Document:

Exhibit 10.2

 

THIS
CONVERTIBLE PROMISSORY NOTE (THE “NOTE”) AND THE SECURITIES THAT MAY BE ISSUABLE UPON CONVERSION HEREOF HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”) OR UNDER THE SECURITIES LAWS OF ANY
STATE (“BLUE SKY LAWS”). THIS NOTE HAS BEEN ACQUIRED FOR INVESTMENT PURPOSES AND NOT WITH A VIEW TO THE DISTRIBUTION
THEREOF. THIS NOTE AND THE SECURITIES THAT MAY BE ISSUABLE UPON CONVERSION HEREOF MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR
HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT AND REGISTRATION OR QUALIFICATION
UNDER APPLICABLE BLUE SKY LAWS OR AN APPROPRIATE EXEMPTION REGARDING THE SAME.

 

HEALTH-RIGHT
DISCOVERIES, INC.

 

CONVERTIBLE
PROMISSORY NOTE

 

	$2,500,000	September 29, 2017

 

FOR
VALUE RECEIVED, the undersigned, HEALTH-RIGHT DISCOVERIES, INC., a Florida corporation (the “Company”),
hereby promises to pay to the order of HUNTER BURROUGHS (the “Holder”) the principal amount of TWO
MILLION FIVE HUNDRED THOUSAND AND NO/100 DOLLARS ($2,500,000), subject to adjustment as set forth herein, without interest
thereon on and subject to the other terms and conditions set forth herein.

 

1.          Definitions.     In
addition to the capitalized terms defined elsewhere in this Note, the following terms have the meanings indicated:

 

“Business
Day” means any day other than a Saturday, Sunday or other day on which banks in Rogers, Arkansas are required or permitted
to be closed for business.

 

“Conversion
Date” means the date a Conversion Notice is delivered to the Company.

 

“Conversion
Notice” means a written notice in the form attached as Exhibit A hereto.

 

“Conversion
Price” shall mean a price equal to 50% of the average closing price for the Shares as reported by the principal market
on which they are traded during the thirty (30) trading days prior to the applicable Due Date, as adjusted from time to time as
provided herein.

 

“Due
Date” means each of the first, second, third, fourth and fifth anniversaries of the Original Issuance Date.

 

“Default
Rate” shall mean seventeen percent (17%) per annum.

 

“Original
Issuance Date” means September __ 2017.

 

“Person”
means any individual or entity.

 

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“Principal
Amount” means Two Million Five Hundred Thousand and No/100 Dollars ($2,500,000), subject to adjustment as set forth
in Section 3.

 

“SEC”
means the U.S. Securities and Exchange Commission.

 

“Securities
Act” means the Securities Act of 1933, as amended.

 

“Shares”
means shares of the Company’s common stock, par value $0.001.

 

“Subsidiaries”
means Common Compounds, Inc., an Arkansas corporation (“CCI”) and EZpharmaRX, LLC, an Arkansas limited liability
company (“EZRX”), which are wholly-owned subsidiaries of the Company.

 

2.         Payment
of Principal Amount; Adjustments to Principal Amount; Subordination; Prepayment.

 

(a)       Subject
to prepayment or conversion as provided for elsewhere in this Note, the Company shall pay to the Holder the Principal Amount,
without interest thereon (except after an Event of Default), in five (5) equal annual installments of Five Hundred Thousand and
No/100 Dollars ($500,000), on each Due Date. Payments of the Principal Amount hereunder shall be paid in lawful money of the United
States of America in immediately available federal funds or the equivalent at the address of the Holder set forth in Section
6 or at such other address as the Holder may designate to the Company in writing. Upon payment in full of the Principal Amount,
the Holder shall surrender this Note to the Company for cancellation.

 

(b)       Notwithstanding
anything else set forth herein, if the Subsidiaries, on a combined basis, fail to meet the financial target for the year ending
December 31, 2017 as set forth on Exhibit A to this Note, then the Principal Amount of this Note shall be reduced to $2,377,400.00,
retroactive to the Original Issue Date, and the payment to the Holder on the first Due Date shall equal $377,400.00 (rather than
$500,000.00). If the Subsidiaries, on a combined basis, fail to meet the financial target for the year ending December 31, 2018
as set forth on Exhibit A to this Note, the Principal Amount of this Note shall be reduced to $1,887,000 or $2,009,600
(depending upon whether the 2017 financial target was met), retroactive to the Original Issuance Date, and the payment to the
Holder on the remaining Due Dates shall equal $377,400.00.

 

(c)       This
Note is the direct obligation of the Company chargeable against all of its property, whatsoever and wheresoever, both present
and future, and, if divided into separate Notes, all such Notes shall rank equally and ratably without preference or priority
of any of said Notes over any others thereof. Further, this Note, together with any other Notes described in the prior sentence
(ranking pari passu as among themselves), shall be subordinated to all senior indebtedness of the Company designated as
such now or hereinafter outstanding, including, without limitation, up to $5,000,000 in principal amount of senior secured convertible
indebtedness incurred by the Company from GPB Debt Holdings II, LLC, contemporaneously with the issuance of this Note by the Company
in favor of the Holder on the Original Issuance Date.

 

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(d)       The
Principal Amount of this Note may be prepaid by the Company, in whole or in part, without the written consent of the Holder.

 

3.       Conversion
into Shares.

 

(a)       Upon
each Due Date, the Holder, at his sole option, may elect to convert the annual installment of the Principal Amount then due under
the Note into Shares at the then applicable Conversion Price. The Holder shall have the sole option to convert the annual installment
of the Principal Amount then due under the Note into Shares if the applicable Conversion Price is Two and No/100 Dollar ($2.00)
or more. The Holder and the Company must mutually agree in writing in order for the Holder to convert the annual installment of
the Principal Amount then due under the Note into Shares if the applicable Conversion Price is less than Two and No/100 Dollar
($2.00).

 

(b)       The
Holder shall effect conversions under this Section 3(a) by delivering to the Company a conversion notice in substantially
the form of Exhibit A attached hereto (the “Conversion Notice”).

 

(c)       The
Company covenants that it will at all times reserve and keep available enough of its Shares for the purpose of enabling it to
issue Shares as required hereunder (taking into account the adjustments set forth in Section 5) and keep the same free
from preemptive rights or any other contingent purchase rights of Persons other than the Holder. The Company covenants that all
Shares so issuable and deliverable shall, upon issuance in accordance with the terms hereof, be duly and validly authorized and
issued and fully paid and nonassessable.

 

4.          Mechanics
of Conversion.

 

(a)       Upon
conversion of any payment pursuant to this Note, the Company shall, as soon as practicable (but in no event later than five (5)
Business Days after the Conversion Date) issue or cause to be issued and cause to be delivered to or upon the written order of
the Holder and in such name or names as the Holder may designate a certificate for DWAC electronic transfer of the Shares or DWAC
electronic transfer (if available) of the Shares issuable upon such conversion, with such restrictive legends as required by the
Company pursuant to the Securities Act. The Holder, or any Person so designated by the Holder to receive Shares, shall be deemed
to have become holder of record of such Shares as of the Conversion Date.

 

(b)       The
Company’s obligations to issue and deliver Shares upon conversion of this Note in accordance with the terms hereof are absolute
and unconditional, irrespective of any action or inaction by the Holder to enforce the same, any waiver or consent with respect
to any provision hereof, the recovery of any judgment against any Person or any action to enforce the same, or any set-off, counterclaim,
recoupment, limitation or termination, or any breach or alleged breach by the Holder or any other Person of any obligation to
the Company or any violation or alleged violation of law by the Holder or any other Person, and irrespective of any other circumstance
which might otherwise limit such obligation of the Company to the Holder in connection with the issuance of such Shares.

 

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(c)       The
Company shall not issue or cause to be issued fractional Shares on conversion of this Note. If any fraction of a Share would,
except for the provisions of this Section 4(c), be issuable upon conversion of this Note, the number of Shares to be issued
will be rounded up to the nearest whole share.

 

5.          Certain
Adjustments.          The Conversion Price is subject to adjustment from time to time as set forth in this Section 5.

 

(a)          Stock
Dividends and Splits.  If the Company, at any time while this Note is outstanding, (i) pays a stock dividend on its
Shares or otherwise makes a distribution on any class of capital stock that is payable in Shares; (ii) subdivides outstanding
Shares into a larger number of Shares; or (iii) combines outstanding Shares into a smaller number of Shares, then in each such
case the Conversion Price shall be appropriately and equitably adjusted to reflect such event. Any adjustment made pursuant to
Section 5(a)(i) shall become effective immediately after the record date for the determination of shareholders entitled
to receive such dividend or distribution, and any adjustment pursuant to Section 5(a)(ii) or Section 5(a)(iii) shall
become effective immediately after the effective date of such subdivision or combination.

 

(b)          Adjustment
for Other Dividends and Distributions.          If the Company shall at any time or from time to time after the date hereof,
make or issue or set a record date for the determination of holders of Shares entitled to receive a dividend or other distribution
payable in other than Shares, then, and in each event, an appropriate revision to the applicable Conversion Price shall be made
and provision shall be made (by adjustments of the Conversion Price or otherwise) so that the holders of this Note shall receive
upon conversions thereof, in addition to the number of Shares receivable thereon, the number of securities of the Company or other
issuer (as applicable) which they would have received had this Note been converted into Shares on the date of such event and had
thereafter, during the period from the date of such event to and including the Conversion Date, retained such securities (together
with any distributions payable thereon during such period), giving application to all adjustments called for during such period
under this Note, provided, however, that if such record date shall have been fixed and such dividend is not fully paid
or if such distribution is not fully made on the date fixed therefor, the Conversion Price shall be adjusted pursuant to this
Section 5(b) as of the time of actual payment of such dividends or distributions.

 

(c)       Adjustments
for Reclassification, Exchange or Substitution. If the Shares issuable upon conversion of this Note at any time or from
time to time after the date hereof shall be changed to the same or different number of shares of any class or classes of stock,
whether by reclassification, exchange, substitution or otherwise (other than by way of a stock split or combination of shares
or stock dividends provided for in this Section 5), then, and in each event, an appropriate revision to the Conversion
Price shall be made and provisions shall be made (by adjustments of the Conversion Price or otherwise) so that the Holder shall
have the right thereafter to convert this Note into the kind and amount of shares of stock and other securities receivable upon
reclassification, exchange, substitution or other change, by holders of the number of Shares into which such Note might have been
converted immediately prior to such reclassification, exchange, substitution or other change, all subject to further adjustment
as provided herein.

 

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(d)          Calculations.  All
calculations under this Section 5 shall be made to the nearest cent or the nearest 1/100th of a share, as applicable. The
number of Shares outstanding at any given time shall not include shares owned or held by or for the account of the Company.

 

(e)          Notice
of Adjustments.          Upon the occurrence of each adjustment pursuant to this Section 5, the Company, at its expense,
will promptly compute such adjustment in accordance with the terms hereof and prepare and deliver to the Holder a certificate
describing in reasonable detail such adjustment and the transactions giving rise thereto, including all facts upon which such
adjustment is based.

 

(f)          No
Impairment.          The Company shall not, by amendment of its Articles of Incorporation or through any reorganization, transfer
of assets, consolidation, merger, dissolution, issue or sale of securities or any other voluntary action, impair the rights of
Holder or avoid or seek to avoid the observance or performance of any of the terms to be observed or performed hereunder by the
Company, but will at all times act in good faith and assist in the carrying out of all the provisions of this Section 5
and in the taking of all such action as may be necessary or appropriate in order to protect the conversion rights of the Holder
against impairment.

 

(g)          Notice
of Corporate Events.          If the Company: (i) declares a dividend or any other distribution of cash, securities or other
property in respect of its Shares, including without limitation any granting of rights or warrants to subscribe for or purchase
any capital stock of the Company; (ii) authorizes or approves, enters into any agreement contemplating, or solicits shareholder
approval for, any merger, consolidation or similar transaction in which the Company is not the surviving entity; or (iii) authorizes
the voluntary dissolution, liquidation or winding up of the affairs of the Company, then the Company shall deliver to the Holder
a notice describing the material terms and conditions of such transaction, at least ten (10) Business Days prior to the applicable
record or effective date on which a Person would need to hold Shares in order to participate in or vote with respect to such transaction,
and the Company will take all steps reasonably necessary in order to insure that the Holder is given the practical opportunity
to convert this Note prior to such time so as to participate in or vote with respect to such transaction.

