Document:

EXHIBIT
4.4

 

	RIGHTS
    CERTIFICATE #:	 	NUMBER
    OF RIGHTS:

 

THE
TERMS AND CONDITIONS OF THE RIGHTS OFFERING SET FORTH IN THE COMPANY’S PROSPECTUS DATED FEBRUARY [●], 2020
ARE AVAILABLE UPON REQUEST FROM BROADRIDGE CORPORATE ISSUER SOLUTIONS, INC., THE SUBSCRIPTION AGENT.

 

HOPTO,
INC.

(Incorporated
under the laws of the State of Delaware)

 

Non-transferable
SUBSCRIPTION RIGHTS CERTIFICATE

 

Evidencing
non-transferable Subscription Rights, each to Purchase Shares of Common Stock of HOPTO.

 

Subscription
Price: $0.30 per whole Share

 

THE
SUBSCRIPTION RIGHTS ARE EXPECTED TO EXPIRE IF NOT EXERCISED ON OR BEFORE 5:00 P.M., EASTERN TIME, ON                        2020, SUBJECT TO EXTENSION
OR EARLIER TERMINATION.

 

REGISTERED
OWNER:

 

THIS
CERTIFIES THAT the registered owner whose name is inscribed hereon is the owner of the number of non-transferable subscription
rights (“Rights”) set forth above. Each whole Right entitles the holder thereof to subscribe for and purchase 0.83
shares of common stock, par value of $0.0001 per share (the “Common Stock”), of hopTo, Inc., a Delaware corporation
(the “Company”), at a subscription price of $0.30 per whole share (the “Basic Subscription Privilege”),
pursuant to a rights offering (the “Rights Offering”), on the terms and subject to the conditions set forth in the
Company’s prospectus dated February [●], 2020. The Rights Offering does not include an over-subscription
privilege, and Rights holders who fully exercise their Basic Subscription Privilege will not be entitled to exercise an over-subscription
privilege to purchase additional shares of Common Stock that may remain unsubscribed as a result of any unexercised Rights in
the Rights Offering. The Rights represented by this Subscription Rights Certificate may be exercised by completing the appropriate
forms on the reverse side hereof and by returning the full payment of the subscription price for each share of Common Stock. The
Subscription Agent will return to the subscriber any excess funds submitted promptly, without interest or penalty.

 

This
Subscription Rights Certificate is not valid unless countersigned by Broadridge Corporate Issuer Solutions, Inc., the subscription
agent.

 

WITNESS
the seal of hopTo, Inc. and the signatures of its duly authorized officers:

 

	By:	        	 
		Chief Executive Officer, Interim Chief Financial Officer and Secretary
	 	 	 

 

	COUNTERSIGNED AND REGISTERED:	 
	 	 	 
	 	 	 
	By:		 
	 	BROADRIDGE
    CORPORATE ISSUER SOLUTIONS, INC.	 

 

    	 

    	 

    

 

DELIVERY
OPTIONS FOR SUBSCRIPTION RIGHTS CERTIFICATE

 

Delivery
other than in the manner or to the addresses listed below will not constitute valid delivery.

 

	If
    delivering by hand or overnight courier:	 	If
    delivering by first class mail:
	 	 	 
	Broadridge
    Corporate Issuer Solutions, Inc.

    Attention: BCIS IWS

    51 Mercedes Way

    Edgewood, NY 11717	 	Broadridge
    Corporate Issuer Solutions, Inc.

    Attention: BCIS Re-Organization Dept.

    P.O. Box 1317

    Brentwood, NY 11717-0693

 

FORM
OF ELECTION TO PURCHASE

 

PLEASE
PRINT ALL INFORMATION CLEARLY AND LEGIBLY.

 

FORM
1- EXERCISE OF SUBSCRIPTION RIGHTS

 

The
registered holder of this Rights Certificate is entitled to exercise the number of Rights shown in the upper right hand corner
of the Subscription Rights Certificate. The undersigned hereby notified the Subscription Agent of its irrevocable election to
subscribe for shares of Common Stock in the following amounts: To subscribe for shares of Common Stock pursuant to your Basic
Subscription Privilege, please complete lines (a) and (b) below.

 

(a)
EXERCISE OF BASIC SUBSCRIPTION PRIVILEGE:

 

	 	NUMBER
    OF SHARES OF COMMON STOCK	 	SUBSCRIPTION
    PRICE	 	PAYMENT
	Basic
    Subscription Privilege	 _______________________	X	$0.30	=	$________

 

    	 

    	 

    

 

(b)
METHOD OF PAYMENT

 

	TOTAL
    AMOUNT OF PAYMENT ENCLOSED	 	$
    ______________

 

METHOD
OF PAYMENT (CHECK ONE):

 

	[  ]	PERSONAL
    CHECK, CASHIER’S OR CERTIFIED CHECK DRAWN ON A U.S. 
	 	BANK
	 	 
	[  ]	Wire
    transfer of immediately available funds with reference to the rights holder’s name directly to the account maintained
    by Broadridge Corporate Issuer Solutions, Inc., as Subscription Agent, for purposes of accepting subscriptions in this Rights
    Offering at U.S. Bank

 

	 	ABA/Routing
    number:	 	123000848
	 	 	 	 
	 	International/Swift
    Code:	 	USBKUS44IMT
	 	 	 	 
	 	Bank:	 	U.S.
    Bank

 800 Nicollet Mall 

Minneapolis, MN 55402 United

 States
	 	 	 	 
	 	Beneficiary
    Account Name:	 	Broadridge
	 	 	 	 
	 	Account
    Number:	 	153910728465
	 	 	 	 
	 	For
    Further Credit Name:	 	hopTo
    Subscription Offer

 

	[  ]	U.S.
    POSTAL MONEY ORDER

 

    	 

    	 

    

 

FORM
2- DELIVERY TO DIFFERENT ADDRESS: If you wish for the Common Stock underlying your subscription rights to be delivered to
an address different from that shown on the face of this Subscription Rights Certificate, please enter the alternate address below,
sign and have your signature guaranteed.

 

 

 

 

 

 

 

 

 

 

FORM
3- SIGNATURE

 

TO
SUBSCRIBE: The undersigned (the “Registered Holder”) acknowledges receipt of the Prospectus dated February
[●], 2020, in connection with the Rights Offering and agrees to its terms. By signing below, the Registered Holder confirms
that (1) after giving effect to the exercise of the Registered Holder’s Rights the Registered Holder will not, individually
or as part of a group, beneficially own, as determined in accordance with Rule 13d-3 under the Securities Exchange Act of 1934,
as amended (the “Exchange Act”), and Section 382 of the Internal Revenue Code of 1986, as amended (the “Code”)
and the related Treasury Regulations, more than 4.9% of the Company’s the Registered Holder outstanding shares of common
stock, par value $0.001 per share (the “Common Stock”), calculated immediately upon the closing of the rights offering,
as described in the Prospectus, and (2), if I already beneficially owns, as determined in accordance with Rule 13d-3 under the
Exchange Act and Section 382 of the Code and the related Treasury Regulations in excess of 4.9% of the outstanding shares of Common
Stock the Registered Holder will not, via the exercise of the Rights, increase the Registered Holder’s proportionate interest
in the Common Stock (with respect to (1) or (2), any such excess shares, the “Excess Shares”). With respect to any
such Excess Shares, the Registered Holder hereby (1) irrevocably appoints and constitutes the Company, each of its authorized
officers and their designees, and each of them, with full power of substitution, as proxy and attorney in fact with full authority
to vote and act by written consent with respect to any such Excess Shares on any matter submitted to stockholders for a vote or
action by written consent, in the discretion of such proxy, to the same extent the Registered Holder would have the power to vote
or act by written consent and (2) grants the Company a right for 90 days from the closing of the rights offering to purchase such
Excess Shares at the lesser of the $        per whole share and the closing price of the Common
Stock on the principal trading market for the Common Stock on the trading day immediately prior to the date on which notice is
sent to the holder of the Company’s intent to exercise such right, which notice must be sent prior to the expiration of
such 90 day period. The Registered Holder agrees to cooperate with the Company and provide to the Company any and all information
requested by the Company in connection with the exercise of the rights granted in the previous sentence.

 

IMPORTANT:
THE SIGNATURE(S) MUST CORRESPOND IN EVERY PARTICULAR, WITHOUT ALTERATION, WITH THE NAME(S) AS PRINTED ON THE FRONT OF THIS RIGHTS
CERTIFICATE.

 

 

Signature(s)
of Subscriber(s)

 

If
signature is by trustee(s), executor(s), administrator(s), guardian(s), attorney(s)-in-fact, agent(s), officer(s) of a corporation
or another acting in a fiduciary or representative capacity, please provide the following information (please print). See the
instructions.

 

Name(s): __________________________________

 

Capacity
(Full Title): _________________________

 

FORM
4- SIGNATURE GUARANTEED

 

This
form must be completed if you have completed any portion of Form 2.

 

	Name
    of Bank of Firm	 	Registered
    Holder

    (or authorized signatory) Signature(s):
	 	 	 
	 	 	 
		 	 
	 	 	 
	Name
    & Title of Signing Officer	 	 
		 	 
	 	 	 
	Signature
    of Signing Officer	 	 

 

IMPORTANT:
The signature(s) should be guaranteed by an eligible guarantor institution (bank, stock broker, savings & loan association
or credit union) with membership in an approved signature guarantee medallion program pursuant to Rule 17Ad-15 under the Securities
Exchange Act of 1934, as amended.

 

FOR
INSTRUCTIONS ON THE USE OF HOPTO, INC. SUBSCRIPTION RIGHTS CERTIFICATES, CONSULT BROADRIDGE CORPORATE ISSUER SOLUTIONS, INC.,
THE INFORMATION AGENT, AT 888-789-8409 OR BY EMAIL (SHAREHOLDER@BROADRIDGE.COM).BACKSTOP
INVESTMENT AGREEMENT

 

Dated
as of January 31, 2020

 

by
and among

 

HOPTO,
INC.

