Document:

Exhibit 10.1

 

THIRD
AMENDMENT AND EXCHANGE AGREEMENT

 

This
Amendment and Exchange Agreement (the “Agreement”) is entered into as of the 23rd day of October, 2017, by
and between Helios and Matheson Analytics Inc., a Delaware corporation with offices located at Empire State Building, 350 5th
Avenue, New York, New York 10118 (the “Company”) and the investor signatory hereto (the “Holder”),
with reference to the following facts:

 

A.  Prior
to the date hereof, pursuant to that Securities Purchase Agreement, dated as of February 7, 2017, by and between the Company and
the Holder (the “February Securities Purchase Agreement”), the Company issued to the Holder, among other things,
a senior secured convertible note with an initial principal amount of $5 million, convertible into shares of Common Stock, in
accordance with the terms of thereof (the “February Note”, as converted the “February Conversion Shares”).

 

B.  Prior
to the date hereof, pursuant to that Securities Purchase Agreement, dated as of August 15, 2017, by and between the Company and
the Holder (as amended, the “August Securities Purchase Agreement”), the Company issued to the Holder, among
other things, senior secured convertible notes, convertible into shares of Common Stock, in accordance with the terms of thereof
(including any senior secured convertible note issued in exchange therefore, the “August Notes”).

 

C.  Prior
to the date hereof, pursuant to that letter agreement (the “Letter Agreement”), dated August 27, 2017, by and
between the Company and the Holder, the Holder agreed to convert $2.5 million in principal amount of the February Note and accrued
unpaid interest thereon into certain February Conversion Shares (such aggregate number of February Conversion Shares, the “February
Share Amount”), subject to a right (the “February Exchange Right”) to exchange up to an aggregate
of the February Share Amount of shares of Common Stock, in whole or in part, into a senior secured convertible note in the form
of the February Note (the “February Exchange Note”) upon delivery of a written exchange notice by the Holder
to the Company (each, a “February Exchange”).

 

D.  On October 13, 2017, the Holder exchanged one hundred thousand (100,000) shares of Common Stock into a February Exchange Note
with three hundred thousand dollars ($300,000) in aggregate principal amount (the “New February Exchange Note”).

 

E.  The Company and the Holder desire to exchange (collectively, the “Exchange” or the “Transaction”)
the New February Exchange Note for 947,218 shares of Common Stock (collectively, the “Exchange Common Shares”)
and Rights (as defined below) to receive 552,782 Reserved Shares (as defined below). The Exchange Shares and the Reserved Shares
are referred to herein as the “Exchange Shares” and together with the Rights, the “Exchange Securities”.
The Exchange Securities and this Agreement and such other documents and certificates related thereto are collectively referred
to herein as the “Exchange Documents”.

 

F.  The Exchange is being made in reliance upon the exemption from registration provided
by Section 4(a)(2) and Rule 144(d)(3)(ii) of the Securities Act of 1933, as amended (the “Securities Act”).

 

    

    

    

 

G.
  Capitalized terms used but not otherwise defined herein shall have the meanings set
forth in the February Securities Purchase Agreement.

 

NOW,
THEREFORE, in consideration of the foregoing premises and the mutual covenants hereinafter contained, the parties hereto agree
as follows:

 

1.  Exchange. On the date hereof, pursuant to Section 4(a)(2) and Rule 144(d)(3)(ii) of the Securities Act, the
Holder hereby agrees to convey, assign and transfer the New February Exchange Note to the Company in exchange for which the Company
agrees to issue the Exchange Common Shares and the Rights to the Holder. On the date hereof, in exchange for the New February
Exchange Note, the Company shall deliver (a) the Exchange Common Shares to the Holder by deposit/withdrawal at custodian in accordance
with the instructions attached hereto as Schedule I, which Exchange Common Shares shall be issued without restricted
legend and shall be freely tradable by the Holder (b) or cause to be delivered to the Holder (or its designee) a certificate evidencing
the Rights at the address for delivery set forth on the Schedule of Buyers to the August Securities Purchase Agreement .

 

2.  
Ratifications, Waivers; Deferrals, Consents; Terminations.

 

(a)  
Ratifications. Except as otherwise expressly provided herein, the February Securities Purchase Agreement, the August Securities
Purchase Agreement, each other Transaction Document (as defined in the February Securities Purchase Agreement) and each other
Transaction Document (as defined in the August Securities Purchase Agreement), is, and shall continue to be, in full force and
effect and is hereby ratified and confirmed in all respects, except that on and after the date hereof: (i) all references in the
February Securities Purchase Agreement to “this Agreement”, “hereto”, “hereof”, “hereunder”
or words of like import referring to the February Securities Purchase Agreement shall mean the February Securities Purchase Agreement
as amended by this Agreement, and (ii) all references in the other Transaction Documents (as defined in the August Securities
Purchase Agreement), to the “Securities Purchase Agreement”, “thereto”, “thereof”, “thereunder”
or words of like import referring to the Securities Purchase Agreement shall mean the August Securities Purchase Agreement as
amended by this Agreement.

 

(b)  Waiver of Prior Defaults; Acknowledgement of No Current Defaults. The Holder hereby acknowledges and agrees that, for and
in consideration of the agreements contained herein, the Holder does hereby fully, finally, unconditionally and irrevocably waive
any and all Events of Default (as defined in the August Notes) known by the Holder to have occurred prior to the date hereof,
including, without limitation, any failure by the Company to pay Interest due under the August Notes prior to the date of this
Agreement (the “Waived Defaults”). The Holder hereby acknowledges that, after giving effect to the foregoing
waiver and the Exchange, the Holder has no actual knowledge of any Events of Default (as defined in the August Notes) that remain
outstanding as of the date hereof. The Holder hereby acknowledges that, after giving effect to the foregoing waiver and the Exchange,
as of the date of this Agreement, the Holder is not entitled to any of the rights or remedies set forth in Section 4(b) of the
August Notes with respect to the Waived Defaults.

 

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(c)  
Termination of February Exchange Right. Effective as of the time of delivery of the Exchange Common Shares to the Holder
in accordance with Section 1 above, the Holder hereby waives its February Exchange Right pursuant to the Letter Agreement to effect
any additional exchanges of Common Stock into February Exchange Notes.

 

(d)  
Deferral of Payment of Interest. Effective as of the time of delivery of the Exchange Common Shares to the Holder in accordance
with Section 1 above, the Holder hereby agrees to defer the Company’s obligation to pay any Interest (as defined in the
August Notes) under the August Notes until the earlier to occur of (x) each Conversion Date (as defined in the August Notes),
solely with respect to such portion of Interest included in the Conversion Amount (as defined in the August Notes) subject to
the applicable conversion on such Conversion Date, (y) each Redemption Date, solely with respect to such portion of Interest included
in the Conversion Amount subject to the redemption on such Redemption Date and (z) the Maturity Date (as defined in the August
Notes).

 

(e)  
Waiver of Adjustment Rights under Warrant. The Holder hereby waives any and all adjustment rights under Section 2 of the
Common Stock Purchase Warrant issued to the Holder pursuant to the August Securities Purchase Agreement solely to the extent arising
from the issuance of the Exchange Securities and not with respect to any other issuance of securities by the Company from time
to time.

 

(f)  
Consents.

 

(i)  The
Holder hereby waives any prohibition in the Transaction Documents (as defined in the August Securities Purchase Agreement) or
any other agreement with the Company prohibiting the Company from waiving any provision of any lockup agreement with Helios and
Matheson Information Technology Ltd. to permit the sale, in its discretion, of up to 170,000 shares of Common Stock without any
further waiting period, notwithstanding anything in such lockup agreement or other agreement to the contrary; provided, that,
notwithstanding anything in such lockup agreement or other agreement to the contrary, Helios and Matheson Information Technology
Ltd. concurrently waives its right to sell 170,000 shares of Common Stock as set forth in a written communication from an authorized
signatory of the Holder to the Company and its counsel on September 19, 2017. For the avoidance of doubt, the Company hereby represents
to the Holder that the number of shares of Common Stock, in the aggregate, permitted by the Company to be resold by Helios and
Matheson Information Technology Ltd. prior to the Maturity Date (as defined in the August Notes) (or such earlier date as no August
Notes remain outstanding) is 170,000 shares of Common Stock.

 

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(ii)  The
Holder hereby consents to the Company obtaining Permitted Senior Secured Indebtedness (as defined below), notwithstanding any
prohibition thereof set forth in the August Notes or any other Transaction Document (as defined in the August Securities Purchase
Agreement). The Company and the Holder hereby further agree that such consent, for purposes of the August Notes, shall have the
effect of such Permitted Senior Secured Indebtedness constituting “Permitted Indebtedness” (as defined in the August
Notes) under the August Notes and the Liens securing such Permitted Senior Secured Indebtedness constituting “Permitted
Liens” (as defined in the August Notes) under the August Note. For the purpose of this Agreement, the following definitions
shall apply: (A) “Bank” means any commercial bank having capital and surplus of not less than $250,000,000
in the case of U.S. banks and $100,000,000 (or the U.S. dollar equivalent as of the date of determination) in the case of foreign
banks; and (B) “Permitted Senior Secured Indebtedness” means the principal of (and premium, if any), interest
on, and all fees and other amounts (including, without limitation, any reasonable out-of-pocket costs, enforcement expenses (including
reasonable out-of-pocket legal fees and disbursements), collateral protection expenses and other reimbursement or indemnity obligations
relating thereto) payable by Company and/or its Subsidiaries under or in connection with any credit facility to be entered into
by the Company and/or its Subsidiaries with one or more Banks; provided, however, that so long as any of the August
Notes remain outstanding, (i) the aggregate outstanding amount of such Permitted Senior Secured Indebtedness (taking into account
the maximum amounts which may be advanced under the loan documents evidencing such Permitted Senior Secured Indebtedness) is not
less than $20 million, but does not at any time exceed $100 million (with at least $20 million of such amount being available
for funding immediately without any material condition precedent to such funding, including, without limitation, any financial
covenant condition); (ii) the term of such Permitted Senior Secured Indebtedness is at least two years; (iii) no cash payments
shall be permitted to be due thereunder (and the holder of such Senior Secured Indebtedness shall have no rights to demand any
payments thereunder (including without limitation, upon the occurrence of any default thereunder)); (iv) such Senior Secured Indebtedness
is non-convertible and has no equity-linked security related thereto other than warrants for the purchase of common stock (in
an aggregate amount not to exceed 1,000,000 shares of Common Stock (as adjusted for stock splits, stock dividends, stock combinations,
recapitalizations and similar events)) exercisable at no less than the last closing bid price on the Principal Market preceding
the date a definitive agreement is entered into between the Company and the applicable Bank with respect to such Permitted Senior
Secured Indebtedness, which exercise price and aggregate number of shares of Common Stock issuable thereunder, in each case, shall
not be subject to adjustment, whether upon any issuance of securities at a price below the exercise price of such warrant then
in effect or for any other reason, other than standard adjustments upon the occurrence of any stock split, stock dividend, stock
combination, recapitalization or other similar event; (v) the interest rate (including, any original issuance discount, if any)
of such Senior Secured Indebtedness shall not exceed ten percent (10%) per annum; (vi) the Company shall not be required to comply
with any financial covenants, if any, in the agreement evidencing such Permitted Senior Secured Indebtedness until the first anniversary
of the date of issuance of such Permitted Senior Secured Indebtedness;; and (vii) nothing in any agreement evidencing such (or
relating to) the Permitted Senior Secured Indebtedness shall contravene or otherwise limit or prohibit any term or condition of
this Agreement, the Rights, the August Notes, the August Warrant or any other Transaction Document (as defined in the August Securities
Purchase Agreement) as modified by this Agreement or any other agreement by and between the Company (and/or any of its Subsidiaries)
and the Holder as modified by this Agreement.

 

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(iii)  Effective as of the time of delivery of the Exchange Common Shares to the Holder in accordance with Section 1 above, the Holder
hereby consents to the Company dissolving its subsidiary HMNY Zone Loan LLC.

 

(g)   
Release of Security Interest. Effective as of the time of delivery of the Exchange Common Shares to the Holder in accordance
with Section 1 above, (i) the Holder hereby releases all security interests granted by the Company or any of its Subsidiaries
to the Holder pursuant to the Transaction Documents (as defined in the February Securities Purchase Agreement) and the Transaction
Documents (as defined in the August Securities Purchase Agreement), (ii) each Security Agreement (as defined in each of the February
Securities Purchase Agreement and August Securities Purchase Agreement) are hereby terminated and (iii) the Holder hereby authorizes
the Company to file Termination Statements on Form UCC-3 for the Company and its Subsidiaries with respect to such security interest.