 

6.          Notices.          Any
and all notices or other communications or deliveries required or permitted to be provided hereunder shall be in writing, shall
be delivered by nationally recognized overnight courier and shall be deemed given and effective upon receipt.

 

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The
address for such notices and communications shall be as follows:

 

	If to the Company:	18851 N.E. 29th
    Avenue
	 	Suite 700
	 	Aventura, FL 33180
	 	Attention: President
	 	 
	If to the Holder:	P.O. Box 1784
	 	Bentonville, Arkansas 72712
	 	Attention: Mr. Hunter Burroughs

 

or
such other address as may be designated in writing hereafter, in the same manner, by the Company or the Holder.

 

7.             Default
and Remedies.

 

(a)           An
“Event of Default” under this Note shall mean the occurrence of any of the following events:

 

●          If
the Company shall fail to make within ten (10) Business Days after a Due Date or upon acceleration of this Note, payment of the
Principal Amount then due;

 

●          The
Company shall fail to observe or perform any covenant or agreement contained in this Note which failure is not cured, if possible
to cure, within ten (10) Business Days after notice to the Company of such default sent by the Holder or by any other Holder;

 

●          The
sale of substantially all the assets of either of the Subsidiaries and/or the Company; or

 

●          The
commencement by the Company of any bankruptcy, insolvency, receivership or similar proceedings under any federal or applicable
state law; or the commencement against the Company of any bankruptcy, insolvency, receivership or similar proceeding under any
federal or applicable state law by creditors of the Company or other similar law of any jurisdiction, provided, that such proceeding
shall not be deemed an Event of Default if such proceeding is dismissed within thirty (30) days of commencement.

 

(b)       Upon
and during the continuation of an Event of Default, (i) the Holder may declare the outstanding Principal Amount immediately due
and payable; (ii) such unpaid Principal Amount shall accrue interest at the Default Rate commencing upon the date the Event of
Default occurs (after the expiration of the grace and cure periods set forth above) until paid in full; (iii) and such amounts
shall be collectible immediately or at any time after such Event of Default. The rights and remedies provided by this Note shall
be cumulative, and shall be in addition to, and not exclusive of, any other rights and remedies available at law or in equity.

 

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8.            Covenants
of Company.

 

The
Company covenants and agrees that, so long as this Note shall be outstanding, it will:

 

(a)       promptly
pay and discharge all lawful taxes, assessments, and governmental charges or levies imposed upon the Company or upon its income
and profits, or upon any of its property, before the same shall become in default, as well as all lawful claims for labor, materials
and supplies which, if unpaid, might become a lien or charge upon such properties or any part thereof; provided, however,
that the Company shall not be required to pay and discharge any such tax, assessment, charge, levy or claim so long as the validity
thereof shall be contested in good faith by appropriate proceedings and the Company shall set aside on its books adequate reserves
with respect to any such tax, assessment, charge, levy or claim so contested;

 

(b)       do
or cause to be done all things necessary to preserve and keep in full force and effect its corporate existence, rights and franchises
and comply with all laws applicable to the Company as its counsel may advise;

 

(c)       at
all times maintain, preserve, protect and keep its property used or useful in the conduct of its business in good repair, working
order and condition, and from time to time make all needful and proper repairs, renewals, replacements, betterments and improvements
thereto, so that the business carried on in connection therewith may be properly and advantageously conducted at all times;

 

(d)       keep
adequately insured, by financially sound reputable insurers, all property of a character usually insured by similar corporations
and carry such other insurance as is usually carried by similar corporations; and

 

(e)       at
all times, keep true and correct books, records and accounts.

 

9.           Assignability.               Neither
party may assign this Note without the prior consent of the other party. No such assignment shall constitute a novation or release
of the Company of the obligations hereof or from any liability to the Holder.

 

10.          Usury
Laws.               It is the intention of the Company and the Holder to conform strictly to all applicable usury laws now or
hereafter in force, and any interest payable under this Note shall be subject to reduction to an amount that is the maximum legal
amount allowed under the applicable usury laws as now or hereafter construed by the courts having jurisdiction over such matters.
The aggregate of all interest (whether designated as interest, service charges, points or otherwise) contracted for, chargeable,
or receivable under this Note shall under no circumstances exceed the maximum legal rate upon the principal amount remaining unpaid
from time to time. If such interest does exceed the maximum legal rate, it shall be deemed a mistake and such excess shall be
canceled automatically and, if theretofore paid, rebated to the Company or credited on the principal amount, or if this Note has
been repaid, then such excess shall be rebated to the Company.

 

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11.           Miscellaneous.

 

(a)       Any
amendment hereto or waiver of any provision hereof must be in writing and signed by both the Company and the Holder.

 

(b)       Wherever
in this Note reference is made to the Company or the Holder, such reference shall be deemed to include, as applicable, a reference
to their respective permitted successors and permitted assigns, and the provisions of this Note shall be binding upon and shall
inure to the benefit of such successors and permitted assigns.

 

(c)       The
captions of the Sections of this Note are inserted solely for ease of reference and shall not be considered in the interpretation
or construction of this Note.

 

(d)       The
Company waives presentment, notice and demand, notice of protest, notice of demand and dishonor, and notice of nonpayment of this
Note.

 

(e)       This
Note shall be governed by and construed in accordance with the internal laws of the State of Florida, without giving effect to
any of the conflicts of law principles which would result in the application of the substantive law of another jurisdiction. This
Note shall not be interpreted or construed with any presumption against the party causing this Note to be drafted.

 

(f)       In
the event that any provision of this Note is invalid or unenforceable under any applicable statute or rule of law, then such provision
shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed modified to conform to such statute
or rule of law. Any such provision which may prove invalid or unenforceable under any law shall not affect the validity or enforceability
of any other provision of this Note. Nothing contained herein shall be deemed or operate to preclude the Holder from bringing
suit or taking other legal action against the Company in any other jurisdiction to collect on the Company’s obligations
to the Holder, to realize on any collateral or any other security for such obligations, or to enforce a judgment or other court
ruling in favor of the Holder.

 

(g)      THE
COMPANY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE
HEREUNDER OR IN CONNECTION WITH OR ARISING OUT OF THIS NOTE OR ANY TRANSACTION CONTEMPLATED HEREBY.

 

(h)      No
delay in the exercise of any right or remedy of any party hereto shall operate as a waiver thereof, and no single or partial exercise
of any such right or remedy shall preclude other or future exercise thereof or the exercise of any other right or remedy.

 

(i)        It
is expressly understood and agreed by the parties hereto that if it is necessary to enforce payment of this Note through the engagement
or efforts of an attorney or by suit, the Company shall pay reasonable attorneys’ fees, expenses of counsel, and other costs
of collection actually incurred by the Holder.

 

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(j)       Any
payment made on this Note after the occurrence of an Event of Default shall be applied first to costs of collection, then to accrued
interest at the Default Rate and the balance to payment of the then outstanding Principal Amount.

 

[SIGNATURE
PAGE FOLLOWS]

 

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IN
WITNESS WHEREOF, the Company has executed this Note as of the day and year first above written.

	 	 	 
	 	THE
COMPANY:
	 	 
	 	HEALTH-RIGHT
DISCOVERIES, INC.
	 	 
		By: 	/s/ David Hopkins
	 	 	David Hopkins, President

 

	 	 
	ACCEPTED
AND ACKNOWLEDGED:	 
	 	 
	THE HOLDER:	 
	 	 
	/s/
Hunter Burroughs	 
	Hunter
Burroughs	 

 

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EXHIBIT
A

 

SUBSIDIARIES
FINANCIAL TARGETS

 

2017
Financial Targets

 

CCI
and EZRX must achieve, on a combined basis, gross revenues of at least $11,071,388.

 

2018
Financial Targets

 

CCI
and EZRX must achieve, on a combined basis, gross revenues of at least $12,178,526.60.

 

All
gross revenue amounts will be determined in accordance with generally accepted accounting principles consistently applied and
shall be consistent with such amounts as reported on the Company’s Tax Returns for such period. The Parties hereby agree
that HRD shall make the initial calculation regarding the 2017 and 2018 Financial Targets recited above and shall transmit such
calculation to the Shareholder within thirty (30) days prior to the payments due under the Note during 2018 and 2019. The Shareholder
has a right to audit such books and records of the Company as he deems fit regarding any such calculation and both HRD and the
Company hereby agree to cooperate in full with such audit by providing all applicable documents relating to such gross revenue
calculation. In the event of a dispute regarding such calculation, the Parties hereby agree to use the Accountants to resolve
such dispute in the same manner as contemplated by Section 1.4 of the Securities Purchase Agreement among the Parties dated
August __, 2017. All capitalized terms no otherwise defined in this Note shall have the meanings given to such capitalized terms
in the aforesaid Securities Purchase Agreement.

 

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EXHIBIT
B

 

FORM
OF CONVERSION NOTICE

 

(To
be executed by the Holder in order to convert Note)

 

The
undersigned hereby elects to convert the principal amount and accrued by unpaid interest on the Convertible Promissory Note to
which this Conversion Notice is attached (the “Note”) into shares of common stock (“Shares”)
of Health-Right Discoveries, Inc., a Florida corporation, according to the conditions hereof, as of the date written below.

	 	 
	 	Date to Effect Conversion
	 	 
	 	Principal Amount Converted
	 	 
	 	Conversion Price
	 	 
	 	Number of Shares to be Issued
	 	 
	 	Name of the Holder
	 	 
	 	Signature of the Holder

 

    	12 | P a g eExhibit 10.3

 

SECURITIES
PURCHASE AGREEMENT

 

This Securities Purchase
Agreement (this “Agreement”) is dated as of September 29, 2017, between Health-Right Discoveries, Inc. (the “Company”),
and the purchaser identified on the signature page hereto (including its successors and assigns, “Purchaser”).

 

WHEREAS, subject to
the terms and conditions set forth in this Agreement and pursuant to an exemption from the registration requirements of Section
5 of the Securities Act contained in Section 4(a)(2) thereof and/or Rule 506(b) thereunder, the Company desires to issue and sell
to Purchaser, and Purchaser desires to purchase from the Company, securities of the Company as more fully described in this Agreement.

 

NOW, THEREFORE, IN
CONSIDERATION of the mutual covenants contained in this Agreement, and for other good and valuable consideration the receipt and
adequacy of which are hereby acknowledged, the Company and Purchaser agree as follows:

 

ARTICLE I.

DEFINITIONS

 

1.1           Definitions.
In addition to the words and terms defined elsewhere in this Agreement, for all purposes of this Agreement, the following terms
have the meanings set forth in this Section 1.1:

 

“Action”
shall have the meaning ascribed to such term in Section 3.1(j).

 

“Affiliate”
means any Person that, directly or indirectly through one or more intermediaries, controls or is controlled by or is under common
control with a Person as such terms are used in and construed under Rule 405 under the Securities Act.

 

“Acquisitions”
shall have the meaning ascribed to such term in Section 4.9.

 

“Board of Directors”
means the board of directors of the Company.

 

“Burroughs Note”
means that $2,500,000 promissory note of the Company to be issued at the closing of the Acquisitions.

 

“Business Day”
means any day except any Saturday, any Sunday, any day which is a federal legal holiday in the United States or any day on which
banking institutions in the State of New York are authorized or required by law or other governmental action to close.

 

“Closing”
means the closing of the purchase and sale of the Securities pursuant to Section 2.1.

 

“Closing Date”
means the Business Day on which all of the Transaction Documents have been executed and delivered by the applicable parties thereto
pursuant to Section 2.2(a) and Section 2.2(b), and all conditions precedent to (i) Purchaser’s obligations to pay the Subscription
Amount and (ii) the Company’s obligations to deliver the Securities, in each case, have been satisfied or waived.

 

“Common Stock”
means the common stock of the Company, par value $0.001 per share, and any other class of securities into which such securities
may hereafter be reclassified or changed.

 

“Common Stock
Equivalents” means any securities of the Company or the Subsidiaries which would entitle the holder thereof to acquire at
any time Common Stock, including, without limitation, any debt, preferred stock, right, option, warrant or other instrument that
is at any time convertible into or exercisable or exchangeable for, or otherwise entitles the holder thereof to receive, Common
Stock.

 

     

     

    

 

“Company Counsel”
means Gutiérrez Bergman Boulris, PLLC.

 

“Conversion Price”
shall have the meaning set forth in the Note.

 

“Conversion Shares”
means the Common Stock issuable upon conversion of the Note.

