Document:

Exhibit 4.12

 

SECOND AMENDED AND RESTATED

EXCLUSIVE OPTION AGREEMENT

 

This SECOND AMENDED AND RESTATED EXCLUSIVE OPTION AGREEMENT (this “Agreement”) is entered into on March 20, 2020 by and among:

 

1.                          THE SHAREHOLDERS WHOSE NAMES ARE SET OUT IN APPENDIX I (each an “Existing Shareholder” and collectively the “Existing Shareholders”)

 

2.                          SHUNYUAN KAIHUA (BEIJING) TECHNOLOGY CO., LTD. (the “WFOE”)

 

Registered address: Unit 206-2, Level 2, Block 23, No. 8 Dong Bei Wang West Road, Haidian District, Beijing 
 Legal representative: Huang Wang

 

3.                          HUAMI (BEIJING) INFORMATION TECHNOLOGY CO., LTD. (the “Company”)

 

Registered address: Unit 206-1, Level 2, Block 23, No. 8 Dong Bei Wang West Road, Haidian District, Beijing 
 Legal representative: Huang Wang

 

(in this Agreement, each of the above individually being referred to as a “Party”, collectively the “Parties”.)

 

WHEREAS:

 

(1)               The original shareholders of the Company, including Huang Wang, Lu Yunfen, Fan Meihui, Fan Bin, Zhang Yi, Zhang Xiaojun, Liu De, Cao Lipin, Yue Bin and Lhasa Heye Investment Management Co., Ltd., the WFOE and the Company entered into an Amended and Restated Exclusive Option Agreement on November 3, 2017 (hereinafter referred to as the “Original Exclusive Option Agreement”). After the share transfer of the Company in 2020, Liu De, Cao Liping, Yue Bin and Lhasa Heye Investment Management Co., Ltd. are no longer registered shareholders of the Company. In order to reflect the above shareholding change, all Parties now agree to enter into this Agreement to amend and restate the Original Exclusive Option Agreement.

 

(2)               The Existing Shareholders are the registered shareholders of the Company, holding in aggregate all shares of the Company, and as at the date hereof, their respective contribution amount and shareholding percentage in the Company’s registered capital are set out in Appendix I hereof.

 

(3)               To the extent not in violation of the PRC laws, the Existing Shareholders are in desirous of transferring to the WFOE, and the WFOE is in desirous of accepting such transfers of, the respective shares held by them in the Company.

 

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(4)               To the extent not in violation of the PRC laws, the Company is in desirous of transferring to the WFOE, and the WFOE is in desirous of accepting such transfer of, the assets held by the Company.

 

(5)               In order to effect such transfer of shares or assets, the Existing Shareholders and the Company agree to grant the WFOE an exclusive and irrevocable share transfer option and an exclusive and irrevocable asset purchase option respectively, pursuant to which the Existing Shareholders or the Company shall, to the extent permitted by the PRC laws and at the request of the WFOE, transfer the Option Shares or the Company Assets (as defined below) to the WFOE and/or any other entity or individual designated by the WFOE in accordance with the terms of this Agreement.

 

(6)               The Existing Shareholders agree that the Company will grant the WFOE an Asset Purchase Option in accordance with this Agreement.

 

THEREFORE, upon consultations, the Parties hereby agree as follows:

 

ARTICLE 1
  DEFINITIONS

 

1.1                         Unless the context otherwise requires, in this Agreement, the following terms shall have the following meanings:

 

	
“PRC Laws”:
    	
  
    	
mean the laws, administrative regulations,   administrative rules, local decrees, judicial interpretations and regulatory   documents with binding effects of the PRC then in effect.
    
	
 
    	
 
    	
 
    
	
“Share Transfer Option”:
    	
  
    	
means the option to purchase the shares of the   Company granted by the Existing Shareholders to the WFOE in accordance with   the terms and conditions of this Agreement.
    
	
 
    	
 
    	
 
    
	
“Asset Purchase Option”:
    	
  
    	
means the option to purchase any of the Company   Assets granted by the Company to the WFOE in accordance with the terms and   conditions of this Agreement.
    
	
 
    	
 
    	
 
    
	
“Option Shares”:
    	
  
    	
mean, with respect to an Existing Shareholder,   all shares held by it in the Company’s Registered Capital (as defined below);   with respect to all of the Existing Shareholders, 100% shares of the Company.
    
	
 
    	
 
    	
 
    
	
“Company’s Registered Capital”:
    	
  
    	
means the registered capital of the Company   amounting to RMB 2,02,020 as at the date of this Agreement, or the increased   registered capital as a result of any capital increase in any form during the   effective term of this Agreement.
    

 

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“Transferred Shares”:
    	
  
    	
mean the shares of the Company that the WFOE is   entitled to require any of the Existing Shareholders to transfer to it or the   entity or individual designated by it pursuant to Article 3 of this   Agreement in exercising the Share Transfer Option, and the number of such   Transferred Shares may be all or part of the Option Shares to be determined   at the sole discretion of the WFOE in accordance with the PRC Laws then in   effect and taking into account its own commercial considerations.
    
	
 
    	
 
    	
 
    
	
“Transferred Assets”:
    	
  
    	
mean the Company Assets that the WFOE is entitled   to require the Company to transfer to it or the entity or individual   designated by it pursuant to Article 3 of this Agreement in exercising   the Asset Purchase Option, and the quantity of such Transferred Assets may be   all or part of the Company Assets to be determined at the sole discretion of   the WFOE in accordance with the PRC Laws then in effect and taking into   account its own commercial considerations.
    
	
 
    	
 
    	
 
    
	
“Exercise”:
    	
  
    	
means the exercise of the Share Transfer Option   or Asset Purchase Option by the WFOE.
    
	
 
    	
 
    	
 
    
	
“Transfer Price”:
    	
  
    	
means the total consideration payable by the WFOE   or the entity or individual designated by it in each Exercise to the Existing   Shareholders or the Company for acquiring the Transferred Shares or the   Company Assets.
    
	
 
    	
 
    	
 
    
	
“Business License”:
    	
  
    	
means any approval, permit, filing, registration   and any other licenses which are required to be obtained by the Company for   the lawful and valid conduct of all its business, including without   limitation the Business License and other permits and licenses required under   the PRC Laws then in effect.
    
	
 
    	
 
    	
 
    
	
“Company Assets”:
    	
  
    	
mean all of the tangible and intangible assets   that is owned by the Company or the Company has the right to dispose of   during the effective term of this Agreement, including without limitation any   real property, movable property and trademark, copyright, patent, know-how,   domain name, software license and such other intellectual property rights.
    
	
 
    	
 
    	
 
    
	
“Material Agreement”:
    	
  
    	
means any agreement to which the Company is a   party that may have material effect on the Company’s business or assets,   including without limitation the Second Amended and Restated Exclusive Consultation   and Service Agreement executed concurrently with this Agreement and other   material agreements in connection with the business of the Company.
    
	
 
    	
 
    	
 
    
	
“Exercise Notice”:
    	
  
    	
has the meaning ascribed to it in   Article 3.7 of this Agreement.
    
	
 
    	
 
    	
 
    
	
“Confidential Information”:
    	
  
    	
has the meaning ascribed to it in   Article 8.1 of this Agreement.
    
	
 
    	
 
    	
 
    
	
“Defaulting Party”:
    	
  
    	
has the meaning ascribed to it in   Article 11.1 of this Agreement.
    

