Document:

Exhibit
10.2

 

EXHIBIT
C

 

REGISTRATION
RIGHTS AGREEMENT

 

This
Registration Rights Agreement (this “Agreement”) is made and entered into as of August 5, 2020, between Neonode
Inc., a Delaware corporation (the “Company”), and each of the several purchasers signatory hereto (each such
purchaser, a “Purchaser” and, collectively, the “Purchasers”).

 

This
Agreement is made pursuant to the Securities Purchase Agreement, dated as of the date hereof, between the Company and each Purchaser
(the “Purchase Agreement”).

 

The
Company and each Purchaser hereby agrees as follows:

 

1.
Definitions.

 

Capitalized
terms used and not otherwise defined herein that are defined in the Purchase Agreement shall have the meanings given such terms
in the Purchase Agreement. As used in this Agreement, the following terms shall have the following meanings:

 

“Advice”
shall have the meaning set forth in Section 6(c).

 

“Effectiveness
Date” means, with respect to the Initial Registration Statement required to be filed hereunder, the 75th calendar day
following the date hereof (or, in the event of a “full review” by the Commission, the 105th calendar day following
the date hereof) and with respect to any additional Registration Statements which may be required pursuant to Section 2(c) or
Section 3(c), the 60th calendar day following the date on which an additional Registration Statement is required to be filed hereunder
(or, in the event of a “full review” by the Commission, the 90th calendar day following the date such additional Registration
Statement is required to be filed hereunder); provided, however, that in the event the Company is notified by the
Commission that one or more of the above Registration Statements will not be reviewed or is no longer subject to further review
and comments, the Effectiveness Date as to such Registration Statement shall be the fifth Trading Day following the date on which
the Company is so notified if such date precedes the dates otherwise required above, provided, further, if such Effectiveness
Date falls on a day that is not a Trading Day, then the Effectiveness Date shall be the next succeeding Trading Day.

 

“Effectiveness
Period” shall have the meaning set forth in Section 2(a).

 

“Event”
shall have the meaning set forth in Section 2(d).

 

     

     

    

 

“Event
Date” shall have the meaning set forth in Section 2(d).

 

“Filing
Date” means, with respect to the Initial Registration Statement required hereunder, the 30th calendar day following
the date hereof and, with respect to any additional Registration Statements which may be required pursuant to Section 2(c) or
Section 3(c), the earliest practical date on which the Company is permitted by SEC Guidance to file such additional Registration
Statement related to the Registrable Securities.

 

“Holder”
or “Holders” means the holder or holders, as the case may be, from time to time of Registrable Securities.

 

“Indemnified
Party” shall have the meaning set forth in Section 5(c).

 

“Indemnifying
Party” shall have the meaning set forth in Section 5(c).

 

“Initial
Registration Statement” means the initial Registration Statement filed pursuant to this Agreement.

 

“Losses”
shall have the meaning set forth in Section 5(a).

 

“Plan
of Distribution” shall have the meaning set forth in Section 2(a).

 

“Prospectus”
means the prospectus included in a Registration Statement (including, without limitation, a prospectus that includes any information
previously omitted from a prospectus filed as part of an effective registration statement in reliance upon Rule 430A promulgated
by the Commission pursuant to the Securities Act), as amended or supplemented by any prospectus supplement, with respect to the
terms of the offering of any portion of the Registrable Securities covered by a Registration Statement, and all other amendments
and supplements to the Prospectus, including post-effective amendments, and all material incorporated by reference or deemed to
be incorporated by reference in such Prospectus.

 

“Registrable
Securities” means, as of any date of determination, (i) all Shares, (ii) all of the shares of Common Stock then issued
and issuable upon conversion in full of the Preferred Stock (assuming on such date the shares of Preferred Stock are converted
in full without regard to any conversion limitations therein), (iii) any additional shares of Common Stock issued and issuable
in connection with any anti-dilution provisions in the Preferred Stock (in each case, without giving effect to any limitations
on conversion set forth in the Certificate of Designation) and (iv) any securities issued or then issuable upon any stock split,
dividend or other distribution, recapitalization or similar event with respect to the foregoing; provided, however, that
any such Registrable Securities shall cease to be Registrable Securities (and the Company shall not be required to maintain the
effectiveness of any, or file another, Registration Statement hereunder with respect thereto) for so long as (a) a Registration
Statement with respect to the sale of such Registrable Securities is declared effective by the Commission under the Securities
Act and such Registrable Securities have been disposed of by the Holder in accordance with such effective Registration Statement,
(b) such Registrable Securities have been previously sold in accordance with Rule 144, or (c) such securities become eligible
for resale without volume or manner-of-sale restrictions and without current public information pursuant to Rule 144 as set forth
in a written opinion letter to such effect, addressed, delivered and acceptable to the Transfer Agent and the affected Holders
(assuming that such securities and any securities issuable upon exercise, conversion or exchange of which, or as a dividend upon
which, such securities were issued or are issuable, were at no time held by any Affiliate of the Company), as reasonably determined
by the Company, upon the advice of counsel to the Company and the Transfer Agent has issued certificates or delivered book-entry
statements, as applicable, for such Registrable Securities to the Holder thereof, or as such Holder may direct, without any restrictive
legend.

 

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“Registration
Statement” means any registration statement required to be filed hereunder pursuant to Section 2(a) and any additional
registration statements contemplated by Section 2(c) or Section 3(c), including (in each case) the Prospectus, amendments and
supplements to any such registration statement or Prospectus, including pre- and post-effective amendments, all exhibits thereto,
and all material incorporated by reference or deemed to be incorporated by reference in any such registration statement.

 

“Rule
415” means Rule 415 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended or interpreted
from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same purpose
and effect as such Rule.

 

“Rule
424” means Rule 424 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended or interpreted
from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same purpose
and effect as such Rule.

 

“Selling
Stockholder Questionnaire” shall have the meaning set forth in Section 3(a).

 

“SEC
Guidance” means (i) any publicly-available written or oral guidance of the Commission staff, or any comments, requirements
or requests of the Commission staff and (ii) the Securities Act.

 

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2.
Shelf Registration.

 

(a)
On or prior to each Filing Date, the Company shall prepare and file with the Commission a Registration Statement covering the
resale of all of the Registrable Securities that are not then registered on an effective Registration Statement for an offering
to be made on a continuous basis pursuant to Rule 415. Each Registration Statement filed hereunder shall be on Form S-3 (except
if the Company is not then eligible to register for resale the Registrable Securities on Form S-3, in which case such registration
shall be on another appropriate form in accordance herewith, subject to the provisions of Section 2(e)) and shall contain (unless
otherwise directed by the Required Purchasers) substantially the “Plan of Distribution” attached hereto as
Annex A and substantially the “Selling Stockholder” section attached hereto as Annex B; provided,
however, that no Holder shall be required to be named as an “underwriter” without such Holder’s express
prior written consent. Subject to the terms of this Agreement, the Company shall use its reasonable best efforts to cause a Registration
Statement filed under this Agreement (including, without limitation, under Section 3(c)) to be declared effective under the Securities
Act as promptly as possible after the filing thereof, but in any event no later than the applicable Effectiveness Date, and shall
use its reasonable best efforts to keep such Registration Statement continuously effective under the Securities Act until the
date that all Registrable Securities covered by such Registration Statement (i) have been sold, thereunder or pursuant to Rule
144, or (ii) no longer constitute Registrable Securities pursuant to clause (c) of the definition thereof (the “Effectiveness
Period”). The Company shall telephonically request effectiveness of a Registration Statement as of 5:00 p.m. (New York
City time) on a Trading Day. The Company shall immediately notify the Holders via facsimile or by e-mail of the effectiveness
of a Registration Statement on the same Trading Day that the Company telephonically confirms effectiveness with the Commission,
which shall be the date requested for effectiveness of such Registration Statement. The Company shall, by 9:30 a.m. (New York
City time) on the Trading Day after the effective date of such Registration Statement, file a final Prospectus with the Commission
as required by Rule 424. Failure to so notify the Holder within one (1) Trading Day of such notification of effectiveness or failure
to file a final Prospectus as foresaid shall be deemed an Event under Section 2(d).

 

(b)
If at any time the staff of the Commission (the “Staff”) takes the position that the offering of some or all
of the Registrable Securities in the Registration Statement is not eligible to be made on a delayed or continuous basis under
the provisions of Rule 415 under the Securities Act or requires any Holder to be named as an “underwriter”, the Company
shall use its best efforts to persuade the Staff that the offering contemplated by a Registration Statement is a bona fide secondary
offering and not an offering “by or on behalf of the issuer” as defined in Rule 415 and that none of the Holders is
an “underwriter”. The Holders shall have the right to participate or have their counsel participate in any meetings
or discussions with the Staff regarding the Staff’s position and to comment or have their counsel comment on any written
submission made to the Staff with respect thereto. No such written submission shall be made to the Staff to which counsel to a
Holder reasonably objects. In the event that, despite the Company’s best efforts and compliance with the terms of this Section
2(b), the Staff refuses to alter its position, the Company shall (i) notify the Holders thereof and use its commercially reasonable
efforts to file amendments to the Initial Registration Statement as required by the Commission, covering the maximum number of
Registrable Securities permitted to be registered by the Commission, on Form S-3 or such other form available to register for
resale the Registrable Securities as a secondary offering, subject to the provisions of Section 2(e); with respect to filing on
Form S-3 or other appropriate form, and subject to the provisions of Section 2(d) with respect to the payment of liquidated damages
and/or (ii) agree to such restrictions and limitations on the registration and resale of the Registrable Securities as the Staff
may require to assure the Company’s compliance with the requirements of Rule 415; provided, however, that
the Company shall not agree to name any Holder as an “underwriter” in such Registration Statement without the prior
written consent of such Holder.