 

(h)  Amendment to Exchange Cap of August Notes. The section of the August Notes titled “Exchange Cap” is hereby
amended to replace the date “September 15, 2017” with “October 31, 2017”.

 

3.  
Representations and Warranties. As of the date hereof:

 

3.1  
Organization and Qualification. Each of the Company and each of its Subsidiaries are entities duly organized and validly
existing and in good standing under the laws of the jurisdiction in which they are formed, and have the requisite power and authority
to own their properties and to carry on their business as now being conducted and as presently proposed to be conducted. Each
of the Company and each of its Subsidiaries is duly qualified as a foreign entity to do business and is in good standing in every
jurisdiction in which its ownership of property or the nature of the business conducted by it makes such qualification necessary,
except to the extent that the failure to be so qualified or be in good standing would not reasonably be expected to have a Material
Adverse Effect (as defined below). 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). Other than the Persons
(as defined below) listed in the SEC Documents, the Company has no Subsidiaries. “Subsidiaries” means any Person
in which the Company, directly or indirectly, (I) owns any of the outstanding capital stock or holds any equity or similar interest
of such Person or (II) controls or operates all or any part of the business, operations or administration of such Person, and
each of the foregoing, is individually referred to herein as a “Subsidiary.” For purposes of this Agreement,
(x) “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 and
(y) “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 or quasi-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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3.2  
Authorization and Binding Obligation. The Company has the requisite power and authority to enter into and perform its obligations
under this Agreement and the Rights and each of the other agreements entered into by the parties hereto in connection with the
transactions contemplated by the Exchange Documents and to consummate the Transaction (including, without limitation, the issuance
of the Rights and the Exchange Common Shares (the “Exchange Primary Securities”) in accordance with the terms
hereof). The execution and delivery of the Exchange Documents by the Company and the consummation by the Company of the transactions
contemplated hereby and thereby, including, without limitation, the issuance of the Exchange Primary Securities and the reservation
for issuance and issuance of Reserved Shares issuable upon exercise of the Rights has been duly authorized by the Company’s Board
of Directors and no further filing, consent, or authorization is required by the Company, its Board of Directors or its stockholders.
This Agreement and the other Exchange Documents have been duly executed and delivered by the Company, and constitute the legal,
valid and binding obligations of the Company, enforceable against the Company in accordance with their 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 laws.

 

3.3  
No Conflict. Except as set forth on Schedule 3.3, the execution, delivery and performance of the Exchange Documents
by the Company and the consummation by the Company of the transactions contemplated hereby and thereby (including, without limitation,
the issuance of the Exchange Primary Securities and the reservation for issuance and issuance of Reserved Shares issuable upon
exercise of the Rights) will not (i) result in a violation of the Certificate of Incorporation (as defined below) or any 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, 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 Nasdaq Capital Market (the “Principal Market”) and
including all applicable federal 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 would not reasonably be expected to have a Material Adverse Effect.

 

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3.4  
No Consents. Neither the Company nor any Subsidiary is required to obtain any consent from, authorization or order of,
or make any filing or registration with (other than the filing with the Securities and Exchange Commission (the “SEC”)
of a Form D with the SEC, any other filings as may be required by any state securities agencies, filing of UCC financing statements
and approval by the Principal Market of a listing of additional shares application in respect of the Exchange Shares as required
by Section 7 hereof), any court, governmental agency 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 Exchange Documents, in each
case, in accordance with the terms hereof or thereof. 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 date hereof, 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 Exchange Documents. Except as disclosed in the SEC Documents, the Company is not in violation of the requirements of the
Principal Market and has no knowledge of any facts or circumstances which would reasonably lead to delisting or suspension of
the Common Stock in the foreseeable future.

 

3.5  
Securities Law Exemptions. Assuming the accuracy of the representations and warranties of the Holder contained herein,
the offer and issuance by the Company of the Exchange Securities is exempt from registration under the Securities Act pursuant
to the exemption provided by Section 4(a)(2) and Rule 144(d)(3)(ii) thereof.

 

3.6  
Status of Notes; Issuance of Exchange Securities. The Exchange Common Shares shall not bear any restrictive legend and
shall be freely tradeable by the Holder pursuant to and in accordance with Rule 144. The issuance of the Rights has been duly
authorized and upon issuance in accordance with the terms of the Exchange Documents shall be validly issued, fully paid and non-assessable
and free from all Liens. Upon issuance in accordance herewith or pursuant to the Rights, as applicable, the Exchange Common Shares
and the Reserved Shares, respectively, when issued, will be validly issued, fully paid and nonassessable and free from all Liens
with respect to the issue thereof, with the holders being entitled to all rights accorded to a holder of Common Stock. By virtue
of Rule 4(a)(2) and Rule 144(d)(3)(ii) under the Securities Act, each of the Exchange Securities will have a Rule 144 holding
period that will be deemed to have commenced as of February 8, 2017, the date of the original issuance of the February Note to
the Holder.

 

3.7  
Transfer Taxes. On the date hereof, all share transfer or other taxes (other than income or similar taxes) which are required
to be paid in connection with the issuance of the Exchange Primary Securities to be exchanged with the Holder 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.

 

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3.8  
SEC Documents; Financial Statements. During the two (2) years prior to the date hereof, the Company has timely filed all
reports, schedules, forms, proxy statements, statements and other documents required to be filed by it with the SEC pursuant to
the reporting requirements of the 1934 Act (all of the foregoing filed prior to the date hereof, including without limitation,
Current Reports on Form 8-K filed by the Company with the SEC whether required to be filed or not (but excluding Item 7.01 thereunder),
and all exhibits and appendices included therein (other than Exhibits 99.1 to Form 8-K) and financial statements, notes and schedules
thereto and documents incorporated by reference therein being hereinafter referred to as the “SEC Documents”).
The Company has delivered or has made available to the Holder 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, 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 generally accepted accounting principles (“GAAP”), consistently applied,
during the periods involved (except (i) as may be otherwise indicated in such financial statements or the notes thereto, or (ii)
in the case of unaudited interim statements, to the extent they may exclude footnotes or may be condensed or summary statements)
and fairly present in all material respects the financial position of the Company as of the dates thereof and the results of its
operations and cash flows for the periods then ended (subject, in the case of unaudited statements, to normal year-end audit adjustments
which will not be material, either individually or in the aggregate). No other information provided by or on behalf of the Company
to the Holder which is not included in the SEC Documents (including, without limitation, information in the disclosure schedules
to 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 notes or any
letter of the independent accountants of the Company with respect thereto) included in the SEC Documents (the “Financial
Statements”), nor is the Company currently aware of facts or circumstances which would require the Company to amend
or restate any of the Financial Statements, in each case, in order for any of the Financials Statements to be in compliance with
GAAP and the rules and regulations of the SEC. The Company has not been informed by its independent accountants that they recommend
that the Company amend or restate any of the Financial Statements or that there is any need for the Company to amend or restate
any of the Financial Statements.

 

3.9  
Absence of Certain Changes. Except as set forth in the SEC Documents, since the date of the Company’s most recent
audited financial statements contained in a Form 10-Q, there has been no material adverse change and no material adverse development
in the business, assets, liabilities, properties, operations (including results thereof), condition (financial or otherwise) or
prospects of the Company or any of its Subsidiaries. Since the date of the Company’s most recent audited financial statements
contained in a Form 10-Q, 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) except as disclosed in the SEC Documents,
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. 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 on the date hereof,
will not be Insolvent.

 

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3.10   
No Undisclosed Events, Liabilities, Developments or Circumstances. Except as set forth in the SEC Documents, no event,
liability, development or circumstance has occurred or exists, or is reasonably expected to exist or occur with respect to the
Company, any of its Subsidiaries or any of their respective businesses, properties, liabilities, prospects, operations (including
results thereof) or condition (financial or otherwise), that (i) would be required to be disclosed by the Company under applicable
securities laws on a registration statement on Form S-1 filed with the SEC relating to an issuance and sale by the Company of
its Common Stock and which has not been publicly announced, (ii) would reasonably expected to have a material adverse effect on
the Holder’s investment hereunder or (iii) would reasonably be expected to have a Material Adverse Effect.

 

3.11   
Conduct of Business; Regulatory Permits. Neither the Company nor any of its Subsidiaries is in violation of any term of
or in default under its Certificate of Incorporation, any certificate of designation, preferences or rights of any other outstanding
series of preferred stock of the Company or any of its Subsidiaries or Bylaws or their organizational charter, certificate of
formation, memorandum of association, articles of association, Certificate of Incorporation or bylaws, respectively. Except as
set forth in the SEC Documents, neither the Company nor any of its Subsidiaries is in violation of any judgment, decree or order
or any statute, ordinance, rule or regulation applicable to the Company or any of its Subsidiaries, and neither the Company nor
any of its Subsidiaries will conduct its business in violation of any of the foregoing, except in all cases for possible violations
which could not, individually or in the aggregate, have a Material Adverse Effect. Except as set forth in the SEC Documents, 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. During the two years prior to the date hereof, (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. There is
no agreement, commitment, judgment, injunction, order or decree binding upon the Company or any of its Subsidiaries or to which
the Company or any of its Subsidiaries is a party which has or would reasonably be expected to have the effect of prohibiting
or materially impairing any business practice of the Company or any of its Subsidiaries, any acquisition of property by the Company
or any of its Subsidiaries or the conduct of business by the Company or any of its Subsidiaries as currently conducted other than
such effects, individually or in the aggregate, which have not had and would not reasonably be expected to have a Material Adverse
Effect on the Company or any of its Subsidiaries.

 

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3.12   
Transactions With Affiliates. Except as set forth in the SEC Documents, no current or former employee, partner, director,
officer or stockholder (direct or indirect) of the Company or its Subsidiaries, or any associate, or, to the knowledge of the
Company, any affiliate of any thereof, or any relative with a relationship no more remote than first cousin of any of the foregoing,
is presently, or has ever been, (i) a party to any transaction with the Company or its Subsidiaries (including any contract, agreement
or other arrangement providing for the furnishing of services by, or rental of real or personal property from, or otherwise requiring
payments to, any such director, officer or stockholder or such associate or affiliate or relative Subsidiaries (other than for
ordinary course services as employees, consultants, officers or directors of the Company or any of its Subsidiaries)) or (ii)
the direct or indirect owner of an interest in any corporation, firm, association or business organization which is a competitor,
supplier or customer of the Company or its Subsidiaries (except for a passive investment (direct or indirect) in less than 5%
of the common stock of a company whose securities are traded on or quoted through an Eligible Market (as defined in the February
Notes)), nor does any such Person receive income from any source other than the Company or its Subsidiaries which relates to the
business of the Company or its Subsidiaries or should properly accrue to the Company or its Subsidiaries. No employee, officer,
stockholder or director of the Company or any of its Subsidiaries or member of his or her immediate family is indebted to the
Company or its Subsidiaries, as the case may be, nor is the Company or any of its Subsidiaries indebted (or committed to make
loans or extend or guarantee credit) to any of them, other than (i) for payment of salary for services rendered, (ii) reimbursement
for reasonable expenses incurred on behalf of the Company, and (iii) for other standard employee benefits made generally available
to all employees or executives (including stock option agreements outstanding under any stock option plan approved by the Board
of Directors of the Company).

 

3.13   
Equity Capitalization.

 

(a)   
Definitions:

 

(i)  
“Common Stock” means (x) the Company’s shares of common stock, $0.01 par value per share, and (y)
any capital stock into which such common stock shall have been changed or any share capital resulting from a reclassification
of such common stock.

 

(ii)  
“Preferred Stock” means (x) the Company’s blank check preferred stock, $0.01 par value per share, the
terms of which may be designated by the board of directors of the Company in a certificate of designations and (y) any capital
stock into which such preferred stock shall have been changed or any share capital resulting from a reclassification of such preferred
stock (other than a conversion of such preferred stock into Common Stock in accordance with the terms of such certificate of designations).

