Document:

Exhibit 10.1

 

EMPLOYMENT
AGREEMENT

 

AGREEMENT
dated this 14th day of April, 2017 and effective as of the 1st day of May, 2017 (the “Effective Date”) by and between
TSR, Inc., a Delaware corporation, with offices at 400 Oser Avenue, Hauppauge, New York 11788 (hereinafter called the “Corporation”),
and Christopher Hughes, residing at 18 Westview Road, Northport, NY (hereinafter called “Executive”).

 

WITNESSETH:

 

WHEREAS,
Executive is employed by the Corporation pursuant to the terms of an employment agreement effective as of the 1st day
of March, 2012 between Executive and the Corporation, as amended by the amendment to employment agreement effective as of the
28th day of February, 2017 and as further amended by amendment no. 2 to employment agreement effective as of the 31st
day of March, 2017 (the “Prior Employment Agreement”);

 

WHEREAS,
the term of the Prior Employment Agreement is scheduled to expire, in accordance with its terms, on April 30, 2017; and

 

WHERAS,
the Corporation desires to continue to employ Executive following the expiration of the Prior Employment Agreement and Executive
is willing to undertake such continued employment on the terms and subject to the conditions hereinafter set forth.

 

NOW,
THEREFORE, in consideration of the mutual covenants hereinafter set forth, the parties hereto agree as follows:

 

1.            The
Corporation hereby continues to employ Executive as President of TSR Consulting Services, Inc. and Senior Vice President of the
Corporation or such other position as he may be appointed to by the Board of Directors, with the Corporation or any subsidiary
thereof to perform such duties on behalf of the Corporation and TSR Consulting Services, Inc. as the Chairman may from time to
time determine.

 

2.            Executive
hereby accepts such continued employment and agrees that throughout the period of his employment hereunder, he will devote his
full time, attention, knowledge and skills, faithfully, diligently and to the best of his ability, in furtherance of the business
of the Corporation and to promote the interest of the Corporation, will perform the duties assigned to him pursuant to Paragraph
1 hereof, subject, at all times, to the direction and control of the Chairman of the Board of Directors of the Corporation and
the Corporation’s Board of Directors. Executive shall at all times be subject to, observe and carry out such rules, and
regulations as the Corporation from time to time shall establish. During the period of Executive’s employment hereunder,
Executive shall not be entitled to additional compensation for serving in any office of the Corporation or any of its subsidiaries
to which he is elected, including without limitation as a director of the Corporation.

 

3.            Executive
shall be employed hereunder for a term of five (5) years, one (1) month commencing as of the 1st day of May, 2017 and ending on
the 31st day of May, 2022 (the “Term”), unless his employment is terminated prior to the expiration of the Term pursuant
to the provisions hereof.

 

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4.            (a)            As
full compensation for his services hereunder, the Corporation will pay to Executive a salary (the “Base Salary”) at
the rate of Three Hundred Fifty Thousand ($350,000) Dollars per annum, payable in equal installments in arrears no less frequently
than semi-monthly. The Corporation’s Compensation Committee of the Board of Directors (the “Compensation Committee”)
will review Executive’s Base Salary on an annual basis and the Board of Directors of the Corporation may, in its sole discretion,
increase Executive’s Base Salary. In addition, the Compensation Committee shall in good faith, after the end of each fiscal
year (commencing with the fiscal year ending May 31, 2018) consider and cause the Corporation to grant to Executive a discretionary
bonus, which may be based upon standards which the Chairman of the Corporation, subject to the approval of the Compensation Committee,
shall establish with Executive at the beginning of the each fiscal year commencing after the effective date of this Agreement
(i.e., commencing with the fiscal year beginning June 1, 2017) and which standards may be modified thereafter with the
approval of the Compensation Committee. The bonus provided for hereunder shall be payable by the Corporation to Executive within
120 days of the end of the applicable fiscal year, for the period to which such bonus relates, subject to Executive's continued
employment with the Corporation from the date hereof through the date that is the day immediately following the last day of such
applicable fiscal year. The Corporation shall pay to Executive as an advance payment of the bonus within 30 days after the end
of each fiscal quarter (other than the fourth fiscal quarter) an amount equal to the bonus which would have been earned through
the end of such fiscal quarter, based on any standards approved by the Compensation Committee, subject to Executive’s continued
employment with the Corporation on the applicable payment date. Each such advance payment of the bonus shall be approved by the
Compensation Committee unless it is paid in accordance with a formula approved in advance for such fiscal year. In the event that
following any fiscal quarter or following completion of the Corporation’s audited financial statements, any advance payment
of the bonus previously paid with respect to any fiscal year (or portion thereof) exceeds the amount that Executive is entitled
to through the end of such fiscal quarter or fiscal year, Executive shall promptly return such excess. Executive’s bonus
for the fiscal year ending May 31, 2017 only shall continue to be determined and paid in accordance with Paragraph 4(a) of the
Prior Employment Agreement.

 

(b)            In
addition, Executive shall be entitled to continue to participate, to the extent he is eligible under the terms and conditions
thereof, in any pension, profit-sharing, retirement, hospitalization, insurance, medical services, or other employee benefit plan
generally available to executives of the Corporation which may be in effect from time to time during the period of his employment
hereunder. The Corporation shall be under no obligation to institute or continue the existence of any such employee benefit plan.
Executive is entitled to executive medical benefits and also shall be entitled to a car (leased or owned at sole discretion of
the Corporation) in such amounts for the car as shall be determined by the Board of Directors of the Corporation. Any or all of
such entitlements in the preceding sentence may be discontinued at the end of any contract year at the discretion of the Chairman.

 

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5.            The
Corporation shall reimburse Executive for all expenses reasonably incurred by him in connection with the performance of his duties
hereunder and in connection with the business of the Corporation, upon the submission to the Corporation of appropriate vouchers
therefore and approval thereof by the Treasurer of the Corporation. Such reimbursements shall be subject to the expense reimbursement
policies of the Corporation, which are in effect from time to time. Executive shall be entitled to three (3) weeks’ vacation
time per annum in accordance with the regular procedures of the Corporation governing executive officers as determined from time
to time by the Corporation's Board of Directors.

 

6.            (a)            Notwithstanding
any provision contained herein to the contrary, if on or after the date hereof and prior to the end of the Term, Executive is
terminated for “Cause” (as defined below) then the Board of Directors of the Corporation shall have the right, on
behalf of the Corporation, to give notice of termination of Executive’s services hereunder as of a date to be specified
in such notice and this Agreement shall terminate as of the date so specified. Termination for “Cause” shall mean
Executive shall (i) be convicted of, or plead guilty or nolo contendere to, any crime constituting a felony, (ii) engage
in willful misconduct that is materially injurious to the Corporation, (iii) commit an act of fraud against the Corporation or
(iv) materially breach any term of this Agreement or any written policy established by the Corporation’s Board of Directors
and fail to correct such breach within ten days after written notice of commission thereof. For purposes of the definition of
“Cause” above, no act or failure to act, on the part of Executive, shall be considered “willful” unless
it is done, or omitted to be done, by Executive in bad faith. Any act, or failure to act, based upon authority given by the Board
of Directors of the Corporation or based upon the advice of counsel for Corporation shall be conclusively presumed to be done,
or omitted to be done, by Executive in good faith. Executive’s termination of employment shall not be for “Cause”
unless and until there shall have been a resolution duly adopted by the Board of Directors of the Corporation finding that, in
the good faith opinion of such Board of Directors, the conduct or events described in any of the subparagraphs (i) through (iv)
above have been engaged in or occurred, as applicable.

 

(b)            If,
during the Term, Executive is unable to perform his duties hereunder on account of illness, accident or other physical or mental
incapacity and such illness or other incapacity shall continue for a period of six (6) consecutive months or an aggregate of one
hundred and eighty (180) days in any consecutive twelve (12) month period, the Corporation shall have the right, on fifteen (15)
days written notice (given after such period) to Executive, to terminate this Agreement. In such event, the Corporation shall
be obligated to pay to Executive his Base Salary and approved expenses for the calendar month in which such termination occurs.
However, if prior to the date specified in such notice, Executive's illness or incapacity shall have terminated and he shall have
taken up the performance of his duties hereunder, Executive shall be entitled to resume his employment hereunder, as though such
notice had not been given.

 

(c)            In
the event of Executive's death during the Term, this Agreement shall terminate immediately, and Executive's legal representatives
shall be entitled to receive his Base Salary for the calendar month during which his death shall have occurred together with any
unpaid, approved expenses as contemplated under Paragraph 5 and as may otherwise be provided under any insurance policy or similar
instrument.

 

(d)            In
the event that this Agreement is terminated for “Cause” pursuant to Paragraph 6(a), then Executive shall be entitled
to receive only his Base Salary for the month in which such termination shall take effect.

 

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(e)            The
Board of Directors of the Corporation may, on behalf of the Corporation, terminate this Agreement and Executive’s employment
hereunder for any reason other than as provided under Paragraph 6(a), (b), (c), or (d) upon thirty (30) days’ written notice
from the Board of Directors of the Corporation (on behalf of the Corporation) to Executive and, in such event, provided that any
such employment termination is due solely to an involuntary separation from service (within the meaning of Section 409A of the
Code (as defined below)) of Executive, the Corporation shall be obligated to pay to Executive an amount equal to any unpaid, approved
expenses as contemplated under Paragraph 5 and, subject to Executive executing and not revoking during any applicable revocation
period a general release of all claims against the Corporation and its affiliates in a form reasonably acceptable to the Corporation
(the “Release”) within sixty (60) days of such termination of employment, (i) a severance payment equal to the sum
of (A) two (2) year's salary at the Base Salary plus (B) two (2) times his bonus for the then current fiscal year, or if that
amount cannot be determined, two (2) times the amount of the bonus paid in the prior fiscal year (collectively, the “Severance
Payment”); provided, further, that the portion of such Severance Payment that is equal to the Installment Amount (as defined
herein) shall be payable in forty-eight (48) equal semi-monthly installments pursuant to the Corporation's normal and customary
payroll procedures; provided, however, that (subject to Paragraph 14(a) below) the first such installment shall be made on the
Corporation’s first regular pay date following the date that the Release becomes effective (and is no longer subject to
revocation) and shall include all amounts that would have been paid on or prior to the actual commencement date of such payments
had the installments commenced on the first pay date following Executive's date of employment termination; and provided, further,
that the remaining portion of such Severance Payment (i.e., the amount equal to the Severance Payment less the Installment
Amount) shall be paid, in a lump sum, on the Corporation’s first regular pay date following the date that the Release becomes
effective (and is no longer subject to revocation) and (ii) continued group health insurance (i.e., group medical and dental
insurance) benefits for Executive in accordance with the terms of the applicable group health insurance plans of the Corporation,
in which Executive participated immediately prior to such termination, as in effect from time to time until the earlier of the
second anniversary of Executive's employment termination date or the date Executive is or becomes eligible for comparable coverage
under the group health insurance plans of another employer (the “Continued Coverage Period”); provided, that, to the
extent such group health insurance coverage is not permissible either by law or the applicable insurance plan or such coverage
would cause the Corporation to incur any excise tax, reimburse Executive on the first business day of every month during the first
eighteen (18) months of the Continued Coverage Period for the COBRA group health insurance continuation premiums incurred by Executive,
and reimburse Executive thereafter for the remainder of the Continued Coverage Period for the premium costs incurred by Executive
for comparable health insurance coverage reasonably acceptable to the Corporation; provided that such monthly reimbursements by
the Corporation of Executive’s COBRA group health care continuation premiums and Executive’s premium cost for comparable
health insurance coverage, as applicable, shall not exceed the Initial COBRA Cost (as defined below). As used herein: (A) “Initial
COBRA Cost” means the monthly cost of COBRA for Executive’s continued participation in the Corporation’s group
health and dental insurance plans (to the extent he participated in such group health insurance plans on the date of Executive’s
employment termination) in effect as of the date of Executive’s employment termination; and (B) “Installment Amount”
means, on the date of Executive's employment termination, the amount that is the lesser of (i) two times Executive's then annual
compensation and (ii) two times the limit on compensation set forth in Section 401(a)(17) of the Code.

 

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7.            In
the event that during the Term, either Executive’s employment is terminated without Cause by the Corporation during the
six month period prior to, or within one year after, a Change in Control (as defined below) or Executive resigns from his employment
with the Corporation for Good Reason (as defined below) upon written notice to the Corporation (which written notice shall be
in accordance with the definition of Good Reason) on, or within one year after, a Change in Control:

 

(a)            (i)            the
Corporation shall pay to Executive his full salary through the date of termination at the Base Salary in effect at the time notice
of termination or resignation for Good Reason, as applicable, is given plus his bonus prorated through the date of termination;
and

 

(ii)            subject
to Executive executing and not revoking during any applicable revocation period the Release within sixty (60) days of such termination
of employment, in lieu of any further salary or bonus payments to Executive for periods subsequent to the date of termination,
the Corporation shall pay, on the Corporation’s first regular pay date following the date that the Release becomes effective
(and is no longer subject to revocation) as severance pay in a lump sum to Executive, an amount equal to:

 

(A)            two
(2) times Executive’s annual Base Salary (at the Base Salary in effect at the date of termination); plus

 

(B)            two
(2) times Executive’s bonus for the then current fiscal year, or if that amount cannot be determined, two (2) times the
amount of the bonus paid in the prior fiscal year.

 

The
sum of the amounts set forth above in clauses (a)(ii)(A) and (a)(ii)(B) of this Paragraph 7 shall be referred to herein as the
“Enhanced Severance Amount.”

 

(iii)            the
Corporation will provide continued group health insurance benefits for Executive in accordance with the terms of clause (e)(ii)
of Paragraph 6 of this Agreement.

 

(b)            As
used herein, the term “Change in Control” shall mean:

 

		(i)	any
                                         “person” or “group” (as such terms are used in Sections 13(d)
                                         and 14(d) of the Securities Exchange Act of 1934 (the “Exchange Act”), which
                                         is not currently a person who controls (within the meaning of Rule 12b-2 promulgated
                                         under the Exchange Act), individually or as a member of a group, the Corporation, is
                                         or becomes (other than, directly or indirectly, as a result of (A) the death of either
                                         Joseph Hughes or Winifred Hughes or (B) the transfer of securities of the Corporation
                                         by Joseph Hughes and/or Winifred Hughes to (i) any entity owned or controlled, directly
                                         or indirectly, by Joseph Hughes and/or Winifred Hughes or (ii) a trust or similar vehicle)
                                         the “beneficial owner” (as defined in Rule 13d-3 promulgated under the Exchange
                                         Act), directly or indirectly, of securities of the Corporation representing more than
                                         50% of the combined voting power of the Corporation’s then outstanding securities;

 

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		(ii)	the
                                         consummation of a merger or consolidation involving the Corporation resulting in a change
                                         of ownership of a majority of the outstanding shares of capital stock of the Corporation,

 

		(iii)	the
                                         shareholders of the Corporation approve a plan of liquidation or dissolution of the Corporation,
                                         or

 

		(iv)	the
                                         sale or disposition by the Corporation of all or substantially all the Corporation's
                                         assets.

 

(c)            As
used in herein, “Good Reason” means the occurrence of any of the following, in each case, without Executive’s
prior consent: (i) a material breach by the Corporation of the terms of this Agreement; (ii) a material diminution in Executive’s
authority, duties or responsibilities; or (iii) a relocation by the Corporation of Executive’s principal place of business
for the performance of his duties under this Agreement to a location that is anywhere outside of a 100 mile radius of the Borough
of Manhattan. “Good Reason” shall not be deemed to exist, however, unless (A) Executive shall have given written notice
to the Corporation specifying in reasonable detail the Corporation’s acts or omissions that Executive alleges constitute
“Good Reason” within sixty (60) days after the first occurrence of such circumstances (or, if later, the date on which
Executive knows or reasonably should have known of the occurrence of such circumstances) and the Company shall have failed to
cure any such act or omission within sixty (60) days of receipt of such written notice, and (B) Executive actually terminates
employment within thirty (30) days following the expiration of the Company’s cure period as set forth above. Otherwise,
any claim of such circumstances as “Good Reason” shall be deemed irrevocably waived by Executive.

 

(d)            The
severance payment and benefits under this Paragraph 7(a)(ii) above are in lieu of (and not in addition to) any severance payment
and benefits under 6(e) above. Accordingly, to the extent Executive receives any payment(s) under Paragraph 6(e) above, the Enhanced
Severance Amount shall be reduced by the amount of any payment(s) already received by Executive under Paragraph 6(e).

 

8.            The
Corporation and Executive entered into a Maintenance of Confidence and Non-Compete Agreement on or about March 1, 2012, the terms
of which are hereby expressly incorporated into this Agreement, provided, however, that the Maintenance of Confidence and Non-Compete
Agreement shall continue to be effective notwithstanding the expiration of the Prior Employment Agreement and any termination
of Executive’s employment thereunder and shall continue in effect upon expiration or earlier termination of this Agreement,
in each case, pursuant to the terms of the Maintenance of Confidence and Non-Compete Agreement.

 

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9.            (a)            The
Corporation shall have the right from time to time to purchase, increase, modify or terminate insurance policies on the life of
Executive for the benefit of the Corporation, in such amounts as the Corporation shall determine in its sole discretion.

 

(b)            In
connection with Paragraph 9(a) above, Executive shall, at such time or times and at such place or places as the Corporation may
reasonably direct, submit himself to such physical examinations and Executive shall deliver such documents as the Corporation
may deem necessary or desirable.

 

10.          Executive
shall hold in a fiduciary capacity for the benefit of the Corporation all information, knowledge and data relating to or concerned
with its operations, sales, business and affairs, and he shall not, at any time hereafter, use, disclose or divulge any such information,
knowledge or data to any person, firm or corporation other than the Corporation or its designees or except as may otherwise be
required in connection with the business and affairs of the Corporation.

 

11.          The
parties hereto acknowledge that Executive’s services are unique and that, in the event of a breach by Executive of any of
his obligations under this Agreement, the Corporation may not have an adequate remedy at law. Accordingly, in the event of any
such breach or threatened breach by Executive, the Corporation shall be entitled to seek such equitable and injunctive relief
as may be available to restrain Executive from the violation of the provisions thereof. Nothing herein shall be construed as prohibiting
the Corporation from pursuing any other remedies at law or in equity for such breach or threatened breach, including the recovery
of damages and the immediate termination of the employment of Executive hereunder.

 

12.          This
Agreement together with the Maintenance of Confidence and Non-Compete Agreement, constitute the entire agreement of the parties
hereto with respect to the subject matter hereof and no amendment or modification hereof shall be valid or binding unless made
in writing and signed by the party against whom enforcement thereof is sought.

 

13.          Any
notice required, permitted or desired to be given pursuant to any of the provisions of this Agreement shall be deemed to have
been sufficiently given or served for all purposes if delivered in person or sent by certified mail, return receipt requested,
postage and fees prepaid as follows:

 

If
to the Corporation at:

 

Chairman
of the Board

TSR,
Inc.