 

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(c)
Notwithstanding any other provision of this Agreement and subject to the payment of liquidated damages pursuant to Section 2(d),
if the Staff or any SEC Guidance sets forth a limitation on the number of Registrable Securities permitted to be registered on
a particular Registration Statement as a secondary offering (and notwithstanding that the Company used diligent efforts to advocate
with the Commission for the registration of all or a greater portion of Registrable Securities), unless otherwise directed in
writing by a Holder as to its Registrable Securities, the number of Registrable Securities to be registered on such Registration
Statement will be reduced as follows:

 

	 	a.	First, the Company shall reduce or eliminate any securities
to be included other than Registrable Securities;
	 	 	 
	 	b.	Second, the Company shall reduce Registrable Securities
represented by Conversion Shares underlying the Series C-2 Preferred Stock (applied, in the case that some Conversion Shares underlying
the Series C-2 Preferred Stock may be registered, to the Holders on a pro rata basis based on the total number of unregistered
Conversion Shares held by such Holders); and
	 	 	 
	 	c.	Third, the Company shall reduce Registrable Securities
represented by Conversion Shares underlying the Series C-1 Preferred Stock (applied, in the case that some Conversion Shares underlying
the Series C-1 Preferred Stock may be registered, to the Holders on a pro rata basis based on the total number of unregistered
Conversion Shares held by such Holders)

 

In
the event of a cutback hereunder, the Company shall give the Holder at least five (5) Trading Days prior written notice along
with the calculations as to such Holder’s allotment. In the event the Company amends the Initial Registration Statement
in accordance with the foregoing, the Company will use its best efforts to file with the Commission, as promptly as allowed by
Commission or SEC Guidance provided to the Company or to registrants of securities in general, one or more registration statements
on Form S-3 or such other form available to register for resale those Registrable Securities that were not registered for resale
on the Initial Registration Statement, as amended.

 

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(d)
If: (i) the Initial Registration Statement is not filed on or prior to its Filing Date (if the Company files the Initial Registration
Statement without affording the Holders the opportunity to review (and, with respect to disclosure on such Holder, to comment)
on the same as required by Section 3(a) herein, the Company shall be deemed to have not satisfied this clause (i)), or (ii) the
Company fails to file with the Commission a request for acceleration of a Registration Statement in accordance with Rule 461 promulgated
by the Commission pursuant to the Securities Act, within five (5) Trading Days of the date that the Company is notified (orally
or in writing, whichever is earlier) by the Commission that such Registration Statement will not be “reviewed” or
will not be subject to further review, or (iii) a Registration Statement registering for resale all of the Registrable Securities
is not declared effective by the Commission by the Effectiveness Date of the Initial Registration Statement, or (iv) after the
effective date of a Registration Statement, such Registration Statement ceases for any reason to remain continuously effective
as to all Registrable Securities included in such Registration Statement, or the Holders are otherwise not permitted to utilize
the Prospectus therein to resell such Registrable Securities, for more than thirty (30) consecutive calendar days or more than
an aggregate of forty five (45) calendar days (which need not be consecutive calendar days) during any 12-month period (any such
failure or breach being referred to as an “Event”, and for purposes of clauses (i) and (iii), the date on which
such Event occurs, and for purpose of clause (ii) the date on which such five (5) Trading Day period is exceeded, and for purpose
of clause (iv) the date on which such thirty (30) or forty five (45) calendar day period, as applicable, is exceeded being referred
to as “Event Date”), then, in addition to any other rights the Holders may have hereunder or under applicable
law, on each such Event Date and on each monthly anniversary of each such Event Date (if the applicable Event shall not have been
cured by such date) until the applicable Event is cured, the Company shall pay to each Holder an amount in cash, as partial liquidated
damages and not as a penalty, equal to the product of 1.0% multiplied by the aggregate Subscription Amount paid by such Holder
pursuant to the Purchase Agreement. If the Company fails to pay any partial liquidated damages pursuant to this Section in full
within seven days after the date payable, the Company will pay interest thereon at a rate of 12% per annum (or such lesser maximum
amount that is permitted to be paid by applicable law) to the Holder, accruing daily from the date such partial liquidated damages
are due until such amounts, plus all such interest thereon, are paid in full. The partial liquidated damages pursuant to the terms
hereof shall apply on a daily pro rata basis for any portion of a month prior to the cure of an Event.

 

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(e)
If Form S-3 is not available for the registration of the resale of Registrable Securities hereunder, the Company shall (i) register
the resale of the Registrable Securities on another appropriate form and (ii) undertake to register the Registrable Securities
on Form S-3 as soon as such form is available, provided that the Company shall maintain the effectiveness of the Registration
Statement then in effect until such time as a Registration Statement on Form S-3 covering the Registrable Securities has been
declared effective by the Commission.

 

(f)
Notwithstanding anything to the contrary contained herein, in no event shall the Company be permitted to name any Holder or affiliate
of a Holder as any Underwriter without the prior written consent of such Holder.

 

3.
Registration Procedures.

 

In
connection with the Company’s registration obligations hereunder, the Company shall:

 

(a)
Not less than five (5) Trading Days prior to the filing of each Registration Statement and not less than one (1) Trading Day prior
to the filing of any related Prospectus or any amendment or supplement thereto (including any document that would be incorporated
or deemed to be incorporated therein by reference), the Company shall (i) furnish to each Holder copies of all such documents
proposed to be filed, which documents (other than those incorporated or deemed incorporated by reference) will be subject to review
by such Holders, and (ii) cause its officers and directors, counsel and independent registered public accountants to respond to
such inquiries as shall be necessary, in the reasonable opinion of respective counsel to each Holder, to conduct a reasonable
investigation within the meaning of the Securities Act. The Company shall not file a Registration Statement or any such Prospectus
or any amendments or supplements thereto to which the Holders of a majority of the Registrable Securities shall reasonably object
in good faith, provided that, the Company is notified of such objection in writing no later than five (5) Trading Days after the
Holders have been so furnished copies of a Registration Statement or one (1) Trading Day after the Holders have been so furnished
copies of any related Prospectus or amendments or supplements thereto. Each Holder agrees to furnish to the Company a completed
questionnaire in the form attached to this Agreement as Annex B (a “Selling Stockholder Questionnaire”)
on a date that is not less than two (2) Trading Days prior to the Filing Date or by the end of the fourth (4th) Trading
Day following the date on which such Holder receives draft materials in accordance with this Section.

 

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(b)
(i) Prepare and file with the Commission such amendments, including post-effective amendments, to a Registration Statement and
the Prospectus used in connection therewith as may be necessary to keep a Registration Statement continuously effective as to
the applicable Registrable Securities for the Effectiveness Period and prepare and file with the Commission such additional Registration
Statements in order to register for resale under the Securities Act all of the Registrable Securities, (ii) cause the related
Prospectus to be amended or supplemented by any required Prospectus supplement (subject to the terms of this Agreement), and,
as so supplemented or amended, to be filed pursuant to Rule 424, (iii) respond as promptly as reasonably possible to any comments
received from the Commission with respect to a Registration Statement or any amendment thereto and provide as promptly as reasonably
possible to the Holders true and complete copies of all correspondence from and to the Commission relating to a Registration Statement
(provided that, the Company shall excise any information contained therein which would constitute material non-public information
regarding the Company or any of its Subsidiaries), and (iv) comply in all material respects with the applicable provisions of
the Securities Act and the Exchange Act with respect to the disposition of all Registrable Securities covered by a Registration
Statement during the applicable period in accordance (subject to the terms of this Agreement) with the intended methods of disposition
by the Holders thereof set forth in such Registration Statement as so amended or in such Prospectus as so supplemented.

 

(c)
If during the Effectiveness Period, the number of Registrable Securities at any time exceeds 100% of the number of shares of Common
Stock then registered in a Registration Statement, then the Company shall file as soon as reasonably practicable, but in any case
prior to the applicable Filing Date, an additional Registration Statement covering the resale by the Holders of not less than
the number of such Registrable Securities.

 

(d)
Notify the Holders of Registrable Securities to be sold (which notice shall, pursuant to clauses (iii) through (vi) hereof, be
accompanied by an instruction to suspend the use of the Prospectus until the requisite changes have been made) as promptly as
reasonably possible (and, in the case of (i)(A) below, not less than one (1) Trading Day prior to such filing) and (if requested
by any such Person) confirm such notice in writing no later than one (1) Trading Day following the day (i)(A) when a Prospectus
or any Prospectus supplement or post-effective amendment to a Registration Statement is proposed to be filed, (B) when the Commission
notifies the Company whether there will be a “review” of such Registration Statement and whenever the Commission comments
in writing on such Registration Statement, and (C) with respect to a Registration Statement or any post-effective amendment, when
the same has become effective, (ii) of any request by the Commission or any other federal or state governmental authority for
amendments or supplements to a Registration Statement or Prospectus or for additional information, (iii) of the issuance by the
Commission or any other federal or state governmental authority of any stop order suspending the effectiveness of a Registration
Statement covering any or all of the Registrable Securities or the initiation of any Proceedings for that purpose, (iv) of the
receipt by the Company of any notification with respect to the suspension of the qualification or exemption from qualification
of any of the Registrable Securities for sale in any jurisdiction, or the initiation or threatening of any Proceeding for such
purpose, (v) of the occurrence of any event or passage of time that makes the financial statements included in a Registration
Statement ineligible for inclusion therein or any statement made in a Registration Statement or Prospectus or any document incorporated
or deemed to be incorporated therein by reference untrue in any material respect or that requires any revisions to a Registration
Statement, Prospectus or other documents so that, in the case of a Registration Statement or the Prospectus, as the case may be,
it will not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or
necessary to make the statements therein, in light of the circumstances under which they were made, not misleading, and (vi) of
the occurrence or existence of any pending corporate development with respect to the Company that the Company believes may be
material and that, in the determination of the Company, makes it not in the best interest of the Company to allow continued availability
of a Registration Statement or Prospectus; provided, however, that in no event shall any such notice contain any
information which would constitute material, non-public information regarding the Company or any of its Subsidiaries.

 

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(e)
Use its reasonable best efforts to avoid the issuance of, or, if issued, obtain the withdrawal of (i) any order stopping or suspending
the effectiveness of a Registration Statement, or (ii) any suspension of the qualification (or exemption from qualification) of
any of the Registrable Securities for sale in any jurisdiction, at the earliest practicable moment.

 

(f)
Furnish to each Holder, without charge, at least one conformed copy of each such Registration Statement and each amendment thereto,
including financial statements and schedules, all documents incorporated or deemed to be incorporated therein by reference to
the extent requested by such Person, and all exhibits to the extent requested by such Person (including those previously furnished
or incorporated by reference) promptly after the filing of such documents with the Commission, provided that any such item which
is available on the EDGAR system (or successor thereto) need not be furnished in physical form.

 

(g)
Subject to the terms of this Agreement, the Company hereby consents to the use of such Prospectus and each amendment or supplement
thereto by each of the selling Holders in connection with the offering and sale of the Registrable Securities covered by such
Prospectus and any amendment or supplement thereto, except after the giving of any notice pursuant to Section 3(d).