 

    	 	10	 

    

    

 

(b)  
Authorized and Outstanding Capital Stock. As of the date hereof, the authorized capital stock of the Company consists of
(A) One Hundred Million (100,000,000) shares of Common Stock, of which, 9,625,442 are issued and outstanding as of the date hereof,
and (B) Two Million shares of Preferred Stock, none of which are issued and outstanding. No shares of Common Stock are held in
the treasury of the Company. In addition to the foregoing, the board of directors of the Company (and, where applicable, the compensation
committee thereof) have authorized the issuance of the following compensatory awards of Common Stock for which no award agreements
exist as of the date hereof and which have not been issued as of the date hereof unless otherwise specified below: (I) 40,000
S-8 shares per year to each independent director of the Company, which shall be subject to an 18 month lockup agreement, (II)
50,000 unregistered shares to the Company’s Chief Innovation Officer, which shall be subject to an 18 month lockup agreement,
(III) 120,000 S-8 registered shares to a consultant of Zone, which have been issued, (IV) 150,000 S-8 registered shares to an
employee of Zone, which shall be subject to an 18 month lockup agreement, (V) 778,000 unregistered shares to independent contractors
of the Company for services rendered or to be rendered, 728,000 of which shall be subject to an 18 month lockup agreement and
50,000 of which shall be subject to a 24 month lockup agreement, , and (VI) upon completion of the transactions contemplated by
the MoviePass SPA, as amended, 500,000 unregistered shares to each of Ted Farnsworth (Chief Executive Officer and Chairman of
the board) and Muralikrishna Gadiyaram (a non-independent director and consultant of the Company), which shall be subject to an
18 month lockup agreement, and 237,500 unregistered shares to Palladium Capital Advisors, LLC (“Palladium”)
as a financial advisory fee in connection with the transactions contemplated by the MoviePass SPA, as amended, and up to an additional
166,667 unregistered shares to Palladium in the event the Company exercises its right to purchase additional shares of MoviePass
Inc. pursuant to that certain Investment Option Agreement dated as of October 11, 2017, in accordance with the placement agent
agreement between Palladium and the Company.

 

(c)   
Valid Issuance; Available Shares; Affiliates. All of such outstanding shares are duly authorized and have been, or upon
issuance will be, validly issued and are fully paid and nonassessable. Schedule 3.13 sets forth the number of shares of
Common Stock that are (A) reserved for issuance pursuant to Convertible Securities (other than the Rights) and (B) that 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 Common
Stock are “affiliates” without conceding that any such Persons are “affiliates” for purposes of federal
securities laws) of the Company or any of its Subsidiaries.

 

(d)  
Existing Securities; Obligations. Except as disclosed in the SEC Documents: (A) none of the Company’s or any Subsidiary’s
shares, interests or capital stock is subject to preemptive rights or any other similar rights or Liens suffered or permitted
by the Company or any Subsidiary; (B) 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 shares,
interests or 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 shares, interests or 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 shares, interests or
capital stock of the Company or any of its Subsidiaries; (C) 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; (D) 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; (E) there are no securities or instruments containing anti-dilution
or similar provisions that will be triggered by the issuance of the Exchange Securities; and (F) neither the Company nor any Subsidiary
has any stock appreciation rights or “phantom stock” plans or agreements or any similar plan or agreement.

 

    	 	11	 

    

    

 

(e)   
Organizational Documents. The Company has furnished to the Holder true, correct and complete copies of the Company’s
Certificate of Incorporation, as amended and as in effect on the date hereof (the “Certificate of Incorporation”),
and the Company’s bylaws, as amended and as in effect on the date hereof (the “Bylaws”), and the terms
of all Convertible Securities and the material rights of the holders thereof in respect thereto.

 

3.14   
Indebtedness and Other Contracts. Neither the Company nor any of its Subsidiaries, (i) except as disclosed in the SEC Documents
or Schedule 3(s) of the August Securities Purchase Agreement, has any 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,
except as disclosed in the SEC Documents, 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) has any financing statements
securing obligations in any amounts filed in connection with the Company or any of its Subsidiaries, except as disclosed in the
SEC Documents; (iv) except as waived by the Holder under Section 2(b) of this Agreement, 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 (v) 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. 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.

 

3.15   
Litigation There is no action, suit, arbitration, 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 that would reasonably be expected to have a Material Adverse Effect on the Company or
its Subsidiaries, whether of a civil or criminal nature or otherwise, in their capacities as such, except as disclosed in the
SEC Documents or in Schedule 3(t) of the August Securities Purchase Agreement. No director, officer or employee of the Company
or any of its subsidiaries has willfully violated 18 U.S.C. §1519 or engaged in spoliation in reasonable anticipation of
litigation. Without limitation of the foregoing, there has not been, and to the knowledge of the Company, there is not pending
or contemplated, any investigation by the SEC involving the Company, any of its Subsidiaries or any current or former director
or officer of the Company or any of its Subsidiaries. The SEC has not issued any stop order or other order suspending the effectiveness
of any registration statement filed by the Company under the 1933 Act or the 1934 Act. Neither the Company nor any of its Subsidiaries
is subject to any order, writ, judgment, injunction, decree, determination or award of any Governmental Entity.

 

    	 	12	 

    

    

 

3.16   
Disclosure. The Company confirms that neither it nor any other Person acting on its behalf has provided the Holder or its
agents or counsel with any information that constitutes or would 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 Exchange Documents. The Company understands and confirms that the Holder will rely on the foregoing representations
in effecting transactions in securities of the Company. All disclosure provided to the Holder 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. Each press release issued by the Company or any of its Subsidiaries during the twelve (12)
months preceding the date of this Agreement did not at the time of release contain any untrue statement of a material fact or
omit to state a material fact required to be stated therein or necessary in order to make the statements therein, in the light
of the circumstances under which they are made, not misleading. 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 announced or disclosed.

 

4.  
Holder’s Representations and Warranties. As a material inducement to the Company to enter into this Agreement and
consummate the Exchange, the Holder represents, warrants and covenants with and to the Company as follows:

 

4.1  Reliance
on Exemptions. The Holder understands that the Exchange Securities are being offered and exchanged 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 the Holder’s compliance with, the representations, warranties, agreements, acknowledgments
and understandings of the Holder set forth herein and in the Exchange Documents in order to determine the availability of such
exemptions and the eligibility of the Holder to acquire the Exchange Securities.

 

4.2  No
Governmental Review. The Holder 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 Exchange Securities or the fairness or suitability of the
investment in the Exchange Securities nor have such authorities passed upon or endorsed the merits of the offering of the Exchange
Securities.

 

4.3  Validity;
Enforcement. This Agreement and the Exchange Documents to which the Holder is a party have been duly and validly authorized,
executed and delivered on behalf of the Holder and shall constitute the legal, valid and binding obligations of the Holder enforceable
against the Holder in accordance with their respective 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.

 

    	 	13	 

    

    

 

4.5  No
Conflicts. The execution, delivery and performance by the Holder of this Agreement and the Exchange Documents to which the
Holder is a party, and the consummation by the Holder of the transactions contemplated hereby and thereby will not (i) result
in a violation of the organizational documents of the Holder 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 the Holder 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 the Holder, except
in the case of clauses (ii) and (iii) above, for such conflicts, defaults, rights or violations which would not, individually
or in the aggregate, reasonably be expected to have a material adverse effect on the ability of the Holder to perform its obligations
hereunder.

 

4.6  Investment
Risk; Sophistication. The Holder is acquiring the Exchange Securities hereunder in the ordinary course of its business. The
Holder has such knowledge, sophistication, and experience in business and financial matters so as to be capable of evaluation
of the merits and risks of the prospective investment in the Exchange Securities, and has so evaluated the merits and risk of
such investment. The Holder is an “accredited investor” as defined in Regulation D under the Securities Act.

 

4.7  Ownership
of New February Exchange Note. The Holder owns the New February Exchange Note free and clear of any Liens (other than the
obligations pursuant to this Agreement, the Transaction Documents (as defined in the February Securities Purchase Agreement) and
applicable securities laws).

 

5.  
Disclosure of Transaction. The Company shall, on or before 8:30 a.m., New York City Time, on or prior to the first
business day after the date of this Agreement, file a Current Report on Form 8-K describing the terms of the transactions contemplated
hereby in the form required by the 1934 Act and attaching the Exchange Documents, to the extent they are required to be filed
under the 1934 Act, that have not previously been filed with the SEC by the Company (including, without limitation, this Agreement)
as exhibits to such filing (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 up to such time to the Holder
by the Company or any of its Subsidiaries or any of their respective officers, directors, employees or agents. In addition, effective
upon the filing of the 8-K Filing, the Company acknowledges and agrees that any and all confidentiality or similar obligations
under any agreement with respect to the transactions contemplated by the Exchange Documents or as otherwise disclosed in the 8-K
Filing, whether written or oral, between the Company, any of its Subsidiaries or any of their respective officers, directors,
affiliates, employees or agents, on the one hand, and any of the Holder or any of their affiliates, on the other hand, shall terminate.
Neither the Company, its Subsidiaries nor the Holder 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 the Holder, to make a press release or other public disclosure with respect to such transactions (i) in
substantial conformity with the 8-K Filing and contemporaneously therewith or (ii) as is required by applicable law and regulations
(provided that in the case of clause (i) the Holder 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 Holder (which may be granted or withheld
in the Holder’s sole discretion), except as required by applicable law, the Company shall not (and shall cause each of its
Subsidiaries and affiliates to not) disclose the name of the Holder in any filing, announcement, release or otherwise.

 

    	 	14	 

    

    

 

6.  
No Integration. None of the Company, its Subsidiaries, any of their affiliates, or any Person acting on their behalf
shall, directly or indirectly, make any offers or sales of any security (as defined in the Securities Act) or solicit any offers
to buy any security or take any other actions, under circumstances that would require registration of any of the Exchange Securities
under the Securities Act or cause this offering of the Exchange Securities to be integrated with such offering or any prior offerings
by the Company for purposes of Regulation D under the Securities Act.

 

7.  
Listing. The Company shall promptly secure the listing or designation for quotation (as applicable) of all of the
Exchange Shares upon the Principal Market (subject to official notice of issuance) and shall maintain such listing of all the
Exchange Shares from time to time issuable under the terms of the Exchange Documents. The Company shall maintain the Common Stock’s
authorization for quotation on the Principal Market. Neither the Company nor any of its Subsidiaries shall take any action which
would be reasonably expected to result in the delisting or suspension of the Common Stock on the Principal Market. The Company
shall pay all fees and expenses in connection with satisfying its obligations under this Section 7.

 

8.  
Fees. The Company shall promptly reimburse Kelley Drye & Warren, LLP (counsel to the lead investor), on demand,
for all reasonable, documented costs and expenses incurred by it in connection with preparing and delivering this Agreement (including,
without limitation, all reasonable, documented legal fees and disbursements in connection therewith, and due diligence in connection
with the transactions contemplated thereby) in an aggregate amount not to exceed $15,000.

 

9.  
Holding Period. For the purposes of Rule 144, the Company acknowledges that the holding period of (a) the Exchange
Common Shares may be tacked onto the holding period of the New February Exchange Note, and (b) the Rights (and upon exercise of
the Rights, the Reserved Shares) may be tacked onto the holding period of the New February Exchange Note, and the Company agrees
not to take a position contrary to this Section 9. The Company acknowledges and agrees that (assuming the Holder is not an affiliate
of the Company) (i) upon issuance in accordance with the terms hereof, the Exchange Common Shares and, upon exercise of the Rights,
the Reserved Shares, respectively, are, as of the date hereof, eligible to be resold pursuant to Rule 144, (ii) the Company is
not aware of any event reasonably likely to occur that would reasonably be expected to result in the Exchange Shares becoming
ineligible to be resold by the Holder pursuant to Rule 144 and (iii) in connection with any resale of any Exchange Shares pursuant
to Rule 144, the Holder shall solely be required to provide reasonable assurances that such Exchange Shares are eligible for resale,
assignment or transfer under Rule 144, which shall not include an opinion of Holder’s counsel. The Company shall be responsible
for any transfer agent fees or DTC fees or legal fees of the Company’s counsel with respect to the removal of legends, if
any, or issuance of Exchange Shares in accordance herewith.

 

10.  
Blue Sky. The Company shall make all filings and reports relating to the Exchange required under applicable securities
or “Blue Sky” laws of the states of the United States following the date hereof, if any.

 

    	 	15	 

    

    

 

11.  
Right to Issue Shares.

 

11.1   
General. On the date hereof, as par, the Company shall issue to the Holder rights (the “Rights”) to
receive 552,782 shares of Common Stock (collectively, the “Reserved Shares”) to the Holder, which shall have
such terms and conditions as set forth in this Section 11. The Company and the Holder hereby agree that no additional consideration
is payable in connection with the issuance of the Rights or the exercise of the Rights.

