Document:

PLACEMENT
AGENCY AGREEMENT

 

October
11, 2018

 

MagneGas
Applied Technology Solutions, Inc.

11885
44th Street N.

Clearwater,
Florida 33762

 

Ladies
and Gentlemen:

 

This
letter (the “Agreement”) constitutes the agreement among Maxim Group LLC (“Maxim” or the
“Placement Agent”) and MagneGas Applied Technology Solutions, Inc. (the “Company”), that
the Placement Agent shall serve as the exclusive placement agent for the Company, on a “reasonable best efforts” basis,
in connection with the proposed placement (the “Placement”) of shares (the “Shares”) of
the Company’s common stock, par value $0.001 per share (the “Common Stock”) and warrants to purchase
shares of Common Stock (the “Warrants”). The Shares, the Warrants and the shares of Common Stock underlying
the Warrants (the “Warrant Shares”) are hereinafter referred to collectively as the “Securities”).
The Securities are being offered pursuant to the registration statement on Form S-3 (File No. 333-207928)(the “Registration
Statement”, and the prospectus contained therein, the “Prospectus”) initially filed by the Company
with the Securities and Exchange Commission (the “SEC”) under the Securities Act of 1933, as amended (the “Securities
Act”), on November 11, 2015 and declared effective on June 15, 2016 (the “Effective Date”), and the
prospectus supplement filed pursuant to Rule 424(b)(5) promulgated under the Securities Act and dated October 11, 2018 (the “Prospectus
Supplement”), and the Warrants are being offered in a simultaneous private placement pursuant to Section 4(a)(2) under
the Securities Act. The terms of the Placement and the Securities shall be mutually agreed upon by the Company and the purchasers
(each, a “Purchaser” and collectively, the “Purchasers”) and nothing herein shall be construed
to provide either that the Placement Agent has the power or authority to bind the Company or any Purchaser or an obligation for
the Company to issue any Securities or complete the Placement. The Placement Agent will give the Company advanced notice of any
prospective Purchaser(s) it identifies for participation in the Placement and the Company shall have the exclusive right to accept
or deny such prospective Purchaser(s) for participation in the Placement. This Agreement and the documents executed and delivered
by the Company and the Purchasers in connection with the Placement shall be collectively referred to herein as the “Transaction
Documents.” The date of the closing of the Placement (the “Closing”) shall be referred to herein
as the “Closing Date.” The Company expressly acknowledges and agrees that the Placement Agent’s obligations
hereunder are on a reasonable best efforts basis only and that the execution of this Agreement does not constitute a commitment
by the Placement Agent to purchase the Securities and does not ensure the successful placement of the Securities or any portion
thereof or the success of the Placement Agent with respect to securing any other financing on behalf of the Company. The Placement
Agent may retain other brokers or dealers to act as sub-agents or selected-dealers on their behalf in connection with the Placement.
The sale of the Securities to any Purchaser will be evidenced by a purchase agreement (the “Securities Purchase Agreement”)
between the Company and such Purchasers in a form reasonably acceptable to the Company and the Placement Agent. Capitalized terms
that are not otherwise defined herein have the meanings given to such terms in the Securities Purchase Agreement. Prior to the
signing of any Securities Purchase Agreement, officers of the Company will be reasonably available to answer inquiries from prospective
Purchasers.

 

Notwithstanding
anything herein to the contrary, in the event the Placement Agent determines that any of the terms provided for hereunder shall
not comply with a Financial Industry Regulatory Authority (“FINRA”) rule, including but not limited to FINRA
Rule 5110, then the Company shall agree to amend this Agreement in writing upon the request of the Placement Agent to comply with
any such rules; provided that any such amendments shall not provide for terms that are less favorable to the Company.

 

    	 

    	 

    

 

Section
1  COMPENSATION. As compensation
for the services provided by the Placement Agent hereunder, the Company agrees as follows:

 

(A)
To pay to the Placement Agent a cash fee equal to: 6.0% of the aggregate gross proceeds raised in the Placement, which shall be
paid at the Closing of the Placement from the gross proceeds of the Securities sold and shall be paid directly to the Placement
Agent.

 

(B)
Subject to compliance with FINRA Rule 5110(f)(2)(D), the Company also agrees to reimburse the Placement Agent for all out-of-pocket
expenses, including without limitation the reasonable fees, costs and disbursements of legal counsel and all reasonable travel
and other out-of-pocket expenses in an amount not to exceed $50,000.

 

Section
2  REPRESENTATIONS AND WARRANTIES.
The Company represents and warrants to the Placement Agent as of the date of this letter and as of the Closing, as follows:

 

(A)
The Company meets the requirements for use of Form S-3 for registration under the Securities Act, including the transaction requirements
set forth in General Instruction I.B.6 of that form. The Registration Statement (including any Rule 462(b) Registration Statement)
has been declared effective by the SEC and no stop order suspending the effectiveness of the Registration Statement has been issued
and no proceeding for that purpose has been instituted or is pending or, to the knowledge of the Company, is threatened or contemplated
by the SEC or any other governmental entity. No order preventing or suspending the use of any prospectus has been issued and no
proceeding for that purpose has been instituted or is pending or, to the knowledge of the Company, is threatened or contemplated
by the SEC or any other governmental entity. The Company has complied with any request on the part of the SEC or other governmental
entity for additional information.

 

(B)
At the Effective Date, at the date hereof, and at Closing, each of the Registration Statement and any amendment or supplement
thereto complied, complies and will comply in all material respects with the requirements of the Securities Act and the published
rules and regulations thereunder (the “Rules”), and did not, does not and will not contain an untrue statement
of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein
not misleading. Neither the Prospectus nor any amendment or supplement thereto, at the respective dates of the Prospectus or such
amendment or supplement, at the respective times that the Prospectus and any such amendment or supplement were issued, and at
Closing, included, includes or will include an untrue statement of a material fact or omitted, omits or will omit to state a material
fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which
they were made, not misleading.

 

(C)
Each Prospectus filed as part of the Registration Statement as originally filed or as part of any amendment thereto, or filed
pursuant to Rule 424 under the Securities Act, complied when so filed in all material respects with the Securities Act and the
Rules, and the Prospectus delivered to the Placement Agent for use in connection with this offering was identical to the electronically
transmitted copies thereof filed with the SEC pursuant to EDGAR, except to the extent permitted by Regulation S-T.

 

(D)
At Closing, the Prospectus and the Prospectus Supplement (the “General Disclosure Package”), did not include
an untrue statement of a material fact or omit to state any material fact necessary in order to make the statements therein, in
the light of the circumstances under which they were made, not misleading.

 

    	 

    	 

    

 

(E)
(i) At the Effective Date, (ii) at the earliest time after the Effective Date that the Company or another offering participant
made a bona fide offer (within the meaning of Rule 164(h)(2) of the Rules) of the Securities and (iii) at the execution of this
Agreement (with such time of execution being used as the determination date for the purpose of this clause (iii)), the Company
was not and is not an “ineligible issuer,” as defined in Rule 405 of the Securities Act (“Rule 405”),
without taking account of any determination by the SEC pursuant to Rule 405 that it is not necessary that the Company be considered
an ineligible issuer.

 

(F)
The representations and warranties in this subsection shall not apply to statements in or omissions from the Registration Statement
or the General Disclosure Package or any amendment or supplement thereto made in reliance upon and in conformity with information
furnished to the Company in writing by the Placement Agent specifically for use therein; provided that the Company acknowledges
that the only information furnished in writing by the Placement Agent for use therein consists solely of the disclosure contained
in the “Plan of Distribution” section of the Prospectus (the “Placement Agent Information”).

 

(G)
The documents incorporated or deemed to be incorporated by reference in the Registration Statement or the General Disclosure Package,
at the time they were or hereafter are filed with the SEC, complied and will comply in all material respects with the requirements
of the Exchange Act and the rules and regulations promulgated thereunder, as applicable, and when read together with the other
information in the Registration Statement or the General Disclosure Package, as the case may be, (i) at the Effective Date, (ii)
at the earlier of the time the Prospectus was first used and the date and time of the first contract of sale of the Securities,
and (iii) at Closing, did not and will not contain an untrue statement of a material fact or omit to state a material fact required
to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made,
not misleading.

 

(H)
The consolidated financial statements of the Company and its subsidiaries (including all notes and schedules thereto) included
or incorporated by reference in the Registration Statement or the General Disclosure Package present fairly the financial position
of such entities at the dates indicated and the statement of operations, stockholders’ equity and cash flows of, or such
other permitted financial statements for, such entities for the periods specified, and related schedules and notes thereto, and
the unaudited financial information filed with the SEC as part of the Registration Statement, have been prepared in conformity
with generally accepted accounting principles, consistently applied throughout the periods involved, except in the case of unaudited
financials which are subject to normal year-end adjustments and do not contain certain footnotes. Any pro forma financial statements
and the related notes thereto included in the Registration Statement and the General Disclosure Package present fairly the information
shown therein, have been prepared in all material respects in accordance with the SEC’s rules and guidelines with respect
to pro forma financial statements and have been properly compiled on the bases described therein, and subject to such rules and
guidelines, the Company believes the assumptions used in the preparation thereof are reasonable and the adjustments used therein
are appropriate to give effect to the transactions and circumstances referred to therein. Except as included therein, no historical
or pro forma financial statements or supporting schedules are required to be included or incorporated by reference in the Registration
Statement or the General Disclosure Package under the Securities Act or the Rules promulgated thereunder.

 

(I)
Marcum LLP (the “Auditor”), is and was during the period of its review of any of the Company’s consolidated
financial statements, an independent public accounting firm as required by the Securities Act, the Rules and the rules and regulations
of the Public Company Accounting Oversight Board.

 

    	 

    	 

    

 

(J)
The interactive data in eXtensible Business Reporting Language included or incorporated by reference in the Registration Statement
fairly presents the information called for in all material respects and has been prepared in accordance with the SEC’s rules
and guidelines applicable thereto.

 

(K)
The Company has been duly organized and is validly existing as a corporation in good standing under the laws of the State of Delaware
and has corporate power and authority to own, lease, and operate its properties and to conduct its business as described in the
Registration Statement and the General Disclosure Package and to enter into and perform its obligations under this Agreement and
the various other agreements required hereunder and thereunder to which it is a party; and the Company is duly qualified as a
foreign corporation to transact business and is in good standing in each other jurisdiction in which such qualification is required,
whether by reason of the ownership or leasing of property or the conduct of business, except for such jurisdictions where the
failure to so qualify individually or in the aggregate would not have a material adverse effect on the assets, properties, condition,
financial or otherwise, or in the results of operations, business affairs or business prospects (as described in the Registration
Statement and the General Disclosure Package) of the Company and its subsidiaries considered as a whole (a “Material
Adverse Effect”).

 

(L)
Each subsidiary of the Company has been duly organized and is validly existing in good standing under the laws of the jurisdiction
of its incorporation or organization, has corporate or similar power and authority to own, lease and operate its properties and
to conduct its business as described in the Registration Statement and the General Disclosure Package and is duly qualified to
transact business and is in good standing in each jurisdiction in which such qualification is required, whether by reason of the
ownership or leasing of property or the conduct of business, except where the failure to so qualify would not have a Material
Adverse Effect. Except as otherwise disclosed in the Registration Statement or the General Disclosure Package, all the issued
and outstanding capital stock or equity interests of each subsidiary has been duly authorized and validly issued, is fully paid
and non-assessable and is owned by the Company, directly or through subsidiaries, free and clear of any material security interest,
mortgage, pledge, lien, encumbrance, claim or equity. None of the outstanding shares of capital stock or equity interests of any
subsidiary was issued in violation of any preemptive or similar rights of any securityholder of such subsidiary.

