Document:

Exhibit 10.2

 

EQUIPMENT
SUPPLY AGREEMENT

 

THIS EQUIPMENT SUPPLY
AGREEMENT (this “Agreement”) is made and entered into this 7th day of February, 2017 (the “Effective
Date”) by and between JOHNSON CONTROLS BATTERY GROUP, INC., a Wisconsin corporation (“Customer”),
and AQUA METALS, INC., a Delaware corporation (“Supplier”). Customer and Supplier will be referred to
herein individually as a “Party” and collectively as the “Parties”.

 

RECITALS

 

WHEREAS, Supplier
is the developer and owner of AquaRefining;

 

WHEREAS, Customer
has various recycling facilities that recycle lead bearing materials that use a traditional heat-smelting process, and is interested
in the possibility of converting or retrofitting such facilities so that they can use AquaRefining and/or constructing additional
recycling facilities capable of using AquaRefining in the production of lead; and

 

WHEREAS, the
Parties desire to collaborate, pursuant to the terms and conditions hereof, with respect to the development of new Customer facilities,
or the retrofitting or conversion of existing Customer facilities, so that they can produce lead using AquaRefining, pursuant to
the terms and conditions hereof.

 

NOW, THEREFORE,
in consideration of the foregoing and the mutual covenants and obligations contained herein, the Parties agree as follows:

 

Article
I

DEFINITIONS

 

1.1           “Affiliate”
of a Person means any other Person that directly or indirectly, through one or more intermediaries, controls, is controlled by,
or is under common control with, such Person. The term “control” (including the terms “controlled by”
and “under common control with”) means the possession, directly or indirectly, of the power to direct or cause
the direction of the management and policies of a Person, whether through the ownership of voting securities, by contract or otherwise.

 

1.2           “AquaRefining”
means a water-based, room temperature process that produces lead recovered from lead acid batteries, which process is applied after
lead paste is produced through the lead acid battery breaking process but prior to the lead refining process, and related equipment,
systems and algorithms, that, without limitation, incorporates or relates to the AquaRefining Equipment and AquaRefining Technology.

 

1.3           “AquaRefining
Equipment” means the equipment made part of and used in AquaRefining.

 

1.4           “AquaRefining
Technology” means all Intellectual Property Rights and Know-How relating to AquaRefining in which Supplier possesses
any right, title or interest as of the Effective Date and/or during the Term of this Agreement, or that Supplier otherwise provides
or discloses to Customer.

 

     

     

    

 

1.5           “Authorized
Representative” is defined in Section 8.1.

 

1.6           “Claim”
means any claim, action, suit, demand or other legal assertion or proceeding brought by a third party.

 

1.7           “Confidential
Information” shall mean any and all information and materials previously, currently or subsequently disclosed by one
Party (“Discloser”) to the other Party (“Recipient”) (whether in writing or in oral, graphic,
electronic or any other form, and including all Know-How) or otherwise made available to the Recipient which the Discloser considers
to be and treats as proprietary or confidential and regardless of whether such information or materials are marked “confidential”.
Subject to the following sentence, Supplier’s Confidential Information shall include Know-How only to the extent that is
identified to Customer by Supplier in writing as Know-How hereunder. Information or materials shall not be considered Confidential
Information to the extent such information or materials can be shown to have been: (a) available to the public prior to the
date of disclosure to Recipient or to have become available to the public thereafter without any unauthorized act or omission by
Recipient, (b) rightfully in Recipient’s possession prior to the date of disclosure to Recipient and not otherwise restricted
as to disclosure for the benefit of Discloser, (c) disclosed to Recipient without restriction by a third party who had a right
to disclose and was not otherwise under an obligation of confidence to Discloser, or (d) which by contemporaneous written
evidence can be shown to have been independently developed by Recipient without use of or reference to Discloser’s Confidential
Information.

 

1.8           “Customer”
is defined in the Preamble.

 

1.9           “Customer
Improvement” is defined in Section 4.2.

 

1.10         “Customer
Indemnified Parties” is defined in Section 4.3.

 

1.11         “Customer
Facilities Plan” is defined in Section 3.4.

 

1.12         “Development
Program” is defined in Section 2.1.

 

1.13         “Development
Program Agreement” is defined in Section 2.2.

 

1.14         “Discloser”
is defined in Section 1.7.

 

1.15         “Effective
Date” is defined in the Preamble.

 

1.16         “First
Customer Facility” is defined in Section 3.3.

 

1.17         “Governmental
Authority” means any (a) nation, state, county, city, town, village, district or other jurisdiction of any nature;
(b) federal, state, local, municipal, foreign or other government; (c) governmental or quasi-governmental authority of
any nature (including, without limitation, any governmental agency, branch, department, official or entity and any court or other
tribunal); or (d) body exercising, or entitled to exercise, any administrative, executive, judicial, legislative, police,
regulatory or taxing authority or power of any nature.

 

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1.18         “Improvement(s)”
means any extensions, enhancements, derivative works (as defined in 17 U.S.C. § 101), improvements, or further developments
to the AquaRefining Technology, whether conceived or developed solely by or on behalf of Customer or Supplier, or jointly by Customer
and Supplier, in the performance of the relationship contemplated hereunder.

 

1.19         “Intellectual
Property Rights” means all current and future worldwide rights comprising or relating to: (a) Patents; (b) Trademarks;
(c) internet domain names, whether or not constituting Trademarks, registered by any authorized private registrar or Governmental
Authority, web addresses, web pages, websites and URLs; (d) works of authorship, expressions, designs and design registrations,
whether or not copyrightable, including, without limitation, copyrights, copyrightable works, software, firmware, data, data files,
databases and other specifications and documentation; (e) Trade Secret Information; and (f) all other industrial and
other intellectual property rights, including, without limitation, rights in inventions, discoveries, utility models, industrial
designs, models, drawings, and mask works, and all rights, interests and protections that are associated with, equivalent with,
or similar to, or required for the exercise of, any of the foregoing, in each case whether registered or unregistered and including
all registrations and applications for, and renewals or extensions of, such rights or forms of protection pursuant to any Laws.

 

1.20         “Know-How”
means all Trade Secret Information, scientific, technical and commercial data and documents, drawings, designs, operating experience
and techniques, testing results, regulatory submissions, methods of manufacture, specifications, processes, procedures, inventions
and other information of a similar nature, in each case related to AquaRefining, whether patentable or not, and whether publicly
available or not.

 

1.21         “Law”
or “Laws” means any applicable federal, state, local, municipal, foreign, international, multinational or other
administrative order, constitution, law, ordinance, principle of common law, regulation, statute or treaty.

 

1.22         “Liabilities”
or “Liability” means all losses, costs, damages, judgments, settlements, interest, fees or expenses including,
without limitation, all reasonable attorneys’ fees, experts’ or consultants’ fees, expenses and costs incurred
in connection with the enforcement of rights and remedies hereunder or otherwise.

 

1.23         ***

 

1.24         “Party”
or “Parties” is defined in the Preamble.

 

 

***Text has been omitted pursuant to Registrant’s confidential treatment request filed with the
Securities and Exchange Commission (“Commission”) pursuant to Rule 24b-2 under the Securities Exchange Act of 1934. 
The omitted text has been filed separately with the Commission.

 

    	 	3	 

     

    

 

1.25         “Patents”
means all patents (including all reissues, divisionals, provisionals, continuations and continuations-in-part, re-examinations
and renewals thereof), patent applications, inventions, and other patent rights and any other Governmental Authority-issued indicia
of invention ownership (including inventor’s certificates, petty patents and patent utility models).

 

1.26         “Person”
means an individual, corporation, partnership, joint venture, limited liability company, Governmental Authority, unincorporated
organization, trust, association or other entity.

 

1.27         “Recipient”
is defined in Section 1.7.

 

1.28         “Region”
or “Regions” shall mean (1) North America, (2) Europe and (3) China.

 

1.29         “Representatives”
is defined in Section 7.1.

 

1.30         “Supplier”
is defined in the Preamble.

 

1.31         “Term”
is the term of this Agreement as set forth in Section 6.1.

 

1.32         “Tolling/Purchase
Agreement” means that certain Tolling/Lead Purchase Agreement of even date herewith between Supplier and Customer.

 

1.33         “Trademarks”
means all rights in and to U.S. and foreign trademarks, service marks, trade dress, trade names, brand names, logos, corporate
names and domain names and other similar designations of source, sponsorship, association or origin, together with the goodwill
symbolized by any of the foregoing, in each case whether registered or unregistered and including all registrations and applications
for, and renewals or extensions of, such rights and all similar or equivalent rights or forms of protection.

 

1.34         “Trade
Secret” shall have the meaning set forth in the statutory Law of the State of Delaware (currently 20 Del. C. § 2001(4)).

 

1.35         “Trade
Secret Information” means information constituting a Trade Secret or subject to protection as a Trade Secret.

 

Article
II

COLLABORATION

 

2.1           Agreement
to Collaborate. The Parties agree to enter into good faith negotiations for the formation
of a long-term strategic relationship, more fully described in Article III, pursuant to which Customer shall
become the “launch customer” of Supplier, with a “first mover advantage” and *** with respect to
Supplier’s initial licensing of a AquaRefining and/or licensing or sale of the AquaRefining Equipment to third parties
on a delivered, installed and fully commissioned basis. The collaboration referred to in this Section 2.1 is
referred to herein as the “Development Program”.

 

 

***Text has been omitted pursuant to Registrant’s confidential treatment request filed with the
Securities and Exchange Commission (“Commission”) pursuant to Rule 24b-2 under the Securities Exchange Act of 1934. 
The omitted text has been filed separately with the Commission.

 

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2.2          Development
Program - General. The Parties agree to use their good faith, commercial best-efforts to discuss
and negotiate the Development Program consistent with the terms and conditions of Article III. The Parties acknowledge
and agree, however, that the provisions of Article III are not complete and are intended solely as the basis for further
discussions and are not intended to be, nor do they constitute, nor do they form the basis by which any arbitrator or court can
determine, a legally binding agreement of the Parties with respect to the proposed Development Program or any of the matters set
forth in Article III. Neither Party shall have any obligations or rights with respect to any of the matters set forth
in Article III until such time, if ever, as the Parties enter into a written definitive agreement reflecting the final
terms of the Development Program (“Development Program Agreement”),
including the timeline for rolling-out the Development Program and all the terms and conditions of the Development Program and
the Parties’ respective rights and obligation thereunder. The Parties agree to use their good faith, commercial best-efforts
to conclude their discussion and negotiation of the Development Program no later than April 30, 2018, and to enter into, no
later than June 30, 2018, a Development Program Agreement. Until the earlier of the expiration of the Term or the execution
by the Parties of the Development Program Agreement, Supplier agrees that it will not supply AquaRefining Equipment or license
AquaRefining to third parties. Except as set forth above with respect to Article III (Development Program), this Agreement,
particularly Article II (Collaboration), Article IV (Intellectual Property), Article VI (Termination)
and Article VII (Confidentiality), shall represent the binding agreement of the Parties.

 

Article
III

DEVELOPMENT PROGRAM

 

The Parties hereby
agree to use their good faith, commercial best-efforts to negotiate and enter into the Development Program Agreement consistent
with the following terms and conditions:

 

3.1           Term.
 The Development Program Agreement shall have an initial fixed 5-year term ending on the fifth
anniversary of the Effective Date.

 

3.2           Termination;
Automatic Extensions. The Development Program Agreement shall provide that commencing on the
second anniversary of the Effective Date, either Party shall be able to terminate the Development Program Agreement by providing
a notice of termination, the delivery and receipt of which shall trigger a termination of the Development Program Agreement on
the third anniversary of the date of such notice. Following the expiration of the initial 5-year term, the Development Program
Agreement shall automatically extend each day for another three years unless a Party has previously provided a termination notice,
in which case the Development Program Agreement will terminate on the third anniversary of the date of such notice.

 

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3.3          First
Facility. The Development Program Agreement shall provide that upon written notification from
Supplier of its readiness to convert or retrofit a Customer facility to be capable of using AquaRefining to produce lead, which
notification may be given no later than September 30, 2017, Customer will consult with Supplier to retrofit or convert the
first Customer facility (the “First Customer Facility”) with AquaRefining.

 

(a)          The
First Customer Facility will be used to develop a “blueprint” for additional facilities, pursuant to which Supplier
and Customer staff will work together to develop detailed engineering and project plans to retrofit or convert Customer’s
existing smelter-based operations to the use of Aqua Process and/or build new Customer battery recycling facilities using AquaRefining.
Appropriate consideration in such plans shall be given to the issues surrounding the necessary permitting requirements for water,
gases and other materials as a consequence of such retrofit or conversion activities.

 

(b)          In
connection with the First Customer Facility, Supplier will provide by way of licensing AquaRefining and/or sale or licensing of
AquaRefining Equipment, the following:

 

(i)          AquaRefining
and the related equipment, engineering and systems integration support sufficient to convert the existing smelter-based operation
and/or the construction of a new battery recycling facility;

 

(ii)         Supporting
equipment at Customer’s discretion;

 

(iii)        Training,
evaluation and certification of Customer’s operations personnel sufficient for such personnel to competently operate AquaRefining;
and

 

(iv)        Ongoing
technical support and preventive maintenance.

 

(c)          In
connection with the First Customer Facility, Customer will provide access to equipment operating data and parameters sufficient
for Supplier to provide ongoing technical support and preventive maintenance.

 

(d)         The
Parties will develop and set forth in the Development Program Agreement mutually acceptable payment terms for the design, planning,
equipment supply and implementation of the First Customer Facility, working together in good faith to negotiate payment to Supplier
based on the understanding that all equipment and services provided by Supplier must result in a commercially attractive recycling
facility and that the cost and effort required to develop future facilities should be reduced by the success of the First Customer
Facility. By way of illustration, payments to Supplier shall be structured on the following basis:

 

(i)          Payment
of time and expenses shall be made at mutually acceptable commercial rates for Supplier’s share of the planning and design
tasks associated with the First Customer Facility.

 

(ii)         Payment
in one or more installments in respect of the equipment made part of AquaRefining supplied and commissioned to Customer’s
satisfaction; and

 

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(iii)        Ongoing
payments, based on the operational capacity of AquaRefining Equipment supplied, for any agreed upon ongoing services and licensing
fees.

 

Given the scale of planning and preparation
work required, it is expected that Supplier will commence delivery of the AquaRefining Equipment to the First Customer Facility
with a target of March 2018.

 

3.4         Collaboration
Regarding Provision of AquaRefining Equipment Across Additional Customer Facilities. The Development
Program Agreement shall provide that, the Parties will work together in good faith to develop an approach and a mutually agreeable
plan to augment, retrofit and/or build new battery recycling facilities using AquaRefining in Customer’s facilities (the
“Customer Facilities Plan”) in the following regions: North America
(NAFTA), China and Europe (EU) (each, as they are defined on the Effective Date, a “Region”),
including all worldwide Customer recycling facilities and the recycling facilities of no more than three strategic partners of
Customer per Region, provided that each such strategic partner supplies at least 10% of Customer ‘s tolling and/or lead
offtake in the subject Region. The Development Program Agreement shall provide that the sale or lease of AquaRefining Equipment
and the license of AquaRefining to Customer and such strategic partners shall be on a ***. The Customer Facilities Plan shall
contain mutually agreeable commitments by the parties to devote sufficient resources to the plan. The Customer Facilities Plan
shall not preclude the Parties from working together to launch and install AquaRefining in any region outside of those enumerated
above. The Customer Facilities Plan shall be reviewed and updated every three months.

 

3.5         Mutual
Access to Supplier and Customer Facilities. In developing the Customer Facilities Plan, Supplier
will provide appropriate access to the facilities operated by Supplier (the “Supplier Operated Facilities”)
for the purposes of training of Customer staff in the planning, commissioning and operation of AquaRefining and supporting processes.
Similarly, Customer will provide appropriate access to the facilities operated by Customer for the purposes of planning, developing
and commissioning AquaRefining and supporting AquaRefining Equipment.

 

3.6         Subsequent
Facilities and Serviced License Terms. With respect to AquaRefining Equipment provided to facilities
covered by the Customer Facilities Plan, such provision shall be on a “serviced license” basis, in which training,
monitoring and maintenance will be included in return for:

 

(i)          Payment
of time and expenses for Supplier’ share of the planning and design tasks associated with such facilities.

 

(ii)         Payment
in one or more installments in respect of AquaRefining Equipment supplied and commissioned to Customer’s satisfaction; and

 

 

***Text has been omitted
pursuant to Registrant’s confidential treatment request filed with the Securities and Exchange Commission (“Commission”)
pursuant to Rule 24b-2 under the Securities Exchange Act of 1934.  The omitted text has been filed separately with the Commission.

 

    	 	7	 

     

    

 

(iii)        Ongoing
licensing payments, based on the operational capacity of the AquaRefining Equipment supplied, for any agreed upon ongoing services.