 

“Deposit Account
Control Agreement” means an agreement in writing, in form and substance satisfactory to the Purchaser and the Company, by
and among Purchaser, the Company and any bank at which any deposit account of the Company is at any time maintained which provides
that, upon and during the continuation of an Event of Default (as defined in the Note), such bank will comply with instructions
originated by the Purchaser directing disposition of the funds in the deposit account without further consent by Company and such
other terms and conditions as the Purchaser may require.

 

“DTC” means
the Depository Trust Company.

 

“Effectiveness
Date” shall have the meaning ascribed to such term in Section 4.3.

 

“Exchange Act”
means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

 

“Exempt Issuance”
means the issuance of (a) securities to employees, officers or directors of, or consultants to, the Company, pursuant to any stock
or option plan duly adopted for such purpose, or upon approval by a majority of the non-employee members of the Board of Directors
or a majority of the members of a committee of non-employee directors established for such purpose for services rendered to the
Company, (b) securities upon the exercise or exchange of or conversion of any Securities issued hereunder and/or other Common Stock
Equivalents issued and outstanding on the date of this Agreement, provided that such securities have not been amended since the
date of this Agreement to increase the number of such securities or to decrease the exercise price, exchange price or conversion
price of such securities (other than automatically pursuant to their terms, or in connection with stock splits or combinations)
or to extend the term of such securities, (c) securities issued pursuant to any purchase money equipment loan or capital leasing
arrangement, real property leasing arrangement or debt financing from a commercial bank or similar financial institution, (d) securities
in full or partial consideration in connection with a bona fide strategic merger, acquisition, consolidation or purchase of all
or substantially all of the securities or assets of a corporation or other entity, so long as such issuance is not for the primary
purpose of raising capital by the Company; and (e) securities upon a stock split, stock dividend or subdivision of the Common
Stock.

 

“GAAP”
shall have the meaning ascribed to such term in Section 3.1(h).

 

“Indebtedness”
shall have the meaning ascribed to such term in Section 3.1(x).

 

“Intellectual
Property” means all of the following in any jurisdiction throughout the world: (a) all inventions (whether patentable or
unpatentable and whether or not reduced to practice), all improvements thereto, and all U.S. and foreign patents, patent applications,
and patent disclosures, together with all reissuances, continuations, continuations-in-part, revisions, extensions, and reexaminations
thereof, (b) all trademarks, service marks, brand names, certification marks, trade dress, logos, trade names, domain names, assumed
names and corporate names, together with all colorable imitations thereof, and including all goodwill associated therewith, and
all applications, registrations, and renewals in connection therewith, (c) all copyrights, and all applications, registrations,
and renewals in connection therewith, (d) all trade secrets under applicable state Laws and the common Law and know-how (including
formulas, techniques, technical data, designs, drawings, specifications, customer and supplier lists, pricing and cost information,
and business and marketing plans and proposals), (e) all computer software (including source code, object code, diagrams, data
and related documentation), and (f) all copies and tangible embodiments of the foregoing (in whatever form or medium).

 

    2 

     

    

 

“Intellectual
Property Agreement” has the meaning set forth in Section 3.1(o).

 

“Liens”
means a lien, charge, pledge, security interest, encumbrance, right of first refusal, preemptive right or other restriction.

 

“Material Adverse
Effect” means: (i) a material adverse effect on the legality, validity or enforceability of any Transaction Document, (ii)
a material adverse effect on the results of operations, assets, business, prospects or condition (financial or otherwise) of the
Company and the Subsidiaries, taken as a whole, in the long term or (iii) a material adverse effect on the Company’s ability
to perform in any material respect on a timely basis its obligations under any Transaction Document; provided, however, that none
of the following shall be taken into account in determining whether there has been, or could be, a Material Adverse Effect: (a)
any adverse change, event, development, or effect (whether short-term or long-term) arising from or relating to (1) general business
or economic conditions, including such conditions related to the business of the Company and its Subsidiaries, (2) any national
or international political or social conditions, (3) financial, banking, or securities markets (including any disruption thereof
and any decline in the price of any security or any market index), (4) changes in GAAP, (5) changes in laws, rules, regulations,
orders, or other binding directives issued by any governmental entity, or (6) the taking of any action contemplated by any Transaction
Document, (b) any failure to meet a forecast (whether internal or published) of revenue, earnings, cash flow, or other data for
any period or any change in such a forecast, and (c) any existing event, occurrence, or circumstance with respect to which Purchaser
has knowledge as of the date hereof.

 

“Material Permits”
shall have the meaning ascribed to such term in Section 3.1(m).

 

“Note”
means the $5,000,000 face value original issue discount Senior Secured Convertible Note issued to the Purchaser, in the form of
Exhibit A attached hereto, which shall be secured pursuant to the Security Agreement.

 

“Permitted Liens”
shall have the meaning set forth in the Note.

 

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

 

“Placement Agent”
means RHK Capital, LLC.

 

“Pre-Notice”
shall have the meaning ascribed to such term in Section 4.7(a).

 

“Proceeding”
means an action, claim, suit, investigation or proceeding (including, without limitation, an informal investigation or partial
proceeding, such as a deposition), whether commenced or threatened.

 

“Purchaser Party”
shall have the meaning ascribed to such term in Section 4.5.

 

“Registration
Statement” shall have the meaning ascribed to such term in Section 4.3.

 

“Registrable
Securities” shall have the meaning ascribed to such term in Section 4.3.

 

“Required Approvals”
shall have the meaning ascribed to such term in Section 3.1(e).

 

    3 

     

    

 

“Required Minimum”
means, as of any date, the maximum aggregate number of shares of Common Stock then issued or potentially issuable in the future
pursuant to the Transaction Documents, including any Conversion Shares issuable upon conversion of the Note ignoring any conversion
limits set forth therein.

 

“Rule 144”
means Rule 144 promulgated by the SEC pursuant to the Securities Act, as such Rule may be amended or interpreted from time to time,
or any similar rule or regulation hereafter adopted by the SEC having substantially the same purpose and effect as such Rule.

 

“SEC” means
the United States Securities and Exchange Commission.

 

“SEC Reports”
shall have the meaning ascribed to such term in Section 3.1(h).

 

“Securities”
means the Note, the Shares, and the Conversion Shares.

 

“Securities Act”
means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

 

“Security Agreement”
means the security agreement, in the form of Exhibit C, providing the Purchaser with a first lien on all of the assets of
the Company other than as provided in this Agreement.

 

“Shares”
means the shares of Common Stock issued to the Purchaser at the Closing, representing fifteen percent (15%) of the fully-diluted
shares of Common Stock of the Company outstanding as of the Closing Date after giving effect to the issuance of shares of Common
Stock in connection with the contemporaneous consummation by the Company of the Acquisitions (excluding shares of Common Stock
issuable upon conversion of the Burroughs Note).

 

“Subscription
Amount” means the aggregate amount to be paid for the Note and Shares purchased hereunder as specified below the Purchaser’s
name on the signature page of this Agreement and next to the heading “Subscription Amount,” in United States dollars
and in immediately available funds.

 

“Subsidiary”
means with respect to any entity at any date, any direct or indirect corporation, limited or general partnership, limited liability
company, trust, estate, association, joint venture or other business entity of which (A) more than 30% of (i) the outstanding
capital stock having (in the absence of contingencies) ordinary voting power to elect a majority of the board of directors or other
managing body of such entity, (ii) in the case of a partnership or limited liability company, the interest in the capital
or profits of such partnership or limited liability company or (iii) in the case of a trust, estate, association, joint venture
or other entity, the beneficial interest in such trust, estate, association or other entity business is, at the time of determination,
owned or controlled directly or indirectly through one or more intermediaries, by the Company, or (B) is under the actual control
of the Company.

 

“Trading Day”
means a day on which the principal Trading Market is open for trading.

 

“Trading Market”
means any of the following markets or exchanges on which the Common Stock is listed or quoted for trading on the date in question:
the NYSE MKT, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market, the New York Stock Exchange,
the OTCQB or the OTCQX (or any successors to any of the foregoing).

 

“Transaction
Documents” means this Agreement, the Note, the Security Agreement, and any other documents or agreements executed in connection
with the transactions contemplated hereunder.

 

    4 

     

    

 

“Transfer Agent” means VStock
Transfer, LLC, the current transfer agent of the Company, with a mailing address of 18 Lafayette Place, Woodmere, New York 11598
and any successor transfer agent of the Company.

 

“Variable Rate
Transaction” shall have the meaning ascribed in Section 4.8(a).

 

ARTICLE II.

PURCHASE AND SALE

 

2.1           Purchase
and Closing.  On the Closing Date, upon the terms and subject to the conditions set forth herein, the Company agrees to
sell, and the Purchaser agrees to purchase, the Shares and the Note. Purchaser shall deliver to the Company, via wire transfer,
immediately available funds equal to the Subscription Amount, and the Company shall deliver to the Purchaser the Shares and the
Note on the Closing Date, and the Company and the Purchaser shall deliver the other items set forth in Section 2.2 deliverable
at the Closing. Upon satisfaction of the covenants and conditions set forth in Sections 2.2 and 2.3, the Closing shall occur at
the offices of Company Counsel or such other location as the parties shall mutually agree.

 

2.2           Deliveries.

 

(a)           On
or prior to the Closing, the Company shall deliver or cause to be delivered to Purchaser the following:

 

(i)            this
Agreement duly executed by the Company;

 

(ii)           the
Security Agreement duly executed by the Company;

 

(iii)          the
Note registered in the name of Purchaser and duly executed by the Company;

 

(iv)          a
certificate evidencing the Shares registered in the name of Purchaser; and

 

(v)           the
Confession of Judgment, duly executed by the Company and notarized.

 

(b)           On
or prior to the Closing, Purchaser shall deliver or cause to be delivered to the Company the following:

 

(i)            this
Agreement duly executed by the Purchaser;

 

(ii)           the
Security Agreement duly executed by Purchaser; and

 

(iii)          the
Subscription Amount by wire transfer in immediately available funds.

 

2.3           Closing
Conditions.

 

(a)           The
obligations of the Company hereunder in connection with the Closing are subject to the following conditions being met:

 

(i)            the
accuracy in all material respects (or, to the extent representations or warranties are qualified by materiality or Material Adverse
Effect, in all respects) when made and on the Closing Date of the representations and warranties of the Purchaser contained herein
(unless as of a specific date therein in which case they shall be accurate as of such date);

 

    5 

     

    

 

(ii)           all
obligations, covenants and agreements of Purchaser required to be performed at or prior to the Closing Date shall have been performed;
and

 

(iii)          the
delivery by Purchaser of the items set forth in Section 2.2(b) of this Agreement.

 

(b)           The
obligations of the Purchaser hereunder in connection with the Closing are subject to the following conditions being met:

 

(i)            the
accuracy in all material respects (or, to the extent representations or warranties are qualified by materiality or Material Adverse
Effect, in all respects) when made and on the Closing Date of the representations and warranties of the Company contained herein
(unless as of a specific date therein in which case they shall be accurate as of such date);

 

(ii)           all
obligations, covenants and agreements of the Company required to be performed at or prior to Closing Date shall have been performed;

 

(iii)          the
closing by the Company of the Acquisitions;

 

(iv)          the
delivery by the Company of the items set forth in Section 2.2(a) of this Agreement;

 

(v)           there
shall have been no Material Adverse Effect with respect to the Company since the date hereof; and

 

(vi)          from
the date hereof to the Closing Date, trading in securities generally as reported by Bloomberg L.P. shall not have been suspended
or limited, or minimum prices shall not have been established on securities whose trades are reported by such service, or on any
Trading Market, nor shall a banking moratorium have been declared either by the United States or New York State authorities nor
shall there have occurred any material outbreak or escalation of hostilities or other national or international calamity of such
magnitude in its effect on, or any material adverse change in, any financial market which, in each case, in the reasonable judgment
of the Purchaser, makes it impracticable or inadvisable to purchase the Securities at on the Closing Date.

 

ARTICLE III.

REPRESENTATIONS AND WARRANTIES

 

3.1           Representations
and Warranties of the Company. Except as set forth in the Disclosure Schedules, which
Disclosure Schedules shall be deemed a part hereof and shall qualify any representation or otherwise made herein to the extent
of the disclosure contained in the corresponding section of the Disclosure Schedules, the Company hereby makes the following representations
and warranties to Purchaser as of the date hereof:

 

(a)           Subsidiaries.
All of the direct and indirect subsidiaries of the Company are set forth in Schedule 3.1(a). The Company owns, directly or indirectly,
all of the capital stock or other equity interests of each Subsidiary free and clear of any Liens, and all of the issued and outstanding
shares of capital stock of each Subsidiary are validly issued and are fully paid, non-assessable and free of preemptive and similar
rights to subscribe for or purchase securities. If the Company has no subsidiaries, all other references to the Subsidiaries or
any of them in the Transaction Documents shall be disregarded.

