Document:

Exhibit
10.1

 

Mechanical
Technology, Incorporated

 

AMENDED
AND RESTATED 2021 STOCK INCENTIVE PLAN

 

		1.	PURPOSE

 

The
purpose of the Mechanical Technology, Incorporated Amended and Restated Stock Incentive Plan (this “Plan”) is to promote
the interests of Mechanical Technology, Incorporated (the “Company”) and its stockholders by allowing the Company
to attract and retain senior managers, employees, directors, consultants, professionals and service providers who provide services
to the Company or any of its subsidiaries, provided that such services are bona fide services that are not of a capital-raising
nature (“Eligible Persons”). This Plan is expected to contribute to the attainment of these objectives by enabling
the Company to pay Eligible Persons utilizing shares of common stock, par value $0.001 per share, of the Company (“Shares”)
in addition to cash and to grant to such Eligible Persons Shares which are restricted as provided in Section 6 of this Plan (“Restricted
Stock”). In addition, this Plan is expected to contribute to the attainment of these objectives by providing for the grants
to Eligible Persons of (i) the right to receive Shares at a specific future time (“RSUs”) and (ii) stock options (“Options”),
which Options may be exercised for Shares.

 

		2.	ADMINISTRATION

 

This
Plan shall be administered by the Compensation Committee of the Board of Directors (the “Committee”), unless the Company
does not have a Compensation Committee, in which case this Plan shall be administered by the Board of Directors of the Company
(the “Board”). Subject to the provisions of this Plan, the Committee shall be authorized to interpret this Plan; to
establish, amend and rescind any rules and regulations relating to this Plan; and to make all determinations necessary or advisable
for the administration of this Plan. The determinations of the Committee in the administration of this Plan, as described herein,
shall be final and conclusive. Each of the Chief Executive Officer, the Chief Financial Officer and the Secretary of the Company
shall be authorized to implement this Plan in accordance with its terms and to take such actions of a ministerial nature as shall
be necessary to effectuate the intent and purposes of this Plan. The validity, construction and effect of this Plan and any rules
and regulations relating to this Plan shall be determined in accordance with the laws of the State of Nevada.

 

		3.	ELIGIBILITY

 

The
class of individuals eligible to receive Restricted Stock, Restricted Stock Units or Options (the “Awards”) under
this Plan shall be persons who are Eligible Persons (as defined above). Any holder of an Award granted under this Plan shall hereinafter
be referred to as a “Participant” or collectively as “Participants.”

 

		4.	SHARES
                                         SUBJECT TO THIS PLAN

 

		(a)	Share
                                         Reserve and Limitation of Grants. Subject to adjustment as provided in Section 7
                                         hereof, the maximum aggregate number of Shares that may be issued under this Plan (i)
                                         pursuant to the exercise of Options, (ii) as Restricted Stock and (iii) as available
                                         pursuant to RSUs shall be limited to (A) during the Company’s fiscal year ending
                                         December 31, 2021 (the “2021 Fiscal Year”), 1,460,191 Shares and (B) beginning
                                         with the Company’s fiscal year ending December 31, 2022 (the “2022 Fiscal
                                         Year”), fifteen percent (15%) of the number of Shares outstanding, which calculation
                                         shall be made on the first trading day of a new fiscal year. Subject to adjustment as
                                         provided in Section 7 hereof, and notwithstanding any provision hereto to the contrary,
                                         (i) Shares subject to this Plan shall include Shares forfeited in a prior year as provided
                                         herein and (ii) the number of Shares that may be issued under this Plan may never be
                                         less than the number of Shares that are then outstanding under Award grants. For purposes
                                         of determining the number of Shares available under this Plan, Shares withheld by the
                                         Company to satisfy applicable tax withholding obligations pursuant to Section 10(e) of
                                         this Plan shall be deemed issued under this Plan.

 

     

     

    

 

		(b)	Reversion
                                         of Shares. In the event that, prior to the date this Plan shall terminate in accordance
                                         with Section 8 hereof, any Award granted under this Plan expires unexercised or unvested
                                         or is terminated, surrendered or cancelled without the delivery of Shares, or any shares
                                         of Restricted Stock are forfeited back to the Company, then the Shares of subject to
                                         such Award may be made available for subsequent Awards under the terms of this Plan.

 

		5.	GRANT,
                                         TERMS AND CONDITIONS OF OPTIONS

 

		(a)	In
                                         General. The Committee may grant Awards in the form of Options. Every Option shall
                                         be evidenced by an Option agreement in such form as the Committee shall approve from
                                         time to time, specifying the number of Shares that may be purchased pursuant to the Option,
                                         the time or times at which the Option shall become exercisable in whole or in part and
                                         such other terms and conditions as the Committee shall approve, and containing or incorporating
                                         by reference the terms and conditions set forth in this Section 5.

 

		(b)	Duration.
                                         The duration of each Option shall be as specified by the Committee.

 

		(c)	Exercise
                                         Price. The exercise price of each Option shall be any lawful consideration, as specified
                                         by the Committee in its discretion; provided, however, that the exercise price
                                         shall be at least one hundred percent (100%) of the Fair Market Value of the Shares on
                                         the date on which the Committee awards the Option, which shall be considered the date
                                         of grant of the Option for purposes of fixing the price.

 

For
purposes of this Plan and except as may be otherwise explicitly provided in this Plan or in any Award agreement, the Fair Market
Value of a share of Common Stock at any particular date shall be determined according to the following rules:

 

(i)             If the Shares are not at the time listed or admitted to trading on any national securities exchange or The Nasdaq Stock Market
LLC (“Nasdaq”) or any of the OTC Markets (“OTC Markets”), then Fair Market Value shall be determined in
good faith by the Board, which may take into consideration (1) the price paid for the Shares in the most recent trade of a substantial
number of Shares known to the Board to have occurred at arm’s length between willing and knowledgeable investors, (2) an
appraisal by an independent party or (3) any other method of valuation undertaken in good faith by the Board, or some or all of
the above as the Board shall in its discretion elect;

 

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(ii)            If the Shares of are at the time listed or admitted to trading on any national securities exchange or Nasdaq, then Fair Market
Value shall mean the Closing Price for the Shares on such date. The “Closing Price” on any date shall mean the last
sale price for the Shares, regular way, or, in case no such sale takes place on that day, the average of the closing bid and asked
prices, regular way, for the Shares, in either case as reported in the principal consolidated transaction reporting system with
respect to securities listed or admitted to trading on the national securities exchange or Nasdaq; or

 

(iii)           If the Shares are at the time traded in the OTC Markets, the average of the closing bid and asked prices, regular way, for the
Shares, in either case as reported in the OTC Markets with respect to securities listed or admitted to trading in the OTC Markets.

 

		(d)	Method
                                         of Exercise. Options may be exercised by delivery to the Company of a notice of exercise
                                         in a form, which may be electronic, approved by the Committee, together with payment
                                         in full in the manner specified in Section 5(f) of the exercise price for the number
                                         of Shares for which the Option is exercised. Shares subject to the Option will be delivered
                                         by the Company as soon as practicable following exercise and payment of the exercise
                                         price. If the Participant fails to pay for or to accept delivery of all or any part of
                                         the number of specified in the notice upon tender of delivery thereof, the right to exercise
                                         the Option with respect to those Shares shall be terminated, unless the Committee otherwise
                                         agrees.

 

		(e)	Broker-Assisted
                                         Exercises. To the extent permitted by law, any Option may permit payment of the exercise
                                         price and payment of any applicable tax withholding from the proceeds of sale through
                                         a broker or bank on a date satisfactory to the Committee of some or all of the Shares
                                         to which such exercise relates. In such case, the Committee will establish rules and
                                         procedures relating to such broker- (or bank-) assisted exercises in a manner intended
                                         to comply with the requirements of Section 402 of the Sarbanes-Oxley Act of 2002 and
                                         Section 409A including as to all Options, without limitation, the time when the election
                                         to exercise an option in such manner may be made, the time period by which the broker
                                         or bank must remit payment of the exercise price and applicable tax withholding, the
                                         interest or other earnings attributable to the payment and the method of funding, if
                                         any, attributable to the payment.

 

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		(f)	Payment.
                                         The Committee will determine the methods by which the exercise price of an Option may
                                         be paid, the form of payment and the methods by which Shares will be delivered or deemed
                                         to be delivered to Participants. As determined by the Committee, payment of the exercise
                                         price of an Option may be made, in whole or in part, in the form of: (1) cash or cash
                                         equivalents; (2) delivery (by either actual delivery or attestation) of previously-acquired
                                         Shares based on the Fair Market Value of the Shares on the date the Option is exercised;
                                         (3) withholding of Shares from the Option based on the Fair Market Value of Shares on
                                         the date the Option is exercised; (4) broker-assisted or bank-assisted market sales;
                                         or (5) any other “cashless exercise” arrangement satisfactory to the Committee.

 

		(g)	Vesting.
                                         An Option may be exercised so long as it is vested and outstanding from time to time,
                                         in whole or in part, in the manner and subject to the conditions that the Committee in
                                         its discretion may provide in the Option agreement.

 

		(h)	Effect
                                         of Cessation of Employment or Service Relationship. The Committee shall determine
                                         in its discretion and specify in each Option agreement the effect, if any, of the termination
                                         of the Participant’s employment or other service relationship upon the exercisability
                                         of the Option.

 

		(i)	Transferability
                                         of Options. An Option shall not be assignable or transferable by the Participant
                                         except by will or by the laws of descent and distribution. During the life of the Participant,
                                         an Option shall be exercisable only by him, by a conservator or guardian duly appointed
                                         for him by reason of his incapacity or by the person appointed by the Participant in
                                         a durable power of attorney acceptable to the Company’s counsel. Notwithstanding
                                         the preceding sentences of this Section 5(i), the Committee may in its discretion permit
                                         the Participant to transfer an Option to a member of the Immediate Family (as defined
                                         below) of the Participant, to a trust solely for the benefit of the Participant and the
                                         Participant’s Immediate Family or to a partnership or limited liability company
                                         whose only partners or members are the Participant and members of the Participant’s
                                         Immediate Family. “Immediate Family” shall mean, with respect to any Participant,
                                         the Participant’s child, stepchild, grandchild, parent, stepparent, grandparent,
                                         spouse, sibling, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law
                                         or sister-in-law, and shall include adoptive relationships.

