Document:

rrcrt_ex411

 

EXHIBIT 4.11

 

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

 

THIS WARRANT IS NOT EXERCISABLE PRIOR TO [________________] [DATE
THAT IS SIX MONTHS FROM THE EFFECTIVE DATE OF THE REGISTRATION
STATEMENT(DEFINED BELOW)].
VOID AFTER 5:00 P.M., EASTERN TIME, [___________________] [DATE
THAT IS FIVE YEARS FROM THE EFFECTIVE DATE OF THE REGISTRATION
STATEMENT].

 

 

COMMON STOCK PURCHASE WARRANT

 

 RECRUITER.COM GROUP, INC.

 

	
Warrant Shares:
36,364 

	
Initial Exercise
Date: ______, 2021 

 

BACKGROUND

 

1. Joseph Gunnar & Co. LLC (“Gunnar”)
acted as placement agent in a convertible note and warrant
financing of the Company (as defined below) which was consummated
between May 2020 and June 2020 (the “Financing”)
and is acting as the sole book-running manager of the
Company’s public offering (the “Public
Offering”) as described
in a registration statement on Form S-1 (No. 333-249208) (the “Registration
Statement”).

 

2. In
connection with the Financing, Gunnar was entitled to receive
certain placement agent warrants to purchase shares of the
Company’s common stock (“Placement Agent
Warrants”) as more particularly described in that
certain placement agency agreement dated May 20, 2020 (the
“PAA”).

 

3.
Pursuant to a certain amendment agreement dated June __, 2021, the
Company and Gunnar have agreed to amend the provisions with respect
to the issuance of the Placement Agent Warrants contained in the
PAA

 

 

1

 

 

4. The
issuance of this Common Stock Purchase Warrant (and other warrants
in identical form and substance, other than number of Warrant
Shares contained in each such warrant, which when aggregated shall
equal 36,364 Warrant Shares) shall serve as the Placement Agent
Warrants issuable in satisfaction of the Company’s obligation
to issue Placement Agent Warrants to Gunnar under the PAA, as
amended.

 

THIS COMMON STOCK PURCHASE WARRANT (the “Warrant”)
certifies that, for value received, Joseph Gunnar & Co., LLC or
its assigns (the “Holder”), is
entitled, upon the terms and subject to the limitations on exercise
and the conditions hereinafter set forth, at any time on or after
____________ [DATE THAT IS SIX MONTHS
FROM THE EFFECTIVE DATE OF THE REGISTRATION STATEMENT) (the
“Initial Exercise
Date”) and on or prior to 5:00 p.m. (New York City
time) on ________, 2025 [DATE THAT IS
FIVE YEARS FROM THE EFFECTIVE DATE OF THE REGISTRATION
STATEMENT] (the “Termination Date”) but
not thereafter, to subscribe for and purchase from Recruiter.com
Group, Inc., a Nevada
corporation (the “Company”), up
to 36,694 shares of the Company’s common stock, $0.0001 par
value (as subject to adjustment hereunder, the “Warrant
Shares”) as described herein. This Warrant is issued
pursuant to section 5(a) of that certain Placement Agent Agreement
dated May 20, 2020, by and between the Company and Joseph Gunnar
& Co. LLC, as amended (the “Placement Agent
Agreement”). The purchase price of one share of Common
Stock under this Warrant shall be equal to the Exercise Price, as
defined in Section 2(b).

 

Section 1.   
Definitions.
Capitalized terms used and not otherwise defined herein shall have
the meanings set forth in that certain Securities Purchase
Agreement dated as of May 28, 2020 among the Company and the
investors listed on the Schedule of Investors attached thereto (the
“Purchase
Agreement.”).

 

Section 2.   
Exercise.

 

a)

Exercise of Warrant. Exercise
of the purchase rights represented by this Warrant may be made, in
whole or in part, at any time or times on or after the Initial
Exercise Date and on or before the Termination Date by delivery to
the Company of a duly executed facsimile copy or PDF copy submitted
by e-mail (or e-mail attachment) of the Notice of Exercise in the
form annexed hereto (the “Notice of Exercise”).
Within the earlier of (i) two (2) Trading Days and (ii) the number
of Trading Days comprising the Standard Settlement Period (as
defined in Section 2(d)(i)) following the date of exercise as
aforesaid, the Holder shall deliver to the Company the aggregate
Exercise Price for the shares specified in the applicable Notice of
Exercise by wire transfer or cashier’s check drawn on a
United States bank unless the cashless exercise procedure specified
in Section 2(c) is specified in the applicable Notice of
Exercise. No
ink-original Notice of Exercise shall be required, nor shall any
medallion guarantee (or other type of guarantee or notarization) of
any Notice of Exercise be required. Notwithstanding anything herein
to the contrary, the Holder shall not be required to physically
surrender this Warrant to the Company until the Holder has
purchased all of the Warrant Shares available hereunder and the
Warrant has been exercised in full, in which case, the Holder shall
surrender this Warrant to the Company for cancellation within three
(3) Trading Days of the date on which the final Notice of Exercise
is delivered to the Company. Partial exercises of this Warrant
resulting in purchases of a portion of the total number of Warrant
Shares available hereunder shall have the effect of lowering the
outstanding number of Warrant Shares purchasable hereunder in an
amount equal to the applicable number of Warrant Shares purchased.
The Holder and the Company shall maintain records showing the
number of Warrant Shares purchased and the date of such purchases.
The Company shall deliver any objection to any Notice of Exercise
within one (1) Business Day of receipt of such notice. The Holder and any assignee, by acceptance of
this Warrant, acknowledge and agree that, by reason of the
provisions of this paragraph, following the purchase of a portion
of the Warrant Shares hereunder, the number of Warrant Shares
available for purchase hereunder at any given time may be less than
the amount stated on the face hereof.

 

 

2

 

 

b) Exercise Price. The exercise
price per share of Common Stock under this Warrant shall be
$[Dollar figure that is 125%
of the public offering price of the units sold in the
Offering], subject to
adjustment hereunder (the “Exercise
Price”).

 

c) Cashless Exercise. This Warrant
may also be exercised, in whole or in part, at such time by means
of a “cashless exercise” in which the Holder shall be
entitled to receive a number of Warrant Shares equal to the
quotient obtained by dividing [(A-B) (X)] by (A),
where:

 

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

 

(B) =
the Exercise Price of this Warrant, as adjusted hereunder;
and

 

(X) =
the number of Warrant Shares that would be issuable upon exercise
of this Warrant in accordance with the terms of this Warrant if
such exercise were by means of a cash exercise rather than a
cashless exercise.

 

 

3

 

 

If Warrant Shares are issued in such a cashless exercise, the
parties acknowledge and agree that in accordance with Section
3(a)(9) of the Securities Act, the Warrant Shares shall take on the
characteristics of the Warrants being exercised, and the holding
period of the Warrant Shares being issued may be tacked on to the
holding period of this Warrant.  The Company agrees not
to take any position contrary to this Section 2(c).

 

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

 

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

 

 

4

 

 

Notwithstanding
anything herein to the contrary, on the Termination Date, this
Warrant shall be automatically exercised via cashless exercise
pursuant to this Section 2(c).

 

d)  
Mechanics of
Exercise.

 

i. Delivery of Warrant Shares Upon
Exercise. The Company shall cause the Warrant Shares
purchased hereunder to be transmitted by the Transfer Agent to the
Holder by crediting the account of the Holder’s or its
designee’s balance account with The Depository Trust Company
through its Deposit or Withdrawal at Custodian system
(“DWAC”) if the Company is
then a participant in such system and either (A) there is an
effective registration statement permitting the issuance of the
Warrant Shares to or resale of the Warrant Shares by the Holder or
(B) the Warrant Shares are eligible for resale by the Holder
without volume or manner-of-sale limitations pursuant to Rule 144
(assuming cashless exercise of the Warrants), and otherwise by
physical delivery of a certificate, registered in the
Company’s share register in the name of the Holder or its
designee, for the number of Warrant Shares to which the Holder is
entitled pursuant to such exercise to the address specified by the
Holder in the Notice of Exercise by the date that is the earliest
of (i) two (2) Trading Days after the delivery to the Company of
the Notice of Exercise, (ii) one (1) Trading Day after delivery of
the aggregate Exercise Price to the Company and (iii) the number of
Trading Days comprising the Standard Settlement Period after the
delivery to the Company of the Notice of Exercise (such date, the
“Warrant Share
Delivery Date”). Upon delivery of the Notice of
Exercise, the Holder shall be deemed for all corporate (but not
Rule 144) purposes to have become the holder of record of the
Warrant Shares with respect to which this Warrant has been
exercised, irrespective of the date of delivery of the Warrant
Shares, provided that payment of the aggregate Exercise Price
(other than in the case of a cashless exercise) is received within
the earlier of (i) two (2) Trading Days and (ii) the number of
Trading Days comprising the Standard Settlement Period following
delivery of the Notice of Exercise. If the Company fails for any
reason to deliver to the Holder the Warrant Shares subject to a
Notice of Exercise by the Warrant Share Delivery Date, the Company
shall pay to the Holder, in cash, as liquidated damages and not as
a penalty, for each $1,000 of Warrant Shares subject to such
exercise (based on the VWAP of the Common Stock on the date of the
applicable Notice of Exercise), $10 per Trading Day (increasing to
$20 per Trading Day on the fifth (5th) Trading Day after
such liquidated damages begin to accrue) for each Trading Day after
such Warrant Share Delivery Date until such Warrant Shares are
delivered or Holder rescinds such exercise. The Company agrees to
maintain a transfer agent that is a participant in the FAST program
so long as this Warrant remains outstanding and exercisable. As
used herein, “Standard Settlement
Period” means the standard settlement period,
expressed in a number of Trading Days, on the Company’s
primary Trading Market with respect to the Common Stock as in
effect on the date of delivery of the Notice of
Exercise.

