Document:

Unassociated Document

 

Exhibit 10.48

 

SECOND AMENDMENT TO REAL ESTATE PURCHASE AND SALE CONTRACT

This Second Amendment to Real Estate Purchase and Sale Contract (“Amendment”) is made and entered into as of February 24, 2016, by and between Air Realty Group LLC, a Connecticut limited liability company (“Seller”) and Blue Desk LLC, a Michigan limited liability company (“Buyer”).

Recitals

	
  

	
A.

	
Buyer and Seller entered into a Real Estate Purchase and Sale Contract dated December 7, 2015, as amended by a First Amendment dated January 26, 2016 (the “Agreement”) for the sale and purchase of certain Real Property located at 283 Sullivan Avenue, South Windsor, Connecticut 06074.

	
  

	
B.

	
Seller and Buyer now desire to amend the Agreement in accordance with the terms and conditions set forth herein.

NOW, THEREFORE, in consideration of the covenants and agreements hereinafter set forth, and in furtherance of the parties understanding, it is agreed as follows:

1.           Closing.  The last sentence of Section (1)(a) of the Agreement is hereby amended and restated to read in its entirety as follows:

The Closing Date shall occur no later than March 31, 2016.

2.           Closing Date.  Section 4 of the Agreement is hereby amended and restated to read in its entirety as follows:

4.           Closing Date.  The Closing Date shall occur no later than March 31, 2016.

3.           Inspection Period.  Section (1)(i) of the Agreement is hereby amended and restated to read in its entirety as follows:

	
  

	
(i)

	
“Inspection Period” shall mean that period of time starting on the Effective Date of this Agreement and terminating at 6:00 PM eastern time on March 21, 2016.

4.           Inspections.  Section 8 of the Agreement is hereby amended and restated to read in its entirety as follows:

	
  

	
8.

	
Inspections.  Until the Closing Date, Buyer is authorized to complete various inspections of the Premises at Buyer’s expense, including but not limited to, a satisfactory environmental report, zoning analysis, building analysis, and soil tests, as well as a complete review of all contracts, licenses, permits, warranties, surveys, the title commitment and other matters deemed necessary by Buyer. Buyer may terminate the Purchase Agreement at any time on or before 6:00 PM eastern time on March 21, 2016 for any reason, or no reason, in which event the entire Initial Deposit shall be immediately returned to Buyer if the Purchase Agreement has not previously been terminated. Buyer through its agents, employees and independent contractors shall have the right from time to time until the Closing Date, upon 24 hours prior notice to Seller, to enter the Premises for the purpose of inspecting the same and performing environmental and other tests thereon. Buyer shall indemnify and hold harmless Seller and its respective contractors, agents, employees and affiliates from and against any claims, losses, damages and costs arising out of any inspection of and testing at any of the Premises by Buyer, its agents and representatives. Buyer shall not, and shall not permit its agents or representatives or vendors to unreasonably disrupt or hinder Seller’s activities at the Premises, or to enter the Premises without commercially reasonable liability insurance in place.

 

  

1

  

 

5.           Purchase Agreement in Full Force and Effect.  Except as specifically amended herein, all the terms and provisions of the Agreement are hereby ratified and affirmed to be in full force and effect as of the date hereof.  To the extent of any conflict between the Agreement, and this Amendment, the terms and provisions of this Amendment shall govern and control.  Capitalized terms not separately defined herein have the meaning otherwise ascribed to them in the Agreement.

6.           Counterparts.  This Amendment may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

[Remainder of page intentionally left blank]

 

  

2

  

 

SIGNATURE PAGE FOR SECOND AMENDMENT

TO REAL ESTATE PURCHASE AND SALE CONTRACT AMONG

AIR REALTY GROUP LLC AND

BLUE DESK LLC

IN WITNESS WHEREOF, the Parties have caused this Amendment to be executed effective as of the day and year first written above.

 

	 	 
SELLER:

AIR REALTY GROUP LLC,

a Connecticut limited liability company

 

By:  /s/ James Sartori

Name:  James Sartori

Its:  CAO

 

BUYER:

BLUE DESK LLC,

a Michigan limited liability company

 

By: /s/ Greg Sakwa

Name: Greg Sakwa

Title: Authorized Representative           

 

  

3Exhibit 10.1

 

SECURITIES
PURCHASE AGREEMENT

 

This
SECURITIES PURCHASE AGREEMENT (the “Agreement”), dated as of April 1, 2016, is by and among Nxt-ID,
Inc., a Delaware corporation with headquarters located at 285 North Drive Suite D Melbourne, FL 32934 (the “Company”),
and each of the investors listed on the Schedule of Buyers attached hereto (individually, a “Buyer” and collectively,
the “Buyers”).

 

RECITALS

 

A.          The
Company and each Buyer desire to enter into this transaction to purchase the Preferred Shares (as defined below) as set forth
herein.

 

B.          The
Company will sell and issue the Preferred Shares (as defined below) to each Buyer pursuant to a currently effective shelf registration
statement on Form S-3, which has at least $2,500,000 of unallocated securities, including Common Stock (as defined below), and
preferred stock, $0.0001 par value per share (the “Preferred Stock”) registered thereunder (File No. 333-203637)
(the “Registration Statement”), which Registration Statement has been declared effective in accordance with
the Securities Act of 1933, as amended (the “1933 Act”), by the United States Securities and Exchange Commission
(the “SEC”).

 

C.          The
Company has authorized a new series of convertible Preferred Stock of the Company designated as Series A Convertible Preferred
Stock, $0.0001 par value, the terms of which are set forth in the certificate of designations for such series of Preferred Stock
(the “Certificate of Designations”) in the form attached hereto as Exhibit A (together with any
convertible preferred shares issued in replacement thereof in accordance with the terms thereof, the “Series A Preferred
Shares”), which Series A Preferred Shares shall be convertible into Common Stock (such shares of Common Stock issuable
pursuant to the terms of the Certificate of Designations, including, without limitation, upon conversion or otherwise, collectively,
the “Conversion Shares”), in accordance with the terms of the Certificate of Designations.

 

D.          Each
Buyer wishes to purchase, and the Company wishes to sell, at the Closing (as defined below) upon the terms stated in this Agreement,
the aggregate number of Series A Preferred Shares set forth opposite such Buyer’s name in column (2) on the Schedule of
Buyers (which aggregate amount for all Buyers shall be 2,500,000 Series A Preferred Shares and shall collectively be referred
to herein as the “Preferred Shares”).

 

E.           The Preferred Shares and the Conversion Shares are collectively referred to herein as the “Securities.”

 

AGREEMENT

 

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

 

     

     

    

 

1.            PURCHASE AND SALE OF PREFERRED SHARES.

 

(a)         
Preferred Shares. The Company shall issue and sell to each Buyer, and each Buyer severally, but not jointly, shall purchase
from the Company on the Closing Date (as defined below), the aggregate number of Preferred Shares, as is set forth opposite such
Buyer’s name in column (2) on the Schedule of Buyers.

 

(b)         
Closing. The closing (the “Closing”) of the purchase of the Preferred Shares shall occur at the offices
of Robinson Brog Leinwand Greene Genovese & Gluck P.C., New York, NY 10022. The date and time of the Closing (the “Closing
Date”) shall be 10:00 a.m., New York time, on the third (3rd) business day after the date hereof (or such
earlier date as is mutually agreed to by the Company and each Buyer).

 

(c)         
Purchase Price. The aggregate purchase price for the Preferred Shares to be purchased by each Buyer at the Closing (the
“Purchase Price”) shall be the amount set forth opposite such Buyer’s name in column (3) on the Schedule
of Buyers.

  

(d)         
Reserved.

 

(e)         
Payment of Purchase Price; Deliveries. On the Closing Date, (x) each Buyer shall pay its respective Purchase Price to the
Company for the Preferred Shares to be issued and sold to such Buyer at the Closing, by wire transfer of immediately available
funds in accordance with the Company’s written wire instructions, (less, in the case of any applicable Buyer, the amounts
withheld pursuant to Section 4(j)), and (y) the Company shall (A) deliver to each Buyer certificates representing such aggregate
number of Preferred Shares as is set forth opposite such Buyer’s name in column (2) of the Schedule of Buyers, and (B) deliver
to each such Buyer the other documents, instruments and certificates set forth in Section 6 duly executed on behalf of the Company.

 

2.            BUYER’S REPRESENTATIONS AND WARRANTIES.

 

Each
Buyer, severally and not jointly, represents and warrants to the Company with respect to only itself that:

 

(a)          
Organization; Validity; Enforcement. Such Buyer is either an individual or an entity duly incorporated or formed, validly
existing and in good standing under the laws of the jurisdiction of its incorporation or formation with full right, corporate,
partnership, limited liability company or similar power and authority to enter into and to consummate the transactions contemplated
by this Agreement and otherwise to carry out its obligations hereunder. This Agreement has been duly and validly authorized, executed
and delivered on behalf of such Buyer and constitutes the legal, valid and binding obligations of such Buyer enforceable against
such Buyer in accordance with its terms, except as such enforceability may be limited by general principles of equity or to applicable
bankruptcy, insolvency, reorganization, moratorium, liquidation and other similar laws relating to, or affecting generally, the
enforcement of applicable creditors’ rights and remedies.

 

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

  

(c)          
Short Sale. Each Buyer represents and warrants to the Company that at no time prior to the date of this Agreement has any
Restricted Person (as defined herein) engaged in or effected, in any manner whatsoever, directly or indirectly, any (i) “short
sale” (as such term is defined in Rule 200 of Regulation SHO of the 1934 Act (as defined herein)) of the Common Stock or
(ii) hedging transaction, which establishes a Net Short Position (as defined herein) with respect to the Common Stock.