 

and

 

THE
INVESTORS NAMED HEREIN

 

 

 

    	 	 	 

    	 

    

 

BACKSTOP
INVESTMENT AGREEMENT

 

BACKSTOP
INVESTMENT AGREEMENT, dated as of January 31, 2020 (this “Agreement”), by and among HopTo, Inc., a Delaware
corporation (the “Company”), and the several Investors listed in Annex 1 (the “Investors”). Certain capitalized
terms are defined in Section ‎8.16.

 

Recitals

 

The
Company proposes to commence an offering to each of the holders (the “Eligible Holders”) of its common stock, par
value $0.0001 per share (the “Common Stock”), and warrants of record as of the close of business on a record
date to be determined as provided herein (the “Record Date”), of non-transferable rights (the “Rights”)
to subscribe for and purchase additional shares of Common Stock (the “New Shares”) at a subscription price per share
equal to $0.30 (the “Subscription Price”) for an aggregate offering amount of $2.6 million (the “Aggregate
Offering Amount”) (such offering, as further defined in Article ‎1 and by other transactions contemplated hereby, the
“Rights Offering”).

 

As part of the Rights Offering, the Company
will distribute to each of the Eligible Holders, at no charge, one Right for each share of Common Stock held by such Eligible
Holder and for each share of Common Stock underlying each warrant, in each case, owned as of the Record Date, and each
Right will entitle the holder thereof to purchase at the Subscription Price New Shares from the Company (with fractional shares
rounded down to the nearest whole number of New Shares and the aggregate Subscription Price adjusted accordingly) (the “Basic
Subscription Privilege”).

 

In
order to facilitate the Rights Offering, the Company has requested each Investor to agree, and each Investor hereby agrees, severally
and not jointly, on the terms of and subject to the conditions in this Agreement, to purchase New Shares that are not purchased
by the Eligible Holders upon the exercise of Rights pursuant to the Basic Subscription Privilege (the “Unsubscribed Shares”),
up to the amount set forth opposite such Investor’s name on Annex 1 (the “Investor Backstop Commitment”)
from the Company at the Subscription Price and subject to proration of Unsubscribed Shares among all other Investors if the amount
of Unsubscribed Shares is less than the total amount of all Investor Backstop Commitments.

 

Agreement

 

In
consideration of the foregoing and the mutual covenants in this Agreement, the parties, intending to be legally bound, agree as
follows:

 

	1.	The
    Rights Offering and Backstop Commitment
	 	 
	1.1	The
    Rights Offering.
	 	 
	(a)	As
                                         promptly as practicable after the date of this Agreement, the Company shall use commercially
                                         reasonable efforts to prepare and file with the Securities and Exchange Commission (the
                                         “SEC”) a registration statement (including each amendment and supplement
                                         thereto, the “Registration Statement”) under the Securities Act of 1933 (the
                                         “Securities Act”) on Form S-1, covering the offer and sale of the Rights
                                         and the New Shares in the Rights Offering. The Company shall not permit any securities
                                         to be included in the Registration Statement other than the Rights and the New Shares
                                         to be issued in the Rights Offering. The Registration Statement shall be provided
                                         to the Investors and their counsel prior to its filing with the SEC, and the Investors
                                         and their counsel shall be given a reasonable opportunity to review and comment upon
                                         the Registration Statement (and any post-effective amendments). The Company shall use
                                         commercially reasonable efforts to, as promptly as practicable, (i) respond to comments
                                         to the Registration Statement raised by the staff of the SEC and (ii) cause the Registration
                                         Statement and any post-effective amendment to be declared effective by the SEC.

 

    	 	1	 

    	 

    

 

	(b)	The
    Investors shall provide to the Company such information and other assistance as it may reasonably require in connection with
    the preparation and filing of the Registration Statement and the final prospectus relating to the Rights Offering filed pursuant
    to Rule 424 of the Securities Act (as amended or supplemented, the “Prospectus”). At the time such information
    is provided and at the respective times the Registration Statement and any post-effective amendments thereto become effective
    and as of the date of the Prospectus, no such information provided by the Investors shall include an 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 not
    misleading.
	 	 
	(c)	At
    the respective times the Registration Statement and any post-effective amendments thereto become effective, the Registration
    Statement shall comply in all material respects with the requirements of Form S-1, and the Registration Statement and any
    documents incorporated by reference therein shall not include an untrue statement of a material fact or omit to state a material
    fact necessary to make the statements therein, in light of the circumstances in which they were made, not misleading; provided,
    that the Company shall make no such representation with respect to information provided to it by the Investors for inclusion
    therein. The Prospectus, as of its date, shall 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; provided, that the Company shall make no such representation with respect to information provided to it by the
    Investors for inclusion therein. The previous two sentences are referred to as the “10b-5 Representation.”
	 	 
	(d)	Promptly
                                         following the date on which the Registration Statement is declared effective by the SEC
                                         (the “Registration Effective Date”), the Company shall print and file with
                                         the SEC the Prospectus, distribute the Prospectus to the Company’s stockholders
                                         of record as of the Record Date and thereafter promptly commence a rights offering on
                                         the following terms: (i) the Company shall distribute, at no charge, one Right to each
                                         holder of record of Common Stock for each share of Common Stock held by such holder as
                                         of the Record Date, (ii) each Right shall entitle the holder thereof to purchase, at
                                         the election of such holder, such number of shares of Common Stock at the Subscription
                                         Price thereby entitling such holders of Rights, in the aggregate, to subscribe for an
                                         aggregate number of shares (the “Aggregate Offered Shares”) of Common Stock
                                         equal to $2.6 million divided by the Subscription Price; provided that no fractional
                                         shares of Common Stock shall be issued pursuant to the exercise of any Rights, (iii)
                                         each such Right shall be non-transferable (provided that unexercised rights will be
                                         transferable only to the extent that the Aggregate Offered Shares to which they are attached
                                         are transferred from and after the Record Date), (iv) the rights offering shall remain
                                         open for at least sixteen days, but no more than thirty days or such longer period as
                                         required by Law (the “Subscription Period”), (v) no Person (other than the
                                         Investors and their Affiliates, who may acquire New Shares as contemplated by this Agreement)
                                         will be entitled to exercise the Rights to the extent the exercise thereof would cause
                                         such Person to acquire Beneficial Ownership, or ownership for purposes of section 382
                                         of the Internal Revenue Code of 1986, as amended, in excess of 4.9% of the outstanding
                                         Common Stock after giving effect to the consummation of the Rights Offering and the Backstop
                                         Commitment, and (vi) any Person (other than the Investors and their Affiliates)
                                         who is, on the date of this Agreement, the Beneficial Owner of in excess of 4.9%
                                         of the outstanding Common Stock shall be entitled to exercise the Rights only to the
                                         extent necessary to maintain her, his or its proportionate interest in the Common Stock
                                         on the date hereof.

 

    	 	2	 

    	 

    

 

	(e)	Prior
    to the termination of this Agreement, the Company shall not amend any of the terms of the Rights Offering described in Section
1.1 (d), terminate the Rights Offering or waive any material conditions to the closing of the Rights Offering, without the
    prior written consent of Novelty Capital Partners LP on behalf of all of the Investors. Subject to the terms and conditions
    of the Rights Offering, the Company shall effect the closing of the Rights Offering as promptly as practicable following the
    end of the Subscription Period. The closing of the Rights Offering shall occur at the time, for the Subscription Price and
    in the manner and on the terms in Section 1.1 ‎(d), as shall be set forth in the Prospectus.
	 	 
	(f)	The
    Company shall pay all of its expenses associated with the Registration Statement, Prospectus, the Rights Offering and the
    other transactions contemplated hereby, including filing and printing fees, fees and expenses of any subscription and information
    agents, its counsel and accounting fees and expenses and costs associated with clearing the Common Stock offered thereby for
    sale under applicable state securities Laws.
	 	 
	1.2	Backstop
    Commitment.
	 	 
	(a)	Subject
                                         to the consummation of the Rights Offering and the conditions in this Agreement, each
                                         Investor shall, severally and not jointly, purchase from the Company pursuant to the
                                         Rights Offering, and the Company shall issue to such Investor via the Rights Offering,
                                         at the Subscription Price, such Investor’s Pro Rata Portion of an aggregate
                                         number of New Shares (the “Backstop Commitment”) equal to (i) $2.41
                                         million minus the aggregate proceeds of the Rights Offering which are in excess
                                         of $190,000, divided by (ii) the Subscription Price. At the closing of the
                                         Rights Offering, the Company shall issue to the Investors a notice (the “Subscription
                                         Notice”) setting forth the number of New Shares subscribed for in the Rights
                                         Offering other than pursuant to the Backstop Commitment and the aggregate proceeds
                                         of the Rights Offering other than pursuant to the Backstop Commitment and, accordingly,
                                         the number of shares of Common Stock to be acquired by the Investors pursuant to the
                                         Backstop Commitment at the Subscription Price at the Closing of the Rights Offering.
                                         New Shares acquired by the Investors pursuant to the Backstop Commitment are collectively
                                         referred to as the “Backstop Acquired Shares.”

	 	 
	(b)	On
                                         the terms of and subject to the conditions in this Agreement, the settlement of
                                         the Backstop Commitment (the “Closing”) shall occur on the later of (i) the
                                         second Business Day following the expiration date of the Rights Offering and (ii)
                                         the date that all of the conditions to in Article ‎5 have been satisfied or waived
                                         (other than those conditions that by their nature are to be satisfied at the Closing),
                                         at 9:00 a.m. (Eastern time) by electronic settlement of shares and the electronic
                                         exchange of any applicable documents or at a place, time and date as shall be agreed
                                         between the Company and the Investors (the date on which the Closing occurs, the “Closing
                                         Date”).

 

    	 	3	 

    	 

    

 

	(c)	At
                                         the Closing (i) the Company shall issue to each Investor its Pro Rata Portion of the
                                         Backstop Acquired Shares against payment by or on behalf of such Investor of the aggregate
                                         Subscription Price for all such shares in accordance with the payment requirements
                                         of the Rights Offering, (ii) the Company shall deliver all other documents and certificates
                                         required to be delivered to the Investors pursuant to Section ‎5.3, and (iii) the
                                         Investors shall deliver all documents and certificates required to be delivered to the
                                         Company pursuant to Section ‎5.2.