 

(M)
The authorized, issued and outstanding shares of capital stock of the Company are as set forth in the Registration Statement or
the General Disclosure Package. The outstanding shares of capital stock of the Company have been duly authorized and validly issued
and are fully paid and non-assessable. None of the outstanding shares of capital stock of the Company was issued in violation
of any preemptive or other similar rights of any securityholder of the Company. The Warrant Shares, when issued and paid for in
accordance with the terms of the Warrants, will be validly issued, fully paid and nonassessable, free and clear of all Liens imposed
by the Company other than restrictions on transfer of the Warrants provided for in the Transaction Documents or imposed by applicable
securities laws. The Company has reserved on its records from its duly authorized capital stock the maximum number of shares of
Common Stock issuable pursuant to the Securities Purchase Agreement and the Warrants. Except as disclosed in the Registration
Statement or the General Disclosure Package (or any document incorporated by reference therein), (i) no shares of capital stock
of the Company are reserved for any purpose, (ii) no outstanding securities are convertible into or exchangeable for any shares
of capital stock of the Company, and (iii) there are no outstanding options, rights (preemptive or otherwise) or warrants to purchase
or subscribe for shares of capital stock or any other securities of the Company.

 

    	 

    	 

    

 

(N)
All necessary corporate action has been duly and validly taken by the Company to authorize the execution, delivery and performance
of the Transaction Documents and the issuance and sale of the Shares, the Warrants and the Warrant Shares. This Agreement has
been duly authorized, executed and delivered by the Company.

 

(O)
The Securities have been duly authorized for issuance and sale pursuant to the Securities Purchase Agreement, and when the Securities
have been issued and delivered by the Company pursuant to the Securities Purchase Agreement against payment of the consideration
set forth therein, such Securities will be validly issued and fully paid and non-assessable; and the issuance of the Securities
is not subject to any preemptive or other similar rights of any securityholder of the Company. The Securities conform in all material
respects to all statements relating thereto contained in the Registration Statement or the General Disclosure Package and such
description conforms in all material respects to the rights set forth in the instruments defining the same; and no holder of the
Common Stock received at Closing, if any, will be subject to personal liability by reason of being such a holder. The certificates,
if any, to be used to evidence the Common Stock will, at Closing, if any, be in due and proper form and will comply in all material
respects with all applicable legal requirements, the requirements of the charter and by-laws of the Company and the requirements
of the Nasdaq Capital Market (“Nasdaq”) or FINRA and such consents, approvals, authorizations registrations
or qualifications as may be required under state securities or Blue Sky laws in connection with the purchase of the Securities.

 

(P)
The Company and each of its subsidiaries has all requisite corporate power and authority, and all necessary authorizations, approvals,
consents, orders, licenses, certificates and permits of and from all governmental or regulatory bodies (collectively, the “Permits”),
to own, lease and license its assets and properties and conduct its business as presently conducted, all of which are valid and
in full force and effect, except where the lack of such Permits, individually or in the aggregate, would not have a Material Adverse
Effect. The Company and each of its subsidiaries are fulfilling, have fulfilled and/or are performing or have performed in all
material respects all their respective obligations with respect to such Permits and no event has occurred that allows, or after
notice or lapse of time would allow, revocation or termination thereof or results in any other material impairment of the rights
of such entity thereunder. Except as may be required under the Securities Act, state and foreign Blue Sky laws and the rules of
FINRA and Nasdaq, no other Permits are required to enter into, deliver and perform the obligations of the Company under this Agreement,
including the obligation of the Company to issue and sell the Securities in accordance with the terms hereof.

 

(Q)
The Company and each of its subsidiaries owns or possesses, and will continue to own or possess immediately following the Closing
in all material respects, legally enforceable rights to use all trademarks, trademark applications, trade names, service marks,
copyrights, copyright applications, licenses, software, know-how and other similar rights and proprietary knowledge (collectively,
“Intellectual Property”) necessary for the conduct of their respective businesses. There are no third-party
joint owners of any Intellectual Property owned by the Company. To the Company’s knowledge, (i) none of the conduct, the
sale or the use of any product or service offered by the Company or any of its subsidiaries infringes, misappropriates or violates
any Intellectual Property of a third party and (ii) no person or entity (including any current or former employee or consultant
of the Company) is infringing, violating or misappropriating any of the Intellectual Property owned or licensed by the Company.

 

(R)
The Company and each of its subsidiaries have complied with their duty of candor and disclosure to the United States Patent and
Trademark Office and any relevant foreign patent office with respect to all Intellectual Property registrations filed by or on
behalf of the Company or any of its subsidiaries and have made no material misrepresentation in such applications. All assignments
of Intellectual Property owned by the Company and its subsidiaries have been properly executed and recorded, except for such deficiencies
as would not materially affect the enforceability thereof. To the Company’s knowledge, all Intellectual Property owned and
licensed by the Company is valid and enforceable. All issuance, renewal, maintenance and other payments that are or have become
due with respect to Intellectual Property owned by the Company have been timely paid by or on behalf of the Company.

 

    	 

    	 

    

 

(S)
Subsequent to the respective dates as of which information is given in the Registration Statement or the General Disclosure Package:
(i) no event has occurred which would reasonably be expected to result in a Material Adverse Effect; (ii) neither the Company
nor any of its subsidiaries has sustained any loss or interference with its assets, businesses or properties (whether owned or
leased) from fire, explosion, earthquake, flood or other calamity, whether or not covered by insurance, or from any labor dispute
or any court or legislative or other governmental action, order or decree which would reasonably be expected to result in a Material
Adverse Effect. Except as disclosed in the Registration Statement and the General Disclosure Package, since the date of the latest
balance sheet included in the Registration Statement and the General Disclosure Package, neither the Company nor any of its subsidiaries
has (A) issued any securities or incurred any liability or obligation, direct or contingent, for borrowed money, except such liabilities
or obligations incurred in the ordinary course of business, (B) entered into any transaction not in the ordinary course of business
or (C) declared or paid any dividend or made any distribution on any shares of its stock or redeemed, purchased or otherwise acquired
or agreed to redeem, purchase or otherwise acquire any shares of its capital stock.

 

(T)
There is no document, contract or other agreement required to be described in the Registration Statement or the General Disclosure
Package or to be filed as an exhibit to the Registration Statement which is not described or filed as required by the Securities
Act or Rules. Each description of a contract, document or other agreement in the Registration Statement or the General Disclosure
Package accurately reflects in all material respects the terms of the underlying contract, document or other agreement. Each contract,
document or other agreement described in the Registration Statement or the General Disclosure Package or filed as exhibits to
the Registration Statement is, or upon consummation of the Offering will be, in full force and effect and is valid and enforceable
in all material respects by and against the Company or any of its subsidiaries, as the case may be, in accordance with its terms,
except (i) such contracts or other agreements that have terminated or expired in accordance with their terms as disclosed in the
Registration Statement or the General Disclosure Package, and (ii) as enforceability may be limited by applicable bankruptcy,
insolvency, fraudulent conveyance, reorganization, moratorium and similar laws relating to or affecting creditors’ rights
and remedies generally, and subject, as to enforceability, to general principles of equity and, with respect to equitable relief,
the discretion of the court before which any proceeding therefor may be brought (regardless of whether enforcement is sought in
a proceeding at law or in equity), and with respect to indemnification thereunder, except as rights may be limited by applicable
law or policies underlying such law. To the knowledge of the Company, neither the Company nor any of its subsidiaries is in default
in the observance or performance of any term or obligation to be performed by it under any such agreement, and no event has occurred
which with notice or lapse of time or both would constitute such a default. No default exists, and no event has occurred which
with notice or lapse of time or both would constitute a default, in the due performance and observance of any term, covenant or
condition, by the Company or any of its subsidiaries, if a subsidiary is a party thereto, of any other agreement or instrument
to which it is a party or by which it or its properties or business may be bound or affected which default or event, individually
or in the aggregate, would reasonably be expected to have a Material Adverse Effect.

 

(U)
The statistical and market related data included in the Registration Statement or the General Disclosure Package are based on
or derived from sources that the Company believes to be reliable and accurate. The Company had a reasonable basis for, and made
in good faith, each “forward-looking statement” (within the meaning of Section 27A of the Act or Section 21E of the
Exchange Act) contained or incorporated by reference in the Registration Statement or the General Disclosure Package.

 

    	 

    	 

    

 

(V)
Neither the Company nor any of its subsidiaries (i) is in violation of its certificate or articles of incorporation, by-laws,
certificate of limited partnership, agreement of limited partnership, certificate of formation, operating agreement or other organizational
documents, (ii) is in violation of any statute, law, rule, regulation, ordinance, directive, judgment, decree or order of any
judicial, regulatory or other legal or governmental agency or body, foreign or domestic, except (in the case of clause (ii) above)
for violations or defaults that could not (individually or in the aggregate) reasonably be expected to have a Material Adverse
Effect.

 

(W)
Neither the execution, delivery and performance of this Agreement by the Company nor the consummation of any of the transactions
contemplated hereby (including, without limitation, the issuance and sale by the Company of the Securities) will give rise to
a right to terminate or accelerate the due date of any payment due under, or conflict with or result in the breach of any term
or provision of, or constitute a default (or an event which with notice or lapse of time or both would constitute a default) under,
or require any consent or waiver under, or result in the execution or imposition of any lien, charge or encumbrance upon any properties
or assets of the Company or any of its subsidiaries pursuant to the terms of: (i) any indenture, mortgage, deed of trust or other
agreement or instrument to which either of the Company or any of its subsidiaries is a party or by which the Company or any of
its subsidiaries or any of their properties or businesses is bound, or any franchise, license, permit, judgment, decree, order,
statute, rule or regulation applicable to either of the Company or any of its subsidiaries, or (ii) violate any provision of certificate
or articles of incorporation, by-laws, certificate of limited partnership, agreement of limited partnership, certificate of formation,
operating agreement or other organizational documents of either of the Company or any of its subsidiaries, except (a) in the case
of clause (i) above, for violations or defaults that would not, individually or in the aggregate, reasonably be expected to have
a Material Adverse Effect, and (b) for such consents or waivers which have already been obtained and are in full force and effect.

 

(X)
Except as otherwise set forth in the Registration Statement or the General Disclosure Package, no holder of any security of the
Company has any right, which has not been waived or satisfied prior to the date hereof, to have any security owned by such holder
included in the Registration Statement or to demand registration of any security owned by such holder.

 

(Y)
Except as disclosed in the Registration Statement, the General Disclosure Package (including documents incorporated by reference
therein), there are no legal or governmental proceedings pending to which either of the Company or any of its subsidiaries is
a party or of which any property of the Company or any of its subsidiaries is the subject; and, to the knowledge of the Company,
no such proceedings are threatened or contemplated by governmental authorities or threatened by others.

 

(Z)
Neither the Company nor any of its subsidiaries is involved in any labor dispute or, to the knowledge of the Company, is any such
dispute threatened, which dispute would reasonably be expected to result in a Material Adverse Effect. The Company is not aware
of any existing or imminent labor disturbance by the employees of any of its or its subsidiaries, principal suppliers or contractors
which would reasonably be expected to result in a Material Adverse Effect. The Company is not aware of any threatened or pending
litigation between either of the Company or any of its subsidiaries and any of its executive officers and has no reason to believe
that such officers will not remain in the employment of the Company or its subsidiaries, as the case may be.