 

(d)          
Investment Purpose. Each Buyer is acquiring the Securities as principal for its own account and not with a view to or for
distributing or reselling such Securities or any part thereof in violation of 1933 Act or any applicable state securities law,
has no present intention of distributing any of such Securities in violation of the 1933 Act or any applicable state securities
law and has no direct or indirect arrangement or understandings with any other Persons to distribute or regarding the distribution
of such Securities in violation of the 1933 Act or any applicable state securities law (this representation and warranty not limiting
any Buyer’s right to sell the Securities at any time pursuant to any registration statement registering the resale thereof
or otherwise in compliance with applicable federal and state securities laws). Each Buyer is acquiring the Securities hereunder
in the ordinary course of its business.

 

(e)          
Accredited Buyer Status. Each Buyer is an "accredited Buyer" as that term is defined in Rule 501(a)(3) of Regulation
D promulgated under the 1933 Act.

 

(f)            Reserved.

 

(g)          
Information. Each Buyer understands that its investment in the Securities involves a high degree of risk. Each Buyer (i)
is able to bear the economic risk of an investment in the Securities including a total loss thereof, (ii) has such knowledge and
experience in financial and business matters that it is capable of evaluating the merits and risks of the proposed investment
in the Securities and (iii) has had an opportunity to ask questions of and receive answers from the officers of the Company concerning
the financial condition and business of the Company and others matters related to an investment in the Securities. Neither such
inquiries nor any other due diligence investigations conducted by the Buyers or their respective representatives shall modify,
amend or affect each Buyer's right to rely on the Company's representations and warranties contained in Section 3 below. Each
Buyer has sought such accounting, legal and tax advice as it has considered necessary to make an informed investment decision
with respect to its acquisition of the Securities.

 

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(h)          
Transfer or Sale. Each Buyer understands that (i) the Securities may not be offered for sale, sold, assigned or transferred
unless (A) registered pursuant to the 1933 Act or (B) an exemption exists permitting such Securities to be sold, assigned or transferred
without such registration; (ii) any sale of the Securities made in reliance on Rule 144 under the 1933 Act may be made only in
accordance with the terms of Rule 144 under the 1933 Act and further, if Rule 144 under the 1933 Act is not applicable, any resale
of the Securities under circumstances in which the seller (or the Person through whom the sale is made) may be deemed to be an
underwriter (as that term is defined in the1933 Act) may require compliance with some other exemption under the 1933 Act or the
rules and regulations of the SEC thereunder.

  

3.           REPRESENTATIONS AND WARRANTIES OF THE COMPANY.

 

The
Company represents and warrants to each of the Buyers that:

 

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

 

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(b)          
Authorization; Enforcement; Validity. The Company has the requisite power and authority to enter into and perform its obligations
under this Agreement and the other Transaction Documents and to issue the Securities in accordance with the terms hereof and thereof.
The execution and delivery of this Agreement and the other Transaction Documents by the Company and the consummation by the Company
of the transactions contemplated hereby and thereby (including, without limitation, the issuance of the Preferred Shares and the
reservation for issuance and issuance of the Conversion Shares issuable under the Certificate of Designations with respect to
the Preferred Shares,) have been duly authorized by the Company’s board of directors and (other than the filing with the
SEC of the prospectus supplement required by the Registration Statement pursuant to Rule 424(b) under the 1933 Act (the “Prospectus
Supplement”) supplementing the base prospectus forming part of the Registration Statement (the “Prospectus”)
and any other filings as may be required by the SEC and by any state securities agencies or the Principal Market (as defined below))
no further filing, consent or authorization is required by the Company, its board of directors or its stockholders or other governing
body. This Agreement has been, and the other Transaction Documents will be prior to the Closing, duly executed and delivered by
the Company, and each constitutes the legal, valid and binding obligations of the Company, enforceable against the Company in
accordance with its respective terms, except as such enforceability may be limited by general principles of equity or applicable
bankruptcy, insolvency, reorganization, moratorium, liquidation or similar laws relating to, or affecting generally, the enforcement
of applicable creditors’ rights and remedies and except as rights to indemnification and to contribution may be limited
by federal or state securities law. The Certificate of Designations in the form attached hereto as Exhibit A has been filed
with the Secretary of State of the State of Delaware and is in full force and effect, enforceable against the Company in accordance
with its terms and has not been amended. “Transaction Documents” means, collectively, this Agreement, the Certificate
of Designations, the Preferred Shares, the Irrevocable Transfer Agent Instructions (as defined below) and each of the other agreements
and instruments entered into or delivered by any of the parties hereto in connection with the transactions contemplated hereby
and thereby, as may be amended from time to time.

  

(c)          
Issuance of Securities; Registration Statement. The issuance of the Preferred Shares are duly authorized and, upon issuance
in accordance with the terms of the Transaction Documents, shall be validly issued, fully paid and non-assessable and free from
all preemptive or similar rights, mortgages, defects, claims, liens, pledges, charges, taxes, rights of first refusal, encumbrances,
security interests and other encumbrances (collectively “Liens”) with respect to the issuance thereof. As of
the Closing, the Company shall have reserved from its duly authorized capital stock not less than 100% of the sum of (i) the maximum
number of Conversion Shares issuable pursuant to the terms of the Certificate of Designations, including, without limitation,
upon conversion or otherwise (assuming for such purpose that (x) such Preferred Shares are convertible at the initial Conversion
Price (as defined in the Certificate of Designations), (y) dividends on the Preferred Shares shall accrue through the twelve month
anniversary of the Closing Date and will be converted in shares of Common Stock at a dividend conversion price equal to the initial
Conversion Price and (z) any such conversion shall not take into account any limitations on the conversion of the Preferred Shares
set forth in the Certificate of Designations) (the “Required Reserve Amount”). “Common Stock”
means (i) the Company’s shares of common stock, $0.0001 par value per share, and (ii) any capital stock into which
such common stock shall have been changed or any share capital resulting from a reclassification of such common stock. The issuance
of the Conversion Shares are duly authorized, and upon issuance in accordance with the Certificate of Designations, the Conversion
Shares when issued, will be validly issued, fully paid and non-assessable and free from all preemptive or similar rights, taxes
or Liens with respect to the issue thereof, with the holders being entitled to all rights accorded to a holder of Common Stock.
The issuance by the Company of the Securities have been registered under the 1933 Act, the Securities are being issued pursuant
to the Registration Statement and all of the Securities are freely transferable and freely tradable by each of the Buyers without
restriction, whether by way of registration or some exemption therefrom. The Registration Statement is effective and available
for the issuance of the Securities thereunder and the Company has not received any notice that the SEC has issued or intends to
issue a stop-order with respect to the Registration Statement or that the SEC otherwise has suspended or withdrawn the effectiveness
of the Registration Statement, either temporarily or permanently, or intends or has threatened in writing to do so. The “Plan
of Distribution” section under the Registration Statement permits the issuance and sale of the Securities hereunder and
as contemplated by the other Transaction Documents. Upon receipt of the Securities, each of the Buyers will have good and marketable
title to the Securities. The Registration Statement and any prospectus included therein, including the Prospectus and the Prospectus
Supplement, complied in all material respects with the requirements of the 1933 Act and the 1934 Act and the rules and regulations
of the SEC promulgated thereunder and all other applicable laws and regulations. At the time the Registration Statement and any
amendments thereto became effective, at the date of this Agreement and at each deemed effective date thereof pursuant to Rule
430B(f)(2) of the 1933 Act, the Registration Statement and any amendments thereto complied and will comply in all material respects
with the requirements of the 1933 Act and did not and will not contain any untrue statement of a material fact or omit to state
any material fact required to be stated therein or necessary to make the statements therein not misleading. The Prospectus and
any amendments or supplements thereto (including, without limitation the Prospectus Supplement), at the time the Prospectus or
any amendment or supplement thereto was issued and at the Closing Date, complied, and will comply, in all material respects with
the requirements of the 1933 Act and did not, and will not, contain any untrue statement of a material fact or omit to state a
material fact necessary in order to make the statements therein, in light of the circumstances under which they were made, not
misleading. The Company meets all of the requirements for the use of Form S-3 under the 1933 Act for the offering and sale of
the Securities contemplated by this Agreement and the other Transaction Documents, and the SEC has not notified the Company of
any objection to the use of the form of the Registration Statement pursuant to Rule 401(g)(1) under the 1933 Act. The Registration
Statement meets the requirements set forth in Rule 415(a)(1)(x) under the 1933 Act. At the earliest time after the filing of the
Registration Statement that the Company or another offering participant made a bona fide offer (within the meaning of Rule 164(h)(2)
under the 1933 Act) relating to any of the Securities, the Company was not and is not an “Ineligible Issuer” (as defined
in Rule 405 under the 1933 Act). The Company (i) has not distributed any offering material in connection with the offer or sale
of any of the Securities and (ii) until no Buyer holds any of the Securities, shall not distribute any offering material in connection
with the offer or sale of any of the Securities to, or by, any of the Buyers (if required), in each case, other than the Registration
Statement, the Prospectus or the Prospectus Supplement. The offering of the Securities have been registered with the SEC on Form
S-3 under the 1933 Act, and the Securities are being offered pursuant to Rule 415 promulgated under the 1933 Act. 

 

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(d)          
No Conflicts. The execution, delivery and performance of this Agreement and the other Transaction Documents by the Company
and the consummation by the Company of the transactions contemplated hereby and thereby (including, without limitation, the issuance
of the Securities and the reservation for issuance of the Conversion Shares) will not (i) result in a violation of the Certificate
of Incorporation (as defined below) (including, without limitation, any certificates of designation contained therein), the Certificate
of Designations or other organizational documents of the Company or any of its Subsidiaries, any capital stock of the Company,
or Bylaws (as defined below), (ii) conflict with, or constitute a default (or an event which with notice or lapse of time or both
would become a default) under, or give to others any rights of termination, amendment, acceleration or cancellation of, any agreement,
indenture or instrument to which the Company or any of its Subsidiaries is a party or (iii) result in a violation of any law,
rule, regulation, order, judgment or decree (including, without limitation, foreign, federal and state securities laws and regulations
and the rules and regulations of the Nasdaq Capital Market (the “Principal Market”)) applicable to the Company
or any of its Subsidiaries or by which any property or asset of the Company or any of its Subsidiaries is bound or affected, except,
in the case of clause (ii) or (iii) above, to the extent such violations that could not reasonably be expected to have a Material
Adverse Effect.