 

    6 

     

    

 

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

 

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

 

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

 

    7 

     

    

 

(e)           Filings,
Consents and Approvals. The Company is not required to obtain any consent, waiver, authorization or order of, give any notice
to, or make any filing or registration with, any court or other federal, state, local or other governmental authority or other
Person in connection with the execution, delivery and performance by the Company of the Transaction Documents, other than: (i)
the filings required pursuant to Section 4. 3 and Section 4.6 of this Agreement, (ii) filings necessary to perfect the Liens
in favor of the Purchaser under the Security Agreement, and (iii) such filings as are required to be made under applicable state
securities laws (collectively, the “Required Approvals”).

 

(f)           Issuance
of the Securities. The Note and Shares are duly authorized and, when issued and paid for in accordance with the applicable
Transaction Documents, will be duly and validly issued, fully paid, and in the case of the Shares, nonassessable, free and clear
of all Liens imposed by the Company. The Conversion Shares, when issued upon conversion of the Note, will be validly issued, fully
paid and nonassessable, free and clear of all Liens imposed by the Company. The Company has reserved from its duly authorized capital
stock a number of shares of Common Stock issuable pursuant to the Note equal to the amount set forth in Section 4.11.

 

(g)           Capitalization.
The pro forma capitalization of the Company as of the Closing, giving effect to the issuance of the Securities hereunder and closing
of the Acquisitions, is as set forth in Schedule 3.1(g). No Person has any right of first refusal, preemptive right, right of participation,
or any similar right to participate in the transactions contemplated by the Transaction Documents. Except as a result of the purchase
and sale of the Securities or as set forth on Schedule 3.1(g), there are no outstanding options, warrants, scrip rights to subscribe
to, calls or commitments of any character whatsoever relating to, or securities, rights or obligations convertible into or exercisable
or exchangeable for, or giving any Person any right to subscribe for or acquire, any shares of Common Stock or the capital stock
of any Subsidiary, or contracts, commitments, understandings or arrangements by which the Company or any Subsidiary is or may become
bound to issue additional shares of Common Stock or Common Stock Equivalents or capital stock of any Subsidiary. The issuance and
sale of the Securities will not obligate the Company or any Subsidiary to issue shares of Common Stock or other securities to any
Person (other than the Purchaser) and will not result in a right of any holder of Company securities to adjust the exercise, conversion,
exchange or reset price under any of such securities. There are no outstanding securities or instruments of the Company or any
Subsidiary that contain any redemption or similar provisions, and there are no contracts, commitments, understandings or arrangements
by which the Company or any Subsidiary is or may become bound to redeem a security of the Company or such Subsidiary. The Company
does not have any stock appreciation rights or “phantom stock” plans or agreements or any similar plan or agreement.
All of the outstanding shares of capital stock of the Company are duly authorized, validly issued, fully paid and nonassessable,
have been issued in compliance with all federal and state securities laws, and none of such outstanding shares was issued in violation
of any preemptive rights or similar rights to subscribe for or purchase securities. No further approval or authorization of any
shareholder, the Board of Directors or others is required for the issuance and sale of the Securities. Except as set forth on Schedule
3.1(g), there are no stockholders agreements, voting agreements or other similar agreements with respect to the Company’s
capital stock to which the Company is a party or, to the knowledge of the Company, between or among any of the Company’s
stockholders.

 

    8 

     

    

 

(h)           SEC
Reports; Financial Statements. The Company has filed all reports, schedules, forms, statements and other documents required
to be filed by the Company under the Securities Act and the Exchange Act, including pursuant to Section 13(a) or 15(d) thereof,
for the two years preceding the date hereof (or such shorter period as the Company was required by law or regulation to file such
material) (the foregoing filed materials, including the exhibits thereto and documents incorporated by reference therein, being
collectively referred to herein as 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 dates, the SEC
Reports complied in all material respects with the requirements of the Securities Act and the Exchange Act, as applicable, and
none of the SEC Reports, when filed, contained any untrue statement of a material fact or omitted to state a material fact required
to be stated therein or necessary in order to make the statements therein, in the light of the circumstances under which they were
made, not misleading. The financial statements of the Company included in the SEC Reports comply in all material respects with
applicable accounting requirements and the rules and regulations of the SEC with respect thereto as in effect at the time of filing.
Such financial statements have been prepared in accordance with United States generally accepted accounting principles applied
on a consistent basis during the periods involved (“GAAP”), except as may be otherwise specified in such financial
statements or the notes thereto and except that unaudited financial statements may not contain all footnotes required by GAAP,
and fairly present in accordance with GAAP in all material respects the financial position of the Company and its consolidated
Subsidiaries as of and for the dates thereof and the results of operations and cash flows for the periods then ended, subject,
in the case of unaudited statements, to normal, immaterial, year-end audit adjustments.

 

(i)            Material
Changes; Undisclosed Events, Liabilities or Developments. Since the date of the latest audited financial statements included
within the SEC Reports, (i) there has been no event, occurrence or development that has had or that would reasonably be expected
to result in a Material Adverse Effect, (ii) the Company has not incurred any liabilities (contingent or otherwise) other than
(A) trade payables and accrued expenses incurred in the ordinary course of business consistent with past practice and (B) liabilities
not required to be reflected in the Company’s financial statements pursuant to GAAP or disclosed in the SEC Financial Statements,
(iii) the Company has not altered its method of accounting, (iv) the Company has not declared or made any dividend or distribution
of cash or other property to its shareholders (other than as required pursuant to the terms of any of its securities outstanding
as of the date hereof) or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock and
(v) the Company has not issued any equity securities to any officer, director or Affiliate, except pursuant to existing stock or
option plans duly adopted for such purpose or upon approval by a majority of the non-employee members of the Board of Directors
or a majority of the members of a committee of non-employee directors established for such purpose for services rendered to the
Company. The Company does not have pending before the SEC any request for confidential treatment of information. Except for the
issuance of the Securities contemplated by this Agreement or as set forth on Schedule 3.1(i), no event, liability, fact,
circumstance, occurrence or development has occurred or exists or is reasonably expected to occur or exist with respect to the
Company or its Subsidiaries or their respective businesses, prospects, properties, operations, assets or financial condition that
would be required to be disclosed by the Company under applicable securities laws at the time this representation is made or deemed
made that has not been publicly disclosed at least 1 Trading Day prior to the date that this representation is made.

 

    9 

     

    

 

(j)            Litigation.
There is no action, suit, inquiry, notice of violation, proceeding or investigation pending or, to the knowledge of the Company,
threatened against or affecting the Company, any Subsidiary or any of their respective properties before or by any court, arbitrator,
governmental or administrative agency or regulatory authority (federal, state, county, local or foreign) (collectively, an “Action”)
which (i) adversely affects or challenges the legality, validity or enforceability of any of the Transaction Documents or the issuance
of the Securities or (ii) could, if there were an unfavorable decision, have or reasonably be expected to result in a Material
Adverse Effect. Neither the Company nor any Subsidiary, nor any director or officer thereof (in such capacity), is or has been
the subject of any Action involving a claim of violation of or liability under federal or state securities laws or a claim of breach
of fiduciary duty. There has not been, and to the knowledge of the Company, there is not pending or contemplated, any investigation
by the SEC or other governmental or regulatory authority involving the Company or any current or former director or officer of
the Company. The SEC has not issued any stop order or other order suspending the effectiveness of any registration statement filed
by the Company or any Subsidiary under the Exchange Act or the Securities Act.

 

(k)           Compliance.
Except as set forth on Schedule 3(k), neither the Company nor any Subsidiary: (i) is in default under or in violation of (and no
event has occurred that has not been waived that, with notice or lapse of time or both, would result in a default by the Company
or any Subsidiary under), nor has the Company or any Subsidiary received notice of a claim that it is in default under or that
it is in violation of, any indenture, loan or credit agreement or any other agreement or instrument to which it is a party or by
which it or any of its properties is bound (whether or not such default or violation has been waived), (ii) is in violation of
any judgment, decree or order of any court, arbitrator or other governmental authority or (iii) is in violation of any statute,
rule, ordinance or regulation of any governmental authority, including without limitation all foreign, federal, state and local
laws relating to taxes, occupational health and safety, product quality and safety and employment and labor matters.

 

(l)            Environmental
Laws. The Company and its Subsidiaries (i) are in compliance with all federal, state, local and foreign laws relating to pollution
or protection of human health or the environment (including ambient air, surface water, groundwater, land surface or subsurface
strata), including laws relating to emissions, discharges, releases or threatened releases of chemicals, pollutants, contaminants,
or toxic or hazardous substances or wastes (collectively, “Hazardous Materials”) into the environment, or otherwise
relating to the manufacture, processing, distribution, use, treatment, storage, disposal, transport or handling of Hazardous Materials,
as well as all authorizations, codes, decrees, demands, or demand letters, injunctions, judgments, licenses, notices or notice
letters, orders, permits, plans or regulations, issued, entered, promulgated or approved thereunder (“Environmental Laws”);
(ii) have received all permits licenses or other approvals required of them under applicable Environmental Laws to conduct their
respective businesses; and (iii) are in compliance with all terms and conditions of any such permit, license or approval in all
material respects.

 

(m)          Regulatory
Permits. The Company and the Subsidiaries possess all certificates, authorizations and permits issued by the appropriate federal,
state, local or foreign regulatory authorities necessary to conduct their respective businesses, except where the absence of any
of the foregoing, individually or in the aggregate could not reasonably be expected to have a Material Adverse Effect (“Material
Permits”), and neither the Company nor any Subsidiary has received any notice of proceedings relating to the revocation
or modification of any Material Permit.

 

(n)           Title
to Assets. The Company and the Subsidiaries have good and marketable title in fee simple to all real property owned by them
and good and marketable title in all personal property owned by them that is material to the business of the Company and the Subsidiaries,
in each case free and clear of all Liens, except for Permitted Liens. Any real property and facilities held under lease by the
Company and the Subsidiaries are held by them under valid, subsisting and enforceable leases with which the Company and the Subsidiaries
are in compliance.

 

    10 

     

    

 

(o)           Intellectual
Property.

 

(i)            The
Company owns or possesses or has the right to use pursuant to a valid and enforceable written license, sublicense, agreement, or
permission all Intellectual Property necessary for the operation of the business of the Company as presently conducted. The Company
has made available to the Purchaser a true and complete copy of each such written license, sublicense, agreement or permission.

 

(ii)           To
the knowledge of the Company, the Intellectual Property does not interfere with, infringe upon, misappropriate, or otherwise come
into conflict with, any Intellectual Property rights of third parties, and the Company has no Knowledge that facts exist which
indicate a likelihood of the foregoing. The Company has not received any charge, complaint, claim, demand, or notice alleging any
such interference, infringement, misappropriation, or conflict (including any claim that the Company must license or refrain from
using any Intellectual Property rights of any third party). To the Knowledge of the Company, no third party has interfered with,
infringed upon, misappropriated, or otherwise come into conflict with, any Intellectual Property rights of the Company.

 

(iii)          The
Company has no pending patent applications or applications for registration that either entity has made with respect to any Intellectual
Property. There are no licenses, sublicenses, agreements, or other permissions that the Company has granted to any third party
with respect to any of such Intellectual Property (together with any exceptions). (“Intellectual Property Agreements”).
Schedule 3.1(o)  identifies each registered and unregistered trademark, service mark, trade name, corporate name, URLs or
Internet domain name used by the Company in connection with its business and which is not licensed from a third party. With respect
to each item of Intellectual Property required to be identified in Schedule 3.1(o):

 

		(A)	The Company owns and possesses all right, title, and interest in and to the item, free and clear
of any Lien, license, or other restriction or limitation regarding use or disclosure;

 

		(B)	The item is not subject to any outstanding injunction, judgment, order, decree, ruling, or charge;

 

		(C)	No Action, claim, or demand is pending or, to the knowledge of the Company, is threatened that
challenges the legality, validity, enforceability, use, or ownership by the Company; and

 

		(D)	The Company has not agreed to indemnify any Person for or against any interference, infringement,
misappropriation, or other conflict with respect to the item.