 

(AA)
No transaction has occurred between or among either of the Company, its subsidiaries and any of their officers or directors, or
five percent stockholders or any affiliate or affiliates of any such officer or director or five percent stockholders that is
required to be described in and is not described in the Registration Statement or the General Disclosure Package.

 

    	 

    	 

    

 

(BB)
Neither the Company nor any of its subsidiaries has taken, nor will it take, directly or indirectly, any action designed to or
which might reasonably be expected to cause or result in, or which has constituted or which might reasonably be expected to constitute,
the stabilization or manipulation of the price of the Common Stock or any other security of the Company to facilitate the sale
or resale of any of Securities.

 

(CC)
The Company and its subsidiaries have filed all federal, state, local and foreign tax returns which are required to be filed through
the date hereof, which returns are true and correct in all material respects, or has received timely extensions thereof, and has
paid all taxes shown on such returns and all assessments received by the Company to the extent that the same are material and
have become due. There are no material tax audits or investigations pending; nor are there any material proposed additional tax
assessments against either the Company or its subsidiaries.

 

(DD)
A Listing of Additional Shares Notification Form (the “Additional Shares Notification Form”) for the Common
Stock was submitted to Nasdaq prior to the date of this Agreement and, as of the date of this Agreement, the Company has received
confirmation in writing from Nasdaq that the review of the Additional Shares Notification Form has been completed. At Closing
no stockholder or other approval is required pursuant to Nasdaq Listing Rule 5635(d).

 

(EE)
The Company has not taken any action designed to, or likely to have the effect of, terminating the registration of the Common
Stock under the Exchange Act or the listing of the Common Stock on Nasdaq, nor has the Company received any notification that
the SEC or Nasdaq is contemplating terminating such registration or listing.

 

(FF)
The books, records and accounts of the Company and its subsidiaries accurately and fairly reflect, in all material respects, the
transactions in, and dispositions of, the assets of, and the results of operations of, the Company and its subsidiaries. Except
as disclosed in the Registration Statement or the General Disclosure Package (or any document incorporated by reference therein),
the Company and its subsidiaries maintain a system of internal accounting controls sufficient to provide reasonable assurances
that (i) transactions are executed in accordance with management’s general or specific authorizations, (ii) transactions
are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles
and to maintain asset accountability, (iii) access to assets is permitted only in accordance with management’s general or
specific authorization and (iv) the recorded accountability for assets is compared with the existing assets at reasonable intervals
and appropriate action is taken with respect to any differences.

 

(GG)
Except as disclosed in the Registration Statement or the General Disclosure Package (or any document incorporated by reference
therein), the Company is not aware of (i) any material weakness or significant deficiency in the design or operation of internal
controls which could adversely affect the Company’s ability to record, process, summarize and report financial data or any
material weaknesses in internal controls, except as disclosed in the Registration Statement or the General Disclosure Package
(or any document incorporated by reference therein); or (ii) any fraud, whether or not material, that involves management or other
employees who have a role in the Company’s internal controls.

 

(HH)
Except as described in the Registration Statement or the General Disclosure Package (or any document incorporated by reference
therein) and as preapproved in accordance with the requirements set forth in Section 10A of the Exchange Act, the Auditor has
not been engaged by the Company to perform any “prohibited activities” (as defined in Section 10A of the Exchange
Act).

 

(II)
Except as described in the Registration Statement or the General Disclosure Package (or any document incorporated by reference
therein), there are no material off-balance sheet arrangements (as defined in Item 303 of Regulation S-K) that have or are reasonably
likely to have a material current or future effect on the Company’s financial condition, revenues or expenses, changes in
financial condition, results of operations, liquidity, capital expenditures or capital resources.

 

    	 

    	 

    

 

(JJ)
The Company’s Board of Directors has validly established an audit committee whose composition satisfies the requirements
of Nasdaq Listing Rule 5605(c)(2) and the Board of Directors and/or the audit committee of the Board of Directors has adopted
a charter that satisfies the requirements of Nasdaq Listing Rule Listing Rule 5605(c)(1).

 

(KK)
The Company’s Board of Directors has validly established a compensation committee whose composition satisfies, and upon
completion of the Offering will satisfy, the requirements of Nasdaq Listing Rule 5605(d)(2) and the Board of Directors and/or
the compensation committee of the Board of Directors has adopted a charter that satisfies the requirements of Nasdaq Listing Rule
5605(d)(1).

 

(LL)
The Company has taken all necessary actions to ensure that it is in compliance in all material respects with all provisions of
the Sarbanes-Oxley Act of 2002 and all rules and regulations promulgated thereunder or implementing the provisions thereof that
are then in effect and with which the Company is required to comply. The Company has not, directly or indirectly, including through
any subsidiary, extended credit, arranged to extend credit, or renewed any extension of credit, in the form of a personal loan,
to or for any executive officer of the Company or any of its subsidiaries, or to or for any family member or affiliate of any
director or executive officer of the Company or any of its subsidiaries.

 

(MM)
The Company and its subsidiaries carry or are entitled to the benefits of insurance, with financially sound and reputable insurers,
in such amounts and covering such risks as is generally maintained by companies of established repute engaged in the same or similar
business, and all such insurance is in full force and effect. The Company does not have any reason to believe that it or any of
its subsidiaries will not be able (A) to renew, if desired, its existing insurance coverage as and when such policies expire or
(B) to obtain comparable coverage from similar institutions as may be necessary or appropriate to conduct its business as now
conducted and not at a cost that is materially more significant. Neither the Company nor any of its subsidiaries has been denied
any insurance coverage that it has sought or for which it has applied.

 

(NN)
There are no claims, payments, issuances, arrangements or understandings for services in the nature of a finder’s, consulting
or origination fee with respect to the introduction of the Company to the Placement Agent or the sale of the Securities hereunder
or any other arrangements, agreements, understandings, payments or issuances with respect to the Company that may affect the Placement
Agent’s compensation, as determined by FINRA.

 

(OO)
Except as disclosed in the Registration Statement or the General Disclosure Package (or any document incorporated by reference
therein), the Company has not made any direct or indirect payments (in cash, securities or otherwise) to: (i) any person, as a
finder’s fee, investing fee or otherwise, in consideration of such person raising capital for the Company or introducing
to the Company persons who provided capital to the Company, (ii) any FINRA member, or (iii) any person or entity that, to the
Company’s knowledge, has any direct or indirect affiliation or association with any FINRA member within the 12-month period
prior to the date on which the Registration Statement was filed with the SEC (“Filing Date”) or thereafter.

 

(PP)
None of the net proceeds of the Offering will be paid by the Company to any participating FINRA member or any affiliate or associate
of any participating FINRA member, except as specifically authorized herein.

 

    	 

    	 

    

 

(QQ)
To the knowledge of the Company, no: (i) officer or director of the Company or its subsidiaries, (ii) owner of 5% or more of the
Company’s unregistered securities or (iii) owner of any amount of the Company’s unregistered securities acquired within
the 180-day period prior to the Filing Date, has any direct or indirect affiliation or association with any FINRA member. The
Company will advise the Placement Agent and its counsel if it becomes aware that any officer, director or stockholder of the Company
or its subsidiaries is or becomes an affiliate or associated person of a FINRA member participating in the Offering.

 

(RR)
Except as disclosed in the Registration Statement or the General Disclosure Package (or any document incorporated by reference
therein): (i) the Company and each of its subsidiaries is in compliance in all material respects with all rules, laws and regulation
relating to the use, treatment, storage and disposal of toxic substances and protection of health or the environment (“Environmental
Laws”) which are applicable to its business; (ii) neither the Company nor any of its subsidiaries has received any notice
from any governmental authority or third party of an asserted claim under Environmental Laws; (iii) the Company and each of its
subsidiaries has received all permits, licenses or other approvals required of it under applicable Environmental Laws to conduct
its business and is in compliance in all material respects with all terms and conditions of any such permit, license or approval;
(iv) to the knowledge of the Company, no facts currently exist that will require either Company or its subsidiaries to make future
material capital expenditures to comply with Environmental Laws; and (v) no property which is or has been owned, leased or occupied
by either of the Company or its subsidiaries has been designated as a “Superfund site” pursuant to the Comprehensive
Environmental Response, Compensation of Liability Act of 1980, as amended (42 U.S.C. Section 9601, et. seq.) (“CERCLA”),
or otherwise designated as a contaminated site under applicable state or local law. Neither the Company nor its subsidiaries has
been named as a “potentially responsible party” under CERCLA.

 

(SS)
The Company is not and, after giving effect to the Offering, the sale of Securities and the application of proceeds thereof as
described in the General Disclosure Package, will not be an “investment company” within the meaning of the Investment
Company Act of 1940, as amended.

 

(TT)
Neither the Company nor any other person associated with it or acting on its behalf including, without limitation, any director,
officer, agent or employee of the Company or its subsidiaries, has, directly or indirectly, while acting on behalf of the Company
or its subsidiaries: (i) used any corporate funds for unlawful contributions, gifts, entertainment or other unlawful expenses
relating to political activity; (ii) made any unlawful payment to foreign or domestic government officials or employees or to
foreign or domestic political parties or campaigns from corporate funds; (iii) violated any provision of the Foreign Corrupt Practices
Act of 1977, as amended; or (iv) made any other unlawful payment.

 

(UU)
The operations of the Company and its subsidiaries are and have been conducted at all times in compliance with applicable financial
recordkeeping and reporting requirements of the Currency and Foreign Transactions Reporting Act of 1970, as amended, the money
laundering statutes of all jurisdictions, the rules and regulations thereunder and any related or similar rules, regulations or
guidelines, issued, administered or enforced by any governmental agency (collectively, the “Money Laundering Laws”)
and no action, suit or proceeding by or before any court or governmental agency, authority or body or any arbitrator involving
the Company and its subsidiaries with respect to the Money Laundering Laws is pending, or to the knowledge of the Company, threatened.

 

(VV)
Neither the Company nor any of its subsidiaries, nor, to the knowledge of the Company, any director, officer, agent, employee
or affiliate of the Company or its subsidiaries is currently subject to any U.S. sanctions administered by the Office of Foreign
Assets Control of the U.S. Treasury Department (“OFAC”); and the Company will not directly or indirectly use
the proceeds of the Offering, or lend, contribute or otherwise make available such proceeds to its subsidiaries or any joint venture
partner or other person or entity, for the purpose of financing the activities of any person currently subject to any U.S. sanctions
administered by OFAC.

 

    	 

    	 

    

 

(WW)
Neither the Company nor any of its directors or officers or, to the best knowledge of the Company, any agent, employee, affiliate
or other person acting on behalf of the Company has engaged in any activities sanctionable under the Comprehensive Iran Sanctions,
Accountability, and Divestment Act of 2010, the Iran Sanctions Act of 1996, the National Defense Authorization Act for Fiscal
Year 2012, the Iran Threat Reduction and Syria Human Rights Act of 2012 or any Executive Order relating to any of the foregoing
(collectively, and as each may be amended from time to time, the “Iran Sanctions”); and the Company will not
directly or indirectly use the proceeds of the Offering, or lend, contribute or otherwise make available such proceeds to any
subsidiary, joint venture partner or other person or entity, for the purpose of engaging in any activities sanctionable under
the Iran Sanctions.

 

(XX)
Except as described in the Registration Statement or the General Disclosure Package or as provided by the Company to the Placement
Agent, the Company has not sold or issued any shares of Common Stock during the six-month period preceding the date of the Prospectus,
including any sales pursuant to Rule 144A under, or Regulations D or S of, the Securities Act, other than shares issued pursuant
to employee benefit plans, qualified stock options plans or other employee compensation plans or pursuant to outstanding options,
rights or warrants. Neither the Company nor any of its affiliates (as such term is defined under Rule 144 of the Securities Act)
has, prior to the date hereof, made any offer or sales of any securities which are required to be “integrated” pursuant
to the Securities Act or the Rules with the offer and sale of the Securities pursuant to the Registration Statement.

