Document:

SECURITIES
PURCHASE AGREEMENT

 

This
SECURITIES PURCHASE AGREEMENT (the “Agreement”), dated as of February 8, 2019, is made by and between
Verus International, Inc., a Delaware corporation (F/K/A RealBiz Media Group, Inc.), with offices located at 9841 Washingtonian
Blvd., #390, Gaithersburg, MD 20878 (the “Company”), and [                              ]
(“Buyer”).

 

RECITALS

 

A.
The Company and Buyer desire to enter into this transaction to purchase an 8% convertible promissory note (the “Note”)
of the Company and certain stock purchase warrants (“Warrants”) in reliance upon the exemption from securities
registration afforded by Section 4(a)(2) of the Securities Act of 1933, as amended (the “1933 Act”), and/or
Rule 506 of Regulation D (“Regulation D”) as promulgated by the United States Securities and Exchange Commission
(the “SEC”) under the Securities Act.

 

B.
The Company has authorized the issuance of the Note, in the form attached as Exhibit A hereto, which Note shall
be convertible into shares of Common Stock (as defined below)(the Note, as converted, collectively, together with any shares of
Common Stock issuable as interest or otherwise pursuant to such Note, the “Conversion Shares”).

 

C.
The Buyer wishes to purchase, and the Company wishes to sell at the Closing (as defined below), upon the terms and conditions
stated in this Agreement: (a) the Note in the aggregate original principal amount of $1,250,000.00, and (b) a warrant to acquire
up to 925,925,925 shares of Common Stock in the form attached hereto as Exhibit B (the “Warrant”)
(as exercised, collectively, the “Warrant Shares”).

 

D.
The Note, the Conversion Shares, the Warrant and the Warrant Shares are collectively referred to herein as the “Securities.”

 

AGREEMENT

 

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

 

1.
PURCHASE AND SALE OF NOTE AND WARRANT.

 

(a)
Note and Warrant. Subject to the satisfaction (or waiver) of the conditions set forth in Sections 6 and 7 below, the Company
shall issue and sell to Buyer, and Buyer shall purchase from the Company on the Closing Date (as defined below) the Note in the
original principal amount of $1,250,000.00 along with a Warrant to initially acquire up to 925,925,925 Warrant Shares.

 

    	 

     

    

 

(b)
Closing. The closing (the “Closing”) of the purchase of the Note and the Warrant by the Buyers shall
occur virtually. The date and time of the Closing (the “Closing Date”) shall be 10:00 a.m., New York time,
on the first (1st) Business Day on which the conditions to the Closing set forth in Sections 6 and 7 below are satisfied or waived
(or such other date as is mutually agreed to by the Company and Buyer). As used herein “Business Day” means
any day other than a Saturday, Sunday or other day on which commercial banks in New York, New York are authorized or required
by law to remain closed.

 

(c)
Purchase Price. The aggregate purchase price for the Note and the Warrant to be purchased by the Buyer (the “Purchase
Price”) shall be One Million, Two Hundred Fifty Thousand ($1,250,000.00) US Dollars which shall be net funded in accordance
with the Flow of Funds Letter (as defined below) to reflect the cash amount to be paid by Buyer (the “Cash Purchase Price”).
Buyer and the Company agree that the Note and the Warrant constitute an “investment unit” for purposes of Section
1273(c)(2) of the Internal Revenue Code of 1986, as amended (the “Code”). The Buyer and the Company mutually
agree that the allocation of each dollar of the issue price of such investment unit between the Note and the Warrant solely for
the purposes of Section 1273(c)(2) of the Code and Treasury Regulation Section 1.1273-2(h) shall be an aggregate amount of $0.00
allocated to the Warrant and the balance of the Purchase Price allocated to the Note, and neither the Buyer nor the Company shall
take any position inconsistent with such allocation in any tax return or in any judicial or administrative proceeding in respect
of taxes.

 

(d)
Form of Payment. On the Closing Date, (i) Buyer shall pay the Purchase Price (less the amounts withheld pursuant to Section
4(h)) to the Company for the Note and the Warrant to be issued and sold to Buyer at the Closing, by wire transfer of the Cash
Purchase Price by wire transfer of immediately available funds in accordance with the Flow of Funds Letter (as defined below)
and (ii) the Company shall deliver to each the Note in the aggregate original principal amount set forth above, and the Warrant
pursuant to which Buyer shall have the right to initially acquire up to such aggregate number of Warrant Shares as is set forth
above, in all cases, duly executed on behalf of the Company and registered in the name of Buyer or its designee.

 

(e)
Rank. The Note shall rank pari passu with the Permitted Indebtedness (as set forth on Schedule 3(m)(ii)).

 

(f)
Payoff of Other Notes. Effective as of the Closing Date the Company will pay off, in full, the promissory notes referenced
on Schedule 3(m)(ii) (except the Permitted Indebtedness).

 

2.
BUYER’S REPRESENTATIONS AND WARRANTIES.

 

Buyer
represents and warrants to the Company that, as of the date hereof and as of the Closing Date:

 

(a)
No Public Sale or Distribution. Buyer (i) is acquiring the Note and Warrant, (ii) upon conversion of the Note will acquire
the Conversion Shares issuable upon conversion thereof, and (iii) upon exercise of the Warrant will acquire the Warrant Shares
issuable upon exercise thereof, in each case, for its own account and not with a view towards, or for resale in connection with,
the public sale or distribution thereof in violation of applicable securities laws, except pursuant to sales registered or exempted
under the 1933 Act; provided, however, by making the representations herein, Buyer does not agree, or make any representation
or warranty to hold any of the Securities for any minimum or other specific term and reserves the right to dispose of the Securities
at any time in accordance with or pursuant to a registration statement or an available exemption from registration under the 1933
Act. Buyer does not presently have any agreement or understanding, directly or indirectly, with any Person (as defined herein)
to distribute any of the Securities in violation of applicable securities laws.

 

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(b)
Accredited Investor or Other Qualified Status. Buyer is an “Accredited Investor” as defined in Rule 501(a)
under the Securities Act.

 

(c)
Reliance on Exemptions. Buyer understands that the Securities are being offered and sold to it in reliance on specific
exemptions from the registration requirements of United States federal and state securities laws and that the Company is relying
in part upon the truth and accuracy of, and such Buyer’s compliance with, the representations, warranties, agreements, acknowledgments
and understandings of Buyer set forth herein in order to determine the availability of such exemptions and the eligibility of
Buyer to acquire the Securities.

 

(d)
Information. Buyer has been furnished with all materials relating to the business, finances and operations of the Company
and materials relating to the offer and sale of the Securities that have been requested by Buyer. Neither such inquiries nor any
other due diligence investigations conducted by Buyer or its representatives shall modify, amend or affect Buyer's right to rely
on the Company's representations and warranties contained herein. Buyer has been afforded the opportunity to ask questions of
the Company. Buyer understands that its investment in the Securities involves a high degree of risk. Buyer has sought such accounting,
legal and tax advice as it has considered necessary to make an informed investment decision with respect to its acquisition of
the Securities.

 

(e)
No Governmental Review. Buyer understands that no United States federal or state agency or any other government or governmental
agency has passed on or made any recommendation or endorsement of the Securities or the fairness or suitability of the investment
in the Securities nor have such authorities passed upon or endorsed the merits of the offering of the Securities.

 

(f)
Access to Information. Buyer acknowledges that it has had the opportunity to review the Transaction Documents (as defined
herein) (including all exhibits and schedules thereto) and has been afforded (i) the opportunity to ask such questions as it has
deemed necessary of, and to receive answers from, representatives of the Company concerning the terms and conditions of the offering
of the Securities and the merits and risks of investing in the Securities; (ii) access to information about the Company and its
financial condition, results of operations, business, properties, management and prospects sufficient to enable it to evaluate
its investment; and (iii) the opportunity to obtain such additional information that the Company possesses or can acquire without
unreasonable effort or expense that is necessary to make an informed investment decision with respect to the investment.

 

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(g)
Transfer or Resale. Buyer understands that except as provided in Section 4(i) hereof: (i) the Securities have not been
and are not being registered under the 1933 Act or any state securities laws, and may not be offered for sale, sold, assigned
or transferred unless (A) subsequently registered thereunder, (B) Buyer shall have delivered to the Company an opinion of counsel
to Buyer, in a form reasonably acceptable to the Company, to the effect that such Securities to be sold, assigned or transferred
may be sold, assigned or transferred pursuant to an exemption from such registration, or (C) Buyer provides the Company with other
reasonable assurance that such Securities can be sold, assigned or transferred pursuant to Rule 144 promulgated under the 1933
Act (or a successor rule thereto) ( “Rule 144”); (ii) any sale of the Securities made in reliance on Rule 144
may be made only in accordance with the terms of Rule 144, and further, if Rule 144 is not applicable, any resale of the Securities
under circumstances in which the seller (or the Person (as defined below) through whom the sale is made) may be deemed to be an
underwriter (as that term is defined in the 1933 Act) may require compliance with some other exemption under the 1933 Act or the
rules and regulations of the SEC promulgated thereunder; and (iii) neither the Company nor any other Person is under any obligation
to register the Securities under the 1933 Act or any state securities laws or to comply with the terms and conditions of any exemption
thereunder. Notwithstanding the foregoing, the Securities may be pledged in connection with a bona fide margin account or other
loan or financing arrangement secured by the Securities and such pledge of Securities shall not be deemed to be a transfer, sale
or assignment of the Securities hereunder, and if Buyer effects a pledge of Securities, it shall not be required to provide the
Company with any notice thereof or otherwise make any delivery to the Company pursuant to this Agreement or any other Transaction
Document (as herein), including, without limitation, this Section 2(g).

 

(h)
Validity; Enforcement. This Agreement has been duly and validly authorized, executed and delivered on behalf of Buyer and
shall constitute the legal, valid and binding obligation of Buyer enforceable against Buyer in accordance with its terms, except
as such enforceability may be limited by general principles of equity or to applicable bankruptcy, insolvency, reorganization,
moratorium, liquidation and other similar laws relating to, or affecting generally, the enforcement of applicable creditors’
rights and remedies.

 

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

 

(j)
No General Solicitation. The Buyer represents and warrants that: (i) the Buyer was contacted regarding the sale of the
Securities by the Company (or an authorized agent or representative thereof) with whom the Buyer had a prior substantial pre-existing
relationship and (ii) no Securities were offered or sold to it by means of any form of general solicitation or general advertising,
and in connection therewith, the Buyer did not (A) receive or review any advertisement, article, notice or other communication
published in a newspaper or magazine or similar media or broadcast over television or radio, whether closed circuit, or generally
available; or (B) attend any seminar meeting or industry investor conference whose attendees were invited by any general solicitation
or general advertising; or (C) observe any website or filing of the Company with the SEC in which any offering of securities by
the Company was described and as a result learned of any offering of securities by the Company.

 

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(k)
Fees. The Buyer has taken no action that would give rise to any claim by any person for brokerage commissions, finders’
fees or the like relating to this Agreement or the Transaction Documents or the transactions contemplated hereby or thereby.

 

(l)
Forward-Looking Statements and Projections. The Buyer acknowledges that any estimates or forward-looking statements or
projections furnished by the Company to the Buyer were prepared by the management of the Company in good faith, but that the attainment
of any such projections, estimates or forward-looking statements cannot be guaranteed by the Company or its management and should
not be relied upon.

 

(m)
Knowledge and Sophistication. The Buyer, 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 investing in the offering,
and has so evaluated the merits and risks of such investment. The Buyer has not authorized any person or entity to act as its
Purchaser Representative (as that term is defined in Regulation D of the General rules and regulations under the Securities Act)
in connection with the offering. The Buyer is able to bear the economic risk of an investment in the Securities and, at the present
time, is able to afford a complete loss of such investment.

 

3.
REPRESENTATIONS AND WARRANTIES OF THE COMPANY.

 

The
Company represents and warrants to Buyer, a breach of which shall constitute, after the giving of any required notice and the
passage of any opportunity to cure, an “Event of Default” under the Note, that, as of the date hereof and as of the
Closing Date:

 

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

 

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(b)
Authorization; Enforcement; Validity. The Company has the requisite corporate power and authority to enter into and perform
its obligations under this Agreement and the other Transaction Documents and to issue the Securities in accordance with the terms
hereof and thereof. The execution and delivery of this Agreement and the other Transaction Documents by the Company, and the consummation
by the Company of the transactions contemplated hereby and thereby (including, without limitation, the issuance of the Note and
the Warrant and the reservation for issuance and issuance of the Conversion Shares and the Warrant Shares) have been duly authorized
by the Company’s board of directors and (other than (i) the filing with the SEC of (A) one or more Registration Statements,
(B) a Form D, (C) the 8-K Filing (as defined below), (D) preliminary and definitive proxy materials for the solicitation of proxies
with respect to the Stockholder Approval (as defined below), (E) any other filings as may be required by any state securities
agencies (collectively, the “Required Approvals”) no further filing, consent or authorization is required by
the Company, its Subsidiaries, their respective boards of directors or their stockholders or other governing body. This Agreement
has been, and the other Transaction Documents to which it is a party will be prior to the Closing, duly executed and delivered
by the Company, and each constitutes the legal, valid and binding obligation of the Company, enforceable against the Company in
accordance with its respective terms, except as such enforceability may be limited by general principles of equity or applicable
bankruptcy, insolvency, reorganization, moratorium, liquidation or similar laws relating to, or affecting generally, the enforcement
of applicable creditors’ rights and remedies and except as rights to indemnification and to contribution may be limited
by federal or state securities law and public policy, and the remedy of specific performance and injunctive and other forms of
equitable relief may be subject to equitable defenses and to the discretion of the court before which any proceeding therefor
may be brought. “Transaction Documents” means, collectively, this Agreement, the Note, the Warrant, the Registration
Rights Agreement (as defined herein), the Irrevocable Transfer Agent Instructions (as defined below) and each of the other agreements
and instruments entered into or delivered by any of the parties hereto in connection with the transactions contemplated hereby
and thereby, as may be amended from time to time.

 

(c)
Issuance of Securities; Registration Statement. The issuance of the Note and the Warrant are duly authorized and upon issuance
in accordance with the terms of the Transaction Documents shall be validly issued and free from all preemptive or similar rights,
mortgages, defects, claims, liens, pledges, charges, taxes, rights of first refusal, encumbrances, security interests and other
encumbrances (collectively “Liens”) with respect to the issuance thereof. As of the Closing and at such time
as the Company increases the authorized number of shares of its common stock to 7,500,000,000, the Company shall have initially
reserved from its duly authorized capital stock not less than 250% of the sum of (i) the maximum number of Conversion Shares issuable
upon conversion of the Note (assuming for purposes hereof that (x) the Note is convertible at the initial Conversion Price (as
defined in the Note), (y) interest on the Note shall accrue through November 8, 2019, the Company does not elect to pay such interest
in cash and such interest will be converted in shares of Common Stock at an interest conversion price equal to the Conversion
Price (as defined in the Note) assuming a Conversion Date (as defined in the Note) as of the date hereof and (z) any such calculation
shall not take into account any limitations on the conversion of the Note set forth in the Note), and (ii) the maximum number
of Warrant Shares initially issuable upon exercise of the Warrant (without taking into account for purposes of the calculation
only any limitations on the exercise of the Warrant set forth therein). When issued upon conversion of the Note in accordance
with its terms or upon exercise of the Warrants in accordance with its terms (as the case may be) and, in the case of exercise
of the Warrants other than by means of a “Cashless Exercise” (as defined in the Warrants), upon payment of the Exercise
Price (as defined in the Warrant) or the Conversion Price (as defined in the Note), as applicable, the Warrant Shares and the
Conversion Shares, respectively, when issued, will be validly issued, fully paid and nonassessable and free from all preemptive
or similar rights or Liens with respect to the issue thereof, with the holders being entitled to all rights accorded to a holder
of Common Stock. Subject to the accuracy of the representations and warranties of the Buyer in this Agreement, the offer and issuance
by the Company of the Securities is exempt from registration under the 1933 Act. “Common Stock” means (i) the
Company’s shares of common stock, $0.001 par value per share, and (ii) any capital stock into which such Common Stock shall
have been changed or any share capital resulting from a reclassification of such Common Stock.

 

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(d)
No Conflicts. The execution, delivery and performance of the Transaction Documents by the Company and its Subsidiaries
and the consummation by the Company and its Subsidiaries of the transactions contemplated hereby and thereby (including, without
limitation, the issuance of the Note, the Warrant, the Conversion Shares and Warrant Shares and the reservation for issuance of
the Conversion Shares and the Warrant Shares) will not (i) result in a violation of the Certificate of Incorporation (as defined
below) (including, without limitation, any certificate of designation contained therein) or other organizational documents of
the Company or any of its Subsidiaries, any capital stock of the Company or any of its Subsidiaries or Bylaws (as defined below)
of the Company or any of its Subsidiaries, (ii) conflict with, breach, or constitute a default (or an event which with notice
or lapse of time or both would become a default) under, or give to others any rights of termination, amendment, acceleration or
cancellation of, any agreement, indenture or instrument to which the Company or any of its Subsidiaries is a party, or (iii) result
in a violation of any law, rule, regulation, order, judgment or decree (including foreign, federal and state securities laws and
regulations and the rules and regulations of the OTC Markets (the “Principal Market”) and including all applicable
foreign, federal and state laws, rules and regulations) applicable to the Company or any of its Subsidiaries or by which any property
or asset of the Company or any of its Subsidiaries is bound or affected except, in the case of clause (ii) or (iii) above, to
the extent such violations that could not reasonably be expected to have a Material Adverse Effect and, in the case of clause
(iii) above, assuming the truth and accuracy of, and Buyer’s compliance with, the representations, warranties, agreements,
acknowledgments and understandings of Buyer set forth in Section 2.

 

(e)
Consents. Neither the Company nor any Subsidiary is required to obtain any consent from, authorization or order of, or
make any filing or registration (other than the Required Approvals) with any Governmental Entity (as defined below) or any regulatory
or self-regulatory agency or any other Person in order for it to execute, deliver or perform any of its respective obligations
under or contemplated by the Transaction Documents, in each case, in accordance with the terms hereof or thereof. Except as set
forth on Schedule 3(e), all consents, authorizations, orders, filings and registrations which the Company or any Subsidiary
is required to obtain pursuant to the preceding sentence have been obtained or effected on or prior to the Closing Date, and neither
the Company nor any of its Subsidiaries are aware of any facts or circumstances which might prevent the Company or any of its
Subsidiaries from obtaining or effecting any of the registration, application or filings contemplated by the Transaction Documents.
The Company is not in violation of the requirements of the Principal Market and has no knowledge of any facts or circumstances
which could reasonably lead to delisting or suspension of the Common Stock in the foreseeable future. “Governmental Entity”
means any nation, state, county, city, town, village, district, or other political jurisdiction of any nature, federal, state,
local, municipal, foreign, or other government, governmental authority of any nature (including any governmental agency, branch,
department, official, or entity and any court or other tribunal), multi-national organization or body; or body exercising, or
entitled to exercise, any administrative, executive, judicial, legislative, police, regulatory, or taxing authority or power of
any nature or instrumentality of any of the foregoing, including any entity or enterprise owned or controlled by a government
or a public international organization or any of the foregoing.

 

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(f)
Acknowledgment Regarding Buyer’s Purchase of Securities. The Company acknowledges and agrees that Buyer is acting
solely in the capacity of an arm’s length purchaser with respect to the Transaction Documents and the transactions contemplated
hereby and thereby and that Buyer is not (i) an officer or director of the Company or any of its Subsidiaries, (ii) except as
set forth on Schedule 3(f), an “affiliate” (as defined in Rule 144) of the Company or any of its Subsidiaries
or (iii) except as set forth on Schedule 3(f), to its knowledge, a “beneficial owner” of more than 10% of the
shares of Common Stock (as defined for purposes of Rule 13d-3 of the Securities Exchange Act of 1934, as amended (the “1934
Act”)). The Company further acknowledges that Buyer is not acting as a financial advisor or fiduciary of the Company
or any of its Subsidiaries (or in any similar capacity) with respect to the Transaction Documents and the transactions contemplated
hereby and thereby, and any advice given by Buyer or any of its representatives or agents in connection with the Transaction Documents
and the transactions contemplated hereby and thereby is merely incidental to Buyer’s purchase of the Securities. The Company
further represents to Buyer that the Company’s decision to enter into the Transaction Documents has been based solely on
the independent evaluation by the Company and its representatives.

 

(g)
No General Solicitation; Placement Agent’s Fees. Neither the Company, nor any of its Subsidiaries or affiliates,
nor any Person acting on its or their behalf, has engaged in any form of general solicitation or general advertising (within the
meaning of Regulation D) in connection with the offer or sale of the Securities. The Company shall be responsible for the payment
of any placement agent’s fees, financial advisory fees, or brokers’ commissions (other than for Persons engaged by
any Buyer or its investment advisor) relating to or arising out of the transactions contemplated hereby in connection with the
sale of the Securities, if any. The Company shall pay, and hold Buyer harmless against, any liability, loss or expense (including,
without limitation, attorney's fees and out-of-pocket expenses) arising in connection with any such claim. Neither the Company
nor any of its Subsidiaries has engaged any placement agent or other agent in connection with the offer or sale of the Securities.