 

(iv)          Schedule
3.1(o)(iv) identifies each item of Intellectual Property that any third party owns and that the Company uses pursuant to license,
sublicense, agreement, or permission, excluding off-the-shelf software purchased or licensed by the Company. The Company has made
available to the Purchaser correct and complete copies of all such licenses, sublicenses, agreements, and permissions (each as
amended to date) (each, a “Licensed Intellectual Property Agreement”). With respect to each Licensed Intellectual Property
Agreement:

 

		(A)	The Licensed Intellectual Property Agreement is legal, valid, binding, enforceable, and in full
force and effect;

 

    11 

     

    

 

		(B)	The Company is not in breach or default, and no event has occurred that with notice or lapse of
time would constitute the Company’s breach or default or permit the counterparty rights to termination, modification, or
acceleration thereunder, which as to any such breach, default or event could have a Material Adverse Effect on the Company;

 

		(C)	No party to such Licensed Intellectual Property Agreement has repudiated any provision thereof;

 

		(D)	Except as set forth in such Licensed Intellectual Property Agreement, the Company has not received
written or verbal notice or otherwise has Knowledge that the underlying item of Intellectual Property is subject to any outstanding
injunction, judgment, order, decree, ruling, or charge; and

 

		(E)	Except as set forth on Schedule 3.1(o)(iv), the Company has not granted any sublicense or
similar right with respect to the license, sublicense, agreement, or permission.

 

(v)           Each
Person who participated in the creation, conception, invention or development of the Intellectual Property currently used in the
business of the Company (each, a “Developer”) which is not licensed from third parties has executed one or more agreements
containing industry standard confidentiality, work for hire and assignment provisions, whereby the Developer has assigned to the
Company all copyrights, patent rights, Intellectual Property rights and other rights in the Intellectual Property, including all
rights in the Intellectual Property that existed prior to the assignment of rights by such Person to the Company. The Company has
made available to the Purchaser copies of any such agreements and assignments from each such Developer (collectively, the “Developer
Agreements”).

 

(vi)          Each
Developer has signed a non-disclosure agreement with the Company. The Company has made available to the Purchaser copies any such
non-disclosure agreements from each such Person, if any.

 

(p)           Insurance.
The Company and the Subsidiaries are insured by insurers of recognized financial responsibility against such losses and risks and
in such amounts as are prudent and customary for entities with financial positions similar to the Company in the businesses in
which the Company and the Subsidiaries are engaged. Neither the Company nor any Subsidiary has any reason to believe that it will
not be able to renew its existing insurance coverage as and when such coverage expires or to obtain similar coverage from similar
insurers as may be necessary to continue its business without a significant increase in cost.

 

(q)           Transactions
With Affiliates and Employees. Except as set forth in the SEC Reports, none of the officers or directors of the Company or
any Subsidiary and, to the knowledge of the Company, none of the employees of the Company or any Subsidiary is presently a party
to any transaction with the Company or any Subsidiary (other than for services as employees, officers and directors), including
any contract, agreement or other arrangement providing for the furnishing of services to or by, providing for rental of real or
personal property to or from, providing for the borrowing of money from or lending of money to or otherwise requiring payments
to or from any officer, director or such employee or, to the knowledge of the Company, any entity in which any officer, director,
or any such employee has a substantial interest or is an officer, director, trustee, stockholder, member or partner.

 

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(r)           Certain
Fees. Except for compensation payable to the Placement Agent, no brokerage or finder’s fees or commissions are or will
be payable by the Company or any Subsidiary to any broker, financial advisor or consultant, finder, placement agent, investment
banker, bank or other Person with respect to the transactions contemplated by the Transaction Documents.

 

(s)           Investment
Company. The Company is not, and is not an Affiliate of, and immediately after receipt of payment for the Securities, will
not be or be an Affiliate of, an “investment company” within the meaning of the Investment Company Act of 1940, as
amended.

 

(t)           Registration
Rights. Except for the Purchaser as set forth in this Agreement, no Person has any right to cause the Company or any Subsidiary
to effect the registration under the Securities Act of any securities of the Company or any Subsidiary.

 

(u)           Application
of Takeover Protections. The Company and the Board of Directors have taken all necessary action, if any, in order to render
inapplicable any control share acquisition, business combination, poison pill (including any distribution under a rights agreement)
or other similar anti-takeover provision under the Company’s certificate of incorporation (or similar charter documents)
or the laws of its state of incorporation that is or could become applicable to the Purchaser as a result of the Purchaser and
the Company fulfilling their obligations or exercising their rights under the Transaction Documents, including without limitation
as a result of the Company’s issuance of the Securities and the Purchaser’s ownership of the Securities.

 

(v)           Disclosure.
Except with respect to the material terms and conditions of the transactions contemplated by the Transaction Documents, the Company
confirms that neither it nor any other Person acting on its behalf has provided the Purchaser or its agents or counsel with any
information that it believes constitutes or might constitute material, non-public information which is not otherwise disclosed
in the SEC Reports. The Company understands and confirms that the Purchaser will rely on the foregoing representation in effecting
transactions in securities of the Company. All of the disclosure furnished by or on behalf of the Company to the Purchaser regarding
the Company and its Subsidiaries, their respective businesses and the transactions contemplated hereby, including the schedules
to this Agreement, is true and correct and does not contain any untrue statement of a material fact or omit to state any material
fact necessary in order to make the statements made therein, in light of the circumstances under which they were made, not misleading.
The Company acknowledges and agrees that the Purchaser does not and has not made any representations or warranties with respect
to the transactions contemplated hereby other than those specifically set forth in Section 3.2 hereof.

 

(w)          No
Integrated Offering. Neither the Company, nor any of its Affiliates, nor any Person acting on its or their behalf has, directly
or indirectly, made any offers or sales of any security or solicited any offers to buy any security, under circumstances that would
cause this offering of the Securities to be integrated with prior offerings by the Company for purposes of the Securities Act which
would require the registration of any such securities under the Securities Act.

 

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(x)            Solvency.
Based on the consolidated financial condition of the Company as of the Closing, after giving effect to the receipt by the Company
of the proceeds from the sale of the Securities hereunder, (i) the fair saleable value of the Company’s assets exceeds the
amount that will be required to be paid on or in respect of the Company’s existing debts and other liabilities (including
known contingent liabilities) as they mature, (ii) the Company’s assets do not constitute unreasonably small capital to carry
on its business as now conducted and as proposed to be conducted including its capital needs taking into account the particular
capital requirements of the business conducted by the Company, consolidated and projected capital requirements and capital availability
thereof, and (iii) the current cash flow of the Company, together with the proceeds the Company would receive, were it to liquidate
all of its assets, after taking into account all anticipated uses of the cash, would be sufficient to pay all amounts on or in
respect of its liabilities when such amounts are required to be paid. As of the date hereof, the Company has no intention to file
for reorganization or liquidation under the bankruptcy or reorganization laws of any jurisdiction within the two years from the
Closing Date. Schedule 3.1(x) set forth as of the date hereof all outstanding secured and unsecured Indebtedness of the Company
or any Subsidiary, or for which the Company or any Subsidiary has commitments. For the purposes of this Agreement, “Indebtedness”
means (x) any liabilities for borrowed money or amounts owed in excess of $10,000 (other than trade accounts payable incurred in
the ordinary course of business), (y) all guaranties, endorsements and other contingent obligations in respect of indebtedness
of others, whether or not the same are or should be reflected in the Company’s consolidated balance sheet (or the notes thereto),
except guaranties by endorsement of negotiable instruments for deposit or collection or similar transactions in the ordinary course
of business; and (z) the present value of any lease payments in excess of $5,000 due under leases required to be capitalized in
accordance with GAAP. Neither the Company nor any Subsidiary is in default with respect to any Indebtedness.

 

(y)           Tax
Status. The Company and its Subsidiaries each (i) has made or filed all United States federal, state and local income and all
foreign income and franchise tax returns, reports and declarations required by any jurisdiction to which it is subject, (ii) has
paid all taxes and other governmental assessments and charges that are material in amount, shown or determined to be due on such
returns, reports and declarations and (iii) has set aside on its books provision reasonably adequate for the payment of all material
taxes for periods subsequent to the periods to which such returns, reports or declarations apply. There are no unpaid taxes in
any material amount claimed to be due by the taxing authority of any jurisdiction, and the officers of the Company or of any Subsidiary
know of no basis for any such claim.

 

(z)            No
Disqualification Events. With respect to the Securities to be offered and sold hereunder in reliance on Rule 506(b) under the
Securities Act, neither the Company nor, to the knowledge of the Company, any of its predecessors, any affiliated issuer, any director,
executive officer, other officer of the Company participating in the offering hereunder, any beneficial owner of 20% or more of
the Company’s outstanding voting equity securities, calculated on the basis of voting power, or any promoter (as that term
is defined in Rule 405 under the Securities Act) connected with the Company in any capacity at the time of sale (each, an “Issuer
Covered Person” and, together, “Issuer Covered Persons”) is subject to any of the “Bad Actor” disqualifications
described in Rule 506(d)(1)(i) to (viii) under the Securities Act (a “Disqualification Event”), except for a Disqualification
Event covered by Rule 506(d)(2) or (d)(3). The Company has exercised reasonable care to determine whether any Issuer Covered Person
is subject to a Disqualification Event. The Company has complied, to the extent applicable, with its disclosure obligations under
Rule 506(e), and has made available to the Purchaser a copy of any disclosures provided thereunder.

 

(aa)         Material
Agreements. The agreements filed as Exhibits to the SEC Reports (the “Material Agreements”) are valid, binding
and enforceable in accordance with their terms against the Company, and are in full force and effect, except as the enforcement
thereof may be limited by bankruptcy laws, other similar laws affecting creditors’ rights and general principles of equity
affecting the availability of specific performance and other equitable remedies. Except as set forth in the SEC Reports, neither
the Company nor to the Company’s knowledge, any other party thereto is in material default thereunder, nor has there occurred
any event that with notice or lapse of time, or both, would constitute a material default by the Company or to the Company’s
knowledge, any other party thereunder. Accurate and complete copies of each written Material Agreement have been delivered or otherwise
made available to the Purchaser. As of the date of this Agreement, the Company nor any of its Affiliates has received any notification
that any party to a Material Agreement intends to terminate such Material Agreement.

 

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3.2           Representations
and Warranties of the Purchaser. Purchaser hereby represents and warrants as of the date hereof to the Company as follows (unless
as of a specific date therein):

 

(a)           Organization;
Authority. Such Purchaser is either an individual or an entity duly incorporated or formed, validly existing and in good standing
under the laws of the jurisdiction of its incorporation or formation with full right, corporate, partnership, limited liability
company or similar power and authority to enter into and to consummate the transactions contemplated by this Agreement and otherwise
to carry out its obligations hereunder and thereunder. The execution and delivery of this Agreement and performance by the Purchaser
of the transactions contemplated by this Agreement have been duly authorized by all necessary corporate, partnership, limited liability
company or similar action, as applicable, on the part of the Purchaser. Each Transaction Document to which it is a party has been
duly executed by the Purchaser, and when delivered by the Purchaser in accordance with the terms hereof, will constitute the valid
and legally binding obligation of the Purchaser, enforceable against it in accordance with its terms, except: (i) as limited by
general equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application
affecting enforcement of creditors’ rights generally, (ii) as limited by laws relating to the availability of specific performance,
injunctive relief or other equitable remedies and (iii) insofar as indemnification and contribution provisions may be limited by
applicable law.

 

(b)           Understandings
or Arrangements. Such Purchaser is acquiring the Securities as principal for its own account and has no direct or indirect
arrangement or understandings with any other Persons to distribute or regarding the distribution of such Securities (this representation
and warranty not limiting the Purchaser’s right to sell the Securities in compliance with applicable federal and state securities
laws). Such Purchaser is acquiring the Securities hereunder in the ordinary course of its business. Such Purchaser understands
that the Securities are “restricted securities” and have not been registered under the Securities Act or any applicable
state securities law and is acquiring such Securities as principal for its own account and not with a view to or for distributing
or reselling such Securities or any part thereof in violation of the Securities Act or any applicable state securities law, has
no present intention of distributing any of such Securities in violation of the Securities Act or any applicable state securities
law and has no direct or indirect arrangement or understandings with any other Persons to distribute or regarding the distribution
of such Securities in violation of the Securities Act or any applicable state securities law (this representation and warranty
not limiting the Purchaser’s right to sell such Securities in compliance with applicable federal and state securities laws).

