Document:

Exhibit
10.4

 

Gerald
R. Newman & Associates

 

162
N. Hamel Drive

Suite
101

Beverly Hills, California 90211

 

Tel.
(310) 871-3996

Fax
(310) 289-1015

Email
gman90211@gmail.com

 

June
23, 2021

 

PERSONAL
AND CONFIDENTIAL

 

BullFrog
AI Holdings, Inc.

325 Ellington Blvd., #317

Gaithersburg,
MD 20878

	Attn:	Vin
    Singh – Chief Executive Officer 

 

Dear
Mr. Singh,

 

This
Business Services Development Agreement (the “Agreement”) confirms the terms and conditions of the engagement of Gerald R.
Newman, (“CONSULTANT”) by BullFrog AI Holdings, Inc., a Delaware Corporation (the “Company”) to render certain
professional services to the Company.

 

Whereas,
CONSULTANT has assisted hundreds of companies over the past 40 years with business development, including helping both private and public
companies with improving valuation, strategic relationships, acquisitions, licensing, recruiting key personnel, improving domestic/international
distribution, public company resources, both as a consultant and/or business attorney (now recently retired), and

 

Whereas,
CONSULTANT has of June 18, 2021 commenced to assist the Company with general business consulting, strategic relationships and the recruiting
of certain key personnel, and

 

Whereas,
CONSULTANT and the Company desire to memorialize their prior oral agreement with this written Business Services Development Agreement,

 

	Consultant__GRN

	Company 	 	(initial)

 

    	Page 1 of 10

    	 

    

 

NOW
THEREFOR, FOR ADEQUATE CONSIDERATION, THE PARTIES HEREBY AGREE AS FOLLOWS:

 

	1.	Business
    Goals of the Company

 

	 	(a)	The
    CEO of the Company has indicated that he would like assistance in building value for the Company by having:

 

	 	1)	New
    customer acquisition opportunities that could be beneficial to the Company
	 	2)	Intellectual
    Property (IP) acquisition and licensing opportunities that could be beneficial to the Company
	 	3)	New
    product opportunities that could be beneficial to the Company
	 	4)	New
    domestic and international distribution channels that could be beneficial to the Company
	 	5)	New
    advertising and marketing opportunities that could be beneficial to the Company
	 	6)	Service
    providers who can assist the Company in the process of obtaining a Nasdaq listing, including an experienced and available PCAOB Auditor,
    an experienced and available SEC Attorney, and an experienced and available NASDAQ Process Coordinator.
	 	7)	Service
    providers to assist with Company Public Press Releases
	 	8)	Service
    providers to assist with Company Investor Relations
	 	9)	Service
    providers who can assist with opening Stock Brokerage Accounts for thousands of the Company’s shareholders
	 	10)	Such
    other assistance the Company and the CONSULTANT may agree upon during the term of the CONSULTANT’S engagement.

 

	2.	CONSULTANT
    shall provide the following services, if requested, to Assist the Company with its Business Goals

 

	 	(a)	Sales
    goals - at the request of the CEO review the Company sales plans, resources, personnel requirements and potential challenges. Offer
    such advice and referral of experts as may be helpful
	 	(b)	Business
    acquisition opportunities – CONSULTANT has over the years established connections with business brokers and M&A firms,
    both domestic and international, and is familiar with the relevant databases of such opportunities
	 	(c)	Intellectual
    Property (IP) acquisition and licensing – CONSULTANT has over the years established business connections with patent attorneys
    and licensing attorneys and is familiar with the relevant databases of such opportunities
	 	(d)	New
    product opportunities – CONSULTANT has over the years established business connections with new product developers and has
    access to the relevant databases.
	 	(e)	New
    domestic and international distribution channels – CONSULTANT has owned,operated and partnered in various businesses and has
    become familiar with domestic and international distribution channels on a worldwide basis
	 	(f)	New
    advertising and marketing opportunities – CONSULTANT has owned and operated a national advertising and marketing firm, including
    print, radio, TV, digital and nationwide informercials (one of which did over $100 million in sales)

 

	Consultant__GRN

	Company 	 	(initial)

 

    	Page 2 of 10

    	 

    

 

	 	(g)	Service
    providers who can assist with a Nasdaq listing

 

	 	1)	PCAOB
    Auditor – CONSULTANT has sourced an experienced and available Auditor and the Company has the opportunity to enter into an
    agreement with the Auditor that it deems acceptable. CONSULTANT will continue to work with the Auditor and the Company to make sure
    the audit is completed in a timely and professional manner.
	 	2)	SEC
    Attorney – CONSULTANT has sourced an experienced and available SEC Attorney and the Company has the opportunity to enter into
    an agreement with the Attorney that it deems acceptable. CONSULTANT will continue to work with the SEC attorney and the Company to
    make sure the necessary legal process for a NASAQ listing is completed in a timely and professional manner.
	 	3)	NASDAQ
    Process Coordinator – CONSULTANT has sourced an experienced and available NASDAQ Process Coordinator and the Company has the
    opportunity to enter into an agreement with the NASDAQ Process Coordinator that it deems acceptable. CONSULTANT will continue to
    work with the NASDAQ Process Coordinator to make sure the necessary NASDAQ listing process is completed in a timely and professional
    manner (for details see 1), below).

 

	 	(h)	Service
    provider for Public Press Releases – CONSULTANT has advised numerous public companies and has business connections with various
    firms that write and publish public company press releases
	 	(i)	Service
    provider for Investor Relations – CONSULTANT has advised numerous public companies and has business connections with various
    Investor Relations firms
	 	(j)	Service
    provider for shareholder Stock Brokerage Accounts – CONSULTANT has assisted the shareholders of various public companies to
    open Stock Brokerage Accounts including a company CONSULTANT took public and that at the time had four thousand individual investors

 

	 	1)	Details:
    NASDAQ financial requirements coordinator, underwriter negotiator, and NASDAQ listing process supervisor for the Company (the
    “NASDAQ Process Coordinator”) working in conjunction with the CONSULTANT will:

 

	 	●	Assist
    the Company in responding to comments from the NASDAQ Listing Qualifications Staff, if requested;
	 	 	 
	 	●	Assist
    the Company in preparing a Code of Conduct applicable to all directors, officers and employees, including but not limited to, insiders
    trading policies, if requested;
	 	 	 
	 	●	Assist
    the Company in preparing employment agreements for all directors and executive officers, if requested;
	 	 	 
	 	●	Assist
    the Company to setup the Company’s nomination system for all directors;
	 	 	 
	 	●	Advise
    and assist the Company in the conversion of its financial reporting systems, including its projected financial statements, to a format
    that is consistent with United States GAAP (Generally Accepted Accounting Principles);
	 	 	 
	 	●	Review
    and advise the Company on all documents and accounting systems relating to its finances and transactions, with the purpose of bringing
    such documents and systems into compliance with United States GAAP or disclosures required by SEC;

 

	Consultant__GRN

	Company 	 	(initial)

 

    	Page 3 of 10

    	 

    

 

	 	●	Provide
    necessary consulting services and support as a liaison for the
	 	 	 
	 	●	Company
    to third-party service providers, including coordination amongst the Company and their related attorneys, CPAs and the transfer agent;
	 	 	 
	 	●	Provide
    management training to the senior management of the Company, pertaining to usual and customary practices for public companies with
    business plans similar to the Company’s business plan;
	 	 	 
	 	●	Assist
    the Company with Edgarization of Initial Public Offering related filings with the United States Securities and Exchange Commission,
    including Forms S-1, XBRL Filings for financial statements, footnotes.