 

 

5

 

 

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

 

iii. Rescission
Rights. If the Company fails to cause the Transfer Agent to
transmit to the Holder the Warrant Shares pursuant to Section
2(d)(i) by the Warrant Share Delivery Date, then the Holder will
have the right to rescind such exercise.

 

iv. Compensation for Buy-In on Failure to
Timely Deliver Warrant Shares Upon Exercise. In addition to
any other rights available to the Holder, if the Company fails to
cause the Transfer Agent to transmit to the Holder the Warrant
Shares in accordance with the provisions of Section 2(d)(i) above
pursuant to an exercise on or before the Warrant Share Delivery
Date, and if after such date the Holder is required by its broker
to purchase (in an open market transaction or otherwise) or the
Holder’s brokerage firm otherwise purchases, shares of Common
Stock to deliver in satisfaction of a sale by the Holder of the
Warrant Shares which the Holder anticipated receiving upon such
exercise (a “Buy-In”), then the
Company shall (A) pay in cash to the Holder the amount, if any, by
which (x) the Holder’s total purchase price (including
brokerage commissions, if any) for the shares of Common Stock so
purchased exceeds (y) the product of (1) the number of Warrant
Shares that the Company was required to deliver to the Holder in
connection with the exercise at issue times (2) the price at which
the sell order giving rise to such purchase obligation was
executed, and (B) at the option of the Holder, either reinstate the
portion of the Warrant and equivalent number of Warrant Shares for
which such exercise was not honored (in which case such exercise
shall be deemed rescinded) or deliver to the Holder the number of
shares of Common Stock that would have been issued had the Company
timely complied with its exercise and delivery obligations
hereunder. For example, if the Holder purchases Common Stock having
a total purchase price of $11,000 to cover a Buy-In with respect to
an attempted exercise of shares of Common Stock with an aggregate
sale price giving rise to such purchase obligation of $10,000,
under clause (A) of the immediately preceding sentence the Company
shall be required to pay the Holder $1,000. The Holder shall
provide the Company written notice indicating the amounts payable
to the Holder in respect of the Buy-In and, upon request of the
Company, evidence of the amount of such loss. Nothing herein shall
limit a Holder’s right to pursue any other remedies available
to it hereunder, at law or in equity including, without limitation,
a decree of specific performance and/or injunctive relief with
respect to the Company’s failure to timely deliver shares of
Common Stock upon exercise of the Warrant as required pursuant to
the terms hereof.

 

 

6

 

 

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

 

vi. Charges, Taxes and Expenses.
Issuance of Warrant Shares shall be made without charge to the
Holder for any issue or transfer tax or other incidental expense in
respect of the issuance of such Warrant Shares, all of which taxes
and expenses shall be paid by the Company, and such Warrant Shares
shall be issued in the name of the Holder or in such name or names
as may be directed by the Holder; provided, however, that in the event that
Warrant Shares are to be issued in a name other than the name of
the Holder, this Warrant when surrendered for exercise shall be
accompanied by the Assignment Form attached hereto duly executed by
the Holder and the Company may require, as a condition thereto, the
payment of a sum sufficient to reimburse it for any transfer tax
incidental thereto. The Company shall pay all Transfer Agent fees
required for same-day processing of any Notice of Exercise and all
fees to the Depository Trust Company (or another established
clearing corporation performing similar functions) required for
same-day electronic delivery of the Warrant Shares.

 

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

 

 

7

 

 

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

 

Section 3.   
Certain
Adjustments.

 

a) Stock Dividends and Splits. If
the Company, at any time while this Warrant is outstanding: (i)
pays a stock dividend or otherwise makes a distribution or
distributions on shares of its Common Stock or any other equity or
equity equivalent securities payable in shares of Common Stock
(which, for avoidance of doubt, shall not include any shares of
Common Stock issued by the Company upon exercise of this Warrant),
(ii) subdivides outstanding shares of Common Stock into a larger
number of shares, (iii) combines (including by way of reverse stock
split) outstanding shares of Common Stock into a smaller number of
shares or (iv) issues by reclassification of shares of the Common
Stock any shares of capital stock of the Company, then in each case
the Exercise Price shall be multiplied by a fraction of which the
numerator shall be the number of shares of Common Stock (excluding
treasury shares, if any) outstanding immediately before such event
and of which the denominator shall be the number of shares of
Common Stock outstanding immediately after such event, and the
number of shares issuable upon exercise of this Warrant shall be
proportionately adjusted such that the aggregate Exercise Price of
this Warrant shall remain unchanged. Any adjustment made pursuant
to this Section 3(a) shall become effective immediately after the
record date for the determination of stockholders entitled to
receive such dividend or distribution and shall become effective
immediately after the effective date in the case of a subdivision,
combination or re-classification.

 

b) Intentionally Left
Blank.

 

c) Subsequent Rights Offerings.
In addition to any adjustments
pursuant to Section 3(a) above, if at any time the Company grants,
issues or sells any Common Stock Equivalents or rights to purchase
stock, warrants, securities or other property pro rata to the
record holders of any class of shares of Common Stock (the
“Purchase
Rights”), then the Holder
will be entitled to acquire, upon the terms applicable to such
Purchase Rights, the aggregate Purchase Rights which the Holder
could have acquired if the Holder had held the number of shares of
Common Stock acquirable upon complete exercise of this Warrant
(without regard to any limitations on exercise hereof, including
without limitation, the Beneficial Ownership Limitation)
immediately before the date on which a record is taken for the
grant, issuance or sale of such Purchase Rights, or, if no such
record is taken, the date as of which the record holders of shares
of Common Stock are to be determined for the grant, issue or sale
of such Purchase Rights (provided,
however,
that, to the extent that the Holder’s right to participate in
any such Purchase Right would result in the Holder exceeding the
Beneficial Ownership Limitation, then the Holder shall not be
entitled to participate in such Purchase Right to such extent (or
beneficial ownership of such shares of Common Stock as a result of
such Purchase Right to such extent) and such Purchase Right to such
extent shall be held in abeyance for the Holder until such time, if
ever, as its right thereto would not result in the Holder exceeding
the Beneficial Ownership Limitation).

 

 

8

 

 

d) Pro
Rata Distributions. During such time as this Warrant is
outstanding, if the Company shall declare or make any dividend or
other distribution of its assets (or rights to acquire its assets)
to holders of shares of Common Stock, by way of return of capital
or otherwise (including, without limitation, any distribution of
cash, stock or other securities, property or options by way of a
dividend, spin off, reclassification, corporate rearrangement,
scheme of arrangement or other similar transaction) (a
“Distribution”), at any
time after the issuance of this Warrant, then, in each such case,
the Holder shall be entitled to participate in such Distribution to
the same extent that the Holder would have participated therein if
the Holder had held the number of shares of Common Stock acquirable
upon complete exercise of this Warrant (without regard to any
limitations on exercise hereof, including without limitation, the
Beneficial Ownership Limitation) immediately before the date of
which a record is taken for such Distribution, or, if no such
record is taken, the date as of which the record holders of shares
of Common Stock are to be determined for the participation in such
Distribution (provided, however, that, to the extent
that the Holder's right to participate in any such Distribution
would result in the Holder exceeding the Beneficial Ownership
Limitation, then the Holder shall not be entitled to participate in
such Distribution to such extent (or in the beneficial ownership of
any shares of Common Stock as a result of such Distribution to such
extent) and the portion of such Distribution shall be held in
abeyance for the benefit of the Holder until such time, if ever, as
its right thereto would not result in the Holder exceeding the
Beneficial Ownership Limitation).

 