 

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“Default”:
    	
  
    	
has the meaning ascribed to it in   Article 11.1 of this Agreement.
    
	
 
    	
 
    	
 
    
	
“Rights”:
    	
  
    	
has the meaning ascribed to it in   Article 12.5 of this Agreement.
    

 

1.2                         Any reference to the PRC Laws herein shall be deemed to include:

 

(1)                     the reference to any revision, amendment, supplement and reenactment of such PRC Laws, irrespective of whether such revision, amendment, supplement and reenactment comes into force before or after the date of execution of this Agreement; and

 

(2)                     the reference to other decisions, notices or regulations enacted in accordance, or effective as a result of, such PRC Laws.

 

1.3                         Unless otherwise specified in the context herein, any reference to an article, section, item or paragraph shall mean the corresponding article, section, item or paragraph in this Agreement.

 

ARTICLE 2
   GRANT OF SHARE TRANSFER OPTION AND ASSET PURCHASE OPTION

 

2.1                         The Existing Shareholders hereby severally and jointly agree to irrevocably and unconditionally grant the WFOE, and the WFOE agrees to accept, an exclusive share transfer option, pursuant to which the WFOE is entitled to require the Existing Shareholders, to the extent permitted by the PRC Laws, to transfer the Option Shares to it or the entity or individual designated by it in accordance with the terms and conditions of this Agreement.

 

2.2                         The Company hereby agrees that the Existing Shareholders shall grant the WFOE the Share Transfer Option in accordance with Article 2.1 above and other provisions herein.

 

2.3                         The Company hereby agrees to irrevocably and unconditionally grant the WFOE, and the WFOE agrees to accept, an exclusive asset purchase option, pursuant to which the WFOE is entitled to require the Company, to the extent permitted by the PRC Laws, to transfer any or part of the Company Assets to it or the entity or individual designated by it in accordance with the terms and conditions of this Agreement.

 

2.4                         The Existing Shareholders hereby severally and jointly agrees that the Company shall grant the WFOE the Asset Purchase Option in accordance with Article 2.3 above and other provisions herein.

 

ARTICLE 3
  METHOD OF EXERCISE

 

3.1                         Subject to the terms and conditions of this Agreement and to the extent permitted by the PRC Laws, the WFOE has the absolute discretion to determine the time, manner and number of times of its Exercise.

 

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3.2                         Subject to the terms and conditions of this Agreement and to the extent not in violation of the PRC Laws then in effect, the WFOE is entitled to require at any time that all or part of the shares of the Company be transferred from the Existing Shareholders to it or other entity or individual designated by it.

 

3.3                         Subject to the terms and conditions of this Agreement and to the extent not in violation of the then-current PRC Laws, the WFOE is entitled to require at any time that all or part of the Company Assets be transferred from the Company to it or other entity or individual designated by it.

 

3.4                         In respect of the Share Transfer Option, at each Exercise, the WFOE is entitled to determine the number of the Transferred Shares which shall be transferred from the Existing Shareholders to the WFOE and/or its designated entity or individual, and the Existing Shareholders shall sell the Transferred Shares to the WFOE and/or its designated entity or individual of which the number is so determined by the WFOE. In respect of the purchase of the Transferred Shares at each Exercise, the WFOE and/or its designated entity or individual shall pay the Transfer Price to the Existing Shareholders who are selling the Transferred Shares.

 

3.5                         In respect of the Asset Purchase Option, at each Exercise, the WFOE is entitled to determine the specific Company Assets which shall be transferred from the Company to the WFOE and/or its designated entity or individual, and the Company shall sell the Transferred Assets to the WFOE and/or its designated entity or individual as requested by the WFOE. In respect of the purchase of the Transferred Assets at each Exercise, the WFOE and/or its designated entity or individual shall pay the Transfer Price to the Company.

 

3.6                         At each Exercise, the WFOE may require the Transferred Shares or Transferred Assets to be transferred to itself, or require all or part of the Transferred Shares or Transferred Assets to be transferred to any third party designated by it.

 

3.7                         At each Exercise decided by the WFOE, an exercise notice of the Share Transfer Option or the Asset Purchase Option (each an “Exercise Notice,” the form of which is attached as Appendix II and Appendix III) shall be served by the WFOE to the Existing Shareholders or the Company, as the case may be. The Existing Shareholders or the Company shall, upon receipt of the Exercise Notice, immediately transfer, in accordance with the Exercise Notice, all the Transferred Shares to the WFOE and/or its designated entity or individual in the manner provided in Article 3.4 or 3.5 of this Agreement.

 

ARTICLE 4
  PURCHASE PRICE

 

4.1                         With respect to the Share Transfer Option, the total Transfer Price at each Exercise payable by the WFOE or its designated entity or individual to the Existing Shareholders shall be an amount equivalent to the lower of (i) the amount of contribution in the Company’s Registered Capital which the Transferred Shares represent, or (ii) the lowest price permitted by the PRC Laws then in effect. Each of the Existing Shareholders acknowledges and agrees that it has been sufficiently compensated by the WFOE and therefore shall return the full amount received for the share transfer to the WFOE or its designated entity and individual within ten (10) business days upon receipt of such amount.

 

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4.2                         With respect to the Asset Purchase Option, the WFOE or its designated entity or individual shall pay to the Company the lowest price permitted by the PRC Laws then in effect at each Exercise. The Company acknowledges and agrees that it has been sufficiently compensated by the WFOE and therefore shall return the full amount received for the asset transfer to the WFOE or its designated entity or individual within ten (10) business days upon receipt of such amount.

 

ARTICLE 5
  REPRESENTATIONS AND WARRANTIES

 

5.1                         Each of the Existing Shareholders hereby severally and jointly represents and warrants that:

 

5.1.1                     it has full and independent legal status and legal capacity to execute, deliver and perform this Agreement and is capable of being an independent party to a lawsuit.

 

5.1.2                     the Company is a limited liability company duly registered and validly existing under the PRC Laws with independent legal person status, and has full and independent legal status and legal capacity to execute, deliver and perform this Agreement, and is capable of being an independent party to a lawsuit.

 

5.1.3                     it has full power and authority to execute, deliver and perform this Agreement and all the other documents related to the transactions contemplated hereunder which are to be executed by it, and to consummate the transactions contemplated hereunder.

 

5.1.4                     this Agreement is lawfully and duly executed and delivered by it and constitutes its legal and binding obligations, enforceable against it pursuant to the terms hereof.

 

5.1.5                     it is the registered legal owner of the Option Shares as of the effective date of this Agreement, and the Option Shares are free from any lien, pledge, claim or other security interest or third party right, except for (i) the pledge created pursuant to the Second Amended and Restated Equity Pledge Agreement on March 20, 2020, and (ii) the proxy right created pursuant to the Second Amended and Restated Shareholder Voting Proxy Agreement, executed by and among the Company on March 20, 2020, the WFOE and the Existing Shareholders. Pursuant to this Agreement, the WFOE and/or its designated entity or individual is able to, after the Exercise, acquire the sound ownership of the Transferred Shares free from any lien, pledge, claim or other security interest or third party right of ownership.

 

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5.1.6                     to (the best of) its knowledge, the Company Assets are free from any lien, pledge, claim or other security interest or third party right. Pursuant to this Agreement, the WFOE and/or its designated entity or individual is able to, after the Exercise, acquire the sound ownership of the Company Assets free from any lien, pledge, claim or other security interest or third party right of ownership.