 

	3.	Services
    Fees. The Company agrees to pay CONSULTANT for the services set forth in this Agreement a professional service fee (“Services
    Fee” or “Securities”) consisting of:

 

Common
Shares: Three Percent (3%) of the fully diluted equity of the Company as measured by the capital equity table immediately prior to
listing on NASDAQ or any other Exchange. The Company will, within 14 days of signing of this Agreement, deliver a copy of a stock certificate
for common shares representing 3% of the current and outstanding equity with a ‘true-up’ amount to be delivered within thirty
days prior to its expected listing day.

 

Warrants:
The Company shall grant CONSULTANT five-year warrants to purchase 1,000,000 shares of the Company’s common stock at $1.00 per
share. All warrants will vest 30 days prior to an expected going public transaction. The parties agree to attach a Form of Warrants,
including cash-less exercise, as Exhibit B within thirty days of its expected listing day.

 

Considering
that the Company is in the process of finalizing its capitalization, the Company is authorized to reduce the CONSULTANT’S warrants
so that the Consultant beneficially owns no more than 9.95% of the Company’s capital stock when combined with granted and vested
warrants as of the time of listing.

 

	Consultant__GRN

	Company 	 	(initial)

 

    	Page 4 of 10

    	 

    

 

Leak-out
Transition Fee. It is contemplated that CONSULTANT will be under a stock lock- up/leak-out agreement once the Company is listed as
a public company, therefore CONSULTANT shall be entitled to be paid as an independent contractor on the first of each month the sum of
seven thousand five hundred dollars first commencing when the Company is publicly listed and ending twelve months thereafter.

 

	 	i.	Except
    as provided by the vesting provisions of the warrants, the Services Fee shall be deemed fully earned upon signing this Agreement.
    The Consultant makes no representations with respect to the success of his and the Company’s efforts to achieve their above
    stated Business Goals.
	 	 	 
	 	ii.	In
    addition to any fees that may be payable to CONSULTANT under this Agreement, the Company agrees to reimburse CONSULTANT, upon request
    made from time to time, for its reasonable out-of-pocket expenses incurred in connection with CONSULTANT’s activities under
    this Agreement, including the reasonable fees and travel expenses for the meetings on behalf of the Company. All such fees, expenses
    and costs will be pre-approved by the Company in writing, and billed at any time by CONSULTANT and are payable by the Company when
    invoiced. Upon expiration of the Agreement any unreimbursed fees and expenses will be immediately due and payable.

 

	4.	Term.
    The term of this Agreement shall commence on June 23, 2021 and end on June 23, 2023, (the “Term”). This Agreement may
    be renewed upon mutual written agreement of the parties hereto. Any obligation pursuant to this Paragraph 4, and pursuant to Paragraphs
    3 (payment of fees), 5 (indemnification), 6 (matters relating to engagement), 7 (governing law); 8 (attorney fees) and 11 (miscellaneous)
    hereof, shall survive the termination or expiration of this Agreement. As stated in the foregoing sentence, the parties specifically
    agree that in the event the Company terminates this Agreement prior to expiration of the Term for any reason other than material
    breach of this Agreement by CONSULTANT, the full Service Fee shall become immediately due and payable.
	 	 
	5.	Indemnification.
    In addition to the payment of fees and reimbursement of fees and expenses provided for above, the Company agrees to indemnify CONSULTANT
    and its affiliates with regard to the matters contemplated herein, as set forth in Exhibit A, attached hereto, which is incorporated
    by reference as if fully set forth herein.
	 	 
	6.	Matters
    Relating to Engagement. The Company acknowledges that CONSULTANT has been retained solely to provide the services set forth in
    this Agreement.

 

In
rendering such services, CONSULTANT shall act as an independent contractor, and any duties of CONSULTANT arising out of its engagement
hereunder shall be owed solely to the Company. The Company further acknowledges that CONSULTANT may perform certain of the services described
herein through one or more of its affiliates, and provide similar services for other non-competitive companies. Consultant acknowledges
that they will devote sufficient time to performing its services under the Agreement.

 

	Consultant__GRN

	Company 	 	(initial)

 

    	Page 5 of 10

    	 

    

 

The
Company acknowledges and agrees that in connection with the performance of CONSULTANT’s services hereunder (or any other services)
that neither CONSULTANT nor any of its employees will be providing the Company with legal, tax or accounting advice or guidance (and
no advice or guidance provided by CONSULTANT or its employees to the Company should be construed as such) and that neither CONSULTANT
nor its employees hold itself or themselves out to be advisors as to legal, tax, accounting, financing or regulatory matters in any jurisdiction,
nor will the CONSULTANT be responsible for obtaining any investments in the Company. CONSULTANT may retain attorneys and accountants
that are for CONSULTANT’s benefit, and CONSULTANT may recommend a particular law firm, accounting/audit firm, broker-dealer / Investment
Banking firm, Investor Relations firm, or digital marketing firm to be engaged by the Company. However, CONSULTANT makes no recommendation
as to the outcome of such referrals, nor does CONSULTANT guarantee or warrant the work product of any referral. The Company shall consult
with its own legal, tax, accounting and financial advisors concerning all matters and advice rendered by CONSULTANT to the Company, and
the Company shall be responsible for making its own independent investigation and appraisal of the risks, benefits and suitability of
the advice and guidance given by CONSULTANT to the Company. Neither CONSULTANT nor its employees shall have any responsibility or liability
whatsoever to the Company or its affiliates with respect thereto.

 

The
Company recognizes and confirms that in performing its duties pursuant to this Agreement, CONSULTANT will be using and relying on data,
material, and other information furnished by the Company, a third-party provider, or their respective employees and representatives (“the
Information”). The Company will cooperate with CONSULTANT and will furnish CONSULTANT with all Information concerning the Company
and any financial information or organizational or transactional information which CONSULTANT deems appropriate, and Company will provide
CONSULTANT with access to the Company’s officers, directors, employees, independent accountants and legal counsel for the purpose
of performing CONSULTANT’s obligations pursuant to this Agreement.

 

The
Company hereby agrees and represents that all Information furnished to CONSULTANT pursuant to this Agreement shall be accurate and complete
in all material respects at the time provided, and that, if the Information becomes materially inaccurate, incomplete or misleading during
the term of CONSULTANT’s engagement hereunder, the Company shall promptly advise CONSULTANT in writing. Accordingly, CONSULTANT
assumes no responsibility for the accuracy and completeness of the Information. In rendering its services, CONSULTANT will be using and
relying upon the Information without independent verification evaluation thereof.

 

	Consultant__GRN

	Company 	 	(initial)

 

    	Page 6 of 10

    	 

    

 

	7.	Representations
    and Warranties by CONSULTANT. CONSULTANT, by his acceptance of the Securities he agrees to accept for payment, represents and
    warrants to Company as follows:

 

	 	(a)	CONSULTANT
    is acquiring the Securities he agrees to accept for payment with the intent to hold as an investment and not with a view of distribution.
	 	 	 