 

(h)
No Integrated Offering. Other than with respect to the Securities, none of the Company, its Subsidiaries or any of their
affiliates, nor any Person acting on their behalf has, directly or indirectly, made any offers or sales of any security or solicited
any offers to buy any security, under circumstances that would require registration of any of the Securities under the 1933 Act,
whether through integration with prior offerings or otherwise, or cause this offering of the Securities to require approval of
stockholders of the Company under any applicable stockholder approval provisions, including, without limitation, under the rules
and regulations of any exchange or automated quotation system on which any of the securities of the Company are listed or designated
for quotation. None of the Company, its Subsidiaries, their affiliates nor any Person acting on their behalf will take any action
or steps that would require registration of the issuance of the Note or Warrant under the 1933 Act or cause the offering of any
of the Securities to be integrated with other offerings of securities of the Company.

 

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

 

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

 

(k)
SEC Documents; Financial Statements. Except as set forth on Schedule 3(k), during the two (2) years prior to the
date hereof, the Company has filed all reports, schedules, forms, proxy statements, statements and other documents required to
be filed by it with the SEC pursuant to the reporting requirements of the 1934 Act (those of the foregoing filed within two (2)
years prior to the date hereof and all exhibits and appendices included therein and financial statements, notes and schedules
thereto but not the documents incorporated by reference therein being hereinafter referred to as the “SEC Documents”).
The Company has delivered or has made available to the Buyer or its representatives true, correct and complete copies of each
of the SEC Documents not available on the EDGAR system. As of their respective dates, the SEC Documents complied in all material
respects with the requirements of the 1934 Act and the rules and regulations of the SEC promulgated thereunder applicable to the
SEC Documents, and none of the SEC Documents, at the time they were filed with the SEC or now, contained any untrue statement
of a material fact or omitted to state a material fact required to be stated therein or necessary in order to make the statements
therein, in the light of the circumstances under which they were made, not misleading. As of their respective dates, the financial
statements of the Company included in the SEC Documents complied in all material respects with applicable accounting requirements
and the published rules and regulations of the SEC with respect thereto as in effect as of the time of filing. Such financial
statements have been prepared in accordance with US generally accepted accounting principles (“GAAP”), consistently
applied, during the periods involved (except (i) as may be otherwise indicated in such financial statements or the notes thereto,
or (ii) in the case of unaudited interim statements, to the extent they may exclude footnotes or may be condensed or summary statements)
and fairly present in all material respects the financial position of the Company as of the dates thereof and the results of its
operations and cash flows for the periods then ended (subject, in the case of unaudited quarterly statements, to normal year-end
audit adjustments which will not be material, either individually or in the aggregate). No other information provided by or on
behalf of the Company to Buyer which is not included in the SEC Documents (including, without limitation, information referred
to in Section 4(j) of this Agreement) contains any untrue statement of a material fact or omits to state any material fact necessary
in order to make the statements therein not misleading, in the light of the circumstance under which they are or were made. The
Company is not currently contemplating to amend or restate any of the financial statements (including, without limitation, any
note or any letter of the independent accountants of the Company with respect thereto) included in the SEC Documents (the “Financial
Statements”), nor is the Company currently aware of facts or circumstances which would require the Company to amend
or restate any of the Financial Statements, in each case, in order for any of the Financial Statements to be in compliance with
GAAP and the rules and regulations of the SEC. The Company has not been informed by its independent accountants that they recommend
that the Company amend or restate any of the Financial Statements or that there is any need for the Company to amend or restate
any of the Financial Statements.

 

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

 

    	 	 	10

     

    

 

(m)
No Undisclosed Events, Liabilities, Developments or Circumstances. No event, liability, development or circumstance has
occurred or exists, or is reasonably expected to exist or occur with respect to the Company, any of its Subsidiaries or any of
their respective businesses, properties, liabilities, prospects, operations (including results thereof) or condition (financial
or otherwise), that (i) would be required to be disclosed by the Company under applicable securities laws on a registration statement
on Form S-1 filed with the SEC relating to an issuance and sale by the Company of its Common Stock and which has not been publicly
disclosed, or (ii) except as set forth on Schedule 3(m)(ii), could have a material adverse effect on any Buyer’s
investment hereunder or a Material Adverse Effect. All outstanding debt (other than debt incurred in the ordinary course of business)
of the Company is listed on Schedule 3(m)(ii). The Company has no other debt outstanding (other than that incurred in the
ordinary course of business) that is not listed on Schedule 3(m)(ii).

 

(n)
Conduct of Business; Regulatory Permits. Neither the Company nor any of its Subsidiaries is in violation of any term of
or in default under their respective certificates of incorporation, any certificate of designation, preferences or rights of any
outstanding series of preferred stock of the Company or any of its Subsidiaries, or their respective organizational charters,
certificates of formation, or certificates of incorporation or bylaws, respectively. Neither the Company nor any of its Subsidiaries
is in violation of any judgment, decree or order or any statute, ordinance, rule or regulation applicable to the Company or any
of its Subsidiaries, except in all cases for possible violations which could not, individually or in the aggregate, have a Material
Adverse Effect. Except as set forth on Schedule 3(n), without limiting the generality of the foregoing, the Company is
not in violation of any of the rules, regulations or requirements of the Principal Market and has no knowledge of any facts or
circumstances that could reasonably lead to delisting or suspension of the Common Stock by the Principal Market in the foreseeable
future. Since December 19, 2008, (i) the Common Stock has been listed or designated for quotation on the Principal Market, (ii)
trading in the Common Stock has not been suspended by the SEC or the Principal Market and (iii) the Company has received no communication,
written or oral, from the SEC or the Principal Market regarding the suspension or delisting of the Common Stock from the Principal
Market. The Company and each of its Subsidiaries possess all certificates, authorizations and permits issued by the appropriate
regulatory authorities necessary to conduct their respective businesses, except where the failure to possess such certificates,
authorizations or permits would not have, individually or in the aggregate, a Material Adverse Effect, and neither the Company
nor any such Subsidiary has received any notice of proceedings relating to the revocation or modification of any such certificate,
authorization or permit.

 

    	 	 	11

     

    

 

(o)
Foreign Corrupt Practices. Neither the Company nor any Subsidiary or, to the knowledge of the Company, any director, officer,
agent, employee, or any other person acting for or on behalf of the foregoing (individually and collectively, a “Company
Affiliate”) have violated the U.S. Foreign Corrupt Practices Act (the “FCPA”) or any other applicable
anti-bribery or anti-corruption laws, nor has any Company Affiliate offered, paid, promised to pay, or authorized the payment
of any money, or offered, given, promised to give, or authorized the giving of anything of value, to any officer, employee or
any other person acting in an official capacity for any Governmental Entity to any political party or official thereof or to any
candidate for political office (individually and collectively, a “Government Official”) or to any person under
circumstances where such Company Affiliate knew or was aware of a high probability that all or a portion of such money or thing
of value would be offered, given or promised, directly or indirectly, to any Governmental Official, for the purpose of:

 

(i)
(A) influencing any act or decision of such Government Official in his/her official capacity, (B) inducing such Government Official
to do or omit to do any act in violation of his/her lawful duty, (C) securing any improper advantage, or (D) inducing such Government
Official to influence or affect any act or decision of any Governmental Entity; or

 

(ii)
assisting the Company or its Subsidiaries in obtaining or retaining business for or with, or directing business to, the Company
or its Subsidiaries.

 

(p)
Sarbanes-Oxley Act. The Company and each Subsidiary is in compliance with all applicable requirements of the Sarbanes-Oxley
Act of 2002, and all applicable rules and regulations promulgated by the SEC thereunder.

 

(q)
Transactions With Affiliates. Except as disclosed in the SEC Documents, none of the officers, directors or employees or
affiliates of the Company or any of its Subsidiaries is presently a party to any transaction with the Company or any of its Subsidiaries
(other than for ordinary course services as employees, officers or directors), including any contract, agreement or other arrangement
providing for the furnishing of services to or by, providing for rental of real or personal property to or from, or otherwise
requiring payments to or from any such officer, director, employee or affiliate or, to the knowledge of the Company or any of
its Subsidiaries, any corporation, partnership, trust or other Person in which any such officer, director, employee or affiliate
has a substantial interest or is an employee, officer, director, affiliate, trustee or partner.

 

    	 	 	12

     

    

 

(r)
Equity Capitalization. As of the date hereof, the authorized capital stock of the Company consists of (i) 1,500,000,000
shares of Common Stock, of which,1,499,000,0000 are issued and outstanding and 0 shares are reserved for issuance pursuant to
Convertible Securities (as defined below) (other than the Note and the Warrant), (ii) 120,000,000 shares of Series A convertible
preferred stock, of which 44,570,101 shares are issued and outstanding, (iii) 1,000,000 shares of Series B convertible preferred
stock, of which no shares are issued and outstanding and (iv) 1,000,000 shares of Series C convertible preferred stock of which
455,801 shares are outstanding. 1,000,000 shares of Common Stock are held in treasury. All of such outstanding shares are duly
authorized and have been, or upon issuance will be, validly issued and are fully paid and nonassessable. 100,000 shares of Company’s
issued and outstanding Series A convertible preferred stock and 395,801 shares of the Company’s issued and outstanding Series
C convertible preferred stock on the date hereof are as of the date hereof owned by Persons who are “affiliates” (as
defined in Rule 405 of the 1933 Act and calculated based on the assumption that only officers, directors and holders of at least
10% of the Company’s issued and outstanding securities are “affiliates” without conceding that any such Persons
are “affiliates” for purposes of federal securities laws) of the Company or any of its Subsidiaries. Except as disclosed
on Schedule 3(r), to the Company’s knowledge, no Person owns 10% or more of the Company’s issued and outstanding
shares of Common Stock (calculated based on the assumption that all Convertible Securities (as defined below), whether or not
presently exercisable or convertible, have been fully exercised or converted (as the case may be) and without taking account of
any limitations on exercise or conversion (including “blockers”) contained therein without conceding that such identified
Person is a 10% stockholder for purposes of federal securities laws). (i) Except as disclosed in Schedule 3(r)(i), none
of the Company’s or any Subsidiary’s capital stock is subject to preemptive rights or any other similar rights or
Liens suffered or permitted by the Company or any Subsidiary (other than restrictions on disposition under the 1933 Act and the
rules and regulations thereunder); (ii) except as disclosed in Schedule 3(r)(ii), there are no outstanding options, warrants,
scrip, rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities or rights convertible
into, or exercisable or exchangeable for, any capital stock of the Company or any of its Subsidiaries, or contracts, commitments,
understandings or arrangements by which the Company or any of its Subsidiaries is or may become bound to issue additional capital
stock of the Company or any of its Subsidiaries or options, warrants, scrip, rights to subscribe to, calls or commitments of any
character whatsoever relating to, or securities or rights convertible into, or exercisable or exchangeable for, any capital stock
of the Company or any of its Subsidiaries; (iii) except as disclosed in Schedule 3(r)(iii), there are no financing statements
securing obligations in any amounts filed in connection with the Company or any of its Subsidiaries; (iv) except as set forth
in the SEC Documents, there are no agreements or arrangements under which the Company or any of its Subsidiaries is obligated
to register the sale of any of their securities under the 1933 Act; (v) except as disclosed in Schedule 3(r)(iv), there
are no outstanding securities or instruments of the Company or any of its Subsidiaries which contain any redemption or similar
provisions, and there are no contracts, commitments, understandings or arrangements by which the Company or any of its Subsidiaries
is or may become bound to redeem a security of the Company or any of its Subsidiaries; (vi) except as disclosed in Schedule 3(r)(v)
there are no securities or instruments containing anti-dilution or similar provisions that will be triggered by the issuance of
the Securities; (vii) neither the Company nor any Subsidiary has any stock appreciation rights or “phantom stock”
plans or agreements or any similar plan or agreement; and (viii) neither the Company nor any of its Subsidiaries have any liabilities
or obligations required to be disclosed in the SEC Documents which are not so disclosed in the SEC Documents, other than those
incurred in the ordinary course of the Company’s or its Subsidiaries’ respective businesses and which, individually
or in the aggregate, do not or could not have a Material Adverse Effect. The Company has furnished to the Buyer true, correct
and complete copies of the Company’s Amended and Restated Certificate of Incorporation, as amended and as in effect on the
date hereof (the “Certificate of Incorporation”), and the Company’s Amended and Restated Bylaws, as amended
and as in effect on the date hereof (the “Bylaws”), and the terms of all Convertible Securities and the material
rights of the holders thereof in respect thereto. “Convertible Securities” means any capital stock or other
security of the Company or any of its Subsidiaries that is at any time and under any circumstances directly or indirectly convertible
into, exercisable or exchangeable for, or which otherwise entitles the holder thereof to acquire, any capital stock or other security
of the Company (including, without limitation, Common Stock) or any of its Subsidiaries.

 

    	 	 	13

     

    

 

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

 

    	 	 	14

     

    

 

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

 

(u)
Insurance. The Company and each of its Subsidiaries are insured by insurers of recognized financial responsibility against
such losses and risks and in such amounts as management of the Company believes to be prudent and customary in the businesses
in which the Company and its Subsidiaries are engaged. Except as set forth on Schedule 3(v), neither the Company nor any
such Subsidiary has been refused any insurance coverage sought or applied for during the last calendar year, and neither the Company
nor any such Subsidiary has any reason to believe that it will be unable 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 at a cost
that would not have a Material Adverse Effect.

 

(v)
Employee Relations. Neither the Company nor any of its Subsidiaries is a party to any collective bargaining agreement or
employs any member of a union. Nothing has come to the attention of the Company that would cause the Company to believe that the
Company's and its Subsidiaries' relations with their employees are other than good. No executive officer (as defined in Rule 501(f)
promulgated under the 1933 Act) or other key employee of the Company or any of its Subsidiaries has notified the Company or any
such Subsidiary in writing that such officer intends to leave the Company or any such Subsidiary or otherwise terminate such officer’s
employment with the Company or any such Subsidiary. No executive officer or other key employee of the Company or any of its Subsidiaries
is, or is now expected to be, in violation of any material term of any employment contract, confidentiality, disclosure or proprietary
information agreement, non-competition agreement, or any other contract or agreement or any restrictive covenant, and the continued
employment of each such executive officer or other key employee (as the case may be) does not subject the Company or any of its
Subsidiaries to any liability with respect to any of the foregoing matters. The Company and its Subsidiaries are in compliance
with all federal, state, local and foreign laws and regulations respecting labor, employment and employment practices and benefits,
terms and conditions of employment and wages and hours, except where failure to be in compliance would not, either individually
or in the aggregate, reasonably be expected to result in a Material Adverse Effect.

 

(w)
Real Property. Each of the Company and its Subsidiaries holds good title to all real property, leases in real property,
or other interests in real property owned or held by the Company or any of its Subsidiaries (the “Real Property”)
owned by the Company or any of its Subsidiaries, as applicable. The Real Property is free and clear of all Liens and is not subject
to any rights of way, building use restrictions, exceptions, variances, reservations, or limitations of any nature except for
(a) Liens for current taxes not yet due, and (b) zoning laws and other land use restrictions that do not impair the present or
anticipated use of the property subject thereto.

 

    	 	 	15

     

    

 

(x)
Personal Property. Each of the Company and its Subsidiaries, as applicable, has good title to, or a valid leasehold interest
in, the tangible personal property, equipment, improvements, fixtures, and other personal property and appurtenances that are
used by the Company or its Subsidiary in connection with the conduct of its business (the “Company Fixtures and Equipment”).
The Company Fixtures and Equipment are structurally sound, are in good operating condition and repair, are adequate for the uses
to which they are being put, are not in need of maintenance or repairs except for ordinary, routine maintenance and repairs and
are sufficient for the conduct of the Company’s and/or its Subsidiaries’ businesses, as applicable, in the manner
as conducted prior to the Closing. Except as set forth on Schedule 3(x), each of the Company and its Subsidiaries owns all of
its Company Fixtures and Equipment free and clear of all Liens except for (a) Liens for current taxes not yet due, and (b) zoning
laws and other land use restrictions that do not impair the present or anticipated use of the property subject thereto.

 

(y)
Intellectual Property Rights. The Company and its Subsidiaries own or possess proper rights or licenses to use all trademarks,
trade names, service marks, service mark registrations, service names, original works of authorship, patents, patent rights, copyrights,
inventions, licenses, approvals, governmental authorizations, trade secrets and other intellectual property rights and all applications
and registrations therefor (“Intellectual Property Rights”) necessary to conduct their respective businesses
as now conducted. Each of the patents, trademarks and copyrights owned by the Company or any of its Subsidiaries is listed on
Schedule 3(y)(i). None of the Company's Intellectual Property Rights have expired or terminated or have been abandoned
or are expected to expire or terminate or are expected to be abandoned, within three (3) years from the date of this Agreement.
Except as set forth in Schedule 3(y)(ii) the Company does not have any knowledge of any infringement by the Company or
its Subsidiaries of Intellectual Property Rights of others and there is no claim, action or proceeding being made or brought,
or to the knowledge of the Company or any of its Subsidiaries, being threatened, against the Company or any of its Subsidiaries
regarding its Intellectual Property Rights. Neither the Company nor any of its Subsidiaries is aware of any facts or circumstances
which could reasonably be expected to give rise to any of the foregoing infringements or claims, actions or proceedings. The Company
and its Subsidiaries have taken reasonable security measures to protect the secrecy, confidentiality and value of all of their
Intellectual Property Rights.

 

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

 

    	 	 	16

     

    

 

(ii)
No Hazardous Materials:

 

(A)
have been disposed of or otherwise released from any real property or leasehold interest of the Company or any of its Subsidiaries
in violation of any Environmental Laws by the Company or any of its Subsidiaries (or any of their representatives or agents);
or

 

(B)
to the Company's knowledge, are present on, over, beneath, in or upon any such leasehold interest or any portion thereof in quantities
that would constitute a violation of any Environmental Laws.

 

(iii)
Neither the Company nor any of its Subsidiaries knows of any other person who or entity which has stored, treated, recycled, disposed
of or otherwise located on any Interest any Hazardous Materials, including, without limitation, such substances as asbestos and
polychlorinated biphenyls.

 

(iv)
To the Company's knowledge, no real property or leasehold interest presently held by the Company or any Subsidiary is on any federal
or state “Superfund” list or Liability Information System (“CERCLIS”) list or any state environmental
agency list of sites under consideration for CERCLIS, nor subject to any environmental related Liens.

 

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

 

(bb)
Tax Status. The Company and each of its Subsidiaries (i) has timely made or filed all foreign, federal and state income
and all other tax returns, reports and declarations required by any jurisdiction to which it is subject, (ii) has timely paid
all taxes and other governmental assessments and charges that are material in amount, shown or determined to be due on such returns,
reports and declarations, except those being contested in good faith and (iii) has set aside on its books provision reasonably
adequate for the payment of all taxes for periods subsequent to the periods to which such returns, reports or declarations apply.
There are no unpaid taxes in any material amount claimed to be due by the taxing authority of any jurisdiction, and the officers
of the Company and its Subsidiaries know of no basis for any such claim. The Company is not operated in such a manner as to qualify
as a passive foreign investment company, as defined in Section 1297 of the Code. The net operating loss carryforwards (“NOLs”)
for United States federal income tax purposes of the consolidated group of which the Company is the common parent, if any, shall
not be adversely affected by the transactions contemplated hereby. The transactions contemplated hereby do not constitute an “ownership
change” within the meaning of Section 382 of the Code, thereby preserving the Company’s ability to utilize such NOLs.

 

    	 	 	17

     

    

 

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

 

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

 

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

 

(ff)
Acknowledgement Regarding Buyer’s Trading Activity. It is understood and acknowledged by the Company that (i) following
the public disclosure of the transactions contemplated by the Transaction Documents, in accordance with the terms thereof, the
Buyer has not been asked by the Company or any of its Subsidiaries to agree, nor has Buyer agreed with the Company or any of its
Subsidiaries, to desist from effecting any transactions in or with respect to (including, without limitation, purchasing or selling,
long and/or short) any securities of the Company, or “derivative” securities based on securities issued by the Company
or to hold any of the Securities for any specified term; (ii) Buyer and counterparties in “derivative” transactions
to which any such Buyer is a party, directly or indirectly, presently may have a “short” position in the Common Stock
which was established prior to Buyer’s knowledge of the transactions contemplated by the Transaction Documents; and (iii)
Buyer shall not be deemed to have any affiliation with or control over any arm’s length counterparty in any “derivative”
transaction. The Company further understands and acknowledges that following the public disclosure of the transactions contemplated
by the Transaction Documents pursuant to the Press Release (as defined below) Buyer may engage in hedging and/or trading activities
at various times during the period that the Securities are outstanding, including, without limitation, during the periods that
the value and/or number of the Warrant Shares or Conversion Shares, as applicable, deliverable with respect to the Securities
are being determined and such hedging and/or trading activities, if any, can reduce the value of the existing stockholders’
equity interest in the Company both at and after the time the hedging and/or trading activities are being conducted. The Company
acknowledges that such aforementioned hedging and/or trading activities do not constitute a breach of this Agreement, the Note,
the Warrant or any other Transaction Document or any of the documents executed in connection herewith or therewith.

 

    	 	 	18

     

    

 

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

 

(hh)
Intentionally Omitted.

 

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

 

(jj)
Shell Company Status. The Company is not, and has never been, an issuer identified in, or subject to, Rule 144(i).

 

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

 

(ll)
Money Laundering. The Company and its Subsidiaries are in compliance with, and have not previously violated, the USA Patriot
Act of 2001 and all other applicable U.S. and non-U.S. anti-money laundering laws and regulations, including, but not limited
to, the laws, regulations and Executive Orders and sanctions programs administered by the U.S. Office of Foreign Assets Control,
including, but not limited, to (i) Executive Order 13224 of September 23, 2001 entitled, “Blocking Property and Prohibiting
Transactions With Persons Who Commit, Threaten to Commit, or Support Terrorism” (66 Fed. Reg. 49079 (2001)); and (ii) any
regulations contained in 31 CFR, Subtitle B, Chapter V.