	 	 
	(d)	The
                                         Company shall promptly use proceeds from the Rights Offering, including amounts received
                                         from the Backstop Commitment, (i) first to pay costs of the Rights Offering
                                         and this Agreement and (ii) second, any remaining proceeds may be used for general
                                         corporate purposes (including acquisitions).

	 	 
	2.	Representations
    and Warranties of the Company. Except as Previously Disclosed, the
    Company represents and warrants to the Investors that:
	 	 
	2.1	Organization.
    The Company and each of its Subsidiaries is duly incorporated or organized and validly existing
    as a corporation or other entity in good standing under the Laws of its jurisdiction of organization and has all corporate
    power and authority to own its property and assets and conduct its business as currently conducted, and, except as would not,
    individually or in the aggregate, have or reasonably be expected to have a Material Adverse Effect, is duly qualified as a
    foreign corporation for the transaction of business and is in good standing under the Laws of each other jurisdiction in which
    it owns or leases properties, or conducts any business so as to require such qualification.
	 	 
	2.2	Authorization.
                                         The Company has all corporate power and authority to execute and deliver this Agreement
                                         and to perform its obligations hereunder. The execution and delivery of each of this
                                         Agreement and performance by the Company of its obligations hereunder and the consummation
                                         of the transactions contemplated hereby have been duly authorized by all necessary corporate
                                         action on the part of the Company, and no further approval or authorization is required
                                         on the part of the Company. This Agreement constitutes the valid and binding obligation
                                         of the Company, enforceable against the Company in accordance with its terms, except
                                         as such may be limited by bankruptcy, insolvency, fraudulent conveyance, reorganization
                                         or other similar Laws affecting creditors’ rights generally and by general equitable
                                         principles and except as may be limited by applicable Law and public policy (collectively,
                                         the “Enforceability Exceptions”). No vote or consent of stockholders of the
                                         Company is required in connection with any of the transactions contemplated by this Agreement
                                         under the Company’s certificate of incorporation, the General Corporation Law of
                                         the State of Delaware (the “DGCL”), the rules and regulations of the OTC
                                         Markets or otherwise.

	 	 
	2.3	Capitalization.
	 	 
	(a)	As
    of the date of this Agreement, (i) the Company is authorized to issue up 195,000,000 shares of Common Stock and has 9,954,866
    shares of Common Stock issued and outstanding and (ii) the Company is authorized to issue up to 5,000,000 shares of preferred
    stock, par value $0.01 per share (the “Preferred Stock”) and no shares of Preferred Stock are issued or outstanding.
    As of the date of this Agreement, there are outstanding options to purchase an aggregate of 106,077 shares of Common Stock
    and warrants to purchase 481,335 shares of Common Stock. All of the outstanding shares of Common Stock and all of the outstanding
    warrants have been duly and validly authorized and issued and are fully paid and non-assessable and were not issued in
    violation of any preemptive rights, resale rights, rights of first refusal or similar rights.

 

    	 	4	 

    	 

    

 

	(b)	All
    of the outstanding shares of capital stock of each of the Company’s Subsidiaries has been duly and validly authorized
    and issued, are fully paid and non-assessable, were not issued in violation of any pre-emptive rights, resale rights, rights
    of first refusal or similar rights, and are owned directly or indirectly by the Company, free and clear of all liens, encumbrances,
    equities or claims (collectively, “Liens”), except for Liens in favor of the indenture trustee with respect to
    the Notes. As of the date of this Agreement, the Company does not Beneficially Own, directly or indirectly, any equity interests
    of any Person that is not a Subsidiary of the Company.
	 	 
	2.4	Valid
    Issuance of Shares. The Backstop Acquired Shares will be, as of the date of their issuance,
    duly authorized by all necessary corporate action on the part of the Company and, when issued and delivered by the Company
    against payment therefor as provided in this Agreement, (a) will be validly issued, fully paid and nonassessable, (b) will
    be free and clear of all Liens and (c) will not be subject to any statutory or contractual preemptive rights or other similar
    rights of stockholders.
	 	 
	2.5	Non-Contravention;
    Governmental Authorizations.
	 	 
	(a)	The execution and delivery of this Agreement and the performance
by the Company of its obligations under this Agreement and the consummation of the transactions contemplated hereby will not: (i)
conflict with or violate any provision of the Company’s certificate of incorporation or by-laws, each as amended; (ii) conflict
with or result in any breach of, or constitute a default (or an event which with notice or lapse of time or both would become a
default) under, or give rise to any right to termination, acceleration or cancellation under any agreement, lease, mortgage, license,
indenture or any other contract to which the Company or any of its Subsidiaries is a party or by which their respective properties
may be bound or affected; or (iii) conflict with or violate any Law applicable to the Company or its Subsidiaries, except, in the
case of clause (ii) or (iii), as would not, individually or in the aggregate, have or reasonably be expected to have a Material
Adverse Effect.

	 	 
	(b)	Each
    approval, consent, order, authorization, designation, declaration or filing by or with any Governmental Entity necessary in
    connection with the execution and delivery by the Company of this Agreement and the consummation of the transactions contemplated
    hereby (except for such additional steps as may be necessary to register or qualify the Rights and shares of Common Stock
    to be issued in connection with the Rights Offering and the Backstop Acquired Shares under federal securities, state securities
    or blue sky Laws) has been obtained or made and is in full force and effect.
	 	 
	2.6	Periodic
    Filings; Financial Statements; Undisclosed Liabilities.
	 	 
	(a)	Since
    January 1, 2017, the Company has timely filed all reports, registrations, documents, filings, statements and submissions,
    together with any required amendments thereto (collectively the “Company SEC Documents”), that were required to
    be filed with the SEC under the Securities Act and the Securities Exchange Act of 1934 (the “Exchange Act”). As
    of their respective filing dates, the Company SEC Documents complied in all material respects with the requirements of the
    Securities Act and the Exchange Act, as applicable, and none of the Company SEC Documents contained, when filed with the SEC,
    and if amended, as of the date of such amendment, any untrue statement of a material fact or omitted to state a material fact
    required to be stated therein or necessary in order to make the statements made therein, in light of the circumstances in
    which they were made, not misleading.

 

    	 	5	 

    	 

    

 

	(b)	The
    Company’s consolidated financial statements, including the notes thereto, included or incorporated by reference in the
    Company SEC Documents (the “Company Financial Statements”) have been prepared in accordance with generally accepted
    accounting principles in the United States (“GAAP”) consistently applied in all material respects (except as may
    be indicated in the notes and schedules thereto) during the periods involved and present fairly in all material respects the
    Company’s consolidated financial position at the dates thereof and of its operations and cash flows for the periods
    specified therein (subject to the absence of notes and year-end adjustments in the case of unaudited statements).
	 	 
	(c)	Neither
    the Company nor any of its Subsidiaries has any liabilities or obligations (accrued, absolute, contingent or otherwise) of
    a nature that would be required to be accrued or reflected in a consolidated balance sheet prepared in accordance with GAAP,
    other than liabilities or obligations (A) reflected on, reserved against, or disclosed in the notes to, the consolidated balance
    sheets of the Company Financial Statements or (B) incurred in the ordinary course of business consistent since the date of
    the last consolidated balance sheet in the Company Financial Statements.
	 	 
	2.7	No
    Proceedings. No litigation or proceeding against the Company or its Subsidiaries is pending
    before any court, arbitrator, or administrative or governmental body, nor, to the Company’s knowledge, is any such proceeding
    threatened against the Company or its Subsidiaries, that would, individually or in the aggregate, reasonably be expected to
    materially and adversely affect the Company’s ability to perform its obligations under this Agreement or consummate
    the transactions contemplated hereby on a timely basis.
	 	 
	2.8	Private
    Placement. Neither the Company, nor any of its affiliates, nor any Person acting on its
    or their behalf, has engaged in any form of general solicitation or general advertising (within the meaning of Regulation
    D under the Securities Act) in connection with the offer or sale of the Backstop Acquired Shares. Assuming the accuracy of
    the Investors’ representations and warranties in Section ‎3.5, none of the Company, any of its affiliates, and any
    Person acting on 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 of the issuance of any of shares of Common Stock
    under the Securities Act, whether through integration with prior offerings or otherwise. None of the Company, its affiliates
    and any Person acting on their behalf will take any action or steps referred to in the preceding sentence that would require
    registration of the issuance of any of the Backstop Acquired Shares under the Securities Act.
	 	 
	2.9	Brokers
    and Finders. Neither the Company nor any of its Subsidiaries has employed any broker or
    finder or incurred any liability for any financial advisory fee, brokerage fees, commissions or finder’s fee, and no
    broker or finder has acted directly or indirectly for the Company or any of its Subsidiaries in connection with this Agreement or the transactions contemplated hereby. The Company may engage broker dealers
    in connection with the Rights Offering.
	 	 
	2.10	No
    Further Reliance. The Company acknowledges that it is not relying upon any representation
    or warranty made by the Investors other than those representations and warranties in this Agreement.

 

    	 	6	 

    	 

    

 

	3.	Representations
    and Warranties of the Investors. Each Investor (solely with respect
    to itself) represents and warrants to the Company and each other Investor that:
	 	 
	3.1	Organization
    and Authority. If such Investor is not a natural person, such Investor is duly formed and
    validly existing in good standing as a limited liability company under the laws of the state of its organization and has all
    organizational power and authority to own its property and assets and conduct its business as currently conducted and, except
    where the failure to be qualified or in good standing would not or reasonably be expected to prevent, materially delay or
    materially impede the performance by such Investor of its obligations under this Agreement or the consummation of the transactions
    contemplated hereby.
	 	 
	3.2	Authorization.
    Such Investor has all power and authority to execute and deliver this Agreement and to perform
    its obligations under this Agreement. The execution, delivery and performance by such Investor of this Agreement and the consummation
    of the transactions contemplated hereby have been duly authorized by all necessary action of such Investor’s board,
    manager, trustee, members, stockholders, partners, beneficiaries or similar Persons, as the case may be, and no further approval
    or authorization by any of its members, partners, stockholders, beneficiaries or similar Persons is required. If such Investor
    is a natural person, such Investor has all necessary power and has received all necessary consents under community property
    and similar domestic relations laws. This Agreement constitutes the valid and binding obligation of such Investor, enforceable
    against such Investor in accordance with its terms, except as such may be limited by the Enforceability Exceptions.
	 	 