 

11.2   
Exercise of Right of Issuance of Shares. Subject to the terms hereof, the exercise of the Rights may be made, in whole
or in part, at any time or times on or after the date hereof by delivery to the Company (or such other office or agency of the
Company as it may designate by notice in writing to the registered Holder at the address of the Holder appearing on the books
of the Company) of a duly executed PDF copy of the Notice of Issuance Form annexed hereto as Exhibit A (each, a
“Notice of Issuance”, and the corresponding date thereof, the “Exercise Date”). Partial
exercises of the Rights resulting in issuances of a portion of the total number of Reserved Shares available thereunder shall
have the effect of lowering the outstanding number of Reserved Shares purchasable thereunder in an amount equal to the applicable
number of Reserved Shares issued. The Holder and the Company shall maintain records showing the number of Reserved Shares issued
and the date of such issuances. The Company shall deliver any objection to any Notice of Issuance Form within one (1) Trading
Day of receipt of such notice. The Holder acknowledges and agrees that, by reason of the provisions of this paragraph, following
each exercise of the Rights issued hereunder and the issuance of a portion of the Reserved Shares pursuant thereto, the number
of Reserved Shares available for issuance pursuant to the Rights issued hereunder at any given time may be less than the amount
stated in the recitals hereof.

 

11.3   
Delivery of Reserved Shares. The Reserved Shares issued hereunder shall be transmitted by the Transfer Agent to the Holder
by crediting the account of the Holder’s prime broker with The Depository Trust Company through its Deposit/Withdrawal at
Custodian system (“DWAC”) if the Company is then a participant in such system and either (A) there is an effective
registration statement permitting the issuance of the Reserved Shares to or resale of the Reserved Shares by the Holder or (B)
the Reserved Shares are eligible for resale by the Holder without volume or manner-of-sale limitations pursuant to Rule 144, and
otherwise by physical delivery to the address specified by the Holder in the Notice of Issuance by the date that is two (2) Trading
Days after the delivery to the Company of the Notice of Issuance (such date, the “Share Delivery Deadline”).
The Reserved Shares shall be deemed to have been issued, and Holder or any other person so designated to be named therein shall
be deemed to have become the holder of record of such shares for all purposes, as of the date the Rights have been exercised.

 

11.4   
Charges, Taxes and Expenses. Issuance of Reserved Shares shall be made without charge to the Holder for any issue or transfer
tax or other incidental expense in respect of the issuance of such certificate, all of which taxes and expenses shall be paid
by the Company, and such certificates shall be issued in the name of the Holder. The Company shall pay all Transfer Agent fees
required for same-day processing of any Notice of Issuance.

 

    	 	16	 

    

    

 

11.5   
Authorized Shares. The Company covenants that, during the period the Rights are outstanding, it will reserve from its authorized
and unissued Common Stock a sufficient number of shares to provide for the issuance of the Reserved Shares upon the exercise of
the Rights. The Company further covenants that its issuance of the Rights shall constitute full authority to its officers who
are charged with the duty of executing stock certificates to execute and issue the necessary certificates for the Reserved Shares
upon the due exercise of the Rights. The Company will take all such reasonable action as may be necessary to assure that such
Reserved Shares may be issued as provided herein without violation of any applicable law or regulation, or of any requirements
of the Principal Market upon which the Common Stock may be listed. The Company covenants that all Reserved Shares which may be
issued upon the exercise of the Rights represented by this Agreement will, upon exercise of the Rights, be duly authorized, validly
issued, fully paid and non-assessable and free from all taxes, Liens and charges created by the Company in respect of the issue
thereof (other than taxes in respect of any transfer occurring contemporaneously with such issue).

 

11.6   
Impairment. Except and to the extent as waived or consented to by the Holder, the Company shall not by any action, including,
without limitation, amending its certificate of incorporation or through any reorganization, transfer of assets, consolidation,
merger, dissolution, issue or sale of securities or any other voluntary action, avoid or seek to avoid the observance or performance
of any of the terms of this Agreement, but will at all times in good faith assist in the carrying out of all such terms and in
the taking of all such actions as may be necessary or appropriate to protect the rights of the Holder as set forth in this Agreement
against impairment. Without limiting the generality of the foregoing, the Company will (i) not increase the par value of any Reserved
Shares above the amount payable therefor upon such exercise immediately prior to such increase in par value, (ii) take all such
action as may be necessary or appropriate in order that the Company may validly and legally issue fully paid and non-assessable
Reserved Shares upon the exercise of the Rights and (iii) use reasonable best efforts to obtain all such authorizations, exemptions
or consents from any public regulatory body having jurisdiction thereof, as may be, necessary to enable the Company to perform
its obligations under this Agreement.

 

11.7   
Authorizations. Before taking any action which would result in an adjustment in the number of Reserved Shares for which
the Rights provides for, the Company shall obtain all such authorizations or exemptions thereof, or consents thereto, as may be
necessary from any public regulatory body or bodies having jurisdiction thereof.

 

    	 	17	 

    

    

 

11.8   
Limitations on Exercise.

 

(a)   
Beneficial Ownership Limitations. The Company shall not effect the exercise of any Rights, and the Holder shall not have
the right to exercise any portion of any Rights pursuant to the terms and conditions of this Agreement and any such exercise shall
be null and void and treated as if never made, to the extent that after giving effect to such exercise, the Holder together with
the other Attribution Parties collectively would beneficially own in excess of 9.9% (the “Beneficial Ownership Limitation”)
of the shares of Common Stock outstanding immediately after giving effect to such exercise. For purposes of the foregoing sentence,
the aggregate number of shares of Common Stock beneficially owned by the Holder and the other Attribution Parties (as defined
in the February Note) shall include the number of shares of Common Stock held by the Holder and all other Attribution Parties
plus the number of shares of Common Stock issuable upon exercise of the Rights issued hereunder with respect to which the determination
of such sentence is being made, but shall exclude shares of Common Stock which would be issuable upon (A) exercise of the remaining,
nonexercised portion of the Rights beneficially owned by the Holder or any of the other Attribution Parties and (B) exercise or
conversion of the unexercised or nonconverted portion of any other securities of the Company (including, without limitation, any
convertible notes or convertible preferred stock or warrants) beneficially owned by the Holder or any other Attribution Party
subject to a limitation on conversion or exercise analogous to the limitation contained in this Section 11.8(a). For purposes
of this Section 11.8(a), beneficial ownership shall be calculated in accordance with Section 13(d) of the 1934 Act (as defined
in the February Note). For purposes of determining the number of outstanding shares of Common Stock the Holder may acquire upon
the exercise of the Rights without exceeding the Beneficial Ownership Limitation, the Holder may rely on the number of outstanding
shares of Common Stock as reflected in (x) the Company’s most recent Annual Report on Form 10-K, Quarterly Report on Form
10-Q, Current Report on Form 8-K or other public filing with the SEC, as the case may be, (y) a more recent public announcement
by the Company or (z) any other written notice by the Company or the Transfer Agent, if any, setting forth the number of shares
of Common Stock outstanding (the “Reported Outstanding Share Number”). If the Company receives a Notice of
Issuance from the Holder at a time when the actual number of outstanding shares of Common Stock is less than the Reported Outstanding
Share Number, the Company shall notify the Holder in writing of the number of shares of Common Stock then outstanding and, to
the extent that such Notice of Issuance would otherwise cause the Holder’s beneficial ownership, as determined pursuant
to this Section 11.8(a), to exceed the Beneficial Ownership Limitation, the Holder must notify the Company of a reduced number
of shares of Common Stock to be purchased pursuant to such Notice of Issuance. For any reason at any time, upon the written or
oral request of the Holder, the Company shall within one (1) Business Day confirm orally and in writing or by electronic mail
to the Holder the number of shares of Common Stock then outstanding. In any case, the number of outstanding shares of Common Stock
shall be determined after giving effect to the conversion or exercise of securities of the Company, including the Rights, by the
Holder and any other Attribution Party since the date as of which the Reported Outstanding Share Number was reported. In the event
that the issuance of shares of Common Stock to the Holder upon exercise of the Rights results in the Holder and the other Attribution
Parties being deemed to beneficially own, in the aggregate, more than the Beneficial Ownership Limitation of the number of outstanding
shares of Common Stock (as determined under Section 13(d) of the 1934 Act), the number of shares so issued by which the Holder’s
and the other Attribution Parties’ aggregate beneficial ownership exceeds the Beneficial Ownership Limitation (the “Excess
Shares”) shall be deemed null and void and shall be cancelled ab initio, and the Holder shall not have the power to
vote or to transfer the Excess Shares. Upon delivery of a written notice to the Company, the Holder may from time to time increase
(with such increase not effective until the sixty-first (61st) day after delivery of such notice) or decrease the Beneficial
Ownership Limitation to any other percentage not in excess of 9.9% as specified in such notice; provided that (i) any such increase
in the Beneficial Ownership Limitation will not be effective until the sixty-first (61st) day after such notice is
delivered to the Company and (ii) any such increase or decrease will apply only to the Holder and the other Attribution Parties
and not to any other holder of Rights that is not an Attribution Party of the Holder. For purposes of clarity, the shares of Common
Stock issuable pursuant to the terms of the Rights hereunder in excess of the Beneficial Ownership Limitation shall not be deemed
to be beneficially owned by the Holder for any purpose including for purposes of Section 13(d) or Rule 16a-1(a)(1) of the 1934
Act. No prior inability to exercise any Rights pursuant to this paragraph shall have any effect on the applicability of the provisions
of this paragraph with respect to any subsequent determination of exercisability. The provisions of this paragraph shall be construed
and implemented in a manner otherwise than in strict conformity with the terms of this Section 11.8(a) to the extent necessary
to correct this paragraph (or any portion of this paragraph) which may be defective or inconsistent with the intended beneficial
ownership limitation contained in this Section 11.8(a) or to make changes or supplements necessary or desirable to properly give
effect to such limitation. The limitation contained in this paragraph may not be waived and shall apply to a successor holder
of Rights.

 

    	 	18	 

    

    

 

(b)  
Exchange Cap. At any time prior to the time the Company shall have obtained stockholder approval for the issuance of shares
of Common Stock pursuant to the August Notes and the August Warrants pursuant to rules related to the aggregate of offerings under
NASDAQ Listing Rule 5635(d) (the “Stockholder Approval”), the Company shall not issue any shares of Common
Stock upon exercise of any Rights if the issuance of such shares of Common Stock (taken together with any shares of Common Stock
issuable upon exercise of the Warrants (as defined in the August Notes) (the “August Warrants”) or upon conversion
of the August Notes or otherwise pursuant to the terms of the August Notes or upon conversion of the senior convertible note in
the aggregate principal amount of $697,000 issued to the Holder on October 1, 2017 (the “October 2017 Note”)
would exceed the aggregate number of shares of Common Stock which the Company may issue upon exercise or conversion of the Rights,
the August Notes, the August Warrants, the October 2017 Note or otherwise pursuant to the terms of the Rights, the August Notes,
the August Warrants or the October 2017 Note without breaching the Company’s obligations, if any, under the rules or regulations
of the Principal Market (the number of shares which may be issued without violating such rules and regulations (with the aggregate
number of shares of Common Stock outstanding for the purposes of such calculation measured as of August 14, 2017), including rules
related to the aggregate of offerings under NASDAQ Listing Rule 5635(d), as applicable, the “Pre-August Approval Exchange
Cap”), except that such limitation shall not apply in the event that the Company (A) obtains the approval of its stockholders
as required by the applicable rules of the Principal Market for issuances of shares of Common Stock upon exercise of the Rights
in excess of the Pre-August Approval Exchange Cap or (B) obtains a written opinion from outside counsel to the Company that such
approval is not required, which opinion shall be reasonably satisfactory to the Holder. The Company represents and warrants to
the Holder that the Pre-August Approval Exchange Cap is 1,416,025 shares of Common Stock (or 1,183,691 shares of Common Stock
after giving effect to the issuance of 232,334 shares of Common Stock upon conversion in full of the October 2017 Note), without
giving effect to the issuance of the Exchange Securities. At any time on or after the time the Company shall have obtained the
Stockholder Approval, the Company shall not issue any shares of Common Stock upon exercise of any Rights if the issuance of such
shares of Common Stock would exceed the aggregate number of shares of Common Stock which the Company may issue upon exercise or
conversion of the Rights or otherwise pursuant to the terms of the Rights without breaching the Company’s obligations, if
any, under the rules or regulations of the Principal Market (the number of shares which may be issued without violating such rules
and regulations (with the aggregate number of shares of Common Stock outstanding for the purposes of such calculation measured
as of October 20, 2017), including rules related to the aggregate of offerings under NASDAQ Listing Rule 5635(d), as applicable,
the “Post-August Approval Exchange Cap”), except that such limitation shall not apply in the event that the
Company (A) obtains the approval of its stockholders as required by the applicable rules of the Principal Market for issuances
of shares of Common Stock upon exercise of the Rights in excess of such amount or (B) obtains a written opinion from outside counsel
to the Company that such approval is not required, which opinion shall be reasonably satisfactory to the Holder. The Company represents
and warrants to the Holder that the Post-August Approval Exchange Cap is 1,925,087 (or 1,692,753 shares of Common Stock after
giving effect to the issuance of 232,334 shares of Common Stock upon conversion in full of the October 2017 Note), without giving
effect to the issuance of the Exchange Securities.