 

    	 	 	19

     

    

 

(mm)
Management. Except as set forth in the SEC Documents, during the past five (5) year period, no current or former officer
or director has been the subject of any of the items set forth under Item 401(f) of Regulation S-K.

 

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

 

(oo)
No Disagreements with Accountants and Lawyers. Except as
set forth on Schedule 3(oo), there are no material disagreements of any kind presently existing, or reasonably anticipated
by the Company to arise, between the Company and the accountants or between the Company and its lawyers, in either case, formerly
or presently employed or engaged by the Company and except as set forth on Schedule 3(oo), the Company is current with
respect to any fees owed to its accountants and lawyers which could affect the Company's ability to perform any of its obligations
under any of the Transaction Documents.

 

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

 

(qq)
Other Covered Persons. The Company is not aware of any Person that has been or will be paid (directly or indirectly) remuneration
for solicitation of Buyers or potential purchasers in connection with the sale of any of the Securities.

 

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

 

    	 	 	20

     

    

 

(ss)
Ranking of Note. Other than Permitted Indebtedness (as defined in the Note), no Indebtedness of the Company, at the Closing,
will be senior to, or pari passu with, the Note in right of payment, whether with respect to payment or redemptions, interest,
damages, upon liquidation or dissolution or otherwise.

 

(tt)
Disclosure. Other than as set forth in the 8-K Filing, the Company confirms that neither it nor any other Person acting
on its behalf has provided the Buyer or its agents or counsel with any information that constitutes or could reasonably be expected
to constitute material, non-public information concerning the Company or any of its Subsidiaries, other than the existence of
the transactions contemplated by this Agreement and the other Transaction Documents. The Company understands and confirms that
the Buyer will rely on the foregoing representations in effecting transactions in securities of the Company. All disclosure provided
to the Buyer regarding the Company and its Subsidiaries, their businesses and the transactions contemplated hereby, including
the schedules to this Agreement, furnished by or on behalf of the Company or any of its Subsidiaries is true and correct and does
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 the light of the circumstances under which they were made, not misleading. All of the written information furnished
after the date hereof by or on behalf of the Company or any of its Subsidiaries to Buyer pursuant to or in connection with this
Agreement and the other Transaction Documents, taken as a whole, will be true and correct in all material respects as of the date
on which such information is so provided and will 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 the light of the circumstances under which they were made, not
misleading. Other than as set forth in the 8-K Filing, no event or circumstance has occurred or information exists with respect
to the Company or any of its Subsidiaries or its or their business, properties, liabilities, prospects, operations (including
results thereof) or conditions (financial or otherwise), which, under applicable law, rule or regulation, requires public disclosure
at or before the date hereof or announcement by the Company but which has not been so publicly disclosed. The Company acknowledges
and agrees that Buyer makes no representations or warranties with respect to the transactions contemplated hereby other than those
specifically set forth in Section 2.

 

4.
COVENANTS. The Company covenants and agrees with Buyer, a breach of any of which covenants shall
constitute, without further act, an “Event of Default” under the Note, that, as of the date hereof, as of the Closing
Date and as of the dates set forth herein:

 

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

 

(i)
Except as provided in this Agreement and other than periodic reports required to be filed pursuant to the 1934 Act, the Company
shall not file with the SEC any amendment to the Registration Statement (as defined in the Registration Rights Agreement) that
relates to the Buyer, this Agreement, the Note, the Warrant or the transactions contemplated hereby or thereby or file with the
SEC any prospectus supplement that relates to the Buyer, this Agreement, the Note, the Warrant or the transactions contemplated
hereby or thereby with respect to which (a) the Buyer shall not previously have been advised, (b) the Company shall not have given
due consideration to any comments thereon received from the Buyer or its counsel, or (c) the Buyer shall reasonably object after
being so advised, unless the Company reasonably has determined that it is necessary to amend the Registration Statement or make
any supplement to the prospectus relating to the Registration Statement (“Prospectus”) to comply with the 1933 Act
or any other applicable law or regulation, in which case the Company shall promptly (but in no event later than forty-eight (48)
hours) so inform the Buyer, the Buyer shall be provided with a reasonable opportunity to review and comment upon any disclosure
relating to the Buyer within two (2) Business Days of receipt thereof and the Company shall expeditiously furnish to the Buyer
an electronic copy thereof. In addition, for so long as, in the reasonable opinion of counsel for the Buyer, the Prospectus (or
in lieu thereof, the notice referred to in Rule 173(a) under the 1933 Act) is required to be delivered in connection with any
acquisition or sale of Securities by the Buyer, the Company shall not file any Prospectus Supplement with respect to the Securities
without delivering or making available a copy of such Prospectus Supplement, together with the Prospectus, to the Buyer promptly.

 

    	 	 	21

     

    

 

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

 

(b)
Intentionally Omitted.

 

(c)
Stop Orders. The Company shall advise the Buyer promptly (but in no event later than twenty-four (24) hours) and shall
confirm such oral or written advice in writing: (i) of the Company’s receipt of notice of any request by the SEC for amendment
of or a supplement to the Registration Statement, the Prospectus, any Permitted Free Writing Prospectus or for any additional
information; (ii) of the Company’s receipt of notice of the issuance by the SEC of any stop order suspending the effectiveness
of the Registration Statement or prohibiting or suspending the use of the Prospectus or any Prospectus Supplement, or of the suspension
of qualification of the Securities for offering or sale in any jurisdiction, or the initiation or contemplated initiation of any
proceeding for such purpose; (iii) of the Company becoming aware of the happening of any event, which makes any statement of a
material fact made in the Registration Statement, the Prospectus or any Permitted Free Writing Prospectus untrue or which requires
the making of any additions to or changes to the statements then made in the Registration Statement, the Prospectus or any Permitted
Free Writing Prospectus in order to state a material fact required by the 1933 Act to be stated therein or necessary in order
to make the statements then made therein (in the case of the Prospectus, in light of the circumstances under which they were made)
not misleading, or of the necessity to amend the Registration Statement or supplement the Prospectus or any Permitted Free Writing
Prospectus to comply with the 1933 Act or any other law or (iv) if at any time following the date hereof the Registration Statement
is not effective or is not otherwise available for the issuance of the Securities or any Prospectus contained therein is not available
for use for any other reason. Thereafter, the Company shall promptly notify Buyer when the Registration Statement, the Prospectus,
any Permitted Free Writing Prospectus and/or any amendment or supplement thereto, as applicable, is effective and available for
the issuance of the Securities. If at any time the SEC shall issue any stop order suspending the effectiveness of the Registration
Statement or prohibiting or suspending the use of the Prospectus or any Prospectus Supplement, the Company shall use reasonable
best efforts to obtain the withdrawal of such order at the earliest possible time.

 

    	 	 	22

     

    

 

(d)
Blue Sky. The Company shall file a Form D with respect to the Securities as required under Regulation D. Without limiting
any other obligation of the Company under this Agreement, the Company shall timely make all filings and reports relating to the
offer and sale of the Securities required under all applicable securities laws (including, without limitation, all applicable
federal securities laws and all applicable “Blue Sky” laws), and the Company shall comply with all applicable federal,
state and local laws, statutes, rules, regulations and the like relating to the offering and sale of the Securities to the Buyer.

 

(e)
Reporting Status. Except for the Company’s annual report for the year ended October 31, 2018, until the date on which
the Buyer shall have sold, converted or exercised all of the Securities (the “Reporting Period”), the Company
shall timely file all reports required to be filed with the SEC pursuant to the 1934 Act, and the Company shall not terminate
its status as an issuer required to file reports under the 1934 Act even if the 1934 Act or the rules and regulations thereunder
would no longer require or otherwise permit such termination. The Company shall take all actions necessary to maintain its eligibility
to register the Registrable Securities (as defined in the Registration Rights Agreement) for resale by the Buyer on such form
as may be applicable.

 

(f)
Use of Proceeds. The Company will use the proceeds from the sale of the Securities solely as disclosed on Schedule 4(f)
attached hereto.

 

(g)
Listing. The Company shall promptly secure the listing or designation for quotation (as the case may be) of all of the
Underlying Securities (as defined below) upon each national securities exchange and automated quotation system, if any, upon which
the Common Stock is then listed or designated for quotation (as the case may be) (subject to official notice of issuance) and
shall maintain such listing or designation for quotation (as the case may be) of all Underlying Securities from time to time issuable
under the terms of the Transaction Documents on such national securities exchange or automated quotation system. The Company shall
maintain the Common Stock’s listing or authorization for quotation (as the case may be) on the Principal Market or another
Eligible Market (as defined in the Warrant). Neither the Company nor any of its Subsidiaries shall take any action which could
be reasonably expected to result in the delisting or suspension of the Common Stock on an Eligible Market. The Company shall pay
all fees and expenses in connection with satisfying its obligations under this Section 4(g). “Underlying Securities”
means (i) the Conversion Shares, (ii) the Warrant Shares and (iii) any capital stock of the Company issued or issuable with respect
to the Conversion Shares, the Warrant Shares, the Note or the Warrant including, without limitation, (1) as a result of any stock
split, stock dividend, recapitalization, exchange or similar event or otherwise and (2) shares of capital stock of the Company
into which the shares of Common Stock are converted or exchanged and shares of capital stock of a Successor Entity (as defined
in the Warrants) into which the shares of Common Stock are converted or exchanged, in each case, without regard to any limitations
on conversion of the Note or exercise of the Warrant.

 

    	 	 	23

     

    

 

(h)
Fees. The Company shall reimburse Buyer for its costs and expenses incurred by it or its affiliates in connection with
the structuring, documentation, negotiation and closing of the transactions contemplated by the Transaction Documents (the “Transaction
Expenses”), which shall be withheld by Buyer from its Purchase Price at the Closing in an aggregate amount not to exceed
twenty thousand dollars ($20,000). The Company shall be responsible for the payment of any transfer agent fees, the Depository
Trust Company (the “DTC”) fees or broker’s commissions (other than for Persons engaged by Buyer) relating
to or arising out of the transactions contemplated hereby. Except as otherwise set forth in the Transaction Documents, each party
to this Agreement shall bear its own expenses in connection with the sale of the Securities to the Buyer.

 

(i)
Pledge of Securities. Notwithstanding anything to the contrary contained in this Agreement, the Company acknowledges and
agrees that the Securities may be pledged by Buyer in connection with a bona fide margin agreement or other loan or financing
arrangement that is secured by the Securities. The pledge of Securities shall not be deemed to be a transfer, sale or assignment
of the Securities hereunder, and no Buyer effecting a pledge of Securities shall be required to provide the Company with any notice
thereof or otherwise make any delivery to the Company pursuant to this Agreement or any other Transaction Document, including,
without limitation, Section 2(g) hereof; provided that Buyer and its pledgee shall be required to comply with the provisions of
Section 2(g) hereof in order to effect a sale, transfer or assignment of Securities to such pledgee. The Company hereby agrees
to execute and deliver such documentation as a pledgee of the Securities may reasonably request in connection with a pledge of
the Securities to such pledgee by Buyer.

 

(j)
Disclosure of Transactions and Other Material Information.

 

(i)
Disclosure of Transaction. On or before 8:00 a.m., New York time, on the fourth (4th) Business Day after the date of this
Agreement, the Company shall file a Current Report on Form 8-K describing all the material terms of the transactions contemplated
by the Transaction Documents in the form required by the 1934 Act and attaching all the material Transaction Documents (including,
without limitation, this Agreement (and all schedules to this Agreement), the form of Warrant and the form of the Note) (including
all attachments, the “8-K Filing”). From and after the filing of the 8-K Filing, the Company shall have disclosed
all material, non-public information (if any) provided to Buyer by the Company or any of its Subsidiaries or any of their respective
officers, directors, employees or agents in connection with the transactions contemplated by the Transaction Documents.

 

    	 	 	24

     

    

 

(ii)
Limitations on Disclosure. The Company shall not, and the Company shall cause any of its Subsidiaries and each of its and
their respective officers, directors, employees and agents to provide Buyer with any material, non-public information regarding
the Company or any of its Subsidiaries from and after the date hereof without the express prior written consent of Buyer (which
may be granted or withheld in Buyer’s sole discretion). Buyer shall have the right to make a public disclosure, in the form
of a press release, public advertisement or otherwise, of such material, non-public information after obtaining written approval
by the Company, which approval shall not be unreasonably withheld. Buyer shall not have any liability to the Company, any of its
Subsidiaries, or any of its or their respective officers, directors, employees, stockholders or agents, for any such disclosure.
To the extent that the Company delivers any material, non-public information to Buyer without Buyer's consent, the Company hereby
covenants and agrees that Buyer shall not have any duty of confidentiality with respect to, or a duty not to trade on the basis
of, such material, non-public information. Subject to the foregoing, neither the Company, its Subsidiaries nor any Buyer shall
issue any press releases or any other public statements with respect to the transactions contemplated hereby; provided, however,
the Company shall be entitled, without the prior approval of Buyer, to make any press release or other public disclosure with
respect to such transactions (i) in substantial conformity with the 8-K Filing and contemporaneously therewith and (ii) as is
required by applicable law and regulations (provided that in the case of clause (i) Buyer shall be consulted by the Company in
connection with any such press release or other public disclosure prior to its release). Without the prior written consent of
the Buyer (which may be granted or withheld in Buyer’s sole discretion), the Company shall not (and shall cause each of
its Subsidiaries and affiliates to not) disclose the name of Buyer in any filing, announcement, release or otherwise, except as
such disclosure may be required by applicable law including, without limitation, in the 8-K filing and in one or more registration
statements filed pursuant hereto in order to identify the Buyer as a selling stockholder. Notwithstanding anything contained in
this Agreement to the contrary and without implication that the contrary would otherwise be true, the Company expressly acknowledges
and agrees that Buyer has not had, and shall not have (unless expressly agreed to in a written definitive and binding agreement
executed by the Company and such Buyer), any duty of confidentiality with respect to, or a duty not to trade on the basis of,
any material, non-public information regarding the Company or any of its Subsidiaries. Buyer further acknowledges that the Company
shall not be deemed to violate this Section 4(j) by disclosing the name of Buyer if it beneficially owns more than 4.99% of the
Common Stock of the Company in accordance with the disclosure made by such Buyer in any Schedule 13D or Schedule 13G filed by
such Buyer with the SEC.

 

    	 	 	25

     

    

 

(iii)
Other Confidential Information. Disclosure Failures; Disclosure Delay Payments. In addition to other remedies set forth
in this Section 4(j), and without limiting anything set forth in any other Transaction Document, at any time after the Closing
Date if the Company, any of its Subsidiaries, or any of their respective officers, directors, employees or agents, provides Buyer
with material non-public information relating to the Company or any of its Subsidiaries (each, the “Confidential Information”),
the Company shall, on or prior to the applicable Required Disclosure Date (as defined below), publicly disclose such Confidential
Information on a Current Report on Form 8-K or otherwise (each, a “Disclosure”). From and after such Disclosure,
the Company shall have disclosed all Confidential Information provided to Buyer by the Company or any of its Subsidiaries or any
of their respective officers, directors, employees or agents in connection with the transactions contemplated by the Transaction
Documents. In the event that the Company fails to effect such Disclosure on or prior to the Required Disclosure Date and Buyer
shall have possessed Confidential Information for at least ten (10) consecutive Trading Days (as defined in the Note) (each, a
“Disclosure Failure”), then, as partial relief for the damages to Buyer by reason of any such delay in, or
reduction of, its ability to buy or sell shares of Common Stock after such Required Disclosure Date (which remedy shall not be
exclusive of any other remedies available at law or in equity), the Company shall pay to Buyer an amount in cash equal to the
greater of (I) two percent (2%) of the aggregate Purchase Price and (II) the applicable Disclosure Restitution Amount (as defined
below), on each of the following dates (each, a “Disclosure Delay Payment Date”): (i) on the date of such Disclosure
Failure and (ii) on every thirty (30) day anniversary such Disclosure Failure until the earlier of (x) the date such Disclosure
Failure is cured and (y) such time as all such non-public information provided to Buyer shall cease to be Confidential Information
(as evidenced by a certificate, duly executed by an authorized officer of the Company to the foregoing effect) (such earlier date,
as applicable, a “Disclosure Cure Date”). Following the initial Disclosure Delay Payment for any particular
Disclosure Failure, without limiting the foregoing, if a Disclosure Cure Date occurs prior to any thirty (30) day anniversary
of such Disclosure Failure, then such Disclosure Delay Payment (prorated for such partial month) shall be made on the third (3rd)
Business Day after such Disclosure Cure Date. The payments to which Buyer shall be entitled pursuant to this Section 4 are referred
to herein as “Disclosure Delay Payments.” In the event the Company fails to make Disclosure Delay Payments
in a timely manner in accordance with the foregoing, such Disclosure Delay Payments shall bear interest at the rate of two percent
(2%) per month (prorated for partial months) until paid in full.

 

(iv)
For the purpose of this Agreement the following definitions shall apply:

 

(A)
“Disclosure Failure Market Price” means, as of any Disclosure Delay Payment Date, the price computed as the
quotient of (I) the sum of the five (5) highest VWAPs (as defined in the Warrants) of the Common Stock during the applicable Disclosure
Restitution Period (as defined below), divided by (II) five (5) (such period, the “Disclosure Failure Measuring Period”).
All such determinations to be appropriately adjusted for any share dividend, share split, share combination, reclassification
or similar transaction that proportionately decreases or increases the Common Stock during such Disclosure Failure Measuring Period.

 

(B)
“Disclosure Restitution Amount” means, as of any Disclosure Delay Payment Date, the product of (x) difference
of (I) the Disclosure Failure Market Price less (II) the lowest purchase price, per share of Common Stock, of any Common Stock
issued or issuable to such Buyer pursuant to this Agreement or any other Transaction Documents, multiplied by (y) ten percent
(10%) of the aggregate daily dollar trading volume (as reported on Bloomberg (as defined in the Warrants)) of the Common Stock
on the Principal Market for each Trading Day either (1) with respect to the initial Disclosure Delay Payment Date, during the
period commencing on the applicable Required Disclosure Date through and including the Trading Day immediately prior to the initial
Disclosure Delay Payment Date or (2) with respect to each other Disclosure Delay Payment Date, during the period commencing the
immediately preceding Disclosure Delay Payment Date through and including the Trading Day immediately prior to such applicable
Disclosure Delay Payment Date (such applicable period, the “Disclosure Restitution Period”).

 

    	 	 	26

     

    

 

(C)
“Required Disclosure Date” means (x) if Buyer authorized the delivery of such Confidential Information, either
(I) if the Company and Buyer have mutually agreed upon a date (as evidenced by an e-mail or other writing) of Disclosure of such
Confidential Information, such agreed upon date or (II) otherwise, the seventh (7th) calendar day after the date Buyer
first received any Confidential Information or (y) if Buyer did not authorize the delivery of such Confidential Information, the
first (1st) Business Day after Buyer’s receipt of such Confidential Information.

 

(k)
[INTENTIONALLY OMITTED]

 

(l)
Additional Issuance of Securities. During the period commencing on the date hereof and ending on the date the Note no longer
remains outstanding, the Company will not, without the prior written consent of the Buyer, issue any note which either (i) ranks
senior to the Note or the Permitted Indebtedness or (ii) would be deemed a Variable Rate Transaction (as defined herein) (other
than to the Buyer as contemplated hereby) and the Company shall not issue any other securities that would cause a breach or default
under the Note.

 

(m)
Reservation of Shares. So long as any of the Note or Warrant remain outstanding, the Company shall take all action necessary
to at all times, after the Company has increased the authorized number of shares of its common stock to 7,500,000 shares, to have
authorized, and reserved for the purpose of issuance, no less than 250% of (i) the maximum number of shares of Common Stock issuable
upon conversion of all the Note then outstanding (assuming for purposes hereof that (A) the Note is convertible at the Conversion
Price then in effect, (B) interest on the Note shall accrue through November 8, 2019, and will be converted into shares of Common
Stock at an interest conversion price equal to the Conversion Price assuming a Conversion Date as of the applicable date of determination
and (C) any such calculation shall not take into account any limitations on the conversion of the Note set forth in the Note),
and (ii) the maximum number of Warrant Shares issuable upon exercise of all the Warrant then outstanding (without taking into
account for purposes of the calculation only any limitations on the exercise of the Warrant set forth therein) (collectively,
the “Required Reserve Amount”); provided that at no time shall the number of shares of Common Stock reserved
pursuant to this Section 4(m) be reduced other than proportionally in connection with any conversion, exercise and/or redemption,
as applicable, of the Note and Warrant. If at any time the number of shares of Common Stock authorized and reserved for issuance
is not sufficient to meet the Required Reserved Amount, the Company will promptly take all corporate action necessary to authorize
and reserve a sufficient number of shares, including, without limitation, calling a special meeting of stockholders to authorize
additional shares to meet the Company's obligations pursuant to the Transaction Documents, in the case of an insufficient number
of authorized shares, obtain stockholder approval of an increase in such authorized number of shares, and voting the management
shares of the Company in favor of an increase in the authorized shares of the Company to ensure that the number of authorized
shares is sufficient to meet the Required Reserved Amount.