e) Fundamental Transaction. If, at
any time while this Warrant is outstanding, (i) the Company,
directly or indirectly, in one or more related transactions effects
any merger or consolidation of the Company with or into another
Person, (ii) the Company, directly or indirectly, effects any sale,
lease, license, assignment, transfer, conveyance or other
disposition of all or substantially all of its assets in one or a
series of related transactions, (iii) any, direct or indirect,
purchase offer, tender offer or exchange offer (whether by the
Company or another Person) is completed pursuant to which holders
of Common Stock are permitted to sell, tender or exchange their
shares for other securities, cash or property and has been accepted
by the holders of 50% or more of the outstanding Common Stock, (iv)
the Company, directly or indirectly, in one or more related
transactions effects any reclassification, reorganization or
recapitalization of the Common Stock or any compulsory share
exchange pursuant to which the Common Stock is effectively
converted into or exchanged for other securities, cash or property,
or (v) the Company, directly or indirectly, in one or more related
transactions consummates a stock or share purchase agreement or
other business combination (including, without limitation, a
reorganization, recapitalization, spin-off, merger or scheme of
arrangement) with another Person or group of Persons whereby such
other Person or group acquires more than 50% of the outstanding
shares of Common Stock (not including any shares of Common Stock
held by the other Person or other Persons making or party to, or
associated or affiliated with the other Persons making or party to,
such stock or share purchase agreement or other business
combination) (each a “Fundamental
Transaction”), then, upon any subsequent exercise of
this Warrant, the Holder shall have the right to receive, for each
Warrant Share that would have been issuable upon such exercise
immediately prior to the occurrence of such Fundamental
Transaction, at the option of the Holder (without regard to any
limitation in Section 2(e) on the exercise of this Warrant), the
number of shares of Common Stock of the successor or acquiring
corporation or of the Company, if it is the surviving corporation,
and any additional consideration (the “Alternate Consideration”)
receivable as a result of such Fundamental Transaction by a holder
of the number of shares of Common Stock for which this Warrant is
exercisable immediately prior to such Fundamental Transaction
(without regard to any limitation in Section 2(e) on the exercise
of this Warrant). For purposes of any such exercise, the
determination of the Exercise Price shall be appropriately adjusted
to apply to such Alternate Consideration based on the amount of
Alternate Consideration issuable in respect of one share of Common
Stock in such Fundamental Transaction, and the Company shall
apportion the Exercise Price among the Alternate Consideration in a
reasonable manner reflecting the relative value of any different
components of the Alternate Consideration. If holders of Common
Stock are given any choice as to the securities, cash or property
to be received in a Fundamental Transaction, then the Holder shall
be given the same choice as to the Alternate Consideration it
receives upon any exercise of this Warrant following such
Fundamental Transaction.  The Company shall
cause any successor entity in a Fundamental Transaction in which
the Company is not the survivor (the “Successor Entity”) to
assume in writing all of the obligations of the Company under this
Warrant and the other Transaction Documents in accordance with the
provisions of this Section 3(e) pursuant to written agreements in
form and substance reasonably satisfactory to the Holder and
approved by the Holder (without unreasonable delay) prior to such
Fundamental Transaction and shall, at the option of the Holder,
deliver to the Holder in exchange for this Warrant a security of
the Successor Entity evidenced by a written instrument
substantially similar in form and substance to this Warrant which
is exercisable for a corresponding number of shares of capital
stock of such Successor Entity (or its parent entity) equivalent to
the shares of Common Stock acquirable and receivable upon exercise
of this Warrant (without regard to any limitations on the exercise
of this Warrant) prior to such Fundamental Transaction, and with an
exercise price which applies the exercise price hereunder to such
shares of capital stock (but taking into account the relative value
of the shares of Common Stock pursuant to such Fundamental
Transaction and the value of such shares of capital stock, such
number of shares of capital stock and such exercise price being for
the purpose of protecting the economic value of this Warrant
immediately prior to the consummation of such Fundamental
Transaction), and which is reasonably satisfactory in form and
substance to the Holder. Upon the occurrence of any such
Fundamental Transaction, the Successor Entity shall succeed to, and
be substituted for (so that from and after the date of such
Fundamental Transaction, the provisions of this Warrant and the
other Transaction Documents referring to the “Company”
shall refer instead to the Successor Entity), and may exercise
every right and power of the Company and shall assume all of the
obligations of the Company under this Warrant and the other
Transaction Documents with the same effect as if such Successor
Entity had been named as the Company herein.

 

 

9

 

 

f) Intentionally
Omitted.

 

g) Calculations. All calculations
under this Section 3 shall be made to the nearest cent or the
nearest 1/100th of a share, as the case may be. For purposes of
this Section 3, the number of shares of Common Stock deemed to be
issued and outstanding as of a given date shall be the sum of the
number of shares of Common Stock (excluding treasury shares, if
any) issued and outstanding.

 

h) Notice to Holder.

 

i. Adjustment to Exercise Price.
Whenever the Exercise Price is adjusted pursuant to any provision
of this Section 3, the Company shall promptly deliver to the Holder
by facsimile or email a notice setting forth the Exercise Price
after such adjustment and any resulting adjustment to the number of
Warrant Shares and setting forth a brief statement of the facts
requiring such adjustment.

 

ii. Notice to Allow Exercise by
Holder. If (A) the Company shall declare a dividend (or any
other distribution in whatever form) on the Common Stock, (B) the
Company shall declare a special nonrecurring cash dividend on or a
redemption of the Common Stock, (C) the Company shall authorize the
granting to all holders of the Common Stock rights or warrants to
subscribe for or purchase any shares of capital stock of any class
or of any rights, (D) the approval of any stockholders of the
Company shall be required in connection with any reclassification
of the Common Stock, any consolidation or merger to which the
Company is a party, any sale or transfer of all or substantially
all of the assets of the Company, or any compulsory share exchange
whereby the Common Stock is converted into other securities, cash
or property, or (E) the Company shall authorize the voluntary or
involuntary dissolution, liquidation or winding up of the affairs
of the Company, then, in each case, the Company shall cause to be
delivered by facsimile or email to the Holder at its last facsimile
number or email address as it shall appear upon the Warrant
Register of the Company, at least 20 calendar days prior to the
applicable record or effective date hereinafter specified, a notice
stating (x) the date on which a record is to be taken for the
purpose of such dividend, distribution, redemption, rights or
warrants, or if a record is not to be taken, the date as of which
the holders of the Common Stock of record to be entitled to such
dividend, distributions, redemption, rights or warrants are to be
determined or (y) the date on which such reclassification,
consolidation, merger, sale, transfer or share exchange is expected
to become effective or close, and the date as of which it is
expected that holders of the Common Stock of record shall be
entitled to exchange their shares of the Common Stock for
securities, cash or other property deliverable upon such
reclassification, consolidation, merger, sale, transfer or share
exchange; provided that the failure to deliver such notice or any
defect therein or in the delivery thereof shall not affect the
validity of the corporate action required to be specified in such
notice. To the extent that any notice provided in this Warrant
constitutes, or contains, material, non-public information
regarding the Company or any of the Subsidiaries, the Company shall
simultaneously file such notice with the Commission pursuant to a
Current Report on Form 8-K. The Holder shall remain entitled to
exercise this Warrant during the period commencing on the date of
such notice to the effective date of the event triggering such
notice except as may otherwise be expressly set forth
herein.

 

 

10

 

 

Section 4.  
Transfer of
Warrant.

 

a) Transferability. Subject to
compliance with any applicable securities laws and the conditions
set forth in Section 4(d) hereof, this Warrant and all rights
hereunder are transferable, in whole or in part after the Initial
Exercise Date. upon surrender of this Warrant at the principal
office of the Company or its designated agent, together with a
written assignment of this Warrant substantially in the form
attached hereto duly executed by the Holder or its agent or
attorney and funds sufficient to pay any transfer taxes payable
upon the making of such transfer. Upon such surrender and, if
required, such payment, the Company shall execute and deliver a new
Warrant or Warrants in the name of the assignee or assignees, as
applicable, and in the denomination or denominations specified in
such instrument of assignment, and shall issue to the assignor a
new Warrant evidencing the portion of this Warrant not so assigned,
and this Warrant shall promptly be cancelled. Notwithstanding the
foregoing, Holder (or permitted assignees under Rule 5110(e)(2)(B)(i)) will not sell,
transfer, assign, pledge, or hypothecate these warrants or the
securities underlying these warrants, nor will they engage in any
hedging, short sale, derivative, put, or call transaction that
would result in the effective economic disposition of the warrants
or the underlying securities for a period of 180 days from the
effective date of the Registration Statement. Notwithstanding anything herein to the contrary,
the Holder shall not be required to physically surrender this
Warrant to the Company unless the Holder has assigned this Warrant
in full, in which case, the Holder shall surrender this Warrant to
the Company within three (3) Trading Days of the date on which the
Holder delivers an assignment form to the Company assigning this
Warrant in full. The Warrant, if properly assigned in
accordance herewith, may be exercised by a new holder for the
purchase of Warrant Shares without having a new Warrant
issued.

 

b) New Warrants. This Warrant may
be divided or combined with other Warrants upon presentation hereof
at the aforesaid office of the Company, together with a written
notice specifying the names and denominations in which new Warrants
are to be issued, signed by the Holder or its agent or attorney.
Subject to compliance with Section 4(a), as to any transfer which
may be involved in such division or combination, the Company shall
execute and deliver a new Warrant or Warrants in exchange for the
Warrant or Warrants to be divided or combined in accordance with
such notice. All Warrants issued on transfers or exchanges shall be
dated the Initial Exercise Date and shall be identical with this
Warrant except as to the number of Warrant Shares issuable pursuant
thereto.

 

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

 

 

11

 

 

d) Permitted Transfers and
Assignments. Notwithstanding any provision to the contrary
in this Section 4, the Holder may transfer, with or without
consideration, this Warrant or any of the Warrant Shares (or a
portion thereof) to the Holder’s Affiliates (as such term is
defined under Rule 144 of the Securities Act) or to officers,
directors, employees and other associated persons of the Holder
without obtaining the opinion from, provided, that the Holder
delivers to the Company and its counsel certification,
documentation, and other assurances reasonably required by the
Company’s counsel to ensure that such transfer does not
violate applicable securities laws.

 

e) Representation by the Holder.
The Holder, by the acceptance hereof, represents and warrants that
it is acquiring this Warrant and, upon any exercise hereof, will
acquire the Warrant Shares issuable upon such exercise, for its own
account and not with a view to or for distributing or reselling
such Warrant Shares or any part thereof in violation of the
Securities Act or any applicable state securities law, except
pursuant to sales registered or exempted under the Securities
Act.

 

Section 5.  Miscellaneous.

 

a) No Rights as Stockholder Until
Exercise. This Warrant does not entitle the Holder to any
voting rights, dividends or other rights as a stockholder of the
Company prior to the exercise hereof as set forth in Section
2(d)(i), except as expressly set forth in Section 3.

 

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

 

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

 

d) Authorized Shares.