 

5.1.7                     unless otherwise compelled by the PRC Laws, it shall not demand for any declaration or distribution of any attributable profits, bonus, dividends or interest by the Company, and in the event it receives any profits, bonus, dividends or interest from the Company, it shall, to the extent in compliance with the PRC Laws, promptly give such profits, bonus, dividends or interest to the WFOE or any eligible entity or individual designated by the WFOE as gift.

 

5.2                         The Company hereby represents and warrants that:

 

5.2.1                     it is a limited liability company duly registered and validly existing under the PRC Laws with independent legal person status. It has full and independent legal status and legal capacity to execute, deliver and perform this Agreement, and is capable of being an independent party to a lawsuit.

 

5.2.2                     it has full corporate power and authority to execute, deliver and perform this Agreement and all the other documents related to the transactions contemplated hereunder which are to be executed by it, and the full power and authority to consummate the transactions contemplated hereunder.

 

5.2.3                     this Agreement is lawfully and duly executed and delivered by it and constitutes its legal and binding obligations.

 

5.2.4                     the Company Assets are free from any lien, pledge, claim or other security interest or third party right. Pursuant to this Agreement, the WFOE and/or its designated entity or individual is able to, after the Exercise, acquire the sound ownership of the Company Assets free from any lien, pledge, claim or other security interest or third party right of ownership.

 

5.2.5                     unless otherwise compelled by the PRC Laws, it shall not make any declaration or distribution of any attributable profits, bonus, dividends or interest.

 

5.3                         The WFOE hereby represents and warrants that:

 

5.3.1                     it is an wholly foreign-owned enterprise duly registered and validly existing under the PRC Laws with independent legal person status. It has full and independent legal status and legal capacity to execute, deliver and perform this Agreement, and is capable of being an independent party to a lawsuit.

 

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5.3.2                     it has full corporate power and authority to execute, deliver and perform this Agreement and all the other documents related to the transactions contemplated hereunder which are to be executed by it, and the full power and authority to consummate the transactions contemplated hereunder.

 

5.3.3                     this Agreement is lawfully and duly executed and delivered by it and constitutes its legal and binding obligations.

 

ARTICLE 6
  COVENANTS OF THE EXISTING SHAREHOLDERS

 

Each of the Existing Shareholders hereby covenants that:

 

6.1                         During the effective term of this Agreement, it shall not, without prior written consent of the WFOE:

 

6.1.1                     transfer or otherwise dispose of, or create any security interest or other third party right over, any Option Shares;

 

6.1.2                     increase or reduce the Company’s Registered Capital, or otherwise cause the Company to merge with any other entity;

 

6.1.3                     dispose of or cause the Company’s management to dispose of any material assets of the Company, other than in the ordinary course of business;

 

6.1.4                     terminate or cause the Company’s management to terminate any material agreement entered into by the Company, or enter into any other agreement which is in conflict with any existing material agreement;

 

6.1.5                     appoint or replace any director, supervisor or any other Company’s management who shall be appointed or replaced by the Existing Shareholders;

 

6.1.6                     cause the Company to make any declaration or distribution of attributable profits, bonus, dividends or interest;

 

6.1.7                     terminate, liquidate or dissolve the Company and will ensure that the Company is validly existing;

 

6.1.8                     amend the articles of association of the Company; and

 

6.1.9                     cause the Company to provide or obtain any loan, or provide undertaking or otherwise provide guarantee in any form, or assume any substantial obligation other than in the ordinary course of business.

 

6.2                         During the effective term of this Agreement, it shall use its best efforts to develop the Company’s business and ensure that the operations of the Company are in compliance with laws and regulations, and nothing detrimental to the Company Assets, goodwill or the validity of the Company’s Business License shall be caused by its act or omission.

 

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6.3                         During the effective term of this Agreement, it shall promptly inform the WFOE of any circumstances that may have material adverse effect on the existence, operations, financial condition, assets or goodwill of the Company, and shall take all steps accepted by the WFOE to prevent such circumstances or take effective remedial actions.

 

6.4                         Upon service of the Exercise Notice by the WFOE:

 

6.4.1                     it shall immediately hold a shareholders’ meeting to pass resolutions at such meeting and take all other necessary actions to approve the transfer of all the Transferred Shares or Transferred Assets from any Existing Shareholder or the Company to the WFOE and/or its designated entity or individual at the Transfer Price, and shall waive any pre-emptive right (if any) it may have;

 

6.4.2                     it shall immediately enter into a share transfer agreement with the WFOE and/or its designated entity or individual to transfer all the Transferred Shares to the WFOE and/or WFOE’s designated entity or person at the Transfer Price, and provide necessary assistance to the WFOE (including the provision and execution of all ancillary legal documents, completion of the procedures for all governmental approvals and registrations, and fulfilment of all relevant obligations) as requested by the WFOE and in compliance with the laws and regulations, so that all the Transferred Shares will be acquired by the WFOE and/or its designated entity or individual free from any encumbrances, or any security interest, third party restriction or any other limitations on the shares.

 

6.5                         In the event that the aggregate amount of the Transfer Price received by it in respect of the Transferred Shares held by it is higher than its contribution in the Company, or it receives any distribution of profits, dividends, interest or bonus from the Company, such Existing Shareholder agrees not to collect, to the extent not in violation of the PRC Laws, the proceeds from such premium and any such distribution of profits, dividends, interest or bonus (net of relevant taxes), and the WFOE shall be entitled to collect such part of proceeds. The Existing Shareholders shall instruct the relevant recipient or the Company to pay such part of proceeds to the bank account then designated by the WFOE.

 

ARTICLE 7
  COVENANTS BY THE COMPANY

 

7.1                         The Company hereby covenants that:

 

7.1.1                     it shall use its best efforts to provide assistance in satisfying the requirements to obtain any third parties’ consent, permit, waiver, authorization or any governmental approval, permit, waiver, or to complete the procedures of any registration or filing (if required by laws) with any governmental authority for the execution and performance of this Agreement and the grant of the Share Transfer Option and Asset Purchase Option under this Agreement.

 

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7.1.2                     without prior written consent of the WFOE, it shall not provide assistance to or permit the Existing Shareholders to transfer or otherwise dispose of, or create any security interest or other third party right over, any Option Shares.

 

7.1.3                     without prior written consent of the WFOE, it shall not transfer or otherwise dispose of any material assets of the Company (other than in the ordinary course of business), or create any security interest or other third party right over any Company Assets.

 

7.1.4                     it shall not conduct or permit the conduct of any act or action that may have material adverse effect on the interests of the WFOE under this Agreement, including without limitation any act or action which is subject to the restrictions under Article 6.1.

 

7.2                         Upon service of the Exercise Notice by the WFOE:

 

7.2.1                     it shall immediately procure a shareholders’ meeting to be held by the Existing Shareholders and the passing of resolutions at such meeting and take all other necessary actions to approve the transfer of all the Transferred Assets from the Company to the WFOE and/or its designated entity or individual at the Transfer Price;

 

7.2.2                     it shall immediately execute an asset transfer agreement with the WFOE and/or its designated entity or individual to transfer all the Transferred Assets to the WFOE and/or its designated entity or individual at the Transfer Price, and procure the necessary assistance from its shareholders to be provided to the WFOE (including the provision and execution of all ancillary legal documents, completion of the procedures for all governmental approvals and registrations, and fulfilment of all relevant obligations) as requested by the WFOE and in compliance with the laws and regulations, so that all the Transferred Assets will be acquired by the WFOE and/or its designated entity or individual free from any encumbrances, or any security interest, third party restriction or any other limitations on the Company Assets.