400
Oser Avenue Suite 150

Hauppauge,
New York 11788

 

With
a copy to:

 

Mr.
John Sharkey

Vice
President of Finance

TSR,
Inc.

400
Oser Avenue Suite 150

Hauppauge,
New York 11788

 

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If
to Executive at:

 

Mr.
Christopher Hughes

18
Westview Road

Northport,
New York

 

Either
of the parties hereto may at any time and from time to time change the address to which notice shall be sent hereunder by notice
to the other party given under this Paragraph 13. The date of the giving of any notice sent by mail shall be the date of the posting
of the mail.

 

14.           (a)            If
at the time of any separation from service, Executive is a "specified employee" within the meaning of Section 409A(a)(2)(B)(i)
of the Internal Revenue Code of 1986 (as amended) (the “Code”) and regulations thereunder, to the minimum extent required
to satisfy Section 409A(a)(2)(B)(i) of the Code and regulations thereunder, any payment or provision of benefits to Executive
in connection with his separation from service (as determined for purposes of Section 409A of the Code) shall be postponed and
paid in a lump sum on the first business day following the date that is six months after Executive's separation from service (or
the date of Executive’s death if earlier) (the “409A Deferral Period”), and the remaining payments due to be
made in installments or periodically after the 409A Deferral Period shall be made as otherwise scheduled. Further, notwithstanding
anything set forth in Paragraph 6(e) or Paragraph 7 above to the contrary, if the 60 day period in which the Release must become
effective (and no longer subject to revocation) covers more than one calendar year, then (a) if Paragraph 6(e) above is applicable,
the first payment of the Installment Amount will commence, and the amount equal to the Severance Payment less the Installment
Amount will be paid, in the second calendar year (on the first regular pay date of such calendar year following the date that
Release becomes effective is no longer subject to revocation) and (b) if Paragraph 7 is applicable, the Enhanced Severance Payment
will be paid in the second calendar year (on the first regular pay date of such calendar year following the date that the Release
becomes effective and is no longer subject to revocation), in each case, unless such later date is required by this Paragraph
14(a) above), regardless of whether the Release becomes effective in the first or second calendar year.

 

(b)            References
under this Agreement to Executive's termination of employment shall be deemed to refer to the date upon which Executive has experienced
a “separation from service” within the meaning of Section 409A of the Code. All payments made under this Agreement
shall constitute "separate payments" for purposes of Section 409A of the Code. To the extent any reimbursements or in-kind
benefits due to Executive under this Agreement constitute "deferred compensation" under Section 409A of the Code, any
such reimbursements or in-kind benefits shall be paid to Executive in a manner consistent with Treas. Reg. Section 1.409A-3(i)(l)(iv).

 

15.          Neither
this Agreement nor the right to receive any payments hereunder may be assigned by Executive. This Agreement shall be binding upon
Executive, his heirs, executors and administrators and upon the Corporation, its successors and assigns.

 

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16.          No
course of dealing nor any delay on the part of the Corporation in exercising any rights hereunder shall operate as a waiver of
any such rights. No waiver of any default or breach of this Agreement shall be deemed a continuing waiver or a waiver of any other
breach or default.

 

17.          This
Agreement shall be governed, interpreted and construed in accordance with the laws of the State of New York applicable to agreements
entered into and to be performed entirely therein.

 

18.            If
any clause, paragraph, section or part of this Agreement shall be held or declared to be void, invalid or illegal, for any reason,
by any court of competent jurisdiction, such provisions shall be ineffective but shall not in any way invalidate or affect any
other clause, paragraph, section or part of this Agreement.

 

19.          Notwithstanding
any other provision of this Agreement, the Corporation may withhold from amounts payable under this Agreement all federal, state,
local and foreign taxes that are required to be withheld by applicable laws or regulations.

 

20.          Executive
acknowledges that he is not subject to any agreement, which would in any way restrict him from carrying out his employment as
contemplated hereunder.

 

21.          Effective
as of the Effective Date, this Agreement supersedes the Prior Employment Agreement. However, in the event Executive does not remain
employed by the Corporation through the last day of the term of the Prior Employment Agreement, this Agreement shall be deemed
null and void ab initio.

 

[Signatures
appear on the following page]

 

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IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of the day in year first above written.

 

	Executive	 
	 	 
	/s/ Christopher Hughes	 
	Christopher Hughes	 
	 	 
	TSR, Inc.	 
	 	 	 
	By:	/s/ Joseph F. Hughes       	 
	Name:	Joseph F. Hughes	 
	Title:	Chairman	 

 

 

10Exhibit 10.9 

 

Nxt-ID,
Inc.

Placement Agency Agreement

Common Stock and Warrants

 

July 30,
2015

 

Northland
Securities, Inc.

45 South
Seventh Street, Suite 2000 

Minneapolis,
Minnesota 55402

  

Ladies and Gentlemen:

  

Nxt-ID,
Inc., a Delaware corporation (the “Company”), proposes, subject to the terms and conditions stated in this
Placement Agency Agreement (this “Agreement”), the Securities Purchase Agreement (the “Securities
Purchase Agreement”), dated July 30, 2015, between the Company and the investors identified therein (each, an “Investor”
and collectively, the “Investors”), and the Warrant Purchase Agreement (the “Warrant Purchase Agreement”
and together with the Securities Purchase Agreement, the “Purchase Agreements”), dated July 30, 2015, between
the Company and the Investors, to (i) issue and sell up to an aggregate of 1,721,429 of shares (the “Shares”)
of the Company’s common stock, par value $0.0001 per share (the “Common Stock”) in a public offering
and (ii) issue and sell warrants (the “Warrants”), which are exercisable for shares of Common Stock (the “Warrant
Shares” and together with the Shares and the Warrants, the “Securities”) in a private placement.
The Company hereby confirms its several agreements with Northland Securities, Inc. (“Northland” or the “Placement
Agent”) as set forth below. The Shares are more fully described in the Prospectus (as defined below).

 

1.                 
Agreement to Act as Placement Agent; Delivery and Payment. On the basis of the representations, warranties and agreements
of the Company herein contained, and subject to the terms and conditions set forth in this Agreement:

 

(a)               
The Company hereby engages the Placement Agent, as the exclusive agent of the Company, to, on a commercially reasonable efforts
basis, solicit offers to purchase the Securities from the Company on the terms and subject to the conditions set forth in the
Purchase Agreements and Prospectus (as defined below). The Placement Agent shall use commercially reasonable efforts to assist
the Company in obtaining performance by each Investor whose offer to purchase the Securities was solicited by the Placement Agent
and accepted by the Company, but the Placement Agent shall not, except as otherwise provided in this Agreement, have any liability
to the Company in the event any such purchase is not consummated for any reason. In connection with its commercially reasonable
efforts to solicit offers to purchase the Securities, the Placement Agent shall only communicate information regarding the Company
to potential purchasers of the Securities that is consistent with the information contained in the Prospectus. Under no circumstances
will the Placement Agent or any of its affiliates be obligated to underwrite or purchase any of the Securities for its own account
or otherwise provide any financing. The Placement Agent shall act solely as the Company’s agent and not as principal. No
Placement Agent shall have any authority to bind the Company with respect to any prospective offer to purchase Securities , and
the Company shall have the sole right to accept offers to purchase Securities and may reject any such offer, in whole or in part.
The Placement Agent has the right, in its discretion, without notice to the Company, to reject any offer to purchase Securities
received by it, in whole or in part, and any such rejection shall not be deemed a breach of this Agreement.

 

    	 		 

     

    

 

(b)              
As compensation for services rendered by the Placement Agent hereunder, on the Closing Date (as defined below), the Company shall
pay or cause to be paid to the Placement Agent by wire transfer of immediately available funds to an account or accounts designated
by the Placement Agent, an aggregate amount equal to 6% of the gross proceeds received by the Company from the sale of the Securities
to Investors (the “Agency Fee”). Such amounts may be deducted from the payment made by the Investor(s) to the
Company and paid directly to the Placement Agent on the Closing Date. As compensation for services rendered by the Placement Agent
hereunder, on the Closing Date, the Company shall sell to the Placement Agent, for an aggregate purchase price of $50, warrants
(the “Agent’s Warrants”) to purchase 86,071.45 shares of Common Stock in substantially the form attached
hereto as Exhibit A. The Agent’s Warrants and the shares acquirable upon exercise thereof will be subject to the
restrictions provided for under FINRA Rule 5110(g)(1). The Placement Agent may allow concessions, or pay commissions, to other
dealers participating in the offering of the Securities.

 

(c)                
The Shares are being sold to the Investors at a price of $1.75 per share as set forth on the cover page of the Prospectus (as
defined below) and the Warrants are being sold to the Investors at a price of $0.0000001 per warrant. The purchases of Shares
and Warrants by the Investors shall be evidenced by the execution of the Purchase Agreements by each of the parties thereto in
the form attached hereto as Exhibit B.

 

(d)              
Prior to the earlier of (i) the date on which this Agreement is terminated and (ii) the Closing Date,
the Company shall not, without the prior written consent of the Placement Agent, solicit or accept offers to purchase shares of
the Common Stock (other than pursuant to the exercise of options or warrants to purchase shares of Common Stock that are outstanding
at the date hereof or are granted in the ordinary course to directors, officers or employees of the Company under the Company’s
equity incentive plans) otherwise than through the Placement Agent in accordance herewith.

 

(e)               
No Securities which the Company has agreed to sell pursuant to this Agreement and the Purchase Agreements shall be deemed to have
been purchased and paid for, or sold by the Company, until such Securities shall have been delivered to the Investor purchasing
such Securities against payment therefor by such Investor. If the Company shall default in its obligations to deliver Securities
to an Investor whose offer it has accepted, the Company shall indemnify and hold the Placement Agent harmless against any loss,
claim, damage or liability directly or indirectly arising from or as a result of the default by the Company in accordance with
the procedures set forth in Section 6(c) hereof.

 

    	 	2	 

     

    

 

(f)                
Payment of the purchase price for, and delivery of the Securities shall be made at a closing (the “Closing”)
at a time and date as the Placement Agent and the Company determine pursuant to Rule 15c6-1(a) under the Securities Exchange Act
of 1934, as amended (the “Exchange Act”) (such date of payment and delivery being herein referred to as the
“Closing Date”). Unless otherwise specified in the Purchase Agreements, the Securities will be settled through
the facilities of The Depository Trust Company’s DWAC system. Subject to the terms hereof, payment of the purchase price
for the Securities shall be made to the Company in the manner set forth below by Federal Funds wire transfer, against delivery
of the Securities to such persons and shall be registered in the name or names and shall be in such denominations as the Placement
Agent may request at least one business day before the Closing Date. Payment of the purchase price for the Securities to be purchased
by Investors shall be made by such Investors directly to the Company. Subject to the terms and conditions hereof, on the Closing
Date, the Company shall pay to the Placement Agent the amount of expenses for which each such Placement Agent is entitled to reimbursement
pursuant hereto. At least one day prior to the Closing Date, the Placement Agent shall submit to the Company its bona fide estimate
of the amount of expenses for which it is entitled to reimbursement pursuant hereto. As soon as reasonably practicable after the
Closing Date, the Placement Agent shall submit to the Company its expense reimbursement invoice and the Company or such Placement
Agent, as applicable, shall make any necessary reconciling payment(s) within thirty days of receipt of such invoices. The Warrants
will be physically delivered to the Investors.

 

2.                 
Representations and Warranties of the Company. The Company represents and warrants to the Placement Agent as of
the date hereof and as of the Closing Date, and agrees with the Placement Agent, as follows:

 

(a)               
Filing of Registration Statement. The Company has prepared and filed, in conformity with the requirements of the Securities
Act of 1933, as amended (the “Securities Act”), and the published rules and regulations thereunder (the “Rules
and Regulations”) adopted by the Securities and Exchange Commission (the “Commission”), a registration
statement, including a prospectus, on Form S-3 (File No. 333-203637), which became effective as of May 14, 2015, relating to the
Shares and the offering thereof (the “Offering”) from time to time in accordance with Rule 415(a)(1)(x) of
the Rules and Regulations, and such amendments thereof as may have been required to the date of this Agreement. The term “Registration
Statement” as used in this Agreement means the aforementioned registration statement, as amended at the time of such
registration statement’s effectiveness for purposes of Section 11 of the Securities Act, (the “Effective Time”),
including (i) all documents filed as a part thereof or incorporated or deemed to be incorporated by reference therein and
(ii) any information in the corresponding Base Prospectus (as defined below) or a prospectus supplement filed with the
Commission pursuant to Rule 424(b) under the Securities Act, to the extent such information is deemed pursuant to Rule 430A (“Rule
430A”), 430B (“Rule 430B”) or 430C (“Rule 430C”) under the Securities
Act to be a part thereof at the Effective Time. If the Company has filed an abbreviated registration statement to register additional
shares of Common Stock pursuant to Rule 462(b) under the Rules and Regulations (the “Rule 462(b) Registration Statement”),
then any reference herein to the term “Registration Statement” shall also be deemed to include such Rule 462(b)
Registration Statement. For purposes of this Agreement, all references to the Registration Statement, the Base Prospectus, any
Preliminary Prospectus (as defined below), the Prospectus (as defined in below) or any amendment or supplement to any of the foregoing
shall be deemed to include the copy filed with the Commission pursuant to its Electronic Data Gathering, Analysis and Retrieval
System (“EDGAR”). All references in this Agreement to amendments or supplements to the Registration Statement,
the Base Prospectus, any Preliminary Prospectus or the Prospectus shall be deemed to mean and include the subsequent filing of
any document under the Exchange Act prior to completion of distribution of the Shares and which is deemed to be incorporated therein
by reference therein or otherwise deemed to be a part thereof.

 

    	 	3	 

     

    

 

(b)              
Effectiveness of Registration Statement; Certain Defined Terms. The Company and the transactions contemplated by this Agreement
meet the requirements and comply with the conditions for the use of Form S-3 under the Securities Act. The Registration Statement
meets, and the offering and sale of the Shares as contemplated hereby complies with, the requirements of Rule 415 under the Securities
Act (including, without limitation, Rule 415(a)(5) of the Rules and Regulations). The Company has complied, to the Commission’s
satisfaction, with all requests of the Commission for additional or supplemental information. No stop order preventing or suspending
use of the Registration Statement, any Preliminary Prospectus or the Prospectus or the effectiveness of the Registration Statement
has been issued by the Commission, and no proceedings for such purpose pursuant to Section 8A of the Securities Act against the
Company or related to the Offering have been instituted or are pending or, to the Company’s knowledge, are contemplated
or threatened by the Commission, and any request received by the Company on the part of the Commission for additional information
has been complied with. As used in this Agreement:

 

	 	(1)	“Base
    Prospectus” means the prospectus included in the Registration Statement at the Effective Time.

 

	 	(2)	“Disclosure
    Package” means (i) the Statutory Prospectus, (ii) each Issuer Free Writing Prospectus, if any, filed
    or used by the Company on or before the Time of Sale and listed on Schedule II hereto (other than a roadshow that is
    an Issuer Free Writing Prospectus but is not required to be filed under Rule 433 of the Rules and Regulations) and (iii)
    the pricing and other information as set forth on Exhibit B hereto, all considered together.

 

	 	(3)	“Issuer
    Free Writing Prospectus” means any “issuer free writing prospectus,” as defined in Rule 433 of the Rules
    and Regulations relating to the Shares in the form filed or required to be filed with the Commission or, if not required to
    be filed, in the form retained in the Company’s records pursuant to Rule 433(g) of the Rules and Regulations.

 

	 	(4)	“Preliminary
    Prospectus” means any preliminary prospectus supplement, subject to completion, relating to the Shares, filed by
    the Company with the Commission pursuant to Rule 424(b) under the Securities Act for use in connection with the offering and
    sale of the Shares, together with the Base Prospectus attached to or used with such preliminary prospectus supplement.

 

	 	(5)	“Prospectus”
    means the final prospectus supplement, relating to the Shares, filed by the Company with the Commission pursuant to Rule 424(b)
    under the Securities Act on or before the second business day after the date hereof (or such earlier time as may be required
    under the Securities Act), in the form furnished by the Company to the Placement Agent, for use in connection with the offering
    and sale of the Shares that discloses the public offering price and other final terms of the Shares, together with the Base
    Prospectus attached to or used with such final prospectus supplement.

 

    	 	4	 

     

    

 

	 	(6)	“Statutory
    Prospectus” means the Preliminary Prospectus, if any, and the Base Prospectus, each as amended and supplemented
    immediately prior to the Time of Sale, including any document incorporated by reference therein and any prospectus supplement.

 

	 	(7)	“Time
    of Sale” means 4:30 p.m., New York City time, on the date of this Agreement.

  

(c)               
Contents of Registration Statement. The Registration Statement complied when it became effective, complies, as amended
or supplemented, at the Time of Sale and at all times during which a prospectus is required by the Securities Act to be delivered
(whether physically or through compliance with Rule 172 under the Securities Act or any similar rule) in connection with any sale
of Shares (the “Prospectus Delivery Period”), will comply, in all material respects, with the requirements of the
Securities Act and the Rules and Regulations; the Registration Statement did not, as of the Effective Time, contain an untrue
statement of a material fact or omit to state a material fact required to be stated therein or necessary in order to make the
statements therein not misleading; provided that the Company makes no representation or warranty in this subsection
(c) with respect to statements in or omissions from the Registration Statement in reliance upon, and in conformity with, written
information furnished to the Company by the Placement Agent specifically for inclusion therein, which information the parties
hereto agree is limited to the Placement Agent’s Information (as defined in Section 7 hereof).

 

(d)               
Contents of Prospectus. The Prospectus will comply, as of the date that it is filed with the Commission, the date of its
delivery to Investors and at all times during the Prospectus Delivery Period, in all material respects, with the requirements
of the Securities Act; at no time during the period that begins on the date the Prospectus is filed with the Commission and ends
at the end of the Prospectus Delivery Period will the Prospectus, as then amended or supplemented, include an untrue statement
of a material fact or omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances
under which they were made, not misleading, provided that the Company makes no representation or warranty with respect
to statements in or omissions from the Prospectus in reliance upon, and in conformity with, written information furnished to the
Company by the Placement Agent specifically for inclusion therein, which information the parties hereto agree is limited to the
Placement Agent’s Information. The Prospectus contains all required information under the Securities Act with respect to
the Shares and the distribution of the Shares.

 

(e)               
Incorporated Documents. Each of the documents incorporated or deemed to be incorporated by reference in the Registration
Statement, at the time such document was filed with the Commission or at the time such document became effective, as applicable,
complied, in all material respects, with the requirements of the Exchange Act, was filed on a timely basis with the Commission
and did not include an untrue statement of a material fact or omit to state a material fact necessary in order to make the statements
therein, in the light of the circumstances under which they were made, not misleading.

 

    	 	5	 

     

    

 

(f)                
Disclosure Package. The Disclosure Package, as of the Time of Sale, did not, and at the Closing Date will not, contain
any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary in order
to make the statements therein, in the light of the circumstances under which they were made, not misleading; provided
that the Company makes no representations or warranties in this subsection (f) with respect to statements in or omissions
from the Disclosure Package in reliance upon, and in conformity with, written information furnished to the Company by the Placement
Agent specifically for inclusion therein, which information the parties hereto agree is limited to the Placement Agent’s
Information.