 

		(j)	No
                                         Rights as Stockholder. A Participant shall have no rights as a stockholder with respect
                                         to any Shares covered by an Option until becoming the record holder of the Shares. No
                                         adjustment shall be made for dividends or other rights for which the record date is earlier
                                         than the date the certificate is issued, other than as required or permitted pursuant
                                         to Section 7.

 

		6.	TERMS
                                         AND CONDITIONS OF RESTRICTED STOCK AND RSUS

 

		(a)	Restricted
                                         Stock and RSUs. The Committee may grant Awards in the form of shares of Restricted
                                         Stock and/or RSUs (collectively, referred to as “Stock Awards”). Restrictions
                                         on Restricted Stock may include the right of the Company to repurchase all or part of
                                         the Shares at their issue price or other stated or formula price (or to require forfeiture
                                         of the Shares if issued at no cost) from the Participant in the event that conditions
                                         specified by the Committee in the applicable Award agreement are not satisfied prior
                                         to the end of the applicable restriction period or periods established by the Committee
                                         for the Stock Award.

 

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		(b)	Form
                                         of Payment. RSUs shall be paid in Shares.

 

		(c)	Procedures
                                         Relating to Stock Awards. A Restricted Stock agreement or RSU agreement shall evidence
                                         the applicable Award and shall contain such terms and conditions as the Committee shall
                                         provide.

 

A
holder of a Stock Award without restrictions or Restricted Stock shall, subject to the terms of any applicable agreement, have
all of the rights of a stockholder of the Company, including the right to vote the Shares and (except as provided below) the right
to receive any dividends. Certificates representing Restricted Stock shall be imprinted with a legend to the effect that the Shares
represented may not be sold, exchanged, transferred, pledged, hypothecated or otherwise disposed of except in accordance with
the terms of the applicable agreement. (If shares of Restricted Stock are held in book entry form, statements evidencing those
shares shall include a similar legend.) The Participant shall be required to deposit any stock certificates with an escrow agent
designated by the Committee, together with a stock power or other instrument of transfer appropriately endorsed in blank. With
respect to such Shares, the Committee shall provide that dividends will not be paid with respect to unvested Restricted Stock
until the time (if at all) the Restricted Stock vests, and the Company will retain such dividends and pay them to the Participant
upon vesting.

 

Except
as otherwise provided in this Section 6, Restricted Stock shall become freely transferable by the Participant after all conditions
and restrictions applicable to the Shares have been satisfied or lapse (including satisfaction of any applicable tax withholding
obligations).

 

		(d)	Additional
                                         Matters Relating to RSUs.

 

(i)             Each grant of RSUs shall constitute the agreement by the Company to issue or transfer Shares to the Participant in the future
in consideration of the performance of services, subject to the fulfillment during the period established by the Committee and
set forth in the RSU agreement (the “Deferral Period”) of such conditions as the Committee may specify.

 

(ii)            Each grant of RSUs may be made without additional consideration from the Participant or in consideration of a payment by the Participant
that is less than the Fair Market Value on the date of grant.

 

(iii)           Each grant shall provide that the RSUs covered thereby shall be subject to a Deferral Period, which shall be fixed by the Committee
on the date of grant, and any grant or sale may provide for the earlier termination of such Deferral Period in the event of a
Change in Control of the Company or other similar transaction or event. For the purposes of this Plan, “Change in Control”
shall mean a merger or consolidation in which securities constituting more than 50% of the total combined voting power of the
Company’s outstanding securities are transferred to a person or persons that do not own more than 50% of the combined voting
power of the Company’s securities immediately prior to such transaction, or the sale, transfer or other disposition of all
or substantially all of the Company’s assets to a non-affiliate of the Company.

 

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(iv)           During the Deferral Period, the Participant shall not have any right to transfer any rights under the subject Award, shall not
have any rights of ownership in the Shares issuable pursuant to the RSUs and shall not have any right to vote such Shares, but
the Committee may on or after the date of grant, authorize the payment of dividend or other distribution equivalents on such Shares
in cash or additional Shares on a current, deferred or contingent basis.

 

(v)            Each grant of RSUs shall be evidenced by an agreement delivered to and accepted by the Participant and containing such terms and
provisions as the Committee may determine consistent with this Plan.

 

(vi)           Each agreement underlying a Stock Award shall set forth the extent to which the Participant shall have the right to retain the
Award following termination of the Participant’s employment or other service relationship with the Company and the rights,
if any, of the Participant upon a Change in Control, which may include, among other things, the acceleration of vesting of a Stock
Award. Whether any such right shall apply to a particular Award shall be determined in the sole discretion of the Committee.

 

		7.	ADJUSTMENT
                                         AND CHANGES IN SHARES

 

If,
after the Effective Date (as defined below), there is a stock dividend or stock split, recapitalization (including payment of
an extraordinary dividend), merger, consolidation, combination, spin-off, distribution of assets to stockholders, exchange of
shares, or other similar corporate change affecting the Shares, the Board shall appropriately adjust the aggregate number of Shares
(including Shares underlying Options) available for Awards under this Plan or subject to outstanding Awards, and any other factors,
limits or terms affecting any outstanding or subsequently issuable Awards as may be appropriate.

 

		8.	EFFECTIVE
                                         DATE, DURATION OF PLAN AMENDMENT AND TERMINATION

 

This
Plan shall become effective on the date of the adoption of this Plan by the Board (the “Effective Date”). This Plan
shall automatically terminate on the tenth (10th) anniversary of this Plan’s Effective Date. The Board may terminate, suspend
or amend this Plan at any time without stockholder approval except to the extent that stockholder approval is required to satisfy
applicable requirements imposed by (a) Rule 16b-3 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”),
or any successor rule or regulation; or (b) the rules of any exchange on or through which the Shares are then listed or traded.
For the avoidance of doubt, this Plan shall be effective upon adoption by the Board, and shall be submitted to the stockholders
of the Company for approval within twelve (12) months after adopted by Board. In the event that the stockholders of the Company
shall not approve this Plan within such twelve (12) month period, this Plan shall terminate. If this Plan is terminated, as a
result of not having been approved by stockholders during such 12-month period, automatic termination on the tenth (10) anniversary
as provided in this Section 8 or pursuant to any other terms of this Plan, notwithstanding such termination, all Awards granted
prior to such termination shall continue until they are terminated by their terms.

 

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		9.	APPLICABLE
                                         LAW AND REGISTRATION

 

The
grant of Awards and the issuance of Shares (including Restricted Stock, Shares underlying Options, upon their exercise, and Shares
issued in connection with RSUs) shall be subject to all applicable laws, rules and regulations and to such approvals of any governmental
agencies or securities exchanges as may be required. Notwithstanding the foregoing, no Shares, Restricted Stock, RSUs or Options
shall be issued under this Plan unless the Company is satisfied that such issuance will be in compliance with applicable federal
and state securities laws. Shares issued under this Plan may be subject to such stop transfer orders and other restrictions as
the Board may deem advisable under the rules, regulations and other requirements of the Securities and Exchange Commission, any
exchange on or through which the Shares are then listed or traded, or any applicable federal or state securities law. The Board
may cause a legend or legends to be placed on any stock certificates issued under this Plan to make appropriate reference to restrictions
within the scope of this Section 9 or other provisions of this Plan. To the extent not preempted by Federal law, this Plan and
all agreements hereunder shall be construed in accordance with and governed by the laws of the State of Nevada, without regard
to the principles of conflicts of law.

 

		10.	MISCELLANEOUS

 

		(a)	Transferability
                                         of Awards. Except as otherwise provided herein, Awards shall not be sold, assigned,
                                         transferred, pledged or otherwise encumbered by the person to whom they are granted,
                                         either voluntarily or by operation of law, except by will or the laws of descent and
                                         distribution and, during the life of the Participant, shall be exercisable only by the
                                         Participant.

 

		(b)	Documentation.
                                         Each Award shall be evidenced in such form (written, electronic or otherwise) as the
                                         Committee shall determine. Each Award may contain terms and conditions in addition to
                                         those set forth in this Plan.

 

		(c)	No
                                         Guarantee of Employment or Continuation of Service Relationship. Neither this Plan
                                         nor any Award agreement shall give an employee or other service provider the right to
                                         continue in the employment of or to continue to provide services to the Company or a
                                         subsidiary, or give the Company or a subsidiary the right to require continued employment
                                         or services.

 

		(d)	Rounding
                                         Conventions. The Committee may, in its sole discretion and taking into account any
                                         requirements of the Code, including without limitation, as applicable, Sections 422 through
                                         424 and 409A of the Code, determine the effect of vesting, stock dividend, and any other
                                         adjustments on shares and any cash amount payable hereunder, and may provide that no
                                         fractional shares will be issued (rounding up or down as determined by the Committee)
                                         and that cash amounts be rounded down to the nearest whole cent.

 

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		(e)	Tax
                                         Withholding. To the extent required by law, the Company (or a subsidiary) shall withhold
                                         or cause to be withheld income and other taxes with respect to any income recognized
                                         by a Participant by reason of the exercise, vesting or settlement of an Award, and as
                                         a condition to the receipt of any Award the Participant shall agree that if the amount
                                         payable to him or her by the Company and any subsidiary in the ordinary course is insufficient
                                         to pay such taxes, then he or she shall upon the request of the Company pay to the Company
                                         an amount sufficient to satisfy its tax withholding obligations. Without limiting the
                                         foregoing, the Committee may in its discretion permit any Participant’s withholding
                                         obligation to be paid in whole or in part in the form of Shares by withholding from the
                                         Shares to be issued or by accepting delivery from the Participant of Shares already owned
                                         by him or her. If payment of withholding taxes is made in whole or in part in Shares,
                                         the Participant shall deliver to the Company certificates registered in his or her name
                                         representing Shares legally and beneficially owned by him or her, fully vested and free
                                         of all liens, claims, and encumbrances of every kind, duly endorsed or accompanied by
                                         stock powers duly endorsed by the record holder of the shares represented by such certificates.
                                         If the Participant is subject to Section 16(a) of the Exchange Act, his or her ability
                                         to pay any withholding obligation in the form of Shares shall be subject to any additional
                                         restrictions as may be necessary to avoid any transaction that might give rise to liability
                                         under Section 16(b) of the Exchange Act.