 

7.3                         In the event that the Company is dissolved or liquidated as required by PRC Laws, to the extent that permitted by PRC Laws, the Company shall transfer all its assets to the WFOE or other eligible person designated by it at the lowest price permitted by the PRC Laws. The Company shall waive the payment obligation of the WFOE or its designated eligible person arising therefrom to the extent permitted by the PRC Laws then in effect; Alternatively, any proceeds from such transaction shall, to the extent permitted by the PRC Laws then in effect, be paid to the WFOE or its designated eligible person as part of the service fees under the exclusive consultation and service agreement.

 

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ARTICLE 8
  CONFIDENTIALITY OBLIGATIONS

 

8.1                         Notwithstanding the termination of this Agreement, each Party shall be obliged to keep in strict confidence the trade secrets, proprietary and customer information, and all other information which are confidential in nature (collectively, the “Confidential Information”) of the other Party acquired during the entering into and performance of this Agreement. The receiving party of the Confidential Information shall not disclose any Confidential Information to any third parties unless it has obtained the prior written consent of the other Party, or required by relevant laws and regulations or the requirements of the place where a Party’s affiliate is listed. The receiving party of the Confidential Information shall not use, directly or indirectly, such Confidential Information for purposes other than performing its obligations under this Agreement.

 

8.2                         The Confidential Information shall not include any information which:

 

(a)         as shown by written evidence, was rightfully known to the receiving party previously;

 

(b)         enters the public domain through no fault of the receiving party; or

 

(c)          is rightfully acquired by the receiving party from other sources subsequent to the receipt of the Confidential Information.

 

8.3                         The receiving party may disclose the Confidential Information to its relevant employees, agents or professionals it retains, provided that it shall ensure that such persons shall comply with the terms and conditions of this Agreement and the receiving party shall be liable for the breach of any relevant terms and conditions of this Agreement by any of such persons.

 

8.4                         Notwithstanding anything to the contrary in this Agreement, this Article shall survive the termination of this Agreement.

 

ARTICLE 9
  TERM

 

This Agreement shall become effective upon duly execution by the Parties hereto, and shall terminate upon the completion of transfer of all the Option Shares and Company Assets to the WFOE and/or its designated entity or individual in accordance with laws and the provisions of this Agreement. The Original Exclusive Option Agreement shall be replaced by this Agreement from the effective date of this Agreement.

 

ARTICLE 10
  NOTICES

 

10.1                  Any notice, request, demand and other correspondence required to be given or made pursuant to this Agreement shall be made in writing and delivered to relevant Parties.

 

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10.2                  Such notices or other correspondence shall be deemed to be duly served upon transmission if sent by fax or telex, or upon delivery if sent by hand, or five (5) days after posting if sent by mail.

 

ARTICLE 11
  LIABILITIES FOR BREACH OF CONTRACT

 

11.1                  The Parties agree and acknowledge that, if any Party (“Defaulting Party”) is materially in breach of any provision of this Agreement, or materially fails to perform or delays in performing any of its obligations hereunder, such breach, failure or delay shall constitute a default hereunder (the “Default”), and the non-defaulting Party shall be entitled to demand the Defaulting Party to rectify such Default or take remedial actions within a reasonable period of time. If the Defaulting Party fails to rectify such Default or take remedial actions within such reasonable period of time or ten (10) days from the receipt of the written notice from the non-defaulting Party requiring such rectification, the non-defaulting Party shall be entitled to make a decision at its sole discretion:

 

11.1.1              the WFOE shall be entitled to terminate this Agreement and claim from the Defaulting Party for damages if the Defaulting Party is any of the Existing Shareholders or the Company;

 

11.1.2              the non-defaulting Party shall be entitled to claim from the Defaulting Party for damages if the Defaulting party is the WFOE, provided that under no circumstances shall the Non-defaulting Party be entitled to terminate or rescind this Agreement unless otherwise provided by laws.

 

11.2                  Notwithstanding anything to the contrary in this Agreement, this Article shall survive the termination of this Agreement.

 

ARTICLE 12
  MISCELLANEOUS

 

12.1                  This Agreement is made in Chinese in eight (8) originals with each Party holding one (1) original.

 

12.2                  The formation, effectiveness, performance, amendment, interpretation and termination of this Agreement shall be governed by the PRC Laws.

 

12.3                  Any dispute arising hereunder and in connection herewith shall be settled through consultations between the Parties, and if the Parties are unable to reach an agreement within thirty (30) days from the occurrence of the dispute, such dispute shall be submitted to China International Economic and Trade Arbitration Commission for arbitration in accordance with the arbitration rules thereof then in effect. The place of arbitration shall be in Beijing, and the language to be used in arbitration shall be Chinese. The award of arbitration shall be final and equally binding on the Parties of this Agreement.

 

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12.4                  No right, power or remedy of a Party under any provision of this Agreement shall preclude such Party from any other right, power or remedy of it under the laws and other provisions of this Agreement, nor shall any exercise of any right, power or remedy by a Party preclude such Party from exercising any other right, power or remedy.

 

12.5                  No failure or delay by any Party in exercising any right, power and remedy (the “Rights”) pursuant to this Agreement or laws shall be deemed as a waiver of such Rights, and no single or partial waiver of such Rights of a Party shall preclude any other exercise of it or the exercise of any other Rights.

 

12.6                  The headings of the Articles in this Agreement are inserted for the convenience of reference only, and under no circumstances shall be used in or otherwise affect the construction of this Agreement.

 

12.7                  Each provision contained in this Agreement shall be severable and independent from other provisions, and in the event that any one or more provisions of this Agreement are held invalid, illegal or unenforceable at any time, the validity, legality or enforceability of the remaining provisions shall not be affected or impaired in any way.

 

12.8                  This Agreement, upon execution, supersedes any other legal documents entered into between the Parties in respect of the subject matter hereof. Any amendments or supplements to this Agreement shall be made in writing and come into effect upon due execution by the Parties hereto.

 

12.9                  No Party shall transfer any of its rights and/or obligations hereunder to any third parties without prior written consent of the other Parties.

 

12.10           This Agreement shall be binding on the legal assigns or successors of the Parties.

 

[The remainder of this page is intentionally left blank]

 

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[Signature page to the Second Amended and Restated Exclusive Option Agreement]

 

IN WITNESS WHEREOF, this Second Amended and Restated Exclusive Option Agreement has been executed by the following Parties on the date first above written.

 

	
HUANG   WANG
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ Huang Wang
    	
 
    
	
 
    	
 
    	
 
    
	
LU   YUNFEN
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ Lu Yunfen
    	
 
    
	
 
    	
 
    	
 
    
	
FAN   MEIHUI
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ Fan Meihui
    	
 
    
	
 
    	
 
    	
 
    
	
FAN   BIN
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ Fan Bin
    	
 
    
	
 
    	
 
    	
 
    
	
ZHANG   YI
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ Zhang Yi
    	
 
    
	
 
    	
 
    	
 
    
	
ZHANG   XIAOJUN
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ Zhang Xiaojun
    	
 
    

 

Signature page to the Second Amended and Restated Exclusive Option Agreement

 

 

[Signature page to the Second Amended and Restated Exclusive Option Agreement]

 

IN WITNESS WHEREOF, this Second Amended and Restated Exclusive Option Agreement has been executed by the following Parties on the date first above written.