	 	(b)	CONSULTANT
    is an “accredited investor” within the definition contained in Rule 501(a) under the Securities Act of 1933, as amended
    (the “Securities Act”), and is acquiring the Securities for its own account, for investment, and not with a view
    to, or for sale in connection with, the distribution thereof or of any interest therein. CONSULTANT has adequate net worth and means
    of providing for his current needs and contingencies and is able to sustain a complete loss of the investment in the Securities,
    and has no need for liquidity in such investment. CONSULTANT, himself or through his officers, employees or agents, has sufficient
    knowledge and experience in financial and business matters to be capable of evaluating the merits and risks of an investment such
    as an investment in the Securities, and CONSULTANT, either alone or through his officers, employees or agents, has evaluated the
    merits and risks of the investment in the Securities.
	 	 	 
	 	(c)	CONSULTANT
    acknowledges and agrees that it is acquiring the Securities hereunder based upon his own inspection, examination and determination
    with respect thereto as to all matters, and without reliance upon any express or implied representations or warranties of any nature,
    whether in writing, orally or otherwise, made by or on behalf of or imputed to the Company.
	 	 	 
	 	(d)	CONSULTANT
    has no contract, arrangement or understanding with any broker, finder, investment bank, financial intermediary, or similar agent
    with respect to any of the transactions contemplated by this Agreement.

 

	8.	Governing
    Law, Consent to Jurisdiction, Attorney Fees. This Agreement shall be governed by and construed in accordance with the laws of
    the State of California, without regard to conflict of laws provisions. All disputes arising out of or in connection with this agreement,
    or in respect of any legal relationship associated with or derived from this agreement, shall only be heard in any competent court
    residing in Los Angeles County, California. Company agrees that a final judgment in any such action or proceeding shall be conclusive
    and may be enforced in other jurisdictions by suit on the judgment or in any manner provided by law. The Company further waives any
    objection to venue in any such action or proceeding on the basis of inconvenient forum. The Company agrees that any action on or
    proceeding brought against CONSULTANT shall only be brought in such courts. In the event CONSULTANT shall refer this Agreement to
    an attorney to enforce the terms hereof, the Company agrees to pay all the costs and expenses incurred in attempting or effecting
    the enforcement of the CONSULTANT’s rights, including reasonable attorney’s fees, whether or not suit is instituted.

 

	Consultant__GRN

	Company 	 	(initial)

 

    	Page 7 of 10

    	 

    

 

	9.	No
    Brokers. The Company represents and warrants to CONSULTANT that there are no brokers, representatives, service providers under
    this Agreement or other persons which have an interest in compensation due to CONSULTANT from any services contemplated herein.
	 	 
	10.	Authorization.
    The Company and CONSULTANT represent and warrant that each has all requisite power and authority, and all necessary authorizations,
    to enter into and carry out the terms and provisions of this Agreement and the execution, delivery and performance of this Agreement
    does not breach or conflict with any agreement, document or instrument (including third-party contracts, wills, court orders, regulatory
    orders, etc.) to which it is a party or bound.
	 	 
	11.	Miscellaneous.
    This Agreement constitutes the entire understanding and agreement between the Company and CONSULTANT with respect to the subject
    matter hereof and supersedes all prior understandings or agreements between the parties with respect thereto, whether oral or written,
    express or implied. Any amendments or modifications must be executed in writing by both parties. This Agreement and all rights, liabilities
    and obligations hereunder shall be binding upon and inure to the benefit of each party’s successors, but may not be assigned
    without the prior written approval of the other party. If any provision of this Agreement shall be held or made invalid by a statute,
    rule, regulation, decision of a tribunal or otherwise, the remainder of this Agreement shall not be affected thereby and, to this
    extent, the provisions of this Agreement shall be deemed to be severable. This Agreement may be executed in any number of counterparts,
    each of which shall be deemed to be an original, but such counterparts shall, together, constitute only one instrument. The descriptive
    headings of the paragraphs of this Agreement are inserted for convenience only, do not constitute a part of this Agreement and shall
    not affect in any way the meaning or interpretation of this Agreement. CONSULTANT hereby discloses that he is a retired attorney,
    in good standing, whose Bar license in California is currently non-active; he is not providing legal services under this Agreement
    nor being paid for such by the Company.
	 	 
	12.	Previous
    Agreement. CONSULTANT and the Company having previously entered into a Non-Disclosure and Non-Circumvention Agreement, regarding
    persons hired by the Company, CONSULTANT agrees to issue a full and complete release and waiver to the Company upon CONSULTANT receiving
    the shares and warrants herein provided for in this Agreement.

 

Please
confirm that the foregoing correctly sets forth our agreement by signing below in the space provided, placing your initials on the bottom
left of each page and returning this Agreement to CONSULTANT fully executed, which shall constitute a binding agreement as of the date
first above written.

 

	Consultant__GRN

	Company 	 	(initial)

 

    	Page 8 of 10

    	 

    

 

CONSULTANT

 

	By:	Gerald
    R. Newman	 
	Name:	Gerald
    R. Newman, an individual	 

 

AGREED
TO AND ACCEPTED

DATE:
JUNE 23, 2021

 

BullFrog
AI Holdings, Inc.

 

	By:
    		 
	Name:	Vin
    Singh	 
	Title:	Chief
    Executive Officer	 

 

AGREED
TO AND ACCEPTED DATE: JUNE 23, 2021

 

	Consultant__GRN

	Company 	 	(initial)

 

    	Page 9 of 10

    	 

    

 

EXHIBIT
A: INDEMNIFICATION

 

The
Company agrees to indemnify CONSULTANT, its employees, directors, officers, agents, affiliates, and each person, if any, who controls
it within the meaning of either Section 20 of the Securities Exchange Act of 1934 or Section 15 of the Securities Act of 1933 (each such
person, including CONSULTANT is referred to as “Indemnified Party”) from and against any losses, claims, damages and liabilities,
joint or several (including all legal or other expenses reasonably incurred by an Indemnified Party in connection with the preparation
for or defense of any threatened or pending claim, action or proceeding, whether or not resulting in any liability) (“Damages”),
to which such Indemnified Party, in connection with providing its services or arising out of its engagement hereunder, may become subject
under any applicable Federal or state law or otherwise, including but not limited to liability or loss (i) caused by or arising out of
an untrue statement or an alleged untrue statement of a material fact or omission or alleged omission to state a material fact by the
Company necessary in order to make a statement not misleading in light of the circumstances under which it was made, (ii) caused by or
arising out of any act or failure to act by the Company, or (iii) arising out of CONSULTANT’s engagement or the rendering by any
Indemnified Party of its services under this Agreement; provided, however, that the Company will not be liable to the Indemnified Party
hereunder to the extent that any Damages resulted from the negligence, gross negligence or willful misconduct of the Indemnified Party
seeking indemnification hereunder.

 

These
indemnification provisions shall be in addition to any liability which the Company may otherwise have to any Indemnified Party.

 

If
for any reason, other than a final non-appealable judgment finding an Indemnified Party liable for Damages for its gross negligence or
willful misconduct the foregoing indemnity is unavailable to an Indemnified Party or insufficient to hold an Indemnified Party harmless,
then the Company shall contribute to the amount paid or payable by an Indemnified Party as a result of such Damages in such proportion
as is appropriate to reflect not only the relative benefits received by the Company and its shareholders on the one hand and the Indemnified
Party on the other, but also the relative fault of the Company and the Indemnified Party as well as any relevant equitable considerations.