 

(h)
Prior to any resale of Registrable Securities by a Holder, use its commercially reasonable efforts to register or qualify or cooperate
with the selling Holders in connection with the registration or qualification (or exemption from the Registration or qualification)
of such Registrable Securities for the resale by the Holder under the securities or Blue Sky laws of such jurisdictions within
the United States as any Holder reasonably requests in writing, to keep each registration or qualification (or exemption therefrom)
effective during the Effectiveness Period and to do any and all other acts or things reasonably necessary to enable the disposition
in such jurisdictions of the Registrable Securities covered by each Registration Statement, provided that the Company shall not
be required to qualify generally to do business in any jurisdiction where it is not then so qualified, subject the Company to
any material tax in any such jurisdiction where it is not then so subject or file a general consent to service of process in any
such jurisdiction.

 

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(i)
If requested by a Holder, cooperate with such Holder to facilitate the timely preparation and delivery of a book-entry statement
representing Registrable Securities to be delivered to a transferee pursuant to a Registration Statement, which book-entry statement
representing Registrable Securities shall be free, to the extent permitted by the Purchase Agreement, of all restrictive legends,
and to enable such Registrable Securities to be in such denominations and registered in such names as any such Holder may request.

 

(j)
Upon the occurrence of any event contemplated by Section 3(d), as promptly as reasonably possible under the circumstances taking
into account the Company’s good faith assessment of any adverse consequences to the Company and its stockholders of the
premature disclosure of such event, prepare a supplement or amendment, including a post-effective amendment, to a Registration
Statement or a supplement to the related Prospectus or any document incorporated or deemed to be incorporated therein by reference,
and file any other required document so that, as thereafter delivered, neither a Registration Statement nor such Prospectus will
contain 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, in light of the circumstances under which they were made, not misleading. If
the Company notifies the Holders in accordance with clauses (iii) through (vi) of Section 3(d) above to suspend the use of any
Prospectus until the requisite changes to such Prospectus have been made, then the Holders shall suspend use of such Prospectus.
The Company will use its reasonable best efforts to ensure that the use of the Prospectus may be resumed as promptly as is practicable.
The Company shall be entitled to exercise its right under this Section 3(j) to suspend the availability of a Registration Statement
and Prospectus, subject to the payment of partial liquidated damages otherwise required pursuant to Section 2(d), for a period
not to exceed 45 calendar days (which need not be consecutive days) in any 12-month period.

 

(k)
Otherwise use commercially reasonable efforts to comply with all applicable rules and regulations of the Commission under the
Securities Act and the Exchange Act, including, without limitation, Rule 172 under the Securities Act, file any final Prospectus,
including any supplement or amendment thereof, with the Commission pursuant to Rule 424 under the Securities Act, promptly inform
the Holders in writing if, at any time during the Effectiveness Period, the Company does not satisfy the conditions specified
in Rule 172 and, as a result thereof, the Holders are required to deliver a Prospectus in connection with any disposition of Registrable
Securities and take such other actions as may be reasonably necessary to facilitate the registration of the Registrable Securities
hereunder.

 

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(l)
The Company shall use its reasonable best efforts to maintain eligibility for use of Form S-3 (or any successor form thereto)
for the registration of the resale of Registrable Securities.

 

(m)
The Company may require each selling Holder to furnish to the Company a certified statement as to the number of shares of Common
Stock beneficially owned by such Holder and the natural persons thereof that have voting and dispositive control over the shares.
During any periods that the Company is unable to meet its obligations hereunder with respect to the registration of the Registrable
Securities solely because any Holder fails to furnish such information within three Trading Days of the Company’s request,
any liquidated damages that are accruing at such time as to such Holder only shall be tolled and any Event that may otherwise
occur solely because of such delay shall be suspended as to such Holder only, until such information is delivered to the Company.

 

4.
Registration Expenses. All fees and expenses incident to the performance of or compliance with, this Agreement by the Company
shall be borne by the Company whether or not any Registrable Securities are sold pursuant to a Registration Statement. The fees
and expenses referred to in the foregoing sentence shall include, without limitation, (i) all registration and filing fees (including,
without limitation, fees and expenses of the Company’s counsel and independent registered public accountants) (A) with respect
to filings made with the Commission, (B) with respect to filings required to be made with any Trading Market on which the Common
Stock is then listed for trading, and (C) in compliance with applicable state securities or Blue Sky laws reasonably agreed to
by the Company in writing (including, without limitation, fees and disbursements of counsel for the Company in connection with
Blue Sky qualifications or exemptions of the Registrable Securities), (ii) printing expenses (including, without limitation, expenses
of printing certificates for Registrable Securities), (iii) messenger, telephone and delivery expenses, (iv) fees and disbursements
of counsel for the Company, (v) Securities Act liability insurance, if the Company so desires such insurance, and (vi) fees and
expenses of all other Persons retained by the Company in connection with the consummation of the transactions contemplated by
this Agreement. In addition, the Company shall be responsible for all of its internal expenses incurred in connection with the
consummation of the transactions contemplated by this Agreement (including, without limitation, all salaries and expenses of its
officers and employees performing legal or accounting duties), the expense of any annual audit and the fees and expenses incurred
in connection with the listing of the Registrable Securities on any securities exchange as required hereunder. In no event shall
the Company be responsible for any broker or similar commissions of any Holder or, except to the extent provided for in the Transaction
Documents, any legal fees or other costs of the Holders.

 

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5.
Indemnification.

 

(a)
Indemnification by the Company. The Company shall, notwithstanding any termination of this Agreement, indemnify and hold
harmless each Holder, the officers, directors, members, partners, agents, brokers (including brokers who offer and sell Registrable
Securities as principal as a result of a pledge or any failure to perform under a margin call of Common Stock), investment advisors
and employees (and any other Persons with a functionally equivalent role of a Person holding such titles, notwithstanding a lack
of such title or any other title) of each of them, each Person who controls any such Holder (within the meaning of Section 15
of the Securities Act or Section 20 of the Exchange Act) and the officers, directors, members, stockholders, partners, agents
and employees (and any other Persons with a functionally equivalent role of a Person holding such titles, notwithstanding a lack
of such title or any other title) of each such controlling Person, to the fullest extent permitted by applicable law, from and
against any and all losses, claims, damages, liabilities, costs (including, without limitation, reasonable attorneys’ fees)
and expenses (collectively, “Losses”), as incurred, arising out of or relating to (1) any untrue or alleged
untrue statement of a material fact contained in a Registration Statement, any Prospectus or any form of prospectus or in any
amendment or supplement thereto or in any preliminary prospectus, or arising out of or relating to any omission or alleged omission
of a material fact required to be stated therein or necessary to make the statements therein (in the case of any Prospectus or
supplement thereto, in light of the circumstances under which they were made) not misleading or (2) any violation or alleged violation
by the Company of the Securities Act, the Exchange Act or any state securities law, or any rule or regulation thereunder, in connection
with the performance of its obligations under this Agreement, except to the extent, but only to the extent, that (i) such untrue
statements or omissions are based solely upon information regarding such Holder furnished in writing to the Company by such Holder
expressly for use therein, or to the extent that such information relates to such Holder or such Holder’s proposed method
of distribution of Registrable Securities and was reviewed and expressly approved in writing by such Holder expressly for use
in a Registration Statement, such Prospectus or in any amendment or supplement thereto (it being understood that the Holder has
approved Annex A hereto for this purpose) or (ii) in the case of an occurrence of an event of the type specified in Section 3(d)(iii)-(vi),
the use by such Holder of an outdated, defective or otherwise unavailable Prospectus after the Company has notified such Holder
in writing that the Prospectus is outdated, defective or otherwise unavailable for use by such Holder and prior to the receipt
by such Holder of the Advice contemplated in Section 6(c). The Company shall notify the Holders promptly of the institution, threat
or assertion of any Proceeding arising from or in connection with the transactions contemplated by this Agreement of which the
Company is aware. Such indemnity shall remain in full force and effect regardless of any investigation made by or on behalf of
such indemnified person and shall survive the transfer of any Registrable Securities by any of the Holders in accordance with
Section 6(g).

 

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(b)
Indemnification by Holders. Each Holder shall, severally and not jointly, indemnify and hold harmless the Company, its
directors, officers, agents and employees, each Person who controls the Company (within the meaning of Section 15 of the Securities
Act and Section 20 of the Exchange Act), and the directors, officers, agents or employees of such controlling Persons, to the
fullest extent permitted by applicable law, from and against all Losses, as incurred, to the extent arising out of or based solely
upon: any untrue or alleged untrue statement of a material fact contained in any Registration Statement, any Prospectus, or in
any amendment or supplement thereto or in any preliminary prospectus, or arising out of or relating to any omission or alleged
omission of a material fact required to be stated therein or necessary to make the statements therein (in the case of any Prospectus
or supplement thereto, in light of the circumstances under which they were made) not misleading (i) to the extent, but only to
the extent, that such untrue statement or omission is contained in any information so furnished in writing by such Holder to the
Company expressly for inclusion in such Registration Statement or such Prospectus or (ii) to the extent, but only to the extent,
that such information relates to such Holder’s information provided in the Selling Stockholder Questionnaire or the proposed
method of distribution of Registrable Securities and was reviewed and expressly approved in writing by such Holder expressly for
use in a Registration Statement (it being understood that the Holder has approved Annex A hereto for this purpose), such Prospectus
or in any amendment or supplement thereto. In no event shall the liability of a selling Holder be greater in amount than the dollar
amount of the proceeds (net of all expenses paid by such Holder in connection with any claim relating to this Section 5 and the
amount of any damages such Holder has otherwise been required to pay by reason of such untrue statement or omission) received
by such Holder upon the sale of the Registrable Securities included in the Registration Statement giving rise to such indemnification
obligation.

 

(c)
Conduct of Indemnification Proceedings. If any Proceeding shall be brought or asserted against any Person entitled to indemnity
hereunder (an “Indemnified Party”), such Indemnified Party shall promptly notify the Person from whom indemnity
is sought (the “Indemnifying Party”) in writing, and the Indemnifying Party shall have the right to assume
the defense thereof, including the employment of counsel reasonably satisfactory to the Indemnified Party and the payment of all
reasonable fees and expenses incurred in connection with defense thereof, provided that the failure of any Indemnified Party to
give such notice shall not relieve the Indemnifying Party of its obligations or liabilities pursuant to this Agreement, except
(and only) to the extent that it shall be finally determined by a court of competent jurisdiction (which determination is not
subject to appeal or further review) that such failure shall have materially and adversely prejudiced the Indemnifying Party.