 

The
Company covenants that, during the period the Warrant is
outstanding, it will reserve from its authorized and unissued
Common Stock a sufficient number of shares to provide for the
issuance of the Warrant Shares upon the exercise of any purchase
rights under this Warrant. The Company further covenants that its
issuance of this Warrant shall constitute full authority to its
officers who are charged with the duty of issuing the necessary
Warrant Shares upon the exercise of the purchase rights under this
Warrant. The Company will take all such reasonable action as may be
necessary to assure that such Warrant Shares may be issued as
provided herein without violation of any applicable law or
regulation, or of any requirements of the Trading Market upon which
the Common Stock may be listed. The Company covenants that all
Warrant Shares which may be issued upon the exercise of the
purchase rights represented by this Warrant will, upon exercise of
the purchase rights represented by this Warrant and payment for
such Warrant Shares in accordance herewith, be duly authorized,
validly issued, fully paid and nonassessable and free from all
taxes, liens and charges created by the Company in respect of the
issue thereof (other than taxes in respect of any transfer
occurring contemporaneously with such issue).

 

 

12

 

 

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

 

Before
taking any action which would result in an adjustment in the number
of Warrant Shares for which this Warrant is exercisable or in the
Exercise Price, the Company shall obtain all such authorizations or
exemptions thereof, or consents thereto, as may be necessary from
any public regulatory body or bodies having jurisdiction
thereof.

 

e) Jurisdiction. This Warrant will
be governed by and construed under the laws of the State of New
York without regard to conflicts of laws principles that would
require the application of any other law.

 

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

 

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

 

 

13

 

 

h) Notices. Any notice or other
communication required or permitted to be given hereunder shall be
in writing and shall be deemed effectively given: (a) upon personal
delivery to the party notified, (b) when sent by confirmed email or
facsimile if sent during normal business hours of the recipient, if
not, then on the next business day, (c) five days after having been
sent by registered or certified mail, return receipt requested,
postage prepaid, or (d) one day after deposit with a nationally
recognized overnight courier, specifying next day delivery, with
written verification of receipt. All communications shall be sent
to the Company at Recruiter.com Group, Inc., 100 Waugh Drive, Suite
300, Houston, TX 77007, Attn: Evan H,
Sohn; Email:
evan@recruiter.com,
and to the Holder at c/o Joseph Gunnar & Co., LLC, 30 Broad
Street, 11th Floor, New York, NY
10004; Attention: Stephan A. Stein; Email: sstein@jgunnar.com.

 

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

 

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

 

k) Successors and Assigns. Subject
to applicable securities laws, this Warrant and the rights and
obligations evidenced hereby shall inure to the benefit of and be
binding upon the successors and permitted assigns of the Company
and the successors and permitted assigns of Holder. The provisions
of this Warrant are intended to be for the benefit of any Holder
from time to time of this Warrant and shall be enforceable by the
Holder or holder of Warrant Shares.

 

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

 

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

 

 

14

 

 

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

 

o) Equal Treatment of Holders. No
consideration (including any modification of this Warrant) shall be
offered or paid to any Person (as such term is defined in the
Purchase Agreement) to amend or consent to a waiver or modification
of any provision hereof unless the same consideration is also
offered to all of the Holders. For clarification purposes, this
provision constitutes a separate right granted to each Holder by
the Company and negotiated separately by each Holder, and is
intended for the Company to treat the Holders as a class and shall
not in any way be construed as the Holders acting in concert or as
a group with respect to the Warrants or the shares of Common Stock
issuable upon exercise of the Warrants.

 

 

********************

 

 

(Signature Page Follows)

 

 

 

15

 

 

 

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

 

 

 

	

RECRUITER.COM GROUP, INC.

 

 

	

By:__________________________________________

     Name:

     Title:

 

 

 

 

16

 

 

NOTICE OF EXERCISE

 

TO:            

[_______________________

 

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

 

(2) Payment shall take
the form of (check applicable box):

 

[ ] in
lawful money of the United States; or

 

[ ] [if
permitted the cancellation of such number of Warrant Shares as is
necessary, in accordance with the formula set forth in subsection
2(c), to exercise this Warrant with respect to the maximum number
of Warrant Shares purchasable pursuant to the cashless exercise
procedure set forth in subsection 2(c).

 

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

 

_______________________________

 

 

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

 

_______________________________

 

_______________________________

 

_______________________________

 

(4)
Accredited
Investor. The undersigned is an “accredited
investor” as defined in Regulation D promulgated under the
Securities Act of 1933, as amended.

 

[SIGNATURE
OF HOLDER]

 

Name of
Investing Entity:
________________________________________________________________________

Signature of Authorized Signatory of Investing
Entity:
_________________________________________________

Name of
Authorized Signatory:
___________________________________________________________________

Title
of Authorized Signatory:
____________________________________________________________________

Date:
________________________________________________________________________________________

 

 

 

 

 

  EXHIBIT B

 

ASSIGNMENT
FORM

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

 

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

 

	

Name:

	

______________________________________

	
 

	

(Please Print)

 

	

Address:

	

______________________________________

	

 

 

Phone Number:

Email Address:

 

	

(Please
Print)

______________________________________

______________________________________

 

	

Dated: _______________ __, ______

 

	
 

	

Holder’s Signature: 
______________________________________

                                                              

 

	
 

	

Holder’s
Address:   
______________________________________Exhibit 10.1

 

SETTLEMENT AND MUTUAL RELEASE AGREEMENT

 

This SETTLEMENT AND MUTUAL RELEASE AGREEMENT
(this “Agreement”) is made and entered into effective as of June 15, 2021 (the “Effective Date”),
by and among CPF GP 2019-1 LLC, a Texas limited liability company (“CPF GP”), CAPITAL PLUS FINANCIAL,
LLC, a Texas limited liability company (“Capital Plus”), and SG BLOCKS, INC., a Delaware corporation
(“SG Blocks”). This Agreement sometimes refers to CPF GP, Capital Plus, and SG Blocks individually as a “Party”
and collectively, as the “Parties”. PAUL GALVIN, an individual (the “Other Note Holder”),
in his capacity as holder of the Galvin Promissory Note (as defined herein), has joined in the execution of this Agreement solely for
the limited purposes set forth in Sections 1(e), 1(f), and 2 of this Agreement.

 

R E C I T A L S:

 

A. CPF
GP is the managing member of CPF MF 2019-1 LLC, a Delaware limited liability company (“CPF MF”);

 

B. CPF
MF is undertaking a proposed multi-family development project in Monticello, Sullivan County, New York known as “Monticello Mews”
(the “Project”);

 

C.  In
connection with the Project, CPF GP and SG Blocks entered into that certain Exclusive License Agreement, dated October 3, 2019, as amended
by that certain Amendment No. 1 to Exclusive License Agreement, dated October 17, 2019 (collectively, the “License Agreement”),
pursuant to which SG Blocks licensed the Licensed Technology (as defined in the License Agreement) (the “Licensed Technology”)
to CPF GP with respect to the Project, on the terms and conditions set forth in the License Agreement;

 

D.  Each
of SG Blocks and Capital Plus were formerly members of CPF GP, pursuant to the Company Agreement of CPF GP, effective as of May 17, 2019
(as amended, the “CPF GP LLC Agreement”);

 

E.
SG Blocks withdrew as a member of CPF GP on October 3, 2019;

 

F. Capital
Plus’s membership interest in CPF GP was redeemed pursuant to that certain Membership Interest Redemption Agreement, dated December
21, 2020 (as amended by the Redemption Agreement Amendment (as defined herein), the “Redemption Agreement”),
pursuant to which CPF GP agreed to pay over to Capital Plus the Consideration (as defined in the Redemption Agreement) (the “Redemption
Consideration”) as received by CPF GP from CPF MF from time to time, if any;

 

G. Certain
disputes have arisen among the parties with respect to payments alleged to be due under the License Agreement (the “Dispute”);
and

 

H. The
Parties have participated in settlement discussions and desire to enter into this Agreement in order to fully and finally settle the Dispute
and resolve any and all other disputes or other matters arising out of, or connected with the Dispute and any claims, matters, injuries,
or damages which any of the Parties have or could assert against the other Parties or their Affiliates (as defined herein) in connection
with the License Agreement, the Licensed Technology, the Dispute, the CPF GP LLC Agreement, or the Project, in in each case, subject to
the terms and conditions set forth herein.

 

     

     

    

 

NOW, THEREFORE, in
consideration of the foregoing premises and the mutual covenants and agreements set forth herein and for other good and valuable consideration,
the receipt and sufficiency of which is hereby acknowledged by each Party, the Parties, intending to be legally bound, hereby agree as
follows:

 

1. TERMS
OF SETTLEMENT. As consideration for the resolution of the Dispute and any and all other disputes or other matters arising out of,
or connected with the License Agreement, the Licensed Technology, the Dispute, the CPF GP LLC Agreement, or the Project, the Parties agree
to take the following actions:

 

(a) Termination
of License Agreement. Contemporaneously with the execution and delivery of this Agreement, each of CPF GP and SG Blocks shall execute
and deliver the Termination of Exclusive License Agreement in the form attached hereto as Exhibit A (the “License
Termination Agreement”). From and after the Effective Date, no Party shall have any further rights, obligations, duties,
or liabilities under, arising out of, or with respect to the License Agreement.

 

(b) Assignment
of Redemption Consideration to SG Blocks. Subject to Section 1(c), in consideration of this Agreement and the termination of
the License Agreement pursuant to the License Termination Agreement, Capital Plus shall assign its rights under the Redemption Agreement
to receive the Redemption Consideration, if any, to SG Blocks. To effect such assignment, contemporaneously with the execution and delivery
of this Agreement, each of Capital Plus, SG Blocks, and CPG GP shall execute and deliver the Assignment of Limited Rights Under Membership
Interest Redemption Agreement in the form attached hereto as Exhibit B (the “Assignment Agreement”).
Contemporaneously herewith, Capital Plus and CPF GP have amended the Redemption Agreement pursuant to that certain Amendment to Membership
Interest Redemption Agreement in the form attached hereto as Exhibit C (the “Redemption Agreement Amendment”).