 

SHUNYUAN KAIHUA (BEIJING) TECHNOLOGY CO., LTD.

(Company seal: /s/ Shunyuan Kaihua (Beijing) Technology Co., Ltd.)

 

	
By:
    	
/s/ Huang Wang
    	
 
    
	
Name:
    	
Huang Wang
    	
 
    
	
Title:
    	
Legal Representative
    	
 
    

 

HUAMI (BEIJING) INFORMATION TECHNOLOGY CO., LTD.

(Company seal: /s/ Huami (Beijing) Information Technology Co., Ltd.)

 

	
By:
    	
/s/ Huang Wang
    	
 
    
	
Name:
    	
Huang Wang
    	
 
    
	
Title:
    	
Legal Representative
    	
 
    

 

Signature page to the Second Amended and Restated Exclusive Option Agreement

 

 

Appendix I:

 

General Information of the Company

 

Company Name: Huami (Beijing) Information Technology Co., Ltd.

 

Registered Address: Unit 206-1, Level 2, Block 23, No. 8 Dong Bei Wang West Road, Haidian District, Beijing

 

Registered Capital: RMB 2,020,200

 

Legal Representative: Huang Wang

 

Shareholding Structure:

 

	
Name of
   Shareholder
    	
 
    	
Amount of Contribution
   in the Registered Capital
   (in RMB 10,000)
    	
 
    	
Percentage of
   Contribution
    	
 
    	
Identity Card Number /
   Unified Social Credit
   Number
    	
 
    
	
Huang Wang
    	
 
    	
182.02
    	
 
    	
90.1000
    	
%
    	
***
    	
 
    
	
Lu Yunfen
    	
 
    	
4.3
    	
 
    	
2.1285
    	
%
    	
***
    	
 
    
	
Fan Meihui
    	
 
    	
4.3
    	
 
    	
2.1285
    	
%
    	
***
    	
 
    
	
Fan Bin
    	
 
    	
4.3
    	
 
    	
2.1285
    	
%
    	
***
    	
 
    
	
Zhang Yi
    	
 
    	
4.3
    	
 
    	
2.1285
    	
%
    	
***
    	
 
    
	
Zhang Xiaojun
    	
 
    	
2.8
    	
 
    	
1.3860
    	
%
    	
***
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Total
    	
 
    	
202.02
    	
 
    	
100
    	
%
    	
—
    	
 
    

 

Appendix I

 

 

Appendix II:

 

Form of Exercise Notice

 

To: Huang Wang, Lu Yunfen, Fan Meihui, Fan Bin, Zhang Yi, Zhang Xiaojun

 

WHEREAS, we, you and Huami (Beijing) Information Technology Co., Ltd. (the “Company”) entered into the Second Amended and Restated Exclusive Option Agreement (the “Option Agreement”) on March 20, 2020 pursuant to which you shall transfer the shares held by you in the Company to us or any third party designated by us at our request to the extent permitted by the PRC laws and regulations.

 

Therefore, we hereby give this notice to you as follows:

 

We hereby request to exercise the Share Transfer Option under the Option Agreement and we/[name of company/individual] designated by us will acquire [·]% of the shares held by you in the Company (the “Proposed Acquired Shares”). You shall, upon receipt of this notice, immediately transfer all the Proposed Acquired Shares to us/[name of the designated company/individual] in accordance with the provisions of the Option Agreement.

 

Regards,

 

	
 
    	
Shunyuan Kaihua (Beijing) Technology Co., Ltd.
    
	
 
    	
(Company seal)
    
	
 
    	
 
    
	
 
    	
Authorized Representative:
    
	
 
    	
 
    
	
 
    	
Date:
    

 

Appendix II

 

 

Appendix III:

 

Form of Exercise Notice

 

To: Huami (Beijing) Information Technology Co., Ltd.

 

WHEREAS, we, Huang Wang, Lu Yunfen, Fan Meihui, Fan Bin, Zhang Yi, Zhang Xiaojun and you entered into the Second Amended and Restated Exclusive Option Agreement (the “Option Agreement”) on March 20, 2020 pursuant to which you shall transfer your assets to us or any third party designated by us at our request to the extent permitted by the PRC laws and regulations.

 

Therefore, we hereby give this notice to you as follows:

 

We hereby request to exercise the Asset Purchase Option under the Option Agreement and we/[name of company/individual] designated by us will acquire all your assets as set out in a separate list (the “Proposed Acquired Assets”). You shall, upon receipt of this notice, immediately transfer all the Proposed Acquired Assets to us/[name of the designated company/individual] in accordance with the provisions of the Option Agreement.

 

Regards,

 

	
 
    	
Shunyuan Kaihua (Beijing) Technology Co., Ltd.
    
	
 
    	
(Company seal)
    
	
 
    	
 
    
	
 
    	
Authorized Representative:
    
	
 
    	
 
    
	
 
    	
Date:
    

 

Appendix IIIExhibit
10.1

 

SECURITIES PURCHASE AGREEMENT

 

This Securities Purchase Agreement (this
 “Agreement”) is dated as of April 20, 2020, between Golden Minerals Company, a Delaware corporation (the “Company”),
and each purchaser identified on the signature pages hereto (each, including its successors and assigns, a “Purchaser”
and collectively the “Purchasers”).

 

WHEREAS, subject to the terms and conditions
set forth in this Agreement and pursuant to (i) an effective registration statement under the Securities Act (as defined below)
as to the Shares, and (ii) an exemption from the registration requirements of Section 5 of the Securities Act contained
in Section 4(a)(2) thereof and/or Regulation D thereunder as to the Warrants, the Company desires to issue and sell
to each Purchaser, and each Purchaser, severally and not jointly, desires to purchase from the Company, securities of the Company
as more fully described in this Agreement.

 

NOW, THEREFORE, IN CONSIDERATION of
the mutual covenants contained in this Agreement, and for other good and valuable consideration the receipt and adequacy of which
are hereby acknowledged, the Company and each Purchaser agree as follows:

 

ARTICLE I.

DEFINITIONS

 

1.1Definitions.  In addition
to the terms defined elsewhere in this Agreement, for all purposes of this Agreement, the following terms have the meanings set
forth in this Section 1.1:

 

“Acquiring Person”
shall have the meaning ascribed to such term in Section 4.5.

 

“Action” shall
have the meaning ascribed to such term in Section 3.1(j).

 

“Affiliate”
means any Person that, directly or indirectly through one or more intermediaries, controls or is controlled by or is under common
control with a Person as such terms are used in and construed under Rule 405 under the Securities Act.

 

“Agreement”
shall have the meaning ascribed to such term in the first paragraph of this Agreement.

 

“BHCA” shall
have the meaning ascribed to such term in Section 3.1(ll).

 

“Board of Directors”
means the board of directors of the Company.

 

“Business Day”
means any day except any Saturday, any Sunday, any day which is a federal legal holiday in the United States or any day on which
banking institutions in the State of New York are authorized or required by law or other governmental action to close.

 

“Canadian Transfer Restriction”
shall have the meaning ascribed to such term in Section 3.2(d).

 

“Closing” means
the closing of the purchase and sale of the Securities pursuant to Section 2.1.

 

“Closing Date”
means the Trading Day on which all of the Transaction Documents have been executed and delivered by the applicable parties thereto,
and all conditions precedent to (i) the Purchasers’ obligations to pay the Subscription Amount and (ii) the Company’s
obligations to deliver the Securities, in each case, have been satisfied or waived, but in no event later than the 2nd Trading
Day following the date hereof.