 

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An
Indemnified Party shall have the right to employ separate counsel in any such Proceeding and to participate in the defense thereof,
but the fees and expenses of such counsel shall be at the expense of such Indemnified Party or Parties unless: (1) the Indemnifying
Party has agreed in writing to pay such fees and expenses, (2) the Indemnifying Party shall have failed promptly to assume the
defense of such Proceeding and to employ counsel reasonably satisfactory to such Indemnified Party in any such Proceeding, or
(3) the named parties to any such Proceeding (including any impleaded parties) include both such Indemnified Party and the Indemnifying
Party, and counsel to the Indemnified Party shall reasonably believe that a material conflict of interest is likely to exist if
the same counsel were to represent such Indemnified Party and the Indemnifying Party (in which case, if such Indemnified Party
notifies the Indemnifying Party in writing that it elects to employ separate counsel at the expense of the Indemnifying Party,
the Indemnifying Party shall not have the right to assume the defense thereof and the reasonable fees and expenses of no more
than one separate counsel shall be at the expense of the Indemnifying Party). The Indemnifying Party shall not be liable for any
settlement of any such Proceeding effected without its written consent, which consent shall not be unreasonably withheld or delayed.
No Indemnifying Party shall, without the prior written consent of the Indemnified Party, effect any settlement of any pending
Proceeding in respect of which any Indemnified Party is a party, unless such settlement includes an unconditional release of such
Indemnified Party from all liability on claims that are the subject matter of such Proceeding.

 

Subject
to the terms of this Agreement, all reasonable fees and expenses of the Indemnified Party (including reasonable fees and expenses
to the extent incurred in connection with investigating or preparing to defend such Proceeding in a manner not inconsistent with
this Section) shall be paid to the Indemnified Party, as incurred, within ten Trading Days of written notice thereof to the Indemnifying
Party, provided that the Indemnified Party shall promptly reimburse the Indemnifying Party for that portion of such fees and expenses
applicable to such actions for which such Indemnified Party is finally determined by a court of competent jurisdiction (which
determination is not subject to appeal or further review) not to be entitled to indemnification hereunder.

 

(d)
Contribution. If the indemnification under Section 5(a) or 5(b) is unavailable to an Indemnified Party or insufficient
to hold an Indemnified Party harmless for any Losses, then each Indemnifying Party shall contribute to the amount paid or payable
by such Indemnified Party, in such proportion as is appropriate to reflect the relative fault of the Indemnifying Party and Indemnified
Party in connection with the actions, statements or omissions that resulted in such Losses as well as any other relevant equitable
considerations. The relative fault of such Indemnifying Party and Indemnified Party shall be determined by reference to, among
other things, whether any action in question, including any untrue or alleged untrue statement of a material fact or omission
or alleged omission of a material fact, has been taken or made by, or relates to information supplied by, such Indemnifying Party
or Indemnified Party, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent
such action, statement or omission. The amount paid or payable by a party as a result of any Losses shall be deemed to include,
subject to the limitations set forth in this Agreement, any reasonable attorneys’ or other fees or expenses incurred by
such party in connection with any Proceeding to the extent such party would have been indemnified for such fees or expenses if
the indemnification provided for in this Section was available to such party in accordance with its terms.

 

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The
parties hereto agree that it would not be just and equitable if contribution pursuant to this Section 5(d) were determined by
pro rata allocation or by any other method of allocation that does not take into account the equitable considerations referred
to in the immediately preceding paragraph. In no event shall the contribution obligation of a Holder of Registrable Securities
be greater in amount than the dollar amount of the proceeds (net of all expenses paid by such Holder in connection with any claim
relating to this Section 5 and the amount of any damages such Holder has otherwise been required to pay by reason of such untrue
or alleged untrue statement or omission or alleged omission) received by it upon the sale of the Registrable Securities giving
rise to such contribution obligation.

 

The
indemnity and contribution agreements contained in this Section are in addition to any liability that the Indemnifying Parties
may have to the Indemnified Parties.

 

6.
Miscellaneous.

 

(a)
Remedies. In the event of a breach by the Company or by a Holder of any of their respective obligations under this Agreement,
each Holder or the Company, as the case may be, in addition to being entitled to exercise all rights granted by law and under
this Agreement, including recovery of damages, shall be entitled to specific performance of its rights under this Agreement. Each
of the Company and each Holder agrees that monetary damages would not provide adequate compensation for any losses incurred by
reason of a breach by it of any of the provisions of this Agreement and hereby further agrees that, in the event of any action
for specific performance in respect of such breach, it shall not assert or shall waive the defense that a remedy at law would
be adequate.

 

(b)
No Piggyback on Registrations; Prohibition on Filing Other Registration Statements. Neither the Company nor any of its
security holders (other than the Holders in such capacity pursuant hereto) may include securities of the Company in any Registration
Statements other than the Registrable Securities. The Company shall not file any other registration statements until all Registrable
Securities are registered pursuant to a Registration Statement that is declared effective by the Commission, provided that this
Section 6(b) shall not prohibit the Company from filing amendments to registration statements filed prior to the date of this
Agreement so long as no new securities are registered on any such existing registration statements.

 

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(c)
Discontinued Disposition. By its acquisition of Registrable Securities, each Holder agrees that, upon receipt of a notice
from the Company of the occurrence of any event of the kind described in Section 3(d)(iii) through (vi), such Holder will forthwith
discontinue disposition of such Registrable Securities under a Registration Statement until it is advised in writing (the “Advice”)
by the Company that the use of the applicable Prospectus (as it may have been supplemented or amended) may be resumed. The Company
will use its reasonable best efforts to ensure that the use of the Prospectus may be resumed as promptly as is practicable. The
Company agrees and acknowledges that any periods during which the Holder is required to discontinue the disposition of the Registrable
Securities hereunder shall be subject to the provisions of Section 2(d).

 

(d)
Piggyback Rights If at any time following the date of this Agreement that any Registrable Securities remain outstanding
(A) there is not one or more effective Registration Statements covering all of the Registrable Securities and (B) the Company
proposes for any reason to register any shares of Common Stock under the 1933 Act (other than pursuant to a registration statement
on Form S-4 or Form S-8 (or a similar or successor form)) with respect to an offering of Common Stock by the Company for its own
account or for the account of any of its stockholders, it shall at each such time promptly give written notice to the Holders
of its intention to do so (but in no event less than thirty (30) days before the anticipated filing date) and, to the extent permitted
under the SEC Guidance, include in such registration all Registrable Securities with respect to which the Company has received
written requests for inclusion therein within fifteen (15) days after receipt of the Company’s notice (a “Piggyback
Registration”). Such notice shall offer the holders of the Registrable Securities the opportunity to register such number
of shares of Registrable Securities as each such holder may request and shall indicate the intended method of distribution of
such Registrable Securities. Notwithstanding the foregoing, (A) if such registration involves an underwritten public offering,
the Holders must sell their Registrable Securities to, if applicable, the underwriter(s) at the same price and subject to the
same underwriting discounts and commissions that apply to the other securities sold in such offering (it being acknowledged that
the Company shall be responsible for other expenses as set forth in Section 4) and subject to the Holders entering into customary
underwriting documentation for selling stockholders in an underwritten public offering, and (B) if, at any time after giving written
notice of its intention to register any Registrable Securities pursuant to this Section 6(d) and prior to the effective date of
the registration statement filed in connection with such registration, the Company shall determine for any reason not to cause
such registration statement to become effective under the Securities Act, the Company shall deliver written notice to the Holders
and, thereupon, shall be relieved of its obligation to register any Registrable Securities in connection with such registration;
provided, however, that nothing contained in this Section 6(d) shall limit the Company’s liabilities and/or obligations
under this Agreement, including, without limitation, the obligation to pay liquidated damages under Section 2(d).

 

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(e)
Amendments and Waivers. The provisions of this Agreement, including the provisions of this sentence, may not be amended,
modified or supplemented, and waivers or consents to departures from the provisions hereof may not be given, unless the same shall
be in writing and signed by the Company and the Required Purchasers. If a Registration Statement does not register all of the
Registrable Securities pursuant to a waiver or amendment done in compliance with the previous sentence, then the number of Registrable
Securities to be registered for each Holder shall be reduced pro rata among all Holders and each Holder shall have the right to
designate which of its Registrable Securities shall be omitted from such Registration Statement. Notwithstanding the foregoing,
a waiver or consent to depart from the provisions hereof with respect to a matter that relates exclusively to the rights of a
Holder or some Holders and that does not directly or indirectly affect the rights of other Holders may be given only by such Holder
or Holders of all of the Registrable Securities to which such waiver or consent relates; provided, however, that
the provisions of this sentence may not be amended, modified, or supplemented except in accordance with the provisions of the
first sentence of this Section 6(d). No consideration shall be offered or paid to any Person to amend or consent to a waiver or
modification of any provision of this Agreement unless the same consideration also is offered to all of the parties to this Agreement.

 

(f)
Notices. Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall
be delivered as set forth in the Purchase Agreement.

 

(g)
Successors and Assigns. This Agreement shall inure to the benefit of and be binding upon the successors and permitted assigns
of each of the parties and shall inure to the benefit of each Holder. The Company may not assign (except by merger) its rights
or obligations hereunder without the prior written consent of all of the Holders of the then outstanding Registrable Securities.
Each Holder may assign their respective rights hereunder so long as such assignment complies with the Purchase Agreement and the
applicable securities laws.

 

(h)
No Inconsistent Agreements. Neither the Company nor any of its Subsidiaries has entered, as of the date hereof, nor shall
the Company or any of its Subsidiaries, on or after the date of this Agreement, enter into any agreement with respect to its securities,
that would have the effect of impairing the rights granted to the Holders in this Agreement or otherwise conflicts with the provisions
hereof. Except as set forth on Schedule 3.1(w) of the Purchase Agreement, neither the Company nor any of its Subsidiaries
has previously entered into any agreement granting any registration rights with respect to any of its securities to any Person
that have not been satisfied in full.

 

    17

     

    

 

(i)
Execution and Counterparts. This Agreement may be executed in two or more counterparts, all of which when taken together
shall be considered one and the same agreement and shall become effective when counterparts have been signed by each party and
delivered to the other party, it being understood that both parties need not sign the same counterpart. In the event that any
signature is delivered by facsimile transmission or by e-mail delivery of a “.pdf” format data file, such signature
shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed) with the same
force and effect as if such facsimile or “.pdf” signature page were an original thereof.

 

(j)
Governing Law. All questions concerning the construction, validity, enforcement and interpretation of this Agreement shall
be determined in accordance with the provisions of the Purchase Agreement.

 

(k)
Cumulative Remedies. The remedies provided herein are cumulative and not exclusive of any other remedies provided by law.

 

(l)
Severability. If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction
to be invalid, illegal, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein
shall remain in full force and effect and shall in no way be affected, impaired or invalidated, and the parties hereto shall use
their commercially reasonable efforts to find and employ an alternative means to achieve the same or substantially the same result
as that contemplated by such term, provision, covenant or restriction. It is hereby stipulated and declared to be the intention
of the parties that they would have executed the remaining terms, provisions, covenants and restrictions without including any
of such that may be hereafter declared invalid, illegal, void or unenforceable.