 

(c) Guaranty
Fees. CPF GP, and its principal Greg Jacobson (each a “Guarantor” and collectively, the “Guarantors”)
shall be entitled to guaranty fees (the “Guaranty Fees”) in connection with its providing personal guarantees
with respect to financing for the Project. When such Guarantor receives any such Guaranty Fee, such Guaranty Fee shall be paid over to
SG Blocks within sixty (60) days of such Guarantor’s receipt thereof, as an advance against the Redemption Consideration under the
Redemption Agreement (as assigned to SG Blocks pursuant to the Assignment Agreement), and CPF GP shall be entitled to offset and reduce
future payments of Redemption Consideration to SG Blocks under the Redemption Agreement (as assigned to SG Blocks pursuant to the Assignment
Agreement) by amounts advanced to SG Blocks pursuant to this Section 1(c). For the avoidance of doubt, the term Guaranty Fees shall
not include any development fees or other fees to which any Guarantor may become entitled. For the avoidance of doubt, should any third
party including but not limited to Capital Plus make additional guarantees they shall also be considered a Guarantor and shall abide by
the terms of this Section 1(c).

 

(d) Certain
Acknowledgments by SG Blocks Relating to the Redemption Consideration. SG Blocks acknowledges that (i) its receipt of any Redemption
Consideration pursuant to the Redemption Agreement (as assigned to SG Block pursuant to the Assignment Agreement) is dependent on CPF
GP receiving distributions from CPF MF and (ii) neither CPF GP, CPF MF, Capital Plus, or any other entity or individual has made any representation
that CPF GP will receive any distributions from CPF MF.

 

    2

     

    

 

(e) Security
Interest. Pursuant to that certain Security Agreement, dated as of January 21, 2020, between CPF GP and SG Blocks (as amended, the
“Security Agreement”), CPF GP previously granted a security interest in the Collateral (as defined in the Security
Agreement) in favor of SG Blocks and the other Secured Parties (as defined in the Security Agreement) with respect to the Loan, pursuant
to the terms and conditions set forth in the Security Agreement (the “Security Interest”). From and after the
Effective Date, the payment of the Redemption Consideration under and pursuant to the Redemption Agreement (as assigned to SG Blocks pursuant
to the Assignment Agreement) shall constitute a part of the “Obligations” under the Security Agreement until such time as
SG Blocks receives an amount of Redemption Consideration pursuant to the Redemption Agreement (as assigned to SG Blocks) equal to One
Million Two Hundred Fifty Thousand and No/100 Dollars ($1,250,000.00). For the avoidance of doubt, the Security Agreement shall remain
in full force and effect and the Security Interest shall not be released until both (i) CPF GP satisfies in full its obligations under
and pursuant to the terms of the Promissory Notes and (ii) SG Blocks receives an amount of Redemption Consideration pursuant to the Redemption
Agreement (as assigned to SG Blocks pursuant to the Assignment Agreement) equal to One Million Two Hundred Fifty Thousand and No/100 Dollars
($1,250,000.00) (the satisfaction of the conditions set forth in Section 1(e)(i) and (ii), the “Security Interest
Satisfaction”). Upon the Security Interest Satisfaction, the Security Agreement shall automatically terminate and the Security
Interest shall be automatically released, in each case, without any further action of either party; provided, however, upon the
Security Interest Satisfaction, each of CPF GP and SG Blocks shall execute, deliver, and, if applicable, file, such documents, instruments,
affidavits, terminations, and releases (including, without limitation, a UCC termination statement) as may be reasonably requested by
CPF GP to reflect and evidence the release of the Security Interest. For the avoidance of doubt, CPF GP’s obligations under the
Loan Documents and the Redemption Agreement (as assigned to SG Blocks pursuant to the Assignment Agreement) are not intended to be, and
shall not be, cross-defaulted and a default under the Redemption Agreement shall not in and of itself constitute a default under the Loan
Documents, and vice versa. Each of CPF GP, SG Blocks, and the Other Note Holder hereby consents to the amendment of the Security Agreement
as set forth in this Section 1(e).

 

(f) Letter
Agreement. Contemporaneously with the execution and delivery of this Agreement, each of CPF GP, SG Blocks, and the Other Note Holder
shall execute and deliver that certain letter agreement in the form attached hereto as Exhibit D (the “Letter
Agreement”).

 

2. LOAN
AGREEMENT AND PROMISSORY NOTE UNAFFECTED. In connection with the Project, SG Blocks and the Other Note Holder previously made the
Loan (as defined herein) to CPF GP pursuant to that certain Loan Agreement and Promissory Note, dated October 3, 2019, as amended by that
certain Amendment to Loan Agreement and Promissory Note, as further amended by that certain Second Amendment to Loan Agreement, dated
November 7, 2019 (collectively the “Loan Agreement”), that certain Promissory Note, dated January 21, 2020,
executed by CPF GP in favor of SG Blocks in the principal amount of Four Hundred Thousand and No/100 Dollars ($400,000.00) (the “SG
Blocks January Note”), that certain Promissory Note, dated January 21, 2020, executed by CPF GP in favor of the Other Note
Holder in the principal amount of One Hundred Thousand and No/100 Dollars ($100,000.00) (the “Galvin Note”),
and that certain Promissory Note, dated April 15, 2020, executed by CPF GP in favor of SG Blocks in the original principal amount of Two
Hundred Fifty Thousand and No/100 Dollars ($250,000.00) (the “SG Blocks April Note” and together with the SG
Blocks January Note and the Galvin Note, collectively, the “Promissory Notes” and together with the Loan Agreement,
Security Agreement, and all other related loan documents, collectively, the “Loan Documents”). The Parties acknowledge
that the aggregate principal balance outstanding under the Loan Documents as of the Effective Date is Seven Hundred Fifty Thousand and
No/100 Dollars ($750,000.00) (the “Loan”). For the avoidance of doubt, the Parties acknowledge and agree that
(a) except as specifically modified by Section 1(e) of this Agreement, the Loan Documents are unaffected by this Agreement, (b)
the Loan Documents remain in effect and outstanding in accordance with their terms, and (c) as of the Effective Date there are no uncured
defaults or events of default under the Loan Documents. SG Block and the Other Note Holder are the holders of the Promissory Notes as
of the Effective Date and neither of them has assigned any right, title, or interest in or to the Promissory Notes or related Loan Documents
to any other entity or individual.

 

    3

     

    

 

3. GENERAL
REPRESENTATIONS AND WARRANTIES. Each Party represents and warrants to the other Parties that: (a) it has full authority to enter into
this Agreement and each of the other agreements executed and delivered in connection herewith (the “Ancillary Agreements”),
(b) the officer or agent executing this Agreement and the Ancillary Agreements on such Parties behalf has been duly and properly authorized
to execute this Agreement and the Ancillary Agreements, and this Agreement and the Ancillary Agreements constitute its valid and legally
binding obligation, enforceable against it in accordance with their terms, subject to bankruptcy, insolvency, reorganization, and similar
laws affecting the enforcement of creditor’s rights or contractual obligations generally and, as to enforcement, to general principles
of equity, regardless of whether applied in a proceeding at law or in equity; (c) no approval or consent of any other person is required
in connection with the execution and delivery of this Agreement or any Ancillary Agreement or the consummation and performance of this
Agreement or any Ancillary Agreement; and (d) the execution and delivery of this Agreement and the Ancillary Agreements and the obligations
created or released by this Agreement or any such Ancillary Agreement have been duly authorized by all necessary proceedings for such
Party and will not conflict with or result in the breach or violation of any of the terms of conditions of, or constitute (or with notice
or lapse of time or both would constitute) a default under any instrument, contract, or other agreement to which such Party is a party
or by or to which it or its assets or properties are bound or subject, or any statute or any regulation, order, judgment, or decree of
any court or governmental or regulatory body which has jurisdiction over such Party. The preceding representations and warranties shall
not be discharged or dissolved upon, and shall survive, the execution of this Agreement and the Ancillary Agreements and will be unaffected
by any investigation made by any Party at any time.

 

4. MUTUAL
RELEASES.

 

(a) Released
Claims. For purposes of this Agreement, “Released Claims” shall mean any and all liabilities, obligations,
actions, causes of actions, claims, suits, proceedings, judgments, levies, executions, damages, and demands of any kind and nature, conditional
or unconditional, known or unknown, suspected or unsuspected, liquidated or unliquidated, that any Party may have or be entitled to raise
against any other Party or their respective Affiliates (as defined herein) and that arise out of, arise under, or relate to: (i) the Dispute,
(ii) the License Agreement, (iii) the Licensed Technology, (iv) the CPF GP LLC Agreement, (v) the former ownership interest of any Party
in CPF GP, (vi) the operation, opportunities, prospects, and management of CPF GP and CPF MF and their respective business and affairs,
and/or (vii) the relationship and interaction between or among the Parties up to and including the Effective Date, including, without
limitation (A) any act, occurrence, or omission arising out of or under the License Agreement or the CPF GP LLC Agreement, and (B) any
right to payments, fees, distributions, or other compensation or amounts earned, or purported to be earned under, or in connection with,
the License Agreement, the Licensed Technology, CPF GP, the CPF GP LLC Agreement, or the Project.

 

(b) Affiliate.
For purposes of this Agreement, “Affiliate” means, with respect to any Party, any entities or individuals directly
or indirectly controlling, controlled by, or under common control with such Party.