 

3.7          AquaRefining
Equipment Supply Planning. The Parties will align Supplier’s capacity to supply AquaRefining
with Customer’s demand for same as set forth in the Customer Facilities Plan. Consistent with the foregoing, Customer shall
provide a mutually agreeable schedule for Supplier to supply AquaRefining Equipment to Customer on a monthly basis (the “Customer
Call-Off Schedule”).

 

3.8          Supplier’s
Right to Provide Equipment to Third Parties. Provided that Supplier is meeting Customer’s
scheduled demand as outlined in Section 3.7, above, Supplier shall be free to provide AquaRefining Equipment in any
Region to third parties not affiliated with Customer, provided that it is on a delivered, installed and fully commissioned basis.
Notwithstanding the foregoing, the Development Program Agreement will provide that Supplier will not supply AquaRefining Equipment
or license AquaRefining to third parties until the following conditions have been met:

 

(i)          The
initial planning for the First Customer Facility has been completed and resources have been identified and allocated to the Parties’
mutual satisfaction; and

 

(ii)         Customer
has developed and delivered its first Customer Call-Off Schedule.

 

The parties agree that time is of the essence
and to the consideration of reasonableness with respect to the above terms.

 

3.9         Intellectual
Property Matters. Except as otherwise agreed by the Parties, the Development Program Agreement
shall provide for each Party’s rights and obligations with respect to Intellectual Property Rights consistent with Article IV
of this Agreement. The Development Program Agreement shall provide Customer with rights to use the AquaRefining Technology after
termination of the Development Program Agreement on terms and in circumstances mutually agreeable to the Parties, which rights,
terms and circumstances shall include that in the event of the early termination of Development Program Agreement based on breach
by Supplier, Customer shall be afforded indefinite access to the AquaRefining Technology sufficient to maintain and operate any
and all AquaRefining Equipment provided by Supplier prior to termination. For the avoidance of doubt, it is not contemplated by
the Parties that continuing access to the AquaRefining Technology shall include broad rights to manufacture or procure additional
AquaRefining Equipment. Such continuing access shall be defined by mutual consent in the Development Program Agreement. By way
of example, such continuing access shall provide for continuation of licenses or other forms of AquaRefining Technology rights,
operating manuals, drawings of serviceable parts, suppliers of serviceable parts, operator training materials, etc.

 

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Article
IV

INTELLECTUAL
PROPERTY

 

4.1           Ownership
Generally. The Parties agree that, as between the Parties, Supplier will retain all right, title
and interest in, and sole and exclusive ownership of, the AquaRefining Technology and any and all other Intellectual Property Rights
or Know-How (to the extent the Know-How is Confidential Information) that were conceived, developed, owned or controlled by Supplier
as of or prior to the Effective Date, and Customer will retain all right, title and interest in, and sole and exclusive ownership
of, any and all Intellectual Property Rights or Know-How (to the extent the Know-How is Confidential Information) that were conceived,
developed, owned or controlled by Customer as of or prior to the Effective Date. Each Party further acknowledges and agrees that,
subject to Section 4.2, no rights or licenses to the other Party’s Intellectual Property Rights or Know-How are
granted by either Party by way of this Agreement to the other Party, whether expressly or by implication or estoppel. If during
the term of the Development Program Agreement, the Parties agree to jointly develop Intellectual Property, then the Parties shall
enter into a new written agreement to govern their rights and obligations with respect to that Intellectual Property.

 

4.2           AquaRefining
Improvements and Inventions. The Parties agree that, as between the Parties, all Improvements,
and any other inventions, Intellectual Property Rights or Know-How (to the extent the Know-How is Confidential Information) relating
to the AquaRefining Technology that are conceived or developed by either Supplier or Customer after the Effective Date of this
Agreement, whether conceived or developed solely by or on behalf of Supplier, solely by or on behalf of Customer, or jointly by
Supplier and Customer (collectively, the “Developed AquaRefining Technology”),
shall belong to and be solely and exclusively owned by Supplier, and Customer agrees to assign, and hereby does irrevocably assign,
to Supplier all right, title and interest in and to the Developed AquaRefining Technology; provided, that if the Developed AquaRefining
Technology is conceived or developed solely by or on behalf of Customer (a “Customer Improvement”),
Customer will receive from Supplier a worldwide, royalty free, non-transferrable (other than to Affiliates of Customer) and perpetual
license to use the Customer Improvement in its recycling operations and the recycling operations of its strategic tolling partners
conducted for Customer’s benefit; provided, further that the foregoing license to the Customer Improvement shall not create
or give rise to any other express or implied license to the AquaRefining Technology. At Supplier ‘s request, during and after
the term of this Agreement, Customer will assist and cooperate with Supplier in all respects (and will cause any personnel and
subcontractors to assist and cooperate with Supplier in all respects), and give testimony and execute documents (and cause its
personnel and subcontractors to give testimony and execute documents), and take such further acts as may be reasonably requested
by Supplier to enable Supplier to acquire, transfer, maintain, perfect and enforce its rights in and to the Developed AquaRefining
Technology; provided, that Supplier will pay all reasonable out-of-pocket costs and expenses incurred by Customer to provide such
assistance and cooperation described above. Customer agrees to carry out and enforce with its officers, employees, agents and consultants
all assignment of invention agreements reasonably necessary to assign all right, title and interest in and to the Developed AquaRefining
Technology to Supplier as contemplated hereunder.

 

4.3           Indemnification
Relating to Intellectual Property of Supplier. Supplier shall indemnify, defend and hold harmless
the Customer, its Affiliates and their respective officers, directors, shareholders, employees, agents and customers (the “Customer
Indemnified Parties”) from and against any loss, damage, liability, claim, deficiency,
action, judgment, interest, award, penalty, fine, cost or expense (including reasonable attorney, consultant and professional fees
and costs), and the cost of enforcing any right to indemnification hereunder and the cost of pursuing any insurance providers,
resulting from all Claims alleging that AquaRefining, any of the AquaRefining Technology or the AquaRefining Equipment, or any
of the other Intellectual Property Rights, Know-How or Trade Secrets of Supplier, infringes the proprietary rights of any third
party.

 

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Article
V

REPRESENTATIONS AND WARRANTIES

 

5.1          Mutual
Representations and Warranties. Each Party hereby represents and warrants to the other Party
that:

 

(a)           it
is a corporation or limited liability company, as the case may be, duly organized, validly existing and in good standing under
the Laws of its jurisdiction of organization;

 

(b)           it
is duly qualified to do business and is in good standing in every jurisdiction in which such qualification is required, except
where the failure to be so qualified, would not reasonably be expected to adversely affect its ability to perform its obligations
under this Agreement;

 

(c)           it
has the full right, power and authority to enter into this Agreement and to perform its obligations hereunder;

 

(d)           the
execution of this Agreement by such Party, and the delivery of this Agreement by such Party, have been duly authorized by all necessary
action on the part of such Party;

 

(e)           the
execution, delivery and performance of this Agreement by such Party will not violate, conflict with, require consent under or result
in any breach or default under (i) any of such Party’s organizational documents, (ii) any applicable Law or (iii) with
or without notice or lapse of time or both, the provisions of any contract to which it is a Party;

 

(f)           this
Agreement have been executed and delivered by such Party and (assuming due authorization, execution and delivery by the other Party
hereto) constitutes the legal, valid and binding obligation of such Party, enforceable against it in accordance with its terms,
except as may be limited by any applicable bankruptcy, insolvency, reorganization, moratorium, or similar Laws and equitable principles
related to or affecting creditors’ rights generally or the effect of general principles of equity;

 

(g)           it
is in material compliance with all applicable Laws; and

 

(h)           it
has sufficient working capital to perform its obligations under this Agreement and it is not insolvent.

 

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Article
VI

TERM; TERMINATION

 

6.1           Term.
Subject to early termination pursuant to this Agreement, this Agreement may be terminated (i) by written agreement of the
Parties or (ii) by either Supplier or Customer upon sixty (60) days’ prior written notice to the other Party if the
Development Program Agreement has not been entered into by June 30, 2018 (“Outside Termination Date”);
provided, that the right to terminate this Agreement under Section 6.1(ii) shall not be available to any Party whose
failure to comply with its obligations under this Agreement has been the primary cause of or primarily resulted in the failure
of the Parties to enter into the Development Program by the Outside Termination Date. In the event either Party delivers its notice
of termination under Section 6.1(ii), each Party shall remain obligated to use its good faith, commercial best-efforts
to negotiate and enter into the Development Program Agreement during the sixty (60) day notice period.

 

6.2           Early
Termination. Either Party may terminate this Agreement upon ten (10) days prior written notice
to the other Party in the event of any material breach of this Agreement by the other Party that goes uncorrected for thirty (30)
days following written notice to the breaching Party.

 

6.3           Consequences
of Termination. Upon the termination of this Agreement, (i) each of the Parties shall promptly
comply with the provisions of Section 7.3 (regarding the return of all Confidential Information, Trade Secret Information
and related information and materials); and (ii) Article IV, Article V and Article VII
shall survive any expiration or termination of this Agreement. Termination or expiration of this Agreement shall not affect any
rights or liabilities accrued prior to such expiration or termination.

 

Article
VII

CONFIDENTIALITY

 

7.1           Restrictions
on Disclosure and Use of Confidential Information. Recipient shall not use the Confidential Information
of Discloser for any purpose except for the purpose of performing its obligations and exercising its rights under this Agreement.
Recipient shall maintain the confidentiality of all Confidential Information of Discloser with at least the same degree of care
it uses to protect its own proprietary information of a similar nature or sensitivity, but no less than reasonable care under the
circumstances. Unless Discloser grants specific, written, advance permission to do so, Recipient shall not disclose any Confidential
Information to any third party except as provided for in this Article VII. Recipient shall limit access to Confidential
Information of Discloser to those employees, contractors, or distributors of Recipient (collectively, “Representatives”)
who have a need to know such information in order to assist Recipient in performance of its obligations and/or exercise of its
rights under this Agreement and who are bound by confidentiality and non-use obligations to Recipient at least equivalent to Recipient’s
obligations to Discloser under this Agreement; provided, that, the Recipient shall be responsible for indemnifying the Discloser
against any Claims or Liabilities of the Discloser arising out of the Representatives’ use or disclosure of such Confidential
Information in a manner that the Recipient would not be permitted to use or disclose hereunder.

 

7.2           Exceptions.
Recipient may disclose Confidential Information to the extent required by Laws or order of a court of competent jurisdiction, provided
that, in such event, Recipient shall provide Discloser prompt, advance notice of such requirement to allow intervention (and shall
cooperate with Discloser) to contest or minimize the scope of the disclosure (including through application for a protective order)
and provide the Discloser with a copy of the proposed disclosure in sufficient time to allow reasonable opportunity to comment
thereon.

 

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7.3           Return
of Confidential Information. Upon any expiration or termination of this Agreement and at any
time upon written request by the Discloser, Recipient shall return all Confidential Information of Discloser and any copies thereof
and all notes, memoranda or analysis relating thereto, and, to the extent legally permitted, delete or destroy all notes, documents,
electronic mail or other computer storage which contain any Confidential Information and certify to the deletion or destruction
within thirty (30) days after such written request from the Discloser; provided, however, that (a) the foregoing requirements
do not apply to the extent that the Recipient is entitled to continue to use such Confidential Information pursuant to the terms
of this Agreement, (b) the Recipient may retain one (1) copy of Confidential Information in a secure location for compliance
purposes; and (c) the Recipient shall not be required to erase any computer records or files containing Confidential Information
that have been created pursuant to standard archiving or back-up procedures, if applicable, if the Recipient continues to maintain
the confidentiality of, and does not use for any purpose, such archived or backed-up information in accordance with the confidentiality
and non-use restrictions hereunder.

 

7.4           Reservation
of Rights. Any and all rights not expressly granted to Recipient herein are reserved by Discloser
and no rights shall be implied for the benefit of Recipient as a result of this Agreement or the Parties’ activities hereunder.

 

7.5           Hiring
of Employees. During the Term and for a period of twelve (12) months thereafter, neither Supplier
(nor Supplier’s Affiliates) shall (i) directly or indirectly encourage any employee of Customer to terminate such employee’s
employment with Customer, or solicit such an individual for employment (or engagement as a contractor or consultant) outside Customer
in a manner which would end or diminish the employee’s services to Customer, or (ii) hire, in any capacity, including
as an employee, contractor or consultant, any individual who is either an employee of Customer or was an employee of Customer during
the prior twelve (12) month period, without the prior written consent of Customer.

 

Article
VIII

GENERAL TERMS AND CONDITIONS

 

8.1           Notice.
Each Party shall designate an authorized representative for receipt of any notice or requests provided for or permitted under this
Agreement (“Authorized Representative”). Any notice or request provided
for or permitted under this Agreement shall be in writing and shall be delivered in person or by facsimile, registered or certified
mail return receipt requested, express delivery service or other nationally recognized overnight delivery service to the Authorized
Representative of the other Party. Notice shall be considered given when received by the Authorized Representative at the address
designated below. Either Party, by notice to the other Party in accordance with this Section 8.1, may change its Authorized
Representative and/or address for receiving such notices.

 

    	 	12	 

     

    

 

	To Customer:	Johnson Controls Battery Group, Inc.
		5757 N. Green Bay Avenue
	 	Milwaukee, WI 53209
	 	Attention:  ***

 

	With a copy to:	Johnson Controls Battery Group, Inc.
	(for informational	5757 N. Green Bay Avenue
	purposes only)	Milwaukee, WI 53209
	 	Attention:  ***

	 	 
	To Supplier:	Aqua Metals, Inc.
	 	1010 Atlantic Avenue
	 	Alameda, CA 94501
	 	Attention:  ***
	 	 
	With a copy to:	Greenberg Traurig, LLP
	 	3161 Michelson Drive, Suite 1000
	 	Irvine, CA 92612
	 	Attention:  ***

 

8.2           Governing
Law. The rights and obligations of the Parties to this Agreement and the validity, construction,
interpretation and performance of this Agreement and any claims arising under or related to this Agreement, whether in contract
or tort, shall be governed by, construed and enforced in accordance with the laws of Delaware without regard to the provisions
thereof concerning conflict of laws. The United Nations Convention on Contracts for the International Sales of Goods is expressly
excluded from application to this Agreement in any way.

 

8.3           Injunctive
Relief. The Parties expressly acknowledge and agree that any breach or threatened breach by either
Party of Article IV or Article VII, may cause immediate and irreparable harm to the other Party which may
not be adequately compensated with money damages. Each Party therefore agrees that in the event of such breach or threatened breach
and in addition to any remedies available at Law, the Party seeking a remedy for such breach or threatened breach shall have the
right to seek equitable and injunctive relief from a court having jurisdiction, without bond for any permanent injunctive relief,
in connection with such a breach or threatened breach.

 

 

***Text has been omitted
pursuant to Registrant’s confidential treatment request filed with the Securities and Exchange Commission (“Commission”)
pursuant to Rule 24b-2 under the Securities Exchange Act of 1934.  The omitted text has been filed separately with the Commission.

 

    	 	13	 

     

    

 

8.4          Dispute
Resolution.

 

(a)           The
Parties may, but are not obligated to, attempt to resolve any dispute informally as follows:

 

(i)          Either
Party may initiate the informal dispute resolution process by giving written notice of a dispute (“Dispute Notice”)
to the other Party. The other Party shall have five (5) Business Days to respond. The Dispute Notice and the response shall
each include: (1) a statement of the Party’s position and a summary of arguments supporting that position, and (2) the
name and title of the designated representative who will represent that Party in attempting to resolve the dispute.

 

(ii)         Within
ten (10) Business Days of delivery of the Dispute Notice, the Parties’ designated representatives will meet (and will continue
to meet as often as the Parties choose) to gather and furnish to one-another the information necessary and appropriate to resolve
the dispute. The designated representatives will discuss the problem and attempt to resolve the dispute without any additional
formal proceeding.

 

(iii)        If,
within twenty (20) Business Days of the delivery of the Dispute Notice, the designated representatives are unable to resolve the
dispute, either Party may escalate the dispute to the appropriate senior manager(s) within their organization. The senior managers
of each Party will then meet (and continue to meet as often as the Parties choose) to attempt in good faith to resolve the dispute.

 

(iv)        All
negotiations pursuant to this Section 8.4 will be confidential and will be treated as compromise and settlement negotiations
for purposes of the applicable rules of evidence.

 

(v)         Either
Party may end an informal dispute resolution process at any time and for any reason.

 

(b)          If
the informal dispute resolution above is not initiated or, if initiated, does not resolve the dispute, either Party may pursue
its rights in litigation. In all such cases the Parties agree and consent to the exclusive jurisdiction of the State of Delaware.
Each Party shall bear its own costs, including all attorneys’ fees, incurred in litigation arising under this Agreement.
If the court awards a temporary restraining order, preliminary injunction, or other interim equitable relief to either Party, the
Party receiving such relief shall not be required to post a bond (if permitted by Law).