 

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

 

(n)
Independent Nature of Holders’ Obligations and Rights. The obligations of each Holder hereunder are several and not
joint with the obligations of any other Holder hereunder, and no Holder shall be responsible in any way for the performance of
the obligations of any other Holder hereunder. Nothing contained herein or in any other agreement or document delivered at any
closing, and no action taken by any Holder pursuant hereto or thereto, shall be deemed to constitute the Holders as a partnership,
an association, a joint venture or any other kind of group or entity, or create a presumption that the Holders are in any way
acting in concert or as a group or entity with respect to such obligations or the transactions contemplated by this Agreement
or any other matters, and the Company acknowledges that the Holders are not acting in concert or as a group, and the Company shall
not assert any such claim, with respect to such obligations or transactions. Each Holder shall be entitled to protect and enforce
its rights, including without limitation the rights arising out of this Agreement, and it shall not be necessary for any other
Holder to be joined as an additional party in any proceeding for such purpose. The use of a single agreement with respect to the
obligations of the Company contained was solely in the control of the Company, not the action or decision of any Holder, and was
done solely for the convenience of the Company and not because it was required or requested to do so by any Holder. It is expressly
understood and agreed that each provision contained in this Agreement is between the Company and a Holder, solely, and not between
the Company and the Holders collectively and not between and among Holders.

 

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

 

(Signature
Pages Follow)

 

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IN
WITNESS WHEREOF, the parties have executed this Registration Rights Agreement as of the date first written above.

 

	 	neonode inc.
	 	 	 
	 	By:	 
	 	 	 Name:
	 	 	 Title:

  

[SIGNATURE
PAGE OF HOLDERS FOLLOWS]

 

     

     

    

 

[SIGNATURE
PAGE OF HOLDERS TO neon RRA]

 

Name
of Holder: __________________________

 

Signature
of Authorized Signatory of Holder: __________________________

 

Name
of Authorized Signatory: _________________________

 

Title
of Authorized Signatory: __________________________

  

[SIGNATURE
PAGES CONTINUE]Sphere 3D Corporation: Exhibit 10.1 - Filed by newsfilecorp.com

    

    Exhibit 10.1

    THIS SHARE PURCHASE AGREEMENT made effective as of the 3rd day of August, 2020.

    B E T W E E N:

    DALE ALLAN PETERS, an individual resident in the Turks & Caicos Islands,

    (hereinafter called the "Vendor")

    OF THE FIRST PART;

    - and -

    SPHERE 3D CORP., a corporation existing under the laws of the Province of Ontario,

    (hereinafter called the "Purchaser")

    OF THE SECOND PART.

    WHEREAS The Vendor is the registered and beneficial owner of 100 common shares ("Purchased Shares") in the capital of 101250 Investments Ltd., a company existing under the laws of the Turks & Caicos Islands (the "Corporation");

    AND WHEREAS the Vendor wishes to sell to the Purchaser and the Purchaser wishes to purchase from the Vendor the Purchased Shares, upon the terms and conditions hereinafter set out.

    NOW THEREFORE THIS AGREEMENT WITNESSETH that in consideration of the sum of One Dollar ($1.00) and other good and valuable consideration now paid by each of the Parties (as defined below) hereto to the other (the receipt and sufficiency of which is hereby acknowledged), the Parties hereto covenant and agree as follows:

    ARTICLE 1 -  INTERPRETATION

    1.1 Definitions.  In this Agreement unless there is something in the subject matter or context inconsistent therewith, the following terms and expressions will have the following meanings:

    (a)  "Agreement" means this Share Purchase Agreement and all instruments supplementing or amending or confirming this Agreement and references to "Article" or "Section" mean and refer to the specified Article or Section of this Agreement;

    (b) "Books and Records" means all books and records of the Corporation in respect to its customer, supplier and business operations;

    (c) "Closing" means the consummation of the transactions contemplated herein.

    (d) "Closing Date" shall have the meaning given in Section 2.9 of this Agreement;

    (e) "Corporation" shall have the meaning given in the recitals above;

    

    (f) "Damages" shall have the meaning given in Section 7.2 of this Agreement;

    (g) "Direct Claim" shall have the meaning given in Section 7.3(c) of this Agreement;

    (h) "Drop Dead Date" shall have the meaning given in Section 8.2 of this Agreement;

    (i) "Financial Statements" shall have the meaning given in Section 3.2(g) of this Agreement;

    (j) "GAAP" means accounting standards for private enterprises applied on a consistent basis and which are in accordance with the recommendations made from time to time by the Chartered Professional Accountants of Turks & Caicos Islands on the date on which such accounting standards for private enterprises are applied;

    (k) "Governmental Authority" means any domestic or foreign governmental or regulatory agency, authority, bureau, commission, department, official or similar body or instrumentality thereof, or any governmental court, arbitral tribunal or other body administering alternative dispute resolution;

    (l) "Holdback Shares" shall have the meaning given in Section 2.6 of this Agreement;

    (m)  "Joint Venture Agreement" shall have the meaning given in Section 3.2(k)(i) of this Agreement;

    (n) "Material Adverse Effect" means a material adverse effect on the business, operations, performance, properties, assets, or condition (financial or otherwise) of the Corporation, which could reasonably be considered material having regard to the Corporation;

    (o) "Parties" means the Vendor and the Purchaser and "Party" means any one of them;

    (p) "Payment Shares" shall have the meaning given in Section 2.4 of this Agreement; 

    (q) "Resale Restricted Period" shall have the meaning given in Section 2.5 of this Agreement; 

    (r) "Person" means any individual, partnership, limited partnership, corporation, joint venture, association, joint stock company, trust, unincorporated organization or a government or an agency thereof;

    (s) "Purchase Price" shall have the meaning given in Section 2.3 of this Agreement;

    (t) "Purchased Shares" shall have the meaning given in the recitals above;

    (u) "Sphere 3D Closing Stock Price" shall have the meaning given in Section 2.3 of this Agreement;

    (v) "Supplier Agreement" shall have the meaning given in Section 3.2(k)(ii) of this Agreement;

    (w) "Survival Period" shall have the meaning given in Section 7.1 of this Agreement; and

    
        2

    

    

    (x) "Third-Party Claim" means any claim, demand, action, suit or proceeding made or brought by any Person who or which is not a party to this Agreement.

    1.2 Currency.  Unless otherwise indicated, all dollar amounts referred to in this Agreement are in lawful money of United States.

    1.3 Choice of Law and Attornment.  This Agreement shall be governed by and construed in accordance with the laws of the Province of Ontario and the federal laws of Canada applicable therein.  The parties agree that the courts based in the City of Toronto in the Province of Ontario will have exclusive jurisdiction to determine all disputes and claims arising between the parties. 

    1.4 Interpretation Not Affected by Headings or Party Drafting.  The division of this Agreement into articles, sections, paragraphs, subsections and clauses and the insertion of headings are for convenience of reference only and shall not affect the construction or interpretation of this Agreement.  The terms "this Agreement", "hereof", "herein", "hereunder" and similar expressions refer to this Agreement and not to any particular article, section, paragraph, clause or other portion hereof and include any agreement or instrument supplementary or ancillary hereto. 

    1.5 Number and Gender.  In this Agreement, unless there is something in the subject matter or context inconsistent therewith:

    (a) words in the singular number include the plural and such words shall be construed as if the plural had been used,

    (b) words in the plural include the singular and such words shall be construed as if the singular had been used, and

    (c) words importing the use of any gender shall include all genders where the context or Party referred to so requires, and the rest of the sentence shall be construed as if the necessary grammatical and terminological changes had been made.

    ARTICLE 2 -  PURCHASE AND SALE OF THE PURCHASED SHARES

    2.1 Sale of Purchased Shares.  The Vendor hereby sells, assigns and transfers to the Purchaser and the Purchaser hereby purchases from the Vendor, the Purchased Shares.

    2.2 Discharge of Interests, etc.  The Vendor hereby remises, releases and forever discharges, in favour of the Purchaser, all right, title and interest of that the Vendor has in or to the Purchased Shares and, for greater certainty, the Vendor hereby specifically and irrevocably agrees that the Purchaser shall be entitled to the benefit of the Purchased Shares whether the share certificate(s) in respect thereof exist and whether such certificate is endorsed for transfer.

    2.3 Purchase Price.  The Vendor and the Purchaser hereby agree that the purchase price (the "Purchase Price") for the Purchased Shares is One Million Five Hundred and Sixty Thousand United Stated Dollars (US$1,560,000) in aggregate or US$3.25 per share (the "Sphere 3D Closing Stock Price"), being the closing market price of common stock of Sphere 3D Corp. preceding the date of execution of this Agreement as quoted on the Nasdaq.

    2.4 Payment of Purchase Price.  On the Closing Date and following the execution of this Agreement by all of the Parties hereto, the Purchaser shall pay and satisfy, or cause to be paid and satisfied, the Purchase Price by delivery of 480,000 common shares of the Purchaser (the "Payment Shares") duly registered in the name of the Vendor, or as otherwise so directed by the Vendor.

    
        3

    

    

    2.5 Resale Restrictions.  All such Payment Shares shall contain an appropriate legend in accordance with the provisions of the Securities Act (Ontario) restricting the resale of the Payment Shares for a period of four (4) months plus one (1) day from the Closing Date, and any additional restrictions as may be required per applicable United States securities laws or otherwise (collectively, the "Resale Restricted Period").  In addition to such Resale Restricted Period or to the extent that any Resale Restricted Period is not applicable, Purchaser agrees that it will not convey or otherwise transfer ownership of any of the Payment Shares to any Person for the six (6) month and one day anniversary of the Closing Date. 

    2.6 Holdback Shares.  At the Closing, the Purchaser shall holdback and retain 96,000 of the Payment Shares to be held in trust for Vendor and to be paid and transferred to Vendor subject to any required adjustment pursuant to and in accordance with Section 2.7 hereof (the "Holdback Shares").

    2.7 Adjustment and Payment of the Holdback Shares.  Purchaser shall pay the Holdback Shares to Vendor without interest, by transfer no later than ten (10) Business Days following the six (6) month anniversary of the Closing Date, less the aggregate amount (calculated based on the Sphere 3D Closing Stock Price) equal to the sum of (i) any pending claims for Damages by Purchaser against Vendor pursuant to the terms of and procedures set forth in Article VII and for which notice of such claim for Damages has been received by Vendor, and (ii) any Damages finally determined to be unpaid but due and payable to Purchaser from Vendor under Article VII.