 

(g)              
 Distributed Materials. Other than the Base Prospectus, any Preliminary Prospectus and the Prospectus, the Company
has not made, used, prepared, authorized, approved or referred to and will not make, use, prepare, authorize, approve or refer
to any “written communication” (as defined in Rule 405 under the Securities Act) that constitutes an offer to sell
or a solicitation of an offer to buy the Securities other than (i) any document not constituting a prospectus pursuant
to Section 2(a)(10)(a) of the Securities Act or Rule 134 under the Securities Act or (ii) the documents listed on Schedule
II hereto and other written communications approved in advance by the Placement Agent.

 

(h)              
Issuer Free Writing Prospectuses. Each Issuer Free Writing Prospectus, if any, conformed or will conform in all material
respects to the requirements of the Securities Act and the Rules and Regulations on the date of first use, and the Company has
complied or will comply with any filing requirements applicable to such Issuer Free Writing Prospectus pursuant to the Rules and
Regulations. Each Issuer Free Writing Prospectus, if any, when considered together with the Disclosure Package, as of its issue
date and at all subsequent times through the completion of the Prospectus Delivery Period did not, does not and will not include
any information that conflicted, conflicts or will conflict with the information contained in the Registration Statement, the
Statutory Prospectus or the Prospectus, including any document incorporated by reference therein and any prospectus supplement
deemed to be a part thereof that has not been superseded or modified, or includes an untrue statement of a material fact or omitted
or would omit to state a material fact required to be stated therein or necessary in order to make the statements therein, in
the light of the circumstances prevailing at the subsequent time, not misleading; provided that the Company makes no representation
or warranty with respect to statements in or omissions from any Issuer Free Writing Prospectus in reliance upon, and in conformity
with, written information furnished to the Company by the Placement Agent specifically for inclusion therein, which information
the parties hereto agree is limited to the Placement Agent’s Information.

 

(i)                 
Not an Ineligible Issuer. (i) At the earliest time after the filing of the Registration Statement that the Company
or another offering participant made a bona fide offer (within the meaning of Rule 164(h)(2) under the Securities Act) of the
Shares and (ii) at the date hereof, the Company was not and is not an “ineligible issuer,” as defined in Rule
405 under the Securities Act (“Rule 405”).

 

    	 	6	 

     

    

 

(j)                 
Due Organization; Good Standing. The Company has been duly organized and is validly existing as a corporation in good standing
under the laws of the State of Delaware, with the corporate power and authority to own its properties and to conduct its business
as it is currently being conducted and as described in the Registration Statement, the Prospectus and the Disclosure Package.
The Company is duly qualified to transact business and is in good standing as a foreign corporation or other legal entity in each
other jurisdiction in which its ownership or leasing of property or the conduct of its business requires such qualification, except
where the failure to be so qualified or in good standing or have such power or authority (i) would not reasonably be expected
to have, individually or in the aggregate, a material adverse effect upon, the business, operations, properties, financial condition,
results of operations or prospects of the Company and its subsidiaries, taken as a whole, or (ii) impair in any material
respect the power or ability of the Company to perform its obligations under this Agreement or to consummate any transactions
contemplated by the Agreement and the Purchase Agreements, including the issuance and sale of the Securities (any such effect
as described in clauses (i) or (ii), a “Material Adverse Effect”). Each subsidiary of the Company (each, a
“Subsidiary” and, collectively, the “Subsidiaries”) is duly incorporated or organized, validly
existing and in good standing under the laws of their jurisdiction of incorporation or organization, with the requisite power
and authority to own, lease and operate its properties, except where the failure to qualify or be in good standing would not reasonably
be expected to have a Material Adverse Effect. On a consolidated basis, the Company and its Subsidiaries conduct their business
as described in the Disclosure Package and the Prospectus and each Subsidiary is duly qualified to transact business and is in
good standing in each jurisdiction in which such qualification is required, whether by reason of the ownership or leasing of property
or the conduct of business, except where the failure to qualify or to be in good standing would not reasonably be expected to
have a Material Adverse Effect.

 

(k)              
Due Authorization and Enforceability. The Company has the full right, power and authority to enter into this Agreement
and the Purchase Agreements, and to perform and discharge its obligations hereunder and thereunder; and each of this Agreement
and the Purchase Agreements has been duly authorized, executed and delivered by the Company, and constitutes a valid, legal and
binding obligation of the Company, enforceable against the Company in accordance with its terms, except as rights to indemnity
hereunder may be limited by federal or state securities laws and except as such enforceability may be limited by applicable bankruptcy,
insolvency, reorganization or similar laws affecting the rights of creditors generally and subject to general principles of equity
and limitations on the granting of equitable remedies.

 

(l)                
The Securities. The issuance of the Shares, the Warrants, the Warrant Shares, the Agent’s Warrant and the shares
of Common stock underlying the Agent’s Warrants (the “Agent’s Warrants Shares”) has been duly and
validly authorized by the Company and, when issued, delivered and paid for in accordance with the terms of this Agreement and
the Purchase Agreements, will have been duly and validly issued and will be fully paid and nonassessable, will not be subject
to any statutory or contractual preemptive rights or other rights to subscribe for or purchase or acquire any shares of Common
Stock of the Company that have not been waived or complied with, and will conform in all material respects to the description
thereof contained in the Disclosure Package and the Prospectus and such description conforms in all material respects to the rights
set forth in the instruments defining the same.

 

    	 	7	 

     

    

 

(m)             
The Warrants. The issuance of the Warrants and the Warrant Shares upon exercise of the Warrants (assuming no change in
applicable law prior to the date the Agent’s Warrant Shares are issued), are and will be exempt from the registration and
prospectus delivery requirements of the Securities Act and have been or will be registered or qualified (or are or will be exempt
from registration and qualification) under the registration, permit or qualification requirements of all applicable state securities
laws.  Neither the Company, nor any of its affiliates, nor any person acting on its or their behalf, has directly or indirectly
made any offers or sales of any security or solicited any offers to buy any security under circumstances that would require registration
under the Securities Act of the issuance of the Warrants.  Upon the exercise of the Warrants pursuant to their terms, the
Warrant Shares will be quoted on the Principal Market.  The Agent may rely on any representations and warranties made by
the Company to the purchasers of the Warrants.

 

(n)           
Capitalization. The authorized capital stock of the Company consists of (i) 100,000,000 shares of Common Stock, of which
(A) 25,714,545 shares were issued and outstanding as of the date of this Agreement, and (B) 4,904,774 were reserved for issuance
upon the exercise or conversion, as the case may be, of outstanding options, warrants or other convertible securities as of the
date of this Agreement; and (ii) 10,000,000 shares of preferred stock, none of which were issued and outstanding as of the date
of this Agreement, and none are outstanding or reserved for issuance upon the exercise or conversion, as the case may be, of outstanding
options, warrants or other convertible securities. All issued and outstanding shares of Common Stock have been duly authorized
and validly issued, are fully paid and nonassessable, were not issued in violation of any preemptive rights or similar rights
to subscribe for or purchase securities, and, except as disclosed in the Company SEC Documents, have been issued and sold in compliance
with the registration requirements of federal and state securities laws or the applicable statutes of limitation have expired.
Except as set forth in the Disclosure Package and the Prospectus, there are no (i) outstanding rights (including, without limitation,
preemptive rights), warrants or options to acquire, or instruments convertible into or exchangeable for, any issued and unissued
shares of capital stock or other equity interest in the Company, or any contract, commitment, agreement, understanding or arrangement
of any kind to which the Company or its subsidiaries is a party and relating to the issuance or sale of any capital stock or convertible
or exchangeable security of the Company or its subsidiaries; or (ii) obligations of the Company to purchase redeem or otherwise
acquire any of its outstanding capital stock or any interest therein or to pay any dividend or make any other distribution in
respect thereof or other ownership interests of each Subsidiary of the Company (i) have been duly authorized and validly issued,
(ii) are fully paid and non-assessable and (iii) are owned by the Company directly or through Subsidiaries, free and clear of
any security interest, mortgage, pledge, lien, encumbrance, claim or equity except as described in the Disclosure Package and
the Prospectus and except for such security interests, mortgages, pledges, liens, encumbrances, claims or equities that would
not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. There are no anti-dilution or
price adjustment provisions, co-sale rights, registration rights, rights of first refusal or other similar rights contained in
the terms governing any outstanding security of the Company that will be triggered by the issuance of the Securities, the Agent’s
Warrants or the Agent’s Warrant Shares.

 

    	 	8	 

     

    

 

(o)              
No Conflict. The execution, delivery and performance by the Company of this Agreement and the Purchase Agreements, and
the consummation of the transactions contemplated hereby and thereby, including the issuance and sale of the Securities, the Agent’s
Warrants and the Agent’s Warrant Shares by the Company, will not conflict with or result in a breach or violation of, or
constitute a default under (nor constitute any event which with or without notice, lapse of time or both would result in any breach
or violation of or constitute a default under), give rise to any right of termination or other right or the cancellation or acceleration
of any right or obligation or loss of a benefit under, or give rise to the creation or imposition of any lien, encumbrance, security
interest, claim or charge upon any property or assets of the Company pursuant to (i) any indenture, mortgage, deed of trust,
loan agreement or other agreement or instrument to which the Company is a party or by which the Company or any of its properties
may be bound or to which any of its property or assets is subject, (ii) result in any violation of the provisions of the
charter or bylaws of the Company, or (iii) result in any violation of any law, statute, rule, regulation, judgment,
order or decree of any court or governmental agency or body, domestic or foreign, having jurisdiction over the Company or any
of its properties or assets, except in the case of clauses (i) and (iii) as would not, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect.

 

(p)              
No Consents Required. No approval, authorization, consent or order of or filing, qualification or registration with, any
court or governmental agency or body, foreign or domestic, which has not been made, obtained or taken and is not in full force
and effect, is required in connection with the Company’s execution, delivery and performance of this Agreement, the Warrants,
the Agent’s Warrants or the Purchase Agreements, the consummation by the Company of the transactions contemplated hereby
or thereby or the issuance and sale of the Securities, the Agent’s Warrants and the Agent’s Warrant Shares other than
(i) as may be required under the Securities Act (including the filing with the Commission of a prospectus supplement),
(ii) the filing of a Form 8-K disclosing the transaction contemplated hereby, (iii) any necessary qualification
of the Securities, the Agent’s Warrants and the Agent’s Warrant Shares under the securities or blue sky laws of the
various jurisdictions in which the Securities, the Agent’s Warrants and the Agent’s Warrant Shares are being offered
by the Placement Agent, or (iv) under the rules and regulations of the Financial Industry Regulatory Authority (“FINRA”).

 

(q)              
Preemptive Rights. There are no preemptive rights or other rights (other than rights which have been waived in writing
in connection with the transactions contemplated by this Agreement or otherwise satisfied) to subscribe for or to purchase any
shares of Common Stock or shares of any other capital stock or other equity interests of the Company, or any agreement or arrangement
between the Company and any of the Company’s stockholders, or to the Company’s knowledge, between or among any of
the Company’s stockholders, which grant special rights with respect to any shares of the Company’s capital stock or
which in any way affect any stockholder’s ability or right to alienate freely or vote such shares.

 

(r)                
Registration Rights. There are no contracts, agreements or understandings between the Company and any person granting such
person the right (other than rights which have been waived in writing in connection with the transactions contemplated by this
Agreement or otherwise satisfied) to require the Company to register any securities with the Commission.

 

    	 	9	 

     

    

 

(s)               
Independent Accountants. KPMG, LLP and Marcum LLC, whose reports on the consolidated financial statements of the Company
are incorporated by reference in the Registration Statement, the Prospectus and the Disclosure Package, is (i) an independent
public accounting firm within the meaning of the Securities Act, (ii) a registered public accounting firm (as defined
in Section 2(a)(12) of the Sarbanes-Oxley Act of 2002 (the “Sarbanes-Oxley Act”)), and (iii) to the
Company’s knowledge, not in violation of the auditor independence requirements of the Sarbanes-Oxley Act. Except as disclosed
in the Registration Statement and as pre-approved in accordance with the requirements set forth in Section 10A of the Exchange
Act, KPMG, LLP and Marcum LLC have not been engaged by the Company to perform any “prohibited activities” (as defined
in Section 10A of the Exchange Act).

 

(t)         Financial
Statements. The consolidated financial statements of the Company, together with the related schedules and notes thereto, set
forth or incorporated by reference in the Registration Statement, the Prospectus and the Disclosure Package comply in all material
respects with the applicable requirements of the Securities Act and the Exchange Act, as applicable, and present fairly in all
material respects (i) the financial condition of the Company as of the dates indicated and (ii) the consolidated
results of operations, stockholders’ equity and changes in cash flows of the Company for the periods therein specified;
and such financial statements and related schedules and notes thereto have been prepared in conformity with United States generally
accepted accounting principles, consistently applied throughout the periods involved (except as otherwise stated therein and subject,
in the case of unaudited financial statements, to the absence of footnotes and normal year-end adjustments). There are no other
financial statements (historical or pro forma) that are required to be included or incorporated by reference in the Registration
Statement, the Prospectus or the Disclosure Package; and the Company does not have any material liabilities or obligations, direct
or contingent (including any off-balance sheet obligations), not disclosed in the Registration Statement, the Disclosure Package
and the Prospectus; and all disclosures contained in the Registration Statement, the Disclosure Package and the Prospectus regarding
“non-GAAP financial measures” (as such term is defined by the rules and regulations of the Commission) comply with
Regulation G of the Exchange Act and Item 10(e) of Regulation S-K under the Securities Act, to the extent applicable, and present
fairly the information shown therein and the Company’s basis for using such measures.

 

(u)              
Absence of Material Changes. Subsequent to the respective dates as of which information is given in the Registration Statement,
the Statutory Prospectus and the Disclosure Package, and except as may be otherwise stated or incorporated by reference in the
Registration Statement, the Statutory Prospectus and the Disclosure Package, there has not been (i) any Material Adverse
Effect, (ii) any transaction which is material to the Company and out of the ordinary course of business, (iii)
any obligation, direct or contingent (including any off-balance sheet obligations), incurred by the Company, which is material
to the Company, (iv) any dividend or distribution of any kind declared, paid or made on the capital stock of the Company,
(v) any change in the capital stock (other than a change in the number of outstanding shares of Common Stock due to the
issuance of shares upon the exercise of outstanding options or warrants or the conversion of convertible indebtedness), or material
change in the short-term debt or long-term debt of the Company (other than upon conversion of convertible indebtedness) or any
issuance of options, warrants, convertible securities or other rights to purchase the capital stock (other than grants of stock
options under the Company’s stock option plans existing on the date hereof and consistent with past practice) of the Company.

 

    	 	10	 

     

    

 

(v)              
Legal Proceedings. There are no legal or governmental actions, suits, claims or proceedings pending or, to the Company’s
knowledge, threatened or contemplated to which the Company or any Subsidiary is or would be a party or of which any of their respective
properties is or would be subject at law or in equity, before or by any federal, state, local or foreign governmental or regulatory
commission, board, body, authority or agency, or before or by any self-regulatory organization or other non-governmental regulatory
authority which are required to be described in the Registration Statement, the Disclosure Package or the Prospectus or a document
incorporated by reference therein and are not so described therein, or which, singularly or in the aggregate, if resolved adversely
to the Company or any Subsidiary, would reasonably be likely to have a Material Adverse Effect or prevent or materially and adversely
affect the ability of the Company to consummate the transactions contemplated hereby. To the Company’s knowledge, no such
proceedings are threatened or contemplated by governmental authorities or threatened by other third parties.

 

(w)             
No Violation. Neither the Company nor any Subsidiary is in breach or violation of or in default (nor has any event occurred
which with notice, lapse of time or both would result in any breach or violation of, or constitute a default) (i) under
the provisions of its respective charter or bylaws (or analogous governing instrument, as applicable), (ii) in the
performance or observance of any term, covenant, obligation, agreement or condition contained in any indenture, mortgage, deed
of trust, bank loan or credit agreement or other evidence of indebtedness, or any license, lease, contract or other agreement
or instrument to which the Company or any Subsidiary is a party or by which any of their respective properties may be bound or
affected, or (iii) in the performance or observance of any statute, law, rule, regulation, ordinance, judgment, order or
decree of any court, regulatory body, administrative agency, governmental body, arbitrator or other authority having jurisdiction
over the Company or any Subsidiary or any of their respective properties, as applicable, except with respect to clauses (ii)
and (iii) to the extent any such breach, violation or default has been waived or would not reasonably be expected to have
a Material Adverse Effect.

 

(x)               
Permits. The Company and its Subsidiaries have made all material filings, applications and submissions required by, and
owns or possesses all material approvals, licenses, certificates, certifications, clearances, consents, exemptions, marks, notifications,
orders, permits and other authorizations issued by, the appropriate federal, state or foreign regulatory authorities, necessary
to conduct their business as described in the Disclosure Package (collectively, “Permits”), and is in compliance
in all material respects with the terms and conditions of all such Permits. All such Permits are valid and in full force and effect.
Neither the Company nor any Subsidiary has received any notice of any proceedings relating to revocation or modification of, any
such Permit, which, individually or in the aggregate, if the subject of an unfavorable decision, ruling or finding, would have
a Material Adverse Effect. Except as may be required under the Securities Act and state and foreign Blue Sky laws and the rules
and regulations of FINRA, no other Permits are required for the Company to enter into, deliver and perform this Agreement and
to issue and sell the Securities, the Agent’s Warrants and the Agent’s Warrant Shares to be issued and sold by the
Company.

 

(y)              
 Not an Investment Company. Neither the Company nor any Subsidiary is or, after giving effect to the offering and
sale of the Securities and the Agent’s Warrant Shares and the application of the proceeds thereof as described in the Disclosure
Package and the Prospectus, will be (i) required to register as an “investment company” as defined in the Investment
Company Act of 1940, as amended (the “Investment Company Act”), and the rules and regulations of the Commission
thereunder or (ii) a “business development company” (as defined in Section 2(a)(48) of the Investment
Company Act).

 

    	 	11	 

     

    

 

(z)                
No Price Stabilization. Neither the Company or any of the Company’s officers or directors, has taken or will take,
directly or indirectly, any action designed to or that might be reasonably expected to cause or result in, or which has constituted
or which might reasonably be expected to constitute the stabilization or manipulation of the price of any security of the Company
to facilitate the sale or resale of the Securities, the Agent’s Warrants and the Agent’s Warrant Shares.