 

(e)           
Consents. Except as disclosed in the SEC Documents, the Company is not required to obtain any consent from, authorization
or order of, or make any filing or registration with (other than the filing with the SEC of the Prospectus Supplement and any
other filings as may be required by the 1933 Act, any state securities agencies and the rules and regulations of the Principal
Market, any court, Governmental Entity (as defined below) or any other regulatory or self-regulatory agency or any other Person
in order for it to execute, deliver or perform any of its obligations under, or contemplated by, the Transaction Documents, in
each case, in accordance with the terms hereof or thereof. All consents, authorizations, orders, filings and registrations which
the Company is required to obtain at or prior to the Closing have been obtained or effected on or prior to the Closing Date, and
neither the Company nor any of its Subsidiaries are aware of any facts or circumstances which might prevent the Company from obtaining
or effecting any of the registration, application or filings contemplated by the Transaction Documents. Except as disclosed in
the SEC Documents, the Company is not in violation of the requirements of the Principal Market and has no knowledge of any facts
or circumstances which could reasonably lead to delisting or suspension of the Common Stock in the foreseeable future. “Governmental
Entity” means any (i) nation, state, county, city, town, village, district, or other political jurisdiction of any nature;
(ii) federal, state, local, municipal, foreign, or other government; (iii) governmental or quasi-governmental authority of any
nature (including any governmental agency, branch, department, official, or entity and any court or other tribunal); (iv) multi-national
organization or body; or (v) body exercising, or entitled to exercise, any administrative, executive, judicial, legislative, police,
regulatory, or taxing authority or power of any nature or instrumentality of any of the foregoing, including any entity or enterprise
owned or controlled by a government or a public international organization or any of the foregoing.

 

(f)           
Acknowledgment Regarding Buyer’s Purchase of Securities. The Company acknowledges and agrees that each Buyer is acting
solely in the capacity of an arm’s length purchaser with respect to the Transaction Documents and the transactions contemplated
hereby and thereby and that no Buyer is (i) an officer or director of the Company or any of its Subsidiaries, (ii) an “affiliate”
(as defined in Rule 144 promulgated under the 1933 Act (or a successor rule thereto) (collectively, “Rule 144”))
of the Company or any of its Subsidiaries or (iii) to its knowledge, a “beneficial owner” of more than 10% of the
shares of Common Stock (as defined for purposes of Rule 13d-3 of the Securities Exchange Act of 1934, as amended (the “1934
Act”)). The Company further acknowledges that no Buyer is acting as a financial advisor or fiduciary of the Company
or any of its Subsidiaries (or in any similar capacity) with respect to the Transaction Documents and the transactions contemplated
hereby and thereby, and any advice given by a Buyer or any of its representatives or agents in connection with the Transaction
Documents and the transactions contemplated hereby and thereby is merely incidental to such Buyer’s purchase of the Securities.
The Company further represents to each Buyer that the Company’s decision to enter into the Transaction Documents has been
based solely on the independent evaluation by the Company and its representatives.

 

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(g)          
Placement Agent. Except for Aegis Capital Corp. (the “Placement Agent”), neither the Company nor any
of its Subsidiaries has engaged any placement agent or other agent in connection with the offer or sale of the Securities.

 

(h)          
No Integrated Offering. None of the Company, its Subsidiaries or any of their affiliates, nor any Person acting on their
behalf has, directly or indirectly, made any offers or sales of any security or solicited any offers to buy any security, under
circumstances that would cause this offering of the Securities to be integrated with prior offerings by the Company. None of the
Company, its Subsidiaries, their affiliates nor any Person acting on their behalf will take any action or steps that would cause
the offering of any of the Securities to be integrated with other offerings of securities of the Company.

  

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

  

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

 

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

  

    	 	8	 

     

    

 

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

 

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

 

(n)           
Conduct of Business; Regulatory Permits. Neither the Company nor any of its Subsidiaries is in violation of any term of
or in default under its Certificate of Incorporation, any certificate of designation, preferences or rights of any other outstanding
series of preferred stock of the Company or any of its Subsidiaries or Bylaws or their organizational charter, certificate of
formation or certificate of incorporation or bylaws, respectively. Neither the Company nor any of its Subsidiaries is in violation
of any judgment, decree or order or any statute, ordinance, rule or regulation applicable to the Company or any of its Subsidiaries,
and neither the Company nor any of its Subsidiaries will conduct its business in violation of any of the foregoing, except in
all cases for possible violations which could not, individually or in the aggregate, have a Material Adverse Effect. Without limiting
the generality of the foregoing, the Company is not in violation of any of the rules, regulations or requirements of the Principal
Market and has no knowledge of any facts or circumstances that could reasonably lead to delisting or suspension of the Common
Stock by the Principal Market in the foreseeable future. Since July 19, 2013, (i) the Common Stock has been listed or designated
for quotation on the Principal Market, (ii) trading in the Common Stock has not been suspended by the SEC or the Principal Market
and (iii) the Company has received no communication, written or oral, from the SEC or the Principal Market regarding the suspension
or delisting of the Common Stock from the Principal Market. The Company and each of its Subsidiaries possess all certificates,
authorizations and permits issued by the appropriate regulatory authorities necessary to conduct their respective businesses,
except where the failure to possess such certificates, authorizations or permits would not have, individually or in the aggregate,
a Material Adverse Effect, and neither the Company nor any such Subsidiary has received any notice of proceedings relating to
the revocation or modification of any such certificate, authorization or permit.

  

    	 	9	 

     

    

 

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

 

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

 

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

 

    	 	10	 

     

    

 

(r)           
Equity Capitalization. As of the date hereof, the authorized capital stock of the Company consists of (i) 100,000,000 shares
of Common Stock, of which, 57,344,870 are issued and outstanding and, except as disclosed in the SEC Documents, no shares are
reserved for issuance pursuant to securities (other than the Preferred Shares) exercisable or exchangeable for, or convertible
into, shares of Common Stock and (ii) 10,000,000 shares of preferred stock, of which none are issued and outstanding. All of such
outstanding shares are duly authorized and have been, or upon issuance will be, validly issued and are fully paid and non-assessable.
28,571,040 shares of the Company’s issued and outstanding Common Stock on the date hereof are owned by Persons who are “affiliates”
(as defined in Rule 405 of the 1933 Act and calculated based on the assumption that only officers, directors and holders of at
least 10% of the Company’s issued and outstanding Common Stock are “affiliates” without conceding that any such
Persons are “affiliates” for purposes of federal securities laws) of the Company or any of its Subsidiaries. Except
as disclosed in the SEC Documents, to the Company’s knowledge, no Person owns 10% or more of the Company’s issued
and outstanding shares of Common Stock without conceding that such identified Person is a 10% stockholder for purposes of federal
securities laws). (i) Except as disclosed in the SEC Documents, none of the Company’s or any Subsidiary’s capital
stock is subject to preemptive rights or any other similar rights or any Liens suffered or permitted by the Company or any Subsidiary;
(ii) except as set forth in the SEC Documents, there are no outstanding options, warrants, scrip, rights to subscribe to, calls
or commitments of any character whatsoever relating to, or securities or rights convertible into, or exercisable or exchangeable
for, any capital stock of the Company or any of its Subsidiaries, or contracts, commitments, understandings or arrangements by
which the Company or any of its Subsidiaries is or may become bound to issue additional capital stock of the Company or any of
its Subsidiaries or options, warrants, scrip, rights to subscribe to, calls or commitments of any character whatsoever relating
to, or securities or rights convertible into, or exercisable or exchangeable for, any capital stock of the Company or any of its
Subsidiaries; (iii) except as set forth in the SEC Documents, there are no outstanding debt securities, notes, credit agreements,
credit facilities or other agreements, documents or instruments evidencing material Indebtedness of the Company or any of its
Subsidiaries or by which the Company or any of its Subsidiaries is or may become bound; (iv) except as set forth in the SEC Documents,
there are no financing statements securing obligations in any amounts filed in connection with the Company or any of its Subsidiaries;
(v) except as set forth in the SEC Documents, there are no agreements or arrangements under which the Company or any of its Subsidiaries
is obligated to register the sale of any of their securities under the 1933 Act (except pursuant to this Agreement); (vi) except
as set forth in the SEC Documents, there are no outstanding securities or instruments of the Company or any of its Subsidiaries
which contain any redemption or similar provisions, and there are no contracts, commitments, understandings or arrangements by
which the Company or any of its Subsidiaries is or may become bound to redeem a security of the Company or any of its Subsidiaries;
(vii) except as set forth in the SEC documents, there are no securities or instruments containing anti-dilution or similar provisions
that will be triggered by the issuance of the Securities; (viii) except as set forth in the SEC documents, neither the Company
nor any Subsidiary has any stock appreciation rights or “phantom stock” plans or agreements or any similar plan or
agreement; and (ix) neither the Company nor any of its Subsidiaries have any liabilities or obligations required to be disclosed
in the SEC Documents which are not so disclosed in the SEC Documents, other than those incurred in the ordinary course of the
Company’s or its Subsidiaries’ respective businesses and which, individually or in the aggregate, do not or could
not have a Material Adverse Effect. The Company has furnished to the Buyers true, correct and complete copies of the Company’s
Certificate of Incorporation, as amended and as in effect on the date hereof (the “Certificate of Incorporation”),
and the Company’s bylaws, as amended and as in effect on the date hereof (the “Bylaws”).

  

    	 	11	 

     

    

 

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

 

(t)            
Litigation. Except as set forth in the SEC Documents, there is no action, suit, proceeding, inquiry or investigation before
or by the Principal Market, any court, public board, other Governmental Entity, self-regulatory organization or body pending or,
to the knowledge of the Company, threatened against or affecting the Company or any of its Subsidiaries, the Common Stock or any
of the Company’s or its Subsidiaries’ officers or directors, whether of a civil or criminal nature or otherwise, in
their capacities as such, which would have a Material Adverse Effect. No director, officer or employee of the Company or any of
its subsidiaries has willfully violated 18 U.S.C. §1519 or engaged in spoliation in reasonable anticipation of litigation.
Without limitation of the foregoing, there has not been, and to the knowledge of the Company, there is not pending or contemplated,
any investigation by the SEC involving the Company, any of its Subsidiaries or any current or former director or officer of the
Company or any of its Subsidiaries. The SEC has not issued any stop order or other order suspending the effectiveness of any registration
statement filed by the Company under the 1933 Act or the 1934 Act, including, without limitation, the Registration Statement.