    2.8 Closing.  The Closing shall take place at the offices of Meretsky Law Firm, 121 King Street West, Suite 2150, Toronto, Ontario M5H 3T9 at 10:00 a.m. (Toronto Time) on the Closing Date, or such other date, time and location as may be agreed upon by the Parties.  By agreement of the Parties, the Closing may take place by electronic and facsimile exchange of documents.

    2.9 Closing Date.  Closing of the purchase and sale transaction described in this Agreement shall close contemporaneously with the delivery of the Purchased Shares to the Vendor (the "Closing Date").

    ARTICLE 3 -  REPRESENTATIONS AND WARRANTIES BY THE VENDOR

    3.1 Representations and Warranties Relating to the Vendor.  The Vendor hereby represents and warrants to the Purchaser as follows, and confirms that the Purchaser is relying upon the accuracy of each such representation and warranty in connection with the completion of the transactions contemplated in this Agreement:

    (a) Capacity and Execution.  The Vendor has all necessary capacity to enter into this Agreement and to carry out the transactions contemplated herein.  The Agreement has been duly executed by the Vendor.

    (b) Governmental Authorization.    The execution, delivery and performance by the Vendor of this Agreement does not require any consent, approval, order, authorization or action by or in respect of, or filing with, any Governmental Authority.

    (c) Ownership of Purchased Shares.  The Purchased Shares are legally and beneficially owned by the Vendor in the amounts set forth in Schedule "C" to this Agreement and the Vendor has the exclusive right and full power and absolute authority to sell, assign and transfer the Purchased Shares and owns the Purchased Shares with good and marketable title, free and clear of all mortgages, liens, charges, pledges, claims, security interests and other encumbrances whatsoever, subject to and as set out in Schedule "C". The Purchased Shares represents all of the securities of the Corporation that are registered or owned, directly or indirectly, by the Vendor.

    
        4

    

    

    (d) No Other Purchase Agreements. No person, firm or corporation has any agreement, option, understanding or commitment, or any right or privilege (whether by law, pre-emptive or contractual) capable of becoming an agreement, option or commitment for the acquisition from the Vendor of the Purchased Shares.

    (e) Bankruptcy Status. The Vendor is not insolvent, has not committed an act of bankruptcy, has not proposed a compromise or arrangement to its creditors generally, has not had any petition or a receiving order in bankruptcy filed against him, has not taken any proceeding with respect to a compromise or arrangement, has not taken any proceeding to have himself declared bankrupt, has not taken any proceeding to have a receiver appointed of any part of his assets, has not had any encumbrancer take possession of any of its property, and has had any execution or distress become enforceable or become levied upon any of its property.

    (f) Legal Proceedings.  No suits, actions or legal proceedings of any sort are pending or are threatened which would restrain or otherwise prevent, in any manner, the Vendor from effectually and legally transferring the Purchased Shares to the Purchaser free and clear of any and all claims, liens, security interests and encumbrances pursuant to this Agreement, nor are there any suits, actions or other legal proceedings pending or threatened, the effect of which would be to make the Purchaser or the Vendor liable for damages, to divest title to the Purchased Shares, or to cause a lien to attach to the Purchased Shares, and the Vendor has no knowledge of any claims which could give rise to such a suit, action or legal proceeding.

    (g) Family Law Matters. Without limiting the generality of any other representation contained herein, there are no outstanding claims made or being asserted against any Person under any family law legislation of any province which would in any way prevent the transfer of the Purchased Shares to the Purchaser or encumber or interfere with the Purchaser receiving full and absolute title to the Purchased Shares free and clear of any claim of any kind made by any Person pursuant to any such family law legislation.

    3.2 Representations and Warranties Relating to the Corporation.  The Vendor hereby represents and warrants to the Purchaser as follows, and confirms that the Purchaser is relying upon the accuracy of each such representations and warranties in connection with the completion of the transaction contemplated in this Agreement:

    (a) Subsisting Corporation and Qualification.  The Corporation has been duly incorporated and is validly subsisting and in good standing as a corporation under the laws of the Turks & Caicos Islands and is duly qualified to carry on its business in each jurisdiction in which the nature of its business requires qualification.  The Corporation has no subsidiaries.

    (b) Capitalization.  The authorized equity capital of the Corporation consists of 5,000 common shares of which 100 common shares are issued and outstanding as of the date of this Agreement.  All of the issued and outstanding shares in the capital of the Corporation have been duly authorized and validly issued as fully paid and non-assessable shares. There are no options, warrants, conversion privileges or other rights, agreements, arrangements or commitments (pre-emptive, contractual or otherwise) obligating the Corporation to issue or sell any of its shares or securities or obligations of any kind convertible into or exchangeable for shares or other securities of the Corporation. There are no dividends which have accrued or been declared but are unpaid on any of the Corporation's shares or other equity interests of the Corporation.  The Vendor confirms that it is the registered and beneficial owner of the Purchased Shares as set forth in Riders, which were issued in compliance with applicable laws and were not issued in violation of any agreement, arrangement or commitment to which Vendor is a party or is subject to or in violation of any pre-emptive or similar rights of any Person. 

    
        5

    

    

    (c) Authority.  All necessary corporate approvals will have been passed on the Closing Date to transfer the Purchased Shares from the Vendor to the Purchaser and to consummate the transactions set forth in this Agreement.

    (d) Title to Assets.  The Corporation has good title to, or the right to use, its assets, free and clear of all liens and encumbrances.

    (e) Compliance with Laws.  The Corporation is not in default under any applicable law, except where default thereunder, individually or in the aggregate, could not reasonably be expected to have a Material Adverse Effect.

    (f) No Conflicts or Consents.  The execution, delivery and performance of this Agreement by the Corporation will not violate, or conflict with, or result in a material breach of any provision of, or constitute a default under, or result in the acceleration of, or create in any party the right to accelerate, terminate or cancel, any contract or agreement to which the Corporation is a party.

    (g) Financial Statements. 

    (i) The Vendor was incorporated on November 7, 2019 and there is limited financial statements available.

    (ii) All accounts receivable recorded on the financial accounting system are valid, due and payable; no right of set-off or counterclaim exists with respect to those accounts receivable; and subject to reserves determined as hereinafter described, all those accounts receivable are fully collectible. The reserves taken for doubtful or bad accounts as shown on the Financial Statements and in the Books and Records of the Corporation have been determined on a basis consistent with past practice of the Corporation and consistent with the accounting procedures used by the Corporation in previous fiscal periods. There is no circumstance of which the Corporation is aware that would indicate that such reserves are not adequate.

    (h) No Liabilities or Indebtedness.  The Corporation does not have any liabilities, indebtedness or other commitments that may give rise to any liabilities, either contingent, accrued or otherwise as of the date hereof, except trade payables and deferred revenue, as reflected in the Financial Statements and incurred subsequent thereto in the ordinary course of business.

    (i)   Intellectual Property.  The Corporation owns, directly and exclusively, all right, title and interest in and to all intellectual property used in its business with a good and marketable title, free and clear of all liens, encumbrances or any other rights of others, save and except for third party software.

    (j) Good Title to Corporation Assets. The Corporation owns all of the Corporation's assets with good and marketable title, free and clear of all mortgages, liens, charges, pledges, claims, security interests and other encumbrances whatsoever, and no Person has any agreement, option, understanding or commitment, or any right or privilege (whether by law, pre-emptive or contractual) capable of becoming an agreement, option or commitment for the acquisition from the Corporation of any of the Corporation's assets.

    
        6

    

    

    (k) Material Contacts

    (i) A true and complete original or copy of a Strategic Cooperation Agreement dated May 26, 2020 with Rainmaker Worldwide Inc. and any amendments thereto (the "Joint Venture Agreement") have been delivered to Purchaser, a copy of which is attached hereto as Schedule "A".  The Joint Venture Agreement is (1)  a valid and binding agreement of the Corporation and, to the knowledge of Vendor, each other party thereto, enforceable in accordance with its respective terms, except to the extent that their enforceability may be subject to applicable bankruptcy, insolvency, reorganization, moratorium and similar laws affecting the enforcement of creditors' rights generally and by general equitable principles; (2) in full force and effect and no material default or breach exists in respect thereof on the part of the Corporation, and to the knowledge of the Vendor, any of the parties thereto and no event has occurred which, after the giving of notice or the lapse of time or both, would constitute such a default or breach; (3) has not been cancelled, terminated or otherwise materially altered, or to best knowledge of the Vendor, there is no reason to believe that there will be any such change as a result of the transactions contemplated by this Agreement, (4) does not contain any penalty provisions, refund rights or similar provisions; and (5) is assignable by the Corporation in the ordinary course of business to the Purchaser; and

    (ii) A true and complete original or copy of the Letter of Intent with Mountbatten Holdings Ltd. dated May 17, 2020 and any amendments thereto (the "Supplier Agreement") have been delivered to Purchaser, a copy of which is attached hereto as Schedule "B".  The Joint Venture Agreement is (1)  a valid and binding agreements of the Corporation and, to the knowledge of Vendor, each other party thereto, enforceable in accordance with its respective terms, except to the extent that their enforceability may be subject to applicable bankruptcy, insolvency, reorganization, moratorium and similar laws affecting the enforcement of creditors' rights generally and by general equitable principles; (2) in full force and effect and no material default or breach exists in respect thereof on the part of the Corporation, and to the knowledge of the Vendor, any of the parties thereto and no event has occurred which, after the giving of notice or the lapse of time or both, would constitute such a default or breach; (3) has not been cancelled, terminated or otherwise materially altered, or to best knowledge of the Vendor, there is no reason to believe that there will be any such change as a result of the transactions contemplated by this Agreement, (4) does not contain any penalty provisions, refund rights or similar provisions; and (5) is assignable by the Corporation in the ordinary course of business to the Purchaser.