 

(c) Release
by SG Blocks. SG Blocks, on behalf of SG Blocks and its successors, assigns, employees, agents, directors, officers, attorneys, insurers,
and Affiliates (the “SG Blocks Parties”): (i) irrevocably and unconditionally waives, releases, and forever
discharges (A) CPF GP, CPF MF, BC Lee Corp., a Delaware corporation, and Greg Jacobson, and as applicable, each of their respective employees,
members, shareholders, officers, directors, managers, managing members, agents, employees, successors, heirs, beneficiaries, personal
representatives, trustees, assigns, representatives, attorneys, insurers, and Affiliates (collectively, the CPF GP Parties”)
and (B) Capital Plus and each of its employees, members, managers, managing members, agents, employees, successors, assigns, representatives,
attorneys, insurers, and Affiliates (collectively, the “Capital Plus Parties”), in each case, from any and all
Released Claims that the SG Blocks Parties may have or be entitled to claim against any of the CPF GP Parties or Capital Plus Parties;
and (ii) irrevocably and unconditionally waives all relief, legal and equitable, that the SG Blocks Parties may be able to seek from the
(A) CPF GP Parties or (B) Capital Plus Parties, in each case, with respect to the Released Claims, including compensatory damages, punitive
damages, lost profits, attorneys’ fees, expenses, and costs; provided, however, that the releases set forth in this Section
4(c) do not release any rights or obligations set forth in this Agreement, the License Termination Agreement, the Redemption Agreement,
the Assignment Agreement, the Letter Agreement, or the Loan Documents.

 

    4

     

    

 

(d) Release
by Capital Plus. Capital Plus, on behalf of Capital Plus and the Capital Plus Parties: (i) irrevocably and unconditionally waives,
releasees, and forever discharges (A) the CPF GP Parties and (B) SG Blocks Parties, in each case, from any and all Released Claims that
the Capital Plus Parties may have or be entitled to claim against any of the CPF GP Parties or SG Blocks Parties; and (ii) irrevocably
and unconditionally waives all relief, legal and equitable, that the Capital Plus Parties may be able to seek from the (A) CPF GP Parties
or (B) SG Blocks Parties, in each case, with respect to the Released Claims, including compensatory damages, punitive damages, lost profits,
attorneys’ fees, expenses, and costs; provided, however, that the releases set forth in this Section 4(d) do not release
any rights or obligations set forth in this Agreement, the License Termination Agreement, the Redemption Agreement, the Assignment Agreement,
the Letter Agreement, or the Loan Documents.

 

(e) Release
by CPF GP. CPF GP, on behalf of CPF GP and the CPF GP Parties: (i) irrevocably and unconditionally waives, releases, and forever discharges
(A) the Capital Plus Parties and (B) SG Blocks Parties, in each case, from any and all Released Claims that the CPF GP Parties may have
or be entitled to claim against any of the Capital Plus Parties or SG Blocks Parties; and (ii) irrevocably and unconditionally waives
all relief, legal and equitable, that the CPF GP Parties may be able to seek from the (A) Capital Plus Parties or (B) SG Blocks Parties,
in each case, with respect to the Released Claims, including compensatory damages, punitive damages, lost profits, attorneys’ fees,
expenses, and costs; provided, however, that the releases set forth in this Section 4(e) do not release any rights or obligations
set forth in this Agreement, the License Termination Agreement, the Redemption Agreement, the Assignment Agreement, the Letter Agreement,
or the Loan Documents.

 

(f) Ownership
of Claims. Each Party represents and warrants to the other Parties that such Party has not assigned, transferred, or conveyed, or
purported to assign, transfer, or convey, and each Party covenants that such Party will not assign, transfer, or convey to any third party,
any right or interest that it may have in or with respect to any Released Claim.

 

(g) Knowledge
of Risk of Release. The Parties understand there is a risk that, subsequent to the execution of this Agreement, they may discover
claims or facts in addition to, or different from, those which they know or believe to exist, in connection with the Dispute. Notwithstanding
the foregoing, it is the Parties’ intention to assume the risk of such unknown and unanticipated claims and facts with respect to
the Dispute. For the purpose of implementing a full and complete release and settlement of the Dispute, the Parties expressly acknowledge
that this Agreement and its releases are intended to include all claims arising out of or related to the Dispute, the License Agreement,
the Licensed Technology, the CPF GP LLC Agreement, or the Project, even those which any one or more of the Parties do not know or suspect
to exist at the time this Agreement is signed, and further, that this Agreement extinguishes and discharges any and all such claims arising
out of or related to the Dispute, the License Agreement, the Licensed Technology, the CPF GP LLC Agreement, or the Project, except as
set forth in this Agreement. The Parties acknowledge that this release was bargained for, and that there are no representations by, or
conduct of, anyone being relied upon by them in entering into this release, except as specifically provided herein.

 

    5

     

    

 

5. MUTUAL
INDEMNIFICATION.

 

(a) Indemnification
by SG Blocks. SG Blocks shall indemnify and hold harmless the CPF GP Parties and the Capital Plus Parties from all claims, actions,
suits, proceedings, losses, damages, expenses, penalties, fines, fees, costs, and liabilities (including reasonable attorneys’ fees
and expenses and related legal costs) (collectively, “Claims”) actually incurred by the CPF GP Parties or Capital
Plus Parties that arise out of, or relate to: (i) a breach of any provision of this Agreement or any Ancillary Agreement by SG Blocks,
or (ii) the incorrectness or untruth of any representation or warranty in this Agreement or any Ancillary Agreement made by SG Blocks.

 

(b) Indemnification
by Capital Plus Parties. Capital Plus shall indemnify and hold harmless the CPF GP Parties and the SG Blocks Parties from all Claims
actually incurred by the CPF GP Parties or the SG Blocks Parties that arise out of, or relate to: (i) a breach of any provision of this
Agreement or any Ancillary Agreement by Capital Plus, or (ii) the incorrectness or untruth of any representation or warranty in this Agreement
or any Ancillary Agreement made by Capital Plus.

 

(c) Indemnification
by CPF GP. CPF GP shall indemnify and hold harmless the Capital Plus Parties and the SG Blocks Parties from all Claims actually incurred
by the Capital Plus Parties or the SG Blocks Parties that arise out of, or relate to: (i) a breach of any provision of this Agreement
or any Ancillary Agreement by CPF GP, or (ii) the incorrectness or untruth of any representation or warranty in this Agreement or any
Ancillary Agreement made by CPF GP.

 

6. MUTUAL
NON-DISPARAGEMENT. No Party to this Agreement shall make any disparaging statement, remark, or comments about the other Parties to
this Agreement, about any Party’s Affiliates, or about any other Party’s respective members, managers, managing members, partners,
directors, officers, employees, or agents, or communicate to any person or entity any information disparaging of the other Parties, any
of their Affiliates, or any of their respective members, managers, managing members, partners, directors, officers, employees, or agents;
provided, however, nothing contained in this Agreement shall in any way restrict or limit a Party’s rights and ability to
make, and a Party shall not have violated this Agreement as a result of, statements or comments made in good faith (whether in marketing
materials, advertising, or otherwise) regarding the products or services of the other Party made for the purposes of or in the context
of engaging in lawful product or service comparison and commercial competition.

 

7. MUTUAL
CONFIDENTIALITY. The Parties shall keep this Agreement and the Ancillary Agreements confidential and shall not provide access to or
disclose any of their respective terms or provisions to any person or entity other than (a) the Parties respective attorneys, accountants,
tax advisors (including, as required in connection with the preparation of any tax return of any Party), insurers, and financial advisors,
(b) as required in connection with any claims, negotiations, discussions, proceedings, litigation, or settlement with any insurer, or
(c) with respect to any Party, to such Party’s investors, potential investors, or financing sources to the extent reasonably required
to comply with any applicable securities laws or requirements of any stock exchange on which any Party is listed or in connection with
any policies and procedures of such financing source. Notwithstanding the foregoing, the Parties may disclose the terms and provisions
of this Agreement if and to the extent required by applicable law or regulatory requirement in the reasonable opinion of such Party’s
legal counsel; and, if such disclosure is made in a manner which complies with the provisions of this Section 7, the disclosing
party shall have no liability to the other Parties for such disclosure. To enable the non-disclosing Parties, at their option, to obtain
a protective order or other remedy or to waive compliance with the provisions of this Section 7, if any Party is requested to disclose
the terms and provisions of this Agreement or any Ancillary Agreement other than as permitted in the first sentence of this Section
7, the disclosing Party shall promptly notify the other Parties of such request. If the other Parties elect to seek a protective order
or other remedy, such Party shall cooperate with and shall not object to, any such action. If the other Parties do not obtain a protective
order or other remedy or waive compliance with the provisions of this Section 7, the disclosing Party shall only disclose the portion
of this Agreement or such Ancillary Agreement that such Party is legally required to disclose. This Section 7 shall not prohibit
any Party from introducing this Agreement or any Ancillary Agreement as evidence in any action or proceeding for the enforcement or breach
of this Agreement. SG Blocks may however, continue to brand the Project, feature it on its promotional, marketing and investment materials
at its option and under the terms and use generally known and public information for its own promotional purposes.

 

    6

     

    

 

8. GENERAL
PROVISIONS.

 

(a) Entire
Agreement. This Agreement, together with the Ancillary Agreements, constitutes the entire agreement and understanding of the Parties
with respect to the subject matter hereof and thereof and supersede all prior agreements and understandings (whether written or oral)
relating to the subject matter hereof or thereof, and there are no agreements, understandings, warranties, representations, or covenants
of the Parties hereof or thereof other than those set forth in this Agreement or the Ancillary Agreements.

 

(b) Binding
Effect; Assignment. This Agreement shall be binding upon and shall inure to the benefit of the Parties and their respective successors
and permitted assigns. No Party may assign this Agreement without the prior written consent of each of the other Parties.