  

    	 	12	 

     

    

 

(u)         
  Reserved.

 

(v)           
Employee Relations. Neither the Company nor any of its Subsidiaries is a party to any collective bargaining agreement or
employs any member of a union. The Company believes that its and its Subsidiaries’ relations with their respective employees
are good. No executive officer (as defined in Rule 501(f) promulgated under the 1933 Act) or other key employee of the Company
or any of its Subsidiaries has notified the Company or any such Subsidiary that such officer intends to leave the Company or any
such Subsidiary or otherwise terminate such officer’s employment with the Company or any such Subsidiary. The Company and
its Subsidiaries are in compliance with all federal, state, local and foreign laws and regulations respecting labor, employment
and employment practices and benefits, terms and conditions of employment and wages and hours, except where failure to be in compliance
would not, either individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect.

 

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

 

(x)            
Intellectual Property Rights. The Company and its Subsidiaries own or possess adequate rights or licenses to use all trademarks,
trade names, service marks, service mark registrations, service names, original works of authorship, patents, patent rights, copyrights,
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 their
respective businesses as now conducted and as presently proposed to be conducted. None of the Company’s or its Subsidiaries’
Intellectual Property Rights have expired, terminated or been abandoned, or are expected to expire, terminate or be abandoned,
within three years from the date of this Agreement. The Company has no knowledge of any infringement by the Company or any of
its Subsidiaries of Intellectual Property Rights of others. There is no claim, action or proceeding being made or brought, or
to the knowledge of the Company or any of its Subsidiaries, being threatened, against the Company or any of its Subsidiaries regarding
their Intellectual Property Rights. Neither the Company nor any of its Subsidiaries is aware of any facts or circumstances which
might give rise to any of the foregoing infringements or claims, actions or proceedings.

 

    	 	13	 

     

    

 

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

  

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

 

(aa)         
Tax Status. The Company and each of its Subsidiaries (i) has made or filed all foreign, federal and state income and all
other tax returns, reports and declarations required by any jurisdiction to which it is subject, (ii) has paid all taxes and other
governmental assessments and charges that are material in amount, shown or determined to be due on such returns, reports and declarations,
except those being contested in good faith and (iii) has set aside on its books provision reasonably adequate for the payment
of all taxes for periods subsequent to the periods to which such returns, reports or declarations apply. There are no unpaid taxes
in any material amount claimed to be due by the taxing authority of any jurisdiction, and the officers of the Company and its
Subsidiaries know of no basis for any such claim. The Company is not operated in such a manner as to qualify as a passive foreign
investment company, as defined in Section 1297 of the U.S. Internal Revenue Code of 1986, as amended.

 

    	 	14	 

     

    

 

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

 

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

 

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

 

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

  

(ff)          
U.S. Real Property Holding Corporation. Neither the Company nor any of its Subsidiaries is, or has ever been, and so long
as any of the Securities are held by any of the Buyers, shall become, a U.S. real property holding corporation within the meaning
of Section 897 of the Internal Revenue Code of 1986, as amended, and the Company and each Subsidiary shall so certify upon any
Buyer’s request.

 

    	 	15	 

     

    

 

(gg)        
Registration Eligibility. The Company is eligible to register the issuance and sale of the Preferred Share and the Conversion
Shares to the Buyers using Form S-3 promulgated under the 1933 Act.

 

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

 

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

 

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

 

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

 

(ll)           No Additional Agreements. Except as set forth in the SEC Documents, the Company does not have any agreement
or understanding with any Buyer with respect to the transactions contemplated by the Transaction Documents other than as specified
in the Transaction Documents.

  

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

 

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

 

    	 	16	 

     

    

 

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

 

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

  

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

 

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

 

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

 

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

 

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

 

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

 

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

 

    	 	17	 

     

    

 

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

 

(pp)       
Registration Rights. Except as set forth in the SEC Documents, no holder of securities of the Company has rights to the
registration of any securities of the Company because of the filing of the Registration Statement or the issuance of the Securities
hereunder that could expose the Company to material liability or any Buyer to any liability or that could impair the Company’s
ability to consummate the issuance and sale of the Securities in the manner, and at the times, contemplated hereby, which rights
have not been waived by the holder thereof as of the date hereof.

 

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

  

(rr)         
Reserved.

 

(ss)        
Reserved. 

 

4.            COVENANTS.

 

(a)          
Maintenance of Registration Statement   For so long as any of the Preferred Shares remain outstanding, the Company
shall use its reasonable best efforts to maintain the effectiveness of the Registration Statement for the issuance thereunder
of the Conversion Shares, provided that if at any time while the Preferred Shares are outstanding the Company shall be ineligible
to utilize Form S-3 (or any successor form) for the purpose of issuance of the Conversion Shares, the Company shall promptly amend
the Registration Statement on such other form as may be necessary to maintain the effectiveness of the Registration Statement
for this purpose. If at any time following the date hereof the Registration Statement is not effective or is not otherwise available
for the issuance of the Conversion Shares or any prospectus contained therein is not available for use, the Company shall immediately
notify the holders of the Preferred Shares in writing that the Registration Statement is not then effective or a prospectus contained
therein is not available for use and thereafter shall promptly notify such holders when the Registration Statement is effective
again and available for the issuance of the Conversion Shares or such prospectus is again available for use.

  

    	 	18	 

     

    

 

(b)         
Amendments to the Registration Statement; Prospectus Supplements; Free Writing Prospectuses.

 

(i)          Except
as provided in this Agreement and other than periodic reports required to be filed pursuant to the 1934 Act, the Company shall
not file with the SEC any amendment to the Registration Statement that relates to the Buyer, this Agreement or the other Transaction
Documents or the transactions contemplated hereby or thereby or file with the SEC any Prospectus Supplement that relates to the
Buyer, this Agreement or the other Transaction Documents or the transactions contemplated hereby or thereby with respect to which
(a) the Buyer shall not previously have been advised, (b) the Company shall not have given due consideration to any comments thereon
received from the Buyer or its counsel, or (c) the Buyer shall reasonably object after being so advised, unless the Company reasonably
has determined that it is necessary to amend the Registration Statement or make any supplement to the Prospectus to comply with
the 1933 Act or any other applicable law or regulation, in which case the Company shall promptly (but in no event later than 24
hours) so inform the Buyer, the Buyer shall be provided with a reasonable opportunity to review and comment upon any disclosure
relating to the Buyer and the Company shall expeditiously furnish to the Buyer an electronic copy thereof. In addition, for so
long as, in the reasonable opinion of counsel for the Buyer, the Prospectus (or in lieu thereof, the notice referred to in Rule
173(a) under the 1933 Act) is required to be delivered in connection with any acquisition or sale of the Preferred Shares or the
Conversion Shares by the Buyer, the Company shall not file any Prospectus Supplement with respect to such securities without delivering
or making available a copy of such Prospectus Supplement, together with the Prospectus, to the Buyer promptly.

 

(ii)         The
Company has not made, and agrees that unless it obtains the prior written consent of the Buyer it will not make, an offer relating
to the Securities that would constitute an “issuer free writing prospectus” as defined in Rule 433 promulgated under
the 1933 Act (an “Issuer Free Writing Prospectus”) or that would otherwise constitute a “free writing
prospectus” as defined in Rule 405 promulgated under the 1933 Act (a “Free Writing Prospectus”) required
to be filed by the Company or the Buyer with the SEC or retained by the Company or the Buyer under Rule 433 under the 1933 Act.
The Buyer has not made, and agrees that unless it obtains the prior written consent of the Company it will not make, an offer
relating to the Securities that would constitute a Free Writing Prospectus required to be filed by the Company with the SEC or
retained by the Company under Rule 433 under the 1933 Act. Any such Issuer Free Writing Prospectus or other Free Writing Prospectus
consented to by the Buyer or the Company is referred to in this Agreement as a “Permitted Free Writing Prospectus.”
The Company agrees that (x) it has treated and will treat, as the case may be, each Permitted Free Writing Prospectus as an Issuer
Free Writing Prospectus and (y) it has complied and will comply, as the case may be, with the requirements of Rules 164 and 433
under the 1933 Act applicable to any Permitted Free Writing Prospectus, including in respect of timely filing with the SEC, legending
and record keeping.

 

    	 	19	 

     

    

 

(c)          
Prospectus Delivery. As soon as practicable after execution of this Agreement the Company shall file, a Prospectus Supplement
with respect to the Securities to be issued on the Closing Date, as required under, and in conformity with, the 1933 Act, including
Rule 424(b) thereunder. The Company shall provide the Buyer a reasonable opportunity to comment on a draft of each Prospectus
Supplement and any Issuer Free Writing Prospectus, shall give due consideration to all such comments and, subject to the provisions
of Section 4(b) hereof, shall deliver or make available to the Buyer, without charge, an electronic copy of each form of Prospectus
Supplement, together with the Prospectus, and any Permitted Free Writing Prospectus on the Closing Date. The Company consents
to the use of the Prospectus (and of any Prospectus Supplements thereto) in accordance with the provisions of the 1933 Act and
with the securities or “blue sky” laws of the jurisdictions in which the Securities may be sold by the Buyer, in connection
with the offering and sale of the Securities and for such period of time thereafter as the Prospectus (or in lieu thereof, the
notice referred to in Rule 173(a) under the 1933 Act) is required by the 1933 Act to be delivered in connection with sales of
the Securities. If during such period of time any event shall occur that in the judgment of the Company and its counsel is required
to be set forth in the Registration Statement or the Prospectus or any Permitted Free Writing Prospectus or should be set forth
therein in order to make the statements made therein (in the case of the Prospectus, in light of the circumstances under which
they were made) not misleading, or if it is necessary to amend the Registration Statement or supplement or amend the Prospectus
or any Permitted Free Writing Prospectus to comply with the 1933 Act or any other applicable law or regulation, the Company shall
forthwith prepare and, subject to Section 4(b) above, file with the SEC an appropriate amendment to the Registration Statement
or Prospectus Supplement to the Prospectus (or supplement to the Permitted Free Writing Prospectus) and shall expeditiously furnish
or make available to the Buyer an electronic copy thereof.