 

		(f)	Use
                                         of Proceeds. The proceeds from the sale of Shares pursuant to Awards shall constitute
                                         general funds of the Company.

 

		(g)	Awards
                                         to Non-United States Persons. Awards may be made to Participants who are foreign
                                         nationals or employed outside the United States on such terms and conditions different
                                         from those specified in this Plan as the Committee considers necessary or advisable to
                                         achieve the purposes of this Plan or to comply with applicable laws. The Board shall
                                         have the right to amend this Plan, consistent with its authority to amend this Plan as
                                         set forth in Section 8, to obtain favorable tax treatment for Participants, and any such
                                         amendments shall be evidenced by an Appendix to this Plan. The Board may delegate this
                                         authority to the Committee.

 

		(h)	Compliance
                                         with Section 409A. It is the intention of the Company that no payment or entitlement
                                         pursuant to this Plan will give rise to any adverse tax consequences to any person pursuant
                                         to Section 409A of the Code. The Committee shall interpret and apply this Plan to that
                                         end, and shall not give effect to any provision therein in a manner that reasonably could
                                         be expected to give rise to adverse tax consequences under Section 409A.

 

     8Discover UNIS-SPA (Final) compared with UNIS Discover SPA Final 2

STOCK PURCHASE AGREEMENT

This Stock Purchase Agreement (“Agreement”) is made and entered into on October 25, 2021 (“Effective Date”), by and between Beyond Commerce, Inc., a Nevada corporation (“Company”), and the investor whose name appears on the signature page hereto (“Investor”).

Recitals

A.The parties desire that, for $1,000,000.00 in cash (“Purchase Amount”) Investor purchase 10,000 shares (“Purchased Shares”) of Series C Convertible Preferred Stock (“Preferred Stock”) that are convertible into 100,000,000 shares (“Conversion Shares”) of the Company’s common stock (“Common Stock”), at the fixed conversion price of $0.01 per share.  

B.The offer and sale of the securities provided for herein are being made pursuant to the exemptions from registration under Section 4(a)(2) of the Act as a transaction by an issuer not involving any public offering, and as a private placement of restricted securities pursuant to Rule 506 of Regulation D. 

Agreement

In consideration of the premises and other good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, and as a material inducement to cause Investor to purchase the Purchased Shares concurrently herewith, Company and Investor agree as follows:

I.Definitions.  The parties acknowledge the accuracy of the Recitals set forth above, which are incorporated herein by reference.  In addition to the terms defined elsewhere in this Agreement and in the Transaction Documents, capitalized terms that are not otherwise defined have the meanings set forth in the Glossary of Defined Terms attached hereto as Exhibit 1. 

II.Stock Purchase. 

A.Purchase.  Subject to the terms and conditions herein and the satisfaction of the conditions to Closing set forth below, Investor hereby subscribes for and irrevocably agrees to purchase, and Company hereby accepts such subscription and irrevocably agrees to sell, issue and deliver the Purchased Shares for the Purchase Amount. 

B.Deliveries.  The following documents will be fully executed and delivered at the Closing: 

1.This Agreement. 

2.Transfer Agent Instructions, in the form attached hereto as Exhibit 2; 

3.Legal Opinion, in the form attached hereto as Exhibit 3;  

4.Officer’s Certificate, in the form attached hereto as Exhibit 4;  

5.Secretary’s Certificate, in the form attached hereto as Exhibit 5; and 

6.A statement from Company’s Transfer Agent showing a book entry for the Purchased Shares, and irrevocable reservation of the Conversion Shares, in the name of Investor. 

C.Closing Conditions.  The consummation of the transactions contemplated by this Agreement (“Closing”) is subject to the satisfaction of each of the following conditions: 

1.All documents, instruments and other writings required to be delivered by Company to Investor pursuant to any provision of this Agreement or in order to implement and effect the transactions contemplated herein have been fully executed and delivered, including without limitation those enumerated in Section II.B above;  

2.The representations and warranties of Company and Investor set forth in this Agreement are true and correct in all material respects as if made on such date (except for representations and warranties expressly made as of a specified date, which will be true as of such date);   

3.No material breach or default has occurred under any Transaction Document or any other agreement between Company and Investor; 

4.There is not then in effect any law, rule or regulation prohibiting or restricting the transactions contemplated in any Transaction Document, or requiring any consent or approval which will not have been obtained, nor is there any completed, ongoing, pending, threatened or, to Company’s knowledge, contemplated proceeding or investigation which may have the effect of prohibiting or adversely affecting any of the transactions contemplated by this Agreement, including without limitation the sale, issuance, listing, trading or resale of any Shares on the Trading Market; no statute, rule, regulation, executive order, decree, ruling or injunction will have been enacted, entered, promulgated or adopted by any court or governmental authority of competent jurisdiction that prohibits the transactions contemplated by this Agreement, and no actions, suits or proceedings will be completed, ongoing, pending, threatened or, to Company’s knowledge, contemplated by any person other than Investor or any Affiliate of Investor, that seek to enjoin or prohibit the transactions contemplated by this Agreement; and 

D.Closing.  Immediately when all conditions set forth in Section II.C have been fully satisfied, Company will issue and sell to Investor, and Investor will purchase the Purchased Shares by payment to Company of the Purchase Price in cash, by wire transfer of immediately available funds to an account designated by Company.  

III.Representations and Warranties. 

A.Representations Regarding Transaction.  Except as set forth under the corresponding section of the Disclosure Schedules, if any, Company hereby represents and warrants to, and as applicable covenants with, Investor as of the Closing: 

2

1.Organization and Qualification.  Company and each Subsidiary is an entity duly incorporated or otherwise organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation or organization, as applicable, with the requisite power and authority to own and use its properties and assets and to carry on its business as currently conducted.  Neither Company nor any Subsidiary is in violation or default of any of the provisions of its respective certificate or articles of incorporation, bylaws or other organizational or charter documents, except as would not reasonably be expected to result in a Material Adverse Effect.  Each of Company and each Subsidiary is duly qualified to conduct business and is in good standing as a foreign corporation or other entity in each jurisdiction in which the nature of the business conducted or property owned by it makes such qualification necessary, except where the failure to be so qualified or in good standing, as the case may be, would not reasonably be expected to result in a Material Adverse Effect and there is no completed, pending or, to the knowledge of Company, contemplated or threatened proceeding in any such jurisdiction revoking, limiting or curtailing or seeking to revoke, limit or curtail such power and authority or qualification. 

2.Authorization; Enforcement.  Company has the requisite corporate power and authority to enter into and to consummate the transactions contemplated by each of the Transaction Documents and otherwise to carry out its obligations hereunder or thereunder.  The execution and delivery of each of the Transaction Documents by Company and the consummation by it of the transactions contemplated hereby or thereby have been duly authorized by all necessary action on the part of Company and no further consent or action is required by Company.  Each of the Transaction Documents has been, or upon delivery will be, duly executed by Company and, when delivered in accordance with the terms hereof, will constitute the valid and binding obligation of Company, enforceable against Company in accordance with its terms, except (a) as limited by general equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors’ rights generally, (b) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies and (c) insofar as indemnification and contribution provisions may be limited by applicable law. 

3.No Conflicts.  The execution, delivery and performance of the Transaction Documents by Company, the issuance and sale of the Shares and the consummation by Company of the other transactions contemplated thereby do not and will not (a) conflict with or violate any provision of Company’s or any Subsidiary’s certificate or articles of incorporation, bylaws or other organizational or charter documents, (b) conflict with, or constitute a default (or an event that with notice or lapse of time or both would become a default) under, result in the creation of any Lien upon any of the properties or assets of Company or any Subsidiary, or give to others any rights of termination, amendment, acceleration or cancellation (with or without notice, lapse of time or both) of, any material agreement, credit facility, debt or other instrument (evidencing Company or Subsidiary debt or otherwise) or other understanding to which Company or any Subsidiary is a party or by which any property or asset of Company or any Subsidiary is bound or affected, (c) conflict with or result in a violation of any material law, rule, regulation, order, judgment, injunction, decree or other restriction of any court or governmental authority to which Company or a Subsidiary is subject (including U.S. federal and state securities laws and regulations), or by which any material property or asset of Company or a Subsidiary is bound or affected, or (d) conflict with or violate the terms of any material agreement by which  

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Company or any Subsidiary is bound or to which any property or asset of Company or any Subsidiary is bound or affected; except in the case of each of clauses (b), (c) and (d), such as would not reasonably be expected to result in a Material Adverse Effect.

4.Litigation.  There is no action, suit, inquiry, notice of violation, proceeding or investigation completed, ongoing, pending, threatened or, to the knowledge of Company, contemplated against or affecting Company, any Subsidiary or any of their respective properties before or by any court, arbitrator, governmental or administrative agency or regulatory authority (federal, state, county, local or foreign) (collectively, an “Action”), which would reasonably be expected to adversely affect or challenge the legality, validity or enforceability of any of the Transaction Documents or the sale, issuance, listing, trading or resale of any Shares on the Trading Market.  The Commission has not issued any stop order or other order suspending the effectiveness of any registration statement filed by Company or any Subsidiary under the Exchange Act or the Act. 

5.Filings, Consents and Approvals.  Neither Company nor any Subsidiary is required to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or registration with, any court or other federal, state, local or other governmental authority or other Person in connection with the execution, delivery and performance by Company of the Transaction Documents, other than required federal and state securities filings, and such filings and approvals as are required to be made or obtained under the applicable Trading Market rules in connection with the transactions contemplated hereby, each of which has been, or if not yet required to be filed will be, timely filed. 