 

(c)          The
Parties agree that they shall not raise, and hereby waive, any defenses based upon venue, inconvenience of forum or lack of personal
jurisdiction in any action or suit brought in accordance with Section 8.4(b).

 

8.5         Cumulative
Remedies. Customer’s rights and remedies under this Agreement are cumulative and are in
addition to any other rights and remedies available at Law, equity or otherwise.

 

    	 	14	 

     

    

 

8.6          Non-Waiver.
The failure to enforce at any time any of the provisions of this Agreement or to require at any time performance by any Party of
any of the provisions hereof shall in no way be construed to be a waiver of such provisions or to affect the validity of this Agreement,
or any part hereof, or the right of any Party thereafter to enforce each and every such provision in accordance with the terms
of this Agreement.

 

8.7          Assignments
and Subcontracts. Except as set forth in Section 2.2, this Agreement and all of the
terms and provisions hereof shall be binding upon and inure to the benefit of the Parties hereto and their respective successors
and permitted assigns. Neither Party may assign or subcontract this Agreement, or any of its rights, interests or obligations hereunder
(whether voluntarily or involuntarily, by operation of Law or otherwise), without the prior written consent of the other Party.

 

8.8          Status
of the Parties. Each Party hereby represents and warrants that it is engaged in an independent
business and shall perform its obligations under this Agreement as an independent contractor and not as an agent or employee of
or a joint venturer with the other Party; that the persons performing the services hereunder are not agents or employees of the
other Party; that each Party has and hereby retains, except as set forth herein, the right to exercise full control with respect
to the means of its performance hereunder and full control over the employment, direction, compensation and discharge of all its
employees, agents and subcontractors assisting in such performance; that each Party shall be solely responsible for all matters
relating to payment of such employees, including compliance with worker’s compensation, unemployment and disability insurance,
social security withholding, and all such matters; and that each Party shall be responsible for its acts and the acts of all agents,
employees and contractors employed by it during its performance under this Agreement. Neither Party shall hold itself out as having
authority to create binding obligations for the other Party, nor create or purport to create any binding obligations for the other
Party whatsoever.

 

8.9          Headings.
The Section headings included throughout this Agreement are for convenience only and are not intended to affect the meaning or
interpretation of this Agreement.

 

8.10        Acceptance
and Signatures in Counterparts. This Agreement shall not be effective unless and until it is
signed by all Parties, and cannot be accepted by any other means. This Agreement may be executed in any number of counterparts,
each of which shall be deemed an original and all of which taken together shall be deemed to constitute one and the same instrument.
An executed signature page of this Agreement delivered by facsimile or email transmission shall be as effective as an original
executed signature page.

 

8.11        Construction.
This Agreement has been negotiated and drafted by both Parties, and neither Party shall be considered the drafter or primary drafter
of this Agreement. Notwithstanding any rule of construction to the contrary, the Parties agree that this Agreement shall not be
interpreted against either Party on the basis that such Party was the drafter or primary drafter of the Agreement.

 

    	 	15	 

     

    

 

8.12        Insurance.
During the Term and for a period of two years thereafter, each Party shall, at its own expense, maintain and carry insurance in
full force and effect which includes, but is not limited to, commercial general liability (including product liability) in a sum
no less than Five Million US Dollars ($5,000,000 UDS) and workers’ compensation coverage consistent with statutory requirements
with financially sound and reputable insurers. Upon Customer’s request, Supplier shall provide Customer with a certificate
of insurance from Supplier ‘s insurer evidencing the insurance coverage specified in this Agreement. The certificate of insurance
shall name Customer as an additional insured. Supplier shall provide Customer with thirty (30) days’ advance written notice
in the event of a cancellation or material change in Supplier ‘s insurance policy. Except where prohibited by law, Supplier
shall require its insurer to waive all rights of subrogation against Customer ‘s insurers and Customer or the Customer Indemnified
Parties.

 

8.13        Amendment;
Complete Agreement.

 

(a)           Amendment.
Except as otherwise provided herein, this Agreement may be varied or amended only by the written and signed agreement of the Parties
through their Authorized Representatives, specifically referring to this Agreement.

 

(b)           Complete
Agreement. This Agreement and other documents expressly incorporated by reference herein, constitute the complete and exclusive
statement of the terms of the Agreement between the Parties with respect to the subject matter hereof, and supersede any prior
or contemporaneous communications, with respect to the subject matter hereof, including, without limitation, that certain Confidential
Indicative Term Sheet for Potential Strategic Relationship Between Johnson Controls International plc and Supplier dated January 12,
2017. No statement or agreements, oral or written, made prior to or at the signing hereof shall vary or modify the written terms
hereof, and neither Party shall claim any modification or rescission from any provision hereof unless such modification or rescission
is in writing and signed by the Authorized Representative of the other Party.

 

8.14        Severability.
If any provision of this Agreement is held to be invalid, illegal or unenforceable in any respect, then to the fullest extent permitted
by applicable Law such provision will be severed and shall not be considered part of this Agreement. All other provisions of this
Agreement shall remain in full force and effect. However, in the event such provision is considered an essential element of this
Agreement, the Parties shall promptly negotiate a valid and enforceable replacement for the provision that is consistent with applicable
law and achieves, as nearly as possible, the original intention of the Parties. To the fullest extent permitted by applicable Law,
the Parties waive any provision of Law that would render any provision of this Agreement invalid, illegal or unenforceable in any
respect.

 

[Signature Page Follows]

 

    	 	16	 

     

    

 

IN WITNESS WHEREOF,
the Parties hereto have as of the Effective Date duly executed this Agreement.

 

	SUPPLIER:	 	CUSTOMER:
	 	 	 
	Aqua Metals, Inc.	 	Johnson Controls Battery Group, Inc.
	 	 	 
	By:	/s/ Dr. Stephen R. Clarke	 	By:	/s/ Brian Stiel
	 	Dr. Stephen R. Clarke,	 	 	
        Brian Stiel,

	 	Chief Executive Officer	 	 	EVP and Chief Financial Officer

 

    	 	17Exhibit 10.3

 

EXECUTION
COPY

 

STOCK
PURCHASE AGREEMENT

 

by
and between

 

AQUA
METALS, INC.

 

and

 

TYCO
INTERNATIONAL FINANCE S.A.

 

dated
as of February 7, 2017

 

     

     

    

 

Table
of Contents

 

	 	 	Page
	 	 	 
	Article I DEFINITIONS	1
	 	 	 
	Article II PURCHASE AND
    SALE	7
	 	 	 
	Section 2.01	Purchase and Sale	7
	 	 	 
	Section 2.02	Transactions Effected at the Closing	7
	 	 	 
	Section 2.03	Closing	7
	 	 	 
	Section 2.04	Use of Proceeds	7
	 	 	 
	Article III REPRESENTATIONS
    AND WARRANTIES OF THE COMPANY	7
	 	 	 
	Section 3.01	Organization, Qualification and Authority of the Company	8
	 	 	 
	Section 3.02	Capitalization	8
	 	 	 
	Section 3.03	Subsidiaries	9
	 	 	 
	Section 3.04	SEC Documents	9
	 	 	 
	Section 3.05	No Defaults; Violations	10
	 	 	 
	Section 3.06	Consents	10
	 	 	 
	Section 3.07	No Conflicts, etc	10
	 	 	 
	Section 3.08	Disclosure Controls	11
	 	 	 
	Section 3.09	Accounting Controls	11
	 	 	 
	Section 3.10	Financial Statements	11
	 	 	 
	Section 3.11	Independent Accountants	12
	 	 	 
	Section 3.12	Undisclosed Liabilities	12
	 	 	 
	Section 3.13	Absence of Certain Changes, Events and Conditions	12
	 	 	 
	Section 3.14	Disclosure of Agreements	14
	 	 	 
	Section 3.15	Title to Assets; Real Progeny	14
	 	 	 
	Section 3.16	Intellectual Property	15
	 	 	 
	Section 3.17	Insurance	16
	 	 	 
	Section 3.18	Legal Proceedings; Governmental Orders	16
	 	 	 
	Section 3.19	Possession of Licenses and Permits	16
	 	 	 
	Section 3.20	Environmental Laws	17
	 	 	 
	Section 3.21	Employee Benefit Matters	17
	 	 	 
	Section 3.22	Employment Matters	19
	 	 	 
	Section 3.23	No Registration Required	20
	 	 	 
	Section 3.24	No Integration	20

 

     i

     

    

  

	Section 3.25	No Side Agreements	20
	 	 	 
	Section 3.26	NASDAQ Listing of Shares	21
	 	 	 
	Section 3.27	Taxes	21
	 	 	 
	Section 3.28	Books and Records	21
	 	 	 
	Section 3.29	Brokers	21
	 	 	 
	Section 3.30	Related Party Transactions	21
	 	 	 
	Section 3.31	Money Laundering Laws	22
	 	 	 
	Section 3.32	OFAC	22
	 	 	 
	Section 3.33	Investment Company Act	22
	 	 	 
	Section 3.34	Foreign Corrupt Practices Act	22
	 	 	 
	Section 3.35	Officer’s Certificate	22
	 	 	 
	Article IV REPRESENTATIONS
    AND WARRANTIES OF PURCHASER	23
	 	 	 
	Section 4.01	Organization and Authority of Purchaser	23
	 	 	 
	Section 4.02	No Conflicts; Consents	23
	 	 	 
	Section 4.03	Investment Purpose	23
	 	 	 
	Section 4.04	Brokers	24
	 	 	 
	Section 4.05	Legend	24
	 	 	 
	Section 4.06	Accredited investor Status	24
	 	 	 
	Article V CONDITIONS TO
    CLOSING	24
	 	 	 
	Section 5.01	Conditions to Obligations of All Parties	24
	 	 	 
	Section 5.02	Conditions to Obligations of Purchaser	24
	 	 	 
	Section 5.03	Conditions to Obligations of the Company	26
	 	 	 
	Article VI COVENANTS	26
	 	 	 
	Section 6.01	Taking of Necessary Action	26
	 	 	 
	Section 6.02	Supplemental Listing Application	27
	 	 	 
	Section 6.03	Further Assurances	27
	 	 	 
	Article VII INDEMNIFICATION	27
	 	 	 
	Section 7.01	Survival	27
	 	 	 
	Section 7.02	Indemnification by Company	27
	 	 	 
	Section 7.03	Payments	28
	 	 	 
	Section 7.04	Tax Treatment of Indemnification Payments	28
	 	 	 
	Section 7.05	Effect of Investigation	28
	 	 	 
	Section 7.06	Exclusive Remedies	28

 

     ii

     

    

  

	Article VIII MISCELLANEOUS	29
	 	 	 
	Section 8.01	Expenses	29
	 	 	 
	Section 8.02	Notices	29
	 	 	 
	Section 8.03	Interpretation	30
	 	 	 
	Section 8.04	Removal of Legend	30
	 	 	 
	Section 8.05	Headings	31
	 	 	 
	Section 8.06	Severability	31
	 	 	 
	Section 8.07	Entire Agreement	31
	 	 	 
	Section 8.08	Successors and Assigns	31
	 	 	 
	Section 8.09	No Third-party Beneficiaries	32
	 	 	 
	Section 8.10	Amendment and Modification; Waiver	32
	 	 	 
	Section 8.11	Governing Law; Submission to Jurisdiction; Waiver of Jury Trial	32
	 	 	 
	Section 8.12	Specific Performance	33
	 	 	 
	Section 8.13	Counterparts	33
	 	 	 
	Section 8.14	Termination	33
	 	 	 
	Section 8.15	Recapitalization, Exchange, etc	33
	 	 	 
	Section 8.16	Failure to Timely Deliver; Buy-In	34

 

Exhibits
and Schedules

 

Disclosure
Schedules

 

Exhibit
A – Investor Rights Agreement

 

     iii

     

    

 

EXECUTION
COPY

 

STOCK
PURCHASE AGREEMENT

 

This
Stock Purchase Agreement (this “Agreement”), dated as of February 7, 2017, is entered into by and between Aqua
Metals, Inc., a Delaware corporation (the “Company”), and Tyco International Finance S.A., a company organized
under the laws of Luxembourg (“Purchaser”).

 

RECITALS

 

WHEREAS,
the Company has authorized the issuance and sale by the Company to the Purchaser of shares of common stock of the Company, par
value $0.001 per share (the “Common Stock”); and

 

WHEREAS,
the Company desires to issue and sell to Purchaser, and Purchaser desires to purchase from the Company, shares of the Common Stock,
on the terms and subject to the conditions set forth in this Agreement.

 

NOW,
THEREFORE, in consideration of the premises and the representations warranties, covenants and agreements contained in this Agreement,
and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and intending to
be legally bound, the parties hereby agree as follows:

 

Article
I

DEFINITIONS

 

The
following terms have the meanings specified or referred to in this Article I:

 

“Action”
means any claim, action, cause of action, demand, lawsuit, arbitration, inquiry, audit, notice of violation, proceeding, litigation,
citation, summons, subpoena or investigation of any nature, civil, criminal, administrative, regulatory or otherwise, whether
at law or in equity.

 

“Affiliate”
of a Person means any other Person that directly or indirectly, through one or more intermediaries, controls, is controlled by,
or is under common control with, such Person. The term “control” (including the terms “controlled by”
and “under common control with”) means the possession, directly or indirectly, of the power to direct or cause the
direction of the management and policies of a Person, whether through the ownership of voting securities, by contract or otherwise
..

 

“Agreement”
has the meaning set forth in the preamble.

 

“Audited
Financial Statements” has the meaning set forth in Section 3.10.

 

“Balance
Sheet” has the meaning set forth in Section 3.10.

 

“Balance
Sheet Date” has the meaning set forth in Section 3.10.

 

“Benefit
Plan” has the meaning set forth in Section 3.21(a).

 

     

     

    

 

“Business
Day” means any day except Saturday, Sunday or any other day on which commercial banks located in Milwaukee, Wisconsin
are authorized or required by Law to be closed for business.

 

“Bylaws”
means the Amended and Restated Bylaws of the Company, as may be amended, restated or modified from time to time.

 

“CERCLA”
means the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended by the Superfund Amendments
and Reauthorization Act of 1986, 42 U.S.C. §§ 9601 et seq.

 

“Certificate
of Incorporation” means that certain First Amended and Restated Certificate of Incorporation of the Company filed with
the Delaware Secretary of State on October 1, 2014, as may be amended, restated or modified from time to time.

 

“Closing”
has the meaning set forth in Section 2.03.

 

“Closing
Date” has the meaning set forth in Section 2.03.

 

“Code”
means the Internal Revenue Code of 1986, as amended.

 

“Common
Stock” has the meaning set forth in the recitals.

 

“Company”
has the meaning set forth in the preamble.

 

“Contracts”
means all contracts, leases, deeds, mortgages, licenses, instruments, notes, loans, commitments, undertakings, indentures, joint
ventures and all other agreements, commitments and legally binding arrangements, whether written or oral.

 

“Disclosure
Schedules” means the Disclosure Schedules delivered by the Company and Purchaser concurrently with the execution and
delivery of this Agreement.

 

“Dollars”
or “$” means the lawful currency of the United States.

 

“Employment
Laws” has the meaning set forth in Section 3.22(d).

 

“Encumbrance”
means any charge, claim, community property interest, pledge, condition, equitable interest, lien (statutory or other), option,
security interest, mortgage, easement, encroachment, right of way, right of first refusal, or restriction of any kind, including
any restriction on use, voting, transfer, receipt of income or exercise of any other attribute of ownership.

 

“Environmental
Claim” means any Action, Governmental Order, lien, fine, penalty, or, as to each, any settlement or judgment arising
therefrom, by or from any Person alleging liability of whatever kind or nature (including liability or responsibility for the
costs of enforcement proceedings, investigations, cleanup, governmental response, removal or remediation, natural resources damages,
property damages, personal injuries, medical monitoring, penalties, contribution, indemnification and injunctive relief) arising
out of, based on or resulting from: (a) the presence, Release of, or exposure to, any Hazardous Materials; or (b) any actual
or alleged non-compliance with any Environmental Law or term or condition of any Environmental Permit.

 

    	 	2	 

     

    

 

“Environmental
Law” means any applicable Law, and any Governmental Order or binding agreement with any Governmental Authority: (a)
relating to pollution (or the cleanup thereof) or the protection of natural resources, endangered or threatened species, human
health or safety, or the environment (including ambient air, soil, surface water or groundwater, or subsurface strata); or (b)
concerning the presence of, exposure to, or the management, manufacture, use, containment, storage, recycling, reclamation, reuse,
treatment, generation, discharge, transportation, processing, production, disposal or remediation of any Hazardous Materials.
The term “Environmental Law” includes, without limitation, the following (including their implementing regulations
and any state analogs): the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended by the Superfund
Amendments and Reauthorization Act of 1986, 42 U.S.C. §§ 9601 et seq.; the Solid Waste Disposal Act, as amended by the
Resource Conservation and Recovery Act of 1976, as amended by the Hazardous and Solid Waste Amendments of 1984, 42 U.S.C. §§
6901 et seq.; the Federal Water Pollution Control Act of 1972, as amended by the Clean Water Act of 1977, 33 U.S,C. §§
1251 et seq.; the Toxic Substances Control Act of 1976, as amended, 15 U.S.C. §§ 2601 et seq.; the Emergency Planning
and Community Right-to-Know Act of 1986, 42 U.S.C. §§ 11001 et seq.; the Clean Air Act of 1966, as amended by the Clean
Air Act Amendments of 1990, 42 U.S.C. §§ 7401 et seq.; and the Occupational Safety and Health Act of 1970, as amended,
29 U.S.C. §§ 651 et seq.