 

(YY)
The Company fulfilled its obligations, if any, under the minimum funding standards of Section 302 of the U.S. Employee Retirement
Income Security Act of 1974 (“ERISA”) and the regulations and published interpretations thereunder with respect
to each “plan” as defined in Section 3(3) of ERISA and such regulations and published interpretations in which its
employees are eligible to participate and each such plan is in compliance in all material respects with the presently applicable
provisions of ERISA and such regulations and published interpretations. No “Reportable Event” (as defined in 12 ERISA)
has occurred with respect to any “Pension Plan” (as defined in ERISA) for which the Company could have any liability.
The execution of this Agreement or consummation of the Offering does not constitute a triggering event under any plan or any other
employment contract, whether or not legally enforceable, which (either alone or upon the occurrence of any additional or subsequent
event) will or may result in any payment (of severance pay or otherwise), acceleration, increase in vesting, or increase in benefits
to any current or former participant, employee or director of the Company or any of its subsidiaries.

 

(ZZ)
The statements in the Registration Statement and the General Disclosure Package under the headings “Risk Factors,”
“Description of Securities We are Offering,” and “Our Company” insofar as such statements summarize legal
matters, agreements, documents or proceedings discussed therein, are accurate and fair summaries of such legal matters, agreements,
documents or proceedings in all material respects.

 

(AAA)
The Company and its subsidiaries own or lease all such properties as are necessary to the conduct of its business as presently
operated and as proposed to be operated as described in the Registration Statement or the General Disclosure Package (and any
document incorporated by reference therein). The Company and its subsidiaries have good and marketable title to all personal property
owned by them, free and clear of all liens except such as are described in the Registration Statement or the General Disclosure
Package or any document incorporated by reference therein or such as do not (individually or in the aggregate) materially affect
the business or prospects of the Company or its subsidiaries. Any real property and buildings held under lease or sublease by
the Company and its subsidiaries are held by them under valid, subsisting and enforceable leases with such exceptions as are not
material to, and do not interfere with, the use made and proposed to be made of such property and buildings by the Company and
its subsidiaries. Neither the Company nor any of its subsidiaries has received any notice of any claim adverse to its ownership
of any real or personal property or of any claim against the continued possession of any real property, whether owned or held
under lease or sublease by the Company or its subsidiaries.

 

    	 

    	 

    

 

(BBB)
Except as disclosed in the Registration Statement or the General Disclosure Package (or any document incorporated by reference
therein), there is no judicial, regulatory, arbitral or other legal or governmental proceeding or other litigation or arbitration,
domestic or foreign, pending to which the Company or any of its subsidiaries is a party (“Litigation”) or of
which any property, operations or assets of the Company or any of its subsidiaries is the subject that would be required to be
described pursuant to Rule 103 under Regulation S-K. To the Company’s knowledge, no such Litigation is threatened or contemplated.
The Company has established reasonable reserves for all Litigation to the extent required by GAAP as set forth in the Company’s
consolidated balance sheet. The Company considers any such reserves to be adequate to cover all reasonably anticipated liabilities
with respect to any outstanding Litigation.

 

(CCC)
The Company performs a test for impairment of its goodwill and intangible assets at the close of each fiscal quarter and as of
the Closing Date does not anticipate that it will record any material impairment to either its goodwill or intangible assets for
the Company’s fiscal quarter ended September 30, 2018.

 

(DDD)
To the Company’s knowledge, the disclosure concerning the Company’s named executive officers included under Part III
of the Company’s annual report on Form 10-K for the fiscal year ended December 31, 2017, filed on April 16, 2018, is complete
and accurate in all material respects.

 

(EEE)
The Company is not party to any probable business combination, as described in Rule 8-04 of Regulation S-X, as to which any of
the conditions specified in paragraph (b) of Rule 8-04 exceeds 50%.

 

Section
3  REPRESENTATIONS OF THE PLACEMENT
AGENT. The Placement Agent represents and warrants and/or agrees (as the case may be) as of the date of this letter and as
of the Closing, that it:

 

(A)
is a member in good standing of FINRA;

 

(B)
is registered as a broker/dealer under the Securities Exchange Act of 1934, as amended (the “Exchange Act”);

 

(C)
is licensed as a broker/dealer under the laws of the States applicable to the offers and sales of Securities by such Placement
Agent;

 

(D)
is and will be a limited liability company duly formed and validly existing under the laws of the State of Delaware;

 

(E)
has full power and authority to enter into and perform its obligations under this Agreement;

 

(F)
has a substantive, preexisting relationship with each Purchaser introduced by such Placement Agent;

 

    	 

    	 

    

 

(G)
has not had and will not have any discussions with any person that is not a party to this Agreement on the basis of which such
person would be able to assert a claim for a finder’s fee or similar fee in connection with Placement of the Securities;
and

 

(H)
agrees to comply in all material respects with applicable provisions of the Securities Act and any regulations thereunder and
any applicable laws, rules, regulations and requirements (including, without limitation, all U.S. state laws).

 

Section
4  INDEMNIFICATION. The Placement
Agent and the Company agree to the indemnification and other agreements set forth in the Indemnification Provisions (the “Indemnification
Provisions”) attached hereto as Addendum A, the provisions of which are incorporated herein by reference and
shall survive the termination or expiration of this Agreement as set forth therein.

 

Section
5  ENGAGEMENT TERM. The Placement
Agent’s engagement hereunder will expire on the earlier of (i) the final Closing Date of the Placement and (ii) October
24, 2018 (such date, the “Termination Date”). In the event, however, in the course of the Placement Agent’s
performance of due diligence they deem it necessary to terminate the engagement, the Placement Agent may do so prior to the Termination
Date and upon immediate written notice. If, within six months after the Termination Date, the Company completes any financing
of equity, equity-linked or debt or other capital raising activity of the Company (other than the exercise by any person or entity
of any options, warrants or other convertible securities in effect prior to the date of this Agreement) with any of the purchasers
who were first introduced to the Company in connection with the Placement by the Placement Agent, then the Company will pay to
the Placement Agent upon the closing or receipt of gross proceeds from such financing the compensation set forth in Section 1
herein (the “Introduction Fee”). Notwithstanding anything to the contrary contained herein, the provisions
concerning confidentiality, indemnification, contribution and the Company’s obligations to pay fees and reimburse expenses
contained herein and the Company’s representations and warranties and obligations contained in the Indemnification Provisions
will survive any expiration or termination of this Agreement, irrespective of whether a closing occurs. All such fees and reimbursements
due shall be paid to the Placement Agent from gross proceeds received by the Company from the Placement either (a) on or before
the Termination Date (in the event such fees and reimbursements are earned or owed as of the Termination Date) or (b) upon the
closing of the Placement or any applicable portion thereof (in the event such fees are due pursuant to the terms of Section 1
hereof). The Placement Agent agrees not to use any confidential information concerning the Company provided to them by the Company
for any purposes other than those contemplated under this Agreement.

 

Section
6  PLACEMENT AGENT’S INFORMATION.
The Company agrees that any information or advice rendered by the Placement Agent in connection with this engagement is for the
confidential use of the Company only in its evaluation of the Placement and, except as otherwise required by law, the Company
will not disclose or otherwise refer to the advice or information (other than references to the historical fact of the Placement)
in any manner without the Placement Agent’s prior written consent.

 

Section
7  NO FIDUCIARY RELATIONSHIP.
This Agreement does not create, and shall not be construed as creating rights enforceable by any person or entity not a party
hereto, except those entitled hereto by virtue of the Indemnification Provisions hereof. The Company acknowledges and agrees that
the Placement Agent is not and shall not be construed as a fiduciary of the Company and shall have no duties or liabilities to
the equity holders or the creditors of the Company or any other person by virtue of this Agreement or the retention of the Placement
Agent hereunder, all of which are hereby expressly waived.

 

Section
8  CLOSING. The obligations of
the Placement Agent, and the closing of the sale of the Securities hereunder, are subject to the accuracy, when made and on the
Closing Date, of the representations and warranties on the part of the Company and its subsidiaries contained herein and in the
Securities Purchase Agreement, to the accuracy of the statements of the Company and its subsidiaries made in any certificates
pursuant to the provisions hereof, to the performance by the Company and its subsidiaries of their obligations hereunder, and
to each of the following additional terms and conditions:

 

    	 

    	 

    

 

(A)
The Company has filed all reports, schedules, forms, statements or other documents required to be filed by the Company under the
Securities Act or Exchange Act, during the two years preceding the date hereof (the foregoing materials filed during such two-year
period, including the exhibits thereto and documents incorporated by reference therein, the “SEC Reports”)
on a timely basis or has received a valid extension of such time of filing and has filed any such SEC Reports prior to the expiration
of any such extension; as of their respective filing or amendment dates, the SEC Reports complied in all material respects with
the requirements of the Exchange Act and the rules and regulations of the SEC promulgated thereunder; and as of their respective
filing or amendment dates, the SEC Reports did not contain any untrue statement of a material fact or omit to state any material
fact necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading.

 

(B)
All corporate proceedings and other legal matters incident to the authorization, form, execution, delivery and validity of each
of this Agreement, the Placement, the Transaction Documents and the Securities, and all other legal matters relating to this Agreement
and the transactions contemplated hereby shall be reasonably satisfactory in all material respects to counsel for the Placement
Agent, and the Company shall have furnished to such counsel all documents and information that they may reasonably request to
enable them to pass upon such matters.

 

(C)
The Placement Agent shall have received as of the Closing Date a certificate of the Secretary of the Company (A) certifying, as
complete and accurate as of the Closing, attached copies of the certificate of incorporation and bylaws of the Company, (B) certifying
and attaching all requisite resolutions or actions of the Company’s board of directors and shareholders approving the execution
and delivery of this Agreement, the Transaction Documents and the consummation of the transactions contemplated hereby and thereby,
(C) certifying and attaching a short form Certificate of Good Standing, dated within four business days of the Closing Date, certified
by the Secretary of State of the State of Delaware and (D) certifying to the incumbency and signatures of the authorized representatives
of the Company executing this Agreement and any other document relating to the transactions contemplated hereby.

 

(D)
The Placement Agent shall have received as of the Closing Date the favorable opinion of legal counsel to the Company with respect
to the Company’s corporate authority to enter into the Transaction Documents and ability to perform its obligations thereunder,
among other things, dated as of such Closing Date, addressed to the Placement Agent in form and substance reasonably satisfactory
to the Placement Agent.

 

(E)
The Placement Agent shall have received a cold comfort letter from Marcum LLP, addressed to the Placement Agent in form and substance
reasonably satisfactory in all material respects to the Placement Agent.

 

(F)
Since the date of the latest audited or unaudited financial statements included or incorporated by reference in the SEC Reports,
there shall not have been any change in the capital stock or long-term debt of the Company or any of its subsidiaries or any change,
or any development involving a prospective change, in or affecting the business, general affairs, management, financial position,
stockholders’ equity, results of operations or prospects of the Company and its subsidiaries, otherwise than as set forth
in or contemplated by the SEC Reports, the effect of which is, in the judgment of the Placement Agent, so material and adverse
as to make it impracticable or inadvisable to proceed with the sale or delivery of the Securities on the terms and in the manner
contemplated by the Securities Purchase Agreement.