 

(aa)            
Good Title to Property. The Company and its Subsidiaries have good and valid title to all property (whether real or personal)
described in the Registration Statement, the Disclosure Package and the Prospectus as being owned by the Company or any Subsidiary,
in each case free and clear of all liens, claims, security interests, other encumbrances or defects (collectively, “Liens”),
except such as are described in the Registration Statement, the Disclosure Package and the Prospectus and those that would not,
individually or in the aggregate materially affect the value of such property and do not materially interfere with the use made
and proposed to be made of such property by the Company and its Subsidiaries. All of the property described in the Registration
Statement, Disclosure Package and the Prospectus as being held under lease by the Company or any Subsidiary is held thereby under
valid, subsisting and enforceable leases, without any liens, restrictions, encumbrances or claims, except those that, individually
or in the aggregate, are not material and do not materially interfere with the use made and proposed to be made of such property
by the Company and its Subsidiaries.

 

(bb)           
Intellectual Property Rights. The Company and its Subsidiaries own or possess the right to use all patents, trademarks,
trademark registrations, service marks, service mark registrations, trade names, copyrights, licenses, inventions, software, databases,
know-how, Internet domain names, trade secrets and other unpatented and/or unpatentable proprietary or confidential information,
systems or procedures, and other intellectual property (collectively, “Intellectual Property”) necessary to
carry on their businesses as currently conducted, and as proposed to be conducted as described in the Disclosure Package and the
Prospectus, and the Company is not aware of any claim to the contrary or any challenge by any other person to the rights of the
Company or any Subsidiary with respect to the foregoing except for those that could not have a Material Adverse Effect. The Intellectual
Property licenses described in the Disclosure Package and the Prospectus are, to the knowledge of the Company, valid, binding
upon, and enforceable by or against the parties thereto in accordance with their terms. The Company and its Subsidiaries have
complied in all material respects with, and are not in breach nor have they received any asserted or threatened claim of breach
of, any Intellectual Property license, and the Company has no knowledge of any breach or anticipated breach by any other person
of any Intellectual Property license. The business of the Company and its Subsidiaries as now conducted and as proposed to be
conducted, to the knowledge of the Company, does not and will not infringe or conflict with any patents, trademarks, service marks,
trade names, copyrights, trade secrets, licenses or other Intellectual Property or franchise right of any person. Neither the
Company nor any Subsidiary has received notice of any claim against the Company or any Subsidiary alleging the infringement by
the Company or any Subsidiary of any patent, trademark, service mark, trade name, copyright, trade secret, license in or other
intellectual property right or franchise right of any person. The Company and its Subsidiaries have taken all reasonable steps
to protect, maintain and safeguard their rights in all Intellectual Property, including the execution of appropriate nondisclosure
and confidentiality agreements. The consummation of the transactions contemplated by this Agreement will not result in the loss
or impairment of or payment of any additional amounts with respect to, nor require the consent of any other person in respect
of, the right of the Company or any Subsidiary to own, use, or hold for use any of the Intellectual Property as owned, used or
held for use in the conduct of the businesses as currently conducted. To the Company’s knowledge, no employee of the Company
or any Subsidiary is the subject of any claim or proceeding involving a violation of any term of any employment contract, patent
disclosure agreement, invention assignment agreement, non-competition agreement, non-solicitation agreement, nondisclosure agreement
or any restrictive covenant to or with a former employer where the basis of such violation relates to such employee’s employment
with the Company or any Subsidiary or actions undertaken by the employee while employed with the Company or any Subsidiary. All
patent applications owned by the Company and filed with the U.S. Patent and Trademark Office (the “PTO”)
or any foreign or international patent authority that have resulted in patents or currently pending applications that describe
inventions necessary to conduct the business of the Company in the manner described in the Disclosure Package (collectively, the
“Company Patent Applications”) have been or were duly and properly filed. The Company
has complied with its duty of candor and disclosure to the PTO for the Company Patent Applications. The Company is not aware of
any facts required to be disclosed to the PTO that were not disclosed to the PTO and which would preclude the grant of a patent
for the Company Patent Applications. The Company has no knowledge of any facts which would preclude it from having clear title
to the Company Patent Applications that have been identified by the Company as being exclusively owned by the Company.

 

    	 	12	 

     

    

 

(cc)            
No Labor Disputes. No labor problem or dispute with the employees of the Company or any Subsidiary exists, or, to the Company’s
knowledge, is threatened or imminent, which would reasonably be expected to result in a Material Adverse Effect. The Company is
not aware that any key employee or significant group of employees of the Company or any Subsidiary plans to terminate employment
with the Company or such Subsidiary. The Company and its Subsidiaries have not engaged in any unfair labor practice that, individually
or in the aggregate, reasonably be expected to have a Material Adverse Effect; except for matters which would not, individually
or in the aggregate, reasonably be expected to have a Material Adverse Effect, (i) there is (A) no unfair labor practice complaint
pending or, to the Company’s knowledge, threatened against the Company or any Subsidiary before the National Labor Relations
Board, and no grievance or arbitration proceeding arising out of or under collective bargaining agreements is pending or to the
Company’s knowledge, threatened, (B) no strike, labor dispute, slowdown or stoppage pending or, to the Company’s knowledge,
threatened against the Company or any Subsidiary and (C) no union representation dispute currently existing concerning the employees
of the Company or any Subsidiary and (ii) to the Company’s knowledge, (A) no union organizing activities are currently taking
place concerning the employees of the Company or any Subsidiary and (B) there has been no violation of any federal, state, local
or foreign law relating to discrimination in the hiring, promotion or pay of employees, any applicable wage or hour laws or any
provision of the Employee Retirement Income Security Act of 1974 (“ERISA”) or the rules and regulations promulgated
thereunder concerning the employees of the Company or any Subsidiary.

 

(dd)         
Taxes. Each of the Company and its Subsidiaries (i) has timely filed all necessary federal, state, local and foreign income
and franchise tax returns (or timely filed applicable extensions therefor) that have been required to be filed and (ii) is not
in default in the payment of any taxes which were payable pursuant to such returns or any assessments with respect thereto, other
than any which the Company or such Subsidiary is contesting in good faith and for which adequate reserves have been provided and
reflected in the Company’s financial statements included in the Registration Statement, the Disclosure Package and the Prospectus.
Neither the Company nor any Subsidiary has any tax deficiency that has been or, to the knowledge of the Company, is reasonably
likely to be asserted or threatened against it that would result in a Material Adverse Effect. Neither the Company nor any Subsidiary
has engaged in any transaction which is a corporate tax shelter or which could be characterized as such by the Internal Revenue
Service or any other taxing authority.

 

    	 	13	 

     

    

 

(ee)           
ERISA. The Company and its Subsidiaries are in compliance in all material respects with all presently applicable provisions
of ERISA; no “reportable event” (as defined in ERISA) has occurred with respect to any “pension plan”
(as defined in ERISA) for which the Company or any Subsidiary would have any liability; the Company and its Subsidiaries have
not incurred and do not expect to incur liability under (i) Title IV of ERISA with respect to termination of, or withdrawal from,
any “pension plan” or (ii) Sections 412 or 4971 of the Internal Revenue Code of 1986, as amended, including the regulations
and published interpretations thereunder (the “Code”); and each “pension plan” for which the Company
or any Subsidiary would have any liability that is intended to be qualified under Section 401(a) of the Code is so qualified in
all material respects and nothing has occurred, whether by action or by failure to act, which would cause the loss of such qualification.

 

(ff)               
Compliance with Environmental Laws. Each of the Company and its Subsidiaries (i) is in compliance with any and all applicable
foreign, federal, state and local laws, orders, rules, regulations, directives, decrees and judgments relating to the use, treatment,
storage and disposal of hazardous or toxic substances or waste and protection of human health and safety or the environment which
are applicable to its business (“Environmental Laws”); (ii) has received and is in compliance with all permits,
licenses or other approvals required of it under applicable Environmental Laws to conduct its business; and (iii) is in compliance
with all terms and conditions of any such permit, license or approval, except where such noncompliance with Environmental Laws,
failure to receive required permits, licenses or other approvals or failure to comply with the terms and conditions of such permits,
licenses or approvals would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. There
are no costs or liabilities associated with Environmental Laws (including, without limitation, any capital or operating expenditures
required for clean-up, closure of properties or compliance with Environmental Laws or any permit, license or approval, any related
constraints on operating activities and any potential liabilities to third parties) which would, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect.

 

(gg)          
Insurance. Each of the Company and its Subsidiaries maintains or is covered by insurance provided by recognized, financially
sound and reputable institutions with insurance policies in such amounts and covering such risks as is adequate for the conduct
of its business and the value of its properties and as is customary for companies engaged in similar businesses in similar industries.
All such insurance is fully in force on the date hereof and will be fully in force as of the Closing Date. The Company has no
reason to believe that each of it and its Subsidiaries will not be able to renew its existing insurance coverage as and when such
coverage expires or to obtain similar coverage from similar insurers as may be necessary to continue its business at a cost that
would not reasonably be expected to have a Material Adverse Effect. The Company does not insure risk of loss of the Company or
any of its Subsidiaries through any captive insurance, risk retention group, reciprocal group or by means of any fund or pool
of assets specifically set aside for contingent liabilities other than as described in the Disclosure Package.

 

    	 	14	 

     

    

 

(hh)            
Accounting Controls. The Company maintains a system of internal accounting controls for the Company and its Subsidiaries
sufficient to provide reasonable assurances that (i) transactions are executed in accordance with management’s
general or specific authorization; (ii) transactions are recorded as necessary to permit preparation of financial
statements in conformity with generally accepted accounting principles and to maintain accountability for assets; (iii) access
to assets is permitted only in accordance with management’s general or specific authorization; and (iv) the
recorded accountability for assets is compared with existing assets at reasonable intervals and appropriate action is taken with
respect to any differences.

 

(ii)               
Disclosure Controls. The Company has established, maintains and evaluates “disclosure controls and procedures”
(as such term is defined in Rule 13a-15(e) and 15d-15(e) under the Exchange Act), which (i) are designed to ensure
that material information relating to the Company and its Subsidiaries is made known to the Company’s principal executive
officer and its principal financial officer by others within those entities, particularly during the periods in which the periodic
reports required under the Exchange Act are being prepared, (ii) have been evaluated for effectiveness as of the end of
the last fiscal period covered by the Registration Statement; and (iii) such disclosure controls and procedures are effective
to perform the functions for which they were established. There are no significant deficiencies or material weaknesses in the
design or operation of internal controls which could adversely affect the Company’s ability to record, process, summarize,
or report financial data to management and the Board of Directors of the Company. The Company is not aware of any fraud, whether
or not material, that involves management or other employees who have a role in the Company’s internal controls; and since
the date of the most recent evaluation of such disclosure controls and procedures, there have been no significant changes in internal
controls or in other factors that could significantly affect internal controls, including any corrective actions with regard to
significant deficiencies and material weaknesses. Except as set forth in the Disclosure Package, the Audit Committee of the Board
of Directors of the Company (the “Audit Committee”) is not reviewing or investigating, and neither the Company’s
independent auditors nor its internal auditors have recommended that the Audit Committee review or investigate, (i) adding
to, deleting, changing the application of or changing the Company’s disclosure with respect to, any of the Company’s
material accounting policies, (ii) any manner which could result in a restatement of the Company’s financial statements
for any annual or interim period during the current or prior three fiscal years, or (iii) a significant deficiency, material
weakness, change in internal control over financial reporting or fraud involving management or other employees who have a significant
role in the internal control over financial reporting.

 

(jj)                
Minute Books. The minute books of the Company and each Subsidiary have been made available upon request to the Placement
Agent and counsel for the Placement Agent, and such books (i) contain a complete summary of all meetings and actions of the board
of directors (including each board committee) and stockholders of the Company and its Subsidiaries (or analogous governing bodies
and interest holders, as applicable), and (ii) accurately in all material respects reflect all transactions referred to in such
minutes.

 

    	 	15	 

     

    

 

(kk)          
Contracts; Off-Balance Sheet Interests. There is no document, contract, permit or instrument, or off-balance sheet transaction
(including without limitation, any “variable interests” in “variable interest entities,” as such terms
are defined in Financial Accounting Standards Board Interpretation No. 46) of a character required by the Securities Act or the
Rules and Regulations to be described in the Registration Statement or the Disclosure Package or to be filed as an exhibit to
the Registration Statement or document incorporated by reference therein, which is not described or filed as required. Each description
of a document, contract, permit or instrument in the Registration Statement or the Disclosure Package accurately reflects in all
material respects the terms of the underlying document, contract, permit or instrument. The documents, contracts, permits and
instruments described in the immediately preceding sentence to which the Company or any Subsidiary is a party have been duly authorized,
executed and delivered by the Company or such Subsidiary, constitute valid and binding agreements of the Company or such Subsidiary,
are enforceable against and by the Company or such Subsidiary in accordance with the terms thereof, except as such enforceability
may be limited by applicable bankruptcy, insolvency, reorganization or similar laws affecting the rights of creditors generally
and subject to general principles of equity, and are in full force and effect on the date hereof. None of the Company, any Subsidiary,
or to the Company’s knowledge, any other party is in default in the observance or performance of any term or obligation
to be performed by it under any such agreement, and no event has occurred which with notice or lapse of time or both would constitute
such a default, in any case which default or event, individually or in the aggregate, would reasonably be expected to have a Material
Adverse Effect. No default exists, and no event has occurred which with notice or lapse of time or both would constitute a default,
in the due performance and observance of any term, covenant or condition, by the Company or any Subsidiary of any agreement or
instrument to which the Company or any Subsidiary is a party or by which the Company, any Subsidiary or their respective properties
or business may be bound or affected which default or event, individually or in the aggregate, would have a Material Adverse Effect.

 

(ll)                
No Undisclosed Relationships. No relationship, direct or indirect, exists between or among the Company or any Subsidiary,
on the one hand, and the directors, officers, stockholders, customers or suppliers of the Company, any Subsidiary or any of their
affiliates, on the other hand, which is required to be described in the Registration Statement, the Disclosure Package or the
Prospectus or a document incorporated by reference therein and which has not been so described.

 

(mm)        
Brokers Fees. Except as disclosed in the Disclosure Package, there are no contracts, agreements or understandings between
the Company and any person (other than this Agreement) that would give rise to a claim against the Company or the Placement Agent
for a brokerage commission, finder’s fee or other like payment in connection with the offering and sale of the Securities,
the Agent’s Warrants and the Agent’s Warrant Shares.

 

(nn)            
Forward-Looking Statements. No forward-looking statements (within the meaning of Section 27A of the Securities Act and
Section 21E of the Exchange Act) contained in either the Disclosure Package or the Prospectus have been made or reaffirmed without
a reasonable basis therefor or have been disclosed other than in good faith.

 

    	 	16	 

     

    

 

(oo)          
Exchange Act Registration. The Common Stock is registered pursuant to Section 12(g) of the Exchange Act, and the Company
has taken no action designed to, or reasonably likely to have the effect of, terminating the registration of the Common Stock
under the Exchange Act, nor has the Company received any notification that the Commission is contemplating terminating such registration
or listing.

 

(pp)          
Sarbanes-Oxley Act. The Company, and to its knowledge, each of the Company’s directors or officers, in their capacities
as such, is in compliance in all material respects with all applicable effective provisions of the Sarbanes-Oxley Act and any
related rules and regulations promulgated by the Commission. Each of the principal executive officer and the principal financial
officer of the Company (and each former principal executive officer of the Company and each former principal financial officer
of the Company as applicable) has made all certifications required by Sections 302 and 906 of the Sarbanes-Oxley Act with respect
to all reports, schedules, forms, statements and other documents required to be filed by him or her with the Commission. For purposes
of the preceding sentence, “principal executive officer” and “principal financial officer” shall have
the meanings given to such terms in the Sarbanes-Oxley Act.

 

(qq)         
Foreign Corrupt Practices. None of the Company, any Subsidiary nor, to the Company’s knowledge, any other person
associated with or acting on behalf of the Company or any Subsidiary, including without limitation any director, officer, agent
or employee of the Company or any Subsidiary has, directly or indirectly, while acting on behalf of the Company or any Subsidiary
(i) used any corporate funds for unlawful contributions, gifts, entertainment or other unlawful expenses relating to political
activity or failed to disclose fully any contribution in violation of law, (ii) made any payment to any federal or state
governmental officer or official, or other person charged with similar public or quasi-public duties, other than payments required
or permitted by the laws of the United States or any jurisdiction thereof, (iii) violated or is in violation of any provision
of the U.S. Foreign Corrupt Practices Act of 1977, as amended or (iv) made any bribe, rebate, payoff, influence payment,
kickback or other unlawful payment.

 

(rr)             
Affiliate Transactions. There are no transactions, arrangements or other relationships between and/or among the Company,
any of its affiliates (as such term is defined in Rule 405) and any unconsolidated entity, including, but not limited to, any
structured finance, special purpose or limited purpose entity that could reasonably be expected to materially affect the Company’s
liquidity or the availability of or requirements for its capital resources required to be described in the Disclosure Package
and the Prospectus or a document incorporated by reference therein which have not been described as required. The Company does
not, directly or indirectly, have any outstanding personal loans or other credit extended to or for any of its directors or executive
officers.

 

(ss)            
Statistical or Market-Related Data. Any statistical, industry-related or market-related data included or incorporated by
reference in the Registration Statement, the Prospectus or the Disclosure Package, are based on or derived from sources that the
Company reasonably and in good faith believes to be reliable and accurate, and such data agree with the sources from which they
are derived.

 

    	 	17	 

     

    

 

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

 

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

 

(vv)           
Margin Securities. None of the proceeds of the sale of the Securities, the Agent’s Warrants and the Agent’s
Warrant Shares will be used, directly or indirectly, for the purpose of purchasing or carrying any margin security, for the purpose
of reducing or retiring any indebtedness which was originally incurred to purchase or carry any margin security or for any other
purpose which might cause any of the Securities, the Agent’s Warrants or the Agent’s Warrant Shares to be considered
a “purpose credit” within the meanings of Regulation T, U or X of the Board of Governors of the Federal Reserve System.

 

(ww)       
FINRA Affiliations. There are no affiliations or associations between (i) any member of the FINRA and (ii) the
Company, any Subsidiary or any officers or directors of the Company or any Subsidiary, except as set forth in the Registration
Statement, the Disclosure Package and the Prospectus.

 

(xx)           
Exchange Act Requirements. The Company has filed in a timely manner all reports required to be filed pursuant to Sections
13(a), 13(e), 14 and 15(d) of the Exchange Act during the preceding 12 months.

 

(yy)           
Criminal Proceedings. To the best of the Company’s knowledge, information and belief, none of the current directors
or officers of the Company (or such stockholders’ respective principals) is or has ever been subject to prior regulatory,
criminal or bankruptcy proceedings in the U.S. or elsewhere.

 

(zz)             
Non-public Information. The Company has not provided and has not authorized any other person to act on its behalf to provide
any Investor or its respective agents or counsel with any information about the Company that constitutes or might constitute material,
non-public information which is not otherwise disclosed in the Prospectus.

 

    	 	18	 

     

    

 

Any
certificate signed by any officer of the Company or any Subsidiary and delivered to the Placement Agent or to counsel for the
Placement Agent in connection with the offering of the Securities shall be deemed a representation and warranty by the Company
to the Placement Agent and the Investors as to the matters covered thereby.