 

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

 

    	 	 	27

     

    

 

(o)
Variable Securities. For the longer of (A) eighteen (18) months from the date hereof, or (b) one (1) year from the date
of full conversion of the Note, the Company and each Subsidiary shall be prohibited from effecting or entering into an agreement
to effectuate any Subsequent Placement involving a Variable Rate Transaction. “Variable Rate Transaction” means
a transaction in which the Company or any Subsidiary (i) issues or sells any Convertible Securities either (A) at a conversion,
exercise or exchange rate or other price that is based upon and/or varies with the trading prices of or quotations for the shares
of Common Stock at any time after the initial issuance of such Convertible Securities, or (B) with a conversion, exercise or exchange
price that is subject to being reset at some future date after the initial issuance of such Convertible Securities or upon the
occurrence of specified or contingent events directly or indirectly related to the business of the Company or the market for the
Common Stock, other than pursuant to a customary “weighted average” anti-dilution provision or (ii) enters into any
agreement (including, without limitation, an equity line of credit or an “at-the-market” offering) whereby the Company
or any Subsidiary may sell securities at a future determined price (other than standard and customary “preemptive”
or “participation” rights). Buyer shall be entitled to obtain injunctive relief against the Company and its Subsidiaries
to preclude any such issuance, which remedy shall be in addition to any right to collect damages. “Subsequent Placement”
means the Company’s issuance, offer, sale, granting of any option or right to purchase, or otherwise disposing of (or announcing
any issuance, offer, sale, grant of any option or right to purchase or other disposition of) any equity security or any equity-linked
or related security (including, without limitation, any “equity security” (as that term is defined under Rule 405
promulgated under the 1933 Act), any Convertible Securities, any debt, any preferred stock or any purchase rights).

 

(p)
Dilutive Issuances. During the period of one hundred eighty (180) days after either a conversion, in whole or in part,
of any Note or the exercise, in whole or in part, of any of the Warrant, the Company shall not, in any manner, enter into or affect
any Dilutive Issuance (as defined in the Note) if the effect of such Dilutive Issuance is to cause the Company to be required
to issue upon conversion of all or part of the Note, or exercise of any Warrant, any shares of Common Stock in excess of that
number of shares of Common Stock which the Company may issue upon conversion of the Note and exercise of the Warrants without
breaching the Company’s obligations under the rules or regulations of the Principal Market. In the event that Buyer consents
to Company engaging in a Dilutive Issuance, then Buyer shall be entitled to the benefit of the provisions of Section 5 (b) of
the Note.

 

(q)
Passive Foreign Investment Company. The Company shall conduct its business, and shall cause its Subsidiaries to conduct
their respective businesses, in such a manner as will ensure that the Company will not be deemed to constitute a passive foreign
investment company within the meaning of Section 1297 of the Code.

 

(r)
Restriction on Redemption and Cash Dividends. So long as any amounts remain due under the Note, the Company shall not,
directly or indirectly, redeem, or declare or pay any cash dividend or distribution on, any securities of the Company without
the prior express written consent of the Buyer.

 

    	 	 	28

     

    

 

(s)
Corporate Existence. So long as Buyer is still due any funds under the Note or beneficially owns any Warrants, the Company
(a) shall not be party to any Fundamental Transaction (as defined in the Warrant) unless the Company is in compliance with the
applicable provisions governing Fundamental Transactions set forth in the Note and the Warrant; and (b) may not amend its Certificate
of Incorporation, any Certificate of Designation, its By Laws or any other constitutive document without the consent of Buyer,
such consent not to be unreasonably withheld or delayed.

 

(t)
Stock Splits. Until the Note and all interest thereon are paid in full, the Company shall not effectuate any stock combination,
reverse stock split or other similar transaction (or make any public announcement or disclosure with respect to any of the foregoing)
without the prior written consent of the Required Holders (as defined below), such consent not to be unreasonably withheld, except
as required by an Eligible Market to provide for the eligibility or continued eligibility of the Common Stock for listing or quotation
on such market.

 

(v)
Conversion and Exercise Procedures. Each of the form of Exercise Notice (as defined in the Warrant) included in the Warrant
and the form of Notice of Conversion (as defined in the Note) included in the Note set forth the totality of the procedures required
of the Buyer in order to exercise the Warrant or convert the Note. No legal opinion or other information or instructions shall
be required of the Buyer to exercise its Warrant or convert the Note. The Company shall honor exercises of the Warrant and conversions
of the Note and shall deliver the Conversion Shares and Warrant Shares in accordance with the terms, conditions and time periods
set forth in the Note and Warrant.

 

(w)
Regulation M. The Company will not take any action prohibited by Regulation M under the 1934 Act, in connection with the
distribution of the Securities contemplated hereby.

 

(x)
General Solicitation. None of the Company, any of its affiliates (as defined in Rule 501(b) under the 1933 Act) or any
person acting on behalf of the Company or such affiliate will solicit any offer to buy or offer or sell the Securities by means
of any form of general solicitation or general advertising within the meaning of Regulation D, including: (i) any advertisement,
article, notice or other communication published in any newspaper, magazine or similar medium or broadcast over television or
radio; and (ii) any seminar or meeting whose attendees have been invited by any general solicitation or general advertising.

 

(y)
Integration. None of the Company, any of its affiliates (as defined in Rule 501(b) under the 1933 Act), or any person acting
on behalf of the Company or such affiliate will sell, offer for sale, or solicit offers to buy or otherwise negotiate in respect
of any security (as defined in the 1933 Act) which will be integrated with the sale of the Securities in a manner which would
require the registration of the Securities under the 1933 Act or require stockholder approval under the rules and regulations
of the Principal Market and the Company will take all action that is appropriate or necessary to assure that its offerings of
other securities will not be integrated for purposes of the 1933 Act or the rules and regulations of the Principal Market, with
the issuance of Securities contemplated hereby.

 

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

 

    	 	 	29

     

    

 

(aa)
Intentionally Omitted.

 

(bb)
No Short Sales. So long as any amounts remain due and payable under the Note, during any five (5) Trading Day period immediately
preceding any Interest Date (as defined in the Note), Buyer and its affiliates and any entity managed or controlled by Buyer (collectively,
the “Restricted Persons” and each of the foregoing is referred to herein as a “Restricted Person”)
shall not, directly or indirectly, engage in any “Short Sales” of the Common Stock or maintain any “short”
position in Common Stock (other than any sale marked “short exempt” or any sale of shares deemed to be held “long”
hereunder). For purposes hereof, “Short Sales” shall mean “short sales” as defined in Rule 200
promulgated under Regulation SHO under the 1934 Act (other than any sale marked “short exempt” or any sale of shares
deemed to be held “long” hereunder). Notwithstanding the foregoing, no “Short Sale” or “short”
position shall be deemed to exist as a result of any failure by the Company (or its agents) to deliver Conversion Shares upon
conversion of the Note or Warrant Shares upon exercise of the Warrants, as applicable, to any Restricted Person converting such
Note or exercising such Warrant, as applicable. For purposes of determining whether a Restricted Person is deemed to have a “long”
position in the Common Stock, at any given time of determination, such Restricted Person shall be deemed to hold “long”
all Common Stock that is either (i) then owned by such Restricted Person, if any, or (ii) issuable to such Restricted Person as
Conversion Shares pursuant to the terms of the Note and/or Warrant Shares pursuant to the terms of the Warrants then held by such
Restricted Person, if any, pursuant to a valid Conversion Notice and/or valid Exercise Notice delivered to the Company on or prior
to the applicable time of determination. Notwithstanding the foregoing, nothing contained herein shall (without implication
that the contrary would otherwise be true) prohibit any Restricted Person from selling “long” (as defined under Rule
200 promulgated under Regulation SHO under the 1934 Act) the Securities or any other Common Stock then owned by such Restricted
Person.

 

5.
REGISTER; TRANSFER AGENT INSTRUCTIONS; LEGEND.

 

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

 

    	 	 	30

     

    

 

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

 

(c)
Legends. Buyer understands that the Securities have been issued (or will be issued in the case of the Conversion Shares
and the Warrant Shares) pursuant to an exemption from registration or qualification under the 1933 Act and applicable state securities
laws, and except as set forth below, the Securities shall bear any legend as required by the “blue sky” laws of any
state and a restrictive legend in substantially the following form (and a stop-transfer order may be placed against transfer of
such stock certificates):

 

[NEITHER
THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE [CONVERTIBLE]
[EXERCISABLE] HAVE BEEN][THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN] REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED
(I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED,
OR (B) AN OPINION OF COUNSEL TO THE HOLDER (IF REQUESTED BY THE COMPANY), IN A FORM REASONABLY ACCEPTABLE TO THE COMPANY, THAT
REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD OR ELIGIBLE TO BE SOLD PURSUANT TO RULE 144 UNDER SAID ACT. NOTWITHSTANDING
THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT
SECURED BY THE SECURITIES.

 

    	 	 	31

     

    

 

(d)
Removal of Legends on Securities. Certificates evidencing Securities shall not be required to contain the legend set forth
in Section 5(c) above or any other legend (i) while a registration statement (including the Registration Statement) covering
the resale of such Securities is effective under the 1933 Act, (ii) following any sale of such Securities pursuant to Rule 144
(assuming neither the transferor nor the transferee is an affiliate of the Company), (iii) if such Securities are eligible to
be sold, assigned or transferred under Rule 144 (provided that Buyer provides the Company with reasonable assurances that such
Securities are eligible for sale, assignment or transfer under Rule 144 which shall include an opinion of Buyer’s counsel),
(iv) in connection with a sale, assignment or other transfer (other than under Rule 144), provided that Buyer provides the Company
with an opinion of counsel, in a generally acceptable form, to the effect that such sale, assignment or transfer of the Securities
may be made without registration under the applicable requirements of the 1933 Act or (v) if such legend is not required under
applicable requirements of the 1933 Act (including, without limitation, controlling judicial interpretations and pronouncements
issued by the SEC).

 

(e)
Failure to Timely Deliver; Buy-In. If the Company shall fail, for any reason or for no reason, to either (I) issue and
deliver to Buyer (or its designee) a certificate representing the Securities so delivered to the Company by Buyer that is free
from all restrictive and other legends and registered on the Company’s share register (if the Transfer Agent is not participating
in the DTC Fast Automated Securities Transfer Program) or to credit the balance account of Buyer or such Buyer’s designee
with DTC for such number of Conversion Shares or Warrant Shares, as applicable, so delivered to the Company (if the Transfer Agent
is participating in the DTC Fast Automated Securities Transfer Program) or (II) if a Registration Statement covering the resale
of for such number of Conversion Shares or Warrant Shares, as applicable, so delivered to the Company (the “Unavailable
Shares”) is not available for the resale of such Unavailable Shares and the Company fails to promptly, but in no event
later than as required pursuant to the Registration Rights Agreement (x) so notify such Buyer and (y) deliver the Conversion Shares
or Warrant Shares, as applicable, electronically without any restrictive legend by crediting such aggregate number of Conversion
Shares or Warrant Shares, as applicable, to such Buyer’s or its designee’s balance account with DTC through its Deposit/Withdrawal
At Custodian system (the event described in the immediately foregoing clause (II) is hereinafter referred as a “Notice
Failure” and together with the event described in clause (I) above, a “Delivery Failure”), then,
in addition to all other remedies available to Buyer, the Company shall pay in cash to Buyer on each day after the Share Delivery
Deadline and during such Delivery Failure an amount equal to two percent (2%) of the product of (A) the sum of the number of shares
of Common Stock not issued to Buyer on or prior to the Share Delivery Deadline and to which Buyer is entitled, and (B) the average
trading price of the Common Stock in effect at any time during the period beginning on the date Buyer delivered such Conversion
Shares or Warrant Shares, as applicable, to the Company for legend removal and ending on the applicable Share Delivery Deadline.
In addition to the foregoing, if on or prior to the Share Delivery Deadline either a Delivery Failure or a Notice Failure occurs,
and if on or after such Trading Day Buyer purchases (in an open market transaction or otherwise) shares of Common Stock to deliver
in satisfaction of a sale by Buyer of shares of Common Stock issuable upon such exercise that Buyer anticipated receiving from
the Company (a “Buy-In”), then the Company shall, within three (3) Trading Days after Buyer’s request
and in Buyer’s discretion, either (i) pay cash to Buyer in an amount equal to Buyer’s total purchase price (including
brokerage commissions and other out-of-pocket expenses, if any) for the shares of Common Stock so purchased) (the “Buy-In
Price”), at which point the Company’s obligation to deliver such certificate or credit Buyer’s balance account
shall terminate and such shares shall be cancelled, or (ii) promptly honor its obligation to so deliver to Buyer a certificate
or certificates or credit Buyer’s DTC account representing such number of shares of Common Stock that would have been so
delivered if the Company timely complied with its obligations hereunder and pay cash to Buyer in an amount equal to the excess
(if any) of the Buy-In Price over the product of (A) such number of shares of Conversion Shares or Warrant Shares (as the case
may be) that the Company was required to deliver to Buyer by the Share Delivery Deadline, multiplied by (B) the lowest Closing
Sale Price (as defined in the Warrants) of the Common Stock on any Trading Day during the period commencing on the date of the
delivery by Buyer to the Company of the applicable Conversion Shares or Warrant Shares (as the case may be) and ending on the
date of such delivery and payment under this clause (ii). Nothing shall limit Buyer’s right to pursue any other remedies
available to it hereunder, at law or in equity, including, without limitation, a decree of specific performance and/or injunctive
relief with respect to the Company’s failure to timely deliver certificates representing shares of Common Stock (or to electronically
deliver such shares of Common Stock) as required pursuant to the terms hereof. Notwithstanding anything herein to the contrary,
with respect to any given Notice Failure and/or Delivery Failure, this Section 5(e) shall not apply to Buyer to the extent the
Company has already paid such amounts in full to Buyer with respect to such Notice Failure and/or Delivery Failure, as applicable,
pursuant to the analogous sections of the Note or Warrant, as applicable, held by Buyer.

 

    	 	 	32

     

    

 

6.
CONDITIONS TO THE COMPANY’S OBLIGATION TO SELL.

 

The
obligation of the Company hereunder to issue and sell the Note and the related Warrant to Buyer at the Closing is subject to the
satisfaction, at or before the Closing Date, of each of the following conditions, provided that these conditions are for the Company’s
sole benefit and may be waived by the Company at any time in its sole discretion:

 

(a)
Buyer shall have executed each of the other Transaction Documents to which it is a party and delivered the same to the Company.

 

(b)
Buyer shall have delivered to the Company the Purchase Price (less the amounts withheld pursuant to Section 4(h)) for the Note
and the related Warrant being purchased by such Buyer at the Closing by wire transfer of the Cash Purchase Price in immediately
available funds in accordance with the by wire transfer of immediately available funds in accordance with the Flow of Funds Letter.

 

(c)
The representations and warranties of such Buyer shall be true and correct in all material respects as of the date when made and
as of the Closing Date as though originally made at that time (except for representations and warranties that speak as of a specific
date, which shall be true and correct as of such specific date), and such Buyer shall have performed, satisfied and complied in
all material respects with the covenants, agreements and conditions required by this Agreement to be performed, satisfied or complied
with by such Buyer at or prior to the Closing Date.

 

    	 	 	33

     

    

 

7.
CONDITIONS TO BUYER’S OBLIGATION TO PURCHASE.

 

The
obligation of Buyer hereunder to purchase the Note and the Warrant at the Closing is subject to the satisfaction, at or before
the Closing Date, of each of the following conditions, provided that these conditions are for Buyer’s sole benefit and may
be waived by Buyer at any time in its sole discretion by providing the Company with prior written notice thereof:

 

(a)
The Company and each Subsidiary (as the case may be) shall have duly executed and delivered to Buyer each of the Transaction Documents
to which it is a party and the Company shall have duly executed and delivered to Buyer the securities being purchased by Buyer
at the Closing as follows: (i) a Note (in such original principal amount of $1,250,000.00, (ii) a Warrant to purchase up to 925,925,925
shares of the Company’s Common Stock; and (iii) the Registration Rights Agreement.

 

(b)
Buyer shall have received the opinion of Sheppard Mullin Richter & Hampton, LLP, the Company’s counsel, dated as of
the Closing Date, in the form acceptable to Buyer.

 

(c)
The Company shall have delivered to Buyer a copy of the Irrevocable Transfer Agent Instructions, in the form acceptable to Buyer,
which instructions shall have been delivered to and acknowledged in writing by the Transfer Agent.

 

(d)
The Company shall have delivered to Buyer a certificate evidencing the formation and good standing of the Company and each of
its U.S. Subsidiaries in each such entity’s jurisdiction of formation issued by the Secretary of State (or comparable office)
of such jurisdiction of formation as of a date within ten (10) days of the Closing Date.

 

(e)
The Company shall have delivered to Buyer a certificate evidencing (i) the Company’s and each Subsidiary’s qualification
as a foreign corporation and good standing issued by the Secretary of State in the states in which the Company and each of its
Subsidiaries have qualified as a foreign corporation, as of a date within ten (10) days of the Closing Date.

 

(f)
The Company shall have delivered to Buyer a certificate, in the form acceptable to Buyer, executed by the Secretary of the Company
and dated as of the Closing Date, as to (i) the resolutions consistent with Section 3(b) as adopted by the Company’s
board of directors in a form reasonably acceptable to Buyer, (ii) the Certificate of Incorporation of the Company and the organizational
documents of each U.S. Subsidiary and (iii) the Bylaws of the Company and the bylaws of each U.S. Subsidiary, each as in
effect at the Closing.

 

(g)
The representations and warranties of the Company that are qualified or limited by materiality shall be true and correct, and
the representations and warranties of the Company that are not so qualified shall be true and correct in all material respects,
in each case as of the date when made and as of the Closing Date as though originally made at that time (except for representations
and warranties that speak as of a specific date, which shall be true and correct as of such specific date) and the Company shall
have performed, satisfied and complied in all material respects with the covenants, agreements and conditions required to be performed,
satisfied or complied with by the Company at or prior to the Closing Date. Buyer shall have received a certificate, duly executed
by the Chief Executive Officer of the Company, dated as of the Closing Date, to the foregoing effect and as to such other matters
as may be reasonably requested by such Buyer in the form acceptable to Buyer.

 

    	 	 	34

     

    

 

(h)
The Company shall have delivered to Buyer a letter from the Transfer Agent certifying the number of shares of Common Stock outstanding
on the date immediately prior to the Closing Date.

 

(i)
The Common Stock (A) shall be designated for quotation or listed (as applicable) on the Principal Market and (B) shall not have
been suspended, as of the Closing Date, by the SEC or the Principal Market from trading on the Principal Market nor shall suspension
by the SEC or the Principal Market have been threatened, as of the Closing Date, either (I) in writing by the SEC or the Principal
Market or (II) by falling below the minimum maintenance requirements of the Principal Market.

 

(j)
The Company shall have obtained all governmental, regulatory or third party consents and approvals, if any, necessary for the
sale of the Securities, including without limitation, those required by the Principal Market, if any.

 

(k)
No statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered, promulgated or endorsed
by any court or Governmental Entity of competent jurisdiction that prohibits the consummation of any of the transactions contemplated
by the Transaction Documents.

 

(l)
Since the date of execution of this Agreement, no event or series of events shall have occurred that reasonably would have or
result in a Material Adverse Effect.

 

(m)
From the date hereof to the Closing Date, (i) trading in the Common Stock shall not have been suspended by the SEC or the Principal
Market (except for any suspension of trading of limited duration agreed to by the Company, which suspension shall be terminated
prior to the Closing), and, (ii) at any time prior to the Closing Date, trading in securities generally as reported by Bloomberg
L.P. shall not have been suspended or limited, or minimum prices shall not have been established on securities whose trades are
reported by such service, or on the Principal Market, nor shall a banking moratorium have been declared either by the United States
or New York State authorities nor shall there have occurred any material outbreak or escalation of hostilities or other national
or international calamity of such magnitude in its effect on, or any material adverse change in, any financial market which, in
each case, in the reasonable judgment of each Buyer, makes it impracticable or inadvisable to purchase the Securities at the Closing.

 

(n)
Each of the holders of debt set forth on Schedule 3(m)(ii) shall have executed and delivered to such Buyer, the Company
and Wilmington Trust NA, as escrow agent (“Escrow Agent”), a payoff letter with respect to their respective notes
and release, each in form and substance acceptable to Buyer and, in any event, indicating an aggregate amount due them collectively
of less than $1,250,000.

 

(o)
Buyer shall have received a letter on the letterhead of the Company, duly executed by the Chief Executive Officer of the Company,
setting forth the wire amounts of Buyer and the wire transfer instructions of the escrow account maintained by the Escrow Agent
(the “Flow of Funds Letter”).

 

    	 	 	35

     

    

 

(p)
The Company and its Subsidiaries shall have delivered to Buyer such other documents, instruments or certificates relating to the
transactions contemplated by this Agreement as such Buyer or its counsel may reasonably request.

 

(q)
As of the Closing Date, the Company’s Chief Executive Officer, Anshu Bhatnagar, shall have entered into the Personal Inventions
Assignment Agreement, annexed hereto as Exhibit C.

 

(r)
Within fifteen (15) days after the Closing Date, the Company shall have obtained “key person life insurance”, on the
life on Anshu Bhatnagar, in an amount equal to at least $1,250,000, payable to the Company. Such insurance may be obtained only
with an insurer reasonably acceptable to Buyer.

 

(s)
At or prior to the Closing Date, the Company shall have received the written consent of the Donald P. Monaco Insurance Trust to
(i) extend the due date of the Permitted Indebtedness such that the maturity date of the Permitted Indebtedness is the same Maturity
Date (as defined in the Note) as the Note; and (ii) treat the Permitted Indebtedness pari passu to the within Note.