 

11.9   
Closing of Books. The Company will not close its stockholder books or records in any manner which prevents the timely exercise
of the Rights, pursuant to the terms hereof.

 

11.10  
Stock Dividends and Splits. If the Company, at any time while the Rights exist: (i) pays a stock dividend or otherwise
makes a distribution or distributions on shares of its Common Stock or any other equity or equity equivalent securities payable
in shares of Common Stock, (ii) subdivides outstanding shares of Common Stock into a larger number of shares, (iii) combines (including
by way of reverse stock split) outstanding shares of Common Stock into a smaller number of shares, or (iv) issues by reclassification
of shares of the Common Stock any shares of capital stock of the Company, then in each case the number of Reserved Shares issuable
upon exercise of the Rights shall be proportionately adjusted. Any adjustment made pursuant to this Section 11.10 shall become
effective immediately upon the record date for the determination of stockholders entitled to receive such dividend or distribution
(provided that if the declaration of such dividend or distribution is rescinded or otherwise cancelled, then such adjustment shall
be reversed upon notice to the Holder of the termination of such proposed declaration or distribution as to any unexercised portion
of the Rights at the time of such rescission or cancellation) and shall become effective immediately after the effective date
in the case of a subdivision, combination or re-classification.

 

    	 	19	 

    

    

 

11.11  
Compensation for Buy-In on Failure to Timely Deliver Reserved Shares. If the Company shall fail, for any reason or for
no reason, on or prior to the applicable Share Delivery Deadline, either (x) if the Transfer Agent is not participating in the
DTC Fast Automated Securities Transfer Program, to issue and deliver to the Holder (or its designee) a certificate for the number
of shares of Common Stock to which the Holder is entitled and register such shares of Common Stock on the Company’s share
register or, (y) if the Transfer Agent is participating in the DTC Fast Automated Securities Transfer Program, to credit the balance
account of the Holder or the Holder’s designee with DTC for such number of shares of Common Stock to which the Holder is
entitled upon the Holder’s exercise of a Right (a “Delivery Failure”), then, in addition to all other
remedies available to the Holder, (1) the Company shall pay in cash to the Holder on each day after such Share Delivery Deadline
that the issuance of such shares of Common Stock is not timely effected an amount equal to 2% of the product of (A) the sum of
the number of shares of Common Stock not issued to the Holder on or prior to the Share Delivery Deadline and to which the Holder
is entitled, multiplied by (B) any trading price of the Common Stock selected by the Holder in writing as in effect at any time
during the period beginning on the applicable Exercise Date and ending on the applicable Share Delivery Deadline and (2) the Holder,
upon written notice to the Company, may void its Notice of Issuance with respect to, and retain or have returned (as the case
may be) any portion of the rights that has not been exercised pursuant to such Notice of Issuance, provided that the voiding of
a Notice of Issuance shall not affect the Company’s obligations to make any payments which have accrued prior to the date
of such notice pursuant to this Section 11.11 or otherwise. In addition to the foregoing, if on or prior to the Share Delivery
Deadline either (A) if the Transfer Agent is not participating in the DTC Fast Automated Securities Transfer Program, the Company
shall fail to issue and deliver to the Holder (or its designee) a certificate and register such shares of Common Stock on the
Company’s share register or, (B) if the Transfer Agent is participating in the DTC Fast Automated Securities Transfer Program,
the Transfer Agent shall fail to credit the balance account of the Holder or the Holder’s designee with DTC for the number
of shares of Common Stock to which the Holder is entitled upon the Holder’s exercise of Rights hereunder or pursuant to
the Company’s obligation pursuant to clause (II) below, and if on or after such Share Delivery Deadline the Holder purchases
(in an open market transaction or otherwise) shares of Common Stock corresponding to all or any portion of the number of shares
of Common Stock issuable upon such exercise that the Holder is entitled to receive from the Company and has not received from
the Company in connection with such Delivery Failure (a “Buy-In”), then, in addition to all other remedies
available to the Holder, the Company shall, within two (2) Business Days after receipt of the Holder’s request and in the
Holder’s discretion, either: (I) pay cash to the Holder in an amount equal to the Holder’s total purchase price (including
brokerage commissions and other out-of-pocket expenses, if any) for the shares of Common Stock so purchased (including, without
limitation, by any other Person in respect, or on behalf, of the Holder) (the “Buy-In Price”), at which point
the Company’s obligation to so issue and deliver such certificate (and to issue such shares of Common Stock) or credit the
balance account of such Holder or such Holder’s designee, as applicable, with DTC for the number of shares of Common Stock
to which the Holder is entitled upon the Holder’s exercise of Rights hereunder (as the case may be) (and to issue such shares
of Common Stock) shall terminate, or (II) promptly honor its obligation to so issue and deliver to the Holder a certificate or
certificates representing such shares of Common Stock or credit the balance account of such Holder or such Holder’s designee,
as applicable, with DTC for the number of shares of Common Stock to which the Holder is entitled upon the Holder’s exercise
of Rights hereunder (as the case may be) and pay cash to the Holder in an amount equal to the excess (if any) of the Buy-In Price
over the product of (x) such number of shares of Common Stock multiplied by (y) the lowest Closing Sale Price (as defined in the
February Note) of the Common Stock on any Trading Day during the period commencing on the date of the applicable Notice of Issuance
and ending on the date of such issuance and payment under this clause (II) (the “Buy-In Payment Amount”). Nothing
shall limit the Holder’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) upon the exercise
of the Rights as required pursuant to the terms hereof. Notwithstanding anything herein to the contrary, with respect to any given
Delivery Failure, this Section 11.11 shall not apply to the Holder to the extent the Company has already paid such amounts in
full to such Holder with respect to such Delivery Failure, as applicable, pursuant to the analogous sections of the February Securities
Purchase Agreement.

 

    	 	20	 

    

    

 

11.12  
Subsequent Rights Offerings. If Section 11.10 above does not apply, if at any time the Company grants, issues or sells
any Convertible Securities, Options or rights to purchase stock, warrants, securities or other property pro rata to the record
Holders of any class of shares of Common Stock (the “Purchase Rights”), then the Holder will be entitled to
acquire, upon the terms applicable to such Purchase Rights, the aggregate Purchase Rights which the Holder could have acquired
if the Holder had held the number of shares of Common Stock acquirable upon complete exercise of the Rights (without regard to
any limitations on exercise hereof, including without limitation, the Beneficial Ownership Limitation) immediately before the
date on which a record is taken for the grant, issuance or sale of such Purchase Rights, or, if no such record is taken, the date
as of which the record Holders of shares of Common Stock are to be determined for the grant, issue or sale of such Purchase Rights
(provided, however, to the extent that the Holder’s right to participate in any such Purchase Right would result in the
Holder exceeding the Beneficial Ownership Limitation, then the Holder shall not be entitled to participate in such Purchase Right
to such extent (or beneficial ownership of such shares of Common Stock as a result of such Purchase Right to such extent) and
such Purchase Right to such extent shall be held in abeyance for the Holder until such time, if ever, as its right thereto would
not result in the Holder exceeding the Beneficial Ownership Limitation).

 

11.13  
Fundamental Transaction. If, at any time while the Rights remain outstanding, a Fundamental Transaction (as defined in
the February Note) occurs, then, upon any subsequent exercise of the Rights, the Holder shall have the right to receive, for each
Reserved Share that would have been issuable upon such exercise immediately prior to the occurrence of such Fundamental Transaction,
at the option of the Holder (without regard to any limitation in Section 11.8 on the exercise of the Right), the number of shares
of Common Stock of the successor or acquiring corporation or of the Company, if it is the surviving corporation, and any additional
consideration receivable as a result of such Fundamental Transaction by a Holder of one share of Common Stock. Upon the occurrence
of any such Fundamental Transaction, the any successor entity in a Fundamental Transaction in which the Company is not the survivor
(the “Successor Entity”) shall succeed to, and be substituted for (so that from and after the date of such
Fundamental Transaction, the provisions of this Agreement and the other Transaction Documents referring to the “Company”
shall refer instead to the Successor Entity), and may exercise every right and power of the Company and shall assume all of the
obligations of the Company under this Agreement and the other Transaction Documents with the same effect as if such Successor
Entity had been named as the Company herein.

 

11.14  
Notice to Allow Exercise of Right. If at any time while the Rights remain outstanding, (A) the Company shall declare a
dividend (or any other distribution in whatever form) on the Common Stock, (B) the Company shall declare a special nonrecurring
cash dividend on or a redemption of the Common Stock, (C) the Company shall authorize the granting to all Holders of the Common
Stock rights or warrants to subscribe for or purchase any shares of capital stock of any class or of any rights, (D) the approval
of any stockholders of the Company shall be required in connection with any reclassification of the Common Stock, any consolidation
or merger to which the Company is a party, any sale or transfer of all or substantially all of the assets of the Company, or any
compulsory share exchange whereby the Common Stock is converted into other securities, cash or property, or (E) the Company shall
authorize the voluntary or involuntary dissolution, liquidation or winding up of the affairs of the Company, then, in each case,
the Company shall cause to be mailed to the Holder at least 10 calendar days prior to the applicable record or effective date
hereinafter specified, a notice stating (x) the date on which a record is to be taken for the purpose of such dividend, distribution,
redemption, rights or warrants, or if a record is not to be taken, the date as of which the Holders of the Common Stock of record
to be entitled to such dividend, distributions, redemption, rights or warrants are to be determined or (y) the date on which such
reclassification, consolidation, merger, sale, transfer or share exchange is expected to become effective or close, and the date
as of which it is expected that Holders of the Common Stock of record shall be entitled to exchange their shares of the Common
Stock for securities, cash or other property deliverable upon such reclassification, consolidation, merger, sale, transfer or
share exchange; provided that the failure to mail such notice or any defect therein or in the mailing thereof shall not affect
the validity of the corporate action required to be specified in such notice. To the extent that any notice provided hereunder
constitutes, or contains, material, non-public information regarding the Company or any of the Subsidiaries, the Company shall
simultaneously file such notice with the Commission pursuant to a Current Report on Form 8-K. The Holder shall remain entitled
to exercise the Rights during the period commencing on the date of such notice to the effective date of the event triggering such
notice except as may otherwise be expressly set forth herein.

 

    	 	21	 

    

    

 

11.15  
No Rights as Stockholder Until Exercise. Each Right does not entitle the Holder to any voting rights, dividends or other
rights as a stockholder of the Company prior to the exercise hereof.

 

11.16  
Transferability. Subject to compliance with any applicable securities laws, the Rights and all rights hereunder (including,
without limitation, any registration rights) are transferable, in whole or in part, upon written assignment substantially in the
form attached hereto duly executed by the Holder or its agent or attorney and funds sufficient to pay any transfer taxes payable
upon the making of such transfer of this Agreement delivered to the principal office of the Company or its designated agent. Upon
such assignment and, if required, such payment, the Company shall enter into a new agreement with the assignee or assignees, as
applicable, and this Agreement shall promptly be cancelled. Any Right, if properly assigned in accordance herewith, may be exercised
by a new Holder for the issue of Reserved Shares without having a new agreement executed.

 

12.  
Miscellaneous Provisions. Section 9 of the August Securities Purchase Agreements (as amended hereby) is hereby incorporated
by reference herein, mutatis mutandis.

 

[The
remainder of the page is intentionally left blank]

 

    	 	22	 

    

    

 

IN
WITNESS WHEREOF, Holders and the Company have executed this Agreement as of the date set forth on the first page of this Agreement.

 

	 	COMPANY:
	 	 
	 	HELIOS AND MATHESON ANALYTICS INC.
	 	 	 
	 	By:	/s/ Theodore Farnsworth
	 	 	Name: Theodore Farnsworth
	 	 	Title:   Chief Executive Officer

 

    	 	23	 

    

    

 

IN
WITNESS WHEREOF, Holders and the Company have executed this Agreement as of the date set forth on the first page of this Agreement.