 

3.                 
Covenants. The Company covenants and agrees with the Placement Agent as follows:

 

(a)               
Reporting Obligations; Exchange Act Compliance. The Company will: (i) file each Preliminary Prospectus and
the Prospectus with the Commission within the time periods specified by Rule 424(b) and Rules 430A, 430B or 430C under the Securities
Act, as applicable, (ii) file any Issuer Free Writing Prospectus to the extent required by Rule 433 under the Securities
Act, if applicable, (iii) file all reports and any definitive proxy or information statements required to be filed
by the Company with the Commission pursuant to Section 13(a), 13(c), 14 or 15(d) of the Exchange Act subsequent to the date of
the Prospectus during the Prospectus Delivery Period, and (iv) furnish copies of each Issuer Free Writing Prospectus,
if any, (to the extent not previously delivered) to the Placement Agent prior to 10:00 a.m. Eastern time, on the second business
day next succeeding the date of this Agreement in such quantities as the Placement Agent shall reasonably request.

 

(b)              
Continued Compliance with Securities Law. If, at any time prior to the filing of the Prospectus pursuant to Rule 424(b),
any event occurs as a result of which the Disclosure Package as then amended or supplemented would include an untrue statement
of a material fact or omit to state any material fact necessary to make the statements therein, in the light of the circumstances
under which they were made, not misleading, the Company will (i) promptly notify the Placement Agent so that any use
of the Disclosure Package may cease until it is amended or supplemented and (ii) amend or supplement the Disclosure Package
to correct such statements or omission. If, during the Prospectus Delivery Period, any event occurs as a result of which the Prospectus
as then amended or supplemented would include an untrue statement of a material fact or omit to state any material fact necessary
to make the statements therein, in the light of the circumstances under which they were made, not misleading, or if it is necessary
at any time to amend the Registration Statement or supplement the Prospectus to comply with the Securities Act, the Company will
(A) promptly notify the Placement Agent of such event and (B) promptly prepare and file with the Commission and
furnish, at its own expense, to the Placement Agent and, to the extent applicable, the dealers and any other dealers upon request
of the Placement Agent, an amendment or supplement which will correct such statement or omission or an amendment which will effect
such compliance. The Company will deliver promptly to the Placement Agent such number of the following documents as the Placement
Agent shall reasonably request: (i) conformed copies of the Registration Statement as originally filed with the Commission
(in each case excluding exhibits), (ii) each Preliminary Prospectus, (iii) any Issuer Free Writing Prospectus,
(iv) the Prospectus (the delivery of the documents referred to in clauses (i), (ii),  (iii) and (iv) of
this subsection (b) to be made not later than 10:00 a.m., New York time, on the business day following the execution
and delivery of this Agreement), (v) conformed copies of any amendment to the Registration Statement (excluding exhibits),
(vi) any amendment or supplement to the Disclosure Package or the Prospectus (the delivery of the documents referred
to in clauses (v) and (vi) of this subsection (b) to be made not later than 10:00 a.m., New York City
time, on the business day following the date of such amendment or supplement), and (vii) any document incorporated
by reference in the Disclosure Package or the Prospectus (excluding exhibits thereto) (the delivery of the documents referred
to in clause (vi) of this subsection (b) to be made not later than 10:00 a.m., New York City time, on the
business day following the date of such document).

 

    	 	19	 

     

    

 

(c)               
Issuer Free Writing Prospectuses. The Company will (i) not make any offer relating to the Securities, the Agent’s
Warrants and the Agent’s Warrant Shares that would constitute an Issuer Free Writing Prospectus or that would otherwise
constitute a “free writing prospectus” (as defined in Rule 405 under the Securities Act) required to be filed by the
Company with the Commission under Rule 433 under the Securities Act unless the Placement Agent approve its use in writing prior
to first use (each, a “Permitted Free Writing Prospectus”); provided that the prior written consent
of the Placement Agent shall be deemed to have been given in respect of any electronic road show; (ii) treat each Permitted
Free Writing Prospectus as an Issuer Free Writing Prospectus; (iii) comply with the requirements of Rules 164 and 433 under
the Securities Act applicable to any Issuer Free Writing Prospectus, including the requirements relating to filing timely with
the Commission, legending and record keeping; and (iv) not take any action that would result in the Placement Agent or
the Company being required to file with the Commission pursuant to Rule 433(d) under the Securities Act a free writing prospectus
prepared by or on behalf of such Placement Agent that such Placement Agent otherwise would not have been required to file thereunder.
The Company will satisfy the conditions in Rule 433 under the Securities Act to avoid a requirement to file with the Commission
any electronic road show.

 

(d)              
Conflicting Issuer Free Writing Prospectus. If at any time following the issuance of an Issuer Free Writing Prospectus
there occurred or occurs an event or development as a result of which such Issuer Free Writing Prospectus conflicted or would
conflict with the information contained in the Registration Statement, the Disclosure Package or the Prospectus or included or
would include an untrue statement of a material fact or omitted or would omit to state a material fact necessary in order to make
the statements therein, in the light of the circumstances prevailing at that subsequent time, not misleading, the Company promptly
will notify the Placement Agent and will promptly amend or supplement, at its own expense, such Issuer Free Writing Prospectus
to eliminate or correct such conflict, untrue statement or omission. The foregoing sentence does not apply to statements in or
omissions from any Issuer Free Writing Prospectus in reliance upon, and in conformity with, written information furnished to the
Company by the Placement Agent specifically for inclusion therein, which information the parties hereto agree is limited to the
Placement Agent’s Information.

 

(e)               
Blue Sky Laws. The Company will promptly take or cause to be taken, from time to time, such actions as the Placement Agent
may reasonably request to qualify the Securities, the Agent’s Warrants and the Agent’s Warrant Shares for offering
and sale under the state securities, or blue sky, laws of such states or other jurisdictions as the Placement Agent may reasonably
request and to maintain such qualifications in effect so long as the Placement Agent may request for the distribution of the Securities,
the Agent’s Warrants and the Agent’s Warrant Shares, provided that in no event shall the Company be obligated
to qualify as a foreign corporation in any jurisdiction in which it is not so qualified or to file a general consent to service
of process in any jurisdiction or subject itself to taxation as doing business in any jurisdiction. The Company will advise the
Placement Agent promptly of the suspension of the qualification or registration of (or any exemption relating to) the Securities,
the Agent’s Warrants and the Agent’s Warrant Shares for offering, sale or trading in any jurisdiction or any initiation
or threat of any proceeding for any such purpose, and in the event of the issuance of any order suspending such qualification,
registration or exemption, the Company shall use its best efforts to obtain the withdrawal thereof at the earliest possible moment.

 

    	 	20	 

     

    

 

(f)               
Earnings Statement. As soon as practicable, the Company will make generally available to holders of its securities and
deliver to the Placement Agent, an earnings statement of the Company (which need not be audited) covering a period of at least
12 months beginning after the date of this Agreement that will satisfy the provisions of Section 11(a) of the Securities Act and
the Rules and Regulations (including, at the option of the Company, Rule 158). For the purpose of the preceding sentence,
“as soon as practicable” means the 45th day after the end of the fourth fiscal quarter following the fiscal quarter
that includes the date of this Agreement, except that if such fourth fiscal quarter is the last quarter of the Company’s
fiscal year, “as soon as practicable” means the 90th day after the end of such fourth fiscal quarter.

 

(g)              
Use of Proceeds. The Company will apply the net proceeds from the sale of the Securities in the manner set forth in the
Registration Statement, the Disclosure Package and the Prospectus under the heading “Use of Proceeds.”

 

(h)               
Public Communications. Prior to 9:00 a.m. New York City time on the business day immediately subsequent to the date hereof,
the Company shall issue a press release (the “Press Release”) reasonably acceptable to the Placement Agent
disclosing the execution of this Agreement, the Purchase Agreements and the transactions contemplated hereby and thereby. Prior
to the Closing Date, the Company covenants not to issue any press release (other than the Press Release) or other communication
directly or indirectly or hold any press conference with respect to the Company, its condition, financial or otherwise, or earnings,
business affairs or business prospects (except for routine oral marketing communications in the ordinary course of business and
consistent with the past practices of the Company and of which the Placement Agent are notified), without the prior written consent
of the Placement Agent, unless in the judgment of the Company and its counsel, and after notification to the Placement Agent,
such press release or communication is required by law.

 

(i)                 
Stabilization. The Company will not take directly or indirectly any action designed, or that would reasonably be expected
to cause or result in, or that will constitute, stabilization or manipulation of the price of any security of the Company to facilitate
the sale or resale of any of the Securities, the Agent’s Warrants and the Agent’s Warrant Shares.

 

(j)                
Transfer Agent. The Company shall engage and maintain, at its expense, a transfer agent and, if necessary under the jurisdiction
of incorporation of the Company, a registrar for the Securities and the Agent’s Warrant Shares.

 

    	 	21	 

     

    

 

(k)              
Investment Company Act. The Company shall not invest or otherwise use the proceeds received by the Company from its sale
of the Securities in such a manner as would require the Company or any Subsidiary to register as an investment company under the
Investment Company Act.

 

(l)                 
Sarbanes-Oxley Act. During the Prospectus Delivery Period, the Company will comply with all effective applicable provisions
of the Sarbanes Oxley Act.

 

(m)            
 Periodic Reports. During the Prospectus Delivery Period, the Company will file with the Commission such periodic
and special reports as required by the Securities Act.

 

(n)               
Lock-Up Period. That the Company will not, for a period of 90 days from the date of this Agreement, (the “Lock-Up
Period”) without the prior written consent of the Placement Agent, directly or indirectly offer, sell, assign, transfer,
pledge, contract to sell, grant any option to purchase, make any short sale or otherwise dispose of, any shares of Common Stock
or any securities convertible into or exercisable or exchangeable for Common Stock, other than (i) the Company’s
sale of the Securities, the Agent’s Warrants and the Agent’s Warrant Shares hereunder, (ii) the issuance of
Common Stock or options to acquire Common Stock pursuant to the Company’s employee benefit plans, qualified stock option
plans or other director or employee compensation plans as such plans are in existence on the date hereof and described in the
Prospectus and consistent with past practice, and (iii) the issuance of Common Stock pursuant to the valid exercises of
options, warrants or rights outstanding on the date hereof and the Agent’s Warrants. The Company will cause each executive
officer and director listed in Schedule III to furnish to the Placement Agent, prior to the date of this Agreement, a letter,
substantially in the form of Exhibit  hereto. The Company also agrees that during the Lock-Up Period, without prior
written consent of the Placement Agent, the Company will not file any registration statement, preliminary prospectus or prospectus,
or any amendment or supplement thereto (collectively, “Filings”), under the Securities Act for any such transaction
or which registers, or offers for sale, Common Stock or any securities convertible into or exercisable or exchangeable for Common
Stock, except for (i) registration statements on Form S-8 relating to employee benefit plans and (ii) any amendments
or prospectuses or supplements relating to previously filed registration statements (provided that no additional shares of common
stock are issued pursuant to such amendments, prospectuses or supplements).

 

4.               
Costs and Expenses. In addition to the Agency Fee, the Company, whether or not the transactions contemplated hereunder
are consummated or this Agreement is terminated, will reimburse the Placement Agent for (a) all reasonable fees and disbursements
of counsel retained by the Placement Agent with the Company’s consent, (b) all of the Placement Agent’s reasonable
travel and related expenses, and (c) any other reasonable out-of-pocket expenses incurred by the Placement Agent in connection
with the performance of their services hereunder; provided that, in any event, reimbursement of expenses pursuant to this Section
4 will not exceed $100,000 in the aggregate without the Company’s approval.

 

    	 	22	 

     

    

 

5.               
Conditions of Placement Agent’s Obligations. The obligations of the Placement Agent hereunder and the Investors
under the Purchase Agreements are subject to the following conditions:

 

(a)               
Filings with the Commission. Each Issuer Free Writing Prospectus, if any, and the Prospectus shall have been filed with
the Commission within the applicable time period prescribed for such filing by, and in compliance with, the Rules and Regulations
and in accordance with Section 3(a) hereof.

 

(b)               
No Stop Orders. Prior to the Closing: (i) no stop order suspending the effectiveness of the Registration Statement
or any part thereof, preventing or suspending the use of the Prospectus or any Issuer Free Writing Prospectus or any part thereof
shall have been issued under the Securities Act and no proceedings for that purpose or pursuant to Section 8A under the Securities
Act shall have been initiated or threatened by the Commission, (ii) no order suspending the qualification or registration
of the Securities under the securities or blue sky laws of any jurisdiction shall be in effect, and (iii) all requests
for additional information on the part of the Commission (to be included or incorporated by reference in the Registration Statement,
the Disclosure Package, the Prospectus or any Issuer Free Writing Prospectus or otherwise) shall have been complied with to the
reasonable satisfaction of the Placement Agent. On or prior to the Closing Date, the Registration Statement or any amendment thereof
or supplement thereto shall not contain an untrue statement of material fact or omit to state a material fact required to be stated
therein or necessary to make the statements therein not misleading, and neither the Disclosure Package, nor any Issuer Free Writing
Prospectus nor the Prospectus nor any amendment thereof or supplement thereto shall contain any untrue statement of a material
fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in light of the
circumstances in which they were made, not misleading.

 

(c)               
Action Preventing Issuance. No action shall have been taken and no law, statute, rule, regulation or order shall have been
enacted, adopted or issued by any governmental agency or body which would prevent the issuance or sale of the Securities, the
Agent’s Warrants and the Agent’s Warrant Shares or materially and adversely affect or potentially materially and adversely
affect the business or operations of the Company; and no injunction, restraining order or order of any other nature by any federal
or state court of competent jurisdiction shall have been issued which would prevent the issuance or sale of the Securities, the
Warrant Shares, the Agent’s Warrants and the Agent’s Warrant Shares or materially and adversely affect or potentially
materially and adversely affect the business or operations of the Company.

 

(d)              
Material Adverse Change. Subsequent to the date of the latest audited financial statements included or incorporated by
reference in the Disclosure Package, (i) the Company has not sustained any material loss or interference with its
business from fire, explosion, flood or other calamity, whether or not covered by insurance, or from any labor dispute or court
or governmental action, order or decree, otherwise than as set forth in the Disclosure Package, or (ii) there has
not been any change in the capital stock (other than a change in the number of outstanding shares of Common Stock due to the issuance
of shares upon the exercise of outstanding options or warrants or the conversion of convertible indebtedness), or material change
in the short-term debt or long-term debt of the Company (other than upon conversion of convertible indebtedness) or any material
adverse change, in or affecting the business, assets, general affairs, management, financial position, prospects, stockholders’
equity or results of operations of the Company, otherwise than as set forth in the Disclosure Package, the effect of which, in
any such case described in clause (i) or (ii) of this subsection (d), is, in the reasonable judgment of the Placement Agent,
so material and adverse as to make it impracticable or inadvisable to proceed with the sale or delivery of the Securities on the
terms and in the manner contemplated in the Disclosure Package.

 

    	 	23	 

     

    

 

(e)               
Representations and Warranties. Each of the representations and warranties of the Company contained herein shall be true
and correct in all material respects when made and on and as of the Closing Date, as if made on such date (except that those representations
and warranties that address matters only as of a particular date shall remain true and correct as of such date), and all covenants
and agreements herein contained to be performed on the part of the Company and all conditions herein contained to be fulfilled
or complied with by the Company at or prior to the Closing Date shall have been duly performed, fulfilled or complied with.

 

(f)                 
Opinions of Counsel to the Company. The Placement Agent shall have received from Robinson Brog, counsel to the Company,
such counsels’ written opinions, addressed to the Placement Agent and the Investors and dated the Closing Date, in form
and substance reasonably satisfactory to the Placement Agent and their counsel. Such counsel to the Company shall also have furnished
to the Placement Agent a written statement (“Negative Assurances”), addressed to the Placement Agent and dated
the Closing Date, in form and substance satisfactory to the Placement Agent and their counsel.

 

(g)              
Opinion of IP Counsel to the Company. The Placement Agent shall have received from Beusse Wolter Sanks Mora & Maire,
P.A., IP counsel for the Company, such opinion or opinions, dated the Closing Date, with respect to such matters as the Placement
Agent may reasonably require, and the Company shall have furnished to such counsel such documents as it requests to enable it
to pass upon such matters.

 

(h)              
Opinion of Counsel to the Placement Agent. The Placement Agent shall have received from Faegre Baker Daniels LLP, counsel
for the Placement Agent, such opinion or opinions, dated the Closing Date, with respect to such matters as the Placement Agent
may reasonably require, and the Company shall have furnished to such counsel such documents as it requests to enable it to pass
upon such matters.

 

(i)                 
Accountant’s Comfort Letters. On the date hereof, the Placement Agent shall have received a letter dated the date
hereof (the “Comfort Letters”), addressed to the Placement Agent and in form and substance reasonably satisfactory
to the Placement Agent and their counsel, from KPMG, LLP and Marcum LLC, (i) confirming that they are independent public
accountants with respect to the Company within the meaning of the Securities Act and the Rules and Regulations and (ii)
stating, as of the date hereof (or, with respect to matters involving changes or developments since the respective dates as of
which specified financial information is given in the Disclosure Package, as of a date not more than three days prior to the date
hereof), the conclusions and findings of such firm with respect to the financial information and other matters ordinarily covered
by accountants’ “comfort letters” to underwriters, delivered according to Statement of Auditing Standards No.
72, Statement of Auditing Standard No. 100 (or successor bulletins) and AU Section 634, in connection with registered public offerings.

 

    	 	24	 

     

    

 

(j)                
CFO Certificate. On the date hereof, the Company shall have furnished to the Placement Agent a certificate, dated as of
such date, signed on behalf of the Company by its Chief Financial Officer, regarding certain financial information in the Disclosure
Package respectively, in form and substance satisfactory to the Placement Agent.

 

(k)              
Bring-Down Letters. On the Closing Date, the Placement Agent shall have received from KPMG, LLP and Marcum LLC a letter
(the “Bring-Down Letter”), dated the Closing Date, addressed to the Placement Agent and in form and substance
reasonably satisfactory to the Placement Agent and their counsel, (i) confirming that they are or were, as applicable,
independent public accountants with respect to the Company within the meaning of the Securities Act and the Rules and Regulations,
and (ii) confirming in all material respects the conclusions and findings set forth in the Comfort Letter.