 

“Commission”
means the United States Securities and Exchange Commission.

 

     

     

    

 

“Common Stock”
means the common stock of the Company, par value $0.01 per share, and any other class of securities into which such securities
may hereafter be reclassified or changed.

 

“Common Stock Equivalents”
means any securities of the Company or the Subsidiaries which would entitle the holder thereof to acquire at any time Common Stock,
including, without limitation, any debt, preferred stock, right, option, warrant or other instrument that is at any time convertible
into or exercisable or exchangeable for, or otherwise entitles the holder thereof to receive, Common Stock.

 

“Company” shall
have the meaning ascribed to such term in the first paragraph of this Agreement.

 

“Company Counsel”
means Davis Graham & Stubbs LLP, with offices located at 1550 Seventeenth Street, Suite 500, Denver, Colorado 80202.

 

“Dentons” means
Dentons US LLP, with offices located at 1221 Avenue of the Americas, New York, New York 10020.

 

“Disclosure Time”
means, (i) if this Agreement is signed on a day that is not a Trading Day or after 9:00 a.m. (New York City time) and
before midnight (New York City time) on any Trading Day, 9:01 a.m. (New York City time) on the Trading Day immediately following
the date hereof, unless otherwise instructed as to an earlier time by the Placement Agent, and (ii) if this Agreement is signed
between midnight (New York City time) and 9:00 a.m. (New York City time) on any Trading Day, no later than 9:01 a.m. (New
York City time) on the date hereof, unless otherwise instructed as to an earlier time by the Placement Agent.

 

“Disclosure Schedules”
means the Disclosure Schedules of the Company delivered concurrently herewith.

 

“Disqualification Event”
shall have the meaning ascribed to such term in Section 3.1(nn)

 

“DVP” shall
have the meaning ascribed to such term in Section 2.1.

 

“DWAC” shall
have the meaning ascribed to such term in Section 2.2(a)(iii).

 

“Environmental Laws”
shall have the meaning ascribed to such term in Section 3.1(m).

 

“Evaluation Date”
shall have the meaning ascribed to such term in Section 3.1(t).

 

“Exchange Act”
means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

 

“Exempt Issuance”
means the issuance of (a) shares of Common Stock or options to employees, officers or directors of the Company pursuant to
any stock or option plan duly adopted for such purpose, by a majority of the non-employee members of the Board of Directors or
a majority of the members of a committee of non-employee directors established for such purpose for services rendered to the Company,
(b) securities upon the exercise or exchange of or conversion of any Securities issued hereunder and/or other securities exercisable
or exchangeable for or convertible into shares of Common Stock issued and outstanding on the date of this Agreement, provided that
such securities have not been amended since the date of this Agreement to increase the number of such securities or to decrease
the exercise price, exchange price or conversion price of such securities (other than in connection with stock splits or combinations)
or to extend the term of such securities and (c) securities issued pursuant to acquisitions or strategic transactions approved
by a majority of the disinterested directors of the Company, provided that such securities are issued as “restricted securities”
(as defined in Rule 144) and carry no registration rights that require or permit the filing of any registration statement
in connection therewith during the prohibition period in Section 4.12(a) herein, and provided that any such issuance
shall only be to a Person (or to the equityholders of a Person) which is, itself or through its subsidiaries, an operating company
or an owner of an asset in a business synergistic with the business of the Company and shall provide to the Company additional
benefits in addition to the investment of funds, but shall not include a transaction in which the Company is issuing securities
primarily for the purpose of raising capital or to an entity whose primary business is investing in securities.

 

     

     

    

 

“FCPA” means
the Foreign Corrupt Practices Act of 1977, as amended.

 

“Federal Reserve”
shall have the meaning ascribed to such term in Section 3.1(ll).

 

“GAAP” shall
have the meaning ascribed to such term in Section 3.1(h).

 

“Hazardous Materials”
shall have the meaning ascribed to such term in Section 3.1(m).

 

“Indebtedness”
shall have the meaning ascribed to such term in Section 3.1(cc).

 

“Intellectual Property
Rights” shall have the meaning ascribed to such term in Section 3.1(q).

 

“Issuer Covered Person”
or “Issuer Covered Persons” shall have the meaning ascribed to such term in Section 3.1(nn).

 

“Legend Removal Date”
shall have the meaning ascribed to such term in Section 4.1(c).

 

“Liens” means
a lien, charge, pledge, security interest, encumbrance, right of first refusal, preemptive right or other restriction.

 

“Material Adverse Effect”
shall have the meaning assigned to such term in Section 3.1(b).

 

“Material Permits”
shall have the meaning ascribed to such term in Section 3.1(n).

 

“Mining Claims”
shall have the meaning ascribed to such term in Section 3.1(o).

 

“Money Laundering Laws”
shall have the meaning ascribed to such term in Section 3.1(mm).

 

“OFAC” shall
have the meaning ascribed to such term in Section 3.1(jj).

 

“Per Share Purchase Price”
equals $0.20, subject to adjustment for reverse and forward stock splits, stock dividends, stock combinations and other similar
transactions of the Common Stock that occur after the date of this Agreement.

 

“Person” means
an individual or corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability
company, joint stock company, government (or an agency or subdivision thereof) or other entity of any kind.

 

“Placement Agent”
means A.G.P./Alliance Global Partners.

 

“Proceeding”
means an action, claim, suit, investigation or proceeding (including, without limitation, an informal investigation or partial
proceeding, such as a deposition), whether commenced or threatened.

 

“Prospectus”
means the final prospectus filed for the Registration Statement, including all SEC Reports incorporated by reference therein.

 

“Prospectus Supplement”
means the supplement to the Prospectus complying with Rule 424(b) of the Securities Act that is filed with the Commission
and delivered by the Company to each Purchaser at or prior to the Closing, including all SEC Reports incorporated by reference
therein.

  

“Public Information Failure”
shall have the meaning ascribed to such term in Section 4.2.

 

     

     

    

 

“Public Information Failure
Payments” shall have the meaning ascribed to such term in Section 4.2.

 

“Purchaser”
or “Purchasers” shall have the meaning ascribed to such term in the first paragraph of this Agreement.

 

“Purchaser Party”
shall have the meaning ascribed to such term in Section 4.8.

 

“Registration Statement”
means the effective registration statement with Commission file No. 333-220461 which registers the sale of the Shares to the
Purchasers, including all SEC Reports incorporated by reference therein.

 

“Required Approvals”
shall have the meaning ascribed to such term in Section 3.1(e).

 

“Restricted Securities”
means the Warrants and Warrant Shares.

 

“Rule 144”
means Rule 144 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.

 

“SEC Reports”
shall have the meaning ascribed to such term in Section 3.1(h).

 

“Securities”
means the Shares, the Warrants and the Warrant Shares.

 

“Securities Act”
means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

 

“Shares” means
the shares of Common Stock issued or issuable to each Purchaser pursuant to this Agreement.

 

“Short Sales”
means all “short sales” as defined in Rule 200 of Regulation SHO under the Exchange Act (but shall not be deemed
to include locating and/or borrowing shares of Common Stock).

 

“Subscription Amount”
means, as to each Purchaser, the aggregate amount to be paid for Shares and Warrants purchased hereunder as specified below such
Purchaser’s name on the signature page of this Agreement and next to the heading “Subscription Amount,”
in United States dollars and in immediately available funds.

