or based
upon any Law, except pursuant to the indemnification provisions set forth in this Article VII. Nothing in this Section
7.06 shall limit any Person’s right to seek and obtain any equitable relief to which any Person shall be entitled or
to seek any remedy on account of any party’s fraudulent, criminal or intentional misconduct.

 

Article
VIII

Miscellaneous

 

Section 8.01         Expenses.
Except as otherwise expressly provided herein, all costs and expenses, including, without limitation, fees and disbursements
of counsel, financial advisors and accountants, incurred in connection with this Agreement and the transactions contemplated hereby
shall be paid by the party incurring such costs and expenses, whether or not the Closing shall have occurred.

 

Section 8.02         Notices.
All notices, requests, consents, claims, demands, waivers and other communications hereunder shall be in writing and shall
be deemed to have been given (a) when delivered by hand (with written confirmation of receipt); (b) when received by the addressee
if sent by a nationally recognized overnight courier (receipt requested); (c) on the date sent by facsimile or e-mail of a PDF
document (with confirmation of transmission) if sent during normal business hours of the recipient, and on the next Business Day
if sent after normal business hours of the recipient or (d) on the third day after the date mailed, by certified or registered
mail, return receipt requested, postage prepaid. Such communications must be sent to the respective parties at the following addresses
(or at such other address for a party as shall be specified in a notice given in accordance with this Section 8.02):

 

    	 	31	 

     

    

 

	If to the Company:	
        1010 Atlantic Avenue

        Alameda, California 94501

        E-mail: Steve.Clarke@aquametals.com

        Attention: Stephen R. Clarke

	 	 
	with a copy to:	
        Greenberg Traurig, LLP

        3161 Michelson Drive, Suite 1000

        Irvine, California 92612

        Facsimile: (949) 732-6501

        E-mail: donahued@gtlaw.com

        Attention: Daniel K. Donahue, Esq.

	 	 
	If to Purchaser:	
        12770 Merit Drive, Suite 1000

        Dallas, Texas 75251

        Facsimile: (972) 455-6051

        E-mail: kelvin.sellers@ibsa.com

        Attention: Kelvin F. Sellers

	 	 
	with a copy to:	
        Thompson & Knight LLP

        1722 Routh Street, Suite 1500

        Dallas, Texas 75201

        Facsimile: (214) 999-1567

        E-mail: wesley.williams@tklaw.com

        Attention: Wesley P. Williams

 

Section 8.03         Interpretation.
For purposes of this Agreement, (a) the words “include,” “includes” and “including” shall
be deemed to be followed by the words “without limitation”; (b) the word “or” is not exclusive; and (c)
the words “herein,” “hereof,” “hereby,” “hereto” and “hereunder” refer
to this Agreement as a whole. Unless the context otherwise requires, references herein: (x) to Articles, Sections, Disclosure
Schedules and Exhibits mean the Articles and Sections of, and Disclosure Schedules and Exhibits attached to, this Agreement; (y)
to an agreement, instrument or other document means such agreement, instrument or other document as amended, supplemented and
modified from time to time to the extent permitted by the provisions thereof and (z) to a statute means such statute as amended
from time to time and includes any successor legislation thereto and any regulations promulgated thereunder. This Agreement shall
be construed without regard to any presumption or rule requiring construction or interpretation against the party drafting an
instrument or causing any instrument to be drafted. The Disclosure Schedules and Exhibits referred to herein shall be construed
with, and as an integral part of, this Agreement to the same extent as if they were set forth verbatim herein.

 

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Section 8.04         Removal
of Legend. The Company, at its sole cost, shall remove the legend described in Section 4.05 (or instruct its transfer
agent to so remove such legend) from the certificates evidencing the Shares issued and sold to Purchaser pursuant to this Agreement
if (A) such Shares are sold pursuant to an effective registration statement under the Securities Act, (B) such Shares are sold
or transferred pursuant to Rule 144 (if the transferor is not an Affiliate of the Company), or (C) such Shares are eligible for
sale under Rule 144, without the requirement for the Company to be in compliance with the current public information required
under Rule 144(c)(1) (or Rule 144(i)(2), if applicable) as to such securities and without volume or manner of sale restrictions.
In connection with a sale of the Shares by Purchaser in reliance on Rule 144, Purchaser or its broker shall deliver to the transfer
agent and the Company a customary broker representation letter providing to the transfer agent and the Company any information
the Company deems reasonably necessary to determine that the sale of the Shares is made in compliance with Rule 144, including,
where and as may be appropriate, a certification that the Purchaser is not an Affiliate of the Company and regarding the length
of time the Shares have been held. Upon receipt of such representation letter, the Company shall promptly direct its transfer
agent to remove the legend referred to in Section 4.05 within two (2) Business Days from the appropriate book-entry accounts
maintained by the transfer agent, and the Company shall bear all costs associated therewith. If Purchaser is not an Affiliate
of the Company and has held the Shares for at least one year, if the book-entry account of such Shares still bears the legend
referred to in Section 4.05, the Company agrees, upon request of Purchaser, to take all steps necessary to effect
the removal of the legend described in Section 4.05 within two (2) Business Days from the appropriate book-entry accounts
maintained by the transfer agent, and the Company shall bear all costs associated therewith, regardless of whether the request
is made in connection with a sale or otherwise, so long as Purchaser provides to the Company any information the Company deems
reasonably necessary to determine that the legend is no longer required under the Securities Act or applicable state laws, including
(if there is no such registration statement), where and as may be appropriate, a certification that the holder is not an Affiliate
of the Company and regarding the length of time the Shares have been held. The date by which such legend is so required to be
removed pursuant to this Section 8.04 is referred to herein as the “Required Legend Removal Date.”