  

(d)          
Stop Orders. The Company shall advise the Buyer as soon as practicable and shall confirm such advice in writing: (i) of
the Company’s receipt of notice of any request by the SEC for amendment of or a supplement to the Registration Statement,
the Prospectus, any Permitted Free Writing Prospectus or for any additional information; (ii) of the Company’s receipt of
notice of the issuance by the SEC of any stop order suspending the effectiveness of the Registration Statement or prohibiting
or suspending the use of the Prospectus or any Prospectus Supplement, or of the suspension of qualification of the Preferred Shares
for offering or sale in any jurisdiction, or the initiation or contemplated initiation of any proceeding for such purpose; (iii)
of the Company becoming aware of the happening of any event, which makes any statement of a material fact made in the Registration
Statement, the Prospectus or any Permitted Free Writing Prospectus untrue or which requires the making of any additions to or
changes to the statements then made in the Registration Statement, the Prospectus or any Permitted Free Writing Prospectus in
order to state a material fact required by the 1933 Act to be stated therein or necessary in order to make the statements then
made therein (in the case of the Prospectus, in light of the circumstances under which they were made) not misleading, or of the
necessity to amend the Registration Statement or supplement the Prospectus or any Permitted Free Writing Prospectus to comply
with the 1933 Act or any other law or (iv) if at any time following the date hereof the Registration Statement is not effective
or is not otherwise available for the issuance of the Conversion Shares or any Prospectus contained therein is not available for
use for any other reason. The Company shall not be required to disclose to the Buyer the substance or specific reasons of any
of the events set forth in clauses (i) through (iv) of the immediately preceding sentence, but rather, shall only be required
to disclose that the event has occurred. Thereafter, the Company shall promptly notify such holders when the Registration Statement,
the Prospectus, any Permitted Free Writing Prospectus and/or any amendment or supplement thereto, as applicable, is effective
and available for the issuance of the Conversion Shares. If at any time the SEC shall issue any stop order suspending the effectiveness
of the Registration Statement or prohibiting or suspending the use of the Prospectus or any Prospectus Supplement, the Company
shall use its reasonable best efforts to obtain the withdrawal of such order at the earliest possible time.

  

    	 	20	 

     

    

 

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

 

(f)           
Reporting Status. Until the date on which no Preferred Shares are outstanding (the “Reporting Period”),
the Company shall timely file (or obtain an extension in respect thereof and file within such extension period) all reports required
to be filed with the SEC pursuant to the 1934 Act, and the Company shall not terminate its status as an issuer required to file
reports under the 1934 Act even if the 1934 Act or the rules and regulations thereunder would no longer require such reports or
would otherwise permit such termination.

 

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

  

(h)          
Financial Information. The Company agrees to send the following to each Buyer during the Reporting Period, unless filed
with the SEC through EDGAR and are available to the public through the EDGAR system, (i) within two (2) Business Days after the
filing thereof with the SEC, a copy of its Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q, any interim reports
or any consolidated balance sheets, income statements, stockholders’ equity statements and/or cash flow statements for any
period other than annual, any Current Reports on Form 8-K and any registration statements (other than on Form S-8) or amendments
filed pursuant to the 1933 Act, (ii) on the same day as the release thereof, facsimile copies of all press releases issued by
the Company or any of its Subsidiaries and (iii) copies of any notices and other information made available or given to the stockholders
of the Company generally, contemporaneously with the making available or giving thereof to the stockholders.

 

    	 	21	 

     

    

 

(i)           
Listing. The Company shall promptly (but in no event later than the Closing Date) secure the listing or designation for
quotation (as the case may be) of all of the Underlying Securities upon each national securities exchange and automated quotation
system, if any, upon which the Common Stock is then listed or designated for quotation (as the case may be) (subject to official
notice of issuance) and shall use reasonable best efforts to maintain such listing or designation for quotation (as the case may
be) of all Underlying Securities from time to time issuable under the terms of the Transaction Documents on such national securities
exchange or automated quotation system. The Company shall use reasonable best efforts to maintain the Common Stock’s listing
or authorization for quotation (as the case may be) on the Principal Market, The New York Stock Exchange, the NYSE MKT, the Nasdaq
Global Market or the Nasdaq Global Select Market (each, an “Eligible Market”). Neither the Company nor any
of its Subsidiaries shall take any action which could be reasonably expected to result in the delisting or suspension of the Common
Stock on an Eligible Market. The Company shall pay all fees and expenses in connection with satisfying its obligations under this
Section 4(i). “Underlying Securities” means the (i) Conversion Shares, and (iii) any capital stock of the Company
issued or issuable with respect to the Conversion Shares, the Certificate of Designations, or the Preferred Shares, respectively,
including, without limitation, (1) as a result of any stock split, stock dividend, recapitalization, exchange or similar event
or otherwise and (2) shares of capital stock of the Company into which the shares of Common Stock are converted or exchanged and
shares of capital stock of a successor entity into which the shares of Common Stock are converted or exchanged, in each case,
without regard to any limitations on conversion of the Preferred Shares.

 

(j)           
Fees. The Company shall pay on the Closing Date all expenses incident to the performance of the obligations of the Company
under this Agreement, including, but not limited to: (a) all filing fees and communication expenses relating to the registration
of the Securities with the SEC; (b) all Public Filing System filing fees associated with FINRA’s review of the transactions
contemplated hereby (and the reasonable fees of FINRA counsel, but only up to $15,000); (c) all fees and expenses relating to
the listing of all such Common Stock underlying the Securities on the Principal Market and such other stock exchanges as the Company
and the Placement Agent together determine; (d) all fees, expenses and disbursements relating to background checks of the Company’s
officers and directors in an amount not to exceed $5,000 per individual and $15,000 in the aggregate; (e) all fees, expenses and
disbursements relating to the registration or qualification of the Securities under the “blue sky” securities laws
of such states and other jurisdictions as the Placement Agent may reasonably designate (including, without limitation, all filing
and registration fees, it being agreed that if the sale of Preferred Shares is commenced on the Principal Market, the Company
shall make a payment of $5,000 to such counsel at Closing, or if the sale of Preferred Shares is commenced on the Over-the-Counter
Bulletin Board, the Company shall make a payment of $10,000 to such counsel upon the commencement of “blue sky” work
by such counsel and an additional $5,000 at Closing); (f) all fees, expenses and disbursements relating to the registration, qualification
or exemption of the Securities under the securities laws of such foreign jurisdictions as the Placement Agent may reasonably designate;
(g) the costs of all mailing and printing of the placement documents (including, without limitation, this Agreement, any Blue
Sky Surveys and, if appropriate, any Agreement Among Agents, Selected Dealers’ Agreement, Placement Agents’ Questionnaire
and Power of Attorney), Registration Statements, Prospectuses and all amendments, supplements and exhibits thereto and as many
preliminary and final Prospectuses as the Placement Agent may reasonably deem necessary; (h) the costs and expenses of the Company’s
financial public relations firm; (i) the costs of preparing, printing and delivering certificates representing the Securities;
(j) fees and expenses of the Company’s transfer agent or DTC (as defined below); (k) stock transfer and/or stamp taxes,
if any, payable upon the transfer of securities from the Company to the Placement Agent; (l) to the extent approved by the Company
in writing, the costs associated with post-Closing advertising the sale of Preferred Shares in the national editions of the Wall
Street Journal and New York Times; (m) the costs associated with one set of bound volumes of the public offering materials as
well as commemorative mementos and lucite tombstones, each of which the Company or its designee shall provide within a reasonable
time after the Closing Date in such quantities as the Placement Agent may reasonably request; (n) the fees and expenses of the
Company’s accountants; (o) the fees and expenses of the Company’s legal counsel and other agents and representatives;
and (p) the fees and expenses of the Placement Agent’s legal counsel, not to exceed $50,000. Such fees may be withheld by
Aegis Capital Corp. (at the request of the Company) from the Purchase Price at any Closing. The Company shall pay, and hold each
Buyer harmless against, any liability, loss or expense (including, without limitation, reasonable attorneys’ fees and out-of-pocket
expenses) arising in connection with any claim relating to payment relating to subpart (j) above. Except as otherwise set forth
in the Transaction Documents, each party to this Agreement shall bear its own expenses in connection with the sale of the Securities
to the Buyers.

 

    	 	22	 

     

    

 

(k)          
Pledge of Securities. Notwithstanding anything to the contrary contained in this Agreement, the Company acknowledges and
agrees that the Securities may be pledged by a Buyer in connection with a bona fide margin agreement or other loan or financing
arrangement that is secured by the Securities. The pledge of Securities shall not be deemed to be a transfer, sale or assignment
of the Securities hereunder, and no Buyer effecting a pledge of Securities shall be required to provide the Company with any notice
thereof or otherwise make any delivery to the Company pursuant to this Agreement or any other Transaction Document. The Company
hereby agrees to execute and deliver such documentation as a pledgee of the Securities may reasonably request in connection with
a pledge of the Securities to such pledgee by a Buyer.