 

Promptly
after receipt by the Indemnified Party of notice of any claim or of the commencement of any action in respect of which indemnity may
be sought, the Indemnified Party will notify the Company in writing of the receipt or commencement thereof and the Company shall have
the right to assume the defense of such claim or action (including the employment of counsel reasonably satisfactory to the Indemnified
Party and the payment of fees and expenses of such counsel and any monetary settlement), provided that the Indemnified Party shall have
the right to control its defense if, in the opinion of its counsel, the Indemnified Party’s defense is unique or separate to it
as the case may be, as opposed to a defense pertaining to the Company. In any event, the Indemnified Party shall have the right to retain
counsel reasonably satisfactory to the Company, at the Company’s sole expense, to represent it in any claim or action in respect
of which indemnity may be sought and agrees to cooperate with the Company and the Company’s counsel in the defense of such claim
or action. In the event that the Company does not promptly assume the defense of a claim or action, the Indemnified Party shall have
the right to employ counsel to defend such claim or action. Any obligation pursuant to this Annex shall survive the termination or expiration
of the Agreement.

 

BullFrog
AI Holdings, Inc.

 

	By:
    	 	 	 
	Name:	Vin
    Singh	 	 
	Title:	Chief
    Executive Officer	Dated:	June
    23, 2021

 

	Consultant__GRN

	Company 	 	(initial)

 

    	Page 10 of 10Exhibit 10.1

 

PLACEMENT AGENCY AGREEMENT

 

October 17, 2022

 

Sysorex, Inc.

13880 Dulles Corner Lane #175

Herndon, VA 20171

Attn: Wayne Wasserberg, Chief Executive Officer

 

Mr. Wasserberg:

 

This will confirm
our agreement that Sysorex, Inc. (the “Company”) has engaged Joseph Gunnar & Co., LLC (“Placement Agent”)
to act as the Company’s exclusive Placement Agent with respect effectuating the Offering. For purposes of this agreement, the term
“Offering” means a private placement pursuant to which the Company will be offering up to $500,000 of its common stock, par
value per $0.00001 (the “Common Stock”) and a warrant to purchase Common Stock (the “Warrant” and together with
the Common Stock sold in the Offering, the “Securities”). Placement of the Securities will be made on a “commercially
reasonable efforts” basis. All capitalized terms used herein that are not otherwise defined herein shall have the meaning ascribed
to such terms in the Purchase Agreement (as defined below).

 

The Placement
Agent shall offer the Securities only to persons or entities who qualify as “accredited investors,” as such term is defined
in Rule 501 of Regulation D (“Regulation D”) as promulgated by the United States Securities and Exchange Commission (the “SEC”)
under Section 4(a)(2) of the Securities Act of 1933, as amended (the “Act”). The Securities will be offered until the earlier
of (i) the termination of the Offering as provided herein, (ii) the time that all Securities offered in the Offering are sold, or (iii)
October 31, 2022 (“Initial Offering Period”), which date may be extended by the Placement Agent and the Company in their joint
discretion until November 30, 2022 (this additional period and the Initial Offering Period shall be referred to as the “Offering
Period”). The date on which the Offering expires or is terminated shall be referred to as the “Termination Date.”

 

The offering of
the Securities will be made solely pursuant to the Disclosure Materials, which at all times will be in form and substance acceptable to
the Placement Agent and their counsel and contain such legends and other information as the Placement Agent and their counsel may, from
time-to-time, deem necessary and desirable to be set forth therein. “Disclosure Materials” as used in this Agreement means
that certain Securities Purchase Agreement pursuant to which the Securities are to be sold, inclusive of all exhibits and all amendments,
supplements and appendices thereto (the “Purchase Agreement”). Unless otherwise defined, each term used in this Agreement
will have the same meaning as set forth in the Disclosure Materials.

 

 1. Representations and Warranties of the Company. Except as set forth in the Disclosure Materials, the representations and warranties of the Company contained below are true and correct as of the date of this Agreement:

 

 (a) The Disclosure Materials haves been diligently prepared by the Company, in conformity with all applicable laws and the requirements of all other rules and regulations of the SEC relating to offerings of the type contemplated by the Offering, and the applicable securities laws and the rules and regulations of those jurisdictions wherein the Securities are to be offered and sold. With respect to actions taken by the Company, the Securities will be offered and sold pursuant to the registration exemption provided by Regulation D and Section 4(a)(2) of the Securities Act as a transaction not involving a public offering and the requirements of any other applicable state securities laws and the respective rules and regulations thereunder in those jurisdictions in which the Placement Agent notify the Company that the Securities are being offered for sale. The Company has not taken nor will it take any action which conflicts with the conditions and requirements of, or which would make unavailable with respect to the Offering, the exemptions from registration available pursuant to Regulation D or Section 4(a)(2) of the Securities Act, and knows of no reason why any such exemption would be otherwise unavailable to it. The Company has not been subject to any order, judgment or decree of any court of competent jurisdiction temporarily, preliminarily or permanently enjoining it for failing to comply with Rule 503 of Regulation D.

 

    Page 1 of 12

     

    

 

 (b) The Disclosure Materials do not include any untrue statement of a material factor omit to state any material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading provided, however, the foregoing does not apply to any statements or omissions made solely in reliance on and in conformity with written information furnished to the Company by the Placement Agent specifically for use in the preparation thereof. To the Company’s knowledge, none of the statements, documents, certificates or other items made, prepared or supplied by the Company with respect to the transactions contemplated hereby contains an untrue statement of a material fact or omits to state a material fact necessary to make the statements contained therein not misleading in light of the circumstances in which they were made.

 

 (c) Except for the compensation set forth in this Agreement, the Company is not obligated to pay, and has not obligated the Placement Agent to pay, a finder’s or origination fee in connection with the Offering, and hereby agrees to indemnify the Placement Agent from any such claim made by any other person as more fully set forth in Section 8 hereof.

 

 (d) The Company has all requisite corporate power and authority to (i) enter into and perform its obligations under this Agreement and (ii) issue and sell the Securities and to deliver the transaction documents contemplated by the Purchase Agreement and the securities to be issued pursuant thereto. This Agreement has been duly authorized, executed and delivered and constitutes valid and binding obligations of the Company, enforceable against the Company in accordance with its terms (i) except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws now or hereafter in effect related to laws affecting creditors’ rights generally, including the effect of statutory and other laws regarding fraudulent conveyances and preferential transfers, and except that no representation is made herein regarding the enforceability of the Company’s obligations to provide indemnification and contribution remedies under the securities laws and (ii) subject to the limitations imposed by general equitable principles (regardless of whether such enforceability is considered in a proceeding at law or in equity).

 

 (e) The Company, as well as all Company Related Persons (as defined below) are not subject to any of the disqualifications set forth in Rule 506(d) of Regulation D (each a “Disqualification Event”). The Company has exercised reasonable care to determine whether any Company Related Person is subject to a Disqualification Event. The Disclosure Materials contain a true and complete description of the matters required to be disclosed with respect to the Company and the Company Related Persons pursuant to the disclosure requirements of Rule 506(e) of Regulation D, to the extent applicable. As used herein, “Company Related Persons” means any predecessor of the Company, any affiliated Company, any director, executive officer, other officer of the Company participating in the Offering, any general partner or managing member of the Company, any beneficial owner of 20% or more of the Company’s outstanding voting equity securities, calculated on the basis of voting power, and any “promoter” (as defined in Rule 405 under the Act) connected with the Company in any capacity. The Company agrees to promptly notify the Placement Agent in writing of (i) any Disqualification Event relating to any Company Related Person and (ii) any event that would, with the passage of time, become a Disqualification Event relating to any Company Related Person.