 

(t)
All other preconditions to the Escrow Agent releasing funds held by it, pursuant to its agreement with the Company and Buyer,
dated January 17, 2019, shall have been fulfilled.

 

8.
TERMINATION.

 

In
the event that the Closing shall not have occurred with respect to Buyer within three (3) days of the date hereof, then Buyer
shall have the right to terminate its obligations under this Agreement at any time on or after the close of business on such date
without liability of Buyer to any other party; provided, however, (i) the right to terminate this Agreement under this Section 8
shall not be available to Buyer if the failure of the transactions contemplated by this Agreement to have been consummated by
such date is the result of Buyer’s breach of this Agreement and (ii) that no such termination shall affect any obligation
of the Company under this Agreement to reimburse such Buyer for the expenses described in Section 4(h) above. Nothing contained
in this Section 8 shall be deemed to release any party from any liability for any breach by such party of the terms and provisions
of this Agreement or the other Transaction Documents or to impair the right of any party to compel specific performance by any
other party of its obligations under this Agreement or the other Transaction Documents.

 

    	 	 	36

     

    

 

9.
MISCELLANEOUS.

 

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

 

(b)
Counterparts. This Agreement may be executed in two or more identical counterparts, all of which shall be considered one
and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other
party.

 

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

 

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

 

    	 	 	37

     

    

 

(e)
Entire Agreement; Amendments. This Agreement, the other Transaction Documents and the schedules and exhibits attached hereto
and thereto and the instruments referenced herein and therein supersede all other prior oral or written agreements between the
Buyer, the Company, its Subsidiaries, their affiliates and Persons acting on their behalf, including, without limitation, any
transactions by Buyer with respect to the Securities, and the other matters contained herein and therein, and this Agreement,
the other Transaction Documents, the schedules and exhibits attached hereto and thereto and the instruments referenced herein
and therein contain the entire understanding of the parties solely with respect to the matters covered herein and therein; provided,
however, nothing contained in this Agreement or any other Transaction Document shall (or shall be deemed to) (i) have any effect
on any agreements Buyer has entered into with, or any instruments Buyer has received from, the Company or any of its Subsidiaries
prior to the date hereof with respect to any prior investment made by Buyer in the Company or (ii) waive, alter, modify or amend
in any respect any obligations of the Company or any of its Subsidiaries, or any rights of or benefits to Buyer or any other Person,
in any agreement entered into prior to the date hereof between or among the Company and/or any of its Subsidiaries and Buyer,
or any instruments Buyer received from the Company and/or any of its Subsidiaries prior to the date hereof, and all such agreements
and instruments shall continue in full force and effect. Except as specifically set forth herein or therein, neither the Company
nor Buyer makes any representation, warranty, covenant or undertaking with respect to such matters. For clarification purposes,
the Recitals are part of this Agreement. No provision of this Agreement may be amended other than by an instrument in writing
signed by the Company and Buyer, and any amendment to any provision of this Agreement made in conformity with the provisions of
this Section 9(e) shall be binding on Buyer and all holders of Securities, as applicable, provided that no such amendment
shall be effective to the extent that it (A) applies to less than all of the holders of the Securities then outstanding or (B)
imposes any obligation or liability on Buyer without Buyer’s prior written consent (which may be granted or withheld in
Buyer’s sole discretion). No waiver shall be effective unless it is in writing and signed by an authorized representative
of the waiving party and any waiver of any provision of this Agreement made in conformity with the provisions of this Section 9(e)
shall be binding on Buyer and all holders of Securities, as applicable, provided that no such waiver shall be effective to the
extent that it (1) applies to less than all of the holders of the Securities then outstanding (unless a party gives a waiver as
to itself only) or (2) imposes any obligation or liability on Buyer without Buyer’s prior written consent (which may be
granted or withheld in Buyer’s sole discretion). The Company has not, directly or indirectly, made any agreements with Buyer
relating to the terms or conditions of the transactions contemplated by the Transaction Documents except as set forth in the Transaction
Documents. Without limiting the foregoing, the Company confirms that, except as set forth in this Agreement, Buyer has made no
commitment or promise nor has any other obligation to provide any financing to the Company, any Subsidiary or otherwise. As a
material inducement for Buyer to enter into this Agreement, the Company expressly acknowledges and agrees that (x) no due diligence
or other investigation or inquiry conducted by Buyer, any of its advisors or any of its representatives shall affect Buyer’s
right to rely on, or shall modify or qualify in any manner or be an exception to any of, the Company’s representations and
warranties contained in this Agreement or any other Transaction Document and (y) unless a provision of this Agreement or any other
Transaction Document is expressly preceded by the phrase “except as disclosed in the SEC Documents,” nothing contained
in any of the SEC Documents shall affect Buyer’s right to rely on, or shall modify or qualify in any manner or be an exception
to any of, the Company’s representations and warranties contained in this Agreement or any other Transaction Document.

 

    	 	 	38

     

    

 

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

 

If
to the Company:

 

Verus
International, Inc.

9841
Washingtonian Blvd., #390

Gaithersburg,
MD 20878

 

With
a copy (for informational purposes only) to:

 

Sheppard
Mullin Richter & Hampton LLP

30
Rockefeller Plaza, 39th Floor

New
York, NY 10112

Attn:
Andrea Cataneo, Esq.

 

If
to the Transfer Agent:

 

American
Stock Transfer & Trust Company, LLC

6201
15th Avenue

Brooklyn,
NY 11219

Attention: Janice Santiago

Phone Number: (718) 921-8300

 

If
to Buyer:

 

with
a copy (for informational purposes only) to:

 

    	 	 	39

     

    

 

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

 

(g)
Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their respective
successors and assigns, including any purchasers of any of the Note and Warrant. The Company shall not assign this Agreement or
any rights or obligations hereunder without the prior written consent of Buyer. Buyer may assign some or all of its rights hereunder
in connection with any transfer of any of its Securities without the consent of the Company, in which event such assignee shall
be deemed to be a Buyer hereunder with respect to such assigned rights.

 

(h)
No Third Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective permitted
successors and assigns, and is not for the benefit of, nor may any provision hereof be enforced by, any other Person, other than
the Indemnitees referred to in Section 9(k).

 

(i)
Survival. The representations, warranties, agreements and covenants shall survive the Closing for a period of two (2) years.

 

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

 

    	 	 	40

     

    

 

(k)
Indemnification.

 

(i)
In consideration of Buyer’s execution and delivery of the Transaction Documents and acquiring the Securities thereunder
and in addition to all of the Company’s other obligations under the Transaction Documents, the Company shall defend, protect,
indemnify and hold harmless Buyer and each holder of any Securities and all of their stockholders, partners, members, managers,
officers, directors, employees and direct or indirect investors and any of the foregoing Persons’ agents or other representatives
(including, without limitation, those retained in connection with the transactions contemplated by this Agreement) (collectively,
the “Indemnitees”) from and against any and all actions, causes of action, suits, claims, losses, costs, penalties,
fees, liabilities and damages, and expenses in connection therewith (irrespective of whether any such Indemnitee is a party to
the action for which indemnification hereunder is sought), and including reasonable attorneys’ fees and disbursements (the
“Indemnified Liabilities”), incurred by any Indemnitee as a result of, or arising out of, or relating to (a)
any misrepresentation or breach of any representation or warranty made by the Company or any Subsidiary in any of the Transaction
Documents, (b) any breach of any covenant, agreement or obligation of the Company or any Subsidiary contained in any of the Transaction
Documents, (c) any untrue statement or alleged untrue statement of a material fact contained, or incorporated by reference, in
the Registration Statement of the Company or any amendment thereto or any omission or alleged omission to state therein, or in
any document incorporated by reference therein, a material fact required to be stated therein or necessary to make the statements
therein not misleading (other than an untrue statement or alleged untrue statement in, or omission or alleged omission from, the
Prospectus or any amendment or supplement thereto that is based on or contained in any information relating to Buyer provided
to the Company for use in the Prospectus), (d) any violation of United States federal or state securities laws or the rules and
regulations of the Principal Market or any Eligible Market (as defined in the Warrant) in connection with the transactions contemplated
by this Agreement, the Warrant, and the Note by the Company or any of its Subsidiaries, affiliates, officers, directors or employees,
(e) any cause of action, suit or claim brought or made against such Indemnitee by a third party (including for these purposes
a derivative action brought on behalf of the Company or any Subsidiary) or (f) arising out of or resulting from (i) the execution,
delivery, performance or enforcement of any of the Transaction Documents, (ii) any transaction financed or to be financed in whole
or in part, directly or indirectly, with the proceeds of the issuance of the Securities, (iii) any disclosure properly made by
Buyer pursuant to Section 4(j), or (iv) the status of such Buyer or holder of the Securities as an investor in the Company pursuant
to the transactions contemplated by the Transaction Documents or as a party to this Agreement (including, without limitation,
as a party in interest or otherwise in any action or proceeding for injunctive or other equitable relief). To the extent that
the foregoing undertaking by the Company may be unenforceable for any reason, the Company shall make the maximum contribution
to the payment and satisfaction of each of the Indemnified Liabilities which is permissible under applicable law.

 

    	 	 	41

     

    

 

(ii)
Promptly after receipt by an Indemnitee under this Section 9(k) of notice of the commencement of any action or proceeding (including
any governmental action or proceeding) involving an Indemnified Liability, such Indemnitee shall, if a claim in respect thereof
is to be made against the Company under this Section 9(k), deliver to the Company a written notice of the commencement thereof,
and the Company shall have the right to participate in, and, to the extent the Company so desires, to assume control of the defense
thereof with counsel mutually satisfactory to the Company and the Indemnitee; provided, however, that an Indemnitee shall have
the right to retain its own counsel with the fees and expenses of such counsel to be paid by the Company if: (i) the Company has
agreed in writing to pay such fees and expenses; (ii) the Company shall have failed promptly to assume the defense of such Indemnified
Liability and to employ counsel reasonably satisfactory to such Indemnitee in any such Indemnified Liability; or (iii) the named
parties to any such Indemnified Liability (including any impleaded parties) include both such Indemnitee and the Company, and
such Indemnitee shall have been advised by counsel that a conflict of interest is likely to exist if the same counsel were to
represent such Indemnitee and the Company (in which case, if such Indemnitee notifies the Company in writing that it elects to
employ separate counsel at the expense of the Company, then the Company shall not have the right to assume the defense thereof
and such counsel shall be at the expense of the Company), provided further, that in the case of clause (iii) above the
Company shall not be responsible for the reasonable fees and expenses of more than one (1) separate legal counsel for such Indemnitee.
The Indemnitee shall reasonably cooperate with the Company in connection with any negotiation or defense of any such action or
Indemnified Liability by the Company and shall furnish to the Company all information reasonably available to the Indemnitee which
relates to such action or Indemnified Liability. The Company shall keep the Indemnitee reasonably apprised at all times as to
the status of the defense or any settlement negotiations with respect thereto. The Company shall not be liable for any settlement
of any action, claim or proceeding effected without its prior written consent; provided, however, that the Company shall not unreasonably
withhold, delay or condition its consent. The Company shall not, without the prior written consent of the Indemnitee, consent
to entry of any judgment or enter into any settlement or other compromise which does not include as an unconditional term thereof
the giving by the claimant or plaintiff to such Indemnitee of a release from all liability in respect to such Indemnified Liability
or litigation, and such settlement shall not include any admission as to fault on the part of the Indemnitee. Following indemnification
as provided for hereunder, the Company shall be subrogated to all rights of the Indemnitee with respect to all third parties,
firms or corporations relating to the matter for which indemnification has been made. The failure to deliver written notice to
the Company within a reasonable time of the commencement of any such action shall not relieve the Company of any liability to
the Indemnitee under this Section 9(k), except to the extent that the Company is materially and adversely prejudiced in its ability
to defend such action.

 

    	 	 	42

     

    

 

(iii)
The indemnification required by this Section 9(k) shall be made by monthly payments of the amount thereof during the course of
the investigation or defense, as and when bills are received or Indemnified Liabilities are incurred.

 

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

 

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

 

    	 	 	43

     

    

 

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

 

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

 

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

 

[signature
pages follow]

 

    	 	 	44

     

    

 

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

 

	 	COMPANY:

	 	 	 
	 	VERUS
                                         INTERNATIONAL, INC.

	 	 	 
	 	By:	 
	 	Name:	Anshu
    Bhatnagar
	 	Title:	Chief
    Executive Officer

 

	BUYER:

	 
	 	 	 
	By:	 	 
	Name:	 	 
	Title:	 	 

 

	PERFORMANCE
                                         GUARANTEED:

	 
	 	 	 
	VERUS
    FOODS, INC., a Nevada corporation	 
	 	 	 
	By:	 	 
	Name:	Anshu
    Bhatnagar	 
	Title:	Chief
    Executive Officer	 
	 	 	 
	VERUS
    FOODS MENA LIMITED, a Dubai-formed JAFZA offshore company	 
	 	 	 
	By:	 	 
	Name:	Anshu
    Bhatnagar	 
	Title:	Chief
    Executive Officer	 
	 	 	 
	VERUS
    FOODS (SINGAPORE) PTE LTD., a Singapore company	 
	 	 	 
	By:	 	 
	Name:	Anshu
    Bhatnagar	 
	Title:	Chief
    Executive Officer	 
	 	 	 
	VERUS
    MIDDLE EAST GENERAL TRADING, LLC, a Dubai limited liability company	 
	 
	By:	 	 
	Name:	Anshu
    Bhatnagar	 
	Title:	Chief
    Executive Officer	 

 

    	 	 	45REGISTRATION
RIGHTS AGREEMENT

 

This
REGISTRATION RIGHTS AGREEMENT (this “Agreement”), dated as of February 8, 2019, is by and between Verus
International, Inc., a Delaware corporation with offices located at 9841 Washingtonian Boulevard, #390, Gaithersburg, MD 20878
(the “Company”) and [                       ] (the “Buyer”).

 

RECITALS

 

A.
In connection with the Securities Purchase Agreement by and between the parties hereto, dated as of February 8, 2019 (the “Securities
Purchase Agreement”), the Company has agreed, upon the terms and subject to the conditions of the Securities Purchase
Agreement, to issue and sell to Buyer (i) the Note which will be convertible into Conversion Shares in accordance with the terms
of the Note and (ii) the Warrant which will be exercisable to purchase Warrant Shares in accordance with the terms of the Warrant.

 

B.
To induce the Buyer to consummate the transactions contemplated by the Securities Purchase Agreement, the Company has agreed to
provide certain registration rights under the Securities Act of 1933, as amended, and the rules and regulations thereunder, or
any similar successor statute (collectively, the “1933 Act”), and applicable state securities laws.

 

AGREEMENT

 

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

 

1.
Definitions.

 

Capitalized
terms used herein and not otherwise defined herein shall have the respective meanings set forth in the Securities Purchase Agreement.
As used in this Agreement, the following terms shall have the following meanings:

 

(a)
“Business Day” means any day other than Saturday, Sunday or any other day on which commercial banks in New
York, New York are authorized or required by law to remain closed.

 

(b)
“Common Stock” means shares of common stock of the Company, par value $0.001 per share.

 

(b)
“Closing Date” shall have the meaning set forth in the Securities Purchase Agreement.

 

(c)
“Effective Date” means the date that the applicable Registration Statement has been declared effective by the
SEC.

 

(d)
“Effectiveness Deadline” means (i) with respect to the initial Registration Statement required to be filed
pursuant to Section 2(a), the earlier of the (A) 120th calendar day after the Closing Date (or the 140th
calendar day after the Closing Date in the event that such Registration Statement is subject to a limited or full review by the
SEC) and (B) 5th Business Day after the date the Company is notified (orally or in writing, whichever is earlier) by
the SEC that such Registration Statement will not be reviewed or will not be subject to further review and (ii) with respect to
any additional Registration Statements that may be required to be filed by the Company pursuant to this Agreement, the earlier
of the (A) 120th calendar day following the date on which the Company was required to file such additional Registration
Statement (or the 140th calendar following the date on which the Company was required to file such additional Registration
Statement in the event that such Registration Statement is subject to a limited or full review by the SEC) and (B) 5th
Business Day after the date the Company is notified (orally or in writing, whichever is earlier) by the SEC that such Registration
Statement will not be reviewed or will not be subject to further review.

 

    	 

    	 

    

 

(e)
“Filing Deadline” means (i) with respect to the initial Registration Statement required to be filed pursuant
to Section 2(a), the 60th calendar day after the Closing Date and (ii) with respect to any additional Registration
Statements that may be required to be filed by the Company pursuant to this Agreement, the date on which the Company was required
to file such additional Registration Statement pursuant to the terms of this Agreement.

 

(f)
“Investor” means Buyer or any transferee or assignee of any Registrable Securities, Note or Warrant, as applicable,
to whom Buyer assigns all or any portion of its rights under this Agreement and who agrees to become bound by the provisions of
this Agreement in accordance with Section 9 and any transferee or assignee thereof to whom a transferee or assignee of any Registrable
Securities, Note or Warrant, as applicable, assigns its rights under this Agreement and who agrees to become bound by the provisions
of this Agreement in accordance with Section 9.

 

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

 

(h)
“register,” “registered,” and “registration” refer to a registration
effected by preparing and filing one or more Registration Statements in compliance with the 1933 Act and pursuant to Rule 415
and the declaration of effectiveness of such Registration Statement(s) by the SEC.

 

(i)
“Registrable Securities” means (i) the Conversion Shares, (ii) the Warrant Shares and (iii) any capital stock
of the Company issued or issuable with respect to the Conversion Shares, the Warrant Shares, the Note or the Warrant, including,
without limitation, (1) as a result of any stock split, stock dividend, recapitalization, exchange or similar event or otherwise
and (2) shares of capital stock of the Company into which the shares of Common Stock are converted or exchanged and shares of
capital stock of a Successor Entity (as defined in the Warrant) into which the shares of Common Stock are converted or exchanged,
in each case, without regard to any limitations on conversion of the Note or exercise of the Warrant.

 

(j)
“Registration Statement” means a registration statement or registration statements of the Company filed under
the 1933 Act covering Registrable Securities.

 

    	 	2 

    	 

    

 

(k)
“Required Holders” means, as of any given time, the holders of at least a majority in interest of the Registrable
Securities as of such time (excluding any Registrable Securities held by the Company or any of its Subsidiaries as of such time).

 

(l)
“Required Registration Amount” means, as of any given date, 250% of the sum of (i) the maximum number of Conversion
Shares then issuable upon conversion of the Note (assuming for purposes hereof that (x) the Note is convertible at the Conversion
Price (as defined in the Note) in effect as of such given date, (y) interest on the Note shall accrue through November 8, 2019
and will be converted into shares of Common Stock at the then-applicable Conversion Price (as defined in the Note) and (z) any
such calculation shall not take into account any limitations on the conversion of the Note set forth in the Note) and (ii) the
maximum number of Warrant Shares issuable upon exercise of the Warrant as of such given date (without taking into account any
limitations on the exercise of the Warrant set forth therein solely for the purpose of such calculation), all subject to adjustment
as provided in Section 2(d) and/or Section 2(f).

 

(m)
“Rule 144” means Rule 144 promulgated by the SEC under the 1933 Act, as such rule may be amended from time
to time, or any other similar or successor rule or regulation of the SEC that may at any time permit the Investor to sell securities
of the Company to the public without registration.

 

(n)
“Rule 415” means Rule 415 promulgated by the SEC under the 1933 Act, as such rule may be amended from time
to time, or any other similar or successor rule or regulation of the SEC providing for offering securities on a continuous or
delayed basis.

 

(o)
“SEC” means the United States Securities and Exchange Commission or any successor thereto.

 

2.
Registration.

 

(a)
Mandatory Registration. The Company shall prepare and, as soon as practicable, but in no event later than the Filing Deadline,
file with the SEC an initial Registration Statement on Form S-1 (or Form S-3, if available for use at the time of filing) covering
the resale of all of the Registrable Securities, provided that such initial Registration Statement shall register for resale at
least the number of shares of Common Stock equal to the Required Registration Amount as of the date such Registration Statement
is initially filed with the SEC. Such initial Registration Statement, and each other Registration Statement required to be filed
pursuant to the terms of this Agreement, shall contain (except if otherwise directed by the Required Holders) the “Selling
Stockholders” and “Plan of Distribution” sections in substantially the form attached hereto as Exhibit
A. The Company shall use its best efforts to have such initial Registration Statement, and each other Registration Statement
required to be filed pursuant to the terms of this Agreement, declared effective by the SEC as soon as practicable, but in no
event later than the applicable Effectiveness Deadline for such Registration Statement.

 

(b)
Legal Counsel. Subject to Section 5 hereof, NI Jacobs & Associates, counsel to the Holder (“Legal Counsel”)
shall review and oversee any registration, solely on behalf of the Holder, pursuant to this Section 2.

 

(c)
Intentionally Omitted.