 

    	 

    	 

    

 

(G)
The Common Stock is registered under the Exchange Act and, as of the Closing Date, the Common Stock shall be listed, admitted
and authorized for trading on the Nasdaq. The Company shall issue the Warrants and the Warrant Shares pursuant to an exemption
from registration under the Securities Act. The Company shall have taken no action designed to, or likely to have the effect of
terminating the registration of the Common Stock under the Exchange Act or delisting or suspending from trading the Common Stock
from the Nasdaq, nor has the Company received any information suggesting that the SEC or Nasdaq is contemplating terminating such
registration or listing.

 

(H)
Subsequent to the execution and delivery of this Agreement and up to the Closing Date, there shall not have occurred any of the
following: (i) trading in securities generally on the Nasdaq shall have been suspended or minimum or maximum prices or maximum
ranges for prices shall have been established generally on any such exchange or such market by the SEC or by such exchange or
by any other regulatory body or governmental authority having jurisdiction, (ii) a banking moratorium shall have been declared
by federal or state authorities or a material disruption has occurred in commercial banking or securities settlement or clearance
services in the United States, (iii) the United States shall have become engaged in hostilities in which it is not currently engaged,
the subject of an act of terrorism, there shall have been an escalation in hostilities involving the United States, or there shall
have been a declaration of a national emergency or war by the United States, or (iv) there shall have occurred any other calamity
or crisis or any change in general economic, political or financial conditions in the United States or elsewhere, if the effect
of any such event in clause (iii) or (iv) makes it, in the sole judgment of the Placement Agent, impracticable or inadvisable
to proceed with the sale or delivery of the Securities on the terms and in the manner contemplated by the Securities Purchase
Agreement.

 

(I)
No action shall have been taken and no statute, rule, regulation or order shall have been enacted, adopted or issued by any governmental
agency or body which would, as of the Closing Date, prevent the issuance or sale of the Securities or materially and adversely
affect or potentially and adversely affect the business or operations of the Company; and no injunction, restraining order or
order of any other nature by any federal, state or foreign court of competent jurisdiction shall have been issued as of the Closing
Date which would prevent the issuance or sale of the Securities or materially and adversely affect the business or operations
of the Company.

 

(J)
The Company shall have prepared and filed with the SEC a Current Report on Form 8-K with respect to the Placement, including as
an exhibit thereto this Agreement.

 

(K)
The Company shall have entered into a Securities Purchase Agreement with each of the Purchasers and such agreements shall be in
full force and effect and shall contain representations, warranties and covenants of the Company as agreed between the Company
and the Purchasers.

 

(L)
Prior to the Closing Date, the Company shall have furnished to the Placement Agent such further information, certificates and
documents as the Placement Agent may reasonably request.

 

(M)
All opinions, letters, evidence and certificates mentioned above or elsewhere in this Agreement shall be deemed to be in compliance
with the provisions hereof only if they are in form and substance reasonably satisfactory to counsel for the Placement Agent.

 

(N)
FINRA shall have raised no objection to the fairness and reasonableness of the terms and arrangements of this Agreement. In addition,
the Company shall, if requested by the Placement Agent, make or authorize Placement Agent’s counsel to make on the Company’s
behalf, an Issuer Filing with FINRA pursuant to FINRA Rule 5110 with respect to the Registration Statement and pay all filing
fees required in connection therewith.

 

    	 

    	 

    

 

If
any of the conditions specified in this Section 8 shall not have been fulfilled when and as required by this Agreement, the obligations
of the Placement Agent to consummate the Closing hereunder may be cancelled by the Placement Agent after notice of such cancellation
shall have be given to the Company in writing and the Company shall have been given a reasonable period of time to satisfy such
condition (if such condition is capable of being satisfied).

 

Section
9  GOVERNING LAW. This Agreement,
and any dispute, claim or action arising under or in any way relating to this Agreement, will be governed by, and construed in
accordance with, the laws of the State of New York applicable to agreements made and to be performed entirely in such State. This
Agreement may not be assigned by any party without the prior written consent of the other parties. This Agreement shall be binding
upon and inure to the benefit of the parties hereto, and their respective successors and permitted assigns. Any right to trial
by jury with respect to any dispute arising under this Agreement or any transaction or conduct in connection herewith is knowingly,
voluntarily and irrevocably waived to the fullest extent permitted by applicable law. Each of the Placement Agent and the Company:
(i) agrees that any legal suit, action or proceeding arising out of or relating to this Agreement and/or the transactions contemplated
hereby shall be instituted exclusively in New York Supreme Court, County of New York, or in the United States District Court for
the Southern District of New York, (ii) waives any objection which it may have or hereafter to the venue of any such suit, action
or proceeding, and (iii) irrevocably consents to the jurisdiction of the New York Supreme Court, County of New York, and the United
States District Court for the Southern District of New York in any such suit, action or proceeding. Each of the Placement Agent
and the Company further agrees to accept and acknowledge service of any and all process which may be served in any such suit,
action or proceeding in the New York Supreme Court, County of New York, or in the United States District Court for the Southern
District of New York and agrees that service of process upon the Company mailed by certified mail to the Company’s address
shall be deemed in every respect effective service of process upon the Company, in any such suit, action or proceeding, and service
of process upon the Placement Agent mailed by certified mail to such Placement Agent’s address shall be deemed in every
respect effective service process upon such Placement Agent, in any such suit, action or proceeding. Nothing contained herein
shall be deemed to limit in any way any right to serve process in any manner permitted by law.

 

Section
10  ENTIRE AGREEMENT/MISC. This
Agreement (including the attached Indemnification Provisions) embodies the entire agreement and understanding between the parties
hereto, and supersedes all prior agreements and understandings, relating to the subject matter hereof. If any provision of this
Agreement is determined to be invalid or unenforceable in any respect, such determination will not affect such provision in any
other respect or any other provision of this Agreement, which will remain in full force and effect. This Agreement may not be
amended or otherwise modified or waived except by an instrument in writing signed by both the Placement Agent and the Company.
The representations, warranties, agreements and covenants contained herein shall survive the closing of the Placement and delivery
and/or exercise of the Securities, as applicable. This Agreement may be executed in two or more counterparts, all of which when
taken together shall be considered one and the same agreement and shall become effective when counterparts have been signed by
each party and delivered to the other party, it being understood that both parties need not sign the same counterpart. In the
event that any signature is delivered by facsimile transmission or a .pdf format file, such signature shall create a valid and
binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as if
such facsimile or .pdf signature page were an original thereof, subject to the consent of its release by the respective party.
The Company agrees that the Placement Agent may rely upon, and each is a third party beneficiary of, the representations and warranties,
and applicable covenants set forth in any such purchase, subscription or other agreement with the Purchasers in the Placement.
All amounts stated in this Agreement are in United States dollars unless expressly stated otherwise.

 

Section
11  NOTICES. All notices and
communications hereunder shall be in writing and mailed or delivered or by email if subsequently confirmed in writing, and shall
be deemed given and effective on the earliest of (a) the date of transmission, if such notice or communication is sent to the
email address specified on the signature pages attached hereto prior to 6:30 p.m. (New York City time) on a business day, (b)
the next business day after the date of transmission, if such notice or communication is sent to the email address on the signature
pages attached hereto on a day that is not a business day or later than 6:30 p.m. (New York City time) on any business day, (c)
the third business day following the date of mailing, if sent by U.S. internationally recognized air courier service, or (d) upon
actual receipt by the party to whom such notice is required to be given. The address for such notices and communications shall
be as follows: (a) if to the Placement Agent, c/o Maxim Group LLC, 405 Lexington Avenue, New York, New York 10174, Attention:
Equity Capital Markets, with a copy to Maxim Group LLC, 405 Lexington Avenue, New York, New York 10174, Attention: General Counsel,
and to Harter Secrest & Emery LLP, 1600 Bausch & Lomb Place, Rochester, NY 14604, Attention: Alexander R. McClean, and
(b) if to the Company, to the address set forth above, Attention: Tyler B. Wilson, Esq., General Counsel.

 

[The
remainder of this page has been intentionally left blank.]

 

    	 

    	 

    

 

Please
confirm that the foregoing correctly sets forth our agreement by signing and returning to the Placement Agent the enclosed copy
of this Agreement.

 

	 	Very
    truly yours,
	 	 	 
	 	MAXIM
    GROUP LLC
	 	 	 
	 	By:	/s/Clifford
    Teller
	 	Name:	Clifford
    Teller
	 	Title:	Exec.
    Managing Director & Head of Investment Banking

 

[Signature
Page to Placement Agency Agreement]

 

    	 

    	 

    

 

Accepted
and Agreed to as of

the
date first written above:

 

MAGNEGAS
APPLIED TECHNOLOGY SOLUTIONS, INC.

 

	By:	/s/Ermanno
    Santilli	 
	Name:	Ermanno
    Santilli	 
	Title:	Chief
    Executive Officer	 

 

[Signature
Page to Placement Agency Agreement]

 

    	 

    	 

    

 

ADDENDUM
A

 

INDEMNIFICATION
PROVISIONS

 

In
connection with the engagement of Maxim Group LLC (“Maxim” or the “Placement Agent”) by MagneGas Applied
Technology Solutions, Inc. (the “Company”) pursuant to a letter agreement dated October 4, 2018, between the
Company and the Placement Agent, as it may be amended from time to time in writing (the “Agreement”), the Company
hereby agrees as follows:

 

	 	1.	To
    the extent permitted by law, the Company hereby agrees to indemnify and hold the Placement Agent, each of its respective officers,
    directors, principals, employees, affiliates, and stockholders, and their successors and assigns, harmless from and against
    any and all loss, claim, damage, liability, deficiencies, actions, suits, proceedings, costs and legal expenses or expense
    whatsoever (including, but not limited to, reasonable legal fees and other expenses and reasonable disbursements incurred
    in connection with defending any action, suit or proceeding, including any inquiry or investigation, commenced or threatened,
    or any claim whatsoever, or in appearing or preparing for appearance as witness in any proceeding, including any pretrial
    proceeding such as a deposition) (collectively the “Losses”) arising out of, based upon, or in any way
    related or attributable to, (i) any breach of a representation, warranty or covenant by the Company contained in this Agreement;
    or (ii) any activities or services performed hereunder by the Placement Agent, unless it is finally judicially determined
    (and not subject to appeal) in a court of competent jurisdiction that such Losses were the primary and direct result of the
    bad faith, willful misconduct or gross negligence of the Placement Agent in performing the services hereunder.
	 	 	 
	 	2.	The
    Company agrees to notify the Placement Agent promptly of the assertion against it or any other person of any claim or the
    commencement of any legal action, suit or proceeding relating to a transaction contemplated by the Agreement. If the Placement
    Agent receives written notice of the commencement of any legal action, suit or proceeding with respect to which the Company
    is or may be obligated to provide indemnification pursuant to this Addendum A, the Placement Agent shall, within twenty days
    of the receipt of such written notice, give the Company written notice thereof (a “Claim Notice”). Failure
    to give such Claim Notice within such twenty day period shall not constitute a waiver by the Placement Agent of its right
    to indemnity hereunder with respect to such action, suit or proceeding; provided, however, the indemnification hereunder may
    be limited by any such failure to provide a Claim Notice to the Company that materially prejudices the Company. Upon receipt
    by the Company of a Claim Notice from the Placement Agent with respect to any claim for indemnification which is based upon
    a claim made by a third party (“Third-Party Claim”), the Company may assume the defense of the Third-Party
    Claim with counsel of its own choosing, as described below. The Placement Agent shall cooperate in the defense of the Third-Party
    Claim and shall furnish such records, information and testimony and attend all such conferences, discovery proceedings, hearings,
    trial and appeals as may be reasonably required in connection therewith. The Placement Agent shall have the right to employ
    their own counsel in any such action which shall be at the Company’s expense if (i) the Company shall have failed in
    a timely manner to assume the defense and employ counsel or experts reasonably satisfactory to the Placement Agent in such
    litigation or proceeding or (ii) the named parties to any such litigation or proceeding (including any impleaded parties)
    include the Company and the Placement Agent and representation of the Company and the Placement Agent by the same counsel
    or experts would, in the reasonable opinion of the Placement Agent, be inappropriate due to actual or potential differing
    interests between the Company and the Placement Agent. The Company shall not satisfy or settle any Third-Party Claim for which
    indemnification has been sought and is available hereunder, without the prior written consent of the Placement Agent, which
    consent shall not be conditioned or delayed and which shall not be required if the Placement Agent is granted a release in
    connection therewith. The indemnification provisions hereunder shall survive the termination or expiration of this Agreement
    for the applicable statute of limitations.