6.Disclosure; Non-Public Information.  Company will timely file a current report on Form 8-K (“Current Report”) on the Effective Date describing the material terms and conditions of this Agreement.  All information that Company has provided to Investor that constitutes or might constitute material, non-public information will be included in the Current Report.  Notwithstanding any other provision, except for information that will be, and only to the extent that it actually is, included in the Current Report, (a) neither Company nor any other Person acting on its behalf has provided Investor or its representatives, agents or attorneys with any information that constitutes or might constitute material, non-public information, including without limitation this Agreement and the Exhibits and Disclosure Schedules hereto, (b) no information contained in the Disclosure Schedules constitutes material non-public information and (c) there is no adverse material information regarding Company that has not been publicly disclosed prior to the Effective Date.  Company understands and confirms that Investor will rely on the foregoing representations and covenants in effecting transactions in securities of Company.  All disclosure provided to Investor regarding Company, its business and the transactions contemplated hereby, including without limitation the Disclosure Schedules, furnished by or on behalf of Company with respect to the representations and warranties made herein are true and correct in all material respects and do not contain any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements made therein, in light of the circumstances under which they were made, not misleading.  

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7.Financial Condition.  The Public Reports set forth as of the dates thereof all outstanding secured and unsecured Indebtedness of Company or any Subsidiary, or for which Company or any Subsidiary has commitments, and any material default with respect to any Indebtedness.  Company does not intend to incur debts beyond its ability to pay such debts as they mature, taking into account the timing and amounts of cash to be payable on or in respect of its debt.   

8.Section 5 Compliance.  No representation or warranty or other statement made by Company in the Transaction Documents contains any untrue statement or omits to state a material fact necessary to make any of them, in light of the circumstances in which it was made, not misleading.  Company is not aware of any facts or circumstances that would cause the transactions contemplated by the Transaction Documents, when consummated, to violate Section 5 of the Act or other federal or state securities laws or regulations. 

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

10.Acknowledgments Regarding Investor.  Company’s decision to enter into this Agreement has been based solely on the independent evaluation by Company and its representatives, and Company acknowledges and agrees that:  

a.Investor is not, has never been, and as a result of the transactions contemplated by the Transaction Documents will not become an officer, director, insider or control person of Company, or to Company’s knowledge 10% or greater shareholder or otherwise an affiliate of Company as defined under Rule 12b-2 of the Exchange Act; 

b.Investor and its representatives have not made and do not make any representations, warranties or agreements with respect to the Shares, this Agreement, or the transactions contemplated hereby other than those specifically set forth in Section III.C below; Company has not relied upon, and expressly disclaims reliance upon, any and all written or oral statements or representations made by any persons prior to this Agreement;  

c.The conversion of Purchased Shares and resale of Conversion Shares will result in dilution, which may be substantial; and Company’s obligation to issue and deliver Conversion Shares in accordance with this Agreement is absolute and unconditional regardless of the dilutive effect that such issuances may have;  

d.Investor is acting solely in the capacity of arm’s length purchaser with respect to this Agreement and the transactions contemplated hereby; neither Investor nor any of its Affiliates, agents or representatives has or is acting as a legal, financial, investment, accounting, tax or other advisor to Company, or fiduciary of Company, or in any similar capacity; neither Investor nor any of its Affiliates, agents or representatives has provided any legal, financial, investment, accounting, tax or other advice to Company; any statement made in connection with  

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this Agreement or the transactions contemplated hereby is not advice or a recommendation, and is merely incidental to Investor’s purchase of the Shares. 

B.Representations Regarding Company.  Except as set forth in any Public Reports or attached exhibits as of the Effective Date, or under the corresponding section of the Disclosure Schedules, if any, Company hereby represents and warrants to, and as applicable covenants with, Investor as of the Closing: 

1.Capitalization.  The capitalization of the Company as of the Effective Date is as described in the Public Reports.  No Person has any right of first refusal, preemptive right, right of participation, or any similar right to participate in the transactions contemplated by the Transaction Documents which has not been waived or satisfied.  Except as a result of the purchase and sale of the Shares, there are no outstanding options, warrants, script rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities, rights or obligations convertible into or exchangeable for, or giving any Person any right to subscribe for or acquire, any shares of Common Stock, or contracts, commitments, understandings or arrangements by which Company or any Subsidiary is or may become bound to issue additional shares of Common Stock or securities convertible into or exercisable for shares of Common Stock.  The issuance and sale of the Shares will not obligate Company to issue shares of Common Stock or other securities to any Person, other than Investor, and will not result in a right of any holder of Company securities to adjust the exercise, conversion, exchange, or reset price under such securities.  All of the outstanding shares of capital stock of Company are validly issued, fully paid and nonassessable, have been issued in material compliance with all federal and state securities laws, and none of such outstanding shares was issued in violation of any preemptive rights or similar rights to subscribe for or purchase securities.  No further approval or authorization of any stockholder, the Board of Directors of Company or others is required for the issuance and sale of the Shares.  There are no existing or contemplated subscription or investment agreements, shareholder agreements, voting agreements or other similar agreements with respect to Company’s capital stock to which Company is a party or, to the knowledge of Company, between or among any of Company’s stockholders. 

2.Public Reports; Financial Statements.  Company has filed all required Public Reports for the one year preceding the Effective Date.  As of their respective dates or as subsequently amended, the Public Reports complied in all material respects with the requirements of the Act and the Exchange Act and the rules and regulations of the Commission promulgated thereunder, as applicable, and none of the Public Reports, when filed, 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 light of the circumstances under which they were made, not misleading.  The financial statements of Company included in the Public Reports, as amended, comply in all material respects with applicable accounting requirements and the rules and regulations of the Commission with respect thereto as in effect at the time of filing.  Such financial statements have been prepared in accordance with GAAP, except as may be otherwise specified in such financial statements or the notes thereto and except that unaudited financial statements may not contain all footnotes required by GAAP, and fairly present in all material respects the financial position of Company and its consolidated subsidiaries as of and for the dates thereof and the results of operations and cash flows for the periods then ended, subject, in the case of unaudited statements, to normal, immaterial, year-end audit adjustments. 

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3.Material Changes.  Since the end of the most recent year for which an Annual Report on Form 10-K has been filed with the Commission, (a) there has been no event, occurrence or development that has had, or that would reasonably be expected to result in, a Material Adverse Effect, (b) Company has not incurred any liabilities (contingent or otherwise) other than (i) trade payables and accrued expenses incurred in the ordinary course of business consistent with past practice, and (ii) liabilities not required to be reflected in Company’s financial statements pursuant to GAAP or required to be disclosed in filings made with the Commission, (c) Company has not altered its method of accounting, (d) Company has not declared or made any dividend or distribution of cash or other property to its stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock, and (e) Company has not issued any equity securities to any officer, director or Affiliate, except pursuant to existing Company equity incentive plans.  Company does not have pending before the Commission any request for confidential treatment of information. 

4.Litigation.  There is no Action completed, ongoing, pending, threatened or, to the knowledge of Company, contemplated, that would reasonably be expected to result in a Material Adverse Effect.  Neither Company nor any Subsidiary, nor any director or officer thereof, nor to the knowledge of Company any greater than 5% shareholder or any director or officer thereof, is or has been the subject of any Action involving a claim of violation of or liability under federal or state securities laws or a claim of breach of fiduciary duty.  There has not been, is not ongoing, pending or threatened, and to the knowledge of Company is not contemplated, any investigation by the Commission or any law enforcement agency involving Company or any current or former director or officer of Company, or to the knowledge of Company greater than 5% shareholder of Company.  

5.No Bankruptcy.  There has not been any petition or application filed, or any judicial or administrative proceeding commenced which has not been discharged, by or against the Company or any Subsidiary or with respect to any of the properties or assets of Company or any Subsidiary under any applicable law relating to bankruptcy, insolvency, reorganization, fraudulent transfer, compromise, arrangement of debt, creditors’ rights and no assignment has been made by the Company or any Subsidiary for the benefit of creditors. 

6.Compliance.  Neither Company nor any Subsidiary (a) is in material default under or in material violation of (and no event has occurred that has not been waived that, with notice or lapse of time or both, would result in a default by Company or any Subsidiary under), nor has Company or any Subsidiary received notice of a claim that it is in material default under or that it is in material violation of, any indenture, loan or credit agreement or any other similar agreement or instrument to which it is a party or by which it or any of its properties is bound (whether or not such default or violation has been waived), (b) is in violation of any order of any court, arbitrator or governmental body, or (c) is or has been in violation of any statute, rule or regulation of any governmental authority, including without limitation all foreign, federal, state and local laws applicable to its business, except in each case as would not reasonably be expected to have a Material Adverse Effect.  

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7.Title to Assets.  Company and each Subsidiary have good and marketable title in fee simple to all real property owned by them that is material to the business of Company and each Subsidiary and good and marketable title in all personal property owned by them that is material to the business of Company and each Subsidiary, in each case free and clear of all Liens, except for Liens that 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 Company and each Subsidiary and Liens for the payment of federal, state or other taxes, the payment of which is neither delinquent nor subject to penalties.  Any real property and facilities held under lease by Company and each Subsidiary are held by them under valid, subsisting and enforceable leases of which Company and each Subsidiary are in compliance. 

8.Patents and Trademarks.  Company and each Subsidiary have, or have rights to use, all patents, patent applications, trademarks, trademark applications, service marks, trade names, copyrights, licenses and other similar rights that are necessary or material for use in connection with their respective businesses as described in the Public Reports and which the failure to so have would have a Material Adverse Effect (collectively, “Intellectual Property Rights”).  Neither Company nor any Subsidiary has received a written notice that the Intellectual Property Rights used by Company or any Subsidiary violates or infringes upon the rights of any Person. To the knowledge of Company, all such Intellectual Property Rights are enforceable and there is no existing infringement by another Person of any of the Intellectual Property Rights of Company or each Subsidiary. 