 

Section 8.05         Headings.
The headings in this Agreement are for reference only and shall not affect the interpretation of this Agreement.

 

Section 8.06         Severability.
If any term or provision of this Agreement is invalid, illegal or unenforceable in any jurisdiction, such invalidity, illegality
or unenforceability shall not affect any other term or provision of this Agreement or invalidate or render unenforceable such
term or provision in any other jurisdiction. Upon such determination that any term or other provision is invalid, illegal or unenforceable,
the parties hereto shall negotiate in good faith to modify this Agreement so as to effect the original intent of the parties as
closely as possible in a mutually acceptable manner in order that the transactions contemplated hereby be consummated as originally
contemplated to the greatest extent possible.

 

    	 	33	 

     

    

 

Section 8.07         Entire
Agreement. This Agreement and the other Transaction Documents constitute the sole and entire agreement of the parties to this
Agreement with respect to the subject matter contained herein and therein, and supersede all prior and contemporaneous understandings
and agreements, both written and oral, with respect to such subject matter. In the event of any inconsistency between the statements
in the body of this Agreement and those in the other Transaction Documents, the Exhibits and Disclosure Schedules (other than
an exception expressly set forth as such in the Disclosure Schedules), the statements in the body of this Agreement will control.

 

Section 8.08         Successors
and Assigns. This Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective
successors and permitted assigns. Neither party may assign its rights or obligations hereunder without the prior written consent
of the other party, which consent shall not be unreasonably withheld or delayed; provided, that prior to the Closing Date,
Purchaser may, without the prior written consent of the Company, assign all or any portion of its rights under this Agreement
to one or more of its direct or indirect wholly-owned subsidiaries. No assignment shall relieve the assigning party of any of
its obligations hereunder.

 

Section 8.09         No
Third-party Beneficiaries. Except as provided in Article VII, this Agreement is for the sole benefit of the parties
hereto and their respective successors and permitted assigns and nothing herein, express or implied, is intended to or shall confer
upon any other Person or entity any legal or equitable right, benefit or remedy of any nature whatsoever under or by reason of
this Agreement.

 

Section 8.10         Amendment
and Modification; Waiver. This Agreement may only be amended, modified or supplemented by an agreement in writing signed by
each party hereto. No waiver by any party of any of the provisions hereof shall be effective unless explicitly set forth in writing
and signed by the party so waiving. No waiver by any party shall operate or be construed as a waiver in respect of any failure,
breach or default not expressly identified by such written waiver, whether of a similar or different character, and whether occurring
before or after that waiver. No failure to exercise, or delay in exercising, any right, remedy, power or privilege arising from
this Agreement shall operate or be construed as a waiver thereof; nor shall any single or partial exercise of any right, remedy,
power or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, remedy, power
or privilege.

 

    	 	34	 

     

    

 

Section 8.11         Governing
Law; Submission to Jurisdiction; Waiver of Jury Trial.

 

(a)          This
Agreement shall be governed by and construed in accordance with the internal laws of the State of Delaware without giving effect
to any choice or conflict of law provision or rule.

 

(b)          ANY
LEGAL SUIT, ACTION OR PROCEEDING ARISING OUT OF OR BASED UPON THIS AGREEMENT, THE OTHER TRANSACTION DOCUMENTS OR THE TRANSACTIONS
CONTEMPLATED HEREBY OR THEREBY MAY BE INSTITUTED IN THE FEDERAL COURTS OF THE UNITED STATES OF AMERICA OR THE COURTS OF THE STATE
OF TEXAS IN EACH CASE LOCATED IN THE CITY OF DALLAS AND COUNTY OF DALLAS, AND EACH PARTY IRREVOCABLY SUBMITS TO THE EXCLUSIVE JURISDICTION
OF 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 HEREIN SHALL BE EFFECTIVE SERVICE OF PROCESS FOR ANY SUIT, ACTION OR OTHER PROCEEDING BROUGHT IN ANY SUCH COURT.
THE PARTIES IRREVOCABLY AND UNCONDITIONALLY WAIVE ANY OBJECTION TO THE LAYING OF VENUE OF ANY 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.