 

(c) Modification
or Waiver. No modification, waiver, or amendment of any provision of this Agreement shall be effective unless set forth in a written
agreement executed by each Party that expressly states that it is intended to modify or amend this Agreement or waive a right hereunder.

 

(d) Severability.
If any term or provision of this Agreement or the application thereof under certain circumstances is declared invalid, illegal, or unenforceable
by a court of competent jurisdiction, such invalidity, illegality, or unenforceability shall not affect any other term or provision of
this Agreement or any other application thereof.

 

(e) Voluntary
Entry into Agreement; Counsel. The Parties acknowledge, agree, and represent that, in entering into this Agreement and the Ancillary
Agreements, each is acting voluntarily and of its own free will. In entering into this Agreement and the Ancillary Agreements, each Party
has had a reasonable opportunity to seek, and has sought, the advice of counsel of its own choosing.

 

(f) Governing
Law. This Agreement shall be construed, interpreted, enforced, and governed in accordance with the laws of the State of Texas, without
giving effect to conflict of laws principles.

 

(g) Waiver
of Jury Trial. THE PARTIES WAIVE, TO THE MAXIMUM EXTENT PERMITTED UNDER APPLICABLE LAW, TRIAL BY JURY IN ANY LITIGATION IN ANY COURT
WITH RESPECT TO, IN CONNECTION WITH, OR ARISING OUT OF THIS AGREEMENT OR THE VALIDITY, INTERPRETATION, OR ENFORCEMENT OF THIS AGREEMENT.

 

(h) Jurisdiction
and Venue. THE PARTIES IRREVOCABLY SUBMIT TO THE EXCLUSIVE JURISDICTION OF THE STATE AND FEDERAL COURTS LOCATED IN DALLAS, TEXAS FOR
THE PURPOSE OF ANY ACTIONS, SUITS, OR PROCEEDINGS ARISING IN WHOLE OR IN PART OUT OF, UNDER, OR IN CONNECTION WITH THIS AGREEMENT OR ANY
ANCILLARY AGREEMENT, AND WAIVE, TO THE EXTENT NOT PROHIBITED BY APPLICABLE LAW, AND AGREE NOT TO ASSERT, BY WAY OF MOTION, AS A DEFENSE,
OR OTHERWISE, IN ANY ACTION, SUIT, OR PROCEEDING, ANY CLAIM THAT A PARTY IS NOT SUBJECT TO THE PERSONAL JURISDICTION OF SUCH COURTS OR
THAT SUCH COURT IS AN INCONVENIENT FORUM.

 

    7

     

    

 

(i) Joint
Drafting. This Agreement and the Ancillary Agreements have been jointly drafted and redrafted by the Parties and their respective
counsel and the language of this Agreement and the Ancillary Agreements shall be construed as a whole according to their fair meaning
and not strictly for or against any Party on account of it, or its counsel, having drafted this Agreement or any Ancillary Agreement or
any provision of this Agreement or any Ancillary Agreement.

 

(j) Survival.
The obligations, agreements, covenants, representations, and warranties of the Parties under this Agreement shall survive the execution
and delivery of this Agreement.

 

(k) Further
Assurances; Necessary Actions. Each Party shall perform such further acts and execute and deliver such further documents, instruments,
certificates, or affidavits as may be reasonably necessary to carry out the provisions of this Agreement and the Ancillary Agreements.

 

(l) Recitals.
The recitals to this Agreement are incorporated in, and made a part of, this Agreement.

 

(m) Headings
and Captions. The headings and captions set forth in this Agreement are for convenience and reference only and shall not be used in
interpreting or construing this Agreement.

 

(n) No
Admission of Liability. The Parties hereto expressly agree that nothing contained in this Agreement constitutes, or shall be construed
as, an admission of liability on the part of any Party or Parties hereto.

 

(o) Expenses.
Except as provided in the final sentence of this Section 8(o), each Party shall bear its own costs and expenses in connection with
the preparation, execution, and performance of this Agreement and the Ancillary Agreements and the transactions contemplated hereby and
thereby, including, without limitation, all fees and expenses of agents, representatives, counsel, and accountants employed or retained
by any such Party. Notwithstanding the foregoing, in the event any Party brings suit for the enforcement of the terms of this Agreement
or any Ancillary Agreement or with respect to an alleged dispute, breach, default, or misrepresentation in connection with this Agreement
or any Ancillary Agreement, the prevailing Party shall be entitled to recover from the non-prevailing Party reasonable attorneys’
fees and other costs incurred in that action or proceeding, in addition to any other relief to which it or they may be entitled.

 

(p) Third
Party Beneficiaries. No person other than the Parties to this Agreement and their permitted successors and assigns have any rights
or remedies under this Agreement or any right to enforce this Agreement, except that the CPF GP Parties, Capital Plus Parties, and SG
Blocks Parties who are not Parties to this Agreement are intended third party beneficiaries with respect to the mutual releases set forth
in Section 4, the mutual indemnification set forth in Section 5, and the mutual non-disparagement set forth in Section
6 and shall have the right to enforce their rights under those provisions of this Agreement.

 

(q) Remedies
Cumulative. The rights, obligations, and remedies created by this Agreement and the Ancillary Agreements are cumulative and in addition
to any other rights, obligations, or remedies otherwise available at law or in equity. Nothing herein shall be considered an election
of remedies by any Party.

 

(r) Counterparts.
This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which taken together
shall constitute one and the same instrument. Counterparts may be delivered via facsimile, electronic mail (including, .pdf), or other
transmission method and any counterpart so delivered shall be deemed to have been duly and validly delivered and shall be valid and effective
for all purposes.

 

[Signatures appears on following pages]

 

[Remainder of this page intentionally left blank]

 

    8

     

    

 

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

 

	 	CPF GP:
	 	 
	 	CPF GP 2019-1 LLC
	 	 	 
	 	By:	/s/ Greg Jacobson
	 	Name: 	Greg Jacobson
	 	Title:	Manager
	 	 
	 	CAPITAL PLUS:
	 	 
	 	CAPITAL PLUS FINANCIAL, LLC
	 	 	 
	 	By:	/s/ Eric Donnelly
	 	Name:	Eric Donnelly
	 	Title:	CEO
	 	 
	 	SG BLOCKS:
	 	 
	 	SG BLOCKS, INC.
	 	 	 
	 	By:	/s/ Paul Galvin
	 	Name:	Paul Galvin
	 	Title:	Chairman and CEO

 

OTHER NOTE HOLDER:

 

The undersigned, in his capacity as holder of
the Galvin Note (as defined herein), has joined in the execution of this Agreement for the limited purposes set forth in Sections 1(e),
1(f), and 2 of this Agreement:

 

	/s/ Paul Galvin	 
	Paul Galvin	 

 

    9

     

    

 

EXHIBIT A

 

License Termination Agreement

 

See Exhibit 10.2 of the Current Report on Form 8-K.

 

 

 

 

 

 

 

     

     

    

 

EXHIBIT B

 

Assignment Agreement

 

See Exhibit 10.3 of the Current Report on Form 8-K.

 

 

 

 

 

 

     

     

    

 

EXHIBIT C

 

Redemption Agreement Amendment

 

 

 

 

 

 

 

 

 

     

     

    

 

AMENDMENT TO MEMBERSHIP INTEREST REDEMPTION
AGREEMENT

 

This AMENDMENT TO MEMBERSHIP
INTEREST REDEMPTION AGREEMENT (this “Amendment”) is executed and delivered effective as of June 15, 2021
(the “Effective Date”), by and between CAPITAL PLUS FINANCIAL, LLC, a Texas limited liability company
(the “Redeemed Member”) and CPF GP 2019-1 LLC, a Texas limited liability company (the “Company”).
The Redeemed Member and the Company are hereinafter collectively referred to at times as the “Parties,” and
each individually as a “Party.”

 

WHEREAS, the Redeemed
Member and the Company are parties to that certain Membership Interest Redemption Agreement, dated December 21, 2021 (the “Redemption
Agreement”), pursuant to which the Company redeemed the Redeemed Interest (as defined in the Redemption Agreement) from
the Redeemed Member;

 

WHEREAS, the Redeemed
Member, the Company, and SG Blocks, Inc., a Delaware Corporation (“SG Blocks”), are parties to that certain
Settlement Agreement, dated as of even date herewith (the “Settlement Agreement”); and

 

WHEREAS, in furtherance
of the Settlement Agreement, the Redeemed Member and the Company desire to amend the Redemption Agreement as set forth herein.

 

NOW, THEREFORE, in
consideration of the premises, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged,
the undersigned Parties, intending to be legally bound, hereby agree as follows:

 

1. CAPITALIZED
TERMS. Any capitalized term used in this Amendment but not defined in this Amendment shall have the meaning ascribed to such term
in the Redemption Agreement.

 

2. DISTRIBUTIONS.
Notwithstanding anything to the contrary in the Redemption Agreement, the Company shall not make any Distributions to its Members without
(i) first having paid in full all amounts due pursuant to the Loan Agreement (as defined in the Settlement Agreement) and the Promissory
Notes (as defined in the Settlement Agreement) and (ii) thereafter paying at least One Million Two Hundred Fifty Thousand and No/100 Dollars
($1,250,000.00) of Redemption Consideration to the Redeemed Member pursuant to the Redemption Agreement.

 

3. GOVERNING
LAW. This Amendment shall be construed, interpreted, enforced, and governed in accordance with the laws of the State of Texas, without
giving effect to conflict of laws principles.

 

4. BINDING
EFFECT. This Amendment shall be binding upon and shall inure to the benefit of the Parties and their respective successors and permitted
assigns.