  

(l)           
Disclosure of Transactions and Other Material Information. The Company shall, within the time required under the 1934 Act,
file a Current Report on Form 8-K describing all the material terms of the transactions contemplated by the Transaction Documents
in the form required by the 1934 Act and attaching all the material Transaction Documents (including, without limitation, this
Agreement (including all attachments, the “8-K Filing”). From and after the filing of the 8-K Filing, the Company
shall have disclosed all material, non-public information (if any) delivered to any of the Buyers by the Company or any of its
Subsidiaries, or any of their respective officers, directors, employees or agents in connection with the transactions contemplated
by the Transaction Documents. In addition, effective upon the filing of the 8-K Filing, the Company acknowledges and agrees that
any and all confidentiality or similar obligations under any agreement with respect to the transactions contemplated under the
Transaction Documents, whether written or oral, between the Company, any of its Subsidiaries or any of their respective officers,
directors, affiliates, employees or agents, on the one hand, and any of the Buyers or any of their affiliates, on the other hand,
shall terminate. In the event of a breach of any of the foregoing covenants by the Company, any of its Subsidiaries, or any of
its or their respective officers, directors, employees and agents (as determined in the reasonable good faith judgment of such
Buyer), in addition to any other remedy provided herein or in the Transaction Documents, such Buyer shall have the right to make
a public disclosure, in the form of a press release, public advertisement or otherwise, of such material, non-public information,
as applicable, without the prior approval by the Company, any of its Subsidiaries, or any of its or their respective officers,
directors, employees or agents; provided the Buyer shall have first provided written notice to the Company that it believes it
has received information that constitutes material, non-public information, the Company shall have at least 48 hours to publicly
disclose such material, non-public information prior to any such disclosure by the Buyer or demonstrate to the Buyer in writing
why such information does not constitute material, non-public information, and (assuming the Buyer and Buyer’s counsel disagree
with the Company’s determination) the Company shall have failed to publicly disclose such material, non-public information
within such time period. No Buyer shall have any liability to the Company, any of its Subsidiaries, or any of its or their respective
officers, directors, employees, stockholders or agents, for any such disclosure. To the extent that the Company delivers any material,
non-public information to a Buyer without such Buyer's consent, the Company hereby covenants and agrees that such Buyer shall
not have any duty of confidentiality with respect to, or a duty not to trade on the basis of, such material, non-public information.
Subject to the foregoing, neither the Company, its Subsidiaries nor any Buyer shall issue any press releases or any other public
statements with respect to the transactions contemplated hereby; provided, however, the Company shall be entitled, without the
prior approval of any Buyer, to make any press release or other public disclosure with respect to such transactions (i) in substantial
conformity with the 8-K Filing and contemporaneously therewith and (ii) as is required by applicable law and regulations (provided
that in the case of clause (i) each Buyer shall be consulted by the Company in connection with any such press release or other
public disclosure prior to its release). Notwithstanding anything contained in this Agreement to the contrary and without implication
that the contrary would otherwise be true, the Company expressly acknowledges and agrees that no Buyer has had, and no Buyer shall
have (unless expressly agreed to by a particular Buyer after the date hereof in a written definitive and binding agreement executed
by the Company and such particular Buyer (it being understood and agreed that no Buyer may bind any other Buyer with respect thereto)),
any duty of confidentiality with respect to, or a duty not to trade on the basis of, any material, non-public information regarding
the Company or any of its Subsidiaries.

 

    	 	23	 

     

    

 

(m)         
Reserved.

  

(n)         
Reservation of Shares. So long as any of the Preferred Shares remain outstanding, the Company shall take all action necessary
to at all times have authorized, and reserved for the purpose of issuance, shares of Common Stock in an amount no less than the
Required Reserve Amount. If at any time the number of shares of Common Stock authorized and reserved for issuance is not sufficient
to meet the Required Reserved Amount, the Company will promptly take all corporate action necessary to authorize and reserve a
sufficient number of shares, including, without limitation, calling a special meeting of stockholders to authorize additional
shares to meet the Company's obligations pursuant to the Transaction Documents, in the case of an insufficient number of authorized
shares, obtaining stockholder approval of an increase in such authorized number of shares, and voting the management shares of
the Company in favor of an increase in the authorized shares of the Company to ensure that the number of authorized shares is
sufficient to meet the Required Reserved Amount. 

  

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

 

(p)          Reserved.

 

(q)          Reserved.

  

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

 

(s)          Reserved.

 

(t)          Reserved.

 

(u)         Reserved.

 

(v)         Reserved.

 

(w)        Reserved.

 

(x)         Conversion and Exercise Procedures. The form of Notice of Conversion included in the Certificate of Designations set forth
the totality of the procedures required of the Buyers in order to convert the Preferred Shares. No legal opinion, other information
or instructions shall be required of the Buyers to convert their Preferred Shares. The Company shall honor conversions of the
Preferred Shares and shall deliver the Conversion Shares in accordance with the terms, conditions and time periods set forth in
the Certificate of Designations.

 

    	 	24	 

     

    

  

(y)          No Net Short Sales. From the date of this Agreement until such time as the Buyer no longer holds any Securities, neither
the Buyer nor any of its agents, representatives or affiliates nor any entity managed or controlled by the Buyer (collectively,
the “Restricted Persons” and each of the foregoing is referred to herein as a “Restricted Person”)
shall maintain, in the aggregate, a Net Short Position.  For purposes hereof, a “Net Short Position” by
a Restricted Person means a position whereby such Restricted Person has executed one or more sales of Common Stock that is marked
as a short sale (but not including any sale marked “short exempt”) and that is executed at a time when such Restricted
Person does not have an equivalent offsetting long position in the Common Stock (or is deemed to have a long position hereunder
or otherwise in accordance with Regulation SHO under the 1934 Act); provided, further that no “short sale” shall be
deemed to exist as a result of any failure by the Company (or its agents) to deliver Conversion Shares, upon conversion of the
Preferred Shares, to any Restricted Person exercising such Preferred Shares, as applicable. For purposes of determining whether
a Restricted Person has an equivalent offsetting long position in the Common Stock, such Restricted Person shall be deemed to
hold “long” all Common Stock that is either (i) then owned by such Restricted Person, if any, or (ii) then issuable
to such Restricted Person as Conversion Shares pursuant to the terms of the Certificate of Designations with respect to the Preferred
Shares then held by such Restricted Person, if any, (without regard to any limitations on conversion set forth in the Certificate
of Designations and giving effect to any conversion price adjustments that would take effect given only the passage of time).
Notwithstanding the foregoing, nothing contained herein shall (without implication that the contrary would otherwise be true)
prohibit any Restricted Person from selling “long” (as defined under Rule 200 promulgated under Regulation SHO under
the 1934 Act) the Securities or any other Common Stock then owned by such Restricted Person.

 

(z)          Reserved.

 

(aa)        Reserved.

 

(bb)        Reserved.

 

(cc)        Issuance of Additional Securities. For so long as any Preferred Shares remain outstanding, the Company shall not (i) issue
Common Stock at a price per share less than $0.30 per share (subject to adjustment for subdivision or consolidation of shares)
or (ii) issue any convertible securities which are convertible into or exercisable or exchangeable for Common Stock at a price
per share less than $0.30 (subject to adjustment for subdivision or consolidation of shares) per share, in each case, without
the prior written consent of the Buyers.  Notwithstanding the forgoing, the Company may issue Common Stock at a price per
share less than $0.30 per share (subject to adjustment for subdivision or consolidation of shares) or (ii) issue any convertible
securities which are convertible into or exercisable or exchangeable for Common Stock at a price per share less than $0.30 per
share (subject to adjustment for subdivision or consolidation of shares), in each case, in connection with any acquisition, collaboration,
or other strategic transactions, without the prior written consent of the Buyers so long as the Buyers are afforded the opportunity
to convert 110% of their outstanding Preferred Shares into the same terms as such acquisition, collaboration, or other strategic
transaction.

 

5.            REGISTER; TRANSFER AGENT INSTRUCTIONS; LEGEND.

 

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

  

    	 	25	 

     

    

 

(b)          Transfer
Agent Instructions. The Company shall issue irrevocable instructions to Continental Stock Transfer & Trust (together with
any subsequent transfer agent, the “Transfer Agent”) in the form previously provided to the Company (the “Irrevocable
Transfer Agent Instructions”) to issue certificates or credit shares to the applicable balance accounts at Depository
Trust Company (“DTC”), as applicable, registered in the name of each Buyer or its respective nominee(s), for
the Securities in such amounts as specified from time to time by each Buyer to the Company upon delivery of the Preferred Shares,
conversion of the Preferred Shares, or issuance pursuant to the Certificate of Designations (as the case may be). The Company
represents and warrants that no instruction other than the Irrevocable Transfer Agent Instructions referred to in this Section
5(b) will be given by the Company to the Transfer Agent with respect to the Securities, and that the Securities shall otherwise
be freely transferable on the books and records of the Company. If a Buyer effects a sale, assignment or transfer of the Securities,
the Company shall permit the transfer and shall promptly instruct the Transfer Agent to issue one or more certificates or credit
shares to the applicable balance accounts at DTC in such name and in such denominations as specified by such Buyer to effect such
sale, transfer or assignment. The Company acknowledges that a breach by it of its obligations hereunder will cause irreparable
harm to each Buyer. Accordingly, the Company acknowledges that the remedy at law for a breach of its obligations under this Section
5(b) will be inadequate and agrees, in the event of a breach or threatened breach by the Company of the provisions of this Section
5(b), that each Buyer shall be entitled, in addition to all other available remedies, to an order and/or injunction restraining
any breach and requiring immediate issuance and transfer, without the necessity of showing economic loss and without any bond
or other security being required. The Company shall cause its counsel to issue the legal opinion referred to in the Irrevocable
Transfer Agent Instructions to the Transfer Agent to the extent required or requested by the Transfer Agent. Any fees (with respect
to the Transfer Agent, counsel to the Company or otherwise) associated with the issuance of such opinion shall be borne by the
Company.

 

(c)          Legends. Certificates and any other instruments evidencing the Preferred Shares and the Conversion Shares shall not bear
any restrictive or other legend, except as may be specified in the Certificate of Designations.

 

    	 	26	 

     

    

 

	6.	CLOSING CONDITIONS.

 

(a)         Conditions
of Purchasers’ Obligations. The obligations of the Purchasers to purchase and pay for the Preferred Shares, as provided
herein, shall be subject to (i) the continuing accuracy of the representations and warranties of the Company as of the date hereof
and as of the Closing Date; (ii) the accuracy of the statements of officers of the Company made pursuant to the provisions hereof;
(iii) the performance by the Company of its obligations hereunder; and (iv) the following conditions:

 

(b)         Regulatory
Matters.