 

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 (f) For the benefit of the Placement Agent, the Company, hereby incorporates by reference all of the representations and warranties as set forth in Article III of the Purchase Agreement with the same force and effect as if specifically set forth herein.

 

 2. Representations, Warranties and Covenants of Placement Agent. The Placement Agent represents and warrants to the Company that the following representations and warranties are true and correct as of the date of this Agreement:

 

 (a) The Placement Agent is a member in good standing of the Financial Industry Regulatory Authority, Inc. (“FINRA”) and is registered as a broker-dealer under the Exchange Act, and under the securities acts of each state into which it is making offers or sales of the Securities.

 

 (b) Neither Placement Agent nor any Placement Agent Related Persons (as defined below) are subject to any Disqualification Event. Placement Agent has exercised reasonable care to determine whether any Placement Agent Related Person is subject to a Disqualification Event. This Agreement contains a true and complete description of the matters required to be disclosed with respect to Placement Agent and Placement Agent Related Persons pursuant to the disclosure requirements of Rule 506(e) of Regulation D, to the extent applicable. As used herein, “Placement Agent Related Persons” means any director, general partner, managing member, executive officer, or other officer of Placement Agent participating in the Offering. Placement Agent agrees to promptly notify the Company in writing of (i) any Disqualification Event relating to any Placement Agent Related Person, and (ii) any event that would, with the passage of time, become a Disqualification Event relating to any Placement Agent Related Person.

 

 3. Further Covenants. The Company hereby covenants and agrees that:

 

 (a) Except upon prior written notice to the Placement Agent, the Company shall not, at any time prior to the Final Closing (as defined below), knowingly take any action which would cause any of the representations and warranties made by it in this Agreement not to be complete and correct in all material respects on and as of each closing date with the same force and effect as if such representations and warranties had been made on and as of each such date (except to the extent any representation or warranty relates to an earlier date).

 

 (b) If, at any time prior to the Final Closing, any event shall occur, which as a result it becomes necessary to amend or supplement the Disclosure Materials so that the representations and warranties herein remain true and correct in all material respects, or in case it shall be necessary to amend or supplement the Disclosure Materials to comply with Regulation D or any other applicable securities laws or regulations, the Company will promptly notify the Placement Agent and shall, at its sole cost, prepare and furnish to the Placement Agent copies of appropriate amendments and/or supplements in such quantities as the Placement Agent may reasonably request for delivery by the Placement Agent to potential subscribers. The Company will not at any time before the Final Closing prepare or use any amendment or supplement to the Disclosure Materials of which the Placement Agent will not previously have been advised and furnished with a copy, or which is not in compliance in all respects with the Act and other applicable securities laws. As soon as the Company is advised thereof, the Company will advise the Placement Agent and its counsel, and confirm the advice in writing, of any order preventing or suspending the use of the Disclosure Materials, or the suspension of any exemption for such qualification or registration thereof for offering in any jurisdiction, or of the institution or threatened institution of any proceedings for any of such purposes, and the Company will use its commercially reasonable efforts to prevent the issuance of any such order and, if issued, to obtain as soon as reasonably possible the lifting thereof.

 

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 (c) The Company shall comply with the Act, the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and the rules and regulations thereunder, all applicable state securities laws and the rules and regulations thereunder in the states in which the Company’s Blue Sky counsel has advised the Placement Agent and the Company that the Securities are qualified or registered for sale or exempt from such qualification or registration, so as to permit the continuance of the sales of the Securities, and will file or cause to be filed with the SEC, and shall promptly thereafter forward or cause to be forwarded to the Placement Agent, any and all reports on Form D as are required.

 

 (d) The Company shall use its commercially reasonable efforts to qualify the Securities for sale under the securities laws of such jurisdictions in the United States as may be mutually agreed to by the Company and the Placement Agent, and the Company will make or cause to be made such applications and furnish information as may be required for such purposes, provided that the Company will not be required to qualify as a foreign corporation in any jurisdiction or execute a general consent to service of process.

 

 (e) Except for the instances explicitly stated in the Disclosure Materials, the Company shall not use any of the net proceeds of the Offering to repay indebtedness to officers, directors or stockholders of the Company without the prior written consent of the Placement Agent.

 

 (f) Except upon obtaining the prior written consent of the Placement Agent, the Company shall not, at any time prior to the earlier of the Final Closing or the Termination Date, except as contemplated by the Disclosure Materials (i) engage in or commit to engage in any transaction outside of the ordinary course of business, (ii) issue, agree to issue or set aside for issuance any securities (debt or equity) or any rights to acquire any such securities; provided that the Company shall be permitted to issue stock options, restricted stock and/or restricted stock units, including such as are convertible into, or exercisable for, shares of common stock to officers, directors and employees of the Company in the ordinary course or as permitted by the Purchase Agreement, (iii) incur, outside the ordinary course of business, any material indebtedness, (iv) dispose of any material assets, or (v) change its business or operations.

 

 (g) The Company shall pay all of its own expenses for accounting fees, legal fees, and other costs involved with the Offering, including without limitation, expenses incurred in connection with the preparation and printing of all Disclosure Materials and the issuance of the Securities. The Company will provide at its own expense such quantities of the Disclosure Materials and other documents and instruments relating to the Offering as the Placement Agent may reasonably request. All Blue-Sky filings related to this Offering shall be prepared by the Company’s counsel, at the Company’s expense, with copies of all filings to be promptly forwarded to the Placement Agent.

 

 (h) Until the earlier of (i) the Termination Date, and (ii) the Final Closing of the Offering, other than as may be required by applicable law or the rules and regulations of the OTC Markets or any securities exchange, the Company will not issue any press release except in the ordinary course of business consistent with past practices, grant any interview, or otherwise communicate with the media in any manner whatsoever with respect to the Offering without the Placement Agent’s prior consent, such consent not to be unreasonably withheld, conditioned or delayed.

 

 4. Compensation to Placement Agent.

 

 (a) In connection with the Offering, the Company will pay the Placement Agent a cash fee (the “Placement Agent’s Cash Fee”) equal to 12.5% of the aggregate gross proceeds of the Offering. The Placement Agent’s Cash Fee shall be paid at each Closing from the gross proceeds raised. In addition, the Company will reimburse the Placement Agent for all reasonable, documented marketing, travel and other out-of-pocket expenses incurred in connection with the Offering and pay the Placement Agent’s counsel fees in the amount of $40,000 (the “Legal Fees”), provided; however, any fees or expenses incurred in connection with the Offering for which the Company shall be responsible for reimbursement, including the Legal Fees, shall not exceed $50,000 collectively (the “Maximum Expense Amount”). The Maximum Expense Amount and the Legal Fees shall be paid at the initial Closing. The Placement Agent shall provide to the Company reasonably evidence of the incursion of such expenses.