9.Insurance.  Company and each Subsidiary are insured by insurers of recognized financial responsibility against such losses and risks and in such amounts as are prudent and customary in the businesses in which Company and each Subsidiary are engaged, including but not limited to directors and officers insurance coverage at least equal to the Purchase Amount.  To Company’s knowledge, such insurance contracts and policies are in full force and complete in all material respects.  Neither Company nor any Subsidiary has any reason to believe that it will not be able to renew its existing insurance coverage as and when such coverage expires or to obtain similar coverage from similar insurers as may be necessary to continue its business without an increase in cost that would constitute a Material Adverse Effect. 

10.Transactions with Affiliates and Employees.  None of the officers or directors of Company and, to the knowledge of Company, none of the employees of Company is presently a party to any transaction with Company or any Subsidiary (other than for services as employees, officers and 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 officer, director or such employee or, to the knowledge of Company, any entity in which any officer, director, or any such employee has a substantial interest or is an officer, director, trustee or partner, in each case in excess of $120,000 other than (i) for payment of salary or consulting fees for services rendered, (ii) reimbursement for expenses incurred on behalf of Company and (iii) for other employee benefits, including stock option agreements under any equity incentive plan of Company. 

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11.Certain Fees.  No brokerage or finder’s fees or commissions are or will be payable to any broker, financial advisor or consultant, finder, placement agent, investment banker, bank or other Person with respect to the transactions contemplated by this Agreement.  Notwithstanding any other provision, Investor will have no obligation with respect to any fees or with respect to any claims made by or on behalf of other Persons for fees of a type contemplated in this section that may be due in connection with the transactions contemplated by this Agreement or the other Transaction Documents. 

12.Listing and Maintenance Requirements.  The Common Stock is registered pursuant to Section 12 of the Exchange Act, and Company has taken no action designed to, or which to its knowledge is likely to have the effect of, terminating the registration of the Common Stock under the Exchange Act nor has Company received any notification that the Commission is contemplating terminating such registration.  Company has not, in the 12 months preceding the Effective Date, received notice from any Trading Market on which the Common Stock is or has been listed or quoted to the effect that Company is not in compliance with the listing or maintenance requirements of such Trading Market.  Company is, and has no reason to believe that it will not in the foreseeable future continue to be, in compliance with all such listing and maintenance requirements. 

13.Foreign Corrupt Practices.  Neither Company, nor to the knowledge of Company, any agent or other person acting on behalf of Company, has (a) directly or indirectly, used any corrupt funds for unlawful contributions, gifts, entertainment or other unlawful expenses related to foreign or domestic political activity, (b) made any unlawful payment to foreign or domestic government officials or employees or to any foreign or domestic political parties or campaigns from corporate funds, (c) failed to disclose fully any contribution made by Company, or made by any person acting on its behalf of which Company is aware, which is in violation of law, or (d) violated in any material respect any provision of the Foreign Corrupt Practices Act of 1977, as amended. 

14.Accountants.  Company’s accountants are set forth in the Public Reports and such accountants are an independent registered public accounting firm. 

15.No Disagreements with Accountants or Lawyers.  There are no material disagreements presently existing, or reasonably anticipated by Company to arise, between Company and the accountants or lawyers formerly or presently employed by Company. 

16.Powers of Attorney.  There are no outstanding powers of attorney executed on behalf of the Company or any Subsidiary.   

C.Representations and Warranties of Investor.  Investor hereby represents and warrants to Company as of the Closing as follows: 

1.Organization; Authority.  Investor is an entity validly existing and in good standing under the laws of the jurisdiction of its organization with full right, company power and authority to enter into and to consummate the transactions contemplated by the Transaction Documents and otherwise to carry out its obligations thereunder.  The execution, delivery and performance by Investor of the transactions contemplated by this Agreement have  

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been duly authorized by all necessary company or similar action on the part of Investor.  Each Transaction Document to which it is a party has been, or will be, duly executed by Investor, and when delivered by Investor in accordance with the terms hereof, will constitute the valid and legally binding obligation of Investor, enforceable against it in accordance with its terms, except (a) as limited by general equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors’ rights generally, (b) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies, and (c) insofar as indemnification and contribution provisions may be limited by applicable law.

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

IV.Other Provisions. 

A.Disclosure and Publicity.  Company will provide to Investor for review and approval prior to filing or issuing any current, periodic or public report, registration statement, press release, public statement or communication relating to or referencing Investor, any Transaction Documents or the transactions contemplated thereby, any such approval not to be unreasonably withheld.  

B.No Non-Public Information.  Company covenants and agrees that neither it nor any other Person acting on its behalf will, provide Investor or its agents or counsel with any information that Company believes or reasonably should believe will constitute material non-public information after Closing.  On and after Closing, neither Investor nor any Affiliate of Investor will have any duty of trust or confidence that is owed directly, indirectly, or derivatively, to Company or the stockholders of Company, or to any other Person who is the source of material non-public information regarding Company.  Company understands and confirms that Investor will be relying on the foregoing in effecting transactions in securities of Company, including without limitation sales of the Shares. 

C.Indemnification of Investor. 

1.Obligation to Indemnify.  Subject to the provisions of this Section IV.C, Company will indemnify and hold Investor, its Affiliates, managers and advisors, and each of their officers, directors, shareholders, partners, employees, representatives, agents and attorneys, and any person who controls Investor within the meaning of Section 15 of the Act or Section 20 of the Exchange Act (collectively, “Investor Parties” and each a “Investor Party”), harmless from any and all losses, liabilities, obligations, claims, contingencies, damages, reasonable costs and expenses, including all judgments, amounts paid in settlements, court costs and reasonable attorneys’ fees and costs of investigation (collectively, “Losses”) that any Investor Party may suffer or incur as a result of or relating to (a) any breach of any of the representations, warranties, covenants or agreements made by Company in this Agreement or in the other Transaction  

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Documents, (b) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement, Prospectus, Prospectus Supplement, or any information incorporated by reference therein, or arising out of or based upon any omission or alleged omission to state a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, (c) any action by Company or a creditor or stockholder of Company who is not an Affiliate of an Investor Party, challenging the transactions contemplated by the Transaction Documents, or (d) any action or proceeding based upon, connected with, or otherwise arising out of or in any way relating to any Transaction Documents, the resale of Conversion Shares or any shares of Common Stock by Investor, any requirement that any of the Released Parties was or is required to register as a dealer under federal securities laws, and all matters related thereto; provided, however, that Company will not be obligated to indemnify any Investor Party for any Losses finally adjudicated to be caused solely by (i) a false statement of material fact contained within written information provided by such Investor Party expressly for the purpose of including it in the applicable Registration Statement, Prospectus, Prospectus Supplement, or (ii) such Investor Party’s unexcused material breach of an express provision of this Agreement or another Transaction Document. 

2.Procedure for Indemnification.  If any action will be brought against an Investor Party in respect of which indemnity may be sought pursuant to this Agreement, such Investor Party will promptly notify Company in writing, and Company will have the right to assume the defense thereof with counsel of its own choosing.  Investor Parties will have the right to employ separate counsel in any such action and participate in the defense thereof, but the reasonable fees and expenses of such counsel will be at the expense of Investor Parties except to the extent that (a) the employment thereof has been specifically authorized by Company in writing, (b) Company has failed after a reasonable period of time to assume such defense and to employ counsel or (c) in such action there is, in the reasonable opinion of such separate counsel, a material conflict with respect to the dispute in question on any material issue between the position of Company and the position of Investor Parties such that it would be inappropriate for one counsel to represent Company and Investor Parties.  Company will not be liable to Investor Parties under this Agreement (i) for any settlement by an Investor Party effected without Company’s prior written consent, which will not be unreasonably withheld or delayed; or (ii) to the extent, but only to the extent that a loss, claim, damage or liability is either attributable to Investor’s breach of any of the representations, warranties, covenants or agreements made by Investor in this Agreement or in the other Transaction Documents.  In no event will the Company be liable for the reasonable fees and expenses for more than one separate firm of attorneys (plus local counsel as applicable) to represent all Investor Parties. 

3.Other than the liability of Investor to Company for uncured material breach of the express provisions of this Agreement, no Investor Party will have any liability to Company or any Person asserting claims on behalf of or in right of Company as a result of acquiring the Shares under this Agreement. 

D.Subsequent Financings.   

1.As long as Investor holds any Shares, Company will not enter into any agreement that in any way restricts its ability to enter into any agreement, amendment or waiver with Investor.   

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2.As long as Investor holds any Shares, Company will not agree or enter into any equity or convertible financing (i) that has any form of registration rights, or (ii) pursuant to which shares of Common Stock or Common Stock equivalents may effectively be issued (A) at a discount, (B) at a variable price, or (C) where the price or number of shares are subject to any type of variability or reset feature.  Provided, however, that Company may enter into any transaction:  (a) with Investor, (b) for unregistered, non-convertible debt, (c) for restricted stock with no registration rights, (d) for Common Stock at a fixed price above the Market Price, (e) reasonably equivalent value given as consideration for a strategic acquisition, or (f) that includes an immediate, unconditional offer to Investor to purchase the Note by wire transfer of immediately available funds in  the amount of 125% of the then outstanding Liqiuidation Value. 

3.So long as Investor holds any Shares, upon any issuance by Company or any of its subsidiaries of any security with any term more favorable to the holder of such security or with a term in favor of the holder of such security that was not similarly provided to the Holder of the Note, then Company will notify the Holder of such additional or more favorable term and such term, at Holder’s option, shall become a part of the transaction documents with the Holder.  The types of terms contained in another security that may be more favorable to the holder of such security include, but are not limited to, terms addressing conversion discounts, prepayment rate, conversion look back periods, interest rates, original issue discounts, stock sale price, private placement price per share, and warrant coverage. 