 

    	 	3 

    	 

    

 

(d)
Sufficient Number of Shares Registered. In the event the number of shares available under any Registration Statement is
insufficient to cover all of the Registrable Securities required to be covered by such Registration Statement or an Investor’s
allocated portion of the Registrable Securities pursuant to Section 2(h), the Company shall amend such Registration Statement
(if permissible), or file with the SEC a new Registration Statement (on the short form available therefor, if applicable), or
both, so as to cover at least the Required Registration Amount as of the Trading Day immediately preceding the date of the filing
of such amendment or new Registration Statement, in each case, as soon as practicable, but in any event not later than twenty
(20) days after the necessity therefor arises (but taking account of any SEC Staff position with respect to the date on which
the SEC Staff will permit such amendment to the Registration Statement and/or such new Registration Statement (as the case may
be) to be filed with the SEC). The Company shall use its best efforts to cause such amendment to such Registration Statement and/or
such new Registration Statement (as the case may be) to become effective as soon as practicable following the filing thereof with
the SEC, but in no event later than the applicable Effectiveness Deadline for such Registration Statement. For purposes of the
foregoing provision, the number of shares available under a Registration Statement shall be deemed “insufficient to cover
all of the Registrable Securities” if at any time the number of shares of Common Stock available for resale under the applicable
Registration Statement is less than the product determined by multiplying (i) the Required Registration Amount as of such time
by (ii) 0.90. The calculation set forth in the foregoing sentence shall be made without regard to any limitations on (i) conversion
of the Note (and such calculation shall assume that the Note is then fully convertible into shares of Common Stock at the then-prevailing
applicable Conversion Price (as defined in the Note)) and (ii) exercise of the Warrant (and such calculation shall assume that
the Warrant is then fully exercisable for shares of Common Stock at the then-prevailing applicable Exercise Price (as defined
in the Warrant)).

 

(e)
Effect of Failure to File and Obtain and Maintain Effectiveness of any Registration Statement. If (i) a Registration Statement
covering the resale of all of the Registrable Securities required to be covered thereby (after giving effect to any reduction
pursuant to Section 2(f)) and required to be filed by the Company pursuant to this Agreement is (A) not filed with the SEC on
or before the Filing Deadline for such Registration Statement (a “Filing Failure”) (it being understood that
if the Company files a Registration Statement without affording Legal Counsel the opportunity to review and comment on the same
as required by Section 3(c) hereof, the Company shall be deemed to not have satisfied this clause (i)(A) and such event shall
be deemed to be a Filing Failure) or (B) not declared effective by the SEC on or before the Effectiveness Deadline for such Registration
Statement (an “Effectiveness Failure”) (it being understood that if on the Business Day immediately following
the Effective Date for such Registration Statement the Company shall not have filed a “final” prospectus for such
Registration Statement with the SEC under Rule 424(b) in accordance with Section 3(b) if such a prospectus is required by such
rule, the Company shall be deemed to not have satisfied this clause (i)(B) and such event shall be deemed to be an Effectiveness
Failure), (ii) other than during an Allowable Grace Period (as defined below), on any day after the Effective Date of a Registration
Statement sales of all of the Registrable Securities required to be included on such Registration Statement (disregarding any
reduction pursuant to Section 2(f)) cannot be made pursuant to such Registration Statement (including, without limitation, because
of a failure to keep such Registration Statement effective, a failure to disclose such information as is necessary for sales to
be made pursuant to such Registration Statement, a suspension or delisting of (or a failure to timely list) the shares of Common
Stock on an Eligible Market (as defined in the Warrant), or a failure to register a sufficient number of shares of Common Stock
or by reason of a stop order) or the prospectus contained therein is not available for use for any reason (a “Maintenance
Failure”), or (iii) if a Registration Statement is not effective for any reason or the prospectus contained therein
is not available for use for any reason, and either (x) the Company fails for any reason to satisfy the requirements of Rule 144,
including, without limitation, the failure to satisfy the current public information requirement under Rule 144 or (y) the Company
has ever been a “shell company” issuer described in Rule 144 or becomes such an issuer in the future, and the Company
shall fail to satisfy any public information condition set forth in Rule 144 (a “Current Public Information Failure”)
(except for the Company’s failure to file its Annual Report on Form 10-K for the fiscal year ended October 31, 2018) as
a result of which Investor is unable to sell Registrable Securities without restriction under Rule 144 (including, without limitation,
volume restrictions), then, as partial relief for the damages to any holder by reason of any such delay in, or reduction of, its
ability to sell the underlying shares of Common Stock (which remedy shall not be exclusive of any other remedies available at
law or in equity), the Company shall pay to each holder of Registrable Securities relating to such Registration Statement an amount
in cash equal to two percent (2%) of the product of (x) the number of Registrable Securities of such Investor required hereunder
to be included in such Registration Statement and (y) the Closing Sale Price (as defined in the Warrant) as of Trading Day immediately
prior to the date a Registration Delay Payment (as defined below) is due hereunder (1) on the date of such Filing Failure, Effectiveness
Failure, Maintenance Failure or Current Public Information Failure, as applicable, and (2) on every thirty (30) day anniversary
of (I) a Filing Failure until such Filing Failure is cured; (II) an Effectiveness Failure until such Effectiveness Failure is
cured; (III) a Maintenance Failure until such Maintenance Failure is cured; and (IV) a Current Public Information Failure until
the earlier of (i) the date such Current Public Information Failure is cured and (ii) such time that such public information is
no longer required pursuant to Rule 144 (in each case, pro rated for periods totaling less than thirty (30) days). The payments
to which a holder of Registrable Securities shall be entitled pursuant to this Section 2(e) are referred to herein as “Registration
Delay Payments”, it being understood that no Registration Delay Payments shall be payable to an Investor with respect
to a Filing Failure, an Effectiveness Failure, a Maintenance Failure or a Current Public Information Failure to the exent (x)
such Registration Delay Payments relate to such Registrable Securities such Investor elects not to include in such Registration
Statement or (y) such Investor fails to timely perform its obligations hereunder. Following the initial Registration Delay Payment
for any particular event or failure (which shall be paid on the date of such event or failure, as set forth above), without limiting
the foregoing, if an event or failure giving rise to the Registration Delay Payments is cured prior to any thirty (30) day anniversary
of such event or failure, then such Registration Delay Payment shall be made on the third (3rd) Business Day after
such cure. In the event the Company fails to make Registration Delay Payments in a timely manner in accordance with the foregoing,
such Registration Delay Payments shall bear interest at the rate of two percent (2%) per month (prorated for partial months) until
paid in full. Notwithstanding the foregoing, no Registration Delay Payments shall be owed to an Investor (other than with respect
to a Maintenance Failure resulting from a suspension or delisting of (or a failure to timely list) the shares of Common Stock
on the Principal Market) with respect to any period during which all of such Investor’s Registrable Securities may be sold
by such Investor without restriction under Rule 144 (including, without limitation, volume restrictions) and without the need
for current public information required by Rule 144, if applicable).

    	 	4 

    	 

    

 

(f)
Offering. Notwithstanding anything to the contrary contained in this Agreement, in the event the staff of the SEC (the
“Staff”) or the SEC seeks to characterize any offering pursuant to a Registration Statement filed pursuant
to this Agreement as constituting an offering of securities by, or on behalf of, the Company, or in any other manner, such that
the Staff or the SEC do not permit such Registration Statement to become effective and used for resales in a manner that does
not constitute such an offering and that permits the continuous resale at the market by the Investor participating therein (or
as otherwise may be acceptable to each Investor) without being named therein as an “underwriter,” then the Company
shall reduce the number of shares to be included in such Registration Statement by the Investor until such time as the Staff and
the SEC shall so permit such Registration Statement to become effective as aforesaid. In making such reduction, the Company shall
reduce the number of shares to be included by Investor unless the inclusion of shares by a particular Investor or a particular
set of Investors are resulting in the Staff or the SEC’s “by or on behalf of the Company” offering position,
in which event the shares held by such Investor or set of Investors shall be the only shares subject to reduction (and if by a
set of Investors on a pro rata basis by such Investors or on such other basis as would result in the exclusion of the least number
of shares by all such Investors); provided, that, with respect to such pro rata portion allocated to any Investor, such Investor
may elect the allocation of such pro rata portion among the Registrable Securities of such Investor. In addition, in the event
that the Staff or the SEC requires any Investor seeking to sell securities under a Registration Statement filed pursuant to this
Agreement to be specifically identified as an “underwriter” in order to permit such Registration Statement to become
effective, and such Investor does not consent to being so named as an underwriter in such Registration Statement, then, in each
such case, the Company shall reduce the total number of Registrable Securities to be registered on behalf of such Investor, until
such time as the Staff or the SEC does not require such identification or until such Investor accepts such identification and
the manner thereof. Any reduction pursuant to this paragraph will first reduce all Registrable Securities other than those issued
pursuant to the Securities Purchase Agreement. In the event of any reduction in Registrable Securities pursuant to this paragraph,
an affected Investor shall have the right to require, upon delivery of a written request to the Company signed by such Investor,
the Company to file a registration statement within thirty (30) days of such request (subject to any restrictions imposed by Rule
415 or required by the Staff or the SEC) for resale by such Investor in a manner acceptable to such Investor, and the Company
shall, following such request, cause to be and keep effective such registration statement in the same manner as otherwise contemplated
in this Agreement for registration statements hereunder, in each case until such time as: (i) all Registrable Securities held
by such Investor have been registered and sold pursuant to an effective Registration Statement in a manner acceptable to such
Investor or (ii) all Registrable Securities may be resold by such Investor without restriction (including, without limitation,
volume limitations) pursuant to Rule 144 (taking account of any Staff position with respect to “affiliate” status)
and without the need for current public information required by Rule 144, if applicable) or (iii) such Investor agrees to be named
as an underwriter in any such Registration Statement in a manner acceptable to such Investor as to all Registrable Securities
held by such Investor and that have not theretofore been included in a Registration Statement under this Agreement (it being understood
that the special demand right under this sentence may be exercised by an Investor multiple times and with respect to limited amounts
of Registrable Securities in order to permit the resale thereof by such Investor as contemplated above).

 

    	 	5 

    	 

    

 

(g)
Piggyback Registrations. Without limiting any obligation of the Company hereunder or under the Securities Purchase Agreement,
if there is not an effective Registration Statement covering all of the Registrable Securities or the prospectus contained therein
is not available for use and the Company shall determine to prepare and file with the SEC a registration statement relating to
an offering for its own account or the account of others under the 1933 Act of any of its equity securities (other than on Form
S-4 or Form S-8 (each as promulgated under the 1933 Act) or their then equivalents relating to equity securities to be issued
solely in connection with a business combination subject to Rule 145 under the 1933 Act or equity securities issuable in connection
with the Company’s stock option or other employee benefit plans), then the Company shall deliver to each Investor a written
notice of such determination and, if within fifteen (15) days after the date of the delivery of such notice, any such Investor
shall so request in writing, the Company shall include in such registration statement all or any part of such Registrable Securities
such Investor requests to be registered; provided, however, the Company shall not be required to register any Registrable Securities
pursuant to this Section 2(g) that are eligible for resale pursuant to Rule 144 without restriction (including, without limitation,
volume restrictions) and without the need for current public information required by Rule 144, if applicable) or that are the
subject of a then-effective Registration Statement.

 

(h)
Allocation of Registrable Securities. In the event that Investor assigns to third parties, in whole or in part, its rights
under this Agreement, then the initial number of Registrable Securities included in any Registration Statement and any increase
in the number of Registrable Securities included therein shall be allocated pro rata among all of the Investors based on the number
of Registrable Securities held by each Investor at the time such Registration Statement covering such initial number of Registrable
Securities or increase thereof is declared effective by the SEC. In the event that an Investor sells or otherwise transfers any
of such Investor’s Registrable Securities, each transferee or assignee (as the case may be) that becomes an Investor shall
be allocated a pro rata portion of the then-remaining number of Registrable Securities included in such Registration Statement
for such transferor or assignee (as the case may be). Any shares of Common Stock included in a Registration Statement and which
remain allocated to any Person which ceases to hold any Registrable Securities covered by such Registration Statement shall be
allocated to the remaining Investors, pro rata based on the number of Registrable Securities then held by such Investors which
are covered by such Registration Statement.

 

(i)
No Inclusion of Other Securities. Except for an investor which will invest up to $250,000 simaltenously with the consummation
of the offering contemplated by the Securities Purchase Agreement and receive registration rights in connection therewith, the
Company shall in no event include any securities other than Registrable Securities on any Registration Statement filed in accordance
herewith (other than, for the avoidance of doubt, pursuant to Section 2(g)) without the prior written consent of the Required
Holders. Until one hundred eighty (180) days after the Maturity Date, the Company shall not enter into any agreement providing
any registration rights to any of its security holders, except (i) as otherwise permitted under this Agreement or the Securities
Purchase Agreement, or (ii) with respect to Excluded Securities; or (iii) registration rights given to a FINRA-member broker-dealer
for an underwritten offering of the Company’s securities in an amount of gross proceds equal to at least Four Million ($4,000,000.00)
Dollars; or (iv) as otherwise agreed to by Buyer in writing.

 

    	 	6 

    	 

    

 

3.
Related Obligations.

 

The
Company shall use its best efforts to effect the registration of the Registrable Securities in accordance with the intended method
of disposition thereof, and, pursuant thereto, the Company shall have the following obligations:

 

(a)
The Company shall promptly prepare and file with the SEC a Registration Statement with respect to all the Registrable Securities
(but in no event later than the applicable Filing Deadline) and use its best efforts to cause such Registration Statement to become
effective as soon as practicable after such filing (but in no event later than the Effectiveness Deadline). Subject to Allowable
Grace Periods, the Company shall keep each Registration Statement effective (and the prospectus contained therein available for
use) pursuant to Rule 415 for resales by the Investors on a delayed or continuous basis at then-prevailing market prices (and
not fixed prices) at all times until the earlier of (i) the date as of which all of the Investors may sell all of the Registrable
Securities required to be covered by such Registration Statement (disregarding any reduction pursuant to Section 2(f)) without
restriction pursuant to Rule 144 (including, without limitation, volume restrictions) and without the need for current public
information required by Rule 144, or (ii) the date on which the Investors shall have sold all of the Registrable Securities covered
by such Registration Statement (the “Registration Period”). Notwithstanding anything to the contrary contained
in this Agreement, the Company shall ensure that, when filed and at all times while effective, each Registration Statement (including,
without limitation, all amendments and supplements thereto) and the prospectus (including, without limitation, all amendments
and supplements thereto) used in connection with such Registration Statement (1) shall not contain any untrue statement of a material
fact or omit to state a material fact required to be stated therein, or necessary to make the statements therein (in the case
of prospectuses, in the light of the circumstances in which they were made) not misleading and (2) will disclose (whether directly
or through incorporation by reference to other SEC filings to the extent permitted) all material information regarding the Company
and its securities. The Company shall submit to the SEC, within one (1) Business Day after the later of the date that (i) the
Company learns that no review of a particular Registration Statement will be made by the Staff or that the Staff has no further
comments on a particular Registration Statement (as the case may be) and (ii) the consent of Legal Counsel is obtained pursuant
to Section 3(c) (which consent shall be immediately sought), a request for acceleration of effectiveness of such Registration
Statement to a time and date not later than forty-eight (48) hours after the submission of such request. The Company shall respond
in writing to comments made by the SEC in respect of a Registration Statement as soon as practicable, but in no event later than
fifteen (15) days after the receipt of comments by or notice from the SEC that an amendment is required in order for a Registration
Statement to be declared effective.

 

(b)
Subject to Section 3(r) of this Agreement, the Company shall prepare and file with the SEC such amendments (including, without
limitation, post-effective amendments) and supplements to each Registration Statement and the prospectus used in connection with
each such Registration Statement, which prospectus is to be filed pursuant to Rule 424 promulgated under the 1933 Act, as may
be necessary to keep each such Registration Statement effective at all times during the Registration Period for such Registration
Statement, and, during such period, comply with the provisions of the 1933 Act with respect to the disposition of all Registrable
Securities of the Company required to be covered by such Registration Statement until such time as all of such Registrable Securities
shall have been disposed of in accordance with the intended methods of disposition by the seller or sellers thereof as set forth
in such Registration Statement; provided, however, by 8:30 a.m. (New York time) on the Business Day immediately following each
Effective Date, the Company shall file with the SEC in accordance with Rule 424(b) under the 1933 Act the final prospectus to
be used in connection with sales pursuant to the applicable Registration Statement if such a prospectus shall be required by such
rule. In the case of amendments and supplements to any Registration Statement which are required to be filed pursuant to this
Agreement (including, without limitation, pursuant to this Section 3(b)) by reason of the Company filing a report on Form 10-Q
or Form 10-K or any analogous report under the Securities Exchange Act of 1934, as amended (the “1934 Act”),
the Company shall, if permitted under the applicable rules and regulations of the SEC, have incorporated such report by reference
into such Registration Statement, if applicable, or shall file such amendments or supplements with the SEC on the next Business
Day after which the 1934 Act report is filed which created the requirement for the Company to amend or supplement such Registration
Statement.

 

    	 	7 

    	 

    

 

(c)
The Company shall (A) permit Legal Counsel to review and comment upon (i) each Registration Statement at least five (5) Business
Days prior to its filing with the SEC and (ii) all amendments and supplements to each Registration Statement (including, without
limitation, the prospectus contained therein) (except for Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current
Reports on Form 8-K, and any similar or successor reports, collectively, the “Excluded Review Materials”) within
a reasonable number of days prior to their filing with the SEC, and (B) not file any Registration Statement or amendment or supplement
thereto (other than Excluded Review Materials) in a form to which Legal Counsel or any legal counsel for any other Investor reasonably
objects. The Company shall not submit a request for acceleration of the effectiveness of a Registration Statement or any amendment
or supplement thereto or to any prospectus contained therein without the prior consent of Legal Counsel, which consent shall not
be unreasonably withheld. The Company shall promptly furnish to Legal Counsel, without charge, (i) copies of any correspondence
from the SEC or the Staff to the Company or its representatives relating to each Registration Statement, provided that such correspondence
shall not contain any material, non-public information regarding the Company or any of its Subsidiaries, and if requested by an
Investor, (ii) after the same is prepared and filed with the SEC, one (1) copy of each Registration Statement and any amendment(s)
and supplement(s) thereto, including, without limitation, financial statements and schedules, all documents incorporated therein
by reference and all exhibits and (iii) upon the effectiveness of each Registration Statement, one (1) copy of the prospectus
included in such Registration Statement and all amendments and supplements thereto. The Company and Legal Counsel shall reasonably
cooperate in connection with the Company’s performance of its obligations pursuant to this Section 3.

 

(d)
If requested by an Investor, the Company shall promptly furnish to each Investor whose Registrable Securities are included in
any Registration Statement, without charge, (i) after the same is prepared and filed with the SEC, at least one (1) copy of each
Registration Statement and any amendment(s) and supplement(s) thereto, including, without limitation, financial statements and
schedules, all documents incorporated therein by reference all exhibits and each preliminary prospectus, (ii) upon the effectiveness
of each Registration Statement, ten (10) copies of the prospectus included in such Registration Statement and all amendments and
supplements thereto (or such other number of copies as such Investor may reasonably request from time to time) and (iii) such
other documents, including, without limitation, copies of any preliminary or final prospectus in order to facilitate the disposition
of the Registrable Securities owned by such Investor.

 

    	 	8 

    	 

    

 

(e)
The Company shall use its best efforts to (i) register and qualify, unless an exemption from registration and qualification applies,
the resale by Investors of the Registrable Securities covered by a Registration Statement under such other securities or “blue
sky” laws of all applicable jurisdictions in the United States, (ii) prepare and file in those jurisdictions, such amendments
(including, without limitation, post-effective amendments) and supplements to such registrations and qualifications as may be
necessary to maintain the effectiveness thereof during the Registration Period, (iii) take such other actions as may be necessary
to maintain such registrations and qualifications in effect at all times during the Registration Period, and (iv) take all other
actions reasonably necessary or advisable to qualify the Registrable Securities for sale in such jurisdictions; provided, however,
the Company shall not be required in connection therewith or as a condition thereto to (x) qualify to do business in any jurisdiction
where it would not otherwise be required to qualify but for this Section 3(e), (y) subject itself to general taxation in any such
jurisdiction, or (z) file a general consent to service of process in any such jurisdiction. The Company shall promptly notify
Legal Counsel and each Investor who holds Registrable Securities of the receipt by the Company of any notification with respect
to the suspension of the registration or qualification of any of the Registrable Securities for sale under the securities or “blue
sky” laws of any jurisdiction in the United States or its receipt of actual notice of the initiation or threatening of any
proceeding for such purpose.

 

(f)
The Company shall notify Legal Counsel and each Investor in writing of the happening of any event, as promptly as practicable
after becoming aware of such event, as a result of which the prospectus included in a Registration Statement, as then in effect,
may include an untrue statement of a material fact or omission to state a material fact required to be stated therein or necessary
to make the statements therein, in the light of the circumstances under which they were made, not misleading (provided that in
no event shall such notice contain any material, non-public information regarding the Company or any of its Subsidiaries), and,
subject to Section 3(r), promptly prepare a supplement or amendment to such Registration Statement and such prospectus contained
therein to correct such untrue statement or omission and, upon request by an Investor or Legal Counsel deliver ten (10) copies
of such supplement or amendment to Legal Counsel and such Investor (or such other number of copies as Legal Counsel or such Investor
may reasonably request). The Company shall also promptly notify Legal Counsel and each Investor in writing (i) when a prospectus
or any prospectus supplement or post-effective amendment has been filed, when a Registration Statement or any post-effective amendment
has become effective (notification of such effectiveness shall be delivered to Legal Counsel and each Investor by facsimile or
e-mail on the same day of such effectiveness and by overnight mail), and when the Company receives written notice from the SEC
that a Registration Statement or any post-effective amendment will be reviewed by the SEC, (ii) of any request by the SEC for
amendments or supplements to a Registration Statement or related prospectus or related information, (iii) of the Company’s
reasonable determination that a post-effective amendment to a Registration Statement would be appropriate; and (iv) of the receipt
of any request by the SEC or any other federal or state governmental authority for any additional information relating to the
Registration Statement or any amendment or supplement thereto or any related prospectus. The Company shall respond as promptly
as practicable to any comments received from the SEC with respect to each Registration Statement or any amendment thereto (it
being understood and agreed that the Company’s response to any such comments shall be delivered to the SEC no later than
fifteen (15) Business Days after the receipt thereof).