 

“Environmental
Notice” means any written directive, notice of violation or infraction, or notice respecting any Environmental Claim
relating to actual or alleged non-compliance with any Environmental Law or any term or condition of any Environmental Permit.

 

“Environmental
Permit” means any Permit, letter, clearance, consent, waiver, closure, exemption, decision or other action required
under or issued, granted, given, authorized by or made pursuant to Environmental Law.

 

“ERISA”
means the Employee Retirement Income Security Act of 1974, as amended, and the regulations promulgated thereunder.

 

“ERISA
Affiliate” means any trade or business (whether or not incorporated) that, together with the Company, is treated as
a single employer under Section 414(b), (c), (m) or (o) of the Code.

 

“Equipment
Supply Agreement” means that certain Equipment Supply Agreement, dated as of the date hereof, by and between Johnson
Controls Battery Group, Inc., an Affiliate of Purchaser, and the Company.

 

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

 

“Financial
Statements” has the meaning set forth in Section 3.10.

 

    	 	3	 

     

    

 

“FINRA”
means the Financial Industry Regulatory Authority, Inc.

 

“GAAP”
means United States generally accepted accounting principles in effect from time to time.

 

“Governmental
Authority” means any federal, state, local or foreign government or political subdivision thereof, or any agency or
instrumentality of such government or political subdivision, or any self-regulated organization or other non-governmental regulatory
authority or quasi-governmental authority (to the extent that the rules, regulations or orders of such organization or authority
have the force of Law), or any arbitrator, court or tribunal of competent jurisdiction.

 

“Governmental
Licenses” has the meaning set forth in Section 3.19.

 

“Governmental
Order” means any order, writ, judgment, injunction, decree, stipulation, determination or award entered by or with any
Governmental Authority.

 

“Hazardous
Materials” means: (a) any material, substance, chemical, waste, product, derivative, compound, mixture, solid, liquid,
mineral or gas, in each case, whether naturally occurring or man-made, that is hazardous, acutely hazardous, toxic, or words of
similar import or regulatory effect under Environmental Laws; and (b) any petroleum or petroleum-derived products, radon, radioactive
materials or wastes, asbestos in any form, lead or lead-containing materials, urea formaldehyde foam insulation, and polychlorinated
biphenyls.

 

“Insurance
Policies” has the meaning set forth in Section 3.17.

 

“Intellectual
Property Rights” has the meaning set forth in Section 3.16.

 

“Interim
Balance Sheet” has the meaning set forth in Section 3.10.

 

“Interim
Balance Sheet Date” has the meaning set forth in Section 3.10.

 

“Interim
Financial Statements” has the meaning set forth in Section 3.10.

 

“Investor
Rights Agreement” means the Investor Rights Agreement, dated as of the date hereof, by and between the Company and the
Purchaser, substantially in the form attached hereto as Exhibit A.

 

“Knowledge
of the Company” or “the Company’s Knowledge” or any other similar knowledge qualification,
means the actual knowledge of any director or officer of the Company.

 

“Law”
means any statute, law, ordinance, regulation, rule, code, order, constitution, treaty, common law, judgment, decree, other requirement
or rule of law of any Governmental Authority.

 

“Liabilities”
has the meaning set forth in Section 3.12.

 

    	 	4	 

     

    

 

“Losses”
means losses, damages, liabilities, deficiencies, Actions, judgments, interest, awards, penalties, fines, costs or expenses of
whatever kind, including reasonable attorneys’ fees and the cost of enforcing any right to indemnification hereunder and
the cost of pursuing any insurance providers; provided, that “Losses” shall not include any punitive or exemplary
damages.

 

“Material
Adverse Effect” means any event, occurrence, fact, condition or change that is, or could reasonably be expected to become,
individually or in the aggregate, materially adverse to the business, results of operations, prospects, condition (financial or
otherwise) or assets of the Company.

 

“Money
Laundering Laws” has the meaning set forth in Section 3.31.

 

“Multiemployer
Plan” has the meaning set forth in Section 3.21(c).

 

“NASDAQ”
means the Nasdaq Capital Market.

 

“OFAC”
has the meaning set forth in Section 3.32.

 

“Permits”
means all permits, licenses, franchises, approvals, authorizations, registrations, certificates, variances and similar rights
obtained, or required to be obtained, from Governmental Authorities.

 

“Permitted
Encumbrances” has the meaning set forth in Section 3.15(a).

 

“Person”
means an individual, corporation, partnership, joint venture, limited liability company, Governmental Authority, unincorporated
organization, trust, association or other entity.

 

“Per
Share Purchase Price” has the meaning set forth in Section 2.01.

 

“Purchase
Price” has the meaning set forth in Section 2.01.

 

“Purchaser”
has the meaning set forth in the preamble.

 

“Purchaser
Indemnitees” has the meaning set forth in Section 7.02.

 

“Qualified
Benefit Plan” has the meaning set forth in Section 3.21(c).

 

“Real
Property” means the real property owned, leased or subleased by the Company, together with all buildings, structures
and facilities located thereon.

 

“Release”
means any actual or threatened release, spilling, leaking, pumping, pouring, emitting, emptying, discharging, injecting, escaping,
leaching, dumping, abandonment, disposing or allowing to escape or migrate into or through the environment (including, without
limitation, ambient air (indoor or outdoor), surface water, groundwater, land surface or subsurface strata or within any building,
structure, facility or fixture).

 

    	 	5	 

     

    

 

“Representative”
means, with respect to any Person, any and all directors, officers, employees, consultants, financial advisors, counsel, accountants
and other agents of such Person.

 

“SEC”
means the Securities and Exchange Commission.

 

“SEC
Documents” means the Company’s reports, schedules, forms, statements and other documents required to be filed
by it under the Exchange Act or the Securities Act and all exhibits included therein and financial statements and schedules thereto
and documents incorporated by reference therein.

 

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

 

“Shares”
has the meaning set forth in Section 2.01.

 

“Subsidiary”
means, with respect to any Person, any corporation, association, partnership, joint venture, or other business or corporate entity,
enterprise or organization which is directly or indirectly (through one or more intermediaries) controlled by or owned fifty 50%
or more by such Person.

 

“Taxes”
means all federal, state, local, foreign and other income, gross receipts, sales, use, production, ad valorem, transfer, franchise,
registration, profits, license, lease, service, service use, withholding, payroll, employment, unemployment, estimated, excise,
severance, environmental, stamp, occupation, premium, property (real or personal), real property gains, windfall profits, customs,
duties or other taxes, fees, assessments or charges of any kind whatsoever, together with any interest, additions or penalties
with respect thereto and any interest in respect of such additions or penalties.

 

“Tax
Return” means any return, declaration, report, claim for refund, information return or statement or other document relating
to Taxes, including any schedule or attachment thereto, and including any amendment thereof.

 

“Tolling/Lead
Purchase Agreement” means that certain Tolling/Lead Purchase Agreement, dated as of the date hereof, by and between
Johnson Controls Battery Group, Inc., an Affiliate of Purchaser, and the Company.

 

“Transaction
Documents” means this Agreement, the Investor Rights Agreement, the Equipment Supply Agreement, the Tolling/Lead Purchase
Agreement and each of the other agreements and instruments entered into or delivered by any of the parties hereto or their designated
Affiliates in connection with the consummation of the transactions contemplated hereby and thereby, as may be amended from time
to time.

 

“Union”
means any labor union, organization, association, work council, or other group representing employees with respect to their employment.

 

“WARN”
has the meaning set forth in Section 3.22(i).

 

    	 	6	 

     

    

 

Article
II

PURCHASE AND SALE

 

Section
2.01         Purchase and Sale. Subject to the terms and conditions
set forth herein, at the Closing, the ‘Company shall issue and sell to Purchaser, and Purchaser shall purchase from the
Company, an aggregate of 939,005 shares of Common Stock (the “Shares”), for a per share purchase price of $11.33
(the “Per Share Purchase Price”), which equals an aggregate purchase price of $10,638,926.65 (the “Purchase
Price”).

 

Section
2.02         Transactions Effected at the Closing.

 

(a)          At
the Closing, Purchaser shall deliver to the Company:

 

(i)          the
Purchase Price by wire transfer of immediately available funds to an account of the Company designated in writing by the Company
to Purchaser at least two (2) Business Days prior to the Closing; and

 

(ii)         the
Transaction Documents and all other agreements, documents, instruments or certificates required to be delivered by Purchaser at
or prior to the Closing pursuant to Section 5.03 of this Agreement.

 

(b)          At
the Closing, the Company shall deliver to Purchaser:

 

(i)          evidence
of the Shares credited to book-entry accounts maintained by the transfer agent of the Company (the “Transfer Agent”),
bearing the legend or restrictive notation set forth in Section 4.05 of this Agreement, free and clear of alt Encumbrances,
other than transfer restrictions set forth herein, under the Bylaws and applicable federal and state securities laws; and

 

(ii)         the
Transaction Documents and all other agreements, documents, instruments or certificates required to be delivered by the Company
at or prior to the Closing pursuant to Section 5.02 of this Agreement.

 

Section
2.03         Closing.
Subject to the terms and conditions of this Agreement, the purchase and sale of the Shares contemplated hereby shall take place
at a closing (the “Closing”)
at the offices of Goodwin Procter LLP, 3 Embarcadero Center, San Francisco, CA 94111 at 9:00 am., Pacific time, on the date this
Agreement is executed by the parties (the “Closing Date”).

 

Section
2.04         Use of Proceeds.
The proceeds from the purchase and sale of the Shares shall be used by the Company for working capital and general corporate purposes,
including the acceleration of the Company’s AquaRefining product development, inclusive of enhancement of processes and
other improvements.

 

    	 	7	 

     

    

 

Article
III

REPRESENTATIONS AND WARRANTIES OF THE COMPANY

 

Except
as set forth in the Disclosure Schedules, the Company represents and warrants to Purchaser that the statements contained in this
Article III are true and correct as of the date hereof. The Disclosure Schedules shall be arranged in sections corresponding
to the numbered and lettered sections and subsections contained in this Article III, and the disclosures in any section
or subsection of the Disclosure Schedules shall qualify other sections and subsections in this Article III only to the
extent it is readily apparent from a reading of the disclosure that such disclosure is applicable to such other sections and subsections.

 

Section
3.01         Organization, Qualification and Authority of the Company.
The Company is a corporation duly organized, validly existing and in good standing under the Laws of the state of Delaware and
has full corporate power and authority to (a) enter into this Agreement and the other Transaction Documents to which the Company
is a party, to carry out its obligations hereunder and thereunder and to consummate the transactions contemplated hereby and thereby
and (b) own, operate or tease the properties and assets now owned, operated or leased by it and to carry on its business as it
has been and is currently conducted. Section 3.01 of the Disclosure Schedules sets forth each jurisdiction in which the
Company is licensed or qualified to do business, and the Company is duly licensed or qualified to do business and is in good standing
in each jurisdiction in which the properties owned or leased by it or the operation of its business as currently conducted makes
such licensing or qualification necessary, except where the failure to be so licensed, qualified or in good standing would not,
individually or in the aggregate, have a Material Adverse Effect. The execution and delivery by the Company of this Agreement
and any other Transaction Document to which the Company is a party, the performance by the Company of its obligations hereunder
and thereunder and the consummation by the Company of the transactions contemplated hereby and thereby have been duly authorized
by all requisite corporate action on the part of the Company. This Agreement has been duly executed and delivered by the Company,
and (assuming due authorization, execution and delivery by Purchaser) this Agreement constitutes a legal, valid and binding obligation
of the Company enforceable against the Company in accordance with its terms, except as such enforceability may be limited by general
principles of equity or applicable bankruptcy, insolvency, reorganization, moratorium, liquidation, usury and other similar laws
relating to, or affecting generally, the enforcement of applicable creditors’ rights and remedies. When each other Transaction
Document to which the Company is or will be a party has been duly executed and delivered by the Company (assuming due authorization,
execution and delivery by each other party thereto), such Transaction Document will constitute a legal and binding obligation
of the Company enforceable against it in accordance with its terms, except as such enforceability may be limited by general principles
of equity or applicable bankruptcy, insolvency, reorganization, moratorium, liquidation, usury and other similar laws relating
to, or affecting generally, the enforcement of applicable creditors’ rights and remedies.

 

Section
3.02         Capitalization.

 

(a)          As
set forth on Section 3.02(a) of the Disclosure Schedules, the authorized capital stock of the Company immediately following
the Closing after giving effect to the transactions contemplated by this Agreement will consist of 50,000,000 shares of Common
Stock, of which (A) 18,817,730 shares will be issued and outstanding, (B) 24,237,754 shares will be issued and outstanding on
a fully-diluted, as converted and as exercised basis, and (C) 6,122,271 shares will be reserved for issuance upon exercise
of outstanding stock options, warrants and other convertible securities.

 

    	 	8	 

     

    

 

(b)          As
of immediately following the Closing after giving effect to the transactions contemplated by this Agreement, (i) all of the issued
and outstanding shares of Common Stock will have been duly authorized, validly issued, and will be fully paid and non-assessable,
(ii) all of the issued and outstanding shares of Common Stock will have been issued in compliance with all applicable federal
and state securities Laws, (iii) none of the issued and outstanding shares of Common Stock will have been issued in violation
of any agreement, arrangement or commitment to which the Company or any of its Affiliates is a party or subject to or in violation
of any preemptive or similar rights of any Person granted by the Company, and (iv) all of the Shares will have the rights, preferences,
powers, restrictions and limitations set forth in the Certificate of Incorporation and under the Delaware General Corporation
Law.

 

(c)          Section
3.02(c) of the Disclosure Schedules also sets forth, as of immediately following the Closing after giving effect to the transactions
contemplated by this Agreement, all outstanding or authorized (i) stock options and (ii) any warrants, convertible securities
or other rights, agreements, arrangements or commitments of any character relating to the capital stock of the Company or obligating
the Company to issue or sell any shares of capital stock of, or any other interest in, the Company, in each case, including the
number and kind of securities reserved for issuance on exercise or conversion of any such securities or other rights, the exercise
or conversion price of any such securities or other rights and any applicable vesting schedule for any such securities or other
rights. Except as set forth on Section 3.02(c) of the Disclosure Schedules, the Company does not have outstanding, authorized,
or in effect any stock appreciation, phantom stock, profit participation or similar rights. Except as set forth on Section 3.02(c)
of the Disclosure Schedules, there are no voting trusts, stockholder agreements, proxies or other agreements, understandings
or obligations in effect with respect to the voting, transfer or sale (including any rights of first refusal, rights of first
offer or drag-along rights), issuance (including any pre-emptive or anti-dilution rights), redemption or repurchase (including
any put or call or buy-sell rights), or registration (including any related lock-up or market standoff agreements) of any shares
of capital stock or other securities of the Company.

 

(d)          The
Company’s currently outstanding shares of Common Stock are quoted on the NASDAQ Capital Market, and the Company has not
received any notice of delisting.

 

Section
3.03         Subsidiaries.
Section 3.03 of the Disclosure Schedules contains a complete list of all of the Subsidiaries of the Company. Each such
Subsidiary is an entity duly organized, validly existing and in good standing under the laws of its jurisdiction of organization,
has all requisite power and authority to own, lease and operate its properties and to carry on its business as now being conducted
and is duly qualified as a foreign entity in all jurisdictions in which it is required to be so qualified. Except as set forth
on Section 3.03 of the Disclosure Schedules, the Company does not presently have any other Subsidiaries or, directly or
indirectly, own, control or have any interest in any shares or other ownership interest in any other Person. As to any Subsidiaries
of the Company listed in Section 3.03 of the Disclosure Schedule, the Company owns, directly or indirectly, the equity
interest in those Subsidiaries that are indicated in Section 3.03 of the Disclosure Schedule.