E.Terms of Future Financings.  So long as Investor holds and Shares, upon any issuance by Company of any security with any term or condition more favorable to the holder of such security or with a term in favor of the holder of such security that was not similarly provided to Investor in the Transaction Documents, then Company shall notify Investor of such additional or more favorable term and such term, at Investor’s option, shall become a part of the Transaction Documents for the benefit of Investor. Additionally, if Company fails to notify Investor of any such additional or more favorable term, but Investor becomes aware that Company has granted such a term to any third party, Investor may notify Company of such additional or more favorable term and such term shall become a part of the Transaction Documents retroactive to the date on which such term was granted to the applicable third party. The types of terms contained in another security that may be more favorable to the holder of such security include, but are not limited to, terms addressing conversion discounts, conversion lookback periods, interest rates, original issue discounts, stock sale price, conversion price per share, warrant coverage, warrant exercise price, and anti-dilution/conversion and exercise price resets. 

F.Right of First Refusal.  If at any time while any Shares are outstanding, Company has a bona fide offer of capital or financing from any person, that Company intends to act upon, then Company must first offer such opportunity to the Holder to provide such capital or financing to Company on the same terms as each respective person’s terms.  Except as otherwise provided in any Transaction Documents, should Holder be unwilling or unable to provide such capital or financing to Company within 10 Trading Days from Holder’s receipt of written notice of the offer from Company, then Company may obtain such capital or financing from that respective person upon the exact same terms and conditions offered by Company to Holder, which transaction must be completed within 30 days after the date of the notice.  Company will,  

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within 3 days of the respective closing, utilize 50% of all proceeds received by Company by each respective person that provides capital or financing to Company, to redeem the Note.  If the Borrower does not receive the capital or financing from the respective person within 30 days after the date of the respective notice, then Company must again offer the capital or financing opportunity to Holder as described above, and the process detailed above shall be repeated. 

V.General Provisions. 

A.Notice.  Unless a different time of day or method of delivery is specifically provided in the Transaction Documents, any and all notices or other communications or deliveries required or permitted to be provided hereunder will be in writing and will be deemed given and effective on the earliest of: (a) the date of transmission, if such notice or communication is delivered via facsimile or electronic mail prior to 5:00 p.m. Eastern time on a Trading Day and an electronic confirmation of delivery is received by the sender, (b) the next Trading Day after the date of transmission, if such notice or communication is delivered later than 5:00 p.m. Eastern time or on a day that is not a Trading Day, (c) the next Trading Day following the date of mailing, if sent by U.S. nationally recognized overnight courier service, or (d) upon actual receipt by the party to whom such notice is required to be given.  The addresses for such notices and communications are such other address as may be designated in writing, in the same manner, by such Person. 

B.Amendments; Waivers.  No provision of this Agreement may be waived or amended except in a written instrument signed, in the case of an amendment, by Company and Investor or, in the case of a waiver, by the party against whom enforcement of any such waiver is sought.  No waiver of any default with respect to any provision, condition or requirement of this Agreement will be deemed to be a continuing waiver in the future or a waiver of any subsequent default or a waiver of any other provision, condition or requirement hereof, nor will any delay or omission of either party to exercise any right hereunder in any manner impair the exercise of any such right. 

C.No Third-Party Beneficiaries.  Except as otherwise set forth in Section IV.C, this Agreement and the Transaction Documents will inure solely to the benefit of the parties hereto, and is not for the benefit of, nor may any provision hereof be enforced by, any other Person.  Other than the Investor Parties described in Section IV.C, a Person who is not a party to this Agreement shall not have any rights to enforce any term of this Agreement or any Transaction Document. 

D.Fees and Expenses.  Except as otherwise provided in this Agreement, each party will pay the fees and expenses of its own advisers, attorneys, accountants and other experts, if any, and all other expenses incurred by such party incident to the negotiation, preparation, execution, delivery and performance of the Transaction Documents.  Company acknowledges and agrees that Investor’s counsel solely represents Investor, and does not represent Company or its interests in connection with the Transaction Documents or the transactions contemplated thereby.  Company will pay all stamp and other taxes and duties, if any, levied in connection with the sale or issuance of the Shares to Investor. 

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E.Severability.  If any provision of this Agreement is held to be invalid or unenforceable in any respect, the validity and enforceability of the remaining terms and provisions of this Agreement will not in any way be affected or impaired thereby and the parties will attempt to agree upon a valid and enforceable provision that is a reasonable substitute therefor, and upon so agreeing, will incorporate such substitute provision in this Agreement. 

F.Replacement of Certificates.  If any certificate or instrument evidencing any Shares is mutilated, lost, stolen or destroyed, Company will issue or cause to be issued in exchange and substitution for and upon cancellation thereof, or in lieu of and substitution therefor, a new certificate or instrument, but only upon receipt of evidence reasonably satisfactory to Company of such loss, theft or destruction and customary and reasonable indemnity, if requested.  The applicants for a new certificate or instrument under such circumstances will also pay any reasonable third-party costs associated with the issuance of such replacement certificates. 

G.Governing Law.  All matters between the parties, including without limitation questions concerning the construction, validity, enforcement and interpretation of the Transaction Documents will be governed by and construed and enforced in accordance with the laws of the state of Nevada, without regard to the principles of conflicts of law that would require or permit the application of the laws of any other jurisdiction, except for corporation law matters applicable to Company which will be governed by the corporate law of its jurisdiction of formation.  The parties hereby waive all rights to a trial by jury.  In any action, arbitration or proceeding, including appeal, arising out of or relating to any of the Transaction Documents or otherwise involving the parties, the prevailing party will be awarded its reasonable attorneys’ fees and other costs and expenses reasonably incurred in connection with the investigation, preparation, prosecution or defense of such action or proceeding.  

H.Arbitration.  Any dispute, controversy, claim or action of any kind arising out of, relating to, or in connection with this Agreement, or in any way involving Company and Investor or their respective Affiliates, including any issues of arbitrability, will be resolved solely by final and binding arbitration in English before a retired judge at JAMS International, or its successor, in the U.S. Virgin Islands, pursuant to the most expedited and Streamlined Arbitration Rules and Procedures available.  Any interim or final award may be entered and enforced by any court of competent jurisdiction.  The final award will include the prevailing party’s reasonable arbitration, expert witness and attorney fees, costs and expenses.  Notwithstanding the foregoing, Investor may in its sole discretion bring an action in Nevada or Florida in aid of arbitration or for temporary, preliminary or provisional relief pending completion of arbitration.  

I.Remedies.  In addition to being entitled to exercise all rights provided herein or granted by law, including recovery of damages, each of Investor and Company will be entitled to specific performance under the Transaction Documents, and equitable and injunctive relief to prevent any actual or threatened breach under the Transaction Documents, to the full extent permitted under applicable laws.  Without limitation of the foregoing, Company acknowledges that the rights and benefits of Investor pursuant to the Certificate of Designations are unique and that no adequate remedy exists at law if Company breaches or fails timely perform any of its obligations thereunder, that it would be difficult to determine the amount of damages resulting therefrom, that it would cause irreparable injury to Investor, and that any potential harm to  

14

Company would be adequately and fully compensable with monetary damages; accordingly, Investor will be entitled to a compulsory remedy of immediate specific performance, temporary, interim, preliminary and final injunctive relief to enforce the provisions thereof, including without limitation requiring Company and its transfer agent, attorneys, officers and directors to immediately take all actions necessary to issue and deliver the number of Conversion Shares stated by Investor, and prohibiting any Common Stock from being issued or transferred until after all Conversion Shares have been received by Investor in electronic form and fully cleared for trading, which requirements will not be stayed for any reason, without the necessity of posting any bond.  Company hereby absolutely, unconditionally and irrevocably waives all objections and rights to oppose any motion, application or request by Investor to issue any number of Conversion Shares, and all rights to stay or appeal any resulting order, and any appeal filed by Company or on its behalf will be immediately and automatically dismissed.  Company further acknowledges that it has an adequate remedy at law with respect to the conversion provisions of the Certificate of Designations in a claim for money damages; accordingly, Company may not restrain or enjoin its transfer agent, Investor or any brokers from receiving or reselling any Conversion Shares, and any action for temporary, preliminary or final injunctive relief filed by Company or on its behalf will be immediately and automatically dismissed.

J.Headings.  The titles and headings in this Agreement and the Transaction Documents are for convenience only, do not constitute a part of this Agreement and will not be deemed to limit or affect any of the provisions hereof 

K.Time of the Essence.  Time is of the essence with respect to all provisions of this Agreement,  and all Transaction Documents. 

L.Survival.  The representations and warranties contained herein will survive the Closing and the delivery of the Purchased Shares until all the Purchased Shares have been converted or redeemed.  Neither party will be under any obligation to update or supplement any of its representations or warranties following the Closing due to a change that occurred after the Closing. 

M.Construction.  The parties agree that each of them and/or their respective counsel has reviewed and had an opportunity to revise the Transaction Documents and, therefore, the normal rule of construction to the effect that any ambiguities are to be resolved against the drafting party will not be employed in the interpretation of the Transaction Documents or any amendments hereto. 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.  All currency references in any Transaction Document are to U.S. dollars. 

N.Further Assurances.  Each party will take all further actions and execute all further documents as may be reasonably necessary to implement the provisions and carry out the intent of this Agreement fully and effectively.  