 

    	 	9 

    	 

    

 

(g)
The Company shall (i) use its best efforts to prevent the issuance of any stop order or other suspension of effectiveness of each
Registration Statement or the use of any prospectus contained therein, or the suspension of the qualification, or the loss of
an exemption from qualification, of any of the Registrable Securities for sale in any jurisdiction and, if such an order or suspension
is issued, to obtain the withdrawal of such order or suspension at the earliest possible moment and (ii) notify Legal Counsel
and each Investor who holds Registrable Securities of the issuance of such order and the resolution thereof or its receipt of
actual notice of the initiation or threat of any proceeding for such purpose.

 

(h)
If any Investor may be required under applicable securities law to be described in any Registration Statement as an underwriter
and such Investor consents to so being named an underwriter, at the request of any Investor, the Company shall furnish to such
Investor, on the date of the effectiveness of such Registration Statement and thereafter from time to time on such dates as an
Investor may reasonably request (i) a letter, dated such date, from the Company’s independent certified public accountants
in form and substance as is customarily given by independent certified public accountants to underwriters in an underwritten public
offering, addressed to the Investors, and (ii) an opinion, dated as of such date, of counsel representing the Company for purposes
of such Registration Statement, in form, scope and substance as is customarily given in an underwritten public offering, addressed
to the Investors.

 

(i)
If any Investor may be required under applicable securities law to be described in any Registration Statement as an underwriter
and such Investor consents to so being named an underwriter, upon the written request of such Investor, the Company shall make
available for inspection by (i) such Investor, (ii) legal counsel for such Investor and (iii) one (1) firm of accountants or other
agents retained by such Investor (collectively, the “Inspectors”), all pertinent financial and other records,
and pertinent corporate documents and properties of the Company (collectively, the “Records”), as shall be
reasonably deemed necessary by each Inspector, and cause the Company’s officers, directors and employees to supply all information
which any Inspector may reasonably request; provided, however, each Inspector shall agree in writing to hold in strict confidence
and not to make any disclosure (except to such Investor) or use of any Record or other information which the Company’s board
of directors determines in good faith to be confidential, and of which determination the Inspectors are so notified, unless (1)
the disclosure of such Records is necessary to avoid or correct a misstatement or omission in any Registration Statement or is
otherwise required under the 1933 Act, (2) the release of such Records is ordered pursuant to a final, non-appealable subpoena
or order from a court or government body of competent jurisdiction, or (3) the information in such Records has been made generally
available to the public other than by disclosure in violation of this Agreement or any other Transaction Document. Such Investor
agrees that it shall, upon learning that disclosure of such Records is sought in or by a court or governmental body of competent
jurisdiction or through other means, give prompt notice to the Company and allow the Company, at its expense, to undertake appropriate
action to prevent disclosure of, or to obtain a protective order for, the Records deemed confidential. Nothing herein (or in any
other confidentiality agreement between the Company and such Investor, if any) shall be deemed to limit any Investor’s ability
to sell Registrable Securities in a manner which is otherwise consistent with applicable laws and regulations.

 

    	 	10 

    	 

    

 

(j)
The Company shall hold in confidence and not make any disclosure of information concerning an Investor provided to the Company
unless (i) disclosure of such information is necessary to comply with federal or state securities laws, (ii) the disclosure of
such information is necessary to avoid or correct a misstatement or omission in any Registration Statement or is otherwise required
to be disclosed in such Registration Statement pursuant to the 1933 Act, (iii) the release of such information is ordered pursuant
to a subpoena or other final, non-appealable order from a court or governmental body of competent jurisdiction, or (iv) such information
has been made generally available to the public other than by disclosure in violation of this Agreement or any other Transaction
Document. The Company agrees that it shall, upon learning that disclosure of such information concerning an Investor is sought
in or by a court or governmental body of competent jurisdiction or through other means, give prompt written notice to such Investor
and allow such Investor, at such Investor’s expense, to undertake appropriate action to prevent disclosure of, or to obtain
a protective order for, such information.

 

(k)
Without limiting any obligation of the Company under the Securities Purchase Agreement, the Company shall use its best efforts
either to (i) cause all of the Registrable Securities covered by each Registration Statement to be listed on each securities exchange
on which securities of the same class or series issued by the Company are then listed, if any, if the listing of such Registrable
Securities is then permitted under the rules of such exchange, (ii) secure designation and quotation of all of the Registrable
Securities covered by each Registration Statement on an Eligible Market (as defined in the Warrant) , or (iii) if, despite the
Company’s best efforts to satisfy the preceding clauses (i) or (ii) the Company is unsuccessful in satisfying the preceding
clauses (i) or (ii), without limiting the generality of the foregoing, to use its best efforts to arrange for at least two (2)
market makers to register with the Financial Industry Regulatory Authority (“FINRA”) as such with respect to
such Registrable Securities. In addition, the Company shall cooperate with each Investor and any broker or dealer through which
any such Investor proposes to sell its Registrable Securities in effecting a filing with FINRA pursuant to FINRA Rule 5110 as
requested by such Investor. The Company shall pay all fees and expenses in connection with satisfying its obligations under this
Section 3(k).

 

(l)
The Company shall cooperate with the Investors who hold Registrable Securities being offered and, to the extent applicable, facilitate
the timely preparation and delivery of certificates (not bearing any restrictive legend) representing the Registrable Securities
(or credit the Registrable Securities to the applicable balance accounts at DTC, as applicable) to be offered pursuant to a Registration
Statement and enable such certificates to be in such denominations or amounts (as the case may be) as the Investors may reasonably
request from time to time and registered in such names as the Investors may request.

 

(m)
If requested by an Investor, the Company shall as soon as practicable after receipt of notice from such Investor and subject to
Section 3(r) hereof, (i) incorporate in a prospectus supplement or post-effective amendment such information as an Investor reasonably
requests to be included therein relating to the sale and distribution of Registrable Securities, including, without limitation,
information with respect to the number of Registrable Securities being offered or sold, the purchase price being paid therefor
and any other terms of the offering of the Registrable Securities to be sold in such offering; (ii) make all required filings
of such prospectus supplement or post-effective amendment after being notified of the matters to be incorporated in such prospectus
supplement or post-effective amendment; and (iii) supplement or make amendments to any Registration Statement or prospectus contained
therein if reasonably requested by an Investor holding any Registrable Securities.

 

    	 	11 

    	 

    

 

(n)
The Company shall use its best efforts to cause the Registrable Securities covered by a Registration Statement to be registered
with or approved by such other governmental agencies or authorities as may be necessary to consummate the disposition of such
Registrable Securities.

 

(o)
The Company shall make generally available to its security holders as soon as practical, but not later than ninety (90) days after
the close of the period covered thereby, an earnings statement (in form complying with, and in the manner provided by, the provisions
of Rule 158 under the 1933 Act) covering a twelve-month period beginning not later than the first day of the Company’s fiscal
quarter next following the applicable Effective Date of each Registration Statement.

 

(p)
The Company shall otherwise use its best efforts to comply with all applicable rules and regulations of the SEC in connection
with any registration hereunder.

 

(q)
Within one (1) Business Day after a Registration Statement which covers Registrable Securities is declared effective by the SEC,
the Company shall deliver, and shall cause legal counsel for the Company to deliver, to the transfer agent for such Registrable
Securities (with copies to the Investors whose Registrable Securities are included in such Registration Statement) confirmation
that such Registration Statement has been declared effective by the SEC.

 

(r)
Notwithstanding anything to the contrary herein (but subject to the last sentence of this Section 3(r)), at any time after the
Effective Date of a particular Registration Statement, the Company may delay the disclosure of material, non-public information
concerning the Company or any of its Subsidiaries the disclosure of which at the time is not, in the good faith opinion of the
board of directors of the Company, in the best interest of the Company and, in the opinion of counsel to the Company, otherwise
required (a “Grace Period”), provided that the Company shall promptly notify the Investors in writing of the
(i) existence of material, non-public information giving rise to a Grace Period (provided that in each such notice the Company
shall not disclose the content of such material, non-public information to any of the Investors) and the date on which such Grace
Period will begin and (ii) date on which such Grace Period ends, provided further that (I) no Grace Period shall exceed ten (10)
consecutive days and during any three hundred sixty five (365) day period all such Grace Periods shall not exceed an aggregate
of thirty (30) days, (II) the first day of any Grace Period must be at least five (5) Trading Days after the last day of any prior
Grace Period and (III) no Grace Period may exist during the sixty (60) Trading Day period immediately following the Effective
Date of such Registration Statement (provided that such sixty (60) Trading Day period shall be extended by the number of Trading
Days during such period and any extension thereof contemplated by this proviso during which such Registration Statement is not
effective or the prospectus contained therein is not available for use) (each, an “Allowable Grace Period”).
For purposes of determining the length of a Grace Period above, such Grace Period shall begin on and include the date the Investors
receive the notice referred to in clause (i) above and shall end on and include the later of the date the Investors receive the
notice referred to in clause (ii) above and the date referred to in such notice. The provisions of Section 3(g) hereof shall not
be applicable during the period of any Allowable Grace Period. Upon expiration of each Grace Period, the Company shall again be
bound by the first sentence of Section 3(f) with respect to the information giving rise thereto unless such material, non-public
information is no longer applicable. Notwithstanding anything to the contrary contained in this Section 3(r), the Company shall
cause its transfer agent to deliver unlegended shares of Common Stock to a transferee of an Investor in accordance with the terms
of the Securities Purchase Agreement in connection with any sale of Registrable Securities with respect to which such Investor
has entered into a contract for sale, and delivered a copy of the prospectus included as part of the particular Registration Statement
to the extent applicable, prior to such Investor’s receipt of the notice of a Grace Period and for which the Investor has
not yet settled.

 

    	 	12 

    	 

    

 

(s)
The Company shall take all other reasonable actions necessary to expedite and facilitate disposition by each Investor of its Registrable
Securities pursuant to each Registration Statement.

 

(t)
Neither the Company nor any Subsidiary or affiliate thereof shall identify any Investor as an underwriter in any public disclosure
or filing with the SEC, the Principal Market or any Eligible Market and any Buyer being deemed an underwriter by the SEC shall
not relieve the Company of any obligations it has under this Agreement or any other Transaction Document; provided, however, that
the foregoing shall not prohibit the Company from including the disclosure found in the “Plan of Distribution” section
attached hereto as Exhibit A.

 

(u)
Neither the Company nor any of its Subsidiaries has entered, as of the date hereof, nor shall the Company or any of its Subsidiaries,
on or after the date of this Agreement, enter into any agreement with respect to its securities, that would have the effect of
impairing the rights granted to the Buyer in this Agreement or otherwise conflicts with the provisions hereof.

 

4.
Obligations of the Investor.

 

(a)
At least five (5) Business Days prior to the first anticipated filing date of each Registration Statement, the Company shall notify
each Investor in writing of the information the Company requires from each such Investor with respect to such Registration Statement.
It shall be a condition precedent to the obligations of the Company to complete the registration pursuant to this Agreement with
respect to the Registrable Securities of a particular Investor that such Investor shall furnish to the Company such information
regarding itself, the Registrable Securities held by it and the intended method of disposition of the Registrable Securities held
by it, as shall be reasonably required to effect and maintain the effectiveness of the registration of such Registrable Securities
and shall execute such documents in connection with such registration as the Company may reasonably request.

 

(b)
Each Investor, by such Investor’s acceptance of the Registrable Securities, agrees to cooperate with the Company as reasonably
requested by the Company in connection with the preparation and filing of each Registration Statement hereunder, unless such Investor
has notified the Company in writing of such Investor’s election to exclude all of such Investor’s Registrable Securities
from such Registration Statement.

 

(c)
Each Investor agrees that, upon receipt of any notice from the Company of the happening of any event of the kind described in
Section 3(g) or the first sentence of 3(f), such Investor will immediately discontinue disposition of Registrable Securities pursuant
to any Registration Statement(s) covering such Registrable Securities until such Investor’s receipt of the copies of the
supplemented or amended prospectus contemplated by Section 3(g) or the first sentence of Section 3(f) or receipt of notice that
no supplement or amendment is required. Subject to compliance with securities laws, notwithstanding anything to the contrary in
this Section 4(c), the Company shall cause its transfer agent to deliver unlegended shares (or book entries) of Common Stock to
a transferee of an Investor in accordance with the terms of the Securities Purchase Agreement in connection with any sale of Registrable
Securities with respect to which such Investor has entered into a contract for sale prior to the Investor’s receipt of a
notice from the Company of the happening of any event of the kind described in Section 3(g) or the first sentence of Section 3(f)
and for which such Investor has not yet settled.

 

    	 	13 

    	 

    

 

(d)
Each Investor covenants and agrees that it will comply with the prospectus delivery requirements of the 1933 Act as applicable
to it in connection with sales of Registrable Securities pursuant to a Registration Statement.

 

5.
Expenses of Registration.

 

All
reasonable expenses, other than underwriting discounts and commissions and fees payable to Legal Counsel, incurred in connection
with registrations, filings or qualifications pursuant to Sections 2 and 3, including, without limitation, all registration, listing
and qualifications fees, printers and accounting fees, FINRA filing fees (if any) and fees and disbursements of counsel for the
Company shall be paid by the Company.

 

6.
Indemnification.

 

(a)
To the fullest extent permitted by law, the Company will, and hereby does, indemnify, hold harmless and defend each Investor and
each of its directors, officers, shareholders, members, managers, partners, employees, agents, advisors, representatives (and
any other Persons with a functionally equivalent role of a Person holding such titles notwithstanding the lack of such title or
any other title) and each Person, if any, who controls such Investor within the meaning of the 1933 Act or the 1934 Act and each
of the directors, officers, shareholders, members, managers, partners, employees, agents, advisors, representatives (and any other
Persons with a functionally equivalent role of a Person holding such titles notwithstanding the lack of such title or any other
title) of such controlling Persons (each, an “Indemnified Person”), against any losses, obligations, claims,
damages, liabilities, contingencies, judgments, fines, penalties, charges, costs (including, without limitation, court costs,
reasonable attorneys’ fees and costs of defense and investigation), amounts paid in settlement or expenses, joint or several,
(collectively, “Claims”) incurred in investigating, preparing or defending any action, claim, suit, inquiry,
proceeding, investigation or appeal taken from the foregoing by or before any court or governmental, administrative or other regulatory
agency, body or the SEC, whether pending or threatened, whether or not an Indemnified Person is or may be a party thereto (“Indemnified
Damages”), to which any of them may become subject insofar as such Claims (or actions or proceedings, whether commenced
or threatened, in respect thereof) arise out of or are based upon: (i) any untrue statement or alleged untrue statement of a material
fact in a Registration Statement or any post-effective amendment thereto or in any filing made in connection with the qualification
of the offering under the securities or other “blue sky” laws of any jurisdiction in which Registrable Securities
are offered (“Blue Sky Filing”), or the omission or alleged omission to state a material fact required to be
stated therein or necessary to make the statements therein not misleading, (ii) any untrue statement or alleged untrue statement
of a material fact contained in any preliminary prospectus if used prior to the effective date of such Registration Statement,
or contained in the final prospectus (as amended or supplemented, if the Company files any amendment thereof or supplement thereto
with the SEC) or the omission or alleged omission to state therein any material fact necessary to make the statements made therein,
in light of the circumstances under which the statements therein were made, not misleading or (iii) any violation or alleged violation
by the Company of the 1933 Act, the 1934 Act, any other law, including, without limitation, any state securities law, or any rule
or regulation thereunder relating to the offer or sale of the Registrable Securities pursuant to a Registration Statement (the
matters in the foregoing clauses (i) through (iii) being, collectively, “Violations”). Subject to Section 6(c),
the Company shall reimburse the Indemnified Persons, promptly as such expenses are incurred and are due and payable, for any legal
fees or other reasonable expenses incurred by them in connection with investigating or defending any such Claim. Notwithstanding
anything to the contrary contained herein, the indemnification agreement contained in this Section 6(a): (i) shall not apply to
a Claim by an Indemnified Person arising out of or based upon a Violation which occurs in reliance upon and in conformity with
information furnished in writing to the Company by such Indemnified Person for such Indemnified Person expressly for use in connection
with the preparation of such Registration Statement or any such amendment thereof or supplement thereto and (ii) shall not be
available to a particular Investor to the extent such Claim is based on a failure of such Investor to deliver or to cause to be
delivered the prospectus made available by the Company (to the extent applicable), including, without limitation, a corrected
prospectus, if such prospectus or corrected prospectus was timely made available by the Company pursuant to Section 3(d) and then
only if, and to the extent that, following the receipt of the corrected prospectus no grounds for such Claim would have existed;
and (iii) shall not apply to amounts paid in settlement of any Claim if such settlement is effected without the prior written
consent of the Company, which consent shall not be unreasonably withheld or delayed. Such indemnity shall remain in full force
and effect regardless of any investigation made by or on behalf of the Indemnified Person and shall survive the transfer of any
of the Registrable Securities by any of the Investors pursuant to Section 9.

 

    	 	14 

    	 

    

 

(b)
In connection with any Registration Statement in which an Investor is participating, such Investor agrees to (severally and not
jointly) indemnify, hold harmless and defend, to the same extent and in the same manner as is set forth in Section 6(a), the Company,
each of its directors, each of its officers who signs the Registration Statement and each Person, if any, who controls the Company
within the meaning of the 1933 Act or the 1934 Act (each, an “Indemnified Party”), against any Claim or Indemnified
Damages to which any of them may become subject, under the 1933 Act, the 1934 Act or otherwise, insofar as such Claim or Indemnified
Damages arise out of or are based upon any Violation, in each case, to the extent, and only to the extent, that such Violation
occurs in reliance upon and in conformity with written information furnished to the Company by such Investor expressly for use
in connection with such Registration Statement; and, subject to Section 6(c) and the below provisos in this Section 6(b), such
Investor will reimburse an Indemnified Party any legal or other expenses reasonably incurred by such Indemnified Party in connection
with investigating or defending any such Claim; provided, however, the indemnity agreement contained in this Section 6(b) and
the agreement with respect to contribution contained in Section 7 shall not apply to amounts paid in settlement of any Claim if
such settlement is effected without the prior written consent of such Investor, which consent shall not be unreasonably withheld
or delayed, provided further that such Investor shall be liable under this Section 6(b) for only that amount of a Claim or Indemnified
Damages as does not exceed the net proceeds to such Investor as a result of the applicable sale of Registrable Securities pursuant
to such Registration Statement. Such indemnity shall remain in full force and effect regardless of any investigation made by or
on behalf of such Indemnified Party and shall survive the transfer of any of the Registrable Securities by any of the Investors
pursuant to Section 9.

 

(c)
Promptly after receipt by an Indemnified Person or Indemnified Party (as the case may be) under this Section 6 of notice of the
commencement of any action or proceeding (including, without limitation, any governmental action or proceeding) involving a Claim,
such Indemnified Person or Indemnified Party (as the case may be) shall, if a Claim in respect thereof is to be made against any
indemnifying party under this Section 6, deliver to the indemnifying party a written notice of the commencement thereof, and the
indemnifying party shall have the right to participate in, and, to the extent the indemnifying party so desires, jointly with
any other indemnifying party similarly noticed, to assume control of the defense thereof with counsel mutually satisfactory to
the indemnifying party and the Indemnified Person or the Indemnified Party (as the case may be); provided, however, an Indemnified
Person or Indemnified Party (as the case may be) shall have the right to retain its own counsel with the fees and expenses of
such counsel to be paid by the indemnifying party if: (i) the indemnifying party has agreed in writing to pay such fees and expenses;
(ii) the indemnifying party shall have failed promptly to assume the defense of such Claim and to employ counsel reasonably satisfactory
to such Indemnified Person or Indemnified Party (as the case may be) in any such Claim; or (iii) the named parties to any such
Claim (including, without limitation, any impleaded parties) include both such Indemnified Person or Indemnified Party (as the
case may be) and the indemnifying party, and such Indemnified Person or such Indemnified Party (as the case may be) shall have
been advised by counsel that a conflict of interest is likely to exist if the same counsel were to represent such Indemnified
Person or such Indemnified Party and the indemnifying party (in which case, if such Indemnified Person or such Indemnified Party
(as the case may be) notifies the indemnifying party in writing that it elects to employ separate counsel at the expense of the
indemnifying party, then the indemnifying party shall not have the right to assume the defense thereof and such counsel shall
be at the expense of the Indemnifying Party, provided further that in the case of clause (iii) above the indemnifying party shall
not be responsible for the reasonable fees and expenses of more than one (1) separate legal counsel for such Indemnified Person
or Indemnified Party (as the case may be). The Indemnified Party or Indemnified Person (as the case may be) shall reasonably cooperate
with the indemnifying party in connection with any negotiation or defense of any such action or Claim by the indemnifying party
and shall furnish to the indemnifying party all information reasonably available to the Indemnified Party or Indemnified Person
(as the case may be) which relates to such action or Claim. The indemnifying party shall keep the Indemnified Party or Indemnified
Person (as the case may be) reasonably apprised at all times as to the status of the defense or any settlement negotiations with
respect thereto. No indemnifying party shall be liable for any settlement of any action, claim or proceeding effected without
its prior written consent; provided, however, the indemnifying party shall not unreasonably withhold, delay or condition its consent.
No indemnifying party shall, without the prior written consent of the Indemnified Party or Indemnified Person (as the case may
be), consent to entry of any judgment or enter into any settlement or other compromise which does not include as an unconditional
term thereof the giving by the claimant or plaintiff to such Indemnified Party or Indemnified Person (as the case may be) of a
release from all liability in respect to such Claim or litigation, and such settlement shall not include any admission as to fault
on the part of the Indemnified Party. Following indemnification as provided for hereunder, the indemnifying party shall be subrogated
to all rights of the Indemnified Party or Indemnified Person (as the case may be) with respect to all third parties, firms or
corporations relating to the matter for which indemnification has been made. The failure to deliver written notice to the indemnifying
party within a reasonable time of the commencement of any such action shall not relieve such indemnifying party of any liability
to the Indemnified Person or Indemnified Party (as the case may be) under this Section 6, except to the extent that the indemnifying
party is materially and adversely prejudiced in its ability to defend such action.