 

(i)         Effectiveness
of Registration Statement; Rule 430B Information. The Registration Statement has been declared effective by the SEC under
the 1933 Act and, at the Closing Date, no stop order suspending the effectiveness of the Registration Statement or any post-effective
amendment thereto has been issued under the 1933 Act, no order preventing or suspending the use of any Preliminary Prospectus
or the Prospectus has been issued and no proceedings for any of those purposes have been instituted or are pending or, to the
Company’s knowledge, contemplated by the SEC. The Company has complied with each request (if any) from the SEC for additional
information. The Prospectus containing the Rule 430B Information shall have been filed with the SEC in the manner and within the
time frame required by Rule 424(b) (without reliance on Rule 424(b)(8)) or a post-effective amendment providing such information
shall have been filed with, and declared effective by, the SEC in accordance with the requirements of Rule 430B.

 

(ii)        FINRA
Clearance. On or before the date of this Agreement, the Placement Agent shall have received a No Objections Letter from FINRA
and received clearance from FINRA as to the amount of compensation allowable or payable to the Placement Agent as described in
the Prospectus Supplement.

 

(iii)       Principal
Market Clearance. On the Closing Date, the Company’s shares of Common Stock shall have been approved for listing on
the Principal Market, subject only to official notice of issuance.

 

(iv)       No
Integrated Offering. Neither the Company nor any of its officers, directors, employees or affiliates shall have made or shall
be making any offer or sale of any securities which are required to be “integrated” pursuant to the 1933 Act (or the
rules and regulations of the SEC promulgated thereunder) with the offer and sale of the Preferred Shares.

 

(v)        Certificate
of Designations. The Company shall have filed the Certificate of Designations with the Secretary of State of the State of
Delaware on or prior to the Closing Date, which shall be in full force and effect as of the Closing.

 

(b)         Closing
Date Opinion of Counsel. On the Closing Date, the Placement Agent shall have received the favorable opinion of Robinson Brog
Leinwand Greene Genovese & Gluck P.C., counsel to the Company, dated the Closing Date and addressed to the Placement Agent,
in form and substance satisfactory to the Placement Agent. Additionally, on the Closing Date, the Placement Agent shall have received
the opinion of Beusse Wolter Sanks & Maire, PLLC, special intellectual property counsel for the Company, dated the Closing
Date, addressed to the Placement Agent in form and substance satisfactory to the Placement Agent.

 

(c)         Officers’
Certificates.

 

(i)         Officers’
Certificate. The Company shall have furnished to the Placement Agent a certificate, dated the Closing Date, of its Chief Executive
Officer and its Chief Financial Officer, in form and substance satisfactory to the Placement Agent.

 

    	 	27	 

     

    

 

(ii)         Secretary’s
Certificate. At the Closing Date, the Placement Agent shall have received a certificate of the Company signed by the Secretary
of the Company, dated the Closing Date, certifying: (i) that each of the Certificate of Incorporation and Bylaws is true
and complete, has not been modified and is in full force and effect; (ii) that the resolutions of the Company’s Board
of Directors relating to the transactions contemplated hereby are in full force and effect and have not been modified; (iii) the
accuracy and completeness of all correspondence between the Company or its counsel and the SEC; and (iv)  the incumbency
of the officers of the Company. The documents referred to in such certificate shall be attached to such certificate.

 

(d)         No
Material Changes. Prior to and on the Closing Date, if any: (i) there shall have been no material adverse change or development
involving a prospective material adverse change in the condition or prospects or the business activities, financial or otherwise,
of the Company from the latest dates as of which such condition is set forth in the Registration Statement, the Base Prospectus,
any Issuer Free Writing Prospectus and Prospectus Supplement; (ii) no action, suit or proceeding, at law or in equity, shall
have been pending or threatened against the Company or any Insider before or by any court or federal or state commission, board
or other administrative agency wherein an unfavorable decision, ruling or finding may materially adversely affect the business,
operations, prospects or financial condition or income of the Company, except as set forth in the Registration Statement, the
Base Prospectus, any Issuer Free Writing Prospectus and Prospectus Supplement; (iii) no stop order shall have been issued
under the Securities Act and no proceedings therefor shall have been initiated or threatened by the SEC; and (iv) the Registration
Statement, the Base Prospectus, any Issuer Free Writing Prospectus and Prospectus Supplement and any amendments or supplements
thereto shall contain all material statements which are required to be stated therein in accordance with the 1933 Act and the
rules and regulations of the SEC promulgated thereunder and shall conform in all material respects to the requirements of the
1933 Act and the rules and regulations of the SEC promulgated thereunder, and neither the Registration Statement, the Base Prospectus,
any Issuer Free Writing Prospectus nor the Prospectus Supplement nor any amendment or supplement thereto shall contain any untrue
statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements
therein, in light of the circumstances under which they were made, not misleading.

 

(e)         Lock-Up
Agreements. On or before the Closing Date, the Company shall have delivered to the Placement Agent executed copies of the
Lock-Up Agreements from each of the officers and directors of the Company.

 

(f)          Consents.
The Company shall have received all requisite signed written consents from the holders of the Company’s Senior Secured Convertible
Notes issued December 8, 2015 as to the transactions contemplated hereby. 

 

(g)         Additional
Documents. At the Closing Date (if any) Placement Agent counsel shall have been furnished with such documents and opinions
as they may require for the purpose of enabling Placement Agent counsel to deliver an opinion to the Placement Agent, or in order
to evidence the accuracy of any of the representations or warranties, or the fulfillment of any of the conditions, herein contained;
and all proceedings taken by the Company in connection with the issuance and sale of the Preferred Shares as herein contemplated
shall be satisfactory in form and substance to the Placement Agent and Placement Agent counsel.

 

    	 	28	 

     

    

 

	7.	TERMINATION.

 

In
the event that the Closing shall not have occurred with respect to a Buyer within three (3) business days after the date hereof,
then either the Company or such Buyer, by written notice, shall have the right to terminate its obligations under this Agreement
with respect to itself at any time on or after the close of business on such date without liability of any party to any other
party; provided, however, (i) the right to terminate this Agreement under this Section 7 shall not be available to any party if
the failure of the transactions contemplated by this Agreement to have been consummated by such date is the result of such party’s
breach of this Agreement and (ii) the abandonment of the sale and purchase of the Preferred Shares shall be applicable only to
such Buyer providing such written notice; provided further that no such termination shall affect any obligation of the Company
under this Agreement to reimburse such Buyer for the expenses described in Section 4(j) above. Nothing contained in this Section
7 shall be deemed to release any party from any liability for any breach by such party of the terms and provisions of this Agreement
or the other Transaction Documents or to impair the right of any party to compel specific performance by any other party of its
obligations under this Agreement or the other Transaction Documents.

 

	8.	MISCELLANEOUS.

 

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

 

    	 	29	 

     

    

 

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

 

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

  

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

 

    	 	30	 

     

    

 

(e)          Entire
Agreement; Amendments. This Agreement, the other Transaction Documents and the schedules and exhibits attached hereto and
thereto and the instruments referenced herein and therein supersede all other prior oral or written agreements between the Buyers,
the Company, their affiliates and Persons acting on their behalf solely with respect to the matters contained herein and therein,
and this Agreement, the other Transaction Documents, the schedules and exhibits attached hereto and thereto and the instruments
referenced herein and therein contain the entire understanding of the parties solely with respect to the matters covered herein
and therein; provided, however, nothing contained in this Agreement or any other Transaction Document shall (or shall be deemed
to) (i) have any effect on any agreements any Buyer has entered into with the Company or any of its Subsidiaries prior to the
date hereof with respect to any prior investment made by such Buyer in the Company or (ii) waive, alter, modify or amend in any
respect any obligations of the Company or any of its Subsidiaries, or any rights of or benefits to any Buyer or any other Person,
in any agreement entered into prior to the date hereof between or among the Company and/or any of its Subsidiaries and any Buyer
and all such agreements shall continue in full force and effect. Except as specifically set forth herein or the other Transaction
Documents, neither the Company nor any Buyer makes any representation, warranty, covenant or undertaking with respect to such
matters. For clarification purposes, the Recitals are part of this Agreement. No provision of this Agreement may be amended other
than by an instrument in writing signed by the Company and each of the Buyers. No waiver shall be effective unless it is in writing
and signed by an authorized representative of the waiving party. No consideration shall be offered or paid to any Person to amend
or consent to a waiver or modification of any provision of any of the Transaction Documents unless the same consideration also
is offered to all of the parties to the Transaction Documents or all holders of Preferred Shares (as the case may be). The Company
has not, directly or indirectly, made any agreements with any Buyers relating to the terms or conditions of the transactions contemplated
by the Transaction Documents except as set forth in the Transaction Documents. Without limiting the foregoing, the Company confirms
that, except as set forth in this Agreement, no Buyer has made any commitment or promise or has any other obligation to provide
any financing to the Company, any Subsidiary or otherwise. As a material inducement for each Buyer to enter into this Agreement,
the Company expressly acknowledges and agrees that (i) no due diligence or other investigation or inquiry conducted by a Buyer,
any of its advisors or any of its representatives shall affect such Buyer’s right to rely on, or shall modify or qualify
in any manner or be an exception to any of, the Company’s representations and warranties contained in this Agreement or
any other Transaction Document, (ii) nothing contained in the Registration Statement, the Prospectus or the Prospectus Supplement
shall affect such Buyer’s right to rely on, or shall modify or qualify in any manner or be an exception to any of, the Company’s
representations and warranties contained in this Agreement or any other Transaction Document and (iii) unless a provision of this
Agreement or any other Transaction Document is expressly preceded by the phrase “except as disclosed in the SEC Documents,”
nothing contained in any of the SEC Documents shall affect such Buyer’s right to rely on, or shall modify or qualify in
any manner or be an exception to any of, the Company’s representations and warranties contained in this Agreement or any
other Transaction Document.