 

    	 

    	 

    

 

	 	3.	The
    Company further agrees, upon demand by the Placement Agent, to promptly reimburse the Placement Agent for, or pay, any loss,
    claim, damage, liability or expense as to which the Placement Agent has been indemnified herein with such reimbursement to
    be made currently as any loss, damage, liability or expense is incurred by the Placement Agent. Notwithstanding the provisions
    of the aforementioned Indemnification, any such reimbursement or payment by the Company of fees, expenses, or disbursements
    incurred by the Placement Agent shall be repaid by the Placement Agent in the event of any proceeding in which a final judgment
    (after all appeals or the expiration of time to appeal) is entered in a court of competent jurisdiction against the Placement
    Agent based solely upon its bad faith, gross negligence or willful misconduct in the performance of its duties hereunder,
    and provided further, that the Company shall not be required to make reimbursement or payment for any settlement effected
    without the Company’s prior written consent (which consent shall not be unreasonably withheld or delayed).
	 	 	 
	 	4.	If
    for any reason the foregoing indemnification is unavailable or is insufficient to hold such indemnified party harmless, the
    Company agrees to contribute the amount paid or payable by such indemnified party in such proportion as to reflect not only
    the relative benefits received by the Company, as the case may be, on the one hand, and the Placement Agent, on the other
    hand, but also the relative fault of the Company and the Placement Agent as well as any relevant equitable considerations.
    In no event shall the Placement Agent contribute in excess of the fees actually received by them pursuant to the terms of
    this Agreement.
	 	 	 
	 	5.	For
    purposes of this Agreement, each officer, director, stockholder, and employee or affiliate of the Placement Agent and each
    person, if any, who controls the Placement Agent (or any affiliate) within the meaning of either Section 15 of the Securities
    Act of 1933, as amended, or Section 20 of the Securities Exchange Act of 1934, as amended, shall have the same rights as the
    Placement Agent with respect to matters of indemnification by the Company hereunder.

 

	 	MAXIM
    GROUP LLC
	 	 	 
	 	By:	/s/ Clifford Teller
	 	Name:	Clifford
    Teller
	 	Title:	Exec.
    Managing Director & Head of Investment Banking

 

[Signature
Page to Indemnification Provisions

Pursuant
to Placement Agency Agreement]

 

    	 

    	 

    

 

Accepted
and Agreed to as of

the
date first written above:

 

MAGNEGAS
APPLIED TECHNOLOGY SOLUTIONS, INC.

 

	By:	/s/
    Ermanno     Santilli	 
	Name:	Ermanno
    Santilli	 
	Title:	Chief
    Executive Officer	 

 

[Signature
Page to Indemnification Provisions

Pursuant
to Placement Agency Agreement]NEITHER
THIS SECURITY NOR THE SECURITIES FOR WHICH THIS SECURITY IS EXERCISABLE HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE
COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT
OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO
AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT
SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS. THIS
SECURITY AND THE SECURITIES ISSUABLE UPON EXERCISE OF THIS SECURITY MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT
OR OTHER LOAN SECURED BY SUCH SECURITIES.

 

COMMON
STOCK PURCHASE WARRANT 

 

Magnegas
APPLIED TECHNOLOGY SOLUTIONS, INC.

 

	Warrant
    Shares: [                ]	Closing
    Date: October 15, 2018

 

This
COMMON STOCK PURCHASE WARRANT (the “Warrant”) certifies that, for value received, [_______________________].,
a [____] corporation or assigns (the “Holder”) is entitled, upon the terms and subject to the limitations on
exercise and the conditions hereinafter set forth, on the Initial Exercise Date (as defined below) and on or prior to the close
of business on the date that is forty two (42) months from the Closing Date (the “Termination Date”) but not
thereafter, to subscribe for and purchase from MagneGas Applied Technology Solutions, Inc., a Delaware corporation (the “Company”),
up to [                  ] shares (as
subject to adjustment hereunder, the “Warrant Shares”) of the Company’s common stock, par value $0.001
per share (the “Common Stock”). The purchase price of one share of Common Stock under this Warrant shall be
equal to the Exercise Price, as defined in Section 1(b).

 

Section
1. Exercise.

 

a)
Exercise of the purchase rights represented by this Warrant may be made, in whole or in part, on the earlier of April 16, 2019
and the date the Company obtains the approval of its stockholders to the issuance of the Warrant Shares (the “Initial
Exercise Date”) and on or before the Termination Date (each, a “Subsequent Exercise Date”) 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 facsimile copy (or e-mail attachment) of
the Notice of Exercise in the form annexed hereto and, within one (1) Trading Day of the date said Notice of Exercise is delivered
to the Company, payment the aggregate Exercise Price of the shares thereby purchased by wire transfer or cashier’s check
drawn on a United States bank, unless the cashless exercise procedure specified in Section 1(c) below is specified in the applicable
Notice of Exercise. No ink-original Notice of Exercise shall be required, nor shall any medallion guarantee (or other type of
guarantee or notarization) of any Notice of Exercise form be required. Notwithstanding anything herein to the contrary, the Holder
shall not be required to physically surrender this Warrant to the Company until the Holder has purchased all of the Warrant Shares
available hereunder and the Warrant has been exercised in full, in which case, the Holder shall surrender this Warrant to the
Company for cancellation within three (3) Trading Days of the date the final Notice of Exercise is delivered to the Company. Partial
exercises of this Warrant resulting in purchases of a portion of the total number of Warrant Shares available hereunder shall
have the effect of lowering the outstanding number of Warrant Shares purchasable hereunder in an amount equal to the applicable
number of Warrant Shares purchased. The Holder and the Company shall maintain records showing the number of Warrant Shares purchased
and the date of such purchases. The Company shall deliver any objection to any Notice of Exercise within one (1) Business Day
of receipt of such notice. The Holder and any assignee, by acceptance of this Warrant, acknowledge and agree that, by
reason of the provisions of this paragraph, following the purchase of a portion of the Warrant Shares hereunder, the number of
Warrant Shares available for purchase hereunder at any given time may be less than the amount stated on the face hereof.

 

    	1

    	 

    

 

b)
Exercise Price. The exercise price per share of Common Stock under this Warrant shall be US$0.3654 subject to adjustment
hereunder (the “Exercise Price”).

 

c)
Cashless Exercise. If after six months from the Closing Date, at the time of exercise hereof, there is no effective registration
statement registering, or the prospectus contained therein is not available for the issuance of the Warrant Shares to the Holder,
then this Warrant may also be exercised, in whole or in part, at such time by means of a “cashless exercise” in which
the Holder shall be entitled to receive a number of Warrant Shares equal to the quotient obtained by dividing [(A-B) (X)] by (A),
where:

 

	 	(A)	as
    applicable: (i) the VWAP on the Trading Day immediately preceding the date of the applicable Notice of Exercise if such Notice
    of Exercise is (1) both executed and delivered pursuant to Section 1(a) hereof on a day that is not a Trading Day or (2) both
    executed and delivered pursuant to Section 1(a) hereof on a Trading Day prior to the opening of “regular trading hours”
    (as defined in Rule 600(b)(64) of Regulation NMS promulgated under the federal securities laws) on such Trading Day, (ii)
    at the option of the Holder, either (y) the VWAP on the Trading Day immediately preceding the date of the applicable Notice
    of Exercise or (z) the Bid Price of the Common Stock on the principal Trading Market as reported by Bloomberg L.P. as of the
    time of the Holder’s execution of the applicable Notice of Exercise if such Notice of Exercise is executed during “regular
    trading hours” on a Trading Day and is delivered within two hours thereafter (including until two hours after the close
    of “regular trading hours” on a Trading Day) pursuant to Section 2(a) hereof or (iii) the VWAP on the date of
    the applicable Notice of Exercise if the date of such Notice of Exercise is a Trading Day and such Notice of Exercise is both
    executed and delivered pursuant to Section 1(a) hereof after the close of “regular trading hours” on such Trading
    Day;
	 	 	 
	 	(B)	=
    the Exercise Price of this Warrant, as adjusted hereunder; and
	 	 	 
	 	(X)	=
    the number of Warrant Shares that would be issuable upon exercise of this Warrant in accordance with the terms of this Warrant
    if such exercise were by means of a cash exercise rather than a cashless exercise.

 

    	2

    	 

    

 

If
Warrant Shares are issued in such a cashless exercise, the parties acknowledge and agree that in accordance with Section 3(a)(9)
of the Securities Act, the Warrant Shares shall take on the registered characteristics of the Warrants being exercised. The Company
agrees not to take any position contrary to this Section 1(c).

 

“Bid
Price” means, for any date, the price determined by the first of the following clauses that applies: (a) if the Common
Stock is then listed or quoted on a Trading Market, the bid price of the Common Stock for the time in question (or the nearest
preceding date) on the Trading Market on which the Common Stock is then listed or quoted as reported by Bloomberg L.P. (based
on a Trading Day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City time)), (b) if OTCQB or OTCQX is not a Trading
Market, the volume weighted average price of the Common Stock for such date (or the nearest preceding date) on OTCQB or OTCQX
as applicable, (c) if the Common Stock is not then listed or quoted for trading on OTCQB or OTCQX and if prices for the Common
Stock are then reported in the “Pink Sheets” published by OTC Markets Group, Inc. (or a similar organization or agency
succeeding to its functions of reporting prices), the most recent bid price per share of the Common Stock so reported, or (d) in
all other cases, the fair market value of a share of Common Stock as determined by an independent appraiser selected in good faith
by the Purchasers of a majority in interest of the Securities then outstanding and reasonably acceptable to the Company, the fees
and expenses of which shall be paid by the Company.

 

“VWAP”
means, for any date, the price determined by the first of the following clauses that applies: (a) if the Common Stock is then
listed or quoted on a Trading Market, the daily volume weighted average price of the Common Stock for such date (or the nearest
preceding date) on the Trading Market on which the Common Stock is then listed or quoted as reported by Bloomberg L.P. (based
on a Trading Day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City time)), (b) if OTCQB or OTCQX is not a Trading
Market, the volume weighted average price of the Common Stock for such date (or the nearest preceding date) on OTCQB or OTCQX
as applicable, (c) if the Common Stock is not then listed or quoted for trading on OTCQB or OTCQX and if prices for the Common
Stock are then reported in the “Pink Sheets” published by OTC Markets Group, Inc. (or a similar organization or agency
succeeding to its functions of reporting prices), the most recent bid price per share of Common Stock so reported, or (d) in all
other cases, the fair market value of a share of Common Stock as determined by an independent appraiser selected in good faith
by the Purchasers of a majority in interest of the Securities then outstanding and reasonably acceptable to the Company, the fees
and expenses of which shall be paid by the Company.