 

    	 	9	 

     

    

 

Section
3.04         SEC Documents. The Company has timely filed with the SEC
all SEC Documents. The SEC Documents, including any audited or unaudited financial statements and any notes thereto or schedules
included therein, at the time filed (in the case of registration statements, solely on the dates of effectiveness) (except to
the extent corrected by a subsequently filed SEC Document filed prior to the date hereof), 0) did not contain any untrue statement
of a material fact or omit to state a material fact required to be stated therein or necessary in order to make the statements
therein, in light of the circumstances under which they were made, not misleading, (ii) on their face complied as to form in all
material respects with applicable requirements of the Exchange Act and the applicable accounting requirements and with the published
rules and regulations of the SEC with respect thereto, (iii) were prepared in accordance with GAAP applied on a consistent basis
during the periods involved (except as may be indicated in the notes thereto or, in the case of unaudited statements, as permitted
by Form 10-Q of the SEC) and (iv) fairly present (subject in the case of unaudited statements to normal, recurring and year-end
audit adjustments) in all material respects the consolidated financial position of the Company as of the dates thereof and the
consolidated results of its operations and cash flows for the periods then ended.

 

Section
3.05         No Defaults; Violations. No material default exists in the
due performance and observance of any term, covenant or condition of any material license, contract, indenture, mortgage, deed
of trust, note, loan or credit agreement, or any other material agreement or instrument evidencing an obligation for borrowed
money, or any other material agreement or instrument to which the Company is a party or by which the Company may be bound or to
which any of the properties or assets of the Company is subject. The Company is not in violation of any term or provision of its
Certificate of Incorporation or Bylaws, or in violation of any franchise, license, permit, applicable law, rule, regulation, judgment
or decree of any governmental agency or court, domestic or foreign, having jurisdiction over the Company or any of its properties
or businesses.

 

Section
3.06         Consents. All consents, authorizations, approvals and orders
required in connection with the execution, delivery, and performance by the Company of each of the Transaction Documents and all
ancillary documents to which it is a party, the consummation by the Company of the transactions herein and therein contemplated
and the compliance by the Company with the terms hereof and thereof have been obtained. No consent, authorization or order of,
and no filing with, any court, government agency or other body is required for the valid issuance, sale and delivery of the securities
and the consummation of the transactions and agreements contemplated by this Agreement and as contemplated by the disclosures
the SEC Documents.

 

Section
3.07         No Conflicts, etc. The execution, delivery, and performance
by the Company of this Agreement and the Transaction Documents, the consummation by the Company of the transactions herein and
therein contemplated and the compliance by the Company with the terms hereof and thereof do not and will not, with or without
the giving of notice or the lapse of time or both: (i) result in a violation or breach of, or conflict with any of the terms and
provisions of, or constitute a default under, or result in the creation, modification, termination or imposition of any lien,
charge or encumbrance upon any property or assets of the Company pursuant to the terms of any agreement or instrument to which
the Company is a party that could reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect;
(ii) conflict with or result in any violation or breach of the provisions of the Certificate of Incorporation or Bylaws; or (iii)
conflict with or result in the Company’s violation or breach of any existing applicable law, rule, regulation, judgment,
order or decree of any governmental agency or court, domestic or foreign, having jurisdiction over the Company or any of its properties
or business constituted as of the date hereof that could reasonably be expected to have, individually or in the aggregate, a Material
Adverse Effect.

 

    	 	10	 

     

    

 

Section
3.08         Disclosure Controls. The Company and its Subsidiaries
maintain a system of “disclosure controls and procedures” (as such term is defined in Rule 13a-15(e) of the Exchange
Act) that complies with the requirements of the Exchange Act and that has been designed to ensure that information required to
be disclosed by the Company in reports that it files or submits under the Exchange Act is recorded, processed, summarized and
reported within the time periods specified in the SEC’s rules and forms, including controls and procedures designed to ensure
that such information is accumulated and communicated to the Company’s management as appropriate to allow timely decisions
regarding required disclosure to be made; such disclosure controls and procedures are effective.

 

Section
3.09         Accounting Controls. The Company and its Subsidiaries maintain
a system of internal accounting controls sufficient to provide reasonable assurance regarding the reliability of financial reporting
and the preparation of financial statements for external purposes in accordance with GAAP, including, but not limited to, internal
accounting controls sufficient to provide reasonable assurance that (i) transactions are executed in accordance with management’s
general or specific authorizations; (ii) transactions are recorded as necessary to permit preparation of financial statements
in conformity with GAAP and to maintain asset accountability; (iii) access to assets is permitted only in accordance with management’s
general or specific authorization; and (iv) the recorded accountability for assets is compared with the existing assets at reasonable
intervals and appropriate action is taken with respect to any differences, There are no material weaknesses in the internal controls
over financial reporting of the Company. The Company’s auditors and the Audit Committee of the board of directors of the
Company have been advised of: (i) all significant deficiencies and material weaknesses in the design or operation of internal
controls over financial reporting which have adversely affected or are reasonably likely to adversely affect the ability of the
Company to record, process, summarize and report financial information; and (ii) any fraud, whether or not material, that involves
management or other employees who have a significant role in the Company’s internal controls over financial reporting.

 

    	 	11	 

     

    

 

Section
3.10         Financial Statements. Complete copies of (i) the audited
consolidated financial statements, including the notes thereto and supporting schedules, if any, of the Company and its Subsidiaries
consisting of the balance sheet of the Company as at December 31 in each of the years 2014 and 2015 and the related statements
of income and retained earnings, stockholders’ equity and cash flow for the years then ended (the “Audited Financial
Statements”), (ii) reviewed but unaudited financial statements consisting of the balance sheet of the Company as at
September 30, 2016 and the related statements of income and retained earnings, stockholders’ equity and cash flow for the
nine-month period then ended (the “Interim 9/30/16 Financial Statements”) and (iii) unaudited financial statements
consisting of the balance sheet of the Company as at December 31, 2016 and the related statements of income and retained earnings,
stockholders’ equity and cash flow for the twelve-month period then ended (the “Interim 12/31/16 Financial Statements”
and, together with the Audited Financial Statements and the Interim 9/30/16 Financial Statements, the “Financial Statements”)
have been delivered to Purchaser. The Financial Statements (other than the Interim 12/31/16 Financial Statements) have been prepared
in conformity with GAAP applied on a consistent basis throughout the periods involved, subject, in the case of the Interim 9/30/16
Financial Statements, to normal and recurring year-end adjustments (the effect of which will not be materially adverse) and the
absence of notes (that, if presented, would not differ materially from those presented in the Audited Financial Statements). The
Interim 12/31/16 Financial Statements are materially accurate, subject to normal and recurring year-end adjustments and the absence
of notes. The Financial Statements are based on the books and records of the Company, and fairly present the financial condition
of the Company as of the respective dates they were prepared and the results of the operations of the Company for the periods
indicated and the supporting schedules, if any, present fairly the information required to be stated therein. The audited balance
sheet of the Company as of December 31, 2015 is referred to herein as the “Balance Sheet” and the date thereof
as the “Balance Sheet Date” and the balance sheet of the Company as of September 30, 2016 is referred to herein
as the “Interim Balance Sheet” and the date thereof as the “Interim Balance Sheet Date”.
The Company maintains a standard system of accounting established and administered in accordance with GAAP. The interactive data
in eXtensible Business Reporting Language included or incorporated by reference in the SEC Documents fairly presents the information
called for in all material respects and has been prepared in accordance with the SEC’s rules and guidelines applicable thereto.

 

Section
3.11         Independent Accountants. Armanino LLP, who have certified
certain consolidated financial statements of the Company and its Subsidiaries, are independent public accountants with respect
to the Company and its Subsidiaries within the applicable rules and regulations adopted by the SEC and the Public Company Accounting
Oversight Board (United States) and as required by the Securities Act.

 

Section
3.12         Undisclosed Liabilities. Except as set forth on Section
3.12 of the Disclosure Schedule, the Company has no liabilities, obligations or commitments of any nature whatsoever, asserted
or unasserted, known or unknown, absolute or contingent, accrued or unaccrued, matured or unmatured or otherwise (“Liabilities”),
except (a) those that are adequately reflected or reserved against in the Interim Balance Sheet as of the Interim Balance Sheet
Date, and (b) those that have been incurred in the ordinary course of business consistent with past practice since the Interim
Balance Sheet Date that have not had, and would not reasonably be expected to have, individually or in the aggregate, a Material
Adverse Effect.

 

Section
3.13         Absence of Certain Changes, Events and Conditions.
Since the Interim Balance Sheet Date, and other than in the ordinary course of business consistent with past practice, there has
not been, with respect to the Company or any Subsidiary, any:

 

(a)          event,
occurrence or development that has had, or could reasonably be expected to have, individually or in the aggregate, a Material
Adverse Effect;

 

(b)          amendment
of the Certificate of Incorporation, the Bylaws or other organizational documents of the Company;

 

(c)          split,
combination or reclassification of any shares of its capital stock;

 

    	 	12	 

     

    

 

(d)          issuance,
sale or other disposition of any of its capital stock, or grant of any options, warrants or other rights to purchase or obtain
(including upon conversion, exchange or exercise) any of its capital stock;

 

(e)          declaration
or payment of any dividends or distributions on or in respect of any of its capital stock or redemption, purchase or acquisition
of its capital stock;

 

(f)          material
change in any method of accounting or accounting practice of the Company, except as required by GAAP or as disclosed in the notes
to the Financial Statements;

 

(g)          incurrence,
assumption or guarantee of any indebtedness for borrowed money except unsecured current obligations and Liabilities incurred in
the ordinary course of business consistent with past practice;

 

(h)          transfer,
assignment, sale or other disposition of any of the assets shown or reflected in the Balance Sheet or cancellation, discharge
or payment of any material debts, liens or entitlements;

 

(i)          transfer,
assignment or grant of any license or sublicense of any Intellectual Property Rights;

 

(j)          any
capital investment in, or any loan to, any other Person;

 

(k)          acceleration,
termination, material modification or amendment to or cancellation of any material contract to which the Company is a party or
by which it is bound;

 

(l)          any
material capital expenditures;

 

(m)          imposition
of any Encumbrance upon any of the Company properties, capital stock or assets, tangible or intangible;

 

(n)          any
mass layoff of employees or adoption, modification or termination of any: (i) material employment, severance, retention, change
in control, or other Contract with any current or former employee, officer, director, independent contractor or consultant, (ii)
Benefit Plan or (iii) collective bargaining, memorandum of understanding, or other Contract with a Union, in each case whether
written or oral;

 

(o)          any
loan to (or forgiveness of any loan to), or entry into any other transaction with, any of its stockholders, directors, officers
and employees;

 

(p)          entry
into a new line of business or abandonment or discontinuance of existing lines of business;

 

(q)          adoption
of any plan of merger, consolidation, reorganization, liquidation or dissolution or filing of a petition in bankruptcy under any
provisions of federal or state bankruptcy Law or consent to the filing of any bankruptcy petition against it under any similar
Law;

 

    	 	13	 

     

    

 

(r)          acquisition
by merger or consolidation with, or by purchase of a substantial portion of the assets or stock of, or by any other manner, any
business or any Person or any division thereof; or

 

(s)          entry
into any contract to do any of the foregoing, or any action or omission that would result in any of the foregoing.

 

Section
3.14         Disclosure of Agreements. The agreements and documents
described in the SEC Documents conform to the descriptions thereof contained therein and there are no agreements or other documents
required by the Securities Act and the rules and regulations to be described therein or to be filed with the SEC that have not
been so described or filed. Each agreement or other instrument (however characterized or described) to which the Company is a
party or by which it is or may be bound or affected and (i) that is referred to in the SEC Documents, or (ii) is material to the
Company’s business, has been duly authorized and validly executed by the Company, is in full force and effect in all material
respects and is enforceable against the Company and, to the Company’s knowledge, the other parties thereto, in accordance
with its terms, except (x) as such enforceability may be limited by bankruptcy, insolvency, reorganization or similar laws affecting
creditors’ rights generally, (y) as enforceability of any indemnification or contribution provision may be limited under
the federal or state securities laws, and (z) that the remedy of specific performance and injunctive and other forms of equitable
relief may be subject to the equitable defenses and to the discretion of the court before which any proceeding therefore may be
brought. None of such agreements or instruments has been assigned by the Company, and neither the Company nor, to the Company’s
Knowledge, any other party is in default thereunder and, to the Company’s Knowledge, no event has occurred that, with the
lapse of time or the giving of notice, or both, would constitute a default thereunder. To the Company’s Knowledge, performance
by the Company of the material provisions of such agreements or instruments will not result in a violation of any existing applicable
law, rule, regulation, judgment, order or decree of any governmental agency or court, domestic or foreign, having jurisdiction
over the Company or any of its assets or businesses, including, without limitation, those relating to environmental laws and regulations.

 

Section
3.15         Title to Assets; Real Progeny.

 

(a)          The
Company has good and valid (and, in the case of owned Real Property, good and marketable fee simple) title to, or a valid leasehold
interest in, all Real Property and personal property and other assets reflected in the Audited Financial Statements or acquired
after the Interim Balance Sheet Date, other than properties and assets sold or otherwise disposed of in the ordinary course of
business consistent with past practice since the Interim Balance Sheet Date. All such properties and assets (including leasehold
interests) are free and clear of Encumbrances except for the following (collectively referred to as “Permitted Encumbrances”):

 

(i)          those
items set forth in Section 3.15(a) of the Disclosure Schedules;

 

    	 	14	 

     

    

 

(ii)         liens
for Taxes not yet due and payable or being contested in good faith by appropriate procedures and for which there are adequate
accruals or reserves on the Interim Balance Sheet;

 

(iii)        mechanics,
carriers’, workmen’s, repairmen’s or other like liens arising or incurred in the ordinary course of business
consistent with past practice or amounts that are not delinquent and which are not, individually or in the aggregate, material
to the business of the Company;

 

(iv)        easements,
rights of way, zoning ordinances and other similar encumbrances affecting Real Property which are not, individually or in the
aggregate, material to the business of the Company;

 

(v)         liens
arising under original purchase price conditional sales contracts and equipment leases with third parties entered into in the
ordinary course of business consistent with past practice which are not, individually or in the aggregate, material to the business
of the Company; or

 

(vi)        other
imperfections of title or Encumbrances, if any, that individually or in the aggregate, have not had, and would not have, a Material
Adverse Effect.

 

Section
3.16         Intellectual Property. Except as set forth in Section
3.16 of the Disclosure Schedules, the Company is the sole and exclusive owner, free and clear of Encumbrances other than Permitted
Encumbrances, of all trademarks, trade names, service marks, service mark registrations, service names, patents, patent rights,
copyrights, original works, inventions, licenses, approvals, governmental authorizations, trade secrets and other intellectual
property rights and all applications and registrations therefor (other than third party components licensed-in on a non-exclusive
basis) (“Intellectual Property Rights”) necessary to conduct its business as now conducted and as presently
proposed to be conducted. Section 3.16 of the Disclosure Schedules lists all Intellectual Property Rights of the Company
that have been registered, filed or otherwise perfected or recorded with or by any state, federal provincial, or foreign government
or other legal authority, or any applications for any of the foregoing. To the Knowledge of the Company, there are no facts or
information (including that which would constitute prior art) that would render any of the registered Intellectual Property Rights
of the Company invalid or unenforceable in any material respect, or would affect any pending application for any material Intellectual
Property Rights of the Company. The Company has not transferred ownership of, or granted any exclusive license with respect to,
any of the Intellectual Property Rights that is or, as of the time of such transfer or exclusive license, was material to the
Company, to any other Person. The Company has not infringed, nor conflicted with, the Intellectual Property Rights of others and,
to the Knowledge of the Company, no Person is infringing upon the Company’s Intellectual Property Rights. There is no claim,
action or proceeding being made or brought, or to the Knowledge of the Company, being threatened, against the Company or any Subsidiary
regarding their Intellectual Property Rights. The Company is not aware of any facts or circumstances that might reasonably give
rise to any of the foregoing infringements or claims, actions or proceedings. The Company has taken reasonable steps required
or necessary to protect the confidentiality of confidential information and trade secrets of the Company, and all current and
former employees and consultants of the Company and all other individuals who have been involved for or on behalf of the Company
in the creation, invention or development of the Company’s Intellectual Property Rights have executed a customary form of
proprietary information, confidentiality and invention assignment agreement.

 

    	 	15	 

     

    

 

Section
3.17         Insurance. The Company is covered by valid, outstanding
and enforceable policies or binders of fire, liability, product liability, umbrella liability, pollution and other environmental,
real and personal property, workers’ compensation, vehicular, directors and officers’ liability, fiduciary liability
and other casualty and property insurance maintained by the Company or its Affiliates and relating to the assets, business, operations,
employees, officers and directors of the Company (collectively, the “Insurance Policies”), and true and complete
copies of such Insurance Policies have been made available to Purchaser. Such Insurance Policies are in full force and effect
and none of the Insurance Policies will lapse or terminate following the consummation of the transactions contemplated by this
Agreement. Neither the Company nor any of its Affiliates has received any written notice of cancellation of, premium increase
with respect to, or alteration of coverage under, any of such Insurance Policies. The Insurance Policies are of the type and in
the amounts customarily carried by Persons conducting a business similar to the Company and are sufficient for compliance with
all applicable Laws and Contracts to which the Company is a party or by which it is bound, except where such noncompliance would
not result in a Material Adverse Effect. There are no claims related to the business of the Company pending under any such Insurance
Policies as to which coverage has been questioned, denied or disputed or in respect of which there is an outstanding reservation
of rights.