O.General Release. Company, on behalf of itself and on behalf of each of its predecessors, successors, parents, subsidiaries, shareholders, and affiliated and/or related companies, and each of its respective present and former officers, directors, shareholders,  

15

employees, representatives, business entities, executors, administrators, conservators, assignors and assignees (collectively, the "Releasing Parties") hereby knowingly and voluntarily fully and forever absolutely and irrevocably waive, release and discharge Investor and its predecessors, successors, parents, subsidiaries, and affiliated and/or related companies and entities, and each of their respective present and former officers, directors, shareholders, partners, members, employees, representatives, agents, attorneys, advisors, business entities, executors, administrators, conservators, assignors and assignees and all parties acting through, under or in concert with them, and each of them, in their individual and representative capacities (collectively, the "Released Parties") from any and all claims, charges, complaints, grievances, demands, liens, actions, suits, causes of action, obligations, controversies, debts, costs, indemnity, attorneys' fees, expenses, damages, judgments, orders, and liabilities of whatever kind and/or nature in law, equity or otherwise, whether now known or unknown, suspected or unsuspected, which have existed or may have existed, or which do exist or which hereafter can, shall or may exist as of the date this Agreement is executed, including without limitation any that are based upon, connected with, or otherwise arising out of or in any way relating to any Transaction Documents, the resale of Conversion Shares or any shares of Common Stock by Investor, any requirement that any of the Released Parties was or is required to register as a dealer under federal securities laws, and all matters related thereto (collectively, the "Released Claims"). The Releasing Parties, and each of them, expressly waive and relinquish, to the fullest extent permitted by law, the provisions, rights and benefits conferred by any law which would limit the scope of the release provided above. The Releasing Parties acknowledge that they or any of them may hereafter discover facts in addition to or different from those which they now know to be true with respect to the subject matters of the claims released herein, but hereby stipulate and agree that they have fully, finally, and forever settled and released any and all such claims, whether known or unknown, suspected or unsuspected, contingent or non-contingent, concealed or hidden, which now exist or heretofore existed upon any theory of law or equity now existing or coming into existence in the future, without regard to the discovery or existence of such different or additional facts.

 

P.Execution.  This Agreement may be executed in two or more counterparts, all of which when taken together will be considered one and the same agreement and will become effective when counterparts have been signed by each party and delivered to the other party, it being understood that both parties need not sign the same counterpart.  In the event that any signature is delivered by portable document format, facsimile or electronic transmission, such signature will 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. 

Q.Entire Agreement.  This Agreement, including the Exhibits hereto, which are hereby incorporated herein by reference, contains the entire agreement and understanding of the parties, and supersedes all prior and contemporaneous agreements, term sheets, letters, discussions, communications and understandings, both oral and written, which the parties acknowledge have been merged into this Agreement.  No party, representative, advisor, attorney or agent has relied upon any collateral contract, agreement, assurance, promise, understanding, statement or representation not expressly set forth herein.  The parties hereby absolutely, unconditionally and irrevocably waive all rights and remedies, at law and in equity, directly or  

16

indirectly arising out of or relating to, or which may arise as a result of, any Person’s reliance on any such statement or assurance.

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by their respective authorized signatories on the Effective Date.

 

Company:

 

BEYOND COMMERCE, INC.

 

 

By:    

Name:    

Title:    

 

 

Investor:

 

 

  

Investor Name

 

 

By:    

Name:    

Title:    

17

Exhibit 1

Glossary of Defined Terms

“$” means the currency of the United States of America, in which all dollar amounts in the Transaction Documents will be expressed.

“Act” means the U.S. Shares Act of 1933, as amended, and the rules and regulations promulgated by the Commission thereunder.

“Action” has the meaning set forth in Section III.A.4.

“Affiliate” means any Person that, directly or indirectly through one or more intermediaries, controls, is controlled by, or is under common control with a Person, as such terms are used in and construed under Rule 144 under the Act.  

“Agreement” means this Stock Purchase Agreement.

“Closing” has the meaning set forth in Section II.C.

“Commission” means the U.S. Shares and Exchange Commission. 

“Common Stock” means the Common Stock of Company and any replacement or substitute thereof, or any share capital into which such Common Stock will have been changed or any share capital resulting from a reclassification of such Common Stock.

“Company” has the meaning set forth in the first paragraph of the Agreement.

“Conversion Shares” includes all shares of Common Stock issuable in relation to the Purchased Shares.

“Disclosure Schedules” means the disclosure schedules of Company delivered concurrently herewith.  The Disclosure Schedules will contain no material non-public information.

 

“DTC” means The Depository Trust Company, or any successor performing substantially the same function for Company.

“Exchange Act” means the U.S. Shares Exchange Act of 1934, as amended, and the rules and regulations promulgated by the Commission thereunder.

“Effective Date” has the meaning set forth in the first paragraph of the Agreement.

“GAAP” means U.S. generally accepted accounting principles applied on a consistent basis during the periods involved.

“Indebtedness” means (a) any liabilities for borrowed money or amounts owed in excess of $100,000, other than trade accounts payable incurred in the ordinary course of business, (b) all guaranties, endorsements and other contingent obligations in respect of Indebtedness of others, 

1

whether or not the same are or should be reflected in Company’s balance sheet, or the notes thereto, except guaranties by endorsement of negotiable instruments for deposit or collection or similar transactions in the ordinary course of business; and (c) the present value of any lease payments in excess of $100,000 due under leases required to be capitalized in accordance with GAAP.  

“Intellectual Property Rights” has the meaning set forth in Section III.B.8.

“Legal Opinion” means an opinion from Company’s independent legal counsel, in the form attached as Exhibit 3.

“Liens” means a lien, charge, security interest or encumbrance in excess of $100,000, or a right of first refusal, preemptive right or other restriction.

“Material Adverse Effect” includes any material adverse effect on (a) the legality, validity or enforceability of any Transaction Document, (b) the results of operations, assets, business, or financial condition of Company and the Subsidiaries, taken as a whole, which is not disclosed in the Public Reports prior to the Effective Date, (c) Company’s ability to perform in any material respect on a timely basis its obligations under any Transaction Document or (d) the sale, issuance, registration, listing, resale and trading on the Trading Market of the Conversion Shares.

“Officer’s Certificate” means a certificate executed by an authorized officer of Company, in the form attached as Exhibit 4.

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

“Public Reports” includes all reports filed by Company under the Act or the Exchange Act, including pursuant to Section 13(a) or 15(d) thereof, for the two full fiscal years preceding the Effective Date and thereafter. 

“Investor” has the meaning set forth in the first paragraph of the Agreement.

“Regulation D” means Regulation D under the Shares Act and the rules promulgated by the Commission thereunder. 

“Secretary’s Certificate” means a certificate, in the form attached as Exhibit 5, signed by the secretary of Company. 

“Shares” include the Purchased Shares and the Conversion Shares.

“Short Sale” means a “short sale” as defined in Rule 200 of Regulation SHO of the Exchange Act.

2

“Subsidiary” means any Person owned or controlled by the Company, or in which Company, directly or indirectly, owns a majority of the capital stock or similar interest that would be disclosable pursuant to Regulation S-K, Item 601(b)(21).

“Trading Day” means any day on which the Common Stock is traded on the Trading Market; provided that it will not include any day on which the Common Stock is (a) scheduled to trade for less than 5 hours, or (b) suspended from trading.

“Trading Market” means OTCQX, OTCQB, OTC Pink Current Information, Nasdaq Stock Market, New York Stock Exchange, NYSE American, or any equivalent replacement exchange or quotation system.

“Transaction Documents” means this Agreement, the other agreements, certificates and documents referenced herein or the form of which is attached hereto, and the exhibits, schedules and appendices hereto and thereto.

“Transfer Agent” means the current transfer agent for Company, and any future transfer agent for the Company.

“Transfer Agent Instructions” means a letter agreement executed by Company, its current transfer agent, and any successor transfer agent for the Common Stock, in the form attached as Exhibit 2.

3

Exhibit 3

 

Form of Transfer Agent Instructions

 

October 25, 2021

 

Colonial Stock Transfer Co, Inc.

66 Exchange Place, Ste 100

Salt Lake City, UT 84111

 

Re:Beyond Commerce, Inc. 

 

Ladies and Gentlemen:

 

In accordance with the Stock Purchase Agreement  (“Agreement”), dated October 25, 2021, by and between Beyond Commerce, Inc., a Nevada corporation (“Company”), and _________________________ (“Investor”), pursuant to which Company is required to reserve, issue and deliver shares (“Shares”) of Company’s Common Stock (“Common Stock”) upon conversion of one or more shares of Series C Convertible Preferred Stock (“Preferred”) purchased by Investor, this will serve as our irrevocable, absolute and unconditional instruction, authorization and direction to you to:  (1) immediately and automatically upon an increase in authorized Common Stock reserve 100,000,000 Shares for issuance to Investor upon conversion of the Preferred; (2) at any time upon the written request from either Company, or from Investor with a copy to Company, provide Investor with the then total outstanding number of shares of Common Stock; and (3) upon receipt of a copy of a Conversion Notice in the form attached hereto as Appendix I, from either Company, or from Investor with a copy to Company, immediately issue the Shares requested.  Capitalized terms used herein without definition will have the respective meanings ascribed to them in the Agreement.     

 

The Shares will remain in the created reserve until the earlier of their issuance or such date as both Investor and Company provide written instructions that the Shares or any part of them may be taken out of the reserve and will no longer be subject to the terms of these instructions.   

 

Upon your receipt of a Delivery Notice from either Company or Investor, you are to immediately process the instruction in accordance with your most-expedited same-day rush procedures, and use your commercially reasonable best efforts to issue and deliver to Investor forthwith the number of Shares stated in the Delivery Notice, either:  (a) only if Company is not approved through DTC, and either Company or Investor provides an opinion of counsel to the effect that the Shares may be issued without restrictive legend, by delivering by overnight carrier to the address specified in the notice a physical certificate bearing no restrictive legend, by delivering by overnight carrier to the address specified in the notice a physical certificate bearing no restrictive legend; or (b) if Company is DTC eligible and either Company or Investor provides an opinion of counsel to the effect that the Shares may be issued without restrictive legend, by issuing pursuant to the DTC Fast Automated Securities Transfer (FAST) Program, crediting to Investor’s or its designee’s balance account with DTC through its Deposit  

1

Withdrawal At Custodian (DWAC) system, and notifying Investor to cause its bank or broker to initiate the transaction through the DWAC system.  You will at all times diligently take or cause to be taken all actions necessary to cause the Shares to be issued forthwith.

 

Company hereby confirms that the Shares should not be subject to any stop-transfer restrictions and will otherwise be freely transferable on the books and records of Company, and if the Shares are certificated, the certificates will not bear any legend restricting transfer of the Shares represented thereby, if a legal opinion is provided as set forth in the preceding paragraph. 