 

(c)          EACH
PARTY ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY WHICH MAY ARISE UNDER THIS AGREEMENT OR THE OTHER TRANSACTION DOCUMENTS IS LIKELY
TO INVOLVE COMPLICATED AND DIFFICULT ISSUES AND, THEREFORE, EACH SUCH PARTY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT IT
MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LEGAL ACTION ARISING OUT OF OR RELATING TO THIS AGREEMENT, THE OTHER TRANSACTION
DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY. EACH PARTY TO THIS AGREEMENT CERTIFIES AND ACKNOWLEDGES THAT (A)
NO REPRESENTATIVE OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT SEEK TO ENFORCE THE
FOREGOING WAIVER IN THE EVENT OF A LEGAL ACTION, (B) SUCH PARTY HAS CONSIDERED THE IMPLICATIONS OF THIS WAIVER, (C) SUCH PARTY
MAKES THIS WAIVER VOLUNTARILY, AND (D) SUCH PARTY HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL
WAIVERS AND CERTIFICATIONS IN THIS SECTION 8.10(c).

 

Section 8.12         Specific
Performance. The parties agree that irreparable damage would occur if any provision of this Agreement were not performed in
accordance with the terms hereof and that the parties shall be entitled to specific performance of the terms hereof, in addition
to any other remedy to which they are entitled at law or in equity.

 

    	 	35	 

     

    

 

Section 8.13         Counterparts.
This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together shall
be deemed to be one and the same agreement. A signed copy of this Agreement delivered by facsimile, e-mail or other means of electronic
transmission shall be deemed to have the same legal effect as delivery of an original signed copy of this Agreement.

 

Section 8.14         Termination.

 

(a)          Notwithstanding
anything herein to the contrary, this Agreement may be terminated at any time at or prior to the Closing by Purchaser (with respect
to Purchaser only), upon a breach in any material respect by the Company of any covenant or agreement set forth in this Agreement.

 

(b)          Notwithstanding
anything herein to the contrary, this Agreement shall automatically terminate at any time at or prior to the Closing if a statute,
rule, order, decree or regulation shall have been enacted or promulgated, or if any action shall have been taken by any Governmental
Authority of competent jurisdiction that permanently restrains, permanently precludes, permanently enjoins or otherwise permanently
prohibits the consummation of the transactions contemplated by this Agreement or makes the transactions contemplated by this Agreement
illegal.

 

(c)          In
the event of the termination of this Agreement as provided in this Section 8.14, this Agreement shall forthwith become null
and void. In the event of such termination, there shall be no liability on the part of any party hereto, except as set forth in
Article VI of this Agreement.

 

Section
8.15         Recapitalization, Exchange, Etc. The provisions of this
Agreement shall apply to the full extent set forth herein with respect to any and all equity interests of the Company or any
successor or assign of the Company (whether by merger, consolidation, sale of assets or otherwise) that may be issued in
respect of, in exchange for or in substitution of, the Shares, and shall be appropriately adjusted for combinations, unit
splits, recapitalizations and the like occurring after the date of this Agreement.

 

    	 	36	 

     

    

 

Section 8.16         Failure
to Timely Deliver; Buy-In. If the Company improperly fails to remove the legend referred to in Section 4.05 by the
Required Legend Removal Date and if on or after the Business Day immediately following the Required Legend Removal Date the Purchaser
(or any other Person in respect, or on behalf, of Purchaser) purchases (in an open market transaction or otherwise) shares of
Common Stock to deliver in satisfaction of a sale by such Purchaser of all or any portion of the number of shares of Common Stock,
or a sale of a number of shares of Common Stock equal to all or any portion of the number of shares of Common Stock, that such
Purchaser so anticipated receiving from the Company without any restrictive legend, then, in addition to all other remedies available
to such Purchaser, the Company shall, within five (5) Business Days after such Purchaser’s request and in such Purchaser’s
sole discretion, either (x) pay cash to such Purchaser in an amount equal to such Purchaser’s total purchase price (including
brokerage commissions and other out-of-pocket expenses, if any) for the shares of Common Stock so purchased (including brokerage
commissions and other out-of-pocket expenses, if any) (the “Buy-In Price”), at which point the Company’s
obligation to so deliver such certificate or credit such Purchaser’s balance account shall terminate and such shares shall
be cancelled, or (y) promptly honor its obligation to remove the legend referred to in Section 4.05 from such number of
shares of Common Stock that would have been so delivered if the Company timely complied with its obligations hereunder and pay
cash to such Purchaser in an amount equal to the excess (if any) of the Buy-In Price over the product of (A) such number of Shares
that the Company was required to deliver to such Purchaser by the Required Legend Removal Date multiplied by (B) the lowest closing
sale price of the Common Stock on any Business Day during the period commencing on the date of the delivery by such Purchaser
to the Company of the applicable Shares and ending on the date of such delivery and payment under this clause (y).

 

[SIGNATURE PAGE FOLLOWS]

 

    	 	37	 

     

    

 

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

 

	 	COMPANY:
	 	 
	 	AQUA METALS, INC.
	 	 
	 	By:	/s/ Stephen R. Clarke
	 	Title:	  CEO
	 	 
	 	PURCHASER:
	 	 
	 	Interstate Emerging Investments, LLC
	 	 
	 	By: Interstate Batteries, Inc.,
	 	its sole member
	 	 
	 	By:	William McDade
	 	Title:	  CFO

 

Signature
Page to 

Stock
Purchase Agreement

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