 

Section
3.18         Legal Proceedings; Governmental Orders.

 

(a)          There
are no material Actions pending or, to the Company’s Knowledge, threatened against, or involving the Company or any of its
Subsidiaries, or, to the Company’s Knowledge, any executive officer or director of the Company, or by the Company or any
of its Subsidiaries affecting any of its properties or assets (or by or against the Company or any Affiliate thereof and relating
to the Company).

 

(b)          There
are no outstanding Governmental Orders and no unsatisfied judgments, penalties or awards against or affecting the Company or any
of its Subsidiaries or any of their properties or assets.

 

Section
3.19         Possession of Licenses and Permits. The Company and
each of its Subsidiaries (A) possesses the licenses, permits, certificates, authorizations, consents and approvals (collectively,
“Governmental Licenses”) issued by the appropriate Governmental Authorities necessary to conduct its business
as currently conducted as described in the SEC Documents, and (B) has obtained all necessary Governmental Licenses from other
persons necessary to conduct its business, except, in each case of clauses (A) and (B), (i) as described in the SEC Documents
or (ii) to the extent that any failure to possess any Governmental Licenses, provide any notice, make any filing, or obtain any
Governmental Licenses would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect; none
of the Company and subsidiaries is in violation of, or in default under, any Governmental License, as except as would not reasonably
be expected to have a Material Adverse Effect. All of the Governmental Licenses are valid and in full force and effect, except
when the invalidity of such Governmental Licenses or the failure of such Governmental Licenses to be in full force and effect
would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect, Neither the Company nor
the Subsidiary has received any notice of proceedings relating to the revocation or modification of any Governmental Licenses
which, individually or in the aggregate, if the subject of an unfavorable decision, ruling or finding, would have a Material Adverse
Effect.

 

    	 	16	 

     

    

 

Section
3.20         Environmental Laws. Except as described in the SEC Documents,
(A) the Company and its subsidiaries are in compliance with Environmental Laws in all material respects, (B) each of the
Company and its subsidiaries has all permits, authorizations and approvals required under any applicable Environmental Laws and
is in compliance in all material respects with their requirements, (C) there are no pending or, to the Company’s Knowledge,
threatened administrative, regulatory or judicial actions, suits, demands, demand letters, claims, liens, notices of noncompliance
or violation, investigations or proceedings relating to any Environmental Law against the Company or any subsidiary, and (D) to
the Company’s Knowledge, there are no events or circumstances that would reasonably be expected to form the basis of an
order for clean-up or remediation, or an investigation, action, suit or proceeding by any private party or governmental body or
agency, against or affecting the Company or any subsidiary relating to Hazardous Materials or any Environmental Laws.

 

Section
3.21         Employee Benefit Matters.

 

(a)          Section
3.21(a) of the Disclosure Schedules contains a true and complete list of each pension, benefit, retirement, compensation,
employment, consulting, profit-sharing, deferred compensation, incentive, bonus, performance award, phantom equity, stock or stock-based,
change in control, retention, severance, vacation, paid time off, welfare, fringe-benefit and other similar agreement, plan, policy,
program or arrangement (and any amendments thereto), in each case whether or not reduced to writing and whether funded or unfunded,
including each “employee benefit plan” within the meaning of Section 3(3) of ERISA, whether or not tax-qualified and
whether or not subject to ERISA, which is or has been maintained, sponsored, contributed to, or required to be contributed to
by the Company, or under which the Company or any of its ERISA Affiliates has Of may have any Liability, or with respect to which
Purchaser or any of its Affiliates would reasonably be expected to have any Liability, contingent or otherwise (as listed on Section
3.21(a) of the Disclosure Schedules, each, a “Benefit Plan”).

 

(b)          With
respect to each Benefit Plan, the Company has made available to Purchaser accurate, current and complete copies of each of the
following: (i) where the Benefit Plan has been reduced to writing, the plan document together with all amendments; (ii) where
the Benefit Plan has not been reduced to writing, a written summary of all material plan terms; (iii) where applicable, copies
of any trust agreements or other funding arrangements, custodial agreements, insurance policies and contracts, administration
agreements and similar agreements, and investment management or investment advisory agreements, now in effect or required in the
future as a result of the transactions contemplated by this Agreement or otherwise; (iv) copies of any summary plan descriptions,
summaries of material modifications, employee handbooks and any other written communications (or a description of any oral communications)
relating to any Benefit Plan; (v) in the case of any Benefit Plan that is intended to be qualified under Section 401(a) of the
Code, a copy of the most recent determination, opinion or advisory letter from the Internal Revenue Service; and (vi) in the case
of any Benefit Plan for which a Form 5500 is required to be filed, a copy of the most recently filed Forms 5500, with schedules
and financial statements attached.

 

    	 	17	 

     

    

 

(c)          Each
Benefit Plan and related trust has been established, administered and maintained in accordance with its terms and in compliance
with all applicable Laws (including ERISA, the Code and any applicable state or local Laws).

 

(d)          Neither
the Company nor any of its ERISA Affiliates has (i) incurred or reasonably expects to incur, either directly or indirectly, any
material Liability under Title I or Title IV of ERISA or related provisions of the Code or applicable local Law relating to employee
benefit plans; (ii) failed to timely pay premiums to the Pension Benefit Guaranty Corporation; (iii) withdrawn from any Benefit
Plan; or (iv) engaged in any transaction that would give rise to liability under Section 4069 or Section 4212(c) of ERISA.

 

(e)          With
respect to each Benefit Plan (i) no such plan is a Multiemployer Plan; (ii) no such plan is a “multiple employer plan”
within the meaning of Section 413(c) of the Code or a “multiple employer welfare arrangement” (as defined in Section
3(40) of ERISA); and (iii) no such plan is subject to the minimum funding standards of Section 412 of the Code or Title IV of
ERISA.

 

(f)          Other
than as required under Section 601 et. seq. of ERISA or other applicable Law, no Benefit Plan or other arrangement provides post-termination
or retiree welfare benefits to any individual for any reason.

 

(g)          There
is no pending or, to the Company’s Knowledge, threatened Action relating to a Benefit Plan (other than routine claims for
benefits), and no Benefit Plan has within the three years prior to the date hereof been the subject of an examination or audit
by a Governmental Authority or the subject of an application or filing under, or is a participant in, an amnesty, voluntary compliance,
self-correction or similar program sponsored by any Governmental Authority.

 

(h)          Each
Benefit Plan that is subject to Section 409A of the Code has been administered in compliance with its terms and the operational
and documentary requirements of Section 409A of the Code and all applicable regulatory guidance (including notices, rulings and
proposed and final regulations) thereunder. The Company does not have any obligation to gross up, indemnify or otherwise reimburse
any individual for any excise taxes, interest or penalties incurred pursuant to Section 409A of the Code.

 

(i)          Neither
the execution of this Agreement nor any of the transactions contemplated by this Agreement will (either alone or upon the occurrence
of any additional or subsequent events): (i) entitle any current or former director, officer, employee, independent contractor
or consultant of the Company to severance pay or any other payment; (ii) accelerate the time of payment, funding or vesting, or
increase the amount of compensation due to any such individual; (iii) increase the amount payable under or result in any other
material obligation pursuant to any Benefit Plan; (iv) result in “excess parachute payments” within the meaning of
Section 2800(b) of the Code; or (v) require a “gross-up” or other payment to any “disqualified individual”
within the meaning of Section 280G(c) of the Code.

 

    	 	18	 

     

    

 

Section
3.22         Employment Matters.

 

(a)          The
Company is not involved in any strike, labor dispute, work stoppage, work slowdown, lockout, or similar labor matter or, to the
Knowledge of the Company, is any such dispute, slowdown, lockout or other matter threatened. To the Knowledge of the Company,
none of the Company’s employees is a member of a union, works council or labor organization. There are no labor agreements,
collective bargaining agreements, or other labor Contracts applicable to any employees of the Company or by which the Company
is bound, and no discussions or negotiations have occurred with respect thereto by the Company any Union within the prior four
years.

 

(b)          No
employees of the Company are represented by any Union and no Union claims to represent a majority of any employees of the Company
in a bargaining unit of any of the Company.

 

(c)          There
are no current or, to the Company’s Knowledge, threatened representational campaigns or other organizing activities by any
Union seeking to become the collective bargaining representative of any employees of the Company, and there is no Union or labor
organization representation question or certification petition against the Company pending or, to the Company’s Knowledge,
threatened before the National Labor Relations Board or any similar Governmental Authority.

 

(d)          The
Company is and has been in compliance in all material respects with all applicable Laws pertaining to employment and employment
practices, including all Laws relating to labor relations, equal employment opportunities, fair employment practices, terms and
conditions of employment, employment discrimination, harassment, retaliation, reasonable accommodation, disability rights or benefits,
worker classification as exempt or non-exempt and as employee rather than independent contractor, employment-related immigration
and authorization to work in the United States, wages, hours, employee benefits, overtime compensation, child labor, hiring, promotion
and termination of employees, working conditions, meal and break periods, privacy, occupational health and safety, notice of plant
closings or mass layoffs, affirmative action, employee waivers of liability, workers’ compensation, leaves of absence and
unemployment insurance (collectively “Employment Laws”).

 

(e)          All
individuals characterized and treated by the Company as independent contractors or consultants are properly treated and classified
as independent contractors under all applicable Employment Laws. All employees classified as exempt under applicable Employment
Laws, including the Fair Labor Standards Act and state and local wage and hour Laws, are properly classified in all material respects.

 

(f)          There
are no pending or, to the Company’s Knowledge, threatened investigations, charges, complaints, Actions, suits or judicial,
administrative, or arbitral proceedings of any kind and in any forum by or on behalf of any employee or former employee of the
Company, applicant for employment, Person claiming to be an employee, or any classes of the foregoing, against the Company alleging
a violation of, or compliance with, any express or implied contract of employment or any Employment Laws.

 

    	 	19	 

     

    

 

(g)          The
Company is not currently engaged in, and has not engaged in, any unfair labor practices regarding any employees of the Company
and there is no pending or, to the Company’s Knowledge, threatened proceeding involving any unfair labor practices regarding
any employees of the Company before the National Labor Relations Board or any similar Governmental Authority, nor are there any
actual or threatened grievances or arbitration proceedings arising out of or under any collective bargaining agreement pending
against the Company.

 

(h)          The
Company has timely paid or properly accrued for all wages, salaries, commissions, bonuses, severance pay, vacation pay and other
paid time off, benefits, and any other compensation or remuneration owed to employees of the Company for or on account of employment.

 

(i)          Within
the previous four years, the Company has not experienced a “plant closing” or “mass layoff” as defined
by the Worker Adjustment and Retraining Notification Act (“WARN”) or been required to provide any notice, pay,
or benefits to employees or former employees under any other applicable Law governing mass layoffs and, with respect to any such
“plant closing” or “mass layoff,” the Company has complied with the notice requirements of WARN and applicable
Law.

 

(j)          No
severance payment, stay-on or incentive payment, change-in-control payment, vacation or other paid leave payment, or similar payment
or obligation will be owed by the Company to any of its directors, officers, employees, agents, contractors, consultants: or any
other Person upon consummation of, or as a result of, the transactions contemplated by this Agreement, nor will any such director,
officer, employee, agent, contractor, consultant, or any other Person be entitled to any such payments a result of the transactions
contemplated by this Agreement in the event of the termination of his or her employment or relationship.

 

Section
3.23         No Registration Required. Assuming the accuracy of the representations
and warranties of Purchaser contained in this Agreement, the sale and issuance of the shares pursuant to this Agreement is exempt
from the registration requirements of the Securities Act, and neither the Company nor, to the Company’s knowledge, any authorized
Representative acting on its behalf has taken or will take any action hereafter that would cause the loss of such exemption.

 

Section
3.24         No Integration. Neither the Company nor any of its
Affiliates has, directly or indirectly through any agent, made any offers or sales of any security of the Company or solicited
any offers to buy any security that is or will be integrated with the sale of the Shares in a manner that would require such registration
under the Securities Act.

 

Section
3.25         No Side Agreements. There are no agreements by the Company,
on the one hand, and Purchaser or any of their Affiliates, on the other hand, with respect to the transactions contemplated hereby
other than the Transaction Documents, nor promises or inducements for future transactions between or among any of such parties.

 

    	 	20	 

     

    

 

Section
3.26         NASDAQ Listing of Shares. As of the Closing Date, the Shares
will be approved for listing, subject to official notice of issuance, on the NASDAQ Capital Market.

 

Section
3.27         Taxes. Except as set forth in Section 3.27
of the Disclosure Schedules:

 

(a)          The
Company has timely filed all Tax Returns that it was required to file. All such Tax Returns were complete and correct in all respects.
All Taxes due and owing by the Company (whether or not shown on any Tax Return) have been timely paid.

 

(b)          The
Company has withheld and paid each Tax required to have been withheld and paid in connection with amounts paid or owing to any
employee, independent contractor, creditor, customer, stockholder or other party, and complied with all information reporting
and backup withholding provisions of applicable Law,

 

(c)          No
extensions or waivers of statutes of limitations have been given or requested with respect to any Taxes of the Company.

 

(d)          All
deficiencies asserted, or assessments made, against the Company as a result of any examinations by any taxing authority have been
fully paid.

 

(e)          The
Company is not a party to any Action by any taxing authority. There are no pending or threatened Actions by any taxing authority.

 

(f)          The
Company has not been a member of an affiliated, combined, consolidated or unitary Tax group for Tax purposes. The Company has
no Liability for Taxes of any Person (other than the Company) under Treasury Regulations Section 1.1502-6 (or any corresponding
provision of state, local or foreign Law), as transferee or successor, by contract or otherwise.

 

Section
3.28         Books and Records. The minute books and stock record books
of the Company, all of which have been made available to Purchaser, are complete and correct and have been maintained in accordance
with sound business practices. The minute books of the Company contain, in all material respects, accurate and complete records
of all meetings, and actions taken by written consent of, the stockholders, the board of directors and any committees of the board
of directors of the Company, and no meeting, or action taken by written consent, of any such stockholders, board of directors
or committee has been held for which minutes have not been prepared and are not contained in such minute books.

 

Section
3.29         Brokers. No broker, finder or investment banker is entitled
to any brokerage, finder’s or other fee or commission in connection with the transactions contemplated by this Agreement
or any other Transaction Document based upon arrangements made by or on behalf of the Company.

 

Section
3.30         Related Party Transactions. Except as disclosed in the SEC
Documents, there are no business relationships or related party transactions involving the Company or any other person required
to be described in the SEC Documents that have not been described as required.

 

    	 	21	 

     

    

 

Section
3.31         Money Laundering Laws. The Company has not, and, to the Company’s
Knowledge, none of the officers, directors, employees or agents purporting to act on behalf of the Company or one of its Subsidiaries,
as applicable, has, made any payment of funds of the Company or one of its Subsidiaries or received or retained any funds in violation
of any law, rule or regulation relating to the “know your customer” and anti-money laundering laws of any jurisdiction
(collectively, the “Money Laundering Laws”) and no action, suit or proceeding by or before any Governmental
Authority involving the Company or one of its Subsidiaries with respect to the Money Laundering Laws is pending or, to the Company’s
Knowledge, threatened.

 

Section
3.32         OFAC. The Company has not, and, to the Company’s
Knowledge, none of the respective directors, officers, agents or employees purporting to act on behalf of the Company or one of
its Subsidiaries, as applicable, is currently the target of or reasonably likely to become the target of any U.S. sanctions administered
by the Office of Foreign Assets Control of the U.S. Department of the Treasury (“OFAC”); and the Company and
its Subsidiaries will not directly or indirectly use the proceeds of the sale of the Shares hereunder, or lend, contribute or
otherwise make available such proceeds to any subsidiary, joint venture partner or other person or entity, for the purpose of
financing the activities of any person currently the target of any U.S. sanctions administered by OFAC.

 

Section
3.33         Investment Company Act. The Company is not, nor upon the
sale of the Shares as contemplated herein and the application of the net proceeds therefrom, will the Company be, an “investment
company” or an entity “controlled” by an “investment company” (as such terms are defined in the
Investment Company Act of 1940, as amended, and the rules and regulations promulgated thereunder).