 

(c)           Purchaser
Status. At the time the Purchaser was offered the Securities, it was, and as of the date hereof it is, an “accredited
investor” within the meaning of Rule 501 under the Securities Act.

 

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

 

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(e)           Access
to Information. Such Purchaser acknowledges that (i) it has had the opportunity to review the Transaction Documents (including
all exhibits and schedules thereto), (ii) the opportunity to ask such questions as it has deemed necessary of, and to receive answers
from, representatives of the Company concerning the terms and conditions of the offering of the Securities and the merits and risks
of investing in the Securities; (iii) access to information about the Company and its financial condition, results of operations,
business, properties, management and prospects sufficient to enable it to evaluate its investment; and (iv) the opportunity to
obtain such additional information that the Company possesses or can acquire without unreasonable effort or expense that is necessary
to make an informed investment decision with respect to the investment. Such Purchaser acknowledges and agrees that neither the
Company nor anyone else has provided the Purchaser with any information or advice with respect to the Securities nor is such information
or advice necessary or desired.

 

(f)           Confidentiality.
Other than to other Persons party to this Agreement or to the Purchaser’s representatives, including, without limitation,
its officers, directors, partners, legal and other advisors, employees, agents and Affiliates, the Purchaser has maintained the
confidentiality of all disclosures made to it in connection with this transaction (including the existence and terms of this transaction).

 

ARTICLE IV.

OTHER AGREEMENTS OF THE PARTIES

 

4.1           Confidentiality.
Purchaser covenants that until such time as the transactions contemplated by this Agreement are publicly disclosed by the Company
pursuant to Section 4.6, Purchaser will maintain the confidentiality of the existence and terms of this transaction and the information
included in the Disclosure Schedules. Notwithstanding the foregoing, the Company expressly acknowledges and agrees that (i) Purchaser
has not made any representation, warranty or covenant hereby that it will not engage in effecting transactions in any securities
of the Company after the time that the transactions contemplated by this Agreement are first publicly announced pursuant to Section
4.6, (ii) Purchaser shall not be restricted or prohibited from effecting any transactions in any securities of the Company in accordance
with applicable securities laws from and after the time that the transactions contemplated by this Agreement are first publicly
announced pursuant to Section 4.6 and (iii) Purchaser shall not have any duty of confidentiality or duty not to trade in the securities
of the Company to the Company or its Subsidiaries after the issuance of the earlier of a Current Report on Form 8-K or initial
press release as described in Section 4.6. Notwithstanding the foregoing, if Purchaser is a multi-managed investment vehicle whereby
separate portfolio managers manage separate portions of Purchaser’s assets and the portfolio managers have no direct knowledge
of the investment decisions made by the portfolio managers managing other portions of such Purchaser’s assets, the covenant
set forth above shall only apply with respect to the portion of assets managed by the portfolio manager that made the investment
decision to purchase the Securities covered by this Agreement.

 

4.2           Removal
of Legends.

 

(a)           The
Securities may only be disposed of in compliance with state and federal securities laws. In connection with any transfer of Securities
other than pursuant to an effective registration statement or Rule 144, (provided that the Purchaser provides the Company with
reasonable assurances (in the form of seller and, if applicable, broker representation letters) that the Securities may be sold
pursuant to such rule), to the Company or to an Affiliate of a Purchaser, or in connection with a pledge as contemplated in Section
4.2(b), the Company may require the transferor thereof to provide to the Company an opinion of counsel selected by the transferor
and reasonably acceptable to the Company, the form and substance of which opinion shall be reasonably satisfactory to the Company,
to the effect that such transfer does not require registration of such transferred Security under the Securities Act.

 

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(b)           The
Purchaser agrees to the imprinting, so long as is required by this Section 4.2, of a legend on any of the Securities in substantially
the following form:

 

NEITHER THIS SECURITY NOR THE
SECURITIES INTO WHICH THIS SECURITY IS CONVERTIBLE 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 AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH
EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY. THIS SECURITY AND THE SECURITIES ISSUABLE UPON CONVERSION
OF THIS SECURITY MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN SECURED BY SUCH SECURITIES.

 

The Company
acknowledges and agrees that Purchaser may from time to time pledge pursuant to a bona fide margin agreement with a registered
broker-dealer or grant a security interest in some or all of the Securities to a financial institution that is an “accredited
investor” as defined in Rule 501(a) under the Securities Act and who agrees to be bound by the provisions of this Agreement
and, if required under the terms of such arrangement, Purchaser may transfer pledged or secured Securities to the pledgees or secured
parties. Such a pledge or transfer would not be subject to approval of the Company and no legal opinion of legal counsel of the
pledgee, secured party or pledgor shall be required in connection therewith. Further, no notice shall be required of such pledge,
but Purchaser’s transferee shall promptly notify the Company of any subsequent transfer or foreclosure of such Securities.
The Company will not be responsible for any pledge relating to, or the grant of any security interest in, any Securities or for
any agreement, understanding, or arrangement between Purchaser and its pledgee or secured party. At the appropriate Purchaser’s
expense, the Company will execute and deliver such reasonable documentation as a pledgee or secured party of Shares and Conversion
Shares may reasonably request in connection with a pledge or transfer of the Shares or Conversion Shares.

 

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(c)           The
legend set forth in Section 4.2(b) shall be removed and the Company shall issue a certificate without such legend or any other
legend to the holder of the applicable Securities upon which it is stamped or issue to such holder by electronic delivery at the
applicable balance account at the DTC, if: (i) a registration statement covering the resale of such Security is effective under
the Securities Act (provided that, if the Purchaser is selling pursuant to the effective registration statement registering the
Securities for resale, the holder agrees to only sell such Securities during such time that such registration statement is effective
and not withdrawn or suspended, and only as permitted by such registration statement), (ii) such Shares or Conversion Shares are
sold pursuant to Rule 144 (if the seller is not an Affiliate of the Company), (iii) such Shares or Conversion Shares are eligible
for sale under Rule 144, without the requirement for the Company to be in compliance with the current public information required
under Rule 144 as to such Shares or Conversion Shares and without volume or manner-of-sale restrictions or (iv) if such legend
is not required under applicable requirements of the Securities Act (including Section 4(a)(1), judicial interpretations and pronouncements
issued by the staff of the SEC). Any fees associated with the removal of such legend shall be borne by the Company. The Company
agrees that following such time as such legend is no longer required under this Section 4.2(c), it will, no later than three Trading
Days following the delivery by the Purchaser to the Company or the Transfer Agent of (x) a legended certificate representing Shares
or Conversion Shares, (endorsed or with stock powers attached, signatures guaranteed, and otherwise in form necessary to affect
the reissuance and/or transfer), or (y) a notice of conversion pursuant the terms of a Note to effect the conversion of such Note
in accordance with its terms, and an opinion of counsel to the extent required by Section 4.2(a) (such third Trading Day, the “Legend
Removal Date”), deliver or cause to be delivered to the Purchaser or the transferee of the Purchaser, as applicable, a certificate
representing such Securities that is free from all restrictive and other legends. The Company may not make any notation on its
records or give instructions to the Transfer Agent that enlarge the restrictions on transfer set forth in this Section 4.2. Certificates
for Shares or Conversion Shares subject to legend removal hereunder shall be transmitted by the Transfer Agent to the Purchaser
by crediting the account of the Purchaser’s prime broker with the DTC system as directed by Purchaser.

 

4.3           Registration
Rights.

 

(a)           The
Company shall file a registration statement on Form S-1 with the SEC (the “Registration Statement”) to register the
resale by the Purchaser of all Registrable Securities. If the Registration Statement is not declared effective within one hundred
eighty (180) calendar days of the Closing Date (the “Effectiveness Date”), then the Company shall pay cash to Purchaser
as liquidated damages in an amount equal to 1% of the face value of the Note on the one hundred eighty-first (181st)
calendar day, plus additional cash as liquidated damages per month in an additional amount equal to 1% of the face value of the
Note with a maximum penalty of 12% of the face value of the Note, until such time when the Registration Statement is declared effective.
“Registrable Securities” means all Shares and Conversion Shares.

 

(b)           Purchaser
hereunder acknowledges its primary responsibilities under the Securities Act and accordingly will not sell or otherwise transfer
the Securities or any interest therein without complying with the requirements of the Securities Act and applicable law. While
the Registration Statement remains effective, Purchaser hereunder may sell its Registrable Securities in accordance with the plan
of distribution contained in the Registration Statement and if it does so it will comply therewith and with the related prospectus
delivery requirements unless an exemption therefrom is available. Purchaser shall, if notified by the Company in writing at any
time that the Registration Statement is not effective or that the prospectus included in such Registration Statement no longer
complies with the requirements of Section 10 of the Securities Act, refrain from selling such Shares or Conversion Shares until
such time as the Company notifies the Purchaser in writing that the Registration Statement is effective or the prospectus is compliant
with Section 10 of the Securities Act, unless the Purchaser is able to, and does, sell such Registrable Securities pursuant to
an available exemption from the registration requirements of Section 5 of the Securities Act. The Purchaser agrees to promptly
furnish to the Company such information that the Company reasonably requires from that Purchaser for use in the Registration Statement
and consents to the inclusion of such information in the Registration Statement. Moreover, in the event the SEC requires the Purchaser
to register less than all of the Registrable Securities as a condition to allowing the Registration Statement to be declared effective,
the Purchaser shall agree to such cutback and such cutback shall not be deemed to be a breach of the Company’s obligations
hereunder.

 

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(c)           The
Purchaser shall, severally and not jointly, indemnify and hold harmless the Company, its directors, officers, agents and employees,
each Person who controls the Company (within the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act),
and the directors, officers, agents or employees of such controlling Persons, to the fullest extent permitted by applicable law,
from and against all losses, as incurred, arising out of or based upon (i) any breaches or violations of Section 4.3(b) or (ii)
any untrue or alleged untrue statement of a material fact contained in the Registration Statement (or the prospectus contained
therein), or in any amendment or supplement thereto, or arising out of or relating to any omission or alleged omission of a material
fact required to be stated therein or necessary to make the statements therein in light of the circumstances under which they were
made not misleading, but only to the extent that such untrue statements or omissions occur in reliance upon and in conformity with
information regarding the Purchaser furnished in writing to the Company by the Purchaser expressly for use therein. Notwithstanding
the foregoing, each Purchaser’s indemnification obligation under this Section 4.3(c) will in no event exceed the net proceeds
received by the Purchaser upon the sale of Registrable Securities giving rise to such obligation.

 

(d)           Both
the Company and the Transfer Agent, and their respective directors, executive officers, employees and agents, may rely on this
Section 4.3.

 

4.4           Furnishing
of Information.

 

(a)           Until
the Purchaser no longer owns any Securities, the Company shall timely file (or obtain extensions in respect thereof and file within
the applicable grace period) all reports required to be filed by the Company after the date hereof pursuant to the Exchange Act.
During such period, if the Company is not required to file reports pursuant to the Exchange Act, it will prepare and furnish to
the Purchaser and make publicly available in accordance with Rule 144(c) such information as is required for the Purchaser to sell
the Securities under Rule 144.

 

(b)           If
at any time the Company (i) shall fail for any reason to satisfy the current public information requirement under Rule 144(c) for
a period of more than 30 consecutive days or (ii) has ever been an issuer described in Rule 144(i)(1)(i) or becomes an issuer in
the future, and the Company shall fail to satisfy any condition set forth in Rule 144(i)(2) for a period of more than 30 consecutive
days (a “Public Information Failure”) then, in addition to such Purchaser’s other available remedies, the Company
shall pay to a Purchaser, in cash, as partial liquidated damages and not as a penalty, by reason of any such delay in or reduction
of its ability to sell the Shares and/or Conversion Shares, an amount in cash equal to two percent (2.0%) of the aggregate Conversion
Price of such Purchaser’s Note(s) and/or the aggregate Subscription Amount on the day of a Public Information Failure and
on every thirtieth (30th) day (pro-rated for periods totaling less than thirty days) thereafter until the earlier of (a) the date
such Public Information Failure is cured and (b) such time that such public information is no longer required for the Purchaser
to transfer the Shares and/or Conversion Shares pursuant to Rule 144. The payments to which a Purchaser shall be entitled pursuant
to this Section 4.4(b) are referred to herein as “Public Information Failure Payments.” Public Information Failure
Payments shall be paid on the earlier of (i) the last day of the calendar month during which such Public Information Failure Payments
are incurred and (ii) the third (3rd) Business Day after the event or failure giving rise to the Public Information Failure Payments
is cured. In the event the Company fails to make Public Information Failure Payments in a timely manner, such Public Information
Failure Payments shall bear interest at the rate of 1.5% per month (prorated for partial months) until paid in full. Nothing herein
shall limit such Purchaser’s right to pursue actual damages for the Public Information Failure, and the Purchaser shall have
the right to pursue all remedies available to it at law or in equity including, without limitation, a decree of specific performance
and/or injunctive relief.