	3.3	Non-Contravention;
    Governmental Authorization.
	 	 
	(a)	The
    execution and delivery by such Investor and performance by such Investor of its obligations under this Agreement and the consummation
    of the transactions contemplated hereby will not: (i) conflict with or violate any provision of its certificate of formation,
    limited liability company agreement or similar governing documents (where applicable) or community property or other domestic
    relations Law (where applicable); (ii) conflict with or result in any breach of, or constitute a default (or an event which
    with notice or lapse of time or both would become a default) under, or give rise to any right to termination, acceleration
    or cancellation under any agreement, lease, mortgage, license, indenture or any other contract to which such Investor is a
    party or by which its properties may be bound or affected; or (iii) conflict with or violate any Law applicable to such Investor,
    except in the case of clause (ii) or (iii), as would not, individually or in the aggregate, reasonably be expected to materially
    and adversely affect such Investor’s ability to perform its obligations under this Agreement or consummate the transactions
    contemplated hereby on a timely basis.
	 	 
	(b)	Each
    approval, consent, order, authorization, designation, declaration or filing by or with any Governmental Entity necessary in
    connection with the execution and delivery by such Investor of this Agreement and the consummation of the transactions contemplated
    herein (except for such additional steps as may be necessary to register or qualify the Rights and shares of Common Stock
    to be issued in connection with the Rights Offering and the Backstop Acquired Shares under federal securities, state securities
    or blue sky Laws) has been obtained or made and is in full force and effect.

 

    	 	7	 

    	 

    

 

	3.4	No
    Proceedings. No litigation or proceeding against such Investor or such Investor’s
    assets is pending before any court, arbitrator, or administrative or governmental body, nor, to such Investor’s knowledge,
    is any such proceeding threatened against such Investor or such Investor’s assets, that would, individually or in the
    aggregate, reasonably be expected to materially and adversely affect such Investor’s ability to perform its obligations
    under this Agreement or consummate the transactions contemplated hereby on a timely basis.
	 	 
	3.5	Securities
    Act Compliance. The Backstop Acquired Shares being acquired by such Investor hereunder are
    being acquired for its own account, for the purpose of investment and not with a view to or for sale in connection with any
    public resale or distribution thereof in violation of applicable securities Laws. Such Investor is an “accredited
    investor’’ within the meaning of Rule 501(a) under the Securities Act and is knowledgeable, sophisticated and
    experienced in business and financial matters that are necessary to evaluate the risks and merits of an investment in the
    Common Stock.
	 	 
	3.6	Financial
    Capability. At the Closing, such Investor, together with its Affiliates, will have sufficient
    available funds to consummate the Closing on the terms of this Agreement. Such Investor is able to bear the financial risk
    of its investment in the Backstop Acquired Shares. Such Investor has been afforded access to information about the Company
    and its financial condition and business sufficient to enable such Investor to evaluate its investment in the Backstop Acquired
    Shares.
	 	 
	3.7	No
                                         Registration. Such Investor understands
                                         that the Backstop Acquired Shares may not be offered for sale, sold or otherwise transferred
                                         except pursuant to a registration statement under the Securities Act or in a transaction
                                         exempt from or not subject to registration under the Securities Act.

	 	 
	3.8	Ownership.
    As of the date of this Agreement, such Investors and their Affiliates are the Beneficial
    Owners of the number of shares of Common Stock set forth adjacent to such Investor’s name on Annex 1.
	 	 
	3.9	No
    Further Reliance. Such Investor acknowledges that it is not relying upon any representation
    or warranty made by the Company other than those representations and warranties in this Agreement.

 

    	 	8	 

    	 

    

 

	4.	Covenants
	 	 
	4.1	Conduct
    of the Business. Prior to the earlier of the Closing and the termination of this Agreement
    (the “Pre-Closing Period”), the Company shall not, and shall cause each of its Subsidiaries not to, take any actions
    outside of the ordinary course of business. During the Pre-Closing Period, except as contemplated by this Agreement, as approved
    by the full board of directors of the Company (the “Board”) prior to the taking of such action or with the prior
    written consent of Novelty Capital Partners LP on behalf of all of the Investors, the Company shall not, and shall cause each
    of its Subsidiaries not to: (i) declare or pay any dividend or distribution on its shares, interests, rights to purchase,
    warrants, options, participations or other equivalents of or interests in (however designated) stock (except pursuant to
    the Rights Offering and for dividends paid by any direct or indirect wholly owned Subsidiary of the Company to the Company
    or to any other direct or indirect wholly owned Subsidiary of the Company), (ii) adjust, split, combine or reclassify or otherwise
    amend the terms of its capital stock, (iii) repurchase, redeem, purchase, acquire, encumber, pledge, dispose of or otherwise
    transfer, directly or indirectly, any of its shares, interests, rights to purchase, warrants, options, participations or other
    equivalents of or interests in (however designated) its capital stock, (iv) other than Excluded Issuances, issue, grant, deliver
    or sell any shares, interests, rights to purchase, warrants, options, participations or other equivalents of or interests
    in (however designated) its capital stock (other than with respect to the issuance of the Rights and the Common Stock issuable
    upon the exercise thereof), (v) make any amendments to its organizational documents, (vi) sell, lease or otherwise dispose
    of a material amount of assets or securities, including by merger, consolidation, asset sale or other business combination,
    other than sales of assets in the ordinary course of business consistent with past practice; (vii) make any material acquisitions,
    by purchase or other acquisition of shares or other equity interests, or by merger, consolidation or other business combination,
    or material purchase of any property or assets, to or from any Person, (viii) adopt a plan of complete or partial liquidation
    or resolutions providing for a complete or partial liquidation, dissolution, restructuring, recapitalization or other reorganization,
    or (ix) agree or commit to do any of the foregoing. For the avoidance of doubt, the foregoing shall not restrict the Company
    from engaging in discussions with a third party with respect to a Superior Transaction or terminating this Agreement to enter
    into a definitive agreement to effect a Superior Transaction (provided that prior to or concurrently with such termination
    the Company pays the Termination Fee per Section ‎8.4(b)).
	 	 
	4.2	Securities
    to be Issued. The Common Stock to be issued to the Investors pursuant to this Agreement
    shall be subject to the terms and provisions of the Company’s certificate of incorporation as in effect on the date
    hereof.
	 	 
	4.3	Efforts.
    From the date hereof until the earlier of the Closing and the date that this Agreement is
    terminated, the Investors and the Company shall (i) use commercially reasonable efforts to cooperate with each other in (A)
    determining whether any filings are required to be made with, or consents, permits, authorizations, waivers, clearances, approvals,
    and expirations or terminations of waiting periods are required to be obtained from, any other Governmental Entities in connection
    with the execution and delivery of this Agreement and the consummation of the transactions contemplated hereby and (B) timely
    making all such filings and timely obtaining all such consents, permits, authorizations or approvals; (ii) use commercially
    reasonable efforts to supply to any Governmental Entity as promptly as practicable any additional information or documents
    that may be requested pursuant to any Law or by such Governmental Entity; (iii) promptly inform the other party of any substantive
    meeting, discussion, or communication with any Governmental Entity (other than any taxing authority) (and shall supply to
    the other party any written communication or other written correspondence or memoranda prepared for such purpose, subject
    to applicable Laws relating to the exchange of information or as necessary to preserve attorney-client privilege) in respect
    of any filings, investigation or inquiry concerning the transactions contemplated hereby, and shall consult with the other
    party in advance and, to the extent permitted by such Governmental Entity, give the other party the opportunity to attend
    and participate thereat and (iv) use commercially reasonable efforts to take, or cause to be taken, all other actions and
    do, or cause to be done, all other things necessary, proper or advisable to consummate the Closing and the other transactions
    contemplated hereby, including taking all such further action as may be necessary to resolve such objections, if any, as may
    be asserted under Law with respect to the transactions contemplated hereby. The Company shall reimburse the Investors
    for all filing fees incurred by the Investors with respect to all filings contemplated by this Section ‎4.3 within five
    Business Days of the date each such fee is invoiced by such Investors to the Company.

 

    	 	9	 

    	 

    

 

	4.4	Publicity.
    No public release or announcement concerning the transactions contemplated hereby shall
    be issued by any party without the prior consent of the other party (which consent shall not be unreasonably withheld, conditioned
    or delayed), except as such release or announcement may be required by Law, in which case the party required to make the release
    or announcement shall, to the extent reasonably practicable, allow the other party reasonable time to review and comment on
    such release or announcement in advance of such issuance. This Section ‎4.4 shall not restrict the ability of a party
    hereto to summarize or describe the transactions contemplated by this Agreement in the
    Registration Statement or Prospectus or any amendment or supplement thereto or any other prospectus or similar offering document
    or other report required by Law or regulation so long as the other party is provided a reasonable opportunity to review and
    comment on such disclosure in advance.
	 	 
	4.5	OTC
                                         Markets Clearance. The
                                         Company shall as promptly as practicable after the date of this Agreement use reasonable
                                         best efforts to cause the Rights Offering to be reviewed by OTC Markets pursuant to
                                         a corporate action notification filing, which shall confirm it has no objections or comments
                                         to the Rights Offering prior to the closing thereof.

	 	 
	4.6	No
    Transfers. Until the earlier to occur of the Closing Date or the termination of this Agreement,
    no Investor will, without the prior consent of the Company, transfer, sell, encumber, assign, pledge or otherwise dispose
    of any shares of Common Stock held, directly or indirectly, by such Investor; provided, however, that upon prior notice
    to the Company confirming compliance herewith, such Investor may (i) transfer, assign or dispose all or any portion of its
    Common Stock to one or more Affiliates, which shall agree in writing to take such Common Stock subject to, and comply with,
    the terms of this Agreement or (ii) effect an in-kind distribution of such shares to such Investor’s or its Affiliates’
    equity holders (including limited partners), but, in the case of an in-kind distribution, such Investor shall not be relieved
    of its obligations hereunder.
	 	 