    (l) Absence of Certain Changes or Events.  Since December 31, 2019, there has not been any Material Adverse Change in the condition of the Corporation and no such Material Adverse Change is pending or, to the knowledge of the Vendor, threatened. Without limiting the generality of the foregoing, the Corporation has not:

    (i) made any material change in the operations or in the manner of conducting its business;

    (ii) acquired, sold, leased or otherwise disposed of or transferred any assets other than in the ordinary course of its business (excluding any lease of real property);

    (iii) entered into any transaction of any kind other than in the ordinary course of its business, including without limitation any loans to third parties or investments (direct or indirect) in non-business related assets;

    
        7

    

    

    (iv) suffered any event, violation or other matter that could reasonably be expected to have a Material Adverse Effect or suffered any material casualty loss;

    (v) sold, transferred or leased any property or assets to, or entered into or amended any transactions, agreements arrangements with any of the shareholders, directors, officers or employees of the Corporation, except for the reimbursement of business expenses in the ordinary course of business consistent with past practice;

    (vi) made or proposed any change in the accounting or tax principles, practices or methods in respect of the business of the Corporation, except for such changes which are required by GAAP or any applicable laws;

    (m) Taxes.  The Corporation has duly and timely filed its tax returns with the appropriate governmental authority and has duly, completely and correctly reported all income and all other amounts and information required to be reported thereon. No such tax returns have been amended.  The Corporation has paid or made adequate provision for the payment of all taxes which are due and payable by it, including interest and penalties, or has accrued such amounts in its financial statements for the payment of such taxes except for charges, fees or dues which are not material in amount, not delinquent or if delinquent are being contested in good faith, and in respect of which non-payment would not, individually or in the aggregate, have or reasonably be expected to have a Material Adverse Effect.

    (n) Employees. 

    (i) all liabilities in respect of employees of the Corporation (including vacation pay or vacation credits, which have been accrued on the books and records of the Corporation) have or shall have been paid to the Closing Date, including premium contributions, remittance and assessments for employment insurance, medical services plan premiums, person plans, income tax, workers' compensation and any other employment related legislation, accrued wages, taxes, salaries, commissions and employee benefit plan payments;

    (ii) all bonuses, commissions and other emoluments relating to the business carried on by the Corporation and its employees are accurately reflected in the Financial Statements and/or have been accrued in the Books and Records;

    (iii) no employee of the Corporation shall be entitled to receive on termination (for any reason or in any manner) an amount which exceeds the statutory minimum under the provisions of existing employment law in Turks & Caicos Islands and any similar legislation to which employees of the Corporation may be subject;

    (iv) no employee of the Corporation is on a leave of absence, disability or layoff status.

    (o) Absence of Litigation.  There are no actions, suits or proceedings pending or, to its knowledge, threatened against or affecting the Corporation which could reasonably be expected to have a Material Adverse Effect and there is not presently outstanding against the Corporation any judgment, decree, injunction, rule or order of any court, governmental department, commission, agency, instrumentality or arbitrator. 

    
        8

    

    

    ARTICLE 4 -  COVENANTS OF THE VENDOR

    4.1 The Vendor hereby covenants and agrees that, upon the execution of this Agreement, it will cause to be done the following:

    (a) cause all necessary steps and proceedings to be taken to permit the Purchased Shares to be duly and regularly transferred to the Purchaser;

    (b) to deliver certificate(s) representing the Purchased Shares duly endorsed for transfer to the Purchaser;

    (c) deliver all consents, if any, required pursuant to this Agreement (including, without limitation, the Joint Venture Agreement and the Supplier Agreement) which require execution by the Corporation; and

    (d) deliver the minute book of the Corporation.

    ARTICLE 5 -  REPRESENTATIONS AND WARRANTIES OF THE PURCHASER

    5.1 The Purchaser hereby represents and warrants to the Vendor as follows and confirms that the Vendor is relying upon the accuracy of each such representations and warranties in connection with the completion of the transactions contemplated in this Agreement:

    (a) Accredited Investor.  The Purchaser is purchasing as principal, and is an "accredited investor" within the meaning of subsection (m) of that definition as set out at Section 1.1 of National Instrument 45-106 of the Canadian Securities Administrators, being a person, other than an individual or investment fund, that has net assets of at least $5,000,000, as shown on its most recently prepared financial statements, and that was not formed for the sole purpose of making a representation to this effect in order to qualify as an accredited investor.

    (b) Canadian Status.  The Purchaser is not "non-Canadian" within the meaning of the Investment Canada Act.

    (c) Legal Proceedings.  No suits, actions or legal proceedings of any sort are pending or are threatened which would restrain or otherwise prevent, in any manner, the Purchaser from effectually and legally purchasing the Purchased Shares from the Vendor pursuant to this Agreement, nor are there any suits, actions or other legal proceedings pending or threatened, the effect of which would be to make the Purchaser or the Vendor or any of them liable for damages, and the Purchaser has no knowledge of any claims which could give rise to such a suit, action or legal proceeding.

    (d) Residency. The Purchaser is not a non-resident of Canada within the meaning of the Income Tax Act (Canada).

    ARTICLE 6 -  COVENANTS OF THE PURCHASER

    6.1 The Purchaser hereby covenants that, upon the execution of this Agreement by all of the parties hereto, the Purchaser will:

    (a) execute all assignments and documents delivered pursuant to this Agreement which require execution by the Purchaser;

    
        9

    

    

    (b) use all reasonable commercial efforts to satisfy the Conditions of the Purchaser set forth in Section 8.1; and

    (c) deliver to the Vendor the Payment Shares in accordance with the provisions of Section 2.4, save and except for the Holdback Shares which will be delivered in accordance with the provisions of Section 2.6.

    ARTICLE 7 -  SURVIVAL AND INDEMNIFICATION

    7.1 Survival.  Notwithstanding the right of the Purchaser to fully investigate the affairs of the Corporation or any other Party and notwithstanding any knowledge of facts determined or determinable pursuant to such investigation or right of investigation, the Vendor and the Purchaser shall have the right to rely fully upon the representations, warranties, covenants and agreements of the other Party hereto contained in this Agreement.  Subject to the limitations hereinafter set forth, the representations and warranties of the Parties contained in this Agreement shall survive the closing of the transaction as follows:

    (a) the representations and warranties set out in Section 3.1 (Representations and Warranties Relating to the Vendor) shall continue in full force and effect from and after the said closing of the transaction, indefinitely.

    (b) the representations and warranties set out in Section 3.2 (Representations and Warranties Relating to the Corporation) shall continue in full force and effect for a period of two years after the Closing Date, provided that the representations and warranties set out in Section 3.2(m) (Tax Information) shall survive closing of the transaction and shall continue in full force and effect until, but not beyond 30 days following the expiration of the period, if any, during which an assessment, reassessment or other form of recognized document assessing liability for tax, interest or penalties under applicable tax legislation in respect of any taxation year to which such representations and warranties extend could be issued under such tax legislation to the Corporation provided the Corporation did not file any waiver or other document extending such period.

    Notwithstanding the foregoing, a claim for any breach of any of the representations and warranties contained in this Agreement or in any agreement, instrument, certificate or other document executed or delivered pursuant hereto involving fraud or fraudulent misrepresentation may be made at any time following the Closing Date, subject only to applicable limitation periods imposed by law.

    The above periods are collectively referred to as the "Survival Period".

    7.2 Indemnity of the Vendor.  During the Survival Period (or provided notice of a claim for damages was provided prior the expiration of the Survival Period), the Vendor hereby agrees to indemnify the Purchaser against and to protect, save and keep harmless the Purchaser and its current and former directors, officers, agents and employees from and to assume liability for, payment of all any and all claims, demands, debts, suits, actions, obligations, proceedings, losses, damages, injuries, liabilities, deficiencies, costs and expenses (including without limitation, all reasonable legal and other professional fees and disbursements, interest, penalties and amounts paid in settlement) (collectively, "Damages") that may be incurred or suffered by the Purchaser as a consequence of or in connection with: (i) any inaccuracy or breach of any representation or warranty contained in Article 3; and (ii) any breach of or failure by Vendor to comply with or perform any agreement or covenant contained in this Agreement.  Notwithstanding the foregoing, the maximum collective liability of the Vendor herein shall not exceed the amount of the Purchase Price.

    
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    7.3 Procedures.

    (a) If the Purchaser receives notice of the assertion or commencement of any Third-Party Claim against the Corporation for which the Vendor is obligated to provide indemnification under this Agreement, the Purchaser will give the Vendor reasonably prompt written notice thereof, but in any event not later than ten (10) days after receipt of such written notice of such Third-Party Claim.  Such notice by the Purchaser will describe the Third-Party Claim in reasonable detail, will include copies of all available material, written evidence thereof and will indicate the estimated amount, if reasonably practicable, of the Damages that has been or may be sustained by the Vendor.  The Vendor will have the right to participate in, or, by giving written notice to the Purchaser, to assume, the defense of any Third-Party Claim at the Vendor's own expense and by the Vendor's own counsel (reasonably satisfactory to the Purchaser), and the Vendor will cooperate in good faith in such defense.

    (b) If, within ten (10) days after giving notice of a Third-Party Claim to the Vendor pursuant to Section 7.3(a), the Purchaser receives written notice from the Vendor that the Vendor has elected to assume the defense of such Third-Party Claim as provided in the last sentence of Section 7.3(a), the Vendor will not be liable for any legal expenses subsequently incurred by the Purchaser in connection with the defense thereof; provided, however, that if the Vendor fails to take reasonable steps necessary to defend diligently such Third-Party Claim within ten (10) days after receiving written notice from the Purchaser that the Purchaser reasonably believes the Vendor has failed to take such steps or if the Vendor has not undertaken fully to indemnify the Purchaser in respect of all Damages relating to the matter, the Purchaser may assume its own defense and the Vendor will be liable for all reasonable costs and expenses paid or incurred in connection therewith.  Without the prior written consent of the Purchaser, which consent shall not be unreasonably withheld or delayed, the Vendor will not enter into any settlement of any Third-Party Claim which would lead to liability or create any financial or other obligation on the part of the Purchaser for which the Purchaser is not entitled to indemnification hereunder, or which provides for injunctive or other non-monetary relief applicable to the Purchaser, or does not include an unconditional release of the Purchaser.  If a firm offer is made to settle a Third-Party Claim without leading to liability or the creation of a financial or other obligation on the part of the Purchaser for which the Purchaser is not entitled to indemnification hereunder and the Vendor desires to accept and agree to such offer, the Vendor will give written notice to the Purchaser to that effect.  If the Purchaser fails to consent to such firm offer within five (5) days after its receipt of such notice, the Purchaser may continue to contest or defend such Third-Party Claim and, in such event, the maximum liability of the Vendor to the Purchaser as to such Third-Party Claim will not exceed the amount of such settlement offer.  The Purchaser will provide the Vendor with reasonable access during normal business hours to books, records and employees (if still in their employ) of the Purchaser necessary in connection with the Vendor's defense of any Third-Party Claim which is the subject of a claim for indemnification by the Purchaser hereunder.