 

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4.5           Integration.
The Company shall not sell, offer for sale or solicit offers to buy or otherwise negotiate in respect of any security (as defined
in Section 2(a)(1) of the Securities Act) that would be integrated with the offer or sale of the Securities for purposes of the
rules and regulations of any Trading Market such that it would require shareholder approval prior to the closing of such other
transaction unless shareholder approval is obtained before the closing of such subsequent transaction. 

 

4.6           Securities
Laws Disclosure; Publicity. The Company shall file a Current Report on Form 8-K, including the Transaction Documents and a
press release describing the transactions contemplated herein as exhibits thereto, with the SEC within the time required by the
Exchange Act. From and after the issuance of such press release, the Company represents to the Purchaser that it shall have publicly
disclosed all material, non-public information delivered to Purchaser by the Company or any of its Subsidiaries, or any of their
respective officers, directors, employees or agents in connection with the transactions contemplated by the Transaction Documents.
In addition, effective upon the issuance of such press release, the Company acknowledges and agrees that any and all confidentiality
or similar obligations under any agreement, whether written or oral, between the Company, any of its Subsidiaries or any of their
respective officers, directors, agents, employees or Affiliates on the one hand, and the Purchaser or any of its Affiliates on
the other hand, shall terminate. The Company and Purchaser shall consult with each other in issuing any other press releases with
respect to the transactions contemplated hereby, and neither the Company nor Purchaser shall issue any such press release nor otherwise
make any such public statement without the prior consent of the Company, with respect to any press release of Purchaser, or without
the prior consent of each Purchaser, with respect to any press release of the Company, which consent shall not unreasonably be
withheld or delayed, except if such disclosure is required by law, in which case the disclosing party shall promptly provide the
other party with prior notice of such public statement or communication. Notwithstanding the foregoing, the Company shall not publicly
disclose the name of Purchaser, or include the name of Purchaser in any filing with the SEC or any regulatory agency or Trading
Market, without the prior written consent of such Purchaser, except (a) as required by federal securities law in connection with
the filing of final Transaction Documents with the SEC and (b) to the extent such disclosure is required by law or Trading Market
regulations, in which case the Company shall provide the Purchaser with prior notice of such disclosure permitted under this clause
(b).

 

4.7           Shareholder
Rights Plan. No claim will be made or enforced by the Company or, with the consent of the Company, any other Person, that the
Purchaser is an “Acquiring Person” under any control share acquisition, business combination, poison pill (including
any distribution under a rights agreement) or similar anti-takeover plan or arrangement in effect or hereafter adopted by the Company,
or that the Purchaser could be deemed to trigger the provisions of any such plan or arrangement, by virtue of receiving Securities
under the Transaction Documents or under any other agreement between the Company and the Purchaser.

 

4.8           Non-Public
Information. Except with respect to the material terms and conditions of the transactions contemplated by the Transaction Documents,
which shall be disclosed pursuant to Section 4.6, the Company covenants and agrees that neither it, nor any other Person acting
on its behalf will provide Purchaser or its agents or counsel with any information that constitutes, or the Company reasonably
believes constitutes, material non-public information, unless prior thereto the Purchaser shall have consented to the receipt of
such information and agreed with the Company to keep such information confidential. The Company understands and confirms that the
Purchaser shall be relying on the foregoing covenant in effecting transactions in securities of the Company. To the extent that
the Company delivers any material, non-public information to a Purchaser without such Purchaser’s consent, the Company hereby
covenants and agrees that the Purchaser shall not have any duty of confidentiality to the Company, any of its Subsidiaries, or
any of their respective officers, directors, agents, employees or Affiliates, or a duty to the Company, any of its Subsidiaries
or any of their respective officers, directors, agents, employees or Affiliates not to trade on the basis of, such material, non-public
information, provided that the Purchaser shall remain subject to applicable law. To the extent that any notice provided pursuant
to any Transaction Document constitutes, or contains, material, non-public information regarding the Company or any Subsidiaries,
the Company shall simultaneously file such notice with the SEC pursuant to a Current Report on Form 8-K. The Company understands
and confirms that the Purchaser shall be relying on the foregoing covenant in effecting transactions in securities of the Company.

 

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4.9           Use
of Proceeds and Consummation of Acquisitions. The Company shall use the net proceeds from the sale of the Securities hereunder
for the acquisitions of Common Compounds, Inc. and EZPharmaRx, LLC pursuant to the terms set forth in the Company’s Current
Report on Form 8-K filed with the SEC on September 5, 2017 with respect thereto (the “Acquisitions”), fees payable
to the Placement Agent and working capital and shall not use such proceeds: (a) for the satisfaction of any portion of the Company’s
Indebtedness (other than payment of trade payables in the ordinary course of the Company’s business and prior practices and
other than ordinary course payments of principal and interest on the Company’s outstanding secured promissory notes), (b)
for the redemption of any Common Stock or Common Stock Equivalents or (c) for the settlement of any outstanding litigation. The
Company shall consummate the Acquisitions substantially on the terms set forth in its Current Report on Form 8-K with the SEC on
September 5, 2017 with respect to the Acquisitions, on or prior to the Closing Date.

 

4.10           Indemnification
of Purchaser. Subject to the provisions of this Section 4.10, the Company will indemnify and hold Purchaser and its directors,
officers, shareholders, members, partners, employees and agents (and any other Persons with a functionally equivalent role of a
Person holding such titles notwithstanding a lack of such title or any other title), each Person who controls the Purchaser (within
the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act), and the directors, officers, shareholders,
agents, members, partners or employees (and any other Persons with a functionally equivalent role of a Person holding such titles
notwithstanding a lack of such title or any other title) of such controlling Persons (each, a “Purchaser Party”) harmless
from any and all losses, liabilities, obligations, claims, contingencies, damages, costs and expenses, including all judgments,
amounts paid in settlements, court costs and reasonable attorneys’ fees and costs of investigation that any such Purchaser
Party may suffer or incur as a result of or relating to (a) any breach of any of the representations, warranties, covenants or
agreements made by the Company in this Agreement or in the other Transaction Documents, (b) any action instituted against the Purchaser
Parties in any capacity, or any of them or their respective Affiliates, by any stockholder of the Company who is not an Affiliate
of such Purchaser Party, with respect to any of the transactions contemplated by the Transaction Documents (unless such action
is based upon a breach of such Purchaser Party’s representations, warranties or covenants under the Transaction Documents
or any agreements or understandings such Purchaser Party may have with any such stockholder or any violations by such Purchaser
Party of state or federal securities laws or any conduct by such Purchaser Party which constitutes fraud, gross negligence, willful
misconduct or malfeasance) or (c) any untrue or alleged untrue statement of a material fact contained in any registration statement,
any prospectus or any form of prospectus or in any amendment or supplement thereto or in any preliminary prospectus, or arising
out of or relating to any omission or alleged omission of a material fact required to be stated therein or necessary to make the
statements therein (in the case of any prospectus or supplement thereto, in light of the circumstances under which they were made)
not misleading. If any action shall be brought against any Purchaser Party in respect of which indemnity may be sought pursuant
to this Agreement, such Purchaser Party shall promptly notify the Company in writing, and the Company shall have the right to assume
the defense thereof with counsel of its own choosing reasonably acceptable to the Purchaser Party. Any Purchaser Party shall have
the right to employ separate counsel in any such action and participate in the defense thereof, but the fees and expenses of such
counsel shall be at the expense of such Purchaser Party except to the extent that (i) the employment thereof has been specifically
authorized by the Company in writing, (ii) the Company has failed after a reasonable period of time to assume such defense and
to employ counsel or (iii) in such action there is, in the reasonable opinion of counsel, a material conflict on any material issue
between the position of the Company and the position of such Purchaser Party, in which case the Company shall be responsible for
the reasonable fees and expenses of no more than one such separate counsel. The Company will not be liable to any Purchaser Party
under this Agreement (y) for any settlement by a Purchaser Party effected without the Company’s prior written consent, which
shall not be unreasonably withheld or delayed; or (z) to the extent, but only to the extent that a loss, claim, damage or liability
is attributable to any Purchaser Party’s breach of any of the representations, warranties, covenants or agreements made by
such Purchaser Party in this Agreement or in the other Transaction Documents. The indemnification required by this Section 4.10
shall be made by periodic payments of the amount thereof during the course of the investigation or defense, as and when bills are
received or are incurred. The indemnity agreements contained herein shall be in addition to any cause of action or similar right
of any Purchaser Party against the Company or others and any liabilities the Company may be subject to pursuant to law.

 

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4.11         Reservation
of Common Stock. As of the date hereof, the Company has reserved and the Company shall continue to reserve and keep available
at all times, free of preemptive rights, shares of Common Stock, subject to adjustment for stock splits and dividends, combinations
and similar events, equal to the amounts required by the Transaction Documents. The Company shall not enter into any agreement
or file any amendment to its Articles of Incorporation (including the filing of a Certificate of Designation) which conflicts with
this Section 4.11 while the Purchaser owns any Shares or the Note remains outstanding.

 

4.12         Trading
of Common Stock. The Company hereby agrees to use best efforts to obtain the quotation of the Common Stock on the OTCQB or
OTCQX on or prior to the Effectiveness Date. The Company further agrees, if the Company applies to have the Common Stock traded
on any other Trading Market, it will then include in such application all of the Shares and Conversion Shares, and will take such
other action as is necessary to cause all of the Shares and Conversion Shares to be listed or quoted on such other Trading Market
as promptly as possible.

 

4.13         Subsequent
Equity Sales.

 

(a)           From
the date hereof until such time as the Purchaser no longer hold any of the Shares or Note, the Company will not, without the consent
of the Purchaser, enter into any Equity Line of Credit or similar agreement, nor issue nor agree to issue any Variable Priced Equity
Linked Instruments (collectively, the “Variable Rate Transactions”). For purposes hereof, “Equity Line of Credit”
means any transaction involving a written agreement between the Company and an investor or underwriter whereby the Company has
the right to “put” its securities to the investor or underwriter over an agreed period of time and at future determined
price or price formula (other than customary “preemptive” or “participation” rights or “weighted
average” or “full-ratchet” antidilution provisions or in connection with fixed-price rights offerings and similar
transactions that are not Variable Priced Equity Linked Instruments), and “Variable Priced Equity Linked Instruments”
means: (A) any debt or equity securities which are convertible into, exercisable or exchangeable for, or carry the right to receive
additional shares of Common Stock either (1) at any conversion, exercise or exchange rate or other price that is based upon and/or
varies with the trading prices of or quotations for Common Stock at any time after the initial issuance of such debt or equity
security, or (2) with a conversion, exercise or exchange price that is subject to being reset on more than one occasion at some
future date at any time after the initial issuance of such debt or equity security due to a change in the market price of the Company’s
Common Stock since date of initial issuance (other than customary “preemptive” or “participation” rights
or “weighted average” or “full-ratchet” antidilution provisions or in connection with fixed-price rights
offerings and similar transactions), and (B) any amortizing convertible security which amortizes prior to its maturity date, where
the Company is required or has the option to (or any investor in such transaction has the option to require the Company to) make
such amortization payments in shares of Common Stock which are valued at a price that is based upon and/or varies with the trading
prices of or quotations for Common Stock at any time after the initial issuance of such debt or equity security (whether or not
such payments in stock are subject to certain equity conditions). For purposes of determining the total consideration for a convertible
instrument (including a right to purchase equity of the Company) issued, subject to an original issue or similar discount or which
principal amount is directly or indirectly increased after issuance, the consideration will be deemed to be the actual cash amount
received by the Company in consideration of the original issuance of such convertible instrument.

 

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(b)           Notwithstanding
the foregoing, this Section 4.13 shall not apply in respect of an Exempt Issuance (except that no Variable Rate Transaction shall
be an Exempt Issuance). The Company shall provide the Purchaser with notice of any such issuance or sale in the manner for disclosure
of Subsequent Financings set forth in Section 5.4.