 

Company hereby confirms that no instructions other than as contemplated herein will or may be given to you by Company with respect to the Shares.  Company may not instruct you to delay or disregard any reserve request or Delivery Notice and you may not do so.  You are to comply promptly with any Delivery Notice or share reservation notice received from Investor, notwithstanding any contrary instructions from Company.   

 

Company will not replace you as Company’s transfer agent, until a reputable registered transfer agent has agreed in writing to serve as Company’s transfer agent and to be bound by all terms and conditions of this letter agreement.  In the event that you resign as Company’s transfer agent, Company will engage a suitable replacement reputable registered transfer agent that will agree to serve as transfer agent for Company and be bound by the terms and conditions of these irrevocable instructions as soon as practicable and in any event within 3 Trading Days.  You may not disclose any information, deliver any documents, or transfer any files to any successor transfer agent until after Investor acknowledges in writing that a suitable successor transfer agent has agreed in writing to be bound by the terms and conditions of these instructions.

 

Company must keep its bill current with you.  If Company is not current and is on suspension, Investor will have the right to pay the amount of your standard fees in order for you to act upon these instructions.  If payment for the reservation or issuance is not made by Company or Investor, you have no obligation to act under instructions until your fees are paid. 

 

Company and you hereby acknowledge and confirm that complying with the terms of these instructions does not and will not prohibit you from satisfying any and all fiduciary responsibilities and duties you may owe to Company.   

 

Company will indemnify you and your officers, directors, principals, partners, advisors, attorneys, agents and representatives, and hold each of them harmless from and against any and all loss, cost, liability, damage, claim or expense (including the reasonable fees and disbursements of attorneys) incurred by or asserted against you or any of them arising out of or in connection with complying with any Delivery Notice or any other instruction from Investor, except that Company will not be liable hereunder for any amounts in respect of which it is finally determined by a court of competent jurisdiction to be due solely to your fraud, willful misconduct or gross negligence.  You are entitled to indemnity and will have no liability to Company in respect of any action taken in compliance with any Delivery Notice or instruction from Investor, notwithstanding any contrary instructions from Company.  Accordingly, you shall have no duty or obligation to confirm the accuracy of any calculations or information set forth in any Delivery Notice submitted by the Investor. 

2

Investor is intended to be and is a third party beneficiary hereof, and no amendment or modification to the instructions set forth herein may be made without the prior written consent of Investor.  The above instructions cannot be revoked, cancelled or modified without prior written approval of Investor. 

 

The Board of Directors of Company has approved the foregoing irrevocable instructions and does hereby extend Company’s irrevocable agreement to indemnify your firm for all loss, liability or expense in carrying out the authority and direction herein contained on the terms herein set forth.  You have not previously received contrary instructions from Company or its agents, nor are you aware of any facts or circumstances that would make the transaction improper or illegal under applicable laws or regulations. 

 

The terms of this letter shall be governed by the laws of the State of Nevada without regard to the conflicts of laws principles thereof, and any action arising out of or relating to these instructions will be filed in the U.S. District Court for the District of Nevada. 

 

IN WITNESS WHEREOF, the parties have caused this letter agreement regarding Transfer Agent Instructions to be duly executed and delivered as of the date first written above. 

 

BEYOND COMMERCE, INC.

 

 

By:    

Name:    

Title:    

 

 

ACCEPTED AND AGREED:

 

COLONIAL STOCK TRANSFER CO., INC.

 

 

By:    

Name:    

Title:    

 

 

3

Appendix I

 

Form of Conversion Notice

 

CONVERSION NOTICE

 

Reference is made to the Series C Convertible Preferred Stock (“Preferred”) issued by Beyond Commerce, Inc., a Nevada corporation (“Company”) to the Investor named below.  In accordance with and pursuant to the Certificate of Designations, Investor hereby converts the number of shares of Preferred stated below into shares of Common Stock (“Common Stock”) of Company, as of the date and time first stated below.

Conversion Date:      

Preferred Shares Converted:    

Conversion Shares Due:      

 

 

Please issue the Common Stock being converted via DWAC in the following name and to the following broker, and notify when Company’s transfer agent is ready for broker to initiate. DWAC:

 

	Issue to:

	 

	Broker:

	 

	Account #:

	 

	DTC#

	 

	Contact:

	 

	 

	 

4

Exhibit 3

 

Form of Legal Opinion

 

 

1.The Company is a corporation validly existing and in good standing under the laws of the state of its incorporation.  

 

2.The Company has the requisite corporate power and authority to execute, deliver and perform its obligations under the Transaction Documents, to sell and issue the Shares under the Stock Purchase Agreement and to issue the Common Stock issuable upon conversion of the Purchased Shares pursuant to the Certificate of Designations for Series C Convertible Preferred Stock (the “Conversion Shares”). 

3.The Purchased Shares have been duly authorized by the Company, and upon issuance and delivery in accordance with the terms of the Stock Purchase Agreement, the Purchased Shares will be validly issued, fully paid and nonassessable.  The Conversion Shares issuable upon conversion of the Purchased Shares have been duly authorized and reserved for issuance, and upon issuance and delivery upon conversion thereof in accordance with the terms of the Certificate of Designations, will be validly issued, fully paid and nonassessable.  The rights, preferences and privileges of the Purchased Shares are as stated in the Certificate of Designations.  Such issuance of the Purchased Shares and the Conversion Shares will not be subject to any statutory or, to our knowledge, contractual preemptive rights of any stockholder of the Company. 

4.The execution, delivery and performance of the Stock Purchase Agreement, the Note and other Transaction Documents have been duly authorized by all necessary corporate action on the part of the Company, and the Transaction Documents have been duly executed and delivered by the Company. 

5.Each Transaction Document constitutes a valid and binding agreement of the Company enforceable against the Company in accordance with its terms, except as enforcement may be limited by applicable bankruptcy, insolvency, reorganization, arrangement, moratorium or other similar laws affecting creditors’ rights, and subject to general equity principles and to limitations on availability of equitable relief, including specific performance. 

6.The execution and delivery of the Transaction Documents by the Company does not, and the Company’s performance of its obligations thereunder will not (a) violate the Certificate of Incorporation or the Bylaws, each as in effect on the date hereof, (b) violate in any material respect any federal or Nevada state law, rule or regulation, or judgment, order or decree of any state or federal court or governmental or administrative authority, in each case that, to our knowledge, is applicable to the Company or its properties or assets (except to the extent such violation would not have a material adverse effect on the Company’s business, properties, assets, financial condition or results of operations or prevent the performance by the Company of any material obligation under the Transaction Documents), or (b) to our knowledge, require the authorization, consent, approval of or other action of, notice to or filing or qualification with, any Nevada state or federal governmental authority, except (i) as have been, or will be prior to the  

Closing, duly obtained or made, (ii) any filings which may be required under applicable federal securities, state securities or blue sky laws and  (iii) the filing and effectiveness of the Registration Statement, except to the extent failure to be so obtained or made would not have a material adverse effect on the Company’s business, properties, assets, financial condition or results of operations or its ability to consummate the transactions contemplated under the Transaction Documents.

7.The Company is not, and immediately after the consummation of the transactions contemplated by the Transaction Documents will not be, an investment company within the meaning of Investment Company Act of 1940, as amended. 

8.To our knowledge, there is no claim, action, suit, proceeding, arbitration, investigation or inquiry, pending or threatened, before any court or governmental or administrative body or agency, or any private arbitration tribunal, against the Company that challenges the validity or enforceability of, or seeks to enjoin the performance of, the Transaction Documents. 

 

Exhibit 4

Form of Officer’s Certificate

 

BEYOND COMMERCE, INC.

 

October 25, 2021

The undersigned hereby certifies that:

The undersigned is the duly appointed Chief Executive Officer of Beyond Commerce, Inc., a Nevada corporation (“Company”).

This Officer’s Certificate (“Certificate”) is being delivered to ____________________ (“Investor”), by Company, to fulfill the requirement under the Stock Purchase Agreement, dated October 25, 2021, between Investor and Company (“Agreement”).  Terms used and not defined in this Certificate have the meanings set forth in the Agreement.

The representations and warranties of Company set forth in the Agreement are true and correct in all material respects as if made on the above date (except for any representations and warranties that are expressly made as of a particular date, in which case such representations and warranties will be true and correct as of such particular date), and no default has occurred under the Agreement, or any other agreement with Investor or any Affiliate of Investor.

Company is not, and will not be as a result of the Closing, in default of the Agreement, any other agreement with Investor or any Affiliate of Investor.

All of the conditions to the Closing required to be satisfied by Company prior to the Closing have been satisfied in their entirety.

IN WITNESS WHEREOF, the undersigned has executed this Officer’s Certificate as of the date set forth above.

 

Signed:    

Name:    

Title:    

Exhibit 5

Form of Secretary’s Certificate

 

October 25, 2021

The undersigned hereby certifies that:

The undersigned is the duly appointed Secretary of Beyond Commerce, Inc., a Nevada corporation (the “Company”).

This Secretary’s Certificate (“Certificate”) is being delivered to ____________________ (“Investor”), by Company, to fulfill the requirement under the Shares Purchase Agreement, dated March 23, 2021, between Investor and Company (“Agreement”).  Terms used and not defined in this Certificate have the meanings set forth in the Agreement.

Attached hereto as Exhibit “A” is a true, correct and complete copy of the Certificate of Incorporation of Company, as in effect on the Effective Date. 

Attached hereto as Exhibit “B” is a true, correct and complete copy of the Bylaws of Company, as in effect on the Effective Date.

Attached hereto as Exhibit “C” is a true, correct and complete copy of the resolutions of the Board of Directors of Company authorizing the Agreement, the issuance of the Purchased Shares and the Conversion Shares, the other Transaction Documents, and the transactions contemplated thereby.  Such resolutions have not been amended or rescinded and remain in full force and effect as of the date hereof.

IN WITNESS WHEREOF, the undersigned has executed this Secretary’s Certificate as of the date set forth above.

 

Signed:    

Name:    

Title:

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