 

(l)                 
Officer’s Certificate. The Placement Agent shall have received on the Closing Date a certificate, addressed to the
Placement Agent and dated the Closing Date, of the Chief Executive Officer or Chief Operating Officer and the Chief Financial
Officer of the Company to the effect that:

 

(i)       each
of the representations, warranties and agreements of the Company contained in this Agreement were true and correct when originally
made and are true and correct in all material respects as of the Time of Sale and the Closing Date as if made on each such date
(except that those representations and warranties that address matters only as of a particular date remain true and correct as
of each such date); and the Company has complied with all agreements and satisfied all the conditions on its part required under
this Agreement to be performed or satisfied at or prior to the Closing Date;

 

(ii)       there
has not been, subsequent to the date of the most recent audited financial statements included or incorporated by reference in
the Disclosure Package, any material adverse change in the financial position or results of operations of the Company, or any
change or development that, singularly or in the aggregate, would involve a material adverse change or a prospective material
adverse change, in or affecting the condition (financial or otherwise), results of operations, business, assets or prospects of
the Company except as set forth in the Prospectus;

 

(iii)      no
stop order suspending the effectiveness of the Registration Statement or any part thereof or any amendment thereof or the qualification
of the Securities for offering or sale, nor suspending or preventing the use of the Disclosure Package, the Prospectus or any
Issuer Free Writing Prospectus shall have been issued, and no proceedings for that purpose or pursuant to Section 8A under the
Securities Act shall be pending or to its knowledge, threatened by the Commission or any state or regulatory body;

 

(iv)      the
Registration Statement and each amendment thereto, at the Time of Sale and as of the date of this Agreement and as of the Closing
Date did not include any untrue statement of a material fact and did not omit to state a material fact required to be stated therein
or necessary to make the statements therein not misleading, and the Disclosure Package, as of the Time of Sale and as of the Closing
Date, any Issuer Free Writing Prospectus as of its date and as of the Closing Date, the Prospectus and each amendment or supplement
thereto, as of the respective date thereof and as of the Closing Date, did not include any untrue statement of a material fact
and did not omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances
in which they were made, not misleading; and

 

    	 	25	 

     

    

 

(v)       no
event has occurred as a result of which it is necessary to amend or supplement the Registration Statement, the Prospectus or the
Disclosure Package in order to make the statements therein not untrue or misleading in any material respect.

  

(m)            
No FINRA Objection. The Placement Agent shall not have received any unresolved objection from the FINRA as to the fairness
and reasonableness of the amount of compensation allowable or payable to the Placement Agent in connection with the issuance and
sale of the Securities, the Agent’s Warrants and the Agent’s Warrant Shares.

 

(n)              
Purchase Agreements. The Company shall have entered into the Security Purchase Agreement and Warrant Purchase Agreement
with each of the Investors, and such agreement shall be in full force and effect on the Closing Date.

 

(o)              
Lock-Up Letters. The Placement Agent shall have received the written agreements, substantially in the form of Exhibit C
hereto, of all of the executive officers and directors of the Company set forth on Schedule III.

 

(p)              
Additional Documents. Prior to the Closing Date, the Company shall have furnished to the Placement Agent such further information,
certificates or documents as the Placement Agent shall have reasonably requested.

 

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

 

If any
condition specified in this Section 5 is not satisfied when and as required to be satisfied, this Agreement may be terminated
by the Placement Agent by notice to the Company at any time prior to the Closing Date, which termination shall be without liability
on the part of any party to any other party, except that Section 4, Section 6 and Section 8 hereof shall
at all times be effective and shall survive such termination.

  

    	 	26	 

     

    

 

6.                 
Indemnification and Contribution.

 

(a)               
Indemnification of the Placement Agent. The Company agrees to indemnify, defend and hold harmless the Placement Agent,
its affiliates and each of its and their respective directors, officers, members, employees, representatives and agents and its
affiliates, and each of its and their respective directors, officers, members, employees, representatives and agents and each
person who controls such Placement Agent within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange
Act, and the successors and assigns of all of the foregoing persons, from and against any losses, claims, damages, expenses or
liabilities, joint or several, to which such person may become subject, under the Securities Act, the Exchange Act, or other federal
or state statutory law or regulation, the common law or otherwise (including in settlement of any litigation if such settlement
is effected with the written consent of the Company), insofar as such losses, claims, damages or liabilities (or actions in respect
thereof) arise out of or are based upon (i) any untrue statement or alleged untrue statement of a material fact contained
in the Registration Statement, any Preliminary Prospectus, the Disclosure Package, the Prospectus, or any amendment or supplement
thereto, any Issuer Free Writing Prospectus or in any materials or information provided to Investors by, or with the approval
of, the Company in connection with the marketing of the offering of the Common Stock (“Marketing Materials”),
including any roadshow or investor presentations made to Investors by the Company (whether in person or electronically) or arise
out of or are based upon the omission or alleged omission to state therein a material fact required to be stated therein or necessary
to make the statements therein not misleading, and will reimburse such Placement Agent for any legal or other expenses reasonably
incurred by it in connection with investigating or defending against such loss, claim, damage, liability, expense or action; or
(ii) in whole or in part upon any inaccuracy in the representations and warranties of the Company contained herein; or
(iii) in whole or in part upon any failure of the Company to perform its obligations hereunder, under the Warrants, the
Agent’s Warrants or under law; provided, however, that the Company shall not be liable in any such case to the extent
that any such loss, claim, damage, expense, liability or action arises out of or is based upon an untrue statement or alleged
untrue statement or omission or alleged omission made in the Registration Statement, any Preliminary Prospectus, the Disclosure
Package, the Prospectus, or any such amendment or supplement, any Issuer Free Writing Prospectus or in any Marketing Materials,
in reliance upon and in conformity with written information furnished to the Company by the Placement Agent, specifically for
use in the preparation thereof, which information the parties hereto agree is limited to the Placement Agent’s Information.

 

(b)              
Indemnification of the Company. The Placement Agent agrees, severally, but not jointly, to indemnify, defend and hold harmless
the Company, its affiliates and each of its and their respective directors, officers, members, employees, representatives and
agents and its affiliates, and each of its and their respective directors, officers, members, employees, representatives and agents
and each person who controls the Company within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange
Act, and the successors and assigns of all of the foregoing persons against any losses, claims, damages, expenses or liabilities
to which the Company may become subject, under the Securities Act, the Exchange Act, or other federal or state statutory law or
regulation, the common law or otherwise (including in settlement of any litigation, if such settlement is effected with the written
consent of the Placement Agent), insofar as such losses, claims, damages, expenses or liabilities (or actions in respect thereof)
arise out of or are based upon any untrue statement or alleged untrue statement of a material fact contained in the Registration
Statement, any Preliminary Prospectus, the Disclosure Package, the Prospectus, or any amendment or supplement thereto or any Issuer
Free Writing Prospectus, or arise out of or are based upon the omission or alleged omission to state therein a material fact required
to be stated therein or necessary to make the statements therein not misleading, in each case to the extent, but only to the extent,
that such untrue statement or alleged untrue statement or omission or alleged omission was made in the Registration Statement,
any Preliminary Prospectus, the Disclosure Package, the Prospectus, or any such amendment or supplement thereto, or any Issuer
Free Writing Prospectus in reliance upon and in conformity with written information furnished to the Company by such Placement
Agent (whether directly or through the Placement Agent), specifically for use in the preparation thereof, which information the
parties hereto agree is limited to the Placement Agent’s Information, and will reimburse the Company for any legal or other
expenses reasonably incurred by the Company in connection with investigating or defending against any such loss, claim, damage,
liability or action. Notwithstanding the provisions of this Section 6(b), in no event shall any indemnity by the Placement
Agent under this Section 6(b) exceed the total compensation received by such Placement Agent in accordance with Section
1(b) hereof.

 

    	 	27	 

     

    

 

(c)               
Notice and Procedures. If any action, suit or proceeding (each, a “Proceeding”) is brought against a
person (an “Indemnified Party”) in respect of which indemnity may be sought against the Company or the Placement
Agent (as applicable, the “Indemnifying Party”) pursuant to subsections (a) or (b) above,
respectively, of this Section 6, such Indemnified Party shall promptly notify such Indemnifying Party in writing of
the institution of such Proceeding and such Indemnifying Party shall assume the defense of such Proceeding, including the employment
of counsel reasonably satisfactory to such Indemnified Party and payment of all fees and expenses; provided, however, that
the omission to so notify such Indemnifying Party shall not relieve such Indemnifying Party from any liability which such Indemnifying
Party may have to any Indemnified Party or otherwise, except to the extent the Indemnifying Party has been materially prejudiced
by such failure; and provided, further, that the failure to notify the Indemnifying Party shall not relieve it from any
liability that it may have to an Indemnified Party otherwise than under subsection (a) or (b) above. The Indemnified
Party or parties shall have the right to employ its or their own counsel in any such case, but the fees and expenses of such counsel
shall be at the expense of such Indemnified Party or parties unless (i) the employment of such counsel shall have been
authorized in writing by the Indemnifying Party in connection with the defense of such Proceeding, (ii) the Indemnifying
Party shall not have, within a reasonable period of time in light of the circumstances, employed counsel to defend such Proceeding
or (iii) such Indemnified Party or parties shall have reasonably concluded upon written advice of counsel that there
may be one or more legal defenses available to it or them which are different from, additional to or in conflict with those available
to such Indemnifying Party (in which case such Indemnifying Party shall not have the right to direct that portion of the defense
of such Proceeding on behalf of the Indemnified Party or parties, but such Indemnifying Party or parties may employ counsel and
participate in the defense thereof but the fees and expenses of such counsel shall be at the expense of the Indemnifying Party),
in any of which events such reasonable fees and expenses shall be borne by such Indemnifying Party and paid as incurred (it being
understood, however, that such Indemnifying Party shall not be liable for the expenses of more than one separate counsel (in addition
to any local counsel) in any one Proceeding or series of related Proceedings in the same jurisdiction representing the Indemnified
Parties who are parties to such Proceeding). An Indemnifying Party shall not be liable for any settlement of any Proceeding effected
without its written consent but, if settled with its written consent, such Indemnifying Party agrees to indemnify and hold harmless
the Indemnified Party or parties from and against any loss or liability by reason of such settlement. Notwithstanding the foregoing
sentence, if at any time an Indemnified Party shall have requested an Indemnifying Party to reimburse the Indemnified Party for
fees and expenses of counsel as contemplated by the second sentence of this Section 6(c), then the Indemnifying Party
agrees that it shall be liable for any settlement of any Proceeding effected without its written consent if (i) such
settlement is entered into more than 60 days after receipt by such Indemnifying Party of the aforesaid request, (ii) such
Indemnifying Party shall not have fully reimbursed the Indemnified Party in accordance with such request prior to the date of
such settlement and (iii) such Indemnified Party shall have given the Indemnifying Party at least 30 days’
prior notice of its intention to settle. No Indemnifying Party shall, without the prior written consent of the Indemnified Party,
effect any settlement, compromise or consent to the entry of judgment in any pending or threatened Proceeding in respect of which
any Indemnified Party is or could have been a party and indemnity could have been sought hereunder by such Indemnified Party,
unless such settlement includes an unconditional release of such Indemnified Party from all liability on claims that are the subject
matter of such Proceeding and does not include an admission of fault or culpability or a failure to act by or on behalf of such
Indemnified Party.

 

    	 	28	 

     

    

 

(d)              
Contribution. If the indemnification provided for in this Section 6 is unavailable to an Indemnified Party
under subsections (a) or (b) of this Section 6 or insufficient to hold an Indemnified Party
harmless in respect of any losses, claims, damages, liabilities or expenses referred to therein, then each applicable Indemnifying
Party, in lieu of indemnifying such Indemnified Party, shall contribute to the amount paid or payable by such Indemnified Party
as a result of the losses, claims, damages, liabilities or expenses referred to in subsections (a) or (b) above,
(i) in such proportion as is appropriate to reflect the relative benefits received by the Indemnifying Party or parties
on the one hand and the Indemnified Party or parties on the other hand from the offering of the Securities or (ii) if
the allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect
not only the relative benefits referred to in clause (i) above but also the relative fault of the Indemnifying Party or parties
on the one hand and the Indemnified Party or parties on the other hand in connection with the statements or omissions that resulted
in such losses, claims, damages, liabilities or expenses, as well as any other relevant equitable considerations. The relative
benefits received by the Company on the one hand and the Placement Agent on the other hand shall be deemed to be in the same respective
proportions as the total net proceeds from the offering of the Securities (before deducting expenses) received by the Company
bear to the Agency Fee received by the Placement Agent. The relative fault of the Company on the one hand and the Placement Agent
on the other hand shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a
material fact or the omission or alleged omission to state a material fact relates to information supplied by the Company, on
the one hand, or by the Placement Agent, on the other hand, and the parties’ relevant intent, knowledge, access to information
and opportunity to correct or prevent such untrue statement, omission, act or failure to act; provided that the parties
hereto agree that the written information furnished to the Company by the Placement Agent for use in the Registration Statement
or the Prospectus, or in any amendment or supplement thereto, consists solely of the Placement Agent’s Information relating
to the Placement Agent.

 

(e)                
Allocation. The Company and the Placement Agent agree that it would not be just and equitable if contribution pursuant
to subsection (d) above were to be determined by pro rata allocation or by any other method of allocation which does not
take into account the equitable considerations referred to in the first sentence of subsection (d) above. Notwithstanding
the provisions of this Section 6(e), no Placement Agent shall be required to contribute any amount in excess of the total
Agency Fee received by such Placement Agent in accordance with Section 1(b) less the amount of any damages which such Placement
Agent has otherwise paid or become liable to pay by reason of any untrue or alleged untrue statement, omission or alleged omission,
act or alleged act or failure to act or alleged failure to act. No person guilty of fraudulent misrepresentation (within the meaning
of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent
misrepresentation. The remedies provided for in this Section 6 are not exclusive and shall not limit any rights or remedies
which may otherwise be available to any Indemnified Party at law or in equity.

 

    	 	29	 

     

    

 

(f)               
Representations and Agreements to Survive Delivery. The obligations of the Company and the Placement Agent under this Section 6
shall be in addition to any liability which the Company and the Placement Agent may otherwise have. The indemnity and contribution
agreements contained in this Section 6 and the covenants, agreements, warranties and representations of the Company
contained in this Agreement shall remain operative and in full force and effect regardless of (i) any termination of this
Agreement, (ii) any investigation made by or on behalf of the Placement Agent, any person who controls such Placement
Agent within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act or any affiliate
of such Placement Agent, or by or on behalf of the Company, its directors or officers or any person who controls the Company within
the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act, and (iii) the issuance
and delivery of the Securities. The Company and the Placement Agent agree promptly to notify each other of the commencement of
any Proceeding against it and, in the case of the Company, against any of the Company’s officers or directors in connection
with the issuance and sale of the Securities, or in connection with the Registration Statement, the Disclosure Package or the
Prospectus.

 

7.                 
Information Furnished by the Placement Agent. The Company acknowledges that the statements set forth under the heading
“Plan of Distribution” in the Statutory Prospectus and the Prospectus (the “Placement Agent’s Information”)
constitute the only information relating to the Placement Agent furnished in writing to the Company by the Placement Agent as
such information is referred to in Sections 2 and 6 hereof.

 

8.                 
Termination. The Placement Agent shall have the right to terminate this Agreement by giving notice as hereinafter
specified at any time at or prior to the Closing Date, without liability on the part of the Placement Agent to the Company, if
(i) prior to delivery and payment for the Securities (A) trading in securities generally shall have been suspended
on or by the New York Stock Exchange, the NYSE MKT, the NASDAQ Global Market, the NASDAQ Capital Market or in the over-the-counter
markets, (B) trading in the Common Stock of the Company shall have been suspended on any exchange or in the over-the-counter
market or by the Commission, or (C) a general moratorium on commercial banking activities shall have been declared
by federal or New York state authorities or a material disruption shall have occurred in commercial banking or securities settlement
or clearance services in the United States, (D) there shall have occurred any outbreak or material escalation of hostilities
or acts of terrorism involving the United States or there shall have been a declaration by the United States of a national emergency
or war, or (E) there shall have occurred any other calamity or crisis or any material change in general economic, political
or financial conditions in the United States or elsewhere, if the effect of any such event specified in clause (D) or (E), in
the reasonable judgment of the Placement Agent, is material and adverse and makes it impractical or inadvisable to proceed with
the completion of the sale of and payment for the Securities on the Closing Date on the terms and in the manner contemplated by
this Agreement, the Disclosure Package and the Prospectus, (ii) since the time of execution of this Agreement or the earlier
respective dates as of which information is given in the Disclosure Package or incorporated by reference therein, there has been
any Material Adverse Effect, (iii) the Company shall have failed, refused or been unable to comply with the material terms
or perform any material agreement or obligation of this Agreement or the Purchase Agreements, other than by reason of a default
by the Placement Agent, or (iv) any condition of the Placement Agent’s obligations hereunder is not fulfilled. This
Agreement may be terminated by any party if the Closing does not occur on or before September 31, 2015. Any such termination shall
be without liability of any party to any other party except that the provisions of Section 4, Section 6,
and Section 12 hereof shall at all times be effective notwithstanding such termination.

 

    	 	30	 

     

    

 

9.                 
Notices. All statements, requests, notices and agreements hereunder shall be in writing or by facsimile, and:

 

(a)               
if to the Placement Agent, shall be delivered or sent by mail, telex or facsimile transmission as follows:

 

Northland Securities,
Inc.

45 South 7th Street,
Suite 2000

Minneapolis, MN 55402

Attention: Jeff Peterson

Facsimile No.: (612)
395-5216

 

with a copy (which
shall not constitute notice) to:

 

Faegre Baker Daniels,
LLP

90 S 7th Street,
Suite 2200

Minneapolis, MN 55402

Attention: Jonathan
Zimmerman

Facsimile No.: (612)
766-1600

 

(b)                
if to the Company shall be delivered or sent by mail, telex or facsimile transmission to:

 

Nxt-ID, Inc.

288 Christian Street

HC 2nd Floor

Oxford, CT 06478

 

with a copy (which
shall not constitute notice) to:

 

Robinson Brog

875 Third Avenue,
9th Floor

New York, NY 10022

Attention: David
Danovitch

Facsimile No.: (212)
603-6391

 

Any
such statements, requests, notices or agreements shall be effective only upon receipt. Any party to this Agreement may change
such address for notices by sending to the parties to this Agreement written notice of a new address for such purpose.

 

    	 	31	 

     

    

 

10.             
Persons Entitled to Benefit of Agreement. This Agreement shall inure to the benefit of and shall be binding upon
the Placement Agent, the Company, and their respective successors and assigns. Nothing expressed or mentioned in this Agreement
is intended or shall be construed to give any person other than the persons mentioned in the preceding sentence any legal or equitable
right, remedy or claim under or in respect of this Agreement, or any provisions herein contained, this Agreement and all conditions
and provisions hereof being intended to be and being for the sole and exclusive benefit of such persons and for the benefit of
no other person, except that (i) the representations, warranties, covenants, agreements and indemnities of the Company
contained in this Agreement shall also be for the benefit of the controlling persons, officers and directors referred to in Section
6(a) hereof and the indemnities of the Placement Agent shall also be for the benefit of the controlling persons, officers
and directors referred to in Section 6(b) hereof; and (ii) the Investors are relying on the representations, warranties,
covenants and agreements made by the Company under, and are intended third party beneficiaries of, this Agreement. The term “successors
and assigns” as herein used shall not include any purchaser of the Securities by reason merely of such purchase.