 

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 (b) The Company shall also pay to the Placement Agent the Placement Agent’s Cash Fee to the extent any party first introduced to the Company by the Placement Agent (“Placement Agent Investors”) at any time prior to the date that is twelve (12) months after the applicable termination date of the Offering or the Final Closing (“Tail Period”), whichever is applicable, makes any investment into the Company through the acquisition of any securities of the Company from the Company. The names of Tail Investors shall be provided in writing by the Placement Agent to the Company upon written request following the termination date or the Final Closing, as the case may be (the “Tail Investor List”). The Company acknowledges and agrees that the Tail Investor List is proprietary to the Placement Agent, shall be maintained in strict confidence by the Company and those persons and entities on such list shall not be contacted by the Company without the Placement Agent’s prior written consent; provided, however, that such restrictions shall not apply to ordinary course stockholder communications by the Company to its stockholders. As used herein, the term “Placement Agent Investors” includes any party that is an affiliate of the specific party named in the Placement Agent Investor List.

 

 (c) In the event the Offering is not consummated because of any refusal, inability or failure on the part of the Company to perform any agreement herein or to comply with any provision hereof, the Placement Agent shall be entitled to be reimbursed for its reasonable accountable expenses incurred in connection with the Offering upon receipt of written accounting therefor in reasonable detail subject to the Maximum Expense Amount.

 

 (d) Joseph Gunnar & Co., LLC, as Placement Agent, shall be responsible for collecting and distributing all fees and other compensation due hereunder to and among the Placement Agent.

 

 5. Conditions of Placement Agent’s Obligations. The obligations of the Placement Agent hereunder to affect a Closing are subject to the fulfillment, at or before each Closing, of the following additional conditions:

 

 (a) Each of the representations and warranties made by the Company herein shall be true and correct at all times prior to and on each Closing date, except to the extent any such representation or warranty expressly speaks as of an earlier date, in which case such representation or warranty shall be true and correct as of such earlier date.

 

 (b) The Company shall have performed and complied in all material respects with all agreements, covenants and conditions required to be performed and complied with by them at or before the Closing.

 

 (c) The Disclosure Materials did not, and as of the date of any amendment or supplement thereto will not, include any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading.

 

 (d) The Company shall have obtained all consents, waivers and approvals required to be obtained by the Company in connection with the consummation of the transactions contemplated hereby.

 

 (e) No order suspending the use of the Disclosure Materials or enjoining the Offering shall have been issued, and no proceedings for that purpose or a similar purpose shall have been initiated or pending, or, to the Company’s knowledge, threatened.

 

 (f)
The Placement Agent shall have received a certificate of the Chief Executive Officer of the Company, dated as of the date of the
Closing, certifying, as to the fulfillment of the conditions set forth in subparagraphs (a), (b), (c), (d) and (e) above.

 

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 (g) The Company shall have delivered to the Placement Agent resolutions of the Company's Board of Directors approving this Agreement and the transactions and agreements contemplated by this Agreement and the Disclosure Materials, certified by the Chief Executive Officer of the Company.

 

 (h) At each Closing, the Company shall pay and issue to the Placement Agent the Placement Agent Cash Fee and Placement Agent expense reimbursement earned in such Closing.

 

 (i) At each Closing, the Company shall deliver to the Placement Agent a signed opinion of Anthony L.G., PLLC, counsel to the Company, dated as of the Closing Date, in form and substance fully satisfactory to the Placement Agent. Such opinion shall contain, among other items, opinions on matters relating to organization and good standing, corporate power and authority and exemption of the Offering from the registration requirements of the Securities Act.

 

 (j) All proceedings taken at or prior to any Closing in connection with the authorization, issuance and sale of the Securities will be fully satisfactory in form and substance to the Placement Agent and its counsel, and such counsel shall have been furnished with all such documents, certificates and opinions as it may request upon prior notice in connection with the transactions contemplated hereby.

 

 (k) The Company will make members of management and other employees available to the Placement Agent if the Placement Agent shall so request for purposes of satisfying the Placement Agent’s due diligence requirements and consummating the Offering. In addition, the Company shall make its Chief Executive Officer, Chief Financial Officer and other key management members available to attend a reasonable number of investor presentations, as recommended by the Placement Agent and shall commit such time and other resources as are reasonably necessary or appropriate to support the Placement Agent in their efforts to secure the reasonable and timely success of the Offering.

 

 6. Conditions of Company’s Obligations. The obligations of the Company hereunder to affect a Closing are subject to the fulfillment, at or before each Closing, of the following additional conditions or subject to the waiver of such condition or conditions by the Company:

 

 (a) Each of the representations and warranties made by the Placement Agent shall be true and correct at all times prior to and on each Closing date.

 

 (b) The Placement Agent shall have performed and complied in all material respects with all agreements, covenants and conditions required to be performed and complied with by it at or before the Closing.

 

 (c) The Company shall have received a certificate of an officer of the Placement Agent, dated as of the date of each Closing, certifying, as to the fulfillment of the conditions set forth in subparagraphs (a) and (b) above.

 

 (d) No order suspending the use of the Disclosure Materials or enjoining the Offering shall have been issued, and no proceedings for that purpose or a similar purpose shall have been initiated or pending, or, to the Company’s knowledge, be contemplated or threatened.

 

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 7. Right of First Refusal. For a period of twelve (12) months following the expiration of the Offering Period and subject to a closing of the Offering having been effected, in the event that the Company desires to raise additional capital in the form of debt, equity or otherwise (a “Prospective Financing”), the Placement Agent shall have the right of first refusal to act as Placement Agent with respect to any such Prospective Financing, and the Company shall provide written notice containing the terms of such Prospective Financing (the “ROFR Notice”) to the Placement Agent prior to effectuating any such transaction. The ROFR Notice shall specify all of the key terms of the Prospective Financing, including, but not limited to, the proposed investment amount, the proposed rate of interest, the proposed conversion price, the proposed term of the investment, the type and number of securities to be sold and any and all other relevant terms, each as applicable. Upon Placement Agent’s receipt of the ROFR Notice, Placement Agent shall have the exclusive right to act as Placement Agent in such Prospective Financing(s), upon the terms specified in the ROFR Notice, by sending written notice to the Company within seven (7) business days after Placement Agent’s receipt of the ROFR Notice. In the event Placement Agent fails to exercise its right of first refusal with respect to an ROFR Notice within the time set forth above, Placement Agent shall be deemed to have waived its right of first refusal with respect to such Prospective Financing, provided that it shall retain such right with respect to any future Prospective Financing. Notwithstanding anything contained herein, the Company shall not furnish any material non-public information concerning the Company without the Placement Agent’s prior written consent, and shall initially only indicate to the Placement Agent that the Company contemplates a financing.