	4.7	No
    Stabilization. In connection with the Rights Offering, the Investors will not take, directly
    or indirectly, any action designed to or that would reasonably be expected to cause or result in any stabilization or manipulation
    of the price of the Common Stock in violation of Regulation M under the Exchange Act.
	 	 
	5.	Conditions
    to Closing
	 	 
	5.1	Conditions
    to the Obligations of the Company and the Investors. The obligations of the Company and
    the Investors to effect the Closing shall be subject to the following conditions:
	 	 
	(a)	receipt
    of all approvals and authorizations of, filings with, and notifications to, or expiration or termination of any applicable
    waiting period, under applicable Law required to consummate the transactions contemplated hereunder, if any;
	 	 
	(b)	no
    provision of any applicable Law and no judgment, injunction, order or decree shall prohibit the consummation of any of the
    transactions contemplated at the Closing;

 

    	 	10	 

    	 

    

 

	(c)	the
    Registration Statement shall have been declared effective by the SEC and shall continue to be effective and no stop order
    shall have been entered by the SEC with respect thereto;
	 	 
	(d)	OTC
                                         Markets shall have confirmed it has no objections or comments to the Rights Offering
                                         prior to the closing thereof; and

	 	 
	(e)	the
    Rights Offering shall have been consummated in accordance with the terms of and subject to the conditions in Section ‎1.1(d).
	 	 
	5.2	Conditions
    to the Obligations of the Company. The obligations of the Company to effect the Closing
    shall be subject to the following conditions:
	 	 
	(a)	The
    representations of the Investors in Section ‎1.1(b) shall be true and correct (i) in the case of the Registration Statement
    and any post-effective amendments thereto, at the respective times referred to in Section ‎1.1(c), and in the case of
    the Prospectus, as of its date, and (ii) as of the Closing Date, except that in the case of this clause (ii) all references
    to any time period or date referred to in Section ‎1.1(b) shall be deemed to be references to the Closing Date. All other
    representations and warranties of the Investors contained in this Agreement (A) that are qualified by materiality, material
    adverse effect or words of similar import, shall be true and correct as of the date hereof and as of the Closing (except to
    the extent that any such representation and warranty expressly speaks as of an earlier date, in which case such representation
    and warranty shall be true and correct as of such earlier date) and (B) that are not qualified by materiality, material adverse
    effect or words of similar import, shall be true and correct in all material respects as of the date hereof and as of the
    Closing (except to the extent that any such representation and warranty expressly speaks as of an earlier date, in which case
    such representation and warranty shall be true and correct in all material respects as of such earlier date).
	 	 
	(b)	Each
    of the Investors shall have performed in all material respects all of its obligations hereunder required to be performed by
    it, and complied with the covenants hereunder applicable to it in all material respects, at or prior to the Closing.
	 	 
	(c)	Since
    the date of this Agreement, there shall not have been any material adverse effect or any effect that would, individually or
    in the aggregate, reasonably be expected to materially and adversely affect the Investors’ ability to perform their
    obligations under this Agreement or consummate the transactions contemplated hereby on a timely basis.
	 	 
	(d)	The
    Company shall have received a certificate, signed by an authorized person of each Investor, certifying as to the matters set
    forth in Sections 5.2(a), 5.2‎(b) and 5.2‎(c).

 

    	 	11	 

    	 

    

 

	5.3	Conditions
    to the Obligations of the Investors. The obligations of the Investors to effect the Closing
    shall be subject to the following conditions:
	 	 
	(a)	The
    10b-5 Representation shall be true and correct in all respects (i) in the case of the Registration Statement and any post-effective
    amendments thereto, at the respective times referred to in Section 1.1(c), and in the case of the Prospectus, as of its date,
    and (ii) as of the Closing Date, except that in the case of this clause (ii) all references to any time period or date referred
    to in Section 1.1(c) shall be deemed to be references to the Closing Date. All other representations and warranties of the
    Company contained in this Agreement (A) that are qualified by materiality, Material Adverse Effect or words of similar import,
    shall be true and correct as of the date hereof and as of the Closing (except to the extent that any such representation and
    warranty expressly speaks as of an earlier date, in which case such representation and warranty shall be true and correct
    as of such earlier date) and (B) that are not qualified by materiality, Material Adverse Effect or words of similar import,
    shall be true and correct in all material respects as of the date hereof and as of the Closing(except to the extent that any
    such representation and warranty expressly speaks as of an earlier date, in which case such representation and warranty shall
    be true and correct in all material respects as of such earlier date).
	 	 
	(b)	The
    Company shall have performed in all material respects all of its obligations hereunder required to be performed by it and
    complied with the covenants hereunder applicable to it in all material respects at or prior to the Closing.
	 	 
	(c)	Since
    the date of this Agreement, there shall not have been any Material Adverse Effect or any Effect that would, individually or
    in the aggregate, have or reasonably be expected to have a Material Adverse Effect.
	 	 
	(d)	The
    Investors shall have received a certificate, signed by an officer of the Company, certifying as to the matters set forth in
    Sections ‎5.3(a), ‎5.3(b) and ‎5.3(c).
	 	 
	5.4	Frustration
    of Closing Conditions. Neither the Company nor any Investor may rely on the failure of any
    condition in this Article ‎5 to be satisfied if such failure was caused by such party’s failure to act in good faith
    or use commercially reasonable efforts to consummate the transactions contemplated hereby.
	 	 
	6.	Termination
	 	 
	6.1	Termination.
    This Agreement may be terminated at any time prior to the Closing, but the following termination
    rights may not be exercised by a party whose breach is a proximate cause of the arising of any of the following termination
    rights:
	 	 
	(a)	by
    mutual written agreement of the Company and the Investors;
	 	 
	(b)	by
    either the Company or the Investors, upon written notice to the other, in the event that the Closing does not occur on or
    before               2020 (the “Outside
    Date”); provided, that such date may be extended as of              2020
    for a period of up to ninety days by either the Company or the Investors if the condition in Section 5.1(c) has not been
    satisfied by                  2020;
	 	 
	(c)	by
    either the Company or the Investors, upon written notice to the other party, if any Governmental Entity shall have issued
    any order, decree or injunction or taken any other action restraining, enjoining or prohibiting any of the transactions contemplated
    by this Agreement, and such order, decree, injunction or other action shall have become final and nonappealable;

 

    	 	12	 

    	 

    

 

	(d)	by
    the Investors, if a breach of any representation, warranty, covenant or agreement on the part of the Company set forth in
    this Agreement shall have occurred that would, if occurring or continuing on the Closing Date, cause the conditions set forth
    in Section ‎5.3(a), ‎5.3(b) or ‎5.3(c) not to be satisfied, and such breach is not cured, or is incapable of
    being cured, within ten days (but no later than the Outside Date) of receipt of written notice by the Investors to the Company
    of such breach;
	 	 
	(e)	by
    the Company, if a breach of any representation, warranty, covenant or agreement on the part of the Investors set forth in
    this Agreement shall have occurred that would, if occurring or continuing on the Closing Date, cause the conditions set forth
    in Section ‎5.2(a), ‎5.2(b) or ‎5.2(c) not to be satisfied, and such breach is not cured, or is incapable of being
    cured, within ten days (but no later than the Outside Date) of receipt of written notice by the Company to the Investors of
    such breach; provided that if the non-breaching Investors assume and perform the defaulting Investors’ obligations hereunder
    during such cure period, the Company shall not have such termination right under this Section;
	 	 
	(f)	by
    the Investors, upon written notice to the Company, if the Company shall have entered into a definitive agreement to effect
    a Superior Transaction (it being understood that the Company shall pay the Termination Fee per Section ‎8.4(b)); or
	 	 
	(g)	by
    the Company, upon written notice to the Investors, if the Company shall have entered into a definitive agreement to effect
    a Superior Transaction and prior to or concurrently with such termination the Company pays the Termination Fee per Section
    8.4(b).
	 	 
	6.2	Effects
    of Termination. If this Agreement is terminated per Section 6.1, this Agreement (other than
    Article ‎8 which shall remain in full force and effect) shall forthwith become wholly void and of no further force and
    effect. Nothing herein shall relieve any party from liability for fraud or willful breach of this Agreement.
	 	 
	7.	Indemnification
	 	 
	7.1	Indemnification
    by the Company. Notwithstanding anything in this Agreement to the contrary, whether or not
    the Rights Offering, the issuance of any shares of Common Stock to any Investors or the other transactions contemplated hereby
    are consummated or this Agreement is terminated, from and after the date hereof, the Company agrees to indemnify and hold
    harmless each Investor, its Affiliates, and each of their respective officers, directors, managers, partners, members, agents,
    representatives, successors, assigns and employees and each other Person, if any, who controls (within the meaning of the
    Securities Act) such Investor or its Affiliates (all such Persons being hereinafter referred to, collectively, as the “Investor
    Indemnified Persons”) against any losses, claims, damages, liabilities or expenses (collectively, “Losses”)
    to which such Investor Indemnified Person may become subject, under the Securities Act or otherwise, insofar as such Losses
    (or actions in respect thereof as contemplated below) arise out of or are based upon (a) any inaccuracy in or breach of any
    representation or warranty of the Company in this Agreement, (b) any failure by the Company to comply with the covenants and
    agreements contained in this Agreement, (c) an untrue statement or alleged untrue statement of any material fact contained
    in the Registration Statement, including the Prospectus and all other documents filed as a part thereof or incorporated by
    reference therein, or an omission or alleged omission to state therein a material fact required to be stated therein or necessary
    to make the statements therein, in light of the circumstances under which they were made, not misleading, (d) any litigation
    or proceeding by any stockholder of the Company or any other Person relating to this Agreement or the documents contemplated
    hereby, or the transactions contemplated hereby, or (e) by reason of the fact that such Investor is a party to this Agreement
    or in any way arising, directly or indirectly, from the Rights Offering or the consummation of the transactions contemplated
    by this Agreement. The Company will promptly reimburse such Investor Indemnified Persons for any legal and other expenses
    as such expenses are reasonably incurred by such Investor Indemnified Persons in connection with investigating, defending
    or preparing to defend, settling, compromising or paying any such Losses; provided, however, that the Company will
    not be liable to any Investor Indemnified Person in any such case to the extent that any such Losses arise out of or are based
    upon (i) an untrue statement or alleged untrue statement or omission or alleged omission made in reliance upon and in conformity
    with written information furnished to the Company by the applicable Investor or its representatives expressly for use therein,
    (ii) the failure of such Investor Indemnified Person or its Affiliate to perform any covenant in this Agreement with respect
    to the sale of the Shares, (iii) the inaccuracy of any representation or warranty made by such Investor Indemnified Person
    or its Affiliate in this Agreement or (iv) the gross negligence or willful misconduct of such Investor Indemnified Person
    or its Affiliate.