 

Section
3.34         Foreign Corrupt Practices Act. Neither the Company nor any
of the directors, employees or officers of the Company or, to the Company’s Knowledge, any other person acting on behalf
of the Company has, directly or indirectly, given or agreed to give any money, gift or similar benefit (other than legal price
concessions to customers in the ordinary course of business) to any customer, supplier, employee or agent of a customer or supplier,
or official or employee of any governmental agency or instrumentality of any government (domestic or foreign) or any political
party or candidate for office (domestic or foreign) or any political party or candidate for office (domestic or foreign) or other
person who was, is, or may be in a position to help or hinder the business of the Company (or assist it in connection with any
actual or proposed transaction) that (i) might subject the Company to any damage or penalty in any civil, criminal or governmental
litigation or proceeding, (ii) if not given in the past, might have had a Material Adverse Effect as reflected in any of the Financial
Statements or (iii) if not continued in the future, might have a Material Adverse Effect. The Company has taken reasonable steps
to ensure that its accounting controls and procedures are sufficient to cause the Company to comply in all material respects with
the Foreign Corrupt Practices Act of 1977, as amended.

 

Section
3.35         Officer’s Certificate. Any certificate pursuant to
this Agreement signed by any duly authorized officer of the Company and delivered to Purchaser shall be deemed a representation
and warranty by the Company to Purchaser as to the matters covered thereby.

 

    	 	22	 

     

    

 

Article
IV

REPRESENTATIONS AND WARRANTIES OF PURCHASER

 

Purchaser
represents and warrants to the Company that the statements contained in this Article IV are true and correct as of the
date hereof.

 

Section
4.01         Organization and Authority of Purchaser. Purchaser
is an indirect, wholly-owned subsidiary of Johnson Controls International plc, and is a company duly organized, validly existing
and in good standing under the Laws of Luxembourg. Purchaser has full power and authority to enter into this Agreement and the
other Transaction Documents to which Purchaser is a party, to carry out its obligations hereunder and thereunder and to consummate
the transactions contemplated hereby and thereby. The execution and delivery by Purchaser of this Agreement and any other Transaction
Document to which Purchaser is a party, the performance by Purchaser of its obligations hereunder and under the other Transaction
Documents to which Purchaser is a party, and the consummation by Purchaser of the transactions contemplated hereby and by the
other Transaction Documents to which Purchaser is a party, have been duly authorized by all requisite corporate action on the
part of Purchaser. This Agreement has been duly executed and delivered by Purchaser, and (assuming due authorization, execution
and delivery by the Company of this Agreement) this Agreement party constitutes a legal, valid and binding obligation of Purchaser
enforceable against Purchaser in accordance with its terms, except as such enforceability may be limited by general principles
of equity or applicable bankruptcy, insolvency, reorganization, moratorium, liquidation, usury and other similar laws relating
to, or affecting generally, the enforcement of applicable creditors’ rights and remedies. When each other Transaction Document
to which Purchaser is or will be a party has been duly executed and delivered by Purchaser (assuming due authorization, execution
and delivery by each other party thereto), such Transaction Document will constitute a legal and binding obligation of Purchaser
enforceable against it in accordance with its terms, except as such enforceability may be limited by general principles of equity
or applicable bankruptcy, insolvency, reorganization, moratorium, liquidation, usury and other similar laws relating to, or affecting
generally, the enforcement of applicable creditors’ rights and remedies.

 

Section
4.02         No Conflicts; Consents. The execution, delivery and performance
by Purchaser of this Agreement and the other Transaction Documents to which Purchaser is a party, and the consummation of the
transactions contemplated hereby and thereby, do not and will not: (a) conflict with or result in a violation or breach of, or
default under, any provision of the organizational documents of Purchaser; (b) conflict with or result in a violation or breach
of any provision of any Law or Governmental Order applicable to Purchaser; or (c) require the consent, notice or other action
by any Person under any Contract to which Purchaser is a party. No consent, approval, Permit, Governmental Order, declaration
or filing with, or notice to, any Governmental Authority is required by or with respect to Purchaser in connection with the execution
and delivery of this Agreement and the other Transaction Documents to which Purchaser is a party and the consummation of the transactions
contemplated hereby and by the other Transaction Documents to which Purchaser is a party.

 

    	 	23	 

     

    

 

Section
4.03         Investment Purpose. Purchaser is acquiring the Shares
solely for its own account for investment purposes and not with a view to, or for offer or sale in connection with, any distribution
thereof. Purchaser acknowledges that the Shares are not registered under the Securities Act of 1933, as amended, or any state
securities laws, and that the Shares may not be transferred or sold except pursuant to the registration provisions of the Securities
Act of 1933, as amended, or pursuant to an applicable exemption therefrom and subject to state securities laws and regulations,
as applicable.

 

Section
4.04         Brokers. No broker, finder or investment banker is entitled
to any brokerage, finder’s or other fee or commission in connection with the transactions contemplated by this Agreement
based upon arrangements made by or on behalf of Purchaser.

 

Section
4.05         Legend. Purchaser understands that the book entry evidencing
the Shares will bear the following legend: “THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933,
AS AMENDED, OR UNDER ANY STATE SECURITIES OR BLUE SKY LAWS. THE SECURITIES ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND
RESALE AND MAY NOT BE OFFERED, SOLD, PLEDGED, HYPOTHECATED OR OTHERWISE TRANSFERRED EXCEPT AS PERMITTED UNDER THE SECURITIES ACT
AND APPLICABLE STATE SECURITIES OR BLUE SKY LAWS, PURSUANT TO REGISTRATION OR EXEMPTION THEREFROM. THE COMPANY MAY REQUIRE AN
OPINION OF COUNSEL IN FORM AND SUBSTANCE REASONABLY SATISFACTORY TO THE COMPANY TO THE EFFECT THAT ANY PROPOSED TRANSFER IS IN
COMPLIANCE WITH THE SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES OR BLUE SKY LAWS.”

 

Section
4.06         Accredited investor Status. Purchaser is an “accredited
investor” as that term is defined in Rule 501(e) of Regulation D, as promulgated under the Securities Act.

 

Article
V

CONDITIONS TO CLOSING

 

Section
5.01         Conditions to Obligations of All Parties. The obligations
of each party to consummate the transactions contemplated by this Agreement shall be subject to the fulfillment, at or prior to
the Closing, of each of the following conditions;

 

(a)          No
Governmental Authority shall have enacted, issued, promulgated, enforced or entered any Governmental Order which is in effect
and has the effect of making the transactions contemplated by this Agreement Illegal, otherwise restraining or prohibiting consummation
of such transactions or causing any of the transactions contemplated hereunder to be, rescinded following completion thereof.

 

(b)          This
Agreement and each of the other Transaction Documents shall have been executed and delivered by the parties thereto and true and
complete copies thereof shall have been delivered to the parties.

 

Section
5.02         Conditions to Obligations of Purchaser. The obligations
of Purchaser to consummate the transactions contemplated by this Agreement shall be subject to the fulfillment or Purchaser’s
waiver, at or prior to the Closing, of each of the following conditions:

 

(a)          The
Company shall have obtained all governmental, regulatory or third party consents and approvals necessary for the sale of the Shares.

 

    	 	24	 

     

    

 

(b)          Purchaser
shall have received a certificate duly executed by the President and Chief Executive Officer of the Company, dated as of the Closing
Date, certifying:

 

(i)          all
representations and warranties of the Company shall be true and correct as of the Closing Date, with the same force and effect
as though made on and as of the Closing Date, and

 

(ii)         the
Company shall have performed all obligations and agreements and complied with all covenants and conditions contained in this Agreement
to be performed or complied with by it as of or prior to the Closing Date.

 

(c)          Purchaser
shall have received a certificate duly executed by the secretary or an assistant secretary (or equivalent officer) of the Company,
dated as of the Closing Date, certifying:

 

(i)          that
attached thereto are true and complete copies of all resolutions and other consents adopted by the board of directors and stockholders
of the Company authorizing and approving the execution, delivery, filing and performance of this Agreement and the other Transaction
Documents to which Purchaser is a party and the consummation of the transactions contemplated hereby and thereby, and that all
such resolutions and consents are in full force and effect as of the Closing Date and are all the resolutions and consents adopted
in connection with the transactions contemplated hereby and thereby;

 

(ii)         that
attached thereto are true and complete copies of the Certificate of Incorporation and Bylaws of the Company and that such organizational
documents are in full force and effect as of the Closing Date; and

 

(iii)        the
names and signatures of the officers of the Company authorized to sign this Agreement, the Transaction Documents and the other
documents to be delivered hereunder and thereunder.

 

(d)          The
Company shall have delivered to Purchaser (i) a good standing certificate (or its equivalent) for the Company and each of the
Subsidiaries from the secretary of state of the State of Delaware and (ii) a foreign qualification certificate (or its equivalent)
for the Company and each of the Subsidiaries from the secretary of state or similar Governmental Authority of each jurisdiction
in which the Company has qualified, or is required to qualify, to do business as a foreign corporation.

 

(e)          The
Company shall have delivered, or caused to be delivered, to Purchaser each of the following, each in form and substance satisfactory
to Purchaser:

 

(i)          evidence
of the Shares credited to book-entry accounts maintained by the Transfer Agent, bearing the legend or restrictive notation set
forth in Section 4.05 of this Agreement, free and clear of all Encumbrances, other than transfer restrictions under the
Transaction Documents, the Bylaws and applicable federal and state securities laws;

 

(ii)         an
opinion of legal counsel to the Company, dated as of the Closing Date, satisfactory to Purchaser; and

 

    	 	25	 

     

    

 

(iii)        such
other documents or instruments as Purchaser reasonably requests and are reasonably necessary to consummate the transactions contemplated
by this Agreement.

 

(f)          The
Company shall have fully complied with, or obtained appropriate consents or waivers with respect to, its obligations under each
of the agreements or other documents identified on Section 3.02(c) of the Disclosure Schedules, including with respect
to any outstanding rights of first refusal, rights of first offer, pre-emptive rights or anti-dilution rights or redemption or
repurchase rights.

 

(g)          The
NASDAQ shall have authorized, upon official notice of issuance, the listing of the Shares.

 

(h)          No
notice of delisting from the NASDAQ shall have been received by the Company with respect to the Shares.

 

(i)          The
Shares shall not have been suspended by the SEC or the NASDAQ from trading on the NASDAQ nor shall suspension by the SEC or the
NASDAQ have been threatened in writing by the SEC or the NASDAQ.

 

Section
5.03         Conditions to Obligations of the Company. The obligations
of the Company to consummate the transactions contemplated by this Agreement shall be subject to the fulfillment or the Company’s
waiver, at or prior to the Closing, of each of the following conditions:

 

(a)          The
Company shall have received a certificate duly executed by an officer or director of Purchaser, dated as of the Closing Date,
certifying:

 

(i)          all
representations and warranties of Purchaser shall be true and correct in all material respects as of the date hereof and at and
as of the Closing Date, with the same force and effect as though made on and as of the Closing Date; and

 

(ii)         Purchaser
shall have performed all obligations and agreements and complied with all covenants and conditions contained in this Agreement
to be performed or complied with by it prior to the Closing Date.

 

(b)          Purchaser
shall have delivered to the Company cash in an amount equal to the Purchase Price by wire transfer in immediately available funds,
to an account or accounts designated in writing by the Company to Purchaser.

 

    	 	26	 

     

    

 

Article
VI

COVENANTS

 

Section
6.01         Taking of Necessary Action. Each of the parties hereto
shall use its commercially reasonable efforts promptly to take or cause to be taken all action and promptly to do or cause to
be done all things necessary, proper or advisable under applicable Law and regulations to consummate and make effective the transactions
contemplated by this Agreement and the other Transaction Documents to which it is a party. Without limiting the foregoing, the
Company and Purchaser shall each use its commercially reasonable efforts to make all filings and obtain all consents of Governmental
Authorities that may be necessary or, in the reasonable opinion of the other parties, as the case may be, advisable for the consummation
of the transactions contemplated by this Agreement or the other Transaction Documents to which it is a party. The Company shall
promptly and accurately respond, and shall use its commercially reasonable efforts to cause its transfer agent to respond, to
reasonable requests for information (which is otherwise not publicly available) made by Purchaser or its auditors relating to
the actual holdings of Purchaser or its accounts; provided, that the Company shall not be obligated to provide any such information
that could reasonably result in a violation of applicable Law or conflict with the Company’s insider trading policy or a
confidentiality obligation of the Company. The Company shall use its commercially reasonable efforts to cause its transfer agent
to reasonably cooperate with Purchaser to ensure that the Shares are validly and effectively issued to Purchaser and that Purchaser’s
ownership of the Shares following the Closing is accurately reflected on the appropriate books and records of the Company’s
transfer agent.

 

Section
6.02         Supplemental Listing Application. The Company shall file
prior to the Closing a supplemental listing application with the NASDAQ to list the Shares.

 

Section
6.03         Further Assurances. Following the Closing, each of the parties
hereto shall, and shall cause their respective Affiliates to, execute and deliver such additional documents, instruments, conveyances
and assurances and take such further actions as may be reasonably required to carry out the provisions hereof and give effect
to the transactions contemplated by this Agreement,

 

Article
VII

INDEMNIFICATION

 

Section
7.01         Survival. Subject to the limitations and other provisions
of this Agreement, the representations and warranties contained herein shall survive the Closing and shall remain in full force
and effect until the date that is two (2) years from the Closing Date; provided, however, that (i) the representations and warranties
in Section 3.01, Section 3.02 and Section 3.03 shall survive indefinitely, and (ii) the representations and
warranties in Section 3.16, Section 3.20, Section 3.21, Section 3.22, Section 3.27 and
Section 3.29 shall survive for the full period of all applicable statutes of limitations (giving effect to any waiver,
mitigation or extension thereof) plus 60 days. All covenants and agreements of the parties contained herein shall survive the
Closing indefinitely or for the period explicitly specified therein. Notwithstanding the foregoing, any claims asserted in good
faith with reasonable specificity (to the extent known at such time) and in writing by notice from the non-breaching party to
the breaching party prior to the expiration date of the applicable survival period shall not thereafter be barred by the expiration
of the relevant representation or warranty and such claims shall survive until finally resolved.

 

Section
7.02         Indemnification by Company. Subject to the other terms and
conditions of this Article VII, the Company shall indemnify and defend each of Purchaser and its Affiliates and their respective
Representatives (collectively, the “Purchaser Indemnitees”) against, and shall hold each of them harmless from
and against, and shall pay and reimburse each of them for, any and all Losses incurred or sustained by, or imposed upon, the Purchaser
Indemnitees based upon, arising out of, with respect to or by reason of:

 

    	 	27	 

     

    

 

(a)          any
inaccuracy in or breach of any of the representations or warranties of the Company contained in this Agreement or in any certificate
or instrument delivered by or on behalf of the Company pursuant to this Agreement; or

 

(b)          any
breach or non-fulfillment of any covenant, agreement or obligation to be performed by the Company pursuant to this Agreement.

 

The
indemnity contained in this Section 7.02 shall not apply to amounts paid in settlement of any Loss if such settlement is
effected without the prior written consent of the Company, which consent shall not be unreasonably withheld, delayed or conditioned.
Notwithstanding the foregoing sentence, if at any time any Purchaser Indemnitee shall have requested the Company to reimburse
such Purchaser Indemnitee for any Loss as contemplated by this Section 7.02, the Company agrees that it shall be liable
for any settlement of Loss effected without its written consent if (i) such settlement is entered into more than 60 days after
receipt by the Company of the aforesaid request and (ii) the Company shall not have reimbursed the Purchaser Indemnitee in accordance
with such request or disputed in good faith the Purchaser Indemnitee’s entitlement to such reimbursement prior to the date
of such settlement.

 

Section
7.03         Payments. Once a Loss is agreed to by the Company
or finally adjudicated to be payable pursuant to this Article VII, the Company shall satisfy its obligations within fifteen
(15) Business Days of such final, non-appealable adjudication by wire transfer of immediately available funds. The parties hereto
agree that should the Company not make full payment of any such obligations within such fifteen (15) Business Day period, any
amount payable shall accrue interest from and including the date of agreement of the Company or final, non-appealable adjudication
to the date such payment has been made at a rate of 18% per annum. Such interest shall be calculated daily on the basis of a 365-day
year and the actual number of days elapsed.

 

Section
7.04         Tax Treatment of Indemnification Payments. All indemnification
payments made under this Agreement shall be treated by the parties as an adjustment to the Purchase Price for Tax purposes, unless
otherwise required by Law.

 

Section
7.05         Effect of Investigation. Neither the representations,
warranties and covenants of the Company, nor the right to indemnification of any Purchaser Indemnitee making a claim under this
Article VII with respect thereto, shall be affected or deemed waived by reason of any investigation made by or on behalf
of a Purchaser Indemnitee (including by any of its Representatives} or by reason of the fact that a Purchaser Indemnitee or any
of its Representatives knew or should have known that any such representation or warranty is, was or might be inaccurate or by
reason of a Purchaser Indemnitee’s waiver of any condition set forth in Section 5.02.