 

	 	HOLDER:
	 	 
	 	HUDSON BAY MASTER FUND LTD
	 	By:	Hudson Bay Capital Management LP, its investment manager
	 	 	 
	 	By:	/s/ George Antonopoulos
	 	 	Name: George Antonopoulos
	 	 	Title:   Authorized Signatory

 

    	 	24	 

    

    

 

EXHIBIT
A

 

NOTICE
OF ISSUANCE

 

The
undersigned holder hereby exercises the rights (the “Rights”) to receive _________________ of the shares of
Common Stock (the “Reserved Shares”) of Helios and Matheson Analytics Inc., a Delaware corporation with offices
located at Empire State Building, 350 5th Avenue, New York, New York 10118 (the “Company”), established pursuant
to that certain Third Amendment and Exchange Agreement, dated October 23, 2017, by and between the Company and the investor signatory
thereto (the “Exchange Agreement”). Capitalized terms used herein and not otherwise defined shall have the
respective meanings set forth in the Exchange Agreement.

 

The
Company shall deliver to Holder, or its designee or agent as specified below, __________ Reserved Shares in accordance with the
terms of the Rights. Delivery shall be made to Holder, or for its benefit, as follows:

 

☐     Check
here if requesting delivery as a certificate to the following name and to the following address:

	Issue
    to:	 
	 	 
	 	 

 

☐     Check here if requesting delivery by Deposit/Withdrawal at Custodian as follows:

 

	DTC
    Participant:	 
	DTC Number:	 
	Account Number:	 

 

Date: _____________ __, __

 

________________________

Name of Registered Holder

 

	By:	     	 
		Name:	 
		Title:	 

 

	Tax ID:	 	 
	 	 	 
	Facsimile:	 	 
	 	 	 
	E-mail Address:Exhibit

Exhibit 10.20

VOTING AGREEMENT
by and between
ICYNENE U.S. HOLDING, CORP.
and
RICHARD KURTZ
Dated as of October 4, 2017

VOTING AGREEMENT

This VOTING AGREEMENT (this “Agreement”) is entered into as of October 4, 2017, between Icynene U.S. Holding, Corp., a Delaware corporation (“Parent”) and the undersigned (the “Stockholder”).

WHEREAS, as of the date hereof, the Stockholder is the sole record and beneficial owner of and has the sole power to vote (or to direct the voting of) the number of shares of Common Stock, par value $0.01 per share (the “Common Shares”) of Lapolla Industries, Inc., a Delaware corporation, set forth opposite the Stockholder’s name on Schedule I hereto (such Common Shares, together with any other shares of the Company (“Shares”) the voting power of which is acquired by such Stockholder during the period from the date hereof through the date on which this Agreement is terminated in accordance with its terms (such period, the “Voting Period”), are collectively referred to herein as the “Subject Shares”);
WHEREAS, the Company, Parent, Blaze Merger Sub Inc., a Delaware corporation and a wholly-owned subsidiary of Parent (“Merger Sub”) are concurrently entering into an agreement and plan of merger, dated as of the date hereof (as amended from time to time, the “Merger Agreement”), pursuant to which Merger Sub shall be merged with and into the Company, with the Company continuing as the surviving corporation thereafter (the “Merger”);
WHEREAS, the adoption of the Merger Agreement requires the written consent or affirmative vote of the holders of a majority in voting power of the Common Shares, entitled to vote thereon; and
WHEREAS, as an inducement to Parent’s willingness to enter into the Merger Agreement and consummate the transactions contemplated thereby, transactions from which the Stockholder believes it will derive substantial benefits through its ownership interest in the Company, the Stockholder is entering into this Agreement.
NOW, THEREFORE, in consideration of the foregoing and the respective representations, warranties, covenants and agreements set forth herein, the parties agree as follows:
ARTICLE I
DEFINITIONS
SECTION 1.1    Capitalized Terms.  For purposes of this Agreement, capitalized terms used and not defined herein shall have the respective meanings ascribed to them in the Merger Agreement.
ARTICLE II
VOTING AGREEMENT AND IRREVOCABLE PROXY
SECTION 2.1    Agreement to Vote.  
(a)    The Stockholder hereby agrees that, immediately following the execution and delivery of this Agreement and the Merger Agreement, such Stockholders will execute and deliver to the Company a written consent in the form of Exhibit A hereto (a “Written Consent”). The Written Consent shall be coupled with an interest and shall be irrevocable.
(b)    The Stockholder hereby agrees that, during the Voting Period, and at any duly called meeting of the stockholders of the Company (or any adjournment or postponement thereof), or in any other circumstances (including action by written consent of stockholders in lieu of a meeting) upon which a vote, adoption or other approval or consent with respect to the adoption of the Merger Agreement or the approval of the Merger and any of the transactions contemplated thereby is sought, the Stockholder shall, if a meeting is held, appear at the meeting, in person or by proxy, and shall provide a written consent or vote (or cause to be voted), in person or by proxy, all its Subject Shares, in each case (i) in favor of (A) any proposal to adopt and approve or reapprove the Merger Agreement and the transactions contemplated thereby and (B) waiving any notice that may have been or may be required relating to the Merger or any of the other transactions contemplated by the Merger Agreement or this Agreement, and (ii) against (X) any action or agreement that would reasonably be expected to prevent or materially delay the consummation of the Merger or any other transactions contemplated by this Agreement or the Merger Agreement, (Y) any Acquisition Proposal or Acquisition Inquiry and any action in furtherance of any such Acquisition Proposal or Acquisition Inquiry and (Z) any action, proposal, transaction or agreement that, to the knowledge of the Stockholder, would reasonably be expected to result in a material breach of any covenant, representation or warranty or any other obligation or agreement of the Stockholder or the Company under this Agreement or the Merger Agreement.

-1-

SECTION 2.2    Grant of Irrevocable Proxy.  The Stockholder hereby appoints Parent and any designee of Parent, and each of them individually, as the Stockholder’s proxy, with full power of substitution and resubstitution, to vote, including by executing written consents, during the Voting Period with respect to any and all of the Subject Shares on the matters and in the manner specified in Section 2.1; provided, however, that the Stockholders’ grant of the proxy contemplated by this Section 2.2 shall be effective with respect to Section 2.1(a) if, and only if, the Stockholder does not deliver the Written Consent immediately following the execution and delivery of this Agreement. The Stockholder shall take all further action or execute such other instruments as may be necessary to effectuate the intent of any such proxy.  The Stockholder affirms that the irrevocable proxy given by it hereby with respect to the Merger Agreement and the transactions contemplated thereby is given to Parent by the Stockholder to secure the performance of the obligations of the Stockholder under this Agreement.  It is agreed that Parent (and its officers on behalf of Parent) will use the irrevocable proxy that is granted by the Stockholder hereby only in accordance with applicable Law and that, to the extent Parent (and its officers on behalf of Parent) uses such irrevocable proxy, it will only vote (or sign written consents in respect of) the Subject Shares subject to such irrevocable proxy with respect to the matters specified in, and in accordance with the provisions of, Section 2.1.

SECTION 2.3    Nature of Irrevocable Proxy.  The proxy granted pursuant to Section 2.2 to Parent by the Stockholder shall be irrevocable during the term of this Agreement, shall be deemed to be coupled with an interest sufficient in law to support an irrevocable proxy and shall revoke any and all prior proxies or powers of attorney granted by the Stockholder and no subsequent proxy or power of attorney shall be given or written consent executed (and if given or executed, shall not be effective) by the Stockholder with respect thereto.  The proxy that may be granted hereunder shall terminate upon the termination of this Agreement, but shall survive the death or incapacity of the Stockholder and any obligation of the Stockholder under this Agreement shall be binding upon the heirs, personal representatives and successors of the Stockholder.

SECTION 2.4    Additional Consideration.  If the Merger is consummated, the Stockholder will not receive, whether under this Agreement or otherwise, any consideration additional to or in lieu of the Merger Consideration in respect of the acquisition of any Common Shares held or controlled by it or its Affiliates.  If the Merger is not consummated, neither the Stockholder nor any of its Affiliates will receive a break-fee or similar payment, whether under this Agreement or otherwise.
ARTICLE III
COVENANTS
SECTION 3.1    Subject Shares.

(a)The Stockholder agrees that (i) from the date hereof until the Effective Time, it shall not, and shall not commit or agree to, without Parent’s prior written consent, directly or indirectly, whether by merger, consolidation or otherwise, offer for sale, sell (including short sales), transfer, tender, pledge, encumber, assign or otherwise dispose of (including by gift or by operation of law) (collectively, a “Transfer”), or enter into any contract, option, derivative, hedging or other agreement or arrangement or understanding (including any profit-sharing arrangement) with respect to, or consent to or permit, a Transfer of, any or all of the Subject Shares or any interest therein; and (ii) during the Voting Period, it shall not, and shall not commit or agree to, without Parent’s prior written consent, (A) grant any proxies or powers of attorney with respect to any or all of the Subject Shares or agree to vote (or sign written consents in respect of) the Subject Shares on any matter or divest itself of any voting rights in the Subject Shares, (B) take any action that would have the effect of preventing or disabling the Stockholder from performing its obligations under this Agreement, or (C) exercise any of its Options.  The Stockholder agrees that any Transfer of Subject Shares not permitted hereby shall be null and void and that any such prohibited Transfer shall be enjoined. If any involuntary transfer of any Subject Shares covered hereby shall occur (including, but not limited to, a sale by the Stockholder’s trustee in bankruptcy, or a sale to a purchaser at any creditor’s or court sale), the transferee (which term, as used herein, shall include any and all transferees and subsequent transferees of the initial transferee) shall take and hold such Subject Shares subject to all of the restrictions, liabilities and rights under this Agreement, which shall continue in full force and effect.

(b)In the event of a stock dividend or distribution, or any change in the Subject Shares by reason of any stock dividend or distribution, split-up, recapitalization, combination, conversion, exchange of shares or the like, the term “Subject Shares” shall be deemed to refer to and include the Subject Shares as well as all such stock dividends and distributions and any securities into which or for which any or all of the Subject Shares may be changed or exchanged or which are received in such transaction.  The Stockholder further agrees that, in the event Stockholder purchases or otherwise acquires beneficial or record ownership of or an interest in, or acquires the right to vote or share in the voting of, any additional Shares, in each case after the execution of this Agreement, the Stockholder shall deliver promptly to Parent written notice of such event, which notice shall state the number of additional Shares so acquired.  The Stockholder agrees that any such additional Shares shall be subject to the terms of this Agreement, including all covenants, agreements, obligations, representations and warranties set forth herein as if those additional shares were owned by the Stockholder on the date of this Agreement.
-2-

SECTION 3.2    Stockholder’s Capacity.  All agreements and understandings made herein shall be made solely in the Stockholder’s capacity as a holder of the Subject Shares and not in any other capacity.  

SECTION 3.3    Other Offers. Except to the extent the Company is permitted to take such action pursuant to the Merger Agreement, neither the Stockholder (in the Stockholder’s capacity as such), shall, nor shall the Stockholder authorize or permit any of its Representatives to, take any of the following actions: (i) solicit, initiate, encourage or knowingly facilitate an Acquisition Proposal or Acquisition Inquiry, (ii) furnish any non-public information regarding the Company to any Person in connection with or in response to an Acquisition Proposal or Acquisition Inquiry, (iii) engage in, enter into, continue or otherwise participate in any discussions or negotiations with any Person with respect to, or otherwise knowingly cooperate in any way with any person (or any representative thereof) with respect to, any Acquisition Proposal or Acquisition Inquiry, (iv) approve, endorse or recommend or propose to approve, endorse or recommend, any Acquisition Proposal or (v) enter into any letter of intent or similar document or any Contract contemplating, approving, endorsing or recommending or proposing to approve, endorse or recommend, any Acquisition Transaction or accepting any Acquisition Proposal; provided, however, that none of the foregoing restrictions shall apply to the Stockholder’s and its Representatives’ interactions with Parent, Sub and their respective subsidiaries and representatives.  Without limiting the foregoing, it is understood that any violation of the foregoing restrictions by any Representatives of the Stockholder shall be deemed to be a breach of this Section 3.3 by the Stockholder.  The Stockholder shall, and shall use reasonable best efforts to cause its Representatives to, immediately cease any and all existing discussions or negotiations with any Persons conducted heretofore with respect to any Acquisition Proposal or Acquisition Inquiry.  