 

    	 	15 

    	 

    

 

(d)
The indemnification required by this Section 6 shall be made by periodic payments of the amount thereof during the course of the
investigation or defense, as and when bills are received or Indemnified Damages are incurred.

 

(e)
The indemnity and contribution agreements contained herein shall be in addition to (i) any cause of action or similar right of
the Indemnified Party or Indemnified Person against the indemnifying party or others, and (ii) any liabilities the indemnifying
party may be subject to pursuant to the law.

 

7.
Contribution.

 

To
the extent any indemnification by an indemnifying party is prohibited or limited by law or applicable policy, the indemnifying
party agrees to make the maximum contribution with respect to any amounts for which it would otherwise be liable under Section
6 to the fullest extent permitted by law; provided, however: (i) no contribution shall be made under circumstances where the maker
would not have been liable for indemnification under the fault standards set forth in Section 6 of this Agreement, (ii) no Person
involved in the sale of Registrable Securities which Person is guilty of fraudulent misrepresentation (within the meaning of Section
11(f) of the 1933 Act) in connection with such sale shall be entitled to contribution from any Person involved in such sale of
Registrable Securities who was not guilty of fraudulent misrepresentation; and (iii) contribution by any seller of Registrable
Securities shall be limited in amount to the amount of net proceeds received by such seller from the applicable sale of such Registrable
Securities pursuant to such Registration Statement. Notwithstanding the provisions of this Section 7, no Investor shall be required
to contribute, in the aggregate, any amount in excess of the amount by which the net proceeds actually received by such Investor
from the applicable sale of the Registrable Securities subject to the Claim exceeds the amount of any damages that such Investor
has otherwise been required to pay, or would otherwise be required to pay under Section 6(b), by reason of such untrue or alleged
untrue statement or omission or alleged omission.

 

8.
Reports Under the 1934 Act.

 

With
a view to making available to the Investors the benefits of Rule 144, the Company agrees to:

 

(a)
make and keep public information available, as those terms are understood and defined in Rule 144;

 

(b)
except for the Company’s annual report on Form 10-K for the year ended October 31, 2018, file with the SEC in a timely manner
all reports and other documents required of the Company under the 1933 Act and the 1934 Act so long as the Company remains subject
to such requirements (it being understood and agreed that nothing herein shall limit any obligations of the Company under the
Securities Purchase Agreement) and the filing of such reports and other documents is required for the applicable provisions of
Rule 144; and

 

    	 	16 

    	 

    

 

(c)
furnish to each Investor so long as such Investor owns Registrable Securities, promptly upon request, (i) a written statement
by the Company, if true, that it has complied with the reporting, submission and posting requirements of Rule 144 and the 1934
Act, (ii) a copy of the most recent annual or quarterly report of the Company and such other reports and documents so filed by
the Company with the SEC but only if such reports are not publicly available via EDGAR, and (iii) such other information as may
be reasonably requested to permit the Investors to sell such securities pursuant to Rule 144 without registration.

 

9.
Assignment of Registration Rights.

 

Subject
to any restrictions contained in the Transaction Documents, all or any portion of the rights under this Agreement shall be automatically
assignable by each Investor to any transferee or assignee (as the case may be) of all or any portion of such Investor’s
Registrable Securities, Note or Warrant if: (i) such Investor agrees in writing with such transferee or assignee (as the case
may be) to assign all or any portion of such rights, and a copy of such agreement is furnished to the Company within a reasonable
time after such transfer or assignment (as the case may be); (ii) the Company is, within a reasonable time after such transfer
or assignment (as the case may be), furnished with written notice of (a) the name and address of such transferee or assignee (as
the case may be), and (b) the securities with respect to which such registration rights are being transferred or assigned (as
the case may be); (iii) immediately following such transfer or assignment (as the case may be) the further disposition of such
securities by such transferee or assignee (as the case may be) is restricted under the 1933 Act or applicable state securities
laws if so required; (iv) at or before the time the Company receives the written notice contemplated by clause (ii) of this sentence
such transferee or assignee (as the case may be) agrees in writing with the Company to be bound by all of the provisions contained
herein; (v) such transfer or assignment (as the case may be) shall have been made in accordance with the applicable requirements
of the Securities Purchase Agreement, the Note and the Warrant (as the case may be); and (vi) such transfer or assignment (as
the case may be) shall have been conducted in accordance with all applicable federal and state securities laws.

 

10.
Amendment of Registration Rights.

 

Provisions
of this Agreement may be amended only with the written consent of the Company and the Required Holders. Any amendment effected
in accordance with this Section 10 shall be binding upon each Investor and the Company, provided that no such amendment shall
be effective to the extent that it (1) applies to less than all of the holders of Registrable Securities or (2) imposes any obligation
or liability on any Investor without such Investor’s prior written consent (which may be granted or withheld in such Investor’s
sole discretion). No waiver shall be effective unless it is in writing and signed by an authorized representative of the waiving
party. No consideration shall be offered or paid to any Person to amend or consent to a waiver or modification of any provision
of this Agreement unless the same consideration (other than the reimbursement of legal fees) also is offered to all of the parties
to this Agreement.

 

    	 	17 

    	 

    

 

11.
Miscellaneous.

 

(a)
Solely for purposes of this Agreement, a Person is deemed to be a holder of Registrable Securities whenever such Person owns,
or is deemed to own, of record such Registrable Securities. If the Company receives conflicting instructions, notices or elections
from two or more Persons with respect to the same Registrable Securities, the Company shall act upon the basis of instructions,
notice or election received from such record owner of such Registrable Securities.

 

(b)
Any notices, consents, waivers or other communications required or permitted to be given under the terms of this Agreement must
be in writing and will be deemed to have been delivered: (i) upon receipt, when delivered personally; (ii) upon receipt, when
sent by facsimile (provided confirmation of transmission is mechanically or electronically generated and kept on file by the sending
party) or electronic mail; (iii) with respect to Section 3(c), by electronic mail (provided confirmation of transmission is electronically
generated and kept on file by the sending party); or (iv) one (1) Business Day after deposit with a nationally recognized overnight
delivery service with next day delivery specified, in each case, properly addressed to the party to receive the same. The addresses,
facsimile numbers and e-mail addresses for such communications shall be:

 

If
to the Company:

 

Verus
International, Inc.

9841
Washingtonian Boulevard, #390

Gaithersburg,
MD 20878

Telephone:
(301) 329-2700

Attention:
Anshu Bhatnagar, Chief Executive Officer

E-mail:
ab@verusfoods.com

 

With
a copy (for informational purposes only) to:

 

Sheppard
Mullin Richter & Hampton LLP

30
Rockefeller Plaza, 39th Floor

New
York, NY 10112

Attn:
Andrea Cataneo, Esq.

Email:
ACataneo@sheppardmullin.com

 

If
to the Transfer Agent:

 

American
Stock Transfer & Trust Company, LLC

6201
15th Avenue

Brooklyn,
NY 11219

Attention:
Janice Santiago

Phone
Number: (718) 921-8300

 

If
to the Buyer:

 

    	 	18 

    	 

    

 

If
to Legal Counsel:

 

If
to an Investor, to its address and e-mail address set forth in the Securities Purchase Agreement, or to such other address, e-mail
address and/or facsimile number and/or to the attention of such other Person as the recipient party has specified by written notice
given to the Company (5) days prior to the effectiveness of such change. Written confirmation of receipt (A) given by the recipient
of such notice, consent, waiver or other communication, (B) mechanically or electronically generated by the sender’s facsimile
machine or electronic mail transmission containing the time, date, recipient facsimile number or electronic mail address and an
image of the first page of such transmission or (C) provided by a courier or overnight courier service shall be rebuttable evidence
of personal service, receipt by facsimile or receipt from a nationally recognized overnight delivery service in accordance with
clause (i), (ii) or (iii) above, respectively.

 

(c)
Failure of any party to exercise any right or remedy under this Agreement or otherwise, or delay by a party in exercising such
right or remedy, shall not operate as a waiver thereof. The Company and each Investor acknowledge and agree that irreparable damage
would occur in the event that any of the provisions of this Agreement were not performed in accordance with their specific terms
or were otherwise breached. It is accordingly agreed that each party hereto shall be entitled to an injunction or injunctions
to prevent or cure breaches of the provisions of this Agreement by any other party hereto and to enforce specifically the terms
and provisions hereof (without the necessity of showing economic loss and without any bond or other security being required),
this being in addition to any other remedy to which any party may be entitled by law or equity.

 

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

 

    	 	19 

    	 

    

 

(e)
If any provision of this Agreement is prohibited by law or otherwise determined to be invalid or unenforceable by a court of competent
jurisdiction, the provision that would otherwise be prohibited, invalid or unenforceable shall be deemed amended to apply to the
broadest extent that it would be valid and enforceable, and the invalidity or unenforceability of such provision shall not affect
the validity of the remaining provisions of this Agreement so long as this Agreement as so modified continues to express, without
material change, the original intentions of the parties as to the subject matter hereof and the prohibited nature, invalidity
or unenforceability of the provision(s) in question does not substantially impair the respective expectations or reciprocal obligations
of the parties or the practical realization of the benefits that would otherwise be conferred upon the parties. The parties will
endeavor in good faith negotiations to replace the prohibited, invalid or unenforceable provision(s) with a valid provision(s),
the effect of which comes as close as possible to that of the prohibited, invalid or unenforceable provision(s).

 

(f)
This Agreement, the other Transaction Documents, the schedules and exhibits attached hereto and thereto and the instruments referenced
herein and therein constitute the entire agreement among the parties hereto and thereto solely with respect to the subject matter
hereof and thereof. There are no restrictions, promises, warranties or undertakings, other than those set forth or referred to
herein and therein. This Agreement, the other Transaction Documents, the schedules and exhibits attached hereto and thereto and
the instruments referenced herein and therein supersede all prior agreements and understandings among the parties hereto solely
with respect to the subject matter hereof and thereof; provided, however, nothing contained in this Agreement or any other Transaction
Document shall (or shall be deemed to) (i) have any effect on any agreements any Investor has entered into with the Company or
any of its Subsidiaries prior to the date hereof with respect to any prior investment made by such Investor in the Company, (ii)
waive, alter, modify or amend in any respect any obligations of the Company or any of its Subsidiaries or any rights of or benefits
to any Investor or any other Person in any agreement entered into prior to the date hereof between or among the Company and/or
any of its Subsidiaries and any Investor and all such agreements shall continue in full force and effect or (iii) limit any obligations
of the Company under any of the other Transaction Documents.

 

(g)
Subject to compliance with Section 9 (if applicable), this Agreement shall inure to the benefit of and be binding upon the permitted
successors and assigns of each of the parties hereto. This Agreement is not for the benefit of, nor may any provision hereof be
enforced by, any Person, other than the parties hereto, their respective permitted successors and assigns and the Persons referred
to in Sections 6 and 7 hereof.

 

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

 

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

 

    	 	20 

    	 

    

 

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

 

(k)
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. Notwithstanding anything to the contrary set forth in Section
10, terms used in this Agreement but defined in the other Transaction Documents shall have the meanings ascribed to such terms
on the Closing Date in such other Transaction Documents unless otherwise consented to in writing by each Investor.

 

(l)
All consents and other determinations required to be made by the Investors pursuant to this Agreement shall be made, unless otherwise
specified in this Agreement, by the Required Holders, determined as if the outstanding Note has been converted for Registrable
Securities without regard to any limitations on redemption, amortization and/or conversion of the Note and the outstanding Warrant
has been exercised for Registrable Securities without regard to any limitations on exercise of the Warrant.

 

(m)
This Agreement is intended for the benefit of the parties hereto and their respective permitted successors and assigns, and is
not for the benefit of, nor may any provision hereof be enforced by, any other Person. As used herein the masculine shall include
the feminine and neuter cases, and vice versa, and the sungular shall include the plaural, abd vice-versa, all as the context
may so require.

 

[signature
page follows]

 

    	 	21 

    	 

    

 

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

 

	 	COMPANY:
	 	 
	 	VERUS
    INTERNATIONAL, INC.
	 	 	 
	 	By:
    	 
	 	Name:
    	Anshu
    Bhatnagar
	 	Title:
    	Chief
    Executive Officer
	 	 	 
	 	BUYER:
	 	 	 
	 	By:
    	 
	 	Name:	 
	 	Title:	 

 

    	 

    	 

    

 

EXHIBIT
A

 

SELLING
STOCKHOLDERS

 

The
shares of common stock being offered by the selling stockholders are those issuable to the selling stockholders upon conversion
of the Note and exercise of the Warrant. For additional information regarding the issuance of the Note and the Warrant, see “Private
Placement of Note and Warrant” above. We are registering the shares of common stock in order to permit the selling stockholders
to offer the shares for resale from time to time. Except for the ownership of the Note and the Warrant issued pursuant to the
Securities Purchase Agreement, the selling stockholders have not had any material relationship with us within the past three years.

 

The
table below lists the selling stockholders and other information regarding the beneficial ownership (as determined under Section
13(d) of the Securities Exchange Act of 1934, as amended, and the rules and regulations thereunder) of the shares of common stock
held by each of the selling stockholders. The second column lists the number of shares of common stock beneficially owned by the
selling stockholders, based on their respective ownership of shares of common stock, Note and Warrant, as of ________, 2019, assuming
conversion of the Note and exercise of the Warrant held by each such selling stockholder on that date but taking account of any
limitations on conversion and exercise set forth therein.

 

The
third column lists the shares of common stock being offered by the selling stockholders and does not take in account any limitations
on (i) conversion of the Note set forth therein or (ii) exercise of the Warrant set forth therein.

 

In
accordance with the terms of a registration rights agreement with the holders of the Note and the Warrant, the prospectus generally
covers the resale of 125% of the sum of (i) the maximum number of shares of common stock issuable upon conversion of the Note
and (ii) the maximum number of shares of common stock issuable upon exercise of the Warrant, in each case, determined as if the
outstanding Note and Warrant were converted or exercised (as the case may be) in full (without regard to any limitations on conversion
or exercise contained therein solely for the purpose of such calculation) as of the trading day immediately preceding the date
this registration statement was initially filed with the SEC. Because the conversion price of the Note and the exercise price
of the Warrant may be adjusted, the number of shares that will actually be issued may be more or less than the number of shares
being offered by this prospectus. Although the selling stockholders may sell all, some or none of their shares in this offering,
the fourth column assumes the sale of all of the shares offered by the selling stockholders pursuant to this prospectus.

 

Under
the terms of the Note and the Warrant, a selling stockholder may not convert the Note or exercise the Warrant to the extent (but
only to the extent) such selling stockholder or any of its affiliates would beneficially own a number of shares of our common
stock which would exceed 9.99% of the outstanding shares of capital stock of the Company, subject to right of such stockholder
to waive such ownership limitation.

 

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

 

    	 

    	 

    

 

PLAN
OF DISTRIBUTION

 

We
are registering the Resale Shares covered by this prospectus to permit the selling stockholders to conduct public secondary trading
of such shares from time to time after the date of this prospectus. We will not receive any of the proceeds from the sale of the
Resale Shares offered by this prospectus; however, we will receive the exercise price of any Warrants not exercised by the selling
stockholders on a cashless exercise basis. The aggregate proceeds to the selling stockholders from the sale of the Resale Shares
will be the purchase price of the Resale Shares less any discounts and commissions. Each selling stockholder reserves the right
to accept and, together with their respective agents, to reject, any proposed purchases of Resale Shares to be made directly or
through agents.

 

Following
the date of this prospectus, the selling stockholders may sell all or a portion of their Resale Shares from time to time in one
or more transactions in the over-the-counter market (or any other market which shall, at the time, constitute the Company’s
principal market) at prevailing market prices or at privately negotiated market prices. The selling stockholders may use any one
or more of the following methods when selling the Resale Shares offered by this prospectus:

 

	 	●	ordinary
    brokerage transactions and transactions in which the broker-dealer solicits purchasers;
	 	 	 
	 	●	block
    trades in which the broker-dealer will attempt to sell the shares as agent but may position and resell a portion of the block
    as principal to facilitate the transaction;
	 	 	 
	 	●	purchases
    by a broker-dealer as principal and resale by the broker-dealer for its account;
	 	 	 
	 	●	an
    exchange distribution in accordance with the rules of the applicable exchange;
	 	 	 
	 	●	privately
    negotiated transactions;
	 	 	 
	 	●	settlement
    of short sales entered into after the effective date of the registration statement of which this prospectus is a part;
	 	 	 
	 	●	broker-dealers
    may agree with the selling stockholders to sell a specified number of such shares at a stipulated price per share;
	 	 	 
	 	●	a
    combination of any such methods of sale;
	 	 	 
	 	●	through
    the writing or settlement of options or other hedging transactions, whether through an options exchange or otherwise;
	 	 	 
	 	●	under
    Rule 144, Rule 144A or Regulation S under the Securities Act, if available, rather than under this prospectus; or
	 	 	 
	 	●	any
    other method permitted pursuant to applicable law.

 

Our
common stock is currently quoted on the OTC Pink under the symbol “VRUS.” Broker-dealers engaged by the selling stockholders
may arrange for other brokers-dealers to participate in sales. Broker-dealers may receive commissions or discounts from the selling
stockholders (or, if any broker-dealer acts as agent for the purchaser of shares, from the purchaser) in amounts to be negotiated,
but, except as set forth in a supplement to this prospectus, in the case of an agency transaction not in excess of a customary
brokerage commission in compliance with NASD Rule 2440; and in the case of a principal transaction a markup or markdown in compliance
with NASD IM-2440.

 

    	 

    	 

    

 

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

 

The
selling stockholders and any broker-dealers or agents that are involved in selling the shares may be deemed to be “underwriters”
within the meaning of the Securities Act in connection with such sales. In such event, any commissions received by such broker-dealers
or agents and any profit on the resale of the shares purchased by them may be deemed to be underwriting commissions or discounts.
If a selling stockholder is deemed to be an underwriter, the selling stockholder may be subject to certain statutory liabilities
including, but not limited to Sections 11, 12 and 17 of the Securities Act and Rule 10b-5 under the Exchange Act. Selling stockholders
who are deemed underwriters within the meaning of the Securities Act will be subject to the prospectus delivery requirements of
the Securities Act. The SEC staff is of the view that selling stockholders who are registered broker-dealers or affiliates of
registered broker-dealers may be underwriters under the Securities Act. In compliance with FINRA guidelines, the maximum commission
or discount to be received by an FINRA member or independent broker-dealer may not exceed 8% for the sale of any securities registered
hereunder. We will not pay any compensation or give any discounts or commissions to any underwriter in connection with the securities
being offered by this prospectus. [The selling stockholders have advised us that they have not entered into any written or oral
agreements, understandings or arrangements with any underwriter or broker-dealer regarding the sale of the Resale Shares. There
is no underwriter or coordinating broker acting in connection with the proposed sale of the Resale Shares by the selling stockholders.]

 

We
are required to pay certain fees and expenses incurred by us incident to the registration of the shares. We have agreed to indemnify
the selling stockholders against certain losses, claims, damages and liabilities, including liabilities under the Securities Act.
Each selling stockholder has in turn agreed to indemnify us for certain specified liabilities.

 

In
order to comply with the securities laws of some states, if applicable, the shares of common stock may be sold in these jurisdictions
only through registered or licensed brokers or dealers. In addition, in some states the shares of common stock may not be sold
unless they have been registered or qualified for sale or an exemption from registration or qualification requirements is available
and is complied with.

 

Under
applicable rules and regulations under the Exchange Act, any person engaged in the distribution of the Resale Shares may not simultaneously
engage in market making activities with respect to the common stockfor the applicable restricted period, as defined in Regulation
M, prior to the commencement of the distribution. In addition, the selling stockholders will be subject to applicable provisions
of the Exchange Act and the rules and regulations thereunder, including Regulation M, which may limit the timing of purchases
and sales of shares of the common stock by the selling stockholders or any other person. The anti-manipulation rules under the
Exchange Act may apply to sales of common stock in the market and to the activities of the selling stockholders and their affiliates.
Regulation M may restrict the ability of any person engaged in the distribution of the common stock to engage in market-making
activities with respect to the particular shares of common stock being distributed for a period of up to five business days before
the distribution. These restrictions may affect the marketability of the common stock and the ability of any person or entity
to engage in market-making activities with respect to the common stock. We will make copies of this prospectus available to the
selling stockholders and have informed them of the need to deliver a copy of this prospectus to each purchaser at or prior to
the time of the sale.

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