 

Notwithstanding
anything herein to the contrary, subject to the limitations set forth in Section 1(e), on the Termination Date, this Warrant shall
be automatically exercised via cashless exercise pursuant to this Section 1(e), if the applicable VWAP is greater than the Exercise
Price.

 

    	3

    	 

    

 

d)
Mechanics of Exercise.

 

i.
Delivery of Warrant Shares Upon Exercise. The Company shall cause the Warrant Shares purchased hereunder to be transmitted
by the Transfer Agent to the Holder by crediting the account of the Holder’s or its designee’s balance account with
The Depository Trust Company through its Deposit or Withdrawal at Custodian system (“DWAC”) if the Company
is then a participant in such system and there is an effective registration statement or applicable exemption permitting the issuance
of the Warrant Shares to or resale of the Warrant Shares by Holder and otherwise by physical delivery of a certificate, registered
in the Company’s share register in the name of the Holder or its designee, for the number of Warrant Shares to which the
Holder is entitled pursuant to such exercise to the address specified by the Holder in the Notice of Exercise by the date that
is two (2) Trading Days after the delivery to the Company of the Notice of Exercise (such date, the “Warrant Share Delivery
Date”). Upon delivery of the Notice of Exercise the Holder shall be deemed for all corporate purposes to have become
the holder of record of the Warrant Shares with respect to which this Warrant has been exercised, irrespective of the date of
delivery of the Warrant Shares; provided payment of the aggregate Exercise Price is received within one (1) Trading Day of delivery
of the Notice of Exercise. The Company agrees to maintain a transfer agent that is a participant in the FAST program so long as
this Warrant remains outstanding and exercisable.

 

ii.
Delivery of New Warrants Upon Exercise. If this Warrant shall have been exercised in part, the Company shall, at the request
of a Holder and upon surrender of this Warrant certificate, at the time of delivery of the Warrant Shares, deliver to the Holder
a new Warrant evidencing the rights of the Holder to purchase the unpurchased Warrant Shares called for by this Warrant, which
new Warrant shall in all other respects be identical with this Warrant.

 

iii.
Rescission Rights. If the Company fails to cause the Transfer Agent to transmit to the Holder the Warrant Shares pursuant
to Section 1(c)(i) by the Warrant Share Delivery Date, then the Holder will have the right to rescind such exercise by
delivering written notice to the Company at any time prior to the Company delivering such Warrant Shares.

 

iv.
No Fractional Shares or Scrip. No fractional shares or scrip representing fractional shares shall be issued upon the exercise
of this Warrant. As to any fraction of a share which the Holder would otherwise be entitled to purchase upon such exercise, the
Company shall, at its election, either pay a cash adjustment in respect of such final fraction in an amount equal to such fraction
multiplied by the Exercise Price or round up to the next whole share.

 

v.
Charges, Taxes and Expenses. Issuance of Warrant 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 Warrant Shares, all of which taxes and expenses shall be paid
by the Company, and such Warrant Shares shall be issued in the name of the Holder or in such name or names as may be directed
by the Holder; provided, however, that in the event that Warrant Shares are to be issued in a name other than the
name of the Holder, this Warrant when surrendered for exercise shall be accompanied by the Assignment Form attached hereto duly
executed by the Holder and the Company may require, as a condition thereto, the payment of a sum sufficient to reimburse it for
any transfer tax incidental thereto. The Company shall pay all Transfer Agent fees required for same-day processing of any Notice
of Exercise and all fees to the Depository Trust Company (or another established clearing corporation performing similar functions)
required for same-day electronic delivery of the Warrant Shares.

 

    	4

    	 

    

 

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

 

e)
Holder’s Exercise Limitations. The Company shall not cause any exercise of this Warrant, and a Holder shall not have
the right to exercise any portion of this Warrant, pursuant to Section 1 or otherwise, to the extent that after giving
effect to such issuance after exercise as set forth on the applicable Notice of Exercise, the Holder (together with the Holder’s
Affiliates, and any other Persons acting as a group together with the Holder or any of the Holder’s Affiliates (such Persons,
“Attribution Parties”)), would beneficially own in excess of the Beneficial Ownership Limitation (as defined
below). For purposes of the foregoing sentence, the number of shares of Common Stock beneficially owned by the Holder and its
Affiliates and Attribution Parties shall include the number of shares of Common Stock issuable upon exercise of this Warrant with
respect to which such determination is being made, but shall exclude the number of shares of Common Stock which would be issuable
upon (i) exercise of the remaining, non-exercised portion of this Warrant beneficially owned by the Holder or any of its Affiliates
or Attribution Parties and (ii) exercise or conversion of the unexercised or non-converted portion of any other securities of
the Company (including, without limitation, any other Common Stock Equivalents) subject to a limitation on conversion or exercise
analogous to the limitation contained herein beneficially owned by the Holder or any of its Affiliates or Attribution Parties.
Except as set forth in the preceding sentence, for purposes of this Section 1(d), beneficial ownership shall be calculated in
accordance with Section 13(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) and the
rules and regulations promulgated thereunder, it being acknowledged by the Holder that the Company is not representing to the
Holder that such calculation is in compliance with Section 13(d) of the Exchange Act and the Holder is solely responsible for
any schedules required to be filed in accordance therewith. To the extent that the limitation contained in this Section 1(d)
applies, the determination of whether this Warrant is exercisable (in relation to other securities owned by the Holder together
with any Affiliates and Attribution Parties) and of which portion of this Warrant is exercisable shall be in the sole discretion
of the Holder, and the submission of a Notice of Exercise shall be deemed to be the Holder’s determination of whether this
Warrant is exercisable (in relation to other securities owned by the Holder together with any Affiliates and Attribution Parties)
and of which portion of this Warrant is exercisable, in each case subject to the Beneficial Ownership Limitation, and the Company
shall have no obligation to verify or confirm the accuracy of such determination. In addition, a determination as to any group
status as contemplated above shall be determined in accordance with Section 13(d) of the Exchange Act and the rules and regulations
promulgated thereunder. For purposes of this Section 1(d), in determining the number of outstanding shares of Common Stock,
a Holder may rely on the number of outstanding shares of Common Stock as reflected in (A) the Company’s most recent periodic
or annual report filed with the Commission, as the case may be, (B) a more recent public announcement by the Company or (C) a
more recent written notice by the Company or the Transfer Agent setting forth the number of shares of Common Stock outstanding.
Upon the written or oral request of a Holder, the Company shall within two (2) Trading Days confirm orally and in writing 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 this Warrant, by the Holder
or its Affiliates or Attribution Parties since the date as of which such number of outstanding shares of Common Stock was reported.
The “Beneficial Ownership Limitation” shall be 4.99% of the number of shares of the Common Stock outstanding
immediately after giving effect to the issuance of shares of Common Stock issuable upon exercise of this Warrant. The Holder,
upon notice to the Company, may increase or decrease the Beneficial Ownership Limitation provisions of this Section 1(d),
provided that the Beneficial Ownership Limitation in no event exceeds 9.99% of the number of shares of the Common Stock outstanding
immediately after giving effect to the issuance of shares of Common Stock upon exercise of this Warrant held by the Holder and
the provisions of this Section 1(d) shall continue to apply. Any increase in the Beneficial Ownership Limitation will not
be effective until the 61st day after such notice is delivered to the Company. The provisions of this paragraph shall
be construed and implemented in a manner otherwise than in strict conformity with the terms of this Section 1(d) to correct
this paragraph (or any portion hereof) which may be defective or inconsistent with the intended Beneficial Ownership Limitation
herein contained or to make changes or supplements necessary or desirable to properly give effect to such limitation. The limitations
contained in this paragraph shall apply to a successor holder of this Warrant.

 

    	5

    	 

    

 

f)
Principal Market Regulation. The Company shall not issue any shares of Common Stock pursuant to the terms of this Warrant
if the issuance of such shares of Common Stock would exceed the aggregate number of shares of Common Stock that the Company may
issue upon exercise of the Warrants in compliance with the Company’s obligations under the rules or regulations of the Nasdaq
Capital Market (“Principal Market”) (the number of shares which may be issued without violating such rules
and regulations, the “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 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. Until such approval or such written opinion is
obtained, the Holder shall not be issued in the aggregate shares of Common Stock upon the exercise of Warrants in an amount greater
than the product of (i) the Exchange Cap as of the issuance date multiplied by (ii) the quotient of (1) the aggregate number of
shares of Common Stock issued to such Holder pursuant to this Warrant on the Initial Exercise Date or any Subsequent Exercise
Date divided by (2) the aggregate number of shares of Common Stock issued to the Holder pursuant to this Warrant on the Initial
Exercise Date or any Subsequent Exercise Date (the “Exchange Cap Allocation”). In the event that any Holder
shall sell or otherwise transfer any of such Holder’s Warrants (or Common Stock), the transferee shall be allocated a pro
rata portion of such Holder’s Exchange Cap Allocation with respect to such portion of such Warrants (or Common Stock) so
transferred, and the restrictions of the prior sentence shall apply to such transferee with respect to the portion of the Exchange
Cap Allocation so allocated to such transferee.

 

Section
2. Certain Adjustments.

 

a)
Stock Dividends and Splits. If the Company, at any time while this Warrant is outstanding: (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 (which, for avoidance of doubt, shall not include any shares of Common Stock issued by the Company
upon exercise of this Warrant), (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 Exercise Price
shall be multiplied by a fraction of which the numerator shall be the number of shares of Common Stock (excluding treasury shares,
if any) outstanding immediately before such event and of which the denominator shall be the number of shares of Common Stock outstanding
immediately after such event, and the number of shares issuable upon exercise of this Warrant shall be proportionately adjusted
such that the aggregate Exercise Price of this Warrant shall adjust proportionately. Any adjustment made pursuant to this Section
2(a) shall become effective immediately after the record date for the determination of stockholders entitled to receive such
dividend or distribution and shall become effective immediately after the effective date in the case of a subdivision, combination
or re-classification.

 

    	6

    	 

    

 

b)
Fundamental Transaction. If, at any time while this Warrant is outstanding, (i) the Company, directly or indirectly, in
one or more related transactions effects any merger or consolidation of the Company with or into another Person (except in the
case of a merger for the purposes of changing the Company’s domicile), (ii) the Company, directly or indirectly, effects
any irrevocable sale, lease, license, assignment, transfer, conveyance or other disposition of all or substantially all of its
assets in one or a series of related transactions, (iii) any, direct or indirect, purchase offer, tender offer or exchange offer
(whether by the Company or another Person) is completed pursuant to which holders of Common Stock are permitted to sell, tender
or exchange their shares for other securities, cash or property and has been accepted by the holders of 50% or more of the outstanding
Common Stock, (iv) the Company, directly or indirectly, in one or more related transactions effects any reclassification, reorganization
or recapitalization of the Common Stock or any compulsory share exchange pursuant to which the Common Stock is effectively converted
into or exchanged for other securities, cash or property, or (v) the Company, directly or indirectly, in one or more related transactions
consummates a stock or share purchase agreement or other business combination (including, without limitation, a reorganization,
recapitalization, spin-off or scheme of arrangement) with another Person or group of Persons whereby such other Person or group
is not affiliated with the Company and acquires more than 50% of the outstanding shares of Common Stock (not including any shares
of Common Stock held by the other Person or other Persons making or party to, or associated or affiliated with the other Persons
making or party to, such stock or share purchase agreement or other business combination) (each a “Fundamental Transaction”),
then, upon any subsequent exercise of this Warrant, the Holder shall have the right to receive, for each Warrant 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 1(d) on the exercise of this Warrant), 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
(the “Alternate Consideration”) receivable as a result of such Fundamental Transaction by a holder of the number
of shares of Common Stock for which this Warrant is exercisable immediately prior to such Fundamental Transaction (without regard
to any limitation in Section 1(d) on the exercise of this Warrant). For purposes of any such exercise, the determination
of the Exercise Price shall be appropriately adjusted to apply to such Alternate Consideration based on the amount of Alternate
Consideration issuable in respect of one share of Common Stock in such Fundamental Transaction, and the Company shall apportion
the Exercise Price among the Alternate Consideration in a reasonable manner reflecting the relative value of any different components
of the Alternate Consideration. If holders of Common Stock are given any choice as to the securities, cash or property to be received
in a Fundamental Transaction, then the Holder shall be given the same choice as to the Alternate Consideration it receives upon
any exercise of this Warrant following such Fundamental Transaction. The Company shall cause any successor entity in a Fundamental
Transaction in which the Company is not the survivor (the “Successor Entity”) to assume in writing all of the
obligations of the Company under this Warrant and the other Transaction Documents in accordance with the provisions of this Section
2(b).