SECTION 3.4    Communications. During the Voting Period, the Stockholder shall not, and shall use its reasonable best efforts to cause its Representatives, if any, not to, directly or indirectly, make any press release, public announcement or other public communication that criticizes or disparages this Agreement or the Merger Agreement or any of the transactions contemplated hereby and thereby, without the prior written consent of Parent, provided that the foregoing shall not limit or affect any actions taken by the Stockholder (or any affiliated officer or director of the Company) that would be permitted to be taken by the Company pursuant to the Merger Agreement.  The Stockholder hereby (i) consents to and authorizes the publication and disclosure by Parent, Merger Sub and the Company (including in any publicly filed documents relating to the Merger or any transaction contemplated by the Merger Agreement) of: (a) the Stockholder’s identity; (b) the Stockholder’s beneficial ownership of the Subject Shares; and (c) the nature of the Stockholder’s commitments, arrangements and understandings under this Agreement, and any other information that Parent, Merger Sub or the Company determines to be necessary in any SEC disclosure document in connection with the Merger or any transactions contemplated by the Merger Agreement and (ii) agrees as promptly as practicable to notify Parent, Merger Sub and the Company of any required corrections with respect to any written information supplied by the Stockholder specifically for use in any such disclosure document.

SECTION 3.5    Voting Trusts.  The Stockholder agrees that it will not, nor will it permit any entity under its control to, deposit any of its Subject Shares in a voting trust or subject any of its Subject Shares to any arrangement with respect to the voting of such Subject Shares other than as provided herein.

SECTION 3.6    Waiver of Appraisal Rights.  The Stockholder hereby irrevocably and unconditionally waives, and agrees not to assert, exercise or perfect (or attempt to exercise, assert or perfect) any rights of appraisal or rights to dissent from the Merger or quasi-appraisal rights that it may at any time have under applicable Law, including Section 262 of the DGCL.  The Stockholder agrees not to commence, join in, facilitate, assist or encourage, and agrees to take all actions necessary to opt out of any class in any class action with respect to, any claim, derivative or otherwise, against Parent, the Company or any of their respective successors, directors or officers, (a) challenging the validity, binding nature or enforceability of, or seeking to enjoin the operation of, this Agreement or the Merger Agreement, or (b) alleging a breach of any fiduciary duty of any Person in connection with the evaluation, negotiation, entry into or consummation of the Merger Agreement.

ARTICLE IV
REPRESENTATIONS AND WARRANTIES OF STOCKHOLDER
The Stockholder hereby represents and warrants to Parent as follows:
SECTION 4.1    Due Authorization, etc.  The Stockholder is a natural person. The Stockholder has all necessary power and authority to execute and deliver this Agreement and to consummate the transactions contemplated hereby. The execution and delivery of this Agreement and the consummation of the transactions contemplated hereby by the Stockholder have been duly authorized by all necessary action on the part of the Stockholder and no other proceedings on the part of the Stockholder are necessary to authorize this Agreement, or to consummate the transactions contemplated hereby. This Agreement
has been duly executed and delivered by the Stockholder and (assuming the due authorization, execution and delivery by Parent)

-3-

constitutes a valid and binding obligation of the Stockholder, enforceable against the Stockholder in accordance with its terms, except to the extent enforcement is limited by bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and similar Laws of general applicability relating to or affecting creditors’ rights and by general equitable principles.

SECTION 4.2    Ownership of Shares.  Schedule I hereto sets forth opposite the Stockholder’s name the Shares over which the Stockholder has sole record and beneficial ownership as of the date hereof. As of the date hereof, the Stockholder is the lawful owner of the Shares denoted as being owned by the Stockholder on Schedule I hereto, has the sole power to vote or cause to be voted such Shares and, except as set forth on Schedule 4.2 hereof, has the sole power to dispose of or cause to be disposed such Shares.  Except as set forth on Schedule 4.2 hereof, the Stockholder has good and valid title to the Shares denoted as being owned by the Stockholder on Schedule I hereto, free and clear of any and all pledges, mortgages, liens, charges, proxies, voting agreements, encumbrances, adverse claims, options, security interests and demands of any nature or kind whatsoever, other than (i) those created by this Agreement, or (ii) those existing under applicable securities laws. 

SECTION 4.3    No Conflicts.  (a) No filing with any Governmental Entity, and no authorization, consent or approval of any other person is necessary for the execution of this Agreement by the Stockholder and (b) none of the execution and delivery of this Agreement by the Stockholder, the consummation by the Stockholder of the transactions contemplated hereby or compliance by the Stockholder with any of the provisions hereof shall (i) conflict with or result in any breach of the organizational documents of the Stockholder, (ii) result in, or give rise to, a violation or breach of or a default under any of the terms of any material contract, understanding, agreement or other instrument or obligation to which the Stockholder is a party or by which the Stockholder or any of the Subject Shares or its assets may be bound or (iii) violate any applicable order, writ, injunction, decree, judgment, statute, rule or regulation, except for any of the foregoing as would not reasonably be expected to impair the Stockholder’s ability to perform its obligations under this Agreement.

SECTION 4.4    Finder’s Fees.  No investment banker, broker, finder or other intermediary is entitled to a fee or commission from Parent, Merger Sub or the Company in respect of this Agreement based upon any Contract made by or on behalf of the Stockholder, solely in the Stockholder’s capacity as a stockholder of the Company.

SECTION 4.5    No Litigation.  As of the date of this Agreement, there is no Proceeding pending or, to the knowledge of the Stockholder, threatened against the Stockholder that would reasonably be expected to impair the ability of the Stockholder to perform its obligations hereunder or consummate the transactions contemplated hereby.

ARTICLE V
REPRESENTATIONS AND WARRANTIES OF PARENT
Parent hereby represents and warrants to the Stockholder as follows:
SECTION 5.1    Due Organization, etc.  Parent is a Delaware corporation duly organized, validly existing and in good standing under the Laws of the State of Delaware. Parent has all necessary corporate power and authority to execute and deliver this Agreement and to consummate the transactions contemplated hereby.  The execution and delivery of this Agreement and the consummation of the transactions contemplated hereby by Parent have been duly authorized by all necessary action on the part of Parent and no other proceedings on the part of Parent are necessary to authorize this Agreement, or to consummate the transactions contemplated hereby.  This Agreement has been duly executed and delivered by Parent and (assuming the due authorization, execution and delivery by the Stockholder) constitutes a valid and binding obligation of Parent, enforceable against Parent in accordance with its terms, except to the extent enforcement is limited by bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and similar Laws of general applicability relating to or affecting creditors’ rights and by general equitable principles.

SECTION 5.2    No Conflicts.  (a) No filing with any Governmental Entity, and no authorization, consent or approval of any other person is necessary for the execution of this Agreement by Parent and (b) none of the execution and delivery of this Agreement by Parent, the consummation by Parent of the transactions contemplated hereby or compliance by Parent with any of the provisions hereof shall (i) conflict with or result in any breach of the organizational documents of Parent, (ii) result in, or give rise to, a violation or breach of or a default under any of the terms of any material contract, understanding, agreement or other instrument or obligation to which Parent is a party or by which Parent or any of its assets may be bound or (iii) violate any applicable order, writ, injunction, decree, judgment, statute, rule or regulation, except for any of the foregoing as would not reasonably be expected to materially impair Parent’s ability to perform its obligations under this Agreement.

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SECTION 5.3    Voting Agreements.  In connection with the Merger, certain stockholders of the Company have executed a voting agreement with Parent which contains substantially similar terms and provisions as those contained in this Agreement.  

ARTICLE VI
TERMINATION
SECTION 6.1    Termination.  This Agreement shall automatically terminate, and neither Parent nor the Stockholder shall have any rights or obligations hereunder and this Agreement shall become null and void and have no effect upon the earliest to occur of:  (a) the mutual written consent of Parent and the Stockholder; (b) the Effective Time; (c) the termination of the Merger Agreement in accordance with its terms; or (d) the time of any material modification, waiver or amendment of the Merger Agreement that reduces or changes the form of the Merger Consideration pursuant to the Merger Agreement as in effect on the date hereof or which is otherwise adverse to the Stockholder in any material respect, in each case, without the prior written consent of the Stockholder.  The parties acknowledge that upon termination of this Agreement as permitted under and in accordance with the terms of this Article VI, no party to this Agreement shall have the right to recover any claim with respect to any losses suffered by such party in connection with such termination, except that, subject to Section 7.12, the termination of this Agreement shall not relieve either party to this Agreement from liability for such party’s intentional breach of any terms of this Agreement.  Notwithstanding anything to the contrary herein, the provisions of this Article VI and Article VII shall survive the termination of this Agreement.

ARTICLE VII
MISCELLANEOUS
SECTION 7.1    Further Actions.  Subject to the terms and conditions set forth in this Agreement, the Stockholder agrees to take any all actions and to do all things reasonably necessary or appropriate to effectuate this Agreement.

SECTION 7.2    Fees and Expenses.  Except as otherwise specifically provided herein, each party shall bear its own expenses in connection with this Agreement and the transactions contemplated hereby.  

SECTION 7.3    Amendments, Waivers, etc.  This Agreement may not be amended except by an instrument in writing signed by the parties hereto and specifically referencing this Agreement. At any time prior to Effective Time, any party hereto may (a) extend the time for the performance of any of the obligations or other acts of the other parties hereto, (b) waive any inaccuracies in the representations and warranties contained herein or in any document delivered pursuant hereto and (c) subject to the requirements of applicable Law, waive compliance with any of the agreements or conditions contained herein.  Any such extension or waiver shall be valid if set forth in an instrument in writing signed by the party or parties to be bound thereby and specifically referencing this Agreement.  The failure of any party to assert any rights or remedies shall not constitute a waiver of such rights or remedies.

SECTION 7.4    Notices.  Any notice, request, instruction or other document required to be given hereunder shall be sufficient if in writing, and sent by confirmed facsimile or electronic mail transmission of a “portable document format” (“.pdf”) attachment (provided that any notice received by facsimile or electronic mail transmission or otherwise at the addressee’s location on any business day after 5:00 p.m. (addressee’s local time) shall be deemed to have been received at 9:00 a.m. (addressee’s local time) on the next business day), by reliable overnight delivery service (with proof of service), hand delivery or certified or registered mail (return receipt requested and first-class postage prepaid), addressed as follows:
If to Parent, to
Icynene Corp.
c/o Icynene U.S. Holding Corp.
6747 Campobello Road
Mississauga, Ontario
L5N 2L7
Attention:  Mark Sarvary
Facsimile:  (905) 363-0103

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with a copy to (which shall not constitute notice):
Willkie Farr & Gallagher LLP
787 Seventh Avenue
New York, New York 10019
Attention: Neil W. Townsend
Thomas Mark
Facsimile:  (212) 728-8111

If to the Stockholder:

Kamson Corporation
270 Sylvan Ave.
Englewood Cliffs, NJ 07632
Attention:  Richard Kurtz
Email: rkurtz@kamson.com

or to such other person or address as any party shall specify by written notice so given, and such notice shall be deemed to have been delivered as of the date so telecommunicated, personally delivered or mailed.  Any party to this Agreement may notify any other party of any changes to the address or any of the other details specified in this paragraph; provided that such notification shall only be effective on the date specified in such notice or five (5) business days after the notice is given, whichever is later.  Rejection or other refusal to accept or the inability to deliver because of changed address of which no notice was given shall be deemed to be receipt of the notice as of the date of such rejection, refusal or inability to deliver.
SECTION 7.5    Headings.  Headings of the Articles and Sections of this Agreement are for convenience of the parties only, and shall be given no substantive or interpretive effect whatsoever.

SECTION 7.6    Severability.  The provisions of this Agreement shall be deemed severable and the invalidity or unenforceability of any provision shall not affect the validity or enforceability of the other provisions hereof.  If any provision of this Agreement, or the application of such provision to any person or any circumstance, is invalid or unenforceable (a) a suitable and equitable provision shall be substituted therefor in order to carry out, so far as may be valid and enforceable, the intent and purpose of such invalid or unenforceable provision and (b) the remainder of this Agreement and the application of such provision to other persons or circumstances shall not be affected by such invalidity or unenforceability, nor shall such invalidity or unenforceability affect the validity or enforceability of such provision, or the application of such provision, in any other jurisdiction.