 

    	 	31	 

     

    

 

(f)          Notices.
Any notices, consents, waivers or other communications required or permitted to be given under the terms of this Agreement must
be in writing and will be deemed to have been delivered: (i) upon receipt, when delivered personally; (ii) upon receipt, when
sent by facsimile (provided confirmation of transmission is mechanically or electronically generated and kept on file by the sending
party); or (iii) one (1) Business Day after deposit with an overnight courier service with next day delivery specified, in each
case, properly addressed to the party to receive the same. The addresses and facsimile numbers for such communications shall be:

 

If
to the Company:

 

Nxt-ID,
Inc.

285
North Drive

Suite
D

Melbourne,
FL 32934

Attn:
Gino M. Pereira, Chief Executive Officer

 

With
a copy (for informational purposes only) to:

 

Robinson
Brog Leinwand Greene Genovese & Gluck P.C.

875
Third Avenue, 9th Floor

New
York, NY 10022

Attn:
David E. Danovitch, Esq.

 

If
to the Transfer Agent:

 

VStock
Transfer, LLC

18
Lafayette Place

Woodmere,
New York 11598

 

If
to a Buyer, to its address, email address, or facsimile number set forth on its signature page hereto.

  

or
to such other address and/or facsimile number and/or to the attention of such other Person as the recipient party has specified
by written notice given to each other party five (5) days prior to the effectiveness of such change. Written confirmation of receipt
(A) given by the recipient of such notice, consent, waiver or other communication, (B) mechanically or electronically generated
by the sender’s facsimile machine containing the time, date, recipient facsimile number and an image of the first page of
such transmission or (C) provided by an overnight courier service shall be rebuttable evidence of personal service, receipt by
facsimile or receipt from an overnight courier service in accordance with clause (i), (ii) or (iii) above, respectively.

 

    	 	32	 

     

    

 

(g)         Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their respective
successors and assigns, including, as contemplated below, any assignee of any of the Securities. The Company shall not assign
this Agreement or any rights or obligations hereunder without the prior written consent of each of the Buyers, including, without
limitation, by way of a Fundamental Transaction (as defined in the Certificate of Designations) (unless the Company is in compliance
with the applicable provisions governing Fundamental Transactions set forth in the Certificate of Designations). A Buyer may assign
some or all of its rights hereunder in connection with any transfer of any of its Securities without the consent of the Company,
provided that such assignee agrees in writing to be bound with respect to the transferred Securities, in which event such assignee
shall be deemed to be a “Buyer” hereunder with respect to such assigned rights.

 

(h)         No Third Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective permitted
successors and assigns, and is not for the benefit of, nor may any provision hereof be enforced by, any other Person, other than
the Indemnitees referred to in Section 8(k).

  

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

 

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

 

(k)         Indemnification.

 

(i)          In
consideration of each Buyer’s execution and delivery of the Transaction Documents and acquiring the Securities thereunder
and in addition to all of the Company’s other obligations under the Transaction Documents, the Company shall defend, protect,
indemnify and hold harmless each Buyer and all of its stockholders, partners, members, officers, directors, employees and direct
or indirect investors and any of the foregoing Persons’ agents or other representatives (including, without limitation,
those retained in connection with the transactions contemplated by this Agreement) (collectively, the “Indemnitees”)
from and against any and all actions, causes of action, suits, claims, losses, costs, penalties, fees, liabilities and damages,
and expenses in connection therewith (irrespective of whether any such Indemnitee is a party to the action for which indemnification
hereunder is sought), and including reasonable attorneys’ fees and disbursements (the “Indemnified Liabilities”),
incurred by any Indemnitee as a result of, or arising out of, or relating to (i) any misrepresentation or breach of any representation
or warranty made by the Company or any Subsidiary in any of the Transaction Documents, (ii) any breach of any covenant, agreement
or obligation of the Company or any Subsidiary contained in any of the Transaction Documents or (iii) any cause of action, suit,
proceeding or claim brought or made against such Indemnitee by a third party (including for these purposes a derivative action
brought on behalf of the Company or any Subsidiary) or which otherwise involves such Indemnitee that arises out of or results
from (A) the execution, delivery, performance or enforcement of any of the Transaction Documents, (B) any transaction financed
or to be financed in whole or in part, directly or indirectly, with the proceeds of the issuance of the Securities, (C) any disclosure
properly made by such Buyer pursuant to Section 4(l), or (D) the status of such Buyer either as an investor in the Company
pursuant to the transactions contemplated by the Transaction Documents or as a party to this Agreement (including, without limitation,
as a party in interest or otherwise in any action or proceeding for injunctive or other equitable relief); provided, however,
that the indemnity contained in clause (iii) above shall not apply to any Indemnified Liabilities which directly and primarily
result from the fraud, gross negligence or willful misconduct of an Indemnitee. To the extent that the foregoing undertaking by
the Company may be unenforceable for any reason, the Company shall make the maximum contribution to the payment and satisfaction
of each of the Indemnified Liabilities which is permissible under applicable law.

 

    	 	33	 

     

    

 

(ii)         Promptly
after receipt by an Indemnitee under this Section 8(k) of notice of the commencement of any action or proceeding (including any
governmental action or proceeding) involving an Indemnified Liability, such Indemnitee shall, if a claim in respect thereof is
to be made against the Company under this Section 8(k), deliver to the Company a written notice of the commencement thereof, and
the Company shall have the right to participate in, and, to the extent the Company so desires, to assume control of the defense
thereof with counsel mutually satisfactory to the Company and the Indemnitee; provided, however, that an Indemnitee shall have
the right to retain its own counsel with the fees and expenses of such counsel to be paid by the Company if: (i) the Company has
agreed in writing to pay such fees and expenses; (ii) the Company shall have failed after a reasonable period of time to assume
the defense of such Indemnified Liability and to employ counsel reasonably satisfactory to such Indemnitee in any such Indemnified
Liability; or (iii) the named parties to any such Indemnified Liability (including any impleaded parties) include both such Indemnitee
and the Company, and such Indemnitee shall have been advised by counsel, in its reasonable opinion, that a material conflict of
interest on any material issue is likely to exist if the same counsel were to represent such Indemnitee and the Company (in which
case, if such Indemnitee notifies the Company in writing that it elects to employ separate counsel at the expense of the Company,
then the Company shall not have the right to assume the defense thereof and such counsel shall be at the expense of the Company);
provided further, that in the case of clauses (i), (ii) and (iii) above the Company shall not be responsible for the reasonable
fees and expenses of more than one (1) separate legal counsel for such Indemnitee. The Indemnitee shall reasonably cooperate with
the Company in connection with any negotiation or defense of any such action or Indemnified Liability by the Company and shall
furnish to the Company all information reasonably available to the Indemnitee which relates to such action or Indemnified Liability.
The Company shall keep the Indemnitee reasonably apprised at all times as to the status of the defense or any settlement negotiations
with respect thereto. The Company shall not be liable for any settlement of any action, claim or proceeding effected without its
prior written consent, provided, however, that the Company shall not unreasonably withhold, delay or condition its consent. The
Company shall not, without the prior written consent of the Indemnitee, consent to entry of any judgment or enter into any settlement
or other compromise which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such Indemnitee
of a release from all liability in respect to such Indemnified Liability or litigation, and such settlement shall not include
any admission as to fault on the part of the Indemnitee. Following indemnification as provided for hereunder, the Company shall
be subrogated to all rights of the Indemnitee with respect to all third parties, firms or corporations relating to the matter
for which indemnification has been made. The failure to deliver written notice to the Company within a reasonable time of the
commencement of any such action shall not relieve the Company of any liability to the Indemnitee under this Section 8(k), except
to the extent that the Company is materially and adversely prejudiced in its ability to defend such action.

  

    	 	34	 

     

    

 

(iii)        The
indemnification required by this Section 8(k) shall be made by periodic payments of the amount thereof during the course of the
investigation or defense, as and when bills are received or Indemnified Liabilities are incurred.

 

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

 

(l)          
Construction. The language used in this Agreement will be deemed to be the language chosen by the parties to express their
mutual intent, and no rules of strict construction will be applied against any party. No specific representation or warranty shall
limit the generality or applicability of a more general representation or warranty. Each and every reference to share prices,
shares of Common Stock and any other numbers in this Agreement that relate to the Common Stock shall be automatically adjusted
for any stock splits, stock dividends, stock combinations, recapitalizations or other similar transactions that occur with respect
to the Common Stock after the date of this Agreement. It is expressly understood and agreed that for all purposes of this Agreement,
and without implication that the contrary would otherwise be true, neither transactions nor purchases nor sales shall include
the location and/or reservation of borrowable shares of Common Stock.

 

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

 

    	 	35	 

     

    

 

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

  

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

 

(p)         
Reserved.

  

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

 

[Signature
pages follow]

 

    	 	36	 

     

    

 

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

 

	 	Nxt-ID,
    Inc.
	 	 	 
	 	By:	 
	 	 	Name:
    Gino M. Pereira
	 	 	Title:
    Chief Executive Officer

 

     

     

    

 

[PURCHASER
SIGNATURE PAGES TO SECURITIES PURCHASE AGREEMENT]

 

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

 

Name
of Purchaser: ________________________________________________________

 

Signature
of Authorized Signatory of Purchaser: __________________________________

 

Name
of Authorized Signatory: ____________________________________________________

 

Title
of Authorized Signatory: _____________________________________________________

 

Email
Address of Authorized Signatory: _____________________________________________

 

Facsimile
Number of Authorized Signatory: __________________________________________

 

Address
for Notice to Purchaser:

 

 

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

 

Closing
Subscription Amount: _____________

 

EIN
Number: _______________________

 

     

     

    

 

SCHEDULE
OF BUYERS

 

	(1)	 	(2)	 	(3)
	Buyer	 	Number of 
 Preferred
 Shares	 	Purchase
 Price
	 	 	 	 	 

 

     

     

    

 

Exhibit
A

 

Form
of Certificate of Designations

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00256-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00256-of-00352.parquet"}]]