 

    	 	13	 

    	 

    

 

	7.2	Indemnification
    by the Investors. Each Investor, severally and not jointly, agrees to indemnify and hold
    harmless the Company, its Affiliates, and each of their respective officers, directors, managers, partners, members, agents,
    representatives, successors, assigns and employees and each other Person, if any, who controls (within the meaning of the
    Securities Act) the Company or its controlled Affiliates (all such Persons being hereinafter referred to, collectively, as
    the “Company Indemnified Persons”), against any Losses to which any Company Indemnified Person may become subject,
    under the Securities Act or otherwise, insofar as such Losses (or actions in respect thereof as contemplated below) arise
    out of or are based upon (a) any breach of any representation or warranty or breach of or failure to perform any covenant
    or agreement on the part of such Investor contained in this Agreement or (b) an untrue statement or alleged untrue statement
    or omission or alleged omission in reliance upon and in conformity with written information furnished to the Company by that
    Investor expressly for use therein, and such Investor will promptly reimburse such Company Indemnified Persons for any legal
    and other expenses as such expenses are reasonably incurred by such Company Indemnified Persons in connection with investigating,
    defending or preparing to defend, settling, compromising or paying any such Losses; provided, however, that such Investor
    will not be liable in any such case to the extent that any such Losses arise out of or are based upon (i) the failure of the
    Company or any other Investor to perform any of its covenants in this Agreement, (ii) the inaccuracy of any representation
    or warranty made by the Company or any other Investor in this Agreement (iii) the gross negligence or willful misconduct of
    any Company Indemnified Person or any other Investor or (iv) in an amount in excess of the fees received by such Investor
    hereunder.
	 	 
	7.3	Indemnification
    Procedures. Promptly after receipt by an indemnified party under this Article ‎7 of
    notice of the threat or commencement of any action, such indemnified party will, if a claim in respect thereof is to be made
    against an indemnifying party under this Article ‎7, promptly notify the indemnifying party in writing thereof, but the
    omission to notify the indemnifying party will not relieve such indemnifying party from any liability that it may have to
    any indemnified party for contribution or otherwise under the indemnity agreement contained in this Article ‎7 to the
    extent such indemnifying party is not prejudiced as a result of such failure to promptly notify. Such notice shall describe
    in reasonable detail such claim. In case any such action is brought against any indemnified party and such indemnified party
    seeks or intends to seek indemnity from an indemnifying party, the indemnifying party will be entitled to participate in,
    and, to the extent that it may elect by written notice delivered to such indemnified party within thirty days of such indemnifying
    party’s receipt of notice of such action from such indemnified party, jointly with all other indemnifying parties similarly
    notified, to assume the defense thereof with counsel reasonably satisfactory to such indemnified party; provided, however,
    (a) if the indemnifying party has failed promptly to assume the defense of such proceeding and to employ counsel reasonably
    satisfactory to such indemnified party in any such proceeding or (b) if the defendants in any such action include both the
    indemnified party and the indemnifying party, and the indemnified party shall have reasonably concluded, based on the advice
    of counsel, that there may be a conflict of interest between the positions of the indemnifying party and the indemnified party
    in conducting the defense of any such action or that there may be legal defenses available to it and/or other indemnified
    parties that are different from or additional to those available to the indemnifying party, in any such case, the indemnified
    party or parties shall have the right to select separate counsel to assume or assert, as the case may be, such legal defenses
    and to otherwise participate in the defense of such action on behalf of such indemnified party or parties. Upon receipt of
    notice from the indemnifying party to such indemnified party of its election to assume the defense of such action and approval
    by the indemnified party of counsel, the indemnifying party will not be liable to such indemnified party under this Article
    ‎7 for any legal or other expenses subsequently incurred by such indemnified party in connection with the defense thereof
    unless (i) the indemnified party shall have employed such counsel in connection with the assumption or assertion, as the case
    may be, of legal defenses in accordance with the proviso to the preceding sentence (it being understood, however, that the
    indemnifying party shall not be liable for the expenses of more than one separate counsel in any jurisdiction (and as required,
    local counsels), reasonably satisfactory to such indemnifying party, representing the indemnified party), (ii) the indemnifying
    party shall not have employed counsel reasonably satisfactory to the indemnified party to represent such indemnified party
    within a reasonable time after notice of commencement of action or (iii) the indemnifying party shall have authorized in writing
    the employment of counsel for such indemnified person, in each of which cases the reasonable fees and expenses of counsel
    shall be at the expense of the indemnifying party. The indemnifying party shall not be liable for any settlement of any action
    without its written consent. In no event shall any indemnifying party be liable in respect of any amounts paid in settlement
    of any action unless the indemnifying party shall have approved in writing the terms of such settlement. No indemnifying party
    shall, without the prior written consent of the indemnified party, effect any settlement of any pending or threatened proceeding
    in respect of which any indemnified party is or could have been a party and indemnification could have been sought hereunder
    by such indemnified party from all liability on claims that are the subject matter of such proceeding unless such settlement
    or compromise includes an unconditional release of such indemnified party from all liability arising out of such litigation
    or proceeding.

 

    	 	14	 

    	 

    

 

	7.4	Contribution.
    If the indemnification provided for in this Article ‎7 is required by its terms but
    is for any reason held to be unavailable to or otherwise insufficient to hold harmless an indemnified party under Sections
    7.1, ‎7.2 and ‎7.3 in respect to any Losses referred to herein, then each applicable indemnifying party shall contribute
    to the amount paid or payable by the indemnified party as a result of any Losses referred to herein in such proportion as
    is appropriate to reflect the relative fault of the Company and the applicable Investor in connection with the statements
    or omissions or inaccuracies in the representations and warranties in this Agreement and/or the Registration Statement, including
    the Prospectus, that resulted in such Losses, as well as any other relevant equitable considerations. The relative fault of
    the Company on the one hand and the applicable Investor on the other 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, or the inaccurate or the alleged inaccurate representation and/or warranty relates to information supplied by the Company
    or by the applicable Investor and the parties’ relative intent, knowledge, access to information and opportunity to
    correct or prevent such statement or omission. The amount paid or payable by a party as a result of the Losses shall be deemed
    to include, subject to the limitations in Section ‎7.3, any legal or other fees or expenses reasonably incurred by such
    party in connection with investigating or defending any action or claim. The provisions of Section ‎7.3 with respect to
    the notice of the threat or commencement of any threat or action shall apply if a claim for contribution is to be made under
    this Section ‎7.4; provided, however, that no additional notice shall be required with respect to any threat or
    action for which notice has been given under Section ‎7.3 for purposes of indemnification. The Company and each Investor
    agree that it would not be just and equitable if contribution pursuant to this Section 7.4 were determined solely by pro rata
    allocation or by any other method of allocation which does not take account of the equitable considerations referred to in
    this paragraph. No person guilty of fraudulent misrepresentation (within the meaning of Section 12(f) of the Securities Act)
    shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation.
	 	 
	7.5	Article
    ‎7 Not Exclusive. The obligations of the Company under this Article ‎7 shall be
    in addition to any liability which the Company may otherwise have to any Investor Indemnified Person. The obligations of each
    Investor under this Article 7 shall be in addition to any liability which such Investor may otherwise have to any Company
    Indemnified Person. The remedies provided in this Article ‎7 are not exclusive and shall not limit any rights or remedies
    which may otherwise be available to the parties at law or in equity.
	 	 
	8.	Miscellaneous
	 	 
	8.1	Survival.
    Each of the representations and warranties in this Agreement (or any certificate delivered
    pursuant hereto) shall survive the Closing indefinitely (or, in each case, until final resolution of any claim or actions
    arising from the breach of any such representation and warranty, if written notice of such breach was provided prior to the
    end of such survival period).
	 	 
	8.2	Legends.
    Each Investor agrees with the Company that each Backstop Acquired Share shall contain a legend substantially to the following
    effect, unless the Company determines otherwise in accordance with applicable Law:

	 	 
	 	“THE
    SHARES EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
    ACT”) OR THE SECURITIES LAWS OF ANY STATE OR ANOTHER JURISDICTION. THE SHARES MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE
    TRANSFERRED EXCEPT (1) PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OR (2) PURSUANT TO AN EFFECTIVE
    REGISTRATION STATEMENT UNDER THE SECURITIES ACT, IN EACH CASE IN ACCORDANCE WITH ALL APPLICABLE STATE SECURITIES LAWS AND
    THE SECURITIES LAWS OF OTHER JURISDICTIONS, AND IN THE CASE OF A TRANSACTION EXEMPT FROM REGISTRATION, UNLESS THE COMPANY
    HAS RECEIVED AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO IT THAT SUCH TRANSACTION DOES NOT REQUIRE REGISTRATION UNDER
    THE SECURITIES ACT AND SUCH OTHER APPLICABLE LAWS.”

 

    	 	15	 

    	 

    

 

	8.3	Further
    Assurances. Each party hereto shall do and perform or cause to be done and performed all
    further acts and shall execute and deliver all other agreements, certificates, instruments and documents as any other party
    hereto reasonably may request in order to carry out the intent and accomplish the purposes of this Agreement and the consummation
    of the transactions contemplated hereby.
	 	 
	8.4	Fees
    and Expenses.
	 	 
	(a)	Expenses.
	 	 