 

5. ENTIRE
AGREEMENT. This Amendment, together with the Redemption Agreement, the Settlement Agreement, the Assignment Agreement (as defined
in the Settlement Agreement), the License Termination Agreement (as defined in the Settlement Agreement), and the Letter Agreement (as
defined in the Settlement Agreement), constitutes the entire agreement and understanding of the parties hereto with respect to the subject
matter hereof or thereof, and there are no agreements, understandings, warranties, representations, or covenants of the Parties hereof
or thereof other than those set forth in this Amendment, the Redemption Agreement, the Settlement Agreement, the Assignment Agreement
(as defined in the Settlement Agreement), the License Termination Agreement (as defined in the Settlement Agreement), or the Letter Agreement
(as defined in the Settlement Agreement).

 

    C-1

     

    

 

6. FURTHER
ASSURANCES; NECESSARY ACTIONS. The Parties agree to sign, execute, and deliver, or cause to be signed, executed, and delivered, and
to do or make, or cause to be done and made, upon the written request of the other Party, any and all agreements, instruments, papers,
documents, waivers, acts, or things, supplemental, confirming, or otherwise, as may be reasonably requested to effect the purpose and
intent of this Amendment.

 

7. EFFECT
OF AMENDMENT. Except as specifically amended hereby, the Redemption Agreement remans in full force and effect.

 

8. SEVERABILITY.
If any term or provision of this Amendment or the application thereof under certain circumstances is declared invalid, illegal, or unenforceable
by a court of competent jurisdiction, such invalidity, illegality, or unenforceability shall not affect any other term or provision of
this Amendment or any other application thereof.

 

9. HEADING
AND CAPTIONS. The headings and captions set forth in this Amendment are for convenience and reference only and shall not be used in
interpreting or construing this Amendment.

 

10. RECITALS.
The recitals to this Amendment are incorporated in, and made a part of, this Amendment.

 

11. COUNTERPARTS;
FACSIMILE EXECUTION. This Amendment may be executed in two or more counterparts, each of which shall be deemed an original, but all
of which taken together shall constitute one and the same instrument. Counterparts may be delivered by facsimile, electronic mail (including,
..pdf), or other transmission method and any counterpart so delivered shall be deemed to have been duly and validly delivered and shall
be valid and effective for all purposes.

 

[Signatures appear on the following pages]

 

[Remainder of this page intentionally left blank]

 

    C-2

     

    

 

IN WITNESS WHEREOF,
the undersigned have executed this Amendment as of the Effective Date.

 

	 	REDEEMED MEMBER:
	 	 
	 	CAPITAL PLUS FINANCIAL, LLC
	 	 
	 	By: 	            
	 	Name: 	 
	 	Title: 	 
	 	 
	 	COMPANY:
	 	 
	 	CPF GP 2019-1 LLC
	 	 
	 	By:	 
	 	Name: 	 
	 	Title: 	

 

    C-3

     

    

 

EXHIBIT D

 

Letter Agreement

 

 

 

 

 

 

     

     

    

 

CPF GP 2019-1 LLC

 

June 15, 2021

 

VIA Electronic Mail

SG Blocks, Inc.

17 State Street, 19th Floor

New York, New York 10004

Attn: Paul Galvin

Email: pgalvin@sgblocks.com

 

and

Paul Galvin

17 State Street, 19th Floor

New York, New York 10004

Email: pgalvin@sgblocks.com

 

Re:  Certain
Distributions Under the Limited Liability Company Agreement of CPF MF 2019-1 LLC (the “Company”)

 

Dear Paul:

 

Reference is made to that
certain Settlement and Mutual Release Agreement, dated as of the date hereof (as the same is amended, modified, and restated from time
to time, the “Settlement Agreement”) and that certain Limited Liability Company Agreement of the Company (as the same
is amended, modified, and restated from time to time, the “LLC Agreement”). Capitalized terms used, but not otherwise
defined, in this letter agreement (this “Letter Agreement”), shall have the meanings ascribed thereto in the LLC Agreement.

 

1. DISTRIBUTION STIPULATIONS. In
furtherance of the Settlement Agreement, CPF GP 2019-1 LLC (the “Managing Member”) has agreed as follows (the “Distribution
Stipulations”):

 

(a) The
Managing Member shall not cause any discretionary distributions to be made by the Company to the Other Members pursuant to Section 4.02(a)(iii),
(iv), or (v) of LLC Agreement until the Company has Available Assets which, in the reasonable determination of the Managing Member, are
sufficient for the Company to make a distribution to the Other Members pursuant to Section 4.02(a)(iii), (iv), or (v) of the LLC Agreement,
in which distribution the aggregate amount distributable to the Managing Member would be sufficient for the Managing Member to pay the
outstanding principal and interest under the Loan (as defined in the Settlement Agreement) in full (taking into account the Make-Whole
Payment pursuant to Section 1(c) of this Letter Agreement) (such distribution, a “Full Payment Distribution”).
At such time that the Managing Member determines, in its reasonable discretion, that Available Assets exist to make a Full Payment Distribution,
the Managing Member shall cause such Full Payment Distribution to be made within thirty (30) days of making such determination, subject
to any negative covenants in any loan agreements or similar arrangements to which the Company is a party. For the avoidance of doubt,
this Section 1(a) shall not prohibit the Managing Member from causing the Company to make (I) distributions to the Preferred Member
pursuant to Section 4.02(a)(i) or (ii) of the LLC Agreement or (II) Tax Liability Distributions to Members having allocations of income
from the Company pursuant to Section 4.03 of the LLC Agreement.

 

(b) Subject
to Section 1(a) of this Letter Agreement, in the event that the Managing Member causes the Company to make a distribution to the
Other Members pursuant to Section 4.02(a)(iii), (iv), or (v) of the LLC Agreement, the Managing Member shall cause the Company to direct
all portions of such distribution payable to the Managing Member to SG Blocks, Inc. (“SG Blocks”) (in payment of the
Loan) until the amount distributable to the Managing Member which is paid over to SG Blocks hereunder is equal to an amount sufficient
for the Managing Member to pay the outstanding principal and interest due under the Loan in full (taking into account the Make-Whole Payment
in Section 1(c) of this Letter Agreement).

 

    D-1

     

    

 

(c) Pursuant
to an existing arrangement among the Members the first $200,000 of distributions otherwise payable to NAIS II LLC under Sections 4.02(a)(iii),
(iv), and (v) of the LLC Agreement are instead payable to Managing Member (the “Make-Whole Payments”). In lieu of distributing
the Make-Whole Payments to Managing Member, the Managing Member shall cause the Company to direct such distribution to SG Blocks in payment
of outstanding principal and interest under the Loan (taking into account amounts paid to SG Blocks under Section 1(b) of this
Letter Agreement).

 

2. ACKNOWLEDGEMENT,
CONSENT, AND AGREEMENT TO DISTRIBUTION STIPULATIONS. The Managing Member, in its capacity as managing member of the Company, acknowledges,
consents to, and agrees to abide by the Distribution Stipulations.

 

3. PAYMENTS
WITH RESPECT TO THE LOAN. The parties acknowledge and agree that certain of the Promissory Notes (as defined in the Settlement Agreement)
are payable to SG Blocks while another is payable to Paul Galvin. Notwithstanding the foregoing, each of SG Blocks and Paul Galvin acknowledge
and agree that all payments to be made pursuant to Section 1(b) and (c) may be made directly to SG Blocks, who will accept
such payments as agent for itself and for Paul Galvin.

 

4. BINDING
AGREEMENT; ASSIGNMENT. This Letter Agreement is binding upon the parties hereto and will inure to the benefit of their respective
successors and permitted assigns. No party may assign this Letter Agreement without the prior written consent of each of the other parties
hereto.

 

5. GOVERNING
LAW; VENUE: JURISDICTION. This Letter Agreement shall be governed by and construed in accordance with the terms set forth in Section
8(f) of the Settlement Agreement. The jurisdiction and venue provisions set forth in Sections 8(h) of the Settlement Agreement shall apply
with respect to any action, suit, or proceeding arising in whole or in part out of, under, or in connection with this Letter Agreement.

 

6. SEVERABILITY.
If any term or provision of this Letter Agreement or the application thereof under certain circumstances is declared invalid, illegal,
or unenforceable by a court of competent jurisdiction, such invalidity, illegality, or unenforceability shall not affect any other term
or provision of this Letter Agreement or any application thereof.

 

7. COUNTERPARTS.
This Letter Agreement may be executed in any number of counterparts, each of which shall be deemed an original, but all of which together
shall constitute one and the same instrument.

 

8. ELECTRONICALLY
TRANSMITTED SIGNATURES. Executed signature pages to this Letter Agreement may be delivered by facsimile or other electronic transmission
and any such signature page shall be deemed an original.

 

[Signatures appear on following page]

 

[The remainder of this page is intentionally left
blank]

 

    D-2

     

    

 

Please indicate your agreement with the foregoing
by executing this Letter Agreement where indicated below and returning it to Greg Jacobson by electronic mail at Greg@bcleecorp.com, with
an original sent by mail to the following address: Baker, Donelson, Bearman, Caldwell & Berkowitz, P.C., 1400 Shipt Tower, 420 20th
Street North, Birmingham, Alabama 35203, Attn: Allen Blow, Esq.

 

		Sincerely,
	 	 
	 	CPF GP 2019-1 LLC
	 	 
	 	By:	           
	 	Name: 	 
	 	Title:	 

 

AGREED TO AND ACCEPTED THIS DAY OF MAY 2021:

 

	 	SG BLOCKS, INC.
	 	 
	 	By:	              
	 	Name: 	 
	 	Title:	 
	 	 
	 	
	 	Paul Galvin

 

 

D-3

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