 

    	 	28	 

     

    

 

Section
7.06         Exclusive Remedies. Subject to Section 8.12,
the parties acknowledge and agree that their sole and exclusive remedy with respect to any and all claims (other than claims arising
from fraud, criminal activity or willful misconduct on the part of a party hereto in connection with the transactions contemplated
by this Agreement) for any breach of any representation, warranty, covenant, agreement or obligation set forth herein or otherwise
relating to the subject matter of this Agreement, shall be pursuant to the indemnification provisions set forth in this Article
VII. In furtherance of the foregoing, each party hereby waives, to the fullest extent permitted under Law, any and all rights,
claims and causes of action for any breach of any representation, warranty, covenant, agreement or obligation set forth herein
or otherwise relating to the subject matter of this Agreement it may have against the other parties hereto and their Affiliates
and each of their respective Representatives arising under or based upon any Law, except pursuant to the indemnification provisions
set forth in this Article VII, Nothing in this Section 7.06 shall limit any Person’s right to seek and obtain any
equitable relief to which any Person shall be entitled or to seek any remedy on account of any party’s fraudulent, criminal
or intentional misconduct.

 

Article
VIII

MISCELLANEOUS

 

Section
8.01         Expenses. The parties hereby agree that, (i) prior
to the execution and delivery of this Agreement and each of the other Transaction Documents, each party will bear its own costs
and expenses, including, without limitation, costs incurred for due diligence, except to the extent as otherwise provided herein
or therein; and (ii) upon the execution and delivery of this Agreement and the other Transaction Documents, the Company shall
reimburse the Investor for all expenses incurred by Investor (and any Affiliate that is a party to such Transaction Documents)
in connection with the transactions contemplated therein and thereby; provided, however, that notwithstanding the
foregoing, the Company’s reimbursement obligation for the expenses incurred by the Investor in connection with the transactions
contemplated herein shall be capped at $100,000.

 

Section
8.02         Notices. All notices, requests, consents, claims, demands,
waivers and other communications hereunder shall be in writing and shall be deemed to have been given (a) when delivered by hand
(with written confirmation of receipt); (b) when received by the addressee if sent by a nationally recognized overnight courier
(receipt requested); (c) on the date sent by facsimile or e-mail of a PDF document (with confirmation of transmission) if sent
during normal business hours of the recipient, and on the next Business Day if sent after normal business hours of the recipient
or (d) on the third day after the date mailed, by certified or registered mail, return receipt requested, postage prepaid. Such
communications must be sent to the respective parties at the following addresses (or at such other address for a party as shall
be specified in a notice given in accordance with this Section 8.02):

 

	If to the Company:	1010 Atlantic Avenue
	 	Alameda, California 94501
	 	E-mail:  Steve.Clarke@aquametals.com
	 	Attention:  Stephen R. Clarke

 

    	 	29	 

     

    

 

	with a copy to:	Greenberg Traurig, LLP
	 	3161 Michelson Drive, Suite 1000
	 	Irvine, California 92612
	 	E-mail:  donahued@gtlaw.com
	 	Attention:  Daniel K. Donahue,
    Esq.
	 	 
	If to Purchaser:	Tyco International Finance S.A.
	 	c/o Johnson Controls International plc
	 	5757 N. Green Bay Avenue
	 	Milwaukee, WI 53209
	 	E-mail:  CO-General.Counsel@jci.com
	 	Attention:  General Counsel
	 	 
	with a copy to:	Goodwin Procter LLP
	 	3 Embarcadero Center
	 	San Francisco, CA 94111
	 	E-mail:  hkemp@goodwinlaw.com
	 	Attention:  J. Hovey Kemp

 

Section
8.03         Interpretation. For purposes of this Agreement, (a)
the words “include,” “includes” and “including” shall be deemed to be followed by the words
“without limitation”; (b) the word “or” is not exclusive; and (c) the words “herein,”
“hereof,” “hereby,” “hereto” and “hereunder” refer to this Agreement as a whole.
Unless the context otherwise requires, references herein: (x) to Articles, Sections, Disclosure Schedules and Exhibits mean the
Articles and Sections of, and Disclosure Schedules and Exhibits attached to, this Agreement; (y) to an agreement, instrument or
other document means such agreement, instrument or other document as amended, supplemented and modified from time to time to the
extent permitted by the provisions thereof and (z) to a statute means such statute as amended from time to time and includes any
successor legislation thereto and any regulations promulgated thereunder. This Agreement shall be construed without regard to
any presumption or rule requiring construction or interpretation against the party drafting an instrument or causing any instrument
to be drafted. The Disclosure Schedules and Exhibits referred to herein shall be construed with, and as an integral part of, this
Agreement to the same extent as if they were set forth verbatim herein.

 

Section
8.04         Removal of Legend. The Company, at its sole cost, shall remove
the legend described in Section 4.05 (or instruct its transfer agent to so remove such legend) from the certificates evidencing
the Shares issued and sold to Purchaser pursuant to this Agreement if (A) such Shares are sold pursuant to an effective registration
statement under the Securities Act, (B) such Shares are sold or transferred pursuant to Rule 144 (if the transferor is not an
Affiliate of the Company), or (C) such 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(c)(1) (or Rule 144(i)(2), if applicable) as to such
securities and without volume or manner of sale restrictions. In connection with a sale of the Shares by Purchaser in reliance
on Rule 144, Purchaser or its broker shall deliver to the transfer agent and the Company a customary broker representation letter
providing to the transfer agent and the Company any information the Company deems reasonably necessary to determine that the sale
of the Shares is made in compliance with Rule 144, including, where and as may be appropriate, a certification that the Purchaser
is not an Affiliate of the Company and regarding the length of time the Shares have been held. Upon receipt of such representation
letter, the Company shall promptly direct its transfer agent to remove the legend referred to in Section 4.05 within two
(2) Business Days from the appropriate book-entry accounts maintained by the transfer agent, and the Company shall bear all costs
associated therewith. If Purchaser is not an Affiliate of the Company and has held the Shares for at least one year, if the book-entry
account of such Shares still bears the legend referred to in Section 4.05, the Company agrees, upon request of Purchaser,
to take all steps necessary to effect the removal of the legend described in Section 4.05 within two (2) Business Days
from the appropriate book-entry accounts maintained by the transfer agent, and the Company shall bear all costs associated therewith,
regardless of whether the request is made in connection with a sale or otherwise, so long as Purchaser provides to the Company
any information the Company deems reasonably necessary to determine that the legend is no longer required under the Securities
Act or applicable state laws, including (if there is no such registration statement), where and as may be appropriate, a certification
that the holder is not an Affiliate of the Company and regarding the length of time the Shares have been held. The date by which
such legend is so required to be removed pursuant to this Section 8.04 is referred to herein as the “Required
Legend Removal Date.”

 

    	 	30	 

     

    

 

Section
8.05         Headings. The headings in this Agreement are for reference
only and shall not affect the interpretation of this Agreement.

 

Section
8.06         Severability. If any term or provision of this Agreement
is invalid, illegal or unenforceable in any jurisdiction, such invalidity, illegality or unenforceability shall not affect any
other term or provision of this Agreement or invalidate or render unenforceable such term or provision in any other jurisdiction.
Upon such determination that any term or other provision is invalid, illegal or unenforceable, the parties hereto shall negotiate
in good faith to modify this Agreement so as to effect the original intent of the parties as closely as possible in a mutually
acceptable manner in order that the transactions contemplated hereby be consummated as originally contemplated to the greatest
extent possible.

 

Section
8.07         Entire Agreement. This Agreement and the other Transaction
Documents to which Purchaser is a party constitute the sole and entire agreement of the parties to this Agreement with respect
to the subject matter contained herein and therein, and supersede all prior and contemporaneous understandings and agreements,
both written and oral, with respect to such subject matter. In the event of any inconsistency between the statements in the body
of this Agreement and those in the other Transaction Documents to which Purchaser is a party, the Exhibits and Disclosure Schedules
(other than an exception expressly set forth as such in the Disclosure Schedules), the statements in the body of this Agreement
will control

 

Section
8.08         Successors and Assigns. This Agreement shall be binding
upon and shall inure to the benefit of the parties hereto and their respective successors and permitted assigns. Neither party
may assign its rights or obligations hereunder without the prior written consent of the other party, which consent shah not be
unreasonably withheld or delayed; provided, that prior to the Closing Date, Purchaser may, without the prior written consent of
the Company, assign all or any portion of its rights under this Agreement to one or more of its direct or indirect wholly-owned
subsidiaries. No assignment shall relieve the assigning party of any of its obligations hereunder.

 

    	 	31	 

     

    

 

Section
8.09         No Third-party Beneficiaries. Except as provided in Article
VII, this Agreement is for the sole benefit of the parties hereto and their respective successors and permitted assigns and
nothing herein, express or implied, is intended to or shall confer upon any other Person or entity any legal or equitable right,
benefit or remedy of any nature whatsoever under or by reason of this Agreement.

 

Section
8.10         Amendment and Modification; Waiver. This Agreement may only
be amended, modified or supplemented by an agreement in writing signed by each party hereto. No waiver by any party of any of
the provisions hereof shall be effective unless explicitly set forth in writing and signed by the party so waiving. No waiver
by any party shall operate or be construed as a waiver in respect of any failure, breach or default not expressly identified by
such written waiver, whether of a similar or different character, and whether occurring before or after that waiver. No failure
to exercise, or delay in exercising, any right, remedy, power or privilege arising from this Agreement shall operate or be construed
as a waiver thereof; nor shall any single or partial exercise of any right, remedy, power or privilege hereunder preclude any
other or further exercise thereof or the exercise of any other right, remedy, power or privilege.

 

Section
8.11         Governing Law; Submission to Jurisdiction; Waiver of Jury Trial.

 

(a)          This
Agreement shall be governed by and construed in accordance with the internal laws of the State of Delaware without giving effect
to any choice or conflict of law provision or rule.

 

(b)          ANY
LEGAL SUIT, ACTION OR PROCEEDING ARISING OUT OF OR BASED UPON THIS AGREEMENT, THE OTHER TRANSACTION DOCUMENTS TO WHICH PURCHASER
IS A PARTY OR THE TRANSACTIONS CONTEMPLATED HEREBY OR BY THE OTHER TRANSACTION DOCUMENTS TO WHICH PURCHASER IS A PARTY MAY BE
INSTITUTED IN THE FEDERAL COURTS OF THE UNITED STATES OF AMERICA OR THE COURTS OF THE STATE OF WISCONSIN IN EACH CASE LOCATED
IN THE CITY OF MILWAUKEE AND COUNTY OF MILWAUKEE, AND EACH PARTY IRREVOCABLY SUBMITS TO THE EXCLUSIVE JURISDICTION OF SUCH COURTS
IN ANY SUCH SUIT, ACTION OR PROCEEDING. SERVICE OF PROCESS, SUMMONS, NOTICE OR OTHER DOCUMENT BY MAIL TO SUCH PARTY’S ADDRESS
SET FORTH HEREIN SHALL BE EFFECTIVE SERVICE OF PROCESS FOR ANY SUIT, ACTION OR OTHER PROCEEDING BROUGHT IN ANY SUCH COURT. THE
PARTIES IRREVOCABLY AND UNCONDITIONALLY WAIVE ANY OBJECTION TO THE LAYING OF VENUE OF ANY SUIT, ACTION OR ANY PROCEEDING IN SUCH
COURTS AND IRREVOCABLY WAIVE AND AGREE NOT TO PLEAD OR CLAIM IN ANY SUCH COURT THAT ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT
IN ANY SUCH COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.

 

    	 	32	 

     

    

 

(c)          EACH
PARTY ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY WHICH MAY ARISE UNDER THIS AGREEMENT OR THE OTHER TRANSACTION DOCUMENTS TO
WHICH PURCHASER IS A PARTY IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES AND, THEREFORE, EACH SUCH PARTY IRREVOCABLY AND
UNCONDITIONALLY WAIVES ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LEGAL ACTION ARISING OUT OF OR RELATING TO THIS
AGREEMENT, THE OTHER TRANSACTION DOCUMENTS TO WHICH PURCHASER IS A PARTY OR THE TRANSACTIONS CONTEMPLATED HEREBY OR BY THE OTHER
TRANSACTION DOCUMENTS TO WHICH PURCHASER IS A PARTY. EACH PARTY TO THIS AGREEMENT CERTIFIES AND ACKNOWLEDGES THAT (A) NO REPRESENTATIVE
OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT SEEK TO ENFORCE THE FOREGOING WAIVER
IN THE EVENT OF A LEGAL ACTION, (B) SUCH PARTY HAS CONSIDERED THE IMPLICATIONS OF THIS WAIVER, (C) SUCH PARTY MAKES THIS WAIVER
VOLUNTARILY, AND (D) SUCH PARTY HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS
IN THIS SECTION 8.10(c).

 

Section
8.12         Specific Performance. The parties agree that irreparable
damage would occur if any provision of this Agreement were not performed in accordance with the terms hereof and that the parties
shall be entitled to specific performance of the terms hereof, in addition to any other remedy to which they are entitled at law
or in equity.

 

Section
8.13         Counterparts. This Agreement may be executed in counterparts,
each of which shall be deemed an original, but all of which together shall be deemed to be one and the same agreement. A signed
copy of this Agreement delivered by facsimile, e-mail or other means of electronic transmission shall be deemed to have the same
legal effect as delivery of an original signed copy of this Agreement.

 

Section
8.14         Termination.

 

(a)          Notwithstanding
anything herein to the contrary, this Agreement may be terminated at any time at or prior to the Closing by Purchaser (with respect
to Purchaser only), upon a breach in any material respect by the Company of any covenant or agreement set forth in this Agreement.

 

(b)          Notwithstanding
anything herein to the contrary, this Agreement shall automatically terminate at any time at or prior to the Closing if a statute,
rule, order, decree or regulation shall have been enacted or promulgated, or if any action shall have been taken by any Governmental
Authority of competent jurisdiction that permanently restrains, permanently precludes, permanently enjoins or otherwise permanently
prohibits the consummation of the transactions contemplated by this Agreement or makes the transactions contemplated by this Agreement
illegal.

 

(c)          In
the event of the termination of this Agreement as provided in this Section 8.14, this Agreement shall forthwith become
null and void. In the event of such termination, there shall be no liability on the part of any party hereto, except as set forth
in Article VI of this Agreement.

 

Section
8.15         Recapitalization, Exchange, etc. The provisions of
this Agreement shall apply to the full extent set forth herein with respect to any and all equity interests of the Company or
any successor or assign of the Company (whether by merger, consolidation, sale of assets or otherwise) that may be issued in respect
of, in exchange for or in substitution of, the Shares, and shall be appropriately adjusted for combinations, unit splits, recapitalizations
and the like occurring after the date of this Agreement.

 

    	 	33	 

     

    

 

Section
8.16         Failure to Timely Deliver; Buy-In. If the Company
improperly fails to remove the legend referred to in Section 4.05 by the Required Legend Removal Date and if on or after
the Business Day immediately following the Required Legend Removal Date the Purchaser (or any other Person in respect, or on behalf,
of Purchaser) purchases (in an open market transaction or otherwise) shares of Common Stock to deliver in satisfaction of a sale
by such Purchaser of all or any portion of the number of shares of Common Stock, or a sale of a number of shares of Common Stock
equal to all or any portion of the number of shares of Common Stock, that such Purchaser so anticipated receiving from the Company
without any restrictive legend, then, in addition to all other remedies available to such Purchaser, the Company shall, within
five (5) Business Days after such Purchaser’s request and in such Purchaser’s sole discretion, either (x) pay cash
to such Purchaser in an amount equal to such Purchaser’s total purchase price (including brokerage commissions and other
out-of-pocket expenses, if any) for the shares of Common Stock so purchased (including brokerage commissions and other out-of-pocket
expenses, if any) (the “Buy-In Price”), at which point the Company’s obligation to so deliver such certificate
or credit such Purchaser’s balance account shall terminate and such shares shall be cancelled, or (y) promptly honor its
obligation to remove the legend referred to in Section 4.05 from such number of shares of Common Stock that would have
been so delivered if the Company timely complied with its obligations hereunder and pay cash to such Purchaser in an amount equal
to the excess (if any) of the Buy-In Price over the product of (A) such number of Shares that the Company was required to deliver
to such Purchaser by the Required Legend Removal Date multiplied by (B) the lowest closing sale price of the Common Stock on any
Business Day during the period commencing on the date of the delivery by such Purchaser to the Company of the applicable Shares
and ending on the date of such delivery and payment under this clause (y).

 

[Signature
Page Follows]

 

    	 	34	 

     

    

 

IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the date first written above by their respective
officers thereunto duly authorized.

 

	 	COMPANY:
	 	 	 
	 	AQUA METALS, INC.
	 	 	 
	 	By:	/s/ Stephen R. Clarke
	 	 	Stephen R. Clarke
	 	 	Chief Executive Officer
	 	 	 
	 	PURCHASER:
	 	 	 
	 	TYCO INTERNATIONAL FINANCE S.A.
	 	 	 
	 	By:	/s/ Peter Schieser
	 	 	Peter Schieser
	 	 	Managing Director

 

[SIGNATURE
PAGE TO STOCK PURCHASE AGREEMENT]

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