 

“Subsidiary”
means any subsidiary of the Company as set forth on Schedule 3.1(a), and shall, where applicable, also include any
direct or indirect subsidiary of the Company formed or acquired after the date hereof.

 

“Trading Day”
means a day on which the principal Trading Market is open for trading.

 

“Trading Market”
means any of the following markets or exchanges on which the Common Stock is listed or quoted for trading on the date in question:
the NYSE American, the Toronto Stock Exchange, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market,
or the New York Stock Exchange (or any successors to any of the foregoing).

 

“Transaction Documents”
means this Agreement, the Warrants and any other documents or agreements executed in connection with the transactions contemplated
hereunder.

 

     

     

    

 

“Transfer Agent”
means Computershare Trust Company, N.A., the current transfer agent of the Company, with a mailing address of 350 Indiana Street,
Suite 750, Golden, Colorado 80401 and a facsimile number of (303) 262-0610, and any successor transfer agent of the Company.

 

“Warrants”
means the Common Stock purchase warrants delivered to the Purchasers at the Closing in accordance with Section 2.2(a) hereof, which
Warrants shall be exercisable beginning six months from the date of issuance and have a term of exercise equal to five (5) years
from the initial exercise date, in the form of Exhibit A attached hereto..

 

“Warrant Shares”
means the shares of Common Stock issuable upon exercise of the Warrants.

 

ARTICLE II.

PURCHASE AND SALE;
EXCHANGE

 

2.1Closing.  On the Closing
Date, upon the terms and subject to the conditions set forth herein, substantially concurrent with the execution and delivery of
this Agreement by the parties hereto, the Company agrees to sell, and the Purchasers, severally and not jointly,  agree to
purchase, up to an aggregate of $3,000,000 of Shares and Warrants.  Each Purchaser’s Subscription Amount as set forth
on the signature page hereto executed by such Purchaser shall be made available for “Delivery Versus Payment”
settlement with the Company. The Company shall deliver to each Purchaser its respective Shares and Warrants as determined pursuant
to Section 2.2(a), and the Company and each Purchaser shall deliver the other items set forth in Section 2.2
deliverable at the Closing.  Upon satisfaction of the covenants and conditions set forth in Sections 2.2 and 2.3,
the Closing shall occur at the offices of Dentons or such other location as the parties shall mutually agree.  Unless otherwise
directed by the Placement Agent, settlement of the Shares shall occur via “Delivery Versus Payment” (“DVP”)
(i.e., on the Closing Date, the Company shall issue the Shares registered in the Purchasers’ names and addresses and released
by the Transfer Agent directly to the account(s) at the Placement Agent identified by each Purchaser; upon receipt of such
Shares, the Placement Agent shall promptly electronically deliver such Shares to the applicable Purchaser, and payment therefor
shall be made by the Placement Agent (or its clearing firm) by wire transfer to the Company).

 

2.2Deliveries.

 

(a)On or prior to the Closing
Date, the Company shall deliver or cause to be delivered to each Purchaser the following:

 

(i)this Agreement duly executed
by the Company;

 

(ii)a legal opinion of Company Counsel,
in form reasonably satisfactory to the Placement Agent;

 

(iii)subject to the last sentence
of Section 2.1, the Company shall have provided each Purchaser with the Company’s wire instructions, on Company letterhead
and executed by the Chief Executive Officer or Chief Financial Officer;

 

(iv)subject to the last sentence
of Section 2.1, a copy of the irrevocable instructions to the Transfer Agent instructing the Transfer Agent to deliver
on an expedited basis via The Depository Trust Company Deposit or Withdrawal at Custodian system (“DWAC”) Shares
equal to such Purchaser’s Subscription Amount divided by the Per Share Purchase Price, registered in the name of such Purchaser;

 

(v)a Warrant registered in the name
of such Purchaser to purchase up to a number of shares of Common Stock equal to 75% of such Purchaser’s Shares, with an exercise
price per share equal to $0.30, subject to adjustment therein; and

 

(vi)the Prospectus and Prospectus
Supplement (which may be delivered in accordance with Rule 172 under the Securities Act).

 

     

     

    

 

(b)On or prior to the Closing
Date, each Purchaser shall deliver or cause to be delivered to the Company, the following:

 

(i)this Agreement duly executed
by such Purchaser; and

 

(ii)such Purchaser’s Subscription
Amount, which shall be made available for “Delivery Versus Payment” settlement with the Company.

 

2.3Closing Conditions.

 

(a)The obligations of the Company
hereunder in connection with the Closing are subject to the following conditions being met:

 

(i)the accuracy in all material
respects (or, to the extent representations or warranties are qualified by materiality or Material Adverse Effect, in all respects)
on the Closing Date of the representations and warranties of the Purchasers contained herein (unless as of a specific date therein
in which case they shall be accurate as of such date);

 

(ii)all obligations, covenants and
agreements of each Purchaser required to be performed at or prior to the Closing Date shall have been performed; and

 

(iii)the delivery by each Purchaser
of the items set forth in Section 2.2(b) of this Agreement.

 

(b)The respective obligations
of the Purchasers hereunder in connection with the Closing are subject to the following conditions being met:

 

(i)the accuracy in all material
respects (or, to the extent representations or warranties are qualified by materiality or Material Adverse Effect, in all respects)
when made and on the Closing Date of the representations and warranties of the Company contained herein (unless as of a specific
date therein in which case they shall be accurate as of such date);

 

(ii)all obligations, covenants and
agreements of the Company required to be performed at or prior to the Closing Date shall have been performed in all material respects;

 

(iii)the delivery by the Company
of the items set forth in Section 2.2(a) of this Agreement;

 

(iv)there shall have been no Material
Adverse Effect with respect to the Company since the date hereof; and

 

(v)from the date hereof to the Closing
Date, trading in the Common Stock shall not have been suspended by the Commission or the Company’s principal Trading Market,
and, at any time prior to the Closing Date, trading in securities generally as reported by Bloomberg L.P. shall not have been suspended
or limited, or minimum prices shall not have been established on securities whose trades are reported by such service, or on any
Trading Market, nor shall a banking moratorium have been declared either by the United States or New York State authorities nor
shall there have occurred any material outbreak or escalation of hostilities or other national or international calamity of such
magnitude in its effect on, or any material adverse change in, any financial market which, in each case, in the reasonable judgment
of such Purchaser, makes it impracticable or inadvisable to purchase the Securities at the Closing.

 

     

     

    

 

ARTICLE III.

REPRESENTATIONS
AND WARRANTIES

 

3.1Representations and Warranties of
the Company.  Except as set forth in the Disclosure Schedules, which Disclosure Schedules shall be deemed a part hereof
and shall qualify any representation or warranty made herein to the extent of the disclosure contained in the corresponding section
of the Disclosure Schedules, the Company hereby makes the following representations and warranties to each Purchaser:

 

(a)Subsidiaries. 
All of the direct and indirect subsidiaries of the Company are set forth on Schedule 3.1(a).  Except as set forth
on Schedule 3.1(a), the Company owns, directly or indirectly, all of the capital stock or other equity interests of
each Subsidiary free and clear of any Liens, and all of the issued and outstanding shares of capital stock of each Subsidiary are
validly issued and are fully paid, non-assessable and free of preemptive and similar rights to subscribe for or purchase securities.