 

    	7

    	 

    

 

c)
Calculations. All calculations under this Section 2 shall be made to the nearest cent or the nearest 1/100th of
a share, as the case may be. For purposes of this Section 2, the number of shares of Common Stock deemed to be issued and
outstanding as of a given date shall be the sum of the number of shares of Common Stock (excluding treasury shares, if any) issued
and outstanding.

 

d)
Notice to Holder.

 

i.
Adjustment to Exercise Price. Whenever the Exercise Price is adjusted pursuant to any provision of this Section 2,
the Company shall promptly deliver to the Holder by facsimile or email a notice setting forth the Exercise Price after such adjustment
and any resulting adjustment to the number of Warrant Shares and setting forth a brief statement of the facts requiring such adjustment.

 

ii.
Notice to Allow Exercise by Holder. If (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 (except in the case of a merger for purposes of changing the Company’s domicile), 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 delivered by facsimile or email to the Holder at its
last facsimile number or email address as it shall appear upon the Warrant Register of the Company, at least ten (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 deliver such notice
or any defect therein or in the delivery thereof shall not affect the validity of the corporate action required to be specified
in such notice. The Holder shall remain entitled to exercise this Warrant 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.

 

    	8

    	 

    

 

Section
3 Transfer of Warrant.

 

a)
Transferability. This Warrant and all rights hereunder (including, without limitation, any registration rights) are transferable,
in whole or in part, upon surrender of this Warrant at the principal office of the Company or its designated agent, together with
a written assignment of this Warrant 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. Upon such surrender and, if required,
such payment, the Company shall execute and deliver a new Warrant or Warrants in the name of the assignee or assignees, as applicable,
and in the denomination or denominations specified in such instrument of assignment, and shall issue to the assignor a new Warrant
evidencing the portion of this Warrant not so assigned, and this Warrant shall promptly be cancelled. Notwithstanding anything
herein to the contrary, the Holder shall not be required to physically surrender this Warrant to the Company unless the Holder
has assigned this Warrant in full, in which case, the Holder shall surrender this Warrant to the Company within three (3) Trading
Days of the date the Holder delivers an assignment form to the Company assigning this Warrant full. The Warrant, if properly
assigned in accordance herewith, may be exercised by a new holder for the purchase of Warrant Shares without having a new Warrant
issued.

 

b)
New Warrants. This Warrant may be divided or combined with other Warrants upon presentation hereof at the aforesaid office
of the Company, together with a written notice specifying the names and denominations in which new Warrants are to be issued,
signed by the Holder or its agent or attorney. Subject to compliance with Section 3(a), as to any transfer which may be
involved in such division or combination, the Company shall execute and deliver a new Warrant or Warrants in exchange for the
Warrant or Warrants to be divided or combined in accordance with such notice. All Warrants issued on transfers or exchanges shall
be dated the original issuance date and shall be identical with this Warrant except as to the number of Warrant Shares issuable
pursuant thereto.

 

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

 

Section
4. Miscellaneous.

 

a)
No Rights as Stockholder Until Exercise. This Warrant does not entitle the Holder to any voting rights, dividends or other
rights as a stockholder of the Company prior to the exercise hereof as set forth in Section 1(c)(i), except as expressly
set forth in Section 2.

 

    	9

    	 

    

 

b)
Loss, Theft, Destruction or Mutilation of Warrant. The Company covenants that upon receipt by the Company of evidence reasonably
satisfactory to it of the loss, theft, destruction or mutilation of this Warrant or any stock certificate relating to the Warrant
Shares, and in case of loss, theft or destruction, of indemnity or security reasonably satisfactory to it (which, in the case
of the Warrant, shall not include the posting of any bond), and upon surrender and cancellation of such Warrant or stock certificate,
if mutilated, the Company will make and deliver a new Warrant or stock certificate of like tenor and dated as of such cancellation,
in lieu of such Warrant or stock certificate.

 

c)
Saturdays, Sundays, Holidays, etc. If the last or appointed day for the taking of any action or the expiration of any right
required or granted herein shall not be a Business Day, then, such action may be taken or such right may be exercised on the next
succeeding Business Day.

 

d)
Authorized Shares. The Company covenants that, during the period the Warrant is outstanding, it will reserve from its authorized
and unissued Common Stock a sufficient number of shares to provide for the issuance of the Warrant Shares upon the exercise of
any purchase rights under this Warrant. The Company further covenants that its issuance of this Warrant shall constitute full
authority to its officers who are charged with the duty of executing stock certificates to execute and issue the necessary Warrant
Shares upon the exercise of the purchase rights under this Warrant. The Company will take all such reasonable action as may be
necessary to assure that such Warrant Shares may be issued as provided herein without violation of any applicable law or regulation,
or of any requirements of the Trading Market upon which the Common Stock may be listed. The Company covenants that all Warrant
Shares which may be issued upon the exercise of the purchase rights represented by this Warrant will, upon exercise of the purchase
rights represented by this Warrant and payment for such Warrant Shares in accordance herewith, 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).

 

The
Company will (i) not increase the par value of any Warrant 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 Warrant Shares upon the exercise of this Warrant and (iii) use commercially
reasonable 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 Warrant.

 

Before
taking any action which would result in an adjustment in the number of Warrant Shares for which this Warrant is exercisable or
in the Exercise Price, 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.

 

e)
Jurisdiction. All questions concerning the construction, validity, enforcement and interpretation of this Warrant shall
be determined in accordance with the provisions of the Securities Purchase Agreement.

 

    	10

    	 

    

 

f)
Restrictions. The Holder acknowledges that the Warrant Shares acquired upon the exercise of this Warrant, if not registered,
will have restrictions upon resale imposed by state and federal securities laws.

 

g)
Non-waiver and Expenses. No course of dealing or any delay or failure to exercise any right hereunder on the part of Holder
shall operate as a waiver of such right or otherwise prejudice the Holder’s rights, powers or remedies. Without limiting
any other provision of this Warrant, if the Company willfully and knowingly fails to comply with any provision of this Warrant,
which results in any material damages to the Holder, the Company shall pay to the Holder such amounts as shall be sufficient to
cover any reasonable costs and expenses including, but not limited to, reasonable attorneys’ fees, including those of appellate
proceedings, incurred by the Holder in collecting any amounts due pursuant hereto or in otherwise enforcing any of its rights,
powers or remedies hereunder.

 

h)
Notices. Any notice, request or other document required or permitted to be given or delivered to the Holder by the Company
shall be delivered in accordance with the notice provisions of the Securities Purchase Agreement.

 

i)
Limitation of Liability. No provision hereof, in the absence of any affirmative action by the Holder to exercise this Warrant
to purchase Warrant Shares, and no enumeration herein of the rights or privileges of the Holder, shall give rise to any liability
of the Holder for the purchase price of any Common Stock or as a stockholder of the Company, whether such liability is asserted
by the Company or by creditors of the Company.

 

j)
Remedies. The Holder, in addition to being entitled to exercise all rights granted by law, including recovery of damages,
will be entitled to specific performance of its rights under this Warrant. The Company agrees that monetary damages would not
be adequate compensation for any loss incurred by reason of a breach by it of the provisions of this Warrant and hereby agrees
to waive and not to assert the defense in any action for specific performance that a remedy at law would be adequate.

 

k)
Successors and Assigns. This Warrant may be assigned by the Holder, subject to the prior written consent of the Company
and in accordance with applicable securities laws, this Warrant and the rights and obligations evidenced hereby shall inure to
the benefit of and be binding upon the successors and permitted assigns of the Company and the successors and permitted assigns
of Holder. The provisions of this Warrant are intended to be for the benefit of any Holder from time to time of this Warrant and
shall be enforceable by the Holder or holder of Warrant Shares.

 

l)
Amendment. This Warrant may be modified or amended or the provisions hereof waived with the written consent of the Company
and the Holder.

 

m)
Severability. Wherever possible, each provision of this Warrant shall be interpreted in such manner as to be effective
and valid under applicable law, but if any provision of this Warrant shall be prohibited by or invalid under applicable law, such
provision shall be ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of such provisions
or the remaining provisions of this Warrant.

 

n)
Headings. The headings used in this Warrant are for the convenience of reference only and shall not, for any purpose, be
deemed a part of this Warrant.

 

[Signature
Page Follows]

 

[The
Remainder of This Page is Intentionally Blank]

 

    	11

    	 

    

 

IN
WITNESS WHEREOF, the Company has caused this Warrant to be executed by its officer thereunto duly authorized as of the date
first above indicated.

 

	MAGNEGAS
    APPLIED TECHNOLOGY SOLUTIONS, INC.	 
	 	 
	By:
    	 	 
	Name:	Ermanno
    Santilli	 
	Title:	Chief
    Executive Officer	 

 

    	12

    	 

    

 

NOTICE
OF EXERCISE

 

TO:
Magnegas APPLIED TECHNOLOGY SOLUTIONS, INC.

 

(1)
The undersigned hereby elects to purchase _____________________ Warrant Shares of the Company pursuant to the terms of the attached
Warrant (only if exercised in full), and tenders herewith payment of the exercise price in full, together with all applicable
transfer taxes, if any.

 

(2)
Please issue said Warrant Shares in the name of the undersigned or in such other name as is specified below:

 

	 	 	 

 

The
Warrant Shares shall be delivered to the following DWAC Account Number:

 

	 	 	 

 

	 	 	 

 

	 	 	 

 

[SIGNATURE
OF HOLDER]

 

	Name
    of Investing Entity:	 

 

	Signature
    of Authorized Signatory of Investing Entity: 	 

 

	Name
    of Authorized Signatory: 	 

 

	Title
    of Authorized Signatory: 	 

 

	Date:
    	 

 

    	13

    	 

    

 

ASSIGNMENT
FORM

 

(To
assign the foregoing Warrant, execute this form and supply required information. Do not use this form to purchase shares.)

 

FOR
VALUE RECEIVED, the foregoing Warrant and all rights evidenced thereby are hereby assigned to

 

	Name:	 	 
	 	 	(Please
    Print)
	 	 	 
	Address:	 	 
	 	 	(Please
    Print)
	 	 	 
	Phone
    Number:	 	 
	 	 	 
	Email
    Address:	 	 
	 	 	 
	Dated:
    _______________ __, ______	 	 
	 	 	 
	Holder’s
    Signature: _______________________________	 	 
	 	 	 
	Holder’s
    Address: ________________________________	 	 

 

    	14

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