	(i)	Regardless
    of whether the Closing occurs, the Company shall reimburse the Investors for all reasonable out-of-pocket fees and expenses
    (including attorneys’ fees and expenses) incurred by the Investors in connection with this Agreement and the transactions
    contemplated hereby; provided, however, that such fees and expenses shall not be reimbursed by the Company if this
    Agreement is terminated by the Company pursuant to Section 6.1(e).
	 	 
	(ii)	Payment
    of the Investors’ fees and expenses by the Company pursuant to this Section ‎8.4 shall be made at the Closing
    or, if this Agreement is terminated other than by the Company pursuant to Section 6.1(e)), no later than three Business Days
    after delivery by the Investors to the Company of written notice of (A) demand for payment after the termination of this Agreement,
    and (B) reasonably detailed documentation of such fees and expenses.
	 	 
	(b)	Termination
    Fee.
	 	 
	(i)	If
    this Agreement is terminated per Section ‎‎6.1(f) or per Section ‎‎6.1(g), then the Company
    shall, simultaneously with such termination (in the case of a termination by the Company) or within one Business Day following
    such termination (in the case of a termination by the Investor), pay the Investors the Termination Fee.
	 	 
	(ii)	Notwithstanding
    anything to the contrary in this Agreement, the parties hereby acknowledge that if the Termination Fee becomes payable and
    is paid per this Section 8.4(b), the Termination Fee (and reimbursement of expenses pursuant to Section ‎8.4(a)
    shall, absent fraud or willful breach of this Agreement, be the Investors’ sole and exclusive remedy under this Agreement.
    No officer or director of the Company shall be entitled to any fee hereunder and such amount otherwise payable to an officer
    or director of the Company shall be retained by the Company.
	 	 
	(c)	Any
    amount that becomes payable by the Company in cash pursuant to this Section ‎8.4 shall be paid by wire transfer of immediately
    available funds to account(s) designated in writing by the Investors.
	 	 
	8.5	Choice
    of Law. This Agreement and the transactions contemplated hereby will be governed by the
    laws of the State of Delaware that are applicable to contracts made in and performed solely in Delaware.
	 	 
	8.6	Enforcement.
	 	 
	(a)	Any
    dispute arising under, related to or otherwise involving this Agreement or the transactions contemplated hereby will be litigated
    in the Court of Chancery of the State of Delaware. The parties agree to submit to the jurisdiction of the Court of Chancery
    of the State of Delaware and waive trial by jury. The parties do not consent to mediate any disputes before the Court of Chancery.

 

    	 	16	 

    	 

    

 

	(b)	Notwithstanding
    the foregoing, if there is a determination that the Court of Chancery of the State of Delaware does not have subject matter
    jurisdiction over any dispute arising under this Agreement, the parties agree that: (i) such dispute will be adjudicated only
    by, and will be subject to the exclusive jurisdiction and venue of, the Superior Court of Delaware of and for the County of
    New Castle; (ii) if the Superior Court of Delaware does not have subject matter jurisdiction over such dispute, then such
    dispute will be adjudicated only by, and will be subject to the exclusive jurisdiction and venue of, the Complex Commercial
    Litigation Division of the Superior Court of the State of Delaware of and for the County of Newcastle; and (iii) if the Complex
    Commercial Litigation Division of the Superior Court of the State of Delaware does not have subject matter jurisdiction over
    such dispute, then such dispute will be adjudicated only by, and will be subject to the exclusive jurisdiction and venue of,
    the United States District Court for the State of Delaware.
	 	 
	(c)	Each
    of the parties irrevocably (i) consents to submit itself to the personal jurisdiction of the Delaware courts in connection
    with any dispute arising under this Agreement, (ii) agrees that it will not attempt to deny or defeat such personal jurisdiction
    by motion or other request for relief from the Delaware courts or any other court or governmental body and (iii) agrees that
    it will not bring any action arising under this Agreement in any court other than the Delaware courts. EACH PARTY IRREVOCABLY
    AND UNCONDITIONALLY WAIVES ANY RIGHT IT MAY HAVE TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM (WHETHER BASED
    ON CONTRACT, TORT OR OTHERWISE) ARISING OUT OF THIS AGREEMENT, THE NEGOTIATION OR ENFORCEMENT HEREOF OR THE TRANSACTIONS CONTEMPLATED
    BY THIS AGREEMENT.
	 	 
	(d)	Process
    may be served in the manner specified in Section ‎‎‎8.7, such service will be deemed effective on the date of
    such notice, and each party irrevocably waives any defenses or objections it may have to service in such manner.
	 	 
	(e)	The
    court shall award attorneys’ fees and expenses and costs to the substantially prevailing party in any action (including
    appeals) for the enforcement or interpretation of this Agreement. If there are cross claims in such action (including appeals),
    the court will determine which party is the substantially prevailing party as to the action as a whole and award fees, expenses
    and costs to such party.
	 	 
	(f)	The
    transactions contemplated by this Agreement are unique. Accordingly, each of the Company and each Investor acknowledges and
    agrees that, in addition to all other remedies to which it may be entitled, each of the parties hereto is entitled to seek
    a decree of specific performance (except in the circumstances in which the Termination Fee is payable and paid under Section
    ‎‎8.4(b)); provided that the party seeking specific performance is not in material default hereunder. The
    Company and the Investors agree that, if for any reason a party shall have failed to perform its obligations under this Agreement,
    then the party seeking to enforce this Agreement against such nonperforming party shall be entitled to specific performance
    and injunctive and other equitable relief, and the parties further agree to waive any requirement for the securing or posting
    of any bond in connection with the obtaining of any such injunctive or other equitable relief. Except in the circumstances
    in which the Termination Fee is payable and paid under Section 8.4(b), this provision is without prejudice to any other rights
    that any party may have against another party for any failure to perform its obligations under this Agreement, including the
    right to seek damages for a breach of any provision of this Agreement, and all rights, powers and remedies available (at law
    or in equity) to a party in respect hereof by the other party shall be cumulative and not alternative or exclusive, and the
    exercise or beginning of the exercise of any thereof by a party shall not preclude the simultaneous or later exercise of any
    other rights, powers or remedies by such party. For the avoidance of doubt, in circumstances in which the Termination Fee
    is payable and paid, other than in the case of fraud or willful breach of this Agreement, such Termination Fee shall be the
    Investors’ sole and exclusive remedy and the Investor shall not be entitled to specific performance or any other form
    of equitable relief.

 

    	 	17	 

    	 

    

 

	8.7	Notices.
    All notices and other communications hereunder will be in writing and will be deemed given
    when delivered personally or by an internationally recognized courier service, such as DHL, to the parties at the following
    addresses (or at such other address for a party as may be specified by like notice):

 

	(a)	If
    to the Company to:	HopTo,
    Inc.
	 	 	6
    Loudon Road, Suite 200
	 	 	Concord,
    NH 03301
	 	 	Attention:
    General Counsel
	 	 	 
	(b)	If
    to any of the Investors:	The
    applicable address set forth in Annex 1

 

	8.8	No
    Third Party Beneficiaries. Except as provided in Article ‎7, this Agreement is solely
    for the benefit of the parties. Except as provided in Article ‎7, no other Person will be entitled to rely on this Agreement
    or to anticipate the benefits of this Agreement as a third-party beneficiary hereof.
	 	 
	8.9	Assignment.
    Except for assignment to bona fide retirement vehicles or bona fide estate planning vehicles
    or members of the immediate family of a natural person Investor or assignment to one or more Affiliates of the other Investors
    hereunder, no party may assign, delegate or otherwise transfer this Agreement or any rights or obligations under this Agreement
    in whole or in part (whether by operation of law or otherwise), without the prior written content of the other parties. Subject
    to the foregoing, this Agreement will not relieve the assigning party of any liability or obligation hereunder and will be
    binding upon, inure to the benefit of and be enforceable by the parties and their respective successors and permitted assigns.
    Any assignment in violation of this Section ‎‎‎8.9 will be null and void.
	 	 
	8.10	No
    Waiver. No failure or delay in the exercise or assertion of any right hereunder will impair
    such right or be construed to be a waiver of, or acquiescence in, or create an estoppel with respect to any breach of any
    representation, warranty or covenant herein, nor will any single or partial exercise of any such right preclude other or further
    exercise thereof or of any other right. All rights and remedies under this Agreement are cumulative to, and not exclusive
    of, any rights or remedies otherwise available.
	 	 
	8.11	Severability.
    Any term or provision hereof that is held by a court of competent jurisdiction or other
    authority to be invalid, void or unenforceable in any situation in any jurisdiction will not affect the validity or enforceability
    of the remaining terms and provisions hereof or the validity or enforceability of the invalid, void or unenforceable term
    or provision in any other situation or in any other jurisdiction. If the final judgment of a court of competent jurisdiction
    or other authority declares any term or provision hereof invalid, void or unenforceable, the court or other authority making
    such determination will have the power to and will, subject to the discretion of such body, reduce the scope, duration, area
    or applicability of the term or provision, to delete specific words or phrases, or to replace any invalid, void or unenforceable
    term or provision with a term or provision that is valid and enforceable and that comes closest to expressing the intention
    of the invalid or unenforceable term or provision.

 

    	 	18	 

    	 

    

 

	8.12	Amendment.
    Subject to applicable Law, the parties may (a) extend the time for the performance of obligations
    or other acts of the other party, (b) waive any inaccuracies in the representations and warranties of the other party herein,
    (c) waive compliance by the other party with any of the agreements or conditions herein or (d) amend, modify or supplement
    this Agreement. Any agreement on the part of a party to any such extension, waiver, amendment, modification or supplement
    will be valid only if in an instrument in writing signed by an authorized representative of such party. Any consent required
    of the Investors will be binding on all Investors if effected with the consent of Investors whose Pro Rata Interest in the
    aggregate represents more than fifty percent of $2.6 million; provided that any amendment that disproportionately and
    adversely effects an Investor will not be effective against such Investor without her, its or his consent.
	 	 
	8.13	Entire
    Agreement. This Agreement contains the entire agreement of the parties and supersedes all
    prior and contemporaneous agreements, negotiations, arrangements, representations and understandings, written, oral or otherwise,
    between the parties with respect to the subject matter hereof.
	 	 