 

11.            
Governing Law; Submission to Jurisdiction. This Agreement shall be governed by, and construed in accordance with,
the laws of the State of New York, without giving effect to the conflicts of laws provisions thereof. Except as set forth below,
no Proceeding may be commenced, prosecuted or continued in any court other than the courts of State of New York located in the
City and County of New York or the United States District Court for the Southern District of New York, which courts shall have
jurisdiction over the adjudication of such matters, and the parties hereby consent to the jurisdiction of such courts and personal
service with respect thereto. The Company hereby consents to personal jurisdiction, service and venue in any court in which any
Proceeding arising out of or in any way relating to this Agreement is brought by any third party against the Placement Agent.
All parties hereby waive all right to trial by jury in any Proceeding (whether based upon contract, tort or otherwise) in any
way arising out of or relating to this Agreement. All parties agree that a final judgment in any such Proceeding brought in any
such court shall be conclusive and binding upon each party and may be enforced in any other courts in the jurisdiction of which
a party is or may be subject, by suit upon such judgment.

 

12.             
No Fiduciary Relationship. The Company hereby acknowledges and agrees that:

 

(a)               
No Other Relationship. The Placement Agent have been retained solely to act as the exclusive placement agent in connection
with the offering of the Company’s securities. The Company further acknowledges that the Placement Agent are acting pursuant
to a contractual relationship created solely by this Agreement entered into on an arm’s-length basis and in no event do
the parties intend that the Placement Agent act or be responsible as a fiduciary to the Company, its management, stockholders,
creditors or any other person in connection with any activity that such Placement Agent may undertake or has undertaken in furtherance
of the offering of the Company’s securities, either before or after the date hereof, irrespective of whether the Placement
Agent has advised or is advising the Company on other matters. The Placement Agent hereby expressly disclaims any fiduciary or
similar obligations to the Company, either in connection with the transactions contemplated by this Agreement or any matters leading
up to such transactions, and the Company hereby confirms its understanding and agreement to that effect.

 

    	 	32	 

     

    

 

(b)               
Arm’s-Length Negotiations. The price of the Securities set forth in this Agreement was established by the Company
following discussions and arm’s-length negotiations with the Investors and the Placement Agent, and the Company is capable
of evaluating and understanding, and understands and accepts, the terms, risks and conditions of the transactions contemplated
by this Agreement.

 

(c)               
Absence of Obligation to Disclose. The Company has been advised that the Placement Agent and their affiliates are engaged
in a broad range of transactions which may involve interests that differ from those of the Company and that no Placement Agent
has any obligation to disclose such interests or transactions to the Company by virtue of any fiduciary, advisory or agency relationship.

 

(d)              
Waiver. The Company hereby waives and releases, to the fullest extent permitted by law, any claims that the Company may
have against the Placement Agent with respect to any breach or alleged breach of any fiduciary or similar duty to the Company
in connection with the transactions contemplated by this Agreement or any matters leading up to such transactions and agrees that
the Placement Agent shall have no liability (whether direct or indirect) to the Company in respect of such a fiduciary duty claim
to any person asserting a fiduciary duty claim on behalf of the Company, including stockholders, employees or creditors of the
Company.

 

13.             Headings.
The Section headings in this Agreement have been inserted as a matter of convenience of reference and are not a part of this Agreement.

 

14.             
Amendments and Waivers. No supplement, modification or waiver of this Agreement shall be binding unless executed
in writing by the party to be bound thereby. The failure of a party to exercise any right or remedy shall not be deemed or constitute
a waiver of such right or remedy in the future. No waiver of any of the provisions of this Agreement shall be deemed or shall
constitute a waiver of any other provision hereof (regardless of whether similar), nor shall any such waiver constitute a continuing
waiver unless otherwise expressly provided.

 

15.             
Counterparts. This Agreement may be executed in one or more counterparts and, if executed in more than one counterpart,
the executed counterparts shall each be deemed to be an original and all such counterparts shall together constitute one and the
same instrument. Delivery of an executed counterpart by facsimile or portable document format (.pdf) shall be effective as delivery
of a manually executed counterpart thereof.

 

    	 	33	 

     

    

 

16.             
Research Analyst Independence. The Company acknowledges that the Placement Agent’s research analysts and research
departments are required to be independent from its investment banking division and are subject to certain regulations and internal
policies, and that such Placement Agent’s research analysts may hold views and make statements or investment recommendations
and/or publish research reports with respect to the Company and/or the offering that differ from the views of their investment
banking division. The Company hereby waives and releases, to the fullest extent permitted by law, any claims that the Company
may have against each of the Placement Agent with respect to any conflict of interest that may arise from the fact that the views
expressed by its independent research analysts and research department may be different from or inconsistent with the views or
advice communicated to the Company by such Placement Agent’s investment banking division. The Company acknowledges that
the Placement Agent is a full service securities firm and as such from time to time, subject to applicable securities laws, rules
and regulations, may effect transactions for its own account or the account of its customers and hold long or short positions
in debt or equity securities of the Company; provided, however, that nothing in this Section 16 shall relieve
the Placement Agent of any responsibility or liability it may otherwise bear in connection with activities in violation of applicable
securities laws, rules or regulations.

 

17.             
Entire Agreement. This Agreement constitutes the entire agreement of the parties to this Agreement with respect
to the Company’s offering, issuance and sale of the Securities and the Agent’s Warrants and supersedes all prior written
or oral and all contemporaneous oral agreements, understandings and negotiations with respect to the subject matter hereof.

 

18.             
Partial Unenforceability. The invalidity or unenforceability of any section, paragraph, clause or provision of this
Agreement shall not affect the validity or enforceability of any other section, paragraph, clause or provision hereof. If any
section, paragraph, clause or provision of this Agreement is for any reason determined to be invalid or unenforceable, there shall
be deemed to be made such minor changes (and only such minor changes) as are necessary to make it valid and enforceable.

 

19.             
Effectiveness. This Agreement shall become effective upon the execution and delivery hereof by the parties hereto.

 

[Signature
page follows.]

 

    	 	34	 

     

    

 

If
the foregoing is in accordance with your understanding of the agreement between the Company and the Placement Agent, kindly indicate
your acceptance in the space provided for that purpose below.

 

	 	Very
    truly yours,
	 	 
	 	NXT-ID,
    INC.
	 	 
	 	By:
     	 
	 	 	Name:
	 	 	Title:

 

	Accepted
    as of    
	the
    date first above written:    
	 
	NORTHLAND
    SECURITIES, INC.     
	 
	By:	 	 
	 	Name:	 
	 	Title:	 

 

 

 

 

 

 

Signature
Page to

Placement
Agency Agreement

 

     

     

    

 

Schedules
and Exhibits

 

	Schedule
    I	 	Issuer
    Free Writing Prospectus
	 	 	 
	Schedule
    III	 	List
    of Directors and Officers For Lock-Up Letter
	 	 	 
	Exhibit
    A:	 	Form
    of Warrant
	 	 	 
	Exhibit
    B:	 	Pricing
    Information
	 	 	 
	Exhibit
    C:	 	Form
    of Lock-Up Letter

 

     

     

    

 

Schedule
I

  

Issuer
Free Writing Prospectus

 

 

 

 

 

 

 

None.

 

     

     

    

 

Schedule
III

  

List
of Directors and Officers For Lock-Up

 

	Gino
    Pereira
	Vincent
    Miceli
	David
    Tunnell
	Major
    General David Gust
	Michael
    D’Almada-Remedios
	Daniel
    Sharkey

 

     

     

    

 

 

Exhibit
A

 

Form
of Warrant

 

 

[attached]

 

     

     

    

 

NXT-ID,
INC.

  

FORM
OF WARRANT 

 

	Warrant No.: ___	Original
    Issue:
	Date: ________, 2015	 ________,
    2015

 

NXT-ID,
INC. a Delaware corporation (the “Company”), hereby certifies that, for value received, ______________
or its registered assigns (the “Holder”), is entitled to purchase from the Company up to a total of 86,071.45
shares of Common Stock (each such share, a “Warrant Share” and all such shares, the “Warrant Shares”),
at any time and from time to time from and after the Original Issue Date and through and including _________, 2020 (the “Expiration
Date”) relating to an offering of Common Stock by the Company, and subject to the following terms and conditions:

 

This
Warrant is granted in connection with that certain Placement Agency Agreement, dated July 30, 2015 between the Company and Northland
Securities, Inc. (the “Placement Agency Agreement”) and the offering of 1,721,429 Shares of the Common Stock
and warrants, which are exercisable for shares of the Common Stock, registered on the Company’s Registration Statement on
Form S-3 (the “Registration Statement”) filed with the U.S. Securities and Exchange Commission (the “SEC”)
and declared effective on May 14, 2015, as amended (the “Offering”).

 

1.       Definitions.
As used in this Warrant, the following terms shall have the respective definitions set forth in this Section 1. Capitalized
terms that are used and not defined in this Warrant that are defined in the Placement Agency Agreement shall have the respective
definitions set forth in the Placement Agency Agreement.

 

“Closing
Price” means, for any date of determination, the price determined by the first of the following clauses that applies:
(i) if the Common Stock is then listed or quoted on a Trading Market, the closing bid price per share of the Common Stock for
such date (or the nearest preceding date) on such market; (ii) if prices for the Common Stock are then quoted on the OTC Bulletin
Board or OTC Quotation Board, the closing bid price per share of the Common Stock for such date (or the nearest preceding date)
so quoted; (iii) if prices for the Common Stock are then reported in the “Pink Sheets” published by the National Quotation
Bureau Incorporated (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 (iv) in all other cases, the fair market value of a share of Common Stock
as determined by an independent qualified appraiser selected in good faith and paid for by the Company.

 

“Common
Stock” means the common stock of the Company, par value $0.0001 per share, and any securities into which such common
stock may hereafter be reclassified.

 

“Exercise
Price” means $_______, subject to adjustment in accordance with Section 9.

 

“Fundamental
Transaction” means any of the following: (i) the Company effects any merger or consolidation of the Company with or
into another person, (ii) the Company effects any sale of all or substantially all of its assets in one or a series of related
transactions, (iii) any tender offer or exchange offer (whether by the Company or another person) is completed pursuant to which
holders of Common Stock are permitted to tender or exchange their shares for other securities, cash or property, or (iv) the Company
effects any reclassification 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.

 

     

     

    

 

“Original
Issue Date” means the Original Issue Date first set forth on the first page of this Warrant or its predecessor instrument.

 

“Trading
Day” means (i) a day on which the Common Stock is traded on a Trading Market (other than the OTC Bulletin Board or OTC
Quotation Board), or (ii) if the Common Stock is not listed on a Trading Market (other than the OTC Bulletin Board or OTC Quotation
Board), a day on which the Common Stock is traded in the over-the-counter market, as reported by the OTC Bulletin Board or OTC
Quotation Board, or (iii) if the Common Stock is not quoted on any Trading Market, a day on which the Common Stock is quoted in
the over-the-counter market as reported by the National Quotation Bureau Incorporated (or any similar organization or agency succeeding
to its functions of reporting prices); provided, that in the event that the Common Stock is not listed or quoted as set forth
in clauses (i), (ii) and (iii) hereof, then Trading Day shall mean any day, other than a Saturday or Sunday and other than a day
that banks in the State of New York are generally authorized or required by applicable law to be closed.

 

“Trading
Market” means whichever of the New York Stock Exchange, NYSE AMEX, the NASDAQ Global Select Market, the NASDAQ Global
Market, the NASDAQ Capital Market or the OTC Bulletin Board or OTC Quotation Board on which the Common Stock is listed or quoted
for trading on the date in question.

 

2.       Registration
of Warrant. 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.

 

3.
     Registration of Transfers. The Company shall register the transfer of any portion of this Warrant
in the Warrant Register, upon surrender of this Warrant, with the Form of Assignment attached hereto duly completed and signed,
to the Company at its address specified herein. Upon any such registration or transfer, a new Warrant to purchase Common Stock,
in substantially the form of this Warrant (any such new Warrant, a “New Warrant”), evidencing the portion of
this Warrant so transferred shall be issued to the transferee and a New Warrant evidencing the remaining portion of this Warrant
not so transferred, if any, shall be issued to the transferring Holder. The acceptance of the New Warrant by the transferee thereof
shall be deemed the acceptance by such transferee of all of the rights and obligations of a holder of a Warrant.

 

4.       Exercise
and Duration of Warrants. 

 

(a)       This
Warrant shall be exercisable by the registered Holder in whole at any time and in part from time to time from the Original Issue
Date through and including the Expiration Date. At 5:00 p.m., Eastern time on the Expiration Date, the portion of this Warrant
not exercised prior thereto shall be and become void and of no value. The Company may not call or redeem any portion of this Warrant
without the prior written consent of the affected Holder. In no event will the Company be required to net cash settle the Warrant
exercise.

 

(b)       Notwithstanding
anything to the contrary contained herein, the number of Warrant Shares that may be acquired by the Holder upon any exercise of
this Warrant (or otherwise in respect hereof) shall be limited to the extent necessary to ensure that, following such exercise
(or other issuance), the total number of shares of Common Stock then beneficially owned by such Holder and its affiliates (as
defined under Rule 144, “Affiliates”) and any other persons whose beneficial ownership of Common Stock would
be aggregated with the Holder’s for purposes of Section 13(d) of the Exchange Act, does not exceed 4.999% of the total number
of issued and outstanding shares of Common Stock (including for such purpose the shares of Common Stock issuable upon such exercise). 
For such purposes, beneficial ownership shall be determined in accordance with Section 13(d) of the Exchange Act and the rules
and regulations promulgated thereunder.  This provision shall not restrict the number of shares of Common Stock which a Holder
may receive or beneficially own in order to determine the amount of securities or other consideration that such Holder may receive
in the event of a Fundamental Transaction as contemplated in Section 9 of this Warrant.  By written notice to the Company,
the Holder may waive the provisions of this Section 4(b) but any such waiver will not be effective until the 61st day after delivery
of such notice, nor will any such waiver effect any other Holder.

 

    	 	A-2	 

     

    

 

Notwithstanding
anything to the contrary contained herein, the number of Warrant Shares that may be acquired by the Holder upon any exercise of
this Warrant (or otherwise in respect hereof) shall be limited to the extent necessary to insure that, following such exercise
(or other issuance), the total number of shares of Common Stock then beneficially owned by such Holder and its Affiliates and
any other persons whose beneficial ownership of Common Stock would be aggregated with the Holder’s for purposes of Section
13(d) of the Exchange Act, does not exceed 9.999% of the total number of issued and outstanding shares of Common Stock (including
for such purpose the shares of Common Stock issuable upon such exercise).  For such purposes, beneficial ownership shall
be determined in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder. 
This provision shall not restrict the number of shares of Common Stock which a Holder may receive or beneficially own in order
to determine the amount of securities or other consideration that such Holder may receive in the event of a Fundamental Transaction
as contemplated in Section 9 of this Warrant.  This restriction may not be waived.

 

5.       Delivery
of Warrant Shares. 

 

(a)       To
effect exercises hereunder, the Holder shall not be required to physically surrender this Warrant unless the aggregate Warrant
Shares represented by this Warrant are being exercised. Upon delivery of the Exercise Notice (in the form attached hereto) to
the Company (with the attached Warrant Shares Exercise Log) at its address for notice set forth herein and upon payment of the
Exercise Price multiplied by the number of Warrant Shares that the Holder intends to purchase hereunder and the Company shall
promptly (but in no event later than three Trading Days after the Date of Exercise (as defined herein)) issue and deliver to the
Holder, a certificate for the Warrant Shares issuable upon such exercise, which, unless otherwise required by applicable law,
shall be free of restrictive legends. A “Date of Exercise” means the date on which the Holder shall have delivered
to the Company: (i) the Exercise Notice (with the Warrant Exercise Log attached to it), appropriately completed and duly signed
and (ii) if such Holder is not utilizing the cashless exercise provisions set forth in this Warrant, payment of the Exercise Price
for the number of Warrant Shares so indicated by the Holder to be purchased.

 

(b)       If
by the third Trading Day after a Date of Exercise the Company fails to deliver the required number of Warrant Shares in the manner
required pursuant to Section 5(a), then the Holder will have the right to rescind such exercise.

 

(c)       If
by the third Trading Day after a Date of Exercise the Company fails to deliver the required number of Warrant Shares in the manner
required pursuant to Section 5(a), and if after such third Trading Day and prior to the receipt of such Warrant Shares, the Holder
purchases (in an open market transaction or otherwise) 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 (1) pay in cash to the Holder the amount 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 amount obtained by multiplying (A) the number of Warrant Shares
that the Company was required to deliver to the Holder in connection with the exercise at issue by (B) the closing bid price of
the Common Stock at the time of the obligation giving rise to such purchase obligation and (2) 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 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. The Holder shall provide the Company written notice indicating the amounts payable to the
Holder in respect of the Buy-In.

 

    	 	A-3	 

     

    

 

(d)       The
Company’s obligations to issue and deliver Warrant Shares in accordance with the terms hereof are absolute and unconditional,
irrespective of any action or inaction by the Holder to enforce the same, any waiver or consent with respect to any provision
hereof, the recovery of any judgment against any person or any action to enforce the same, or any setoff, counterclaim, recoupment,
limitation or termination, or any breach or alleged breach by the Holder or any other person of any obligation to the Company
or any violation or alleged violation of law by the Holder or any other person, and irrespective of any other circumstance which
might otherwise limit such obligation of the Company to the Holder in connection with the issuance of Warrant Shares. 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 certificates representing Warrant Shares upon exercise of the Warrant as required pursuant to the terms hereof.

 

6.       Charges,
Taxes and Expenses. Issuance and delivery of Warrant Shares upon exercise of this Warrant shall be made without charge to
the Holder for any issue or transfer tax, withholding tax, transfer agent fee or other incidental tax or expense in respect of
the issuance of such certificates, all of which taxes and expenses shall be paid by the Company; provided, however, that the Company
shall not be required to pay any tax which may be payable in respect of any transfer involved in the registration of any certificates
for Warrant Shares or Warrants in a name other than that of the Holder. The Holder shall be responsible for all other tax liability
that may arise as a result of holding or transferring this Warrant or receiving Warrant Shares upon exercise hereof.

 

7.       Replacement
of Warrant. If this Warrant is mutilated, lost, stolen or destroyed, the Company shall issue or cause to be issued in exchange
and substitution for and upon cancellation hereof, or in lieu of and substitution for this Warrant, a New Warrant, but only upon
receipt of evidence reasonably satisfactory to the Company of such loss, theft or destruction and customary and reasonable indemnity
(which shall not include a surety bond), if requested. Applicants for a New Warrant under such circumstances shall also comply
with such other reasonable regulations and procedures and pay such other reasonable third-party costs as the Company may prescribe.
If a New Warrant is requested as a result of a mutilation of this Warrant, then the Holder shall deliver such mutilated Warrant
to the Company as a condition precedent to the Company’s obligation to issue the New Warrant.