    (c) Any claim by the Purchaser against the Vendor on account of Damages which does not result from a Third-Party Claim (a "Direct Claim") will be asserted by giving the Vendor reasonably prompt written notice thereof, but in any event not later than ten (10) days after the Purchaser becomes aware of such Direct Claim.  Such notice by the Purchaser will describe the Direct Claim in reasonable detail, will include copies of all available material, written evidence thereof and will indicate the estimated amount, if reasonably practicable, of Damages that has been or may be sustained by the Purchaser.  The Vendor will have a period of thirty (30) days after receipt thereof within which to respond in writing to such Direct Claim.  If the Vendor does not respond in writing within the thirty (30) day period, the Vendor will be deemed to have rejected such Direct Claim and the Purchaser will be free to pursue remedies available to the Vendor on the terms and subject to the provisions of this Agreement.

    
        11

    

    

    (d) A failure to give timely notice or to include any specified information in any notice as provided in Section 7.3(a), 7.3(b) or 7.3(c) will not affect the rights or obligations of any party hereunder, except and only to the extent that, as a result of such failure, any party which was entitled to receive such notice was deprived of its right to recover any payment under its applicable insurance coverage or was otherwise materially prejudiced as a result of such failure.

    7.4 Treatment of Indemnification Payments. 

    (a) Any amount paid by Vendor under Section 7.2 will be treated as an adjustment to the Purchase Price.

    (b) Payment of any Damages by the Vendor to the Purchaser due and payable, as finally determined, under this Agreement shall first be applied as a reduction from the Holdback Shares, calculated based on an ascribed price equal to the Sphere 3D Closing Stock Price, and if there are no Holdback Shares remaining, the Vendor shall satisfy such Damages by way of certified cheque, wire transfer or other form of immediately available funds to the Purchaser.

    ARTICLE 8 -  CONDITIONS AND TERMINATION

    8.1 Conditions of the Purchaser.  The obligations of Purchaser to consummate the Closing are subject to the satisfaction (or waiver by Purchaser) of the following conditions:

    (a) Representations and Warranties.  Each of the representations and warranties of the Vendor and the Corporation set forth in this Agreement shall be true and correct in all material respects (except those qualified by materiality or material adverse effect, which shall be true and correct in all respects) as of the Closing Date.

    (b) No Injunction, etc.  No provision of any applicable law and no judgment, injunction, order or decree of any Governmental Authority shall be in effect which shall prohibit the consummation of the Closing.

    (c) No Governmental Proceedings.  No action, suit or proceeding challenging this Agreement or the transactions contemplated hereby or thereby or seeking to prohibit, alter, prevent or materially delay the Closing or seeking material damages shall have been instituted or threatened by any Governmental Authority and be pending.

    (d) Regulatory Approval.  Receipt of all necessary regulatory approvals relating to the transaction of purchase and sale contemplated by this Agreement. In particular, Nasdaq shall have granted conditional and final approval in connection with or related to the transactions contemplated by this Agreement, including the issuance of the Payment Shares, on terms consistent with the transactions set forth herein. 

    (e) Due Diligence.  Purchaser shall have completed its due diligence investigation of the Corporation to Purchaser's reasonable satisfaction. 

    (f) Merger Agreement with Rainmaker Worldwide Inc.  Purchaser shall have entered into a definitive Merger Agreement ("Merger Agreement") with Rainmaker Worldwide Inc. ("Rainmaker"), a Nevada company and S3D Nevada Inc. ("S3D"), a wholly-owned subsidiary of the Corporation, whereby S3D Nevada will merge with Rainmaker on terms more particular set forth in the Merger Agreement. 

    8.2 Termination. This Agreement may be terminated at any time prior to the Closing:

    
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    (a) by the mutual written consent of Vendor and Purchaser;

    (b) by Purchaser by written notice to Vendor if: (i) Purchaser is not then in material breach of any provision of this Agreement and there has been a material breach, inaccuracy in or failure to perform any representation, warranty, covenant or agreement made by Vendor pursuant to this Agreement that would give rise to the failure of any of the conditions specified in Section 8.1 and such breach, inaccuracy or failure cannot be cured by Vendor by September 15, 2020 (the "Drop Dead Date"); or (ii) any of the conditions set forth in Section 8.1 shall not have been satisfied (or otherwise waived by the Purchaser) by the Drop Dead Date, unless such failure shall be due to the failure of Purchaser to perform or comply with any of the covenants, agreements or conditions hereof to be performed or complied with by it prior to the Closing;

    (c) by Seller by written notice to Purchaser if any of the conditions set forth in Section 8.1 shall not have been satisfied (or otherwise waived by the Vendor) by the Drop Dead Date, unless such failure shall be due to the failure of Vendor to perform or comply with any of the covenants, agreements or conditions hereof to be performed or complied with by it prior to the Closing; or 

    (d) by Purchaser or Vendor in the event that: (i) there shall be any law that makes consummation of the transactions contemplated by this Agreement illegal or otherwise prohibited; or (ii) any Governmental Authority shall have issued an order restraining or enjoining the transactions contemplated by this Agreement, and such order shall have become final and non-appealable.

    ARTICLE 9 -  GENERAL

    9.1 Notices.  All notices, requests, consents, claims, demands, waivers and other communications hereunder shall be in writing and shall be deemed to have been given (a) when delivered by hand; (b) when received (or refused) by the addressee if sent by a nationally recognized overnight courier (receipt requested); (c) on the date sent by facsimile or e-mail of a PDF document if sent during normal business hours of the recipient, and on the next Business Day if sent after normal business hours of the recipient; or (d) on the third day after the date mailed, by certified or registered mail, return receipt requested, postage prepaid. Unless hand-delivered, such communications must be sent to the respective parties at the following addresses (or at such other address for a party as may be specified in a notice given in accordance with this Section 9.1):

    If to the Vendor: 101250 Investments Ltd. 

    c/o O Meridian Trust Company Ltd.

    Le Vele Plaza, 2nd floor

    Grace Bay, Providenciales

    Turks & Caicos Islands

    Attention: Dale Allan Peters

    Facsimile: N/A

    Email: da

     with a copy to: Geordins LLP

     (which shall not PO Box 926

     constitute notice) Unit B201, Regent Village

    Grace Bay, Providenciales

    Turks & Caicos Islands

    Attention: George C. Missick, Esq.

    
        13

    

    

     Facsimile: N/A

     Email: gmissick@geordins.com

     If to Purchaser: Sphere 3D Corp.

    895 Don Mill Road

    Building 2, Suite 900

    Toronto, Ontario, M3C 1W3, Canada

    Attention:  Peter Tassiopoulos, Chief Executive Officer

    Facsimile: N/A

    Email:  Peter.Tassiopoulos@sphere3d.com

     with a copy to: Meretsky Law Firm

    (which shall not 121 King Street West, Suite 2150

    constitute notice) Toronto, Ontario M5H 3T9

    Attention:  Jason D. Meretsky

    Facsimile: (416) 943-0811

    Email: jason@meretsky.com

    9.2 Expenses.  Each Party shall be responsible for its own costs and expenses, including legal and accounting fees, relating to this Agreement and the transactions herein contemplated.

    9.3 Further Assurances.  Each Party hereto hereby covenants and agrees that at any time and from time to time after the completion of the transactions contemplated herein, it will, upon the request of the other, do, execute, acknowledge and deliver or cause to be done, executed, acknowledged and delivered all such further acts, deeds, assignments, transfers, conveyances and assurances as may be reasonably required for the carrying out and performance of all the terms of this Agreement.

    9.4 Counterparts.  This Agreement may be executed in several counterparts, each of which so executed shall be deemed to be an original, and such counterparts together shall constitute but one and the same instrument. The delivery of an executed counterpart copy of this Agreement by facsimile or telecopy shall be deemed to be the equivalent of the delivery of an original executed copy thereof.

    9.5 Successors and Assigns.  This Agreement shall be binding upon and enure to the benefit of the Parties hereto and their respective heirs, executors, administrators, successors and permitted assigns.  Nothing herein, express or implied, is intended to confer upon any person, other than the Parties hereto and their respective heirs, executors, administrators, successors and assigns, any rights, remedies, obligations or liabilities under or by reason of this Agreement.

    9.6 Entire Agreement.  This Agreement constitutes the entire Agreement between the parties hereto with respect to the subject matter hereof and supersedes all prior agreements, representations, warranties, statements, promises, information, arrangements and understandings, whether oral or written, express or implied, with respect to the subject matter hereof. 

    9.7 Waiver.  Any Party hereto which is entitled to the benefits of this Agreement may, and has the right to, waive any term or condition hereof at any time; provided, however, that such waiver shall be evidenced by written instrument duly executed on behalf of such Party.

    9.8 Amendments.  No modification or amendment to this Agreement may be made unless agreed to by the parties hereto in writing.

    9.9 Completion of the Transactions.  The completion of the transactions contemplated herein shall take place contemporaneously with the execution of this Agreement.

    
        14

    

    

    9.10 Acknowledgement.  Each Party acknowledges that it has retained separate legal representation in connection with the execution of this Agreement and consummation of the transactions set forth herein.

    9.11 Time of Essence.  Time shall be of the essence of this Agreement and of every part hereof and no extension or variation of this Agreement shall operate as a waiver of this provision.

    
        15

    

    

    [Signature page to follow]

    IN WITNESS WHEREOF the parties hereto have duly executed this Agreement as of the day first written above.

    	/s/ Witness                                   	/s/ Dale Allan Peters                                                 
	Witness	Dale Allan Peters

     

    SPHERE 3D CORP.

     

    Per: /s/ Peter Tassiopoulos                                 
 Peter Tassiopoulos

    Chief Executive Officer

    
        16

    

    

    Schedule "A"

    Joint Venture Agreement

    
        17

    

    

    Schedule "B"

    Supplier Agreement

    
        18

    

    

    Schedule "C"

    Ownership of Purchased Shares 

    Dale Allan Peters, an individual resident in the Turks & Caicos Islands, is the registered owner of 100% of the outstanding capital of 101250 Investments Ltd., being 100 common shares.  These shares are beneficially owned as to: (i) 62.5 common shares by Dale Allan Peters directly, and (ii) 37.5 common shares are held by Dale Allan Peters, as bare trustee, for and in favour of Greenfield Investments Ltd.  ("Greenfield").

    Greenfield and Dale Allan Peters have entered into a Trustee Agreement dated June 12, 2020 (the "Trust Agreement"), pursuant to which Mr. Peters has agreed to act as bare trustee over all the shares of the Corporation owned beneficially by Greenfield.  A true and correct copy of the Trust Agreement is attached hereto and forms part of Schedule "C" which Trust Agreement has not been amended.

    Greenfield is aware and has consented to the transactions set out in this Agreement.  A true and correct copy of an authorizing unanimous resolution of the board of directors of Greenfield dated July 30, 2020 is attached hereto and forms part of Schedule "C", which resolution has not been amended.

    
         

    

    
        19

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