	8.14	Counterparts.
    This Agreement may be executed in one or more counterparts (whether delivered by electronic
    copy or otherwise), each of which will be considered one and the same agreement and will become effective when counterparts
    have been signed by each of the parties and delivered to the other party. Each party need not sign the same counterpart.
	 	 
	8.15	Construction
    and Interpretation. When a reference is made in this Agreement to a section or article,
    such reference will be to a section or article of this Agreement, unless otherwise clearly indicated to the contrary. Whenever
    the words “include,” “includes” or “including” are used in this Agreement they will be
    deemed to be followed by the words “without limitation”. The words “hereof,” “herein”
    and “herewith” and words of similar import will, unless otherwise stated, be construed to refer to this Agreement
    as a whole and not to any particular provision of this Agreement, and article and section references are references to the
    articles and sections of this Agreement, unless otherwise specified. The plural of any defined term will have a meaning correlative
    to such defined term and words denoting any gender will include all genders and the neuter. Where a word or phrase is defined
    herein, each of its other grammatical forms will have a corresponding meaning. A reference to any legislation or to any provision
    of any legislation will include any modification, amendment, re-enactment thereof, any legislative provision substituted therefore
    and all rules, regulations and statutory instruments issued or related to such legislation. If any ambiguity or question of
    intent or interpretation arises, this Agreement will be construed as if drafted jointly by the parties, and no presumption
    or burden of proof will arise favoring or disfavoring any party by virtue of the authorship of any provision of this Agreement.
    No prior draft of this Agreement will be used in the interpretation or construction of this Agreement. The parties intend
    that each provision of this Agreement will be given full separate and independent effect. Although the same or similar subject
    matters may be addressed in different provisions of this Agreement, the parties intend that, except as expressly provided
    herein, each such provision will be read separately, be given independent significance and not be construed as limiting any
    other provision of this Agreement (whether or not more general or more specific in scope, substance or content). Headings
    are used for convenience only and will not in any way affect the construction or interpretation of this Agreement. References
    to documents includes electronic communications.

 

    	 	19	 

    	 

    

 

	8.16	Definitions.
    As used in this Agreement, the terms have the following meanings:
	 	 
	(a)	“Acquisition
    Transaction” means a (i) a merger, joint venture, partnership, consolidation, dissolution, liquidation, tender offer,
    recapitalization, reorganization, share exchange, business combination or similar transaction involving the Company or (ii)
    any other direct or indirect acquisition involving 50% or more of the total voting power of the Company, or all or substantially
    all of the consolidated total assets (including equity securities of its Subsidiaries) of the Company.
	 	 
	(b)	“Affiliate”
    of any Person means any other Person directly or indirectly Controlling or Controlled by or under direct or indirect common
    Control with such Person; provided, for purposes of this Agreement, the Company and its subsidiaries shall not be deemed to
    be Affiliates of the Investors.
	 	 
	(c)	“Alternative
    Financing Transaction” means a transaction or series of related transactions pursuant to which a Person provides to
    the Company debt or equity financing; provided that an Alternative Financing Transaction shall not include (i) a change of
    control transaction involving the Company or its stockholders, (ii) the liquidation, dissolution or reorganization of the
    Company, or (iii) an Acquisition Transaction.
	 	 
	(d)	Any
    Person shall be deemed to “Beneficially Own”, to have “Beneficial Ownership” of, or to be “Beneficially
    Owning” any securities (which securities shall also be deemed “Beneficially Owned” by such Person) that
    such Person is deemed to (i) “beneficially own” within the meaning of Rules 13d-3 and 13d-5 under the Exchange
    Act as in effect on the date of this Agreement or (ii) own for purposes of determining such person’s ownership under
    Section 382 of the Internal Revenue Code of 1986, as amended, and the related Treasury Regulations.
	 	 
	(e)	“Business
    Day” means any day other than a Saturday, Sunday or one on which banks are authorized to close in New York, New York.
	 	 
	(f)	“Control”
    has the meaning specified in Rule 12b-2 under the Exchange Act.
	 	 
	(g)	“DGCL”
    means the General Corporation Law of the State of Delaware.
	 	 
	(h)	“Effect”
    shall have the meaning set forth in the definition of “Material Adverse Effect.”
	 	 
	(i)	“Excluded
    Issuance” means any issuances of Common Stock, or options to acquire Common Stock, in bona fide employment or consulting
    relationships that are approved by the Board or a duly authorized committee of the Board.
	 	 
	(j)	“Governmental
    Entity” means any domestic or foreign governmental or regulatory authority, agency, commission, body, court or other
    legislative, executive or judicial governmental entity.
	 	 
	(k)	“Law”
    means any federal, state, local or foreign law (including the Foreign Corrupt Practices Act of 1977 and the laws implemented
    by the Office of Foreign Assets Control, United States Department of Treasury), statute or ordinance, common law, or any rule,
    regulation, judgment, order, writ, injunction, decree, arbitration award, license or permit of any Governmental Entity.

 

    	 	20	 

    	 

    

 

	(l)	“Material
    Adverse Effect” means any event, state of facts, circumstance, development, change, effect or occurrence (an “Effect”)
    that (i) is or could reasonably be expected to be materially adverse to the financial condition, business, properties, assets,
    liabilities or results of operations of the Company and its Subsidiaries taken as a whole, other than any Effect: (A) arising
    from changes or developments in the economy or financial markets generally, except to the extent such changes or developments
    have a materially disproportionate impact on the Company and its Subsidiaries, taken as a whole, relative to other participants
    in the industries in which the Company and its Subsidiaries conduct their businesses; (B) arising from general changes or
    developments in any industry in which the Company and its Subsidiaries operate, except to the extent such changes or developments
    have a materially disproportionate impact on the Company and its Subsidiaries, taken as a whole, relative to other participants
    in such industry; (C) arising from the announcement or pendency of the transactions contemplated by this Agreement; (D) arising
    from the taking of any action required by this Agreement; (E) arising from changes in any Law or GAAP or interpretation thereof;
    (F) arising from the failure by the Company to meet any public or other estimates, budgets or forecasts of revenues, earnings
    or other financial performance or results of operations (it being understood that the facts and circumstances giving rise
    to such failure may be deemed to constitute, and may be taken into account in determining whether there has been, a Material
    Adverse Effect); or (G) declines in the price or trading volume of shares of any capital stock of the Company or any change,
    or proposed change in the debt ratings of the Company or any of its Subsidiaries or any debt securities of the Company or
    any of its Subsidiaries (it being understood that the facts and circumstances giving rise to such declines or changes may
    be deemed to constitute, and may be taken into account in determining whether there has been, a Material Adverse Effect);
    or (ii) is materially adverse to the ability of the Company to consummate the transactions contemplated by this Agreement.
	 	 
	(m)	“Person”
    means any individual, corporation, general or limited partnership, limited liability company, joint venture, estate, trust,
    association, organization, Governmental Entity or other entity of any kind or nature.
	 	 
	(n)	“Previously
    Disclosed” means (i) information set forth in or incorporated in the Company’s Annual Report on Form 10-K for
    the fiscal year ended December 31, 2018 or its other reports and forms filed with the SEC under Section 13, 14 or 15
    of the Exchange Act after January 1, 2017 (except for risks and forward looking information set forth or incorporated
    in the sections “Risk Factors” or in any forward looking statement disclaimers or similar statements that are
    similarly non-specific and are predictive or forward looking in nature) and (ii) the information set forth in a letter, dated
    the date of this Agreement, delivered by the Company to the Investors concurrent with the execution and delivery of this Agreement.
	 	 
	(o)	“Pro
    Rata Portion” means, with respect to each Investor, a percentage equal to (i) the dollar amount set forth adjacent to
    such Investor’s name in Annex 1, divided by (ii) $2.6 million; provided that if Investors assume a defaulting
    Investors obligations as contemplated in Section ‎‎6.1(e), then any Pro Rata Portion calculation shall give effect
    to such assumed obligations.
	 	 
	(p)	“Subsidiary”
    means any Person (whether or not incorporated) that the Company directly or indirectly owns or in respect of which the Company
    has the power to vote or Control 50% or more of any class or series of capital shares or other equity interests of such Person.
	 	 
	(q)	“Superior
    Transaction” means a bona fide written Alternative Financing Transaction or Acquisition Transaction that the Board (or
    a committee thereof consisting only of disinterested directors) has determined in good faith, after receiving the advice of
    its financial advisors and outside legal counsel and in the exercise of its fiduciary duties, is in the best interests of
    the Company’s stockholders, including, in the case of an Alternative Financing Transaction, a determination that such
    Alternative Financing Transaction would (i) provide the Company with liquidity in an amount in excess of that expected to
    result from the Rights Offering and Backstop Commitment or (ii) result in more favorable economic terms (including in the
    case of an Alternative Financing Transaction that is an equity investment, the price per share to be paid for the Capital
    Stock of the Company) for the Company than the Rights Offering and Backstop Commitment. Without limiting the generality of
    the foregoing, in evaluating whether an Alternative Financing Transaction or Acquisition Transaction is in the best interests
    of the Company’s stockholders, the Board (or a committee thereof consisting only of disinterested directors) shall take
    into consideration, among other things, regulatory or other approvals that would be required for such transaction.
	 	 
	(r)	“Termination
    Fee” means $75,000.

 

    	 	21	 

    	 

    

 

The
parties hereto have caused this Agreement to be duly executed as of date first written above.

 

HOPTO,
INC.

 

	By:	 	 
	Name:	 	 
	Title:	 	 

 

    	 	22	 

    	 

    

 

Annex
1

THE
INVESTORS

 

	Investor Name and Address	 	Commitment Amount	 	Shares Beneficially Owned as of the Date of this Agreement
	Novelty Capital Partners LP 
620 Newport Center Drive, 11th Floor

                                                                   Newport Beach, CA 92660
	 	$	2,346,153	 	 	 	1,397,150	 
	Richard S. Chernicoff	 	$	18,200	 	 	 	0	 
	Thomas C. Stewart	 	$	28,200	 	 	 	120,000	 
	Jean-Louis Casabonne	 	$	18,200	 	 	 	3,333	 

 

    	 	Annex - 1

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