 

8.       Reservation
of Warrant Shares. The Company covenants that it will at all times reserve and keep available out of the aggregate of its
authorized but unissued and otherwise unreserved Common Stock, solely for the purpose of enabling it to issue Warrant Shares upon
exercise of this Warrant as herein provided, the number of Warrant Shares which are then issuable and deliverable upon the exercise
of this entire Warrant, free from preemptive rights or any other contingent purchase rights of Persons other than the Holder (taking
into account the adjustments and restrictions of Section 9). The Company covenants that all Warrant Shares so issuable and deliverable
shall, upon issuance and the payment of the applicable Exercise Price in accordance with the terms hereof, be duly and validly
authorized, issued and fully paid and nonassessable.

 

9.       Certain
Adjustments. The Exercise Price and number of Warrant Shares issuable upon exercise of this Warrant are subject to adjustment
from time to time as set forth in this Section 9.

 

(a)       Stock
Dividends and Splits. If the Company, at any time while this Warrant is outstanding, (i) pays a stock dividend on its Common
Stock or otherwise makes a distribution on any class of capital stock that is payable in shares of Common Stock, (ii) subdivides
outstanding shares of Common Stock into a larger number of shares, or (iii) combines outstanding shares of Common Stock into a
smaller number of shares, then in each such case the Exercise Price shall be adjusted to equal the product obtained by multiplying
the then-current Exercise Price by a fraction of which the numerator shall be the number of shares of Common Stock outstanding
immediately before such event and of which the denominator shall be the number of shares of Common Stock outstanding immediately
after such event. Any adjustment made pursuant to clause (i) of this paragraph shall become effective immediately after the record
date for the determination of stockholders entitled to receive such dividend or distribution, and any adjustment pursuant to clause
(ii) or (iii) of this paragraph shall become effective immediately after the effective date of such subdivision or combination.

 

    	 	A-4	 

     

    

 

(b)       Fundamental
Transactions. If, at any time while this Warrant is outstanding there is a Fundamental Transaction, then the Holder shall
have the right thereafter to receive, upon exercise of this Warrant, the same amount and kind of securities, cash or property
as it would have been entitled to receive upon the occurrence of such Fundamental Transaction if it had been, immediately prior
to such Fundamental Transaction, the holder of the number of Warrant Shares then issuable upon exercise in full of this Warrant
(the “Alternate Consideration”). 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. At the Holder’s option and request, any successor to the Company or
surviving entity in such Fundamental Transaction shall, either (1) issue to the Holder a new warrant substantially in the form
of this Warrant and consistent with the foregoing provisions and evidencing the Holder’s right to purchase the Alternate
Consideration for the aggregate Exercise Price upon exercise thereof, or (2) purchase the Warrant from the Holder for a purchase
price, payable in cash within five Trading Days after such request (or, if later, on the effective date of the Fundamental Transaction),
equal to the Black Scholes value of the remaining unexercised portion of this Warrant on the date of such request. The terms of
any agreement pursuant to which a Fundamental Transaction is effected shall include terms requiring any such successor or surviving
entity to comply with the provisions of this paragraph (b) and insuring that the Warrant (or any such replacement security) will
be similarly adjusted upon any subsequent transaction analogous to a Fundamental Transaction.

 

(c)       Number
of Warrant Shares. Simultaneously with any adjustment to the Exercise Price pursuant to this Section 9, the number of Warrant
Shares that may be purchased upon exercise of this Warrant shall be increased or decreased proportionately, so that after such
adjustment the aggregate Exercise Price payable hereunder for the adjusted number of Warrant Shares shall be the same as the aggregate
Exercise Price in effect immediately prior to such adjustment.

 

(d)       Calculations.
All calculations under this Section 9 shall be made to the nearest cent or the nearest 1/100th of a share, as applicable.
The number of shares of Common Stock outstanding at any given time shall not include shares owned or held by or for the account
of the Company, and the disposition of any such shares shall be considered an issue or sale of Common Stock.

 

(e)       Notice
of Adjustments. Upon the occurrence of each adjustment pursuant to this Section 9, the Company at its expense will promptly
compute such adjustment in accordance with the terms of this Warrant and prepare a certificate setting forth such adjustment,
including a statement of the adjusted Exercise Price and adjusted number or type of Warrant Shares or other securities issuable
upon exercise of this Warrant (as applicable), describing the transactions giving rise to such adjustments and showing in detail
the facts upon which such adjustment is based. Upon written request, the Company will promptly deliver a copy of each such certificate
to the Holder and to the Company’s transfer agent.

 

    	 	A-5	 

     

    

 

10.     Payment
of Exercise Price. The Holder may pay the Exercise Price in one of the following manners:

 

(a)       Cash
Exercise. The Holder may deliver immediately available funds; or

 

(b)       Cashless
Exercise. The Holder may notify the Company in an Exercise Notice of its election to utilize a cashless exercise, in which
event the Company shall issue to the Holder the number of Warrant Shares determined as follows:

 

X
= Y [(A-B)/A]  

 

where:

 

X
= the number of Warrant Shares to be issued to the Holder.

Y
= the number of Warrant Shares with respect to which this Warrant is being exercised.

A
= the average of the Closing Prices for the five Trading Days immediately prior to (but not including) the Exercise Date.

B
= the Exercise Price.  

 

For
purposes of Rule 144 promulgated under the Securities Act, it is intended, understood and acknowledged that the Warrant Shares
issued in a cashless exercise transaction shall be deemed to have been acquired by the Holder, and the holding period for the
Warrant Shares shall be deemed to have commenced, on the date this Warrant was originally issued.

 

11.     No
Fractional Shares. No fractional shares of Warrant Shares will be issued in connection with any exercise of this Warrant.
In lieu of any fractional shares which would, otherwise be issuable, the Company shall pay cash equal to the product of such fraction
multiplied by the Closing Price of one Warrant Share on the date of exercise.

 

12.     Notices.
Any and all notices or other communications or deliveries hereunder (including, without limitation, any Exercise Notice) shall
be in writing and shall be deemed given and effective if provided pursuant to the Placement Agency Agreement. In case any time:
(1) the Company shall declare any cash dividend on its capital stock; (2) the Company shall pay any dividend payable in stock
upon its capital stock or make any distribution to the holders of its capital stock; (3) the Company shall offer for subscription
pro rata to the holders of its capital stock any additional shares of stock of any class or other rights; (4) there shall be any
capital reorganization, or reclassification of the capital stock of the Company, or consolidation or merger of the Company with,
or sale of all or substantially all of its assets to, another corporation; or (5) there shall be a voluntary or involuntary dissolution,
liquidation or winding up of the Company; then, in any one or more of said cases, the Company shall give prompt written notice
to the Holder. Such notice shall also specify the date as of which the holders of capital stock of record shall participate in
such dividend, distribution or subscription rights, or shall be entitled to exchange their capital stock for securities or other
property deliverable upon such reorganization, reclassification, consolidation, merger, sale, dissolution, liquidation or winding
up, or conversion or redemption, as the case may be. Such written notice shall be given at least 20 days prior to the action in
question and not less than 20 days prior to the record date or the date on which the Company’s transfer books are closed
in respect thereto.

 

13.     Lock
Up. Notwithstanding any other provision of this Warrant, in accordance with FINRA Rule 5110(g), this Warrant shall not be
sold during the Offering, or sold, transferred, assigned, pledged, or hypothecated, or be the subject of any hedging, short sale,
derivative, put, or call transaction that would result in the effective economic disposition of this Warrant or the Warrant Shares,
by any person for a period of 180 days immediately following the date of effectiveness or commencement of sales of the Offering,
except as provided in paragraph (g)(2) of FINRA Rule 5110.

 

14.
   Transfer; Assignment. Subject to compliance with any applicable securities laws, this Warrant may
be transferred or assigned by the Holder without the consent of the Company (including, without limitation, transfers or assignments
to the Holder’s employees and affiliates). This Warrant may not be assigned by the Company without the written consent of
the Holder.

 

    	 	A-6	 

     

    

 

15.     Miscellaneous.

 

(a)       This
Warrant shall be binding on and inure to the benefit of the parties hereto and their respective successors and assigns. Subject
to the preceding sentence, nothing in this Warrant shall be construed to give to any person other than the Company and the Holder
any legal or equitable right, remedy or cause of action under this Warrant. This Warrant may be amended only in writing signed
by the Company and the Holder and their successors and assigns.

 

(b)       All
questions concerning the construction, validity, enforcement and interpretation of this Warrant shall be governed by and construed
and enforced in accordance with the internal laws of the State of New York, without regard to the principles of conflicts of law
thereof.

 

(c)       The
headings herein are for convenience only, do not constitute a part of this Warrant and shall not be deemed to limit or affect
any of the provisions hereof.

 

(d)       In
case any one or more of the provisions of this Warrant shall be invalid or unenforceable in any respect, the validity and enforceability
of the remaining terms and provisions of this Warrant shall not in any way be affected or impaired thereby and the parties will
attempt in good faith to agree upon a valid and enforceable provision which shall be a commercially reasonable substitute therefor,
and upon so agreeing, shall incorporate such substitute provision in this Warrant.

 

(e)       Prior
to exercise of this Warrant, the Holder hereof shall not, by reason of by being a Holder, be entitled to any rights of a stockholder
with respect to the Warrant Shares.

 

[Remainder
of page intentionally left blank, signature page follows] 

 

    	 	A-7	 

     

    

 

In
witness whereof, the Company has caused this Warrant to be duly executed by its authorized officer as of the date first indicated
above.

 

 

	 	nxt-id,
    inc.
	 	 
	 	By:	                   
	 	Name:	 
	 	Its:	 

 

	Accepted
                                         and agreed:  

                                                                                                      

        NORTHLAND
        SECURITIES, INC.

	 	 	 
	By:	 	 
	Name:	                       	 
	Its:	 	 

 

    	 	A-8	 

     

    

 

EXERCISE
NOTICE

 

The
undersigned Holder hereby irrevocably elects to purchase                     
shares of Common Stock pursuant to the attached Warrant. Capitalized terms used herein and not otherwise defined have the
respective meanings set forth in the Warrant.

 

(1)
The undersigned Holder hereby exercises its right to purchase                     
Warrant Shares pursuant to the Warrant.

 

(2)
The Holder intends that payment of the Exercise Price shall be made as (check one):

 

☐
“Cash Exercise” under Section 10 

 

☐
“Cashless Exercise” under Section 10

 

(3)
If the Holder has elected a Cash Exercise, the Holder shall pay the sum of $____________ to the Company in accordance with the
terms of the Warrant.

 

(4)
Pursuant to this Exercise Notice, the Company shall deliver to the Holder                     
Warrant Shares in accordance with the terms of the Warrant.

 

	Dated
    ______________ __, _____	Name
                                         of Holder:

                                                                                 

                                                                                (Print)
                                         

	 	 	 
	 	 
	 	 	 
	 	By:	 
	 	Its:	                  
	 	(Signature
    must conform in all respects to name of holder as specified on the face of the Warrant)

 

    	 	A-9	 

     

    

 

Warrant
Shares Exercise Log

 

	Date	 	Number of Warrant
 Shares
                                         Available
 to
                                         be Exercised
	 	Number of Warrant
 Shares Exercised
	 	Number of Warrant
 Shares
                                         Remaining
 to
                                         be Exercised

	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

 

    	 	A-10	 

     

    

 

FORM
OF ASSIGNMENT

 

[To
be completed and signed only upon transfer of Warrant]

 

FOR
VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto                             
the right represented by the attached Warrant to purchase                 
shares of Common Stock to which such Warrant relates and appoints                             
attorney to transfer said right on the books of the Company with full power of substitution in the premises.

 

Dated:
__________ __, _______

 

	 	 
	 	(Signature
    must conform in all respects to name of holder as specified on the face of the Warrant)
	 	 
	 	Address
    of Transferee
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	Note:
    Address for Delivery may not be a P.O. box and must be a physical address where stock certificates may be delivered in connection
    with this purchase or any future stock issued through splits, warrant conversions or other circumstances. The delivery address
    may be a personal residence, or a broker dealer where the certificate would be deposited

 

    	 	A-11	 

     

    

 

Exhibit
B

 

Pricing
Information

  

Number
of Shares of Common Stock: 1,721,429

 

Price
Per Share: $1.75

 

     

     

    

 

EXHIBIT
C

 

Form
of Lock Up Agreement

 

[attached]

 

     

     

    

 

Form
of Lock-Up Agreement

 

July
__, 2015

  

Northland
Securities, Inc.

As
representatives of the underwriters named

in
Schedule I to the Purchase Agreement 

referred
to below

c/oNorthland
Securities, Inc.

45
South 7th Street, Suite 2000

Minneapolis,
MN 55402

 

Ladies
and Gentlemen:

 

As
an inducement to the underwriters (the “Underwriters”) to execute a purchase agreement (the “Purchase
Agreement”) providing for a public offering (the “Offering”) of securities of Nxt-ID, Inc. and any
successor (by merger or otherwise) thereto (the “Company”), the undersigned hereby agrees that without, in
each case, the prior written consent of Northland Securities, Inc. (the “Representative”) during the period
specified in the second succeeding paragraph (the “Lock-Up Period”), the undersigned will not: (1) offer, pledge,
announce the intention to sell, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract
to sell, grant any option, right or warrant to purchase, make any short sale or otherwise transfer or dispose of, directly or
indirectly, any shares of the Company’s common stock (the “Common Stock”) or any securities convertible
into, exercisable or exchangeable for or that represent the right to receive Common Stock (including without limitation, Common
Stock which may be deemed to be beneficially owned by the undersigned in accordance with the rules and regulations of the Securities
and Exchange Commission and securities which may be issued upon exercise of a stock option or warrant) whether now owned or hereafter
acquired (the “Undersigned’s Securities”); (2) enter into any swap or other agreement that transfers,
in whole or in part, any of the economic consequences of ownership of the Undersigned’s Securities, whether any such transaction
described in clause (1) or (2) above is to be settled by delivery of Common Stock or such other securities, in cash or otherwise;
(3) make any demand for or exercise any right with respect to, the registration of any Common Stock or any security convertible
into or exercisable or exchangeable for Common Stock; or (4) publicly disclose the intention to do any of the foregoing.

 

The
undersigned agrees that the foregoing restrictions preclude the undersigned from engaging in any hedging or other transaction
which is designed to or which reasonably could be expected to lead to or result in a sale or disposition of the Undersigned’s
Securities even if such Securities would be disposed of by someone other than the undersigned. Such prohibited hedging or other
transactions would include without limitation any short sale or any purchase, sale or grant of any right (including without limitation
any put or call option) with respect to any of the Undersigned’s Securities or with respect to any security that includes,
relates to, or derives any significant part of its value from such Securities.

 

The
initial Lock-Up Period will commence on the date of this Agreement and continue and include the date 90 days after the date of
the final prospectus used to sell Common Stock in the Offering pursuant to the Purchase Agreement; provided, however, that if
(1) during the last 17 days of the initial Lock-Up Period, the Company releases earnings results or material news or a material
event relating to the Company occurs or (2) prior to the expiration of the initial Lock-Up Period, the Company announces that
it will release earnings results during the 16-day period beginning on the last day of the initial Lock-Up Period, then in each
case the initial Lock-Up Period will be extended until the expiration of the 18-day period beginning on the date of release of
such earnings results or material news, or the occurrence of such material event, as applicable, unless the Representative, waives,
in writing, such extension.

 

The
undersigned hereby acknowledges that the Company will be requested to agree in the Purchase Agreement to provide written notice
to the undersigned of any event that would result in an extension of the Lock-Up Period pursuant to the previous paragraph and
agrees that any such notice properly delivered will be deemed to have been given to, and received by, the undersigned. The undersigned
further agrees that, prior to engaging in any transaction or taking any other action that is subject to the terms of this Agreement
during the period from the date of this Agreement to and including the 34th day following the expiration of the initial
Lock-Up Period, it will give notice thereof to the Company and will not consummate such transaction or take any such action unless
it has received written confirmation from the Company that the Lock-Up Period (as may have been extended pursuant to the previous
paragraph) has expired.

 

     

     

    

 

Notwithstanding
the foregoing provisions of this agreement:

 

	 	1.	The
    undersigned may transfer the Undersigned’s Securities (i) as a bona fide gift or gifts and (ii) to any trust
    for the direct or indirect benefit of the undersigned or the immediate family of the undersigned; provided, in each
    case, that (x) such transfer shall not involve a disposition for value, (y) the transferee agrees in writing with the Underwriters
    to be bound by the terms of this Lock-Up Agreement, and (z) no filing by any party under Section 16(a) of the Securities Exchange
    Act of 1934, as amended (the “Exchange Act”), shall be required or shall be made voluntarily in connection
    with such transfer.. For purposes of this Agreement, “immediate family” shall mean any relationship by blood,
    marriage or adoption, nor more remote than first cousin. 

 

	 	2.	In
    addition, the foregoing restrictions shall not apply to (i) the exercise of stock options granted pursuant to the Company’s
    equity incentive plans; provided that it shall apply to any of the Undersigned’s Securities issued upon such
    exercise, or (ii) the establishment of any contract, instruction or plan (a “Plan”) that satisfies
    all of the requirements of Rule 10b5-1(c)(1)(i)(B) under the Exchange Act; provided that no sales of the Undersigned’s
    Securities shall be made pursuant to such a Plan prior to the expiration of the Lock-Up Period (as such may have been extended
    pursuant to the provisions hereof), and such a Plan may only be established if no public announcement of the establishment
    or existence thereof and no filing with the Securities and Exchange Commission or other regulatory authority in respect thereof
    or transactions thereunder or contemplated thereby, by the undersigned, the Company or any other person, shall be required,
    and no such announcement or filing is made voluntarily, by the undersigned, the Company or any other person, prior to the
    expiration of the Lock-Up Period (as such may have been extended pursuant to the provisions hereof). 

 

In
furtherance of the foregoing, the Company and its transfer agent and registrar are hereby authorized to decline to make any transfer
of shares of Common Stock if such transfer would constitute a violation or breach of this Agreement.

 

The
undersigned hereby represents and warrants that the undersigned has full power and authority to enter into this Agreement and
that upon request, the undersigned will execute and additional documents necessary to ensure the validity or enforcement of this
Agreement. All authority herein conferred or agreed to be conferred and any obligations of the undersigned shall be binding upon
the successors, assigns, heirs or personal representatives of the undersigned.

 

The
undersigned understands that the undersigned shall be released from all obligations under this Agreement if (i) the Company
notifies the Underwriters that it does not intend to proceed with the Offering, (ii) the Purchase Agreement does not become
effective, or if the Purchase Agreement (other than the provisions thereof which survive termination) shall terminate or be terminated
prior to payment for and delivery of the Common Stock to be sold thereunder, or (iii) the Offering is not completed by October
31, 2015.

 

The
undersigned understands that the Underwriters are entering into the Purchase Agreement and proceeding with the Offering in reliance
upon this Agreement. This Agreement shall be governed by, and construed in accordance with, the laws of the State of New York.

 

	 	Very
    truly yours,
	 	 
	 	     
	 	Printed
    Name of Holder
	 	 
	 	 
	 	Signature
	 	 
	 	 
	 	Printed
    Name & Title of Person Signing (if signing as custodian, trustee, or on behalf of an entity)

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