SECTION 7.7    Entire Agreement; Assignment.  This Agreement constitutes the entire agreement, and supersedes all other prior agreements and understandings, both written and oral, between the parties, or any of them, with respect to the subject matter hereof.  Neither this Agreement nor any of the rights, interests or obligations hereunder shall be assigned by any of the parties hereto (whether by operation of law or otherwise) without the prior written consent of the other parties, except that without consent Parent may assign all or any of its rights and obligations hereunder to any of its Affiliates that assume the rights and obligations of Parent under the Merger Agreement.  Subject to the preceding two sentences, this Agreement will be binding upon, inure to the benefit of and be enforceable by the parties hereto and their respective successors and permitted assigns.  Notwithstanding anything to the contrary set forth herein, the Stockholder agrees that this Agreement and the obligations hereunder shall be binding upon any Person to which record or beneficial ownership of the Stockholder’s Subject Shares shall pass, whether by operation or law or otherwise, including the Stockholder’s heirs, guardians, administrators or successors and assigns, and the Stockholder agrees to take all actions necessary to effect the foregoing.  

SECTION 7.8    Parties in Interest.  This Agreement shall be binding upon and inure solely to the benefit of each party hereto, and nothing in this Agreement, express or implied, is intended to or shall confer upon any other Person any rights, benefits or remedies of any nature whatsoever under or by reason of this Agreement, including, without limitation, the right to rely upon the representations and warranties set forth herein.  The representations and warranties in this Agreement are the product of negotiations among the parties hereto and are for the sole benefit of the parties hereto.  Notwithstanding the foregoing, the Company shall be an express third party beneficiary solely of the provisions of Section 3.4 hereof.  Any inaccuracies in such representations and warranties are subject to waiver by the parties hereto in accordance with Section 7.3 without notice or liability to any other person.  In some instances, the representations and warranties in this Agreement may represent an allocation among the parties hereto of risks associated with particular matters regardless of the knowledge of any of the parties hereto.  Consequently, 

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persons other than the parties hereto may not rely upon the representations and warranties in this Agreement as characterizations of actual facts or circumstances as of the date of this Agreement or as of any other date (except the Company solely with respect to Section 3.4 hereof).

SECTION 7.9    Interpretation.  When a reference is made in this Agreement to an Article or Section, such reference shall be to an Article or Section of this Agreement unless otherwise indicated.  Whenever the words “include,” “includes” or “including” are used in this Agreement, they shall be deemed to be followed by the words “without limitation.” The words “hereof,” “herein” and “hereunder” and words of similar import when used in this Agreement shall refer to this Agreement as a whole and not to any particular provision of this Agreement.  All terms defined in this Agreement shall have the defined meanings when used in any certificate or other document made or delivered pursuant thereto unless otherwise defined therein.  The definitions contained in this Agreement are applicable to the singular as well as the plural forms of such terms and to the masculine as well as to the feminine and neuter genders of such term.  Any agreement, instrument or statute defined or referred to herein or in any agreement or instrument that is referred to herein means such agreement, instrument or statute as from time to time amended, modified or supplemented in accordance with the terms hereof, including (in the case of agreements or instruments) by waiver or consent and (in the case of statutes) by succession of comparable successor statutes and references to all attachments thereto and instruments incorporated therein.  References to a person are also to its permitted successors and assigns.  Each of the parties has participated in the drafting and negotiation of this Agreement.  If an ambiguity or question of intent or interpretation arises, this Agreement must be construed as if drafted by all the parties and no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of authorship of any of the provisions of this Agreement.  References to dollars of “US$” are to the official currency of the United States of America. This Agreement shall be construed without regard to any presumption or rule requiring construction or interpretation against the party drafting or causing any instrument to be drafted.

SECTION 7.10    Governing Law.  THIS AGREEMENT AND ALL QUESTIONS RELATING TO THE INTERPRETATION OR ENFORCEMENT OF THIS AGREEMENT SHALL BE DEEMED TO BE MADE IN AND IN ALL RESPECTS SHALL BE INTERPRETED, CONSTRUED AND GOVERNED BY AND IN ACCORDANCE WITH THE LAW OF THE STATE OF DELAWARE WITHOUT REGARD TO THE CONFLICTS OF LAW PRINCIPLES THEREOF TO THE EXTENT THAT SUCH PRINCIPLES WOULD DIRECT A MATTER TO ANOTHER JURISDICTION.

SECTION 7.11    Specific Performance.  The Stockholder acknowledges that any breach of this Agreement would give rise to irreparable harm for which monetary damages would not be an adequate remedy and each of the Company and Parent shall be entitled to a decree of specific performance and to temporary, preliminary and permanent injunctive relief to prevent breaches or threatened breaches of any of the provisions of this Agreement, without the necessity of proving the inadequacy of monetary damages as a remedy, which shall be the sole and exclusive remedy for any such breach.

SECTION 7.12    Submission to Jurisdiction.  The parties hereby irrevocably submit to the exclusive personal jurisdiction of the Court of Chancery of the State of Delaware, or, if the Chancery Court declines jurisdiction, the United States District Court for the District of Delaware or the courts of the State of Delaware solely in respect of the interpretation and enforcement of the provisions of this Agreement and hereby waive, and agree not to assert, as a defense in any action, suit or proceeding for the interpretation or enforcement hereof, that it is not subject thereto or that such action, suit or proceeding may not be brought or is not maintainable in said courts or that the venue thereof may not be appropriate or that this Agreement may not be enforced in or by such courts, and the parties hereto irrevocably agree that all claims relating to such action, suit or proceeding shall be heard and determined in such courts.  The parties hereby consent to and grant any such court jurisdiction over the person of such parties and, to the extent permitted by law, over the subject matter of such dispute and agree that mailing of process or other papers in connection with any such action or proceeding in the manner provided in Section 7.4 or in such other manner as may be permitted by Law shall be valid and sufficient service thereof.

SECTION 7.13    Waiver of Jury Trial.  EACH PARTY ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY WHICH MAY ARISE UNDER THIS AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES, AND THEREFORE EACH SUCH PARTY HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT SUCH PARTY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT.  EACH PARTY CERTIFIES AND ACKNOWLEDGES THAT (i) NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER, (ii) EACH PARTY UNDERSTANDS AND HAS CONSIDERED THE IMPLICATIONS OF THIS WAIVER, (iii) EACH PARTY MAKES THIS WAIVER VOLUNTARILY, AND (iv) EACH PARTY HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 7.13.

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SECTION 7.14    Counterparts. This Agreement may be executed in two or more counterparts (including by facsimile transmission or other means of electronic transmission, such as by electronic mail in “pdf” form), each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument, and shall become effective when one or more counterparts have been signed by each of the parties and delivered (by facsimile or otherwise) to the other parties.

SECTION 7.15    Relationship of the Parties. This Agreement has been negotiated on an arm’s length basis between the parties and is not intended to create a partnership, joint venture or agency relationship between the parties.

IN WITNESS WHEREOF, Parent and the Stockholder have caused this Agreement to be duly executed as of the day and year first above written.

	
		
	ICYNENE U.S. HOLDING, CORP.

	By:
	/s/  Greg Long

	 
	Name:  Greg Long

	 
	Title:  Vice President and Secretary

	
		
	By:
	/s/  Richard Kurtz

	 
	Richard Kurtz

-8-

Exhibit A
Written Consent
WRITTEN CONSENT
IN LIEU OF A 
MEETING OF STOCKHOLDERS
OF
LAPOLLA INDUSTRIES, INC.
_____________________________

 October 4, 2017
_______________________________

The undersigned (the “Stockholders”), being the holders of a majority of the issued and outstanding shares of capital stock of Lapolla Industries, Inc., a Delaware corporation, (the “Company”), acting pursuant to Section 228(a) and Section 251 of the General Corporation Law of the State of Delaware (the “DGCL”), do hereby irrevocably consent to the adoption of the following resolutions in lieu of a meeting:
MERGER AGREEMENT
WHEREAS, the Company has entered into an Agreement and Plan of Merger, dated as of October 4, 2017 (the “Merger Agreement”), by and among the Company, Icynene U.S. Holding Corp. (“Parent”) and Blaze Merger Sub Inc. (“Sub”), a copy of which has been provided to the undersigned Stockholders and is attached hereto as Exhibit A (capitalized terms used herein without definition shall have the respective meaning ascribed to them in the Merger Agreement); 
WHEREAS, pursuant to the Merger Agreement, Sub will be merged with and into the Company (the “Merger”), with the Company continuing as the surviving corporation of the Merger, upon the terms and subject to the conditions set forth in the Merger Agreement; 
WHEREAS, pursuant to the Merger Agreement, at the effective time of the Merger (the “Effective Time”), (i) each share of  common stock of the Company (“Company Common Stock”) issued and outstanding immediately prior to the Effective Time (other than (x) shares of Company Common Stock that are directly owned by the Company, Parent, Sub or any other wholly owned Subsidiary of Parent and (y) any Dissenting Company Shares) will be converted into the right to receive $1.03 in cash, without interest (the “Merger Consideration”), and (ii) each outstanding Option will be canceled and converted into a right to receive an amount in cash, without interest, equal to the excess, if any, of the Merger Consideration over the per share exercise price of such Option, without interest;
WHEREAS, the board of directors of the Company (the “Board”) has received the opinion of Houlihan Lokey Capital, Inc., dated October 4, 2017, addressed to the Board, to the effect that, as of such date, the Merger Consideration to be received by holders of the Company Common Stock pursuant to the terms and subject to the conditions set forth in the Merger Agreement is fair, from a financial point of view to such holders;
WHEREAS, the Board, by unanimous vote of all of the directors, has (i) determined that it is in the best interests of the Company and its stockholders, and declared it advisable, to enter into the Merger Agreement and to consummate the transactions contemplated thereby, including the Merger, (ii) approved the Merger Agreement and the execution, delivery and performance thereof and the consummation of the transactions contemplated thereby, including the Merger, upon the terms and subject to the conditions set forth in the Merger Agreement, and (iii) subject to Section 7.3 of the Merger Agreement, resolved to recommend the adoption of the Merger Agreement and the approval of the transactions contemplated thereby, including the Merger, by the holders of the shares of the Company Common Stock, upon the terms and subject to the conditions set forth therein;
WHEREAS, the affirmative vote in favor of the adoption of the Merger Agreement by a majority of the votes entitled to be cast thereon by the stockholders of the Company is required pursuant to Section 251 of the DGCL; and

A-1

WHEREAS, pursuant to the Merger Agreement and in accordance with Section 251(d) of the DGCL, the Board has the power to terminate the Merger Agreement under certain circumstances after the Company Stockholder Approval is obtained by this written consent, upon the terms and subject to the conditions set forth in the Merger Agreement; now, therefore, be it

RESOLVED, that the Merger Agreement and the transactions contemplated thereby, including the Merger, are hereby adopted and approved in all respects, and that each of the undersigned Stockholders hereby votes all of the shares of capital stock of the Company held by such Stockholder and entitled to vote thereon in favor of the adoption and approval of the Merger Agreement and the transactions contemplated thereby, including the Merger; provided, however, that this written consent shall be of no further force or effect following any termination of the Merger Agreement in accordance with its terms (including, without limitation, pursuant to Section 9.1(f) thereof);
FURTHER RESOLVED, that each of the undersigned Stockholders hereby waives any and all irregularities of notice, with respect to the time and place of meeting, and consents to the transaction of all business represented by this written consent; and
FURTHER RESOLVED, that this written consent may be executed in two or more counterparts, each of which when so executed shall be an original, and all such counterparts shall together constitute one and the same instrument, and signatures to this written consent transmitted by facsimile or PDF copy shall be deemed original signatures for all purposes, and such execution and transmission shall be considered valid, binding and effective for all purposes.
IN WITNESS WHEREOF, the undersigned has executed this consent on the dates below.

	
		
	 

	RICHARD KURTZ

	 
	 

	Dated:  October 4, 2017

	
		
	JARE INVESTMENT LLC

	By:
	 

	Name:
	Joseph Spadaccini

	Title:
	Member

	 
	 

	Dated:  October 4, 2017

	
		
	 

	JAY C. NADEL

	 
	 

	Dated:  October 4, 2017

A-2

Schedule I
Ownership of Common Shares
	
		
	Name and Address of Stockholder
	Number of Common Shares

	Richard Kurtz
c/o Kamson Corporation
270 Sylvan Ave.
Englewood Cliffs, NJ 07632
	70,974,360

Schedule 4.2

Pursuant to that certain Pledge Agreement, dated as of July 14, 2017, by Richard Kurtz in favor of Connectone Bank (the “Lender”), the Stockholder has pledged 52,738,290 Common Shares to the Lender to secure the Stockholder’s obligations under that certain Loan Agreement, dated as of July 14, 2017, between the Stockholder and the Lender.  The Stockholder retains the right to vote all such pledged Common Shares.  As of the date hereof, there is no Event of Default (as such term is defined in such Pledge Agreement) and the Stockholder has not received any notice that there is an Event of Default.

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