 

4.14         Conversion
Procedures. The form of Conversion Notice included in the Note sets forth the totality of the procedures required of the Purchaser
in order to convert the Note. No additional legal opinion, other information or instructions shall be required of the Purchaser
to convert the Note. Without limiting the preceding sentences, no ink-original Conversion Notice shall be required, nor shall any
medallion guarantee (or other type of guarantee or notarization) of any Conversion Notice form be required in order to convert
the Note. The Company shall honor conversions of the Note and shall deliver Conversion Shares in accordance with the terms, conditions
and time periods set forth in the Transaction Documents.

 

4.15         Maintenance
of Property. The Company shall use its commercially reasonable efforts to keep all of its property, which is necessary or useful
to the conduct of its business, in good working order and condition, ordinary wear and tear excepted.

 

4.16         Preservation
of Corporate Existence. The Company shall preserve and maintain its corporate existence, rights, privileges and franchises
in the jurisdiction of its incorporation, and qualify and remain qualified, as a foreign corporation in each jurisdiction in which
such qualification is necessary in view of its business or operations and where the failure to qualify or remain qualified might
reasonably have a Material Adverse Effect.

 

4.17         Blue
Sky. The Company shall take such action as the Company shall reasonably determine is necessary in order to obtain an exemption
for, or to qualify the Securities for, sale to the Purchaser at the Closing under applicable securities or “Blue Sky”
laws of the states of the United States, and shall provide evidence of such actions promptly upon request of the Purchaser.

 

4.18         Information
Rights. (i) Until the Purchaser no longer owns any Securities, the Company shall provide the Purchaser with (a) monthly consolidated
financial reports including A/R and A/P statements within ten (10) days of each month end, with such reports to also include comparisons
of budgeted to actual operations (b) quarterly consolidated financial reports within thirty (30) days of each quarter end, with
such reports to include comparisons of budgeted to actual operations, (c) yearly consolidated financial reports within sixty (60)
days of each year end, with such reports to include comparisons of budgeted to actual operations and (d) audited consolidated financials
within one hundred twenty (120) days of each year end as soon as practicable following the release or filing (as the case may be).
The Purchaser may, at any time and from time to time, so long as it owns any Securities, instruct the Company to cease providing
the information described in the preceding sentence and the Company shall comply with such instruction. The Company shall deliver
to the Purchaser all press releases and filings it makes with the SEC and the principal Trading Market. Upon the request of the
Purchaser, the Company shall share with the Purchaser status updates on manufacturing and capex, shipment
of products, sales pipelines, Board of Director decisions and relevant regulatory and licensing developments and other business
and related matters. Such right shall end upon the earlier to occur of (i) the first Trading Day following the closing date of
(i) the sale of all or substantially all of the assets of the Company and any Subsidiary, and/or (iii) the sale of all of the issued
and outstanding securities of the Company to an independent third party in an arms-length transaction.

 

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4.19         Deposit
Account Control Agreement. On or prior to the twenty-first (21st) date following the Closing Date the Company shall deliver
or cause to be delivered to Purchaser, the Deposit Account Control Agreement duly executed by the Company and any bank at which
any deposit account of the Company is at that time maintained. Failure to deliver or cause to be delivered the Deposit Account
Control Agreement within the prescribed time shall be an Event of Default (as defined in the Note).

 

ARTICLE V.

MISCELLANEOUS

 

5.1           Termination.
This Agreement may be terminated by the Purchaser, as to Purchaser’s obligations hereunder only and without any effect whatsoever
on the obligations between the Company and the other Purchaser, by written notice to the other parties, if the Closing Date has
not been consummated on or before October 31, 2017.

 

5.2           Fees
and Expenses. Except as expressly set forth below and in the Transaction Documents to the contrary, each party shall pay the
fees and expenses of its advisers, counsel, accountants and other experts, if any, and all other expenses incurred by such party
incident to the negotiation, preparation, execution, delivery and performance of this Agreement. The Company shall pay all Transfer
Agent fees (including, without limitation, any fees required for same-day processing of any instruction letter delivered by the
Company and any exercise notice delivered by the Purchaser), stamp taxes and other taxes and duties levied in connection with the
delivery of any Securities to the Purchaser. The Company agrees to pay counsel for the Purchaser ($7,500 of which has been paid
in advance) all itemized fees together with reasonable costs including those necessary to provide the Purchaser with a lien on
all of the assets of the Company. The Company agrees to pay the Purchaser up to an aggregate of $15,000 for due diligence fees
($2,500 of which has been paid in advance). The Purchaser may withhold from the Subscription Amount the full amount required to
pay its due diligence fees and the fees due its counsel in full as well as any costs incurred by such counsel provided that written
notice and itemized billing is given to the Company.

 

5.3           Entire
Agreement. The Transaction Documents, together with the exhibits and schedules thereto, contain the entire understanding of
the parties with respect to the subject matter hereof and thereof and supersede all prior agreements and understandings, oral or
written, with respect to such matters, which the parties acknowledge have been merged into such documents, exhibits and schedules.

 

5.4           Notices.
Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be in writing and
shall be deemed given and effective on the earliest of: (a) the date of transmission, if such notice or communication is delivered
via facsimile or email attachment at the facsimile number or email address as set forth on the signature pages attached hereto
at or prior to 5:30 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 delivered via facsimile or email attachment at the facsimile number or email address as set forth on
the signature pages attached hereto on a day that is not a Business Day or later than 5:30 p.m. (New York City time) on any Business
Day, (c) the second (2nd) Business Day following the date of mailing, if sent by U.S. nationally recognized overnight
courier service or (d) upon actual receipt by the party to whom such notice is required to be given. The address for such notices
and communications shall be as set forth on the signature pages attached hereto. To the extent that any notice provided pursuant
to any Transaction Document constitutes, or contains, material, non-public information regarding the Company or any Subsidiaries,
the Company shall simultaneously file such notice with the SEC pursuant to a Current Report on Form 8-K.

 

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5.5           Amendments;
Waivers. No provision of this Agreement may be waived, modified, supplemented or amended except in a written instrument signed,
in the case of an amendment, by the Company and the Purchaser, or, in the case of a waiver, by the party against whom enforcement
of any such waived provision is sought. No waiver of any default with respect to any provision, condition or requirement of this
Agreement shall be deemed to be a continuing waiver in the future or a waiver of any subsequent default or a waiver of any other
provision, condition or requirement hereof, nor shall any delay or omission of any party to exercise any right hereunder in any
manner impair the exercise of any such right. Any amendment effected in accordance with accordance with this Section 5.5 shall
be binding upon the Purchaser and holder of Securities and the Company.

 

5.6           Successors
and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their successors and permitted
assigns. The Company may not assign this Agreement or any rights or obligations hereunder without the prior written consent of
the Purchaser. Purchaser may assign any or all of its rights under this Agreement to any Person to whom Purchaser assigns or transfers
any Securities, provided that such transferee agrees in writing to be bound, with respect to the transferred Securities, by the
provisions of the Transaction Documents that apply to the “Purchaser.”

 

5.7           No
Third-Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective successors
and permitted assigns and is not for the benefit of, nor may any provision hereof be enforced by, any other Person, except as otherwise
set forth in Sections 4.5 and 4.9 and this Section 5.7.

 

5.8           Governing
Law; Exclusive Jurisdiction. All questions concerning the construction, validity, enforcement and interpretation of the Transaction
Documents shall be governed by and construed and enforced in accordance with the internal laws of the State of New York, without
regard to the principles of conflicts of law thereof. Each party agrees that all legal Proceedings concerning the interpretations,
enforcement and defense of the transactions contemplated by this Agreement and any other Transaction Documents (whether brought
against a party hereto or its respective affiliates, directors, officers, shareholders, partners, members, employees or agents)
shall be commenced exclusively in the state and federal courts sitting in the City of New York. Each party hereby irrevocably submits
to the exclusive jurisdiction of the state and federal courts sitting in the City of New York, Borough of Manhattan for the adjudication
of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein (including with
respect to the enforcement of any of the Transaction Documents), and hereby irrevocably waives, and agrees not to assert in any
Action or Proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such Action or Proceeding
is improper or is an inconvenient venue for such Proceeding. Each party hereby irrevocably waives personal service of process and
consents to process being served in any such Action or Proceeding by mailing a copy thereof via registered or certified mail or
overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Agreement and
agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall
be deemed to limit in any way any right to serve process in any other manner permitted by law. If any party shall commence an Action
or Proceeding to enforce any provisions of the Transaction Documents, then, in addition to the obligations of the Company elsewhere
in this Agreement, the prevailing party in such Action or Proceeding shall be reimbursed by the non-prevailing party for its reasonable
attorneys’ fees and other costs and expenses incurred with the investigation, preparation and prosecution of such Action
or Proceeding.

 

5.9           Survival.
The representations and warranties contained herein shall survive the Closing and the delivery of the Securities until such time
as the Note is no longer outstanding.

 

    25 

     

    

 

5.10         Execution.
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 each other party, it being
understood that the parties need not sign the same counterpart. In the event that any signature is delivered by facsimile transmission
or by e-mail delivery of a “.pdf” format data 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.

 

5.11         Severability.
If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction to be invalid, illegal,
void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein shall remain in full
force and effect and shall in no way be affected, impaired, or invalidated, as long as the essential terms and conditions of this
Note for each party remain valid, binding, and enforceable. The parties shall use their commercially reasonable efforts to find
and employ an alternative means to achieve the same or substantially the same result as that contemplated by such term, provision,
covenant or restriction.

 

5.14         Remedies.
In addition to being entitled to exercise all rights provided herein or granted by law, including recovery of damages, each of
the Purchaser and the Company will be entitled to specific performance under the Transaction Documents. The parties agree that
monetary damages may not be adequate compensation for any loss incurred by reason of any breach of obligations contained in the
Transaction Documents and hereby agree to waive and not to assert in any Action for specific performance of any such obligation
the defense that a remedy at law would be adequate.

 

5.15         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.

 

5.16         Construction.
The parties agree that each of them and/or their respective counsel have reviewed and had an opportunity to revise the Transaction
Documents and, therefore, the normal rule of construction to the effect that any ambiguities are to be resolved against the drafting
party shall not be employed in the interpretation of the Transaction Documents or any amendments thereto. In addition, each and
every reference to share prices and shares of Common Stock in any Transaction Document shall be subject to adjustment for reverse
and forward stock splits, stock dividends, stock combinations and other similar transactions of the Common Stock that occur after
the date of this Agreement.

 

5.17         WAIVER
OF JURY TRIAL. IN ANY ACTION, SUIT, OR PROCEEDING IN ANY JURISDICTION BROUGHT BY ANY PARTY AGAINST ANY OTHER PARTY, THE PARTIES
EACH KNOWINGLY AND INTENTIONALLY, TO THE GREATEST EXTENT PERMITTED BY APPLICABLE LAW, HEREBY ABSOLUTELY, UNCONDITIONALLY, IRREVOCABLY
AND EXPRESSLY WAIVES FOREVER TRIAL BY JURY. 

 

(Signature Pages
Follow)

 

    26 

     

    

 

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

 

	Health-Right Discoveries, Inc.

 

	 	
        Address for Notice:

         

        18851 N.E. 29th Avenue, Suite 700 

        Aventura, FL 33180 

        Attention: President 

	 	 	 	 
	By:	
        /s/ David Hopkins
		
        Email: dhopkins@health-right.com

	 	David
Hopkins, President	 	 
	 	 	 	 
	With a copy to (which shall not constitute notice):

 

Gutiérrez Bergman Boulris, PLLC 

340 Almeria Avenue, Suite 340 

Coral Gables, FL 33134 

Attention: Dale S. Bergman, Esq. 

	 

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK 

SIGNATURE PAGE FOR PURCHASER FOLLOWS]

 

    27 

     

    

 

[PURCHASER SIGNATURE PAGES TO SECURITIES
PURCHASE AGREEMENT]

 

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

 

Name of Purchaser: GPB Debt Holdings
II, LLC                                 

 

Signature of Authorized Signatory of Purchaser:
/s/ David Gentile        

 

Name of Authorized Signatory: David Gentile                                             

 

Title of Authorized Signatory: Manager                                                        

 

Email Address of Authorized Signatory:____________________________________________________________________________

 

Facsimile Number of Authorized Signatory: _____________________________________________________________________________

 

	Address for Notice to Purchaser:	GPB Debt Holdings
II, LLC	 
	 	535 W 24th Street, 4th Floor	 
	 	New York, NY 10011	 

 

 

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

 

Subscription Amount: $4,900,000 

Face Value of Note: $5,000,000 

Shares: 3,584,279 

 

EIN Number: _______________________

 

    28

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