 

 8. Indemnification.

 

 (a) The Company will: (i) indemnify and hold harmless the Placement Agent, its agents and its officers, directors, employees, selected dealers and each person, if any, who controls the Placement Agent within the meaning of the Section 15 of the Act or Section 20(a) of the Exchange Act and such selected dealers (each an “Indemnitee” or a “Placement Agent Party”) against, and pay or reimburse each Indemnitee for, any and all losses, claims, damages, liabilities or expenses whatsoever (or actions or proceedings or investigations in respect thereof), joint or several (which will, for all purposes of this Agreement, include, but not be limited to, all reasonable costs of defense and investigation and all reasonable attorneys’ fees, including appeals), to which any Indemnitee may become subject (x) under the Act or otherwise, in connection with the offer and sale of the Securities and (y) as a result of the breach of any representation, warranty or covenant made by the Company, regardless of whether such losses, claims, damages, liabilities or expenses shall result from any claim by any Indemnitee or by any third party; and (ii) reimburse each Indemnitee for any legal or other expenses reasonably incurred in connection with investigating or defending against any such loss, claim, action, proceeding or investigation; provided, however, that the Company will not be liable in any such case to the extent that any such claim, damage or liability is finally judicially determined to have resulted primarily from (A) an untrue statement or alleged untrue statement of a material fact made in the Disclosure Materials, or an omission or alleged omission to state therein a material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading, made solely in reliance upon and in conformity with written information furnished to the Company by the Placement Agent specifically for use in the Disclosure Materials, (B) any violations by the Placement Agent of the Act, state securities laws or any rules or regulations of FINRA, which is not directly caused from a violation thereof by the Company or any of its affiliates or (C) the Placement Agent’s willful misconduct or recklessness. In addition to the foregoing agreement to indemnify and reimburse, the Company will indemnify and hold harmless each Indemnitee against any and all losses, claims, damages, liabilities or expenses whatsoever (or actions or proceedings or investigations in respect thereof), joint or several (which shall, for all purposes of this Agreement, include, but not be limited to, all reasonable costs of defense and investigation and all reasonable attorneys' fees, including appeals) to which any Indemnitee may become subject insofar as such costs, expenses, losses, claims, damages or liabilities arise out of or are based upon the claim of any person or entity that he or it is entitled to broker’s or finder’s fees from any Indemnitee in connection with the Offering, other than fees due to the Placement Agent. The foregoing indemnity agreements will be in addition to any liability the Company may otherwise have.

 

 (b) The Placement Agent will indemnify and hold harmless the Company, its officers, directors, and each person, if any, who controls such entity within the meaning of Section 15 of the Act or Section 20(a) of the Exchange Act against, and pay or reimburse any such person for, any and all losses, claims, damages, liabilities or expenses whatsoever (or actions, proceedings or investigations in respect thereof) to which the Company or any such person may become subject under the Act or otherwise, whether such losses, claims, damages, liabilities or expenses shall result from any claim of the Company or any such person who controls the Company within the meaning of the Act or by any third party, but only to the extent that such losses, claims, damages or liabilities results from (i) an untrue statement or alleged untrue statement of a material fact made in the Disclosure Materials, or an omission or alleged omission to state therein a material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading, made in reliance upon and in conformity with written information furnished to the Company by the Placement Agent, specifically for use in the Disclosure Materials, (ii) as a result of the breach of any representation, warranty or covenant made by the Placement Agent, regardless of whether such losses, claims, damages, liabilities or expenses shall result from any claim by any third party, or (iii) any violations by the Placement Agent of the Act or state securities laws which does not result from a violation thereof by the Company or any of its affiliates. The Placement Agent will reimburse the Company or any such person for any legal or other expenses reasonably incurred in connection with investigating or defending against any such loss, claim, damage, liability or action, proceeding or investigation to which such indemnity obligation applies. The foregoing indemnity agreements are in addition to any liability which the Placement Agent may otherwise have. Notwithstanding the foregoing, in no event shall Placement Agent’s indemnification obligation hereunder exceeds the amount of Cash Fees actually received by the Placement Agent hereunder.

 

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 (c) Promptly after receipt by an indemnified party under this Section 8 of notice of the commencement of any action, claim, proceeding or investigation (the “Action”), such indemnified party, if a claim in respect thereof is to be made against the indemnifying party under this Section 8, will notify the indemnifying party of the commencement thereof, but the omission to so notify the indemnifying party will not relieve it from any liability that it may have to any indemnified party under this Section 8 unless the indemnifying party has been substantially prejudiced by such omission. The indemnifying party will be entitled to participate in and, to the extent that it may wish, jointly with any other indemnifying party, to assume the defense thereof subject to the provisions herein stated, with counsel reasonably satisfactory to such indemnified party. The indemnified party will have the right to employ separate counsel in any such Action and to participate in the defense thereof, but the fees and expenses of such counsel will not be at the expense of the indemnifying party if the indemnifying party has assumed the defense of the Action with counsel reasonably satisfactory to the indemnified party, provided, however, that if counsel selected to represent the indemnified party shall have concluded that there may be a conflict of interest which prevents it from representing the indemnified party and the indemnifying party, then the indemnified party may retain additional counsel to represent it and in such case the reasonable fees and expenses of such counsel in connection with any such participation or defenses shall be paid by the indemnifying party. No settlement of any Action against an indemnified party will be made without the consent of the indemnifying party and the indemnified party, which consent shall not be unreasonably withheld, delayed or conditioned in light of all factors of importance to such party, and no indemnifying party shall be liable to indemnify any person for any settlement of any such claim effected without such indemnifying party’s consent.

 

 9. Contribution. To provide for just and equitable contribution, if: (i) an indemnified party makes a claim for indemnification pursuant to Section 8 hereof and it is finally determined, by a judgment, order or decree not subject to further appeal that such claims for indemnification may not be enforced, even though this Agreement expressly provides for indemnification in such case; or (ii) any indemnified or indemnifying party seeks contribution under the Act, the Exchange Act, or otherwise, then each indemnifying party shall contribute to such amount paid or payable by such indemnified party in such proportion as is appropriate to reflect not only such relative benefits but also the relative fault of the Company on the one hand and the Placement Agent on the other in connection with the statements or omissions which resulted in such losses, claims, damages, liabilities or expenses (or actions in respect thereof), as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Placement Agent on the other shall be deemed to be in the same proportion as the total net proceeds from the Offering (before deducting expenses) received by the Company bear to the total Placement Agent’s Cash Fees received by the Placement Agent. The relative fault, in the case of an untrue statement, alleged untrue statement, omission or alleged omission will be determined by, among other things, whether such statement, alleged statement, omission or alleged omission relates to information supplied by the Company or by the Placement Agent, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement, alleged statement, omission or alleged omission. The Company and the Placement Agent agree that it would be unjust and inequitable if the respective obligations of the Company and the Placement Agent for contribution were determined by pro rata allocation of the aggregate losses, liabilities, claims, damages and expenses or by any other method or allocation that does not reflect the equitable considerations referred to in this Section 9. No person guilty of a fraudulent misrepresentation (within the meaning of Section 10(f) of the Act) will be entitled to contribution from any person who is not guilty of such fraudulent misrepresentation. For purposes of this Section 9, each person, if any, who controls the Placement Agent within the meaning of the Act will have the same rights to contribution as the Placement Agent, and each person, if any, who controls the Company within the meaning of the Act will have the same rights to contribution as the Company, subject in each case to the provisions of this Section 9. Anything in this Section 9 to the contrary notwithstanding, no party will be liable for contribution with respect to the settlement of any claim or action effected without its written consent. This Section 9 is intended to supersede, to the extent permitted by law, any right to contribution under the Act, the Exchange Act or otherwise available.

 

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 10. Miscellaneous.

 

 (a) Survival. Any termination of the Offering without consummation thereof shall be without obligation on the part of any party except the Company’s payment of fees and expenses pursuant to Sections 3(g), 4(a) and 4(b) hereof, the right of first refusal provision provided in Section 7, the indemnification provisions provided in Section 8 hereof, the contribution provided in Section 9 hereof shall survive any termination. In addition, the right of first refusal provision provided in Section 7, the provisions in Section 8 regarding indemnification and Section 9 regarding contribution shall survive the Final Closing.

 

 (b) Representations, Warranties and Covenants to Survive Delivery. The respective representations, warranties, indemnities, agreements, covenants and other statements of the Company as of the date hereof shall survive execution of this Agreement and delivery of the Securities and the termination of this Agreement for a period of two (2) years.

 

 (c) No Other Beneficiaries. This Agreement is intended for the sole and exclusive benefit of the parties hereto and their respective successors and controlling persons, and no other person, firm or corporation shall have any third-party beneficiary or other rights hereunder. This Agreement may not be assigned without the prior written consent of the parties hereto.

 

 (d) Governing Law. This Agreement, and all claims arising in whole or in part out of relatedto, based upon, or in connection herewith or the subject matter hereof will be governed by, construed and enforced in accordance with the laws of the State of New York, without giving effect to any choice or conflict of law provision or rule that would cause the application of the laws of any other jurisdiction.

 

 (e) Consent to Jurisdiction. Each of the parties to this Agreement irrevocably (a) submits to the exclusive jurisdiction of the state or federal courts located in the State of New York for the purpose of any and all actions arising in whole or in part out of, related to, based upon or in connection with this Agreement or the subject matter hereof; (b) waives to the extent not prohibited by applicable legal requirements, and agrees not to assert, by way of motion, as a defense or otherwise, in any such action, any claim that it, they are not subject personally to the jurisdiction of the above-named courts, that their property is exempt or immune from attachment or execution, that any such action brought in one of the above-named courts should be dismissed on grounds of improper venue or forum non conveniens, should be transferred to any court other than one of the above-named courts, or should be stayed by reason of the pendency of some other proceeding in any other court other than one of the above-named courts, or that this Agreement or the subject matter hereof may not be enforced in or by such court; (c) agrees not to commence any such Action other than before one of the above-named courts nor to make any motion or take any other action seeking or intending to cause the transfer or removal of any such action to any court other than one of the above-named courts whether on the grounds of inconvenient forum or otherwise; (d) consents to service of process in any such action in any manner permitted by the laws of the State of New York; (e) agrees that service of process made in accordance withclause (d) or made pursuant to subsection 10(h) below will constitute good and valid service of process in any such action; and (f) waives and agrees not to assert (by way of motion, as a defense, or otherwise) in any such action any claim that service of process made in accordance with clause (d) or clause (e) does not constitute good and valid service of process.

 

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 (f) Waiver of Jury Trial. TO THE EXTENT NOT PROHIBITED BY APPLICABLE LAW WHICH CANNOT BE WAIVED, EACH OF THE PARTIES HEREBY WAIVES, AND COVENANTS THAT IT, THEY SHALL NOT ASSERT (WHETHER AS PLAINTIFF, DEFENDANT OR OTHERWISE) ANY RIGHT TO TRIAL BY JURY IN ANY FORUM IN ANY ACTION OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS AGREEMENT OR ANY DOCUMENT OR AGREEMENT CONTEMPLATED HEREBY. ANY PARTY MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS SECTION 10(F) WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF EACH SUCH PARTY TO THE WAIVER OF ITS RIGHT TO TRIAL BY JURY. Each of the parties acknowledges that they have been informed by each other Party that the provisions of Section 10(e) and this Section 10(f) constitute a material inducement upon which such Party is relying and will rely in entering into this Agreement, and each such Party agreesthat any breach by such Party of any of the provisions of Section 10(e) or this Section 10(f) would constitute a material breach of this Agreement.

 

 (g) Counterparts. This Agreement may be executed in one or more counterparts, and by the different parties hereto in separate counterparts, each of which shall be deemed to be an original, but all of which taken together shall constitute one and the same agreement, and shall become effective when one or more counterparts has been signed by each of the parties hereto and delivered to each of the other parties hereto. Delivery of a signed counterpart of this Agreement by email/pdf transmission shall constitute valid and sufficient delivery thereof.

 

 (h) Notices. All notices, requests, demands and other communications which are required or may be given hereunder shall be in writing and shall be deemed to have been duly given when delivered personally or by email with return receipt requested and received or five (5) days after being sent by registered or certified mail, return receipt requested, postage prepaid. All notices shall be made to the parties at the addresses designated below or at such other or different addresses which a party may subsequently provide with notice thereof, and to their respective legal counsel, as follows:

 

If to the Placement Agent, to:

 

Joseph Gunnar & Co., LLC 

30 Broad Street, 11th
floor

 New York, NY 10004

Attention: Stephan A Stein, President

Email: SStein@jgunnar.com

 

with a copy to:

 

Lucosky Brookman LLP

101 Wood Avenue South

Woodbridge,
NJ 08830

Attention: Seth Brookman

Email: sbrookman@lucbro.com

 

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or to such other person or address as the Placement Agent
shall furnish to the Company in writing.

 

If to the Company, to:

 

Sysorex, Inc.

13880 Dulles Corner Lane #175

Herndon, VA 20171

Attn: Wayne Wasserberg, CEO

Email:
wayne@ttmdigitalassets.com

 

with a copy to:

 

Anthony L.G., PLLC

625 N. Flagler Drive, Suite 600

West Palm Beach, FL 33401

Attn: John Cacomanolis

Email: JCacomanolis@anthonypllc.com

 

or to such other person or address as the Company shall
furnish to the Placement Agent in writing.

 

 (i) Entire Agreement. This Agreement constitutes the entire agreement of the parties with respect to the matters herein referred and this Agreement has no bearing or effect on any prior agreements entered into by the parties hereto. Neither this Agreement nor any term hereof may be changed, waived or terminated orally, but only by an instrument in writing signed by the party against which enforcement of the change, waiver or termination is sought. In addition, each of the parties to this Agreement expressly agrees and acknowledges that it has been represented by counsel in connection with the negotiation and execution of this Agreement. Each party to this Agreement further expressly agrees and acknowledges that it is not entering into this Agreement in reliance upon any representations, promises or assurance other than those expressly set forth in this Agreement.

 

 (j) No Commitment. The execution of this Agreement does not constitute a commitment by the Placement Agent or the Company to consummate any transaction contemplated hereunder and there can be no assurance that the Placement Agent will be able to locate any third parties to provide financing to the Company.

 

 (k) Severability. If any term or other provision of this Agreement isinvalid, illegal or incapable of being enforced by any rule of law or under public policy, all other conditions and provisions of this Agreement will nevertheless remain in full force and effect. Upon such determination that any term or other provision is invalid, illegal or incapable of being enforced, the parties to this Agreement will negotiate in good faith to modify this Agreement so as to effect the original intent of the parties as closely as possible to the end that the transactions contemplated in this Agreement are fulfilled in accordance with the terms in this Agreement and the Purchase Agreement to the greatest extent possible.

 

[SIGNATURE PAGE FOLLOWS]

 

    Page 11 of 12

     

    

 

If the foregoing accurately reflects our understanding,
please so indicate by signing in the space provided below.

 

	 	Sincerely,
	 	 
	 	JOSEPH GUNNAR & CO., LLC.
	 	 
	 	By: 	/s/ Stephan A. Stein
	 	 	Stephan A. Stein President

 

Agreed to and accepted as of 

the date first set forth above.

 

	SYSOREX, INC.	 
	 	 
	By:	/s/
    Wayne Wasserberg	 
	 	Wayne Wasserberg 

Chief Executive Officer	 

 

 

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