 

(b)Organization and Qualification. 
The Company and each of the Subsidiaries is an entity duly incorporated or otherwise organized, validly existing and in good standing
under the laws of the jurisdiction of its incorporation or organization, with the requisite power and authority to own and use
its properties and assets and to carry on its business as currently conducted.  Neither the Company nor any Subsidiary is
in violation nor default of any of the provisions of its respective certificate or articles of incorporation, bylaws or other organizational
or charter documents.  Each of the Company and the Subsidiaries is duly qualified to conduct business and is in good standing
as a foreign corporation or other entity in each jurisdiction in which the nature of the business conducted or property owned by
it makes such qualification necessary, except where the failure to be so qualified or in good standing, as the case may be, could
not have or reasonably be expected to result in: (i) a material adverse effect on the legality, validity or enforceability
of any Transaction Document, (ii) a material adverse effect on the results of operations, assets, business or condition (financial
or otherwise) of the Company and the Subsidiaries, taken as a whole, or (iii) a material adverse effect on the Company’s
ability to perform in any material respect on a timely basis its obligations under any Transaction Document (any of (i), (ii) or
(iii), a “Material Adverse Effect”) and no Proceeding has been instituted in any such jurisdiction revoking,
limiting or curtailing or seeking to revoke, limit or curtail such power and authority or qualification.

 

(c)Authorization; Enforcement. 
The Company has the requisite corporate power and authority to enter into and to consummate the transactions contemplated by this
Agreement and each of the other Transaction Documents and otherwise to carry out its obligations hereunder and thereunder. 
The execution and delivery of this Agreement and each of the other Transaction Documents by the Company and the consummation by
it of the transactions contemplated hereby and thereby have been duly authorized by all necessary corporate action on the part
of the Company and no further action is required by the Company, the Board of Directors or the Company’s stockholders in
connection herewith or therewith other than in connection with the Required Approvals.  This Agreement and each other Transaction
Document to which it is a party has been (or upon delivery will have been) duly executed by the Company and, when delivered in
accordance with the terms hereof and thereof, will constitute the valid and binding obligation of the Company enforceable against
the Company by the Purchasers in accordance with its terms, except (i) as limited by general equitable principles and applicable
bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors’
rights generally, (ii) as limited by laws relating to the availability of specific performance, injunctive relief or other
equitable remedies and (iii) insofar as indemnification and contribution provisions may be limited by applicable law.

 

(d)No Conflicts. 
The execution, delivery and performance by the Company of this Agreement and the other Transaction Documents to which it is a party,
the issuance and sale of the Securities and the consummation by it of the transactions contemplated hereby and thereby do not and
will not (i) conflict with or violate any provision of the Company’s or any Subsidiary’s certificate or articles
of incorporation, bylaws or other organizational or charter documents, or (ii) conflict with, or constitute a default (or
an event that with notice or lapse of time or both would become a default) under, result in the creation of any Lien upon any of
the properties or assets of the Company or any Subsidiary, or give to others any rights of termination, amendment, anti-dilution
or similar adjustments, acceleration or cancellation (with or without notice, lapse of time or both) of, any agreement, credit
facility, debt or other instrument (evidencing a Company or Subsidiary debt or otherwise) or other understanding to which the Company
or any Subsidiary is a party or by which any property or asset of the Company or any Subsidiary is bound or affected, or (iii) subject
to the Required Approvals, conflict with or result in a violation of any law, rule, regulation, order, judgment, injunction, decree
or other restriction of any court or governmental authority to which the Company or a Subsidiary is subject (including federal
and state securities laws and regulations), or by which any property or asset of the Company or a Subsidiary is bound or affected;
except in the case of each of clauses (ii) and (iii), such as could not have or reasonably be expected to result in a
Material Adverse Effect.

 

     

     

    

 

(e)Filings, Consents and Approvals. 
The Company is not required to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or
registration with, any court or other federal, state, local or other governmental authority or other Person in connection with
the execution, delivery and performance by the Company of the Transaction Documents, other than: (i) the filings required
pursuant to Section 4.4 of this Agreement, (ii) the filing with the Commission of the Prospectus Supplement, (iii) application(s) to
each applicable Trading Market for the listing of the Shares and Warrant Shares for trading thereon in the time and manner required
thereby, (iv) the filing of a Form D with the Commission and such filings as are required to be made under applicable
state securities laws and (v) any applicable filings under securities laws in Canada  (collectively, the “Required
Approvals”).

 

(f)Issuance of the Securities;
Registration.  The Securities are duly authorized and, when issued and paid for in accordance with the applicable Transaction
Documents, will be duly and validly issued, fully paid and nonassessable, free and clear of all Liens imposed by the Company other
than restrictions on transfer provided for in the Transaction Documents. The Warrant Shares, when issued in accordance with the
terms of the Warrants, will be validly issued, fully paid and nonassessable, free and clear of all Liens imposed by the Company
other than restrictions on transfer provided for in the Transaction Documents.  The Company has reserved from its duly authorized
capital stock the maximum number of shares of Common Stock issuable pursuant to this Agreement.  The Company has prepared
and filed the Registration Statement in conformity in all material respects with the requirements of the Securities Act, which
became effective on September 28, 2017, including the Prospectus, and such amendments and supplements thereto as may have
been required to the date of this Agreement.  The Registration Statement is effective under the Securities Act and no stop
order preventing or suspending the effectiveness of the Registration Statement or suspending or preventing the use of the Prospectus
has been issued by the Commission and no proceedings for that purpose have been instituted or, to the knowledge of the Company,
are threatened by the Commission.  The Company, if required by the rules and regulations of the Commission, shall file
the Prospectus with the Commission pursuant to Rule 424(b).  At the time the Registration Statement and any amendments
thereto became effective, at the date of this Agreement and at the Closing Date, the Registration Statement and any amendments
thereto conformed and will conform in all material respects to the requirements of the Securities Act and did not and 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 not misleading (except to the extent superseded by subsequently filed SEC Reports); and the Prospectus
and any amendments or supplements thereto, at the time the Prospectus or any amendment or supplement thereto was issued and at
the Closing Date, conformed and will conform in all material respects to the requirements of the Securities Act and did not and
will not contain an untrue statement of a material fact or omit to state a material fact necessary in order to make the statements
therein, in light of the circumstances under which they were made, not misleading (except to the extent superseded by subsequently
filed SEC Reports).

 

(g)Capitalization. 
The capitalization of the Company is as set forth on Schedule 3.1(g).  The Company has not issued any capital
stock since its most recently filed periodic report under the Exchange Act, other than pursuant to the conversion and/or exercise
of Common Stock Equivalents outstanding as of the date of the most recently filed periodic report under the Exchange Act. 
No Person has any right of first refusal, preemptive right, right of participation, or any similar right to participate in the
transactions contemplated by the Transaction Documents.  Except as set forth on Schedule 3.1(g) and a result
of the purchase and sale of the Securities, there are no outstanding options, warrants, scrip rights to subscribe to, calls or
commitments of any character whatsoever relating to, or securities, rights or obligations convertible into or exercisable or exchangeable
for, or giving any Person any right to subscribe for or acquire, any shares of Common Stock or the capital stock of any Subsidiary,
or contracts, commitments, understandings or arrangements by which the Company or any Subsidiary is or may become bound to issue
additional shares of Common Stock or Common Stock Equivalents or capital stock of any Subsidiary.  Except as set forth on
Schedule 3.1(g), the issuance and sale of the Securities will not obligate the Company or any Subsidiary to issue shares
of Common Stock or other securities to any Person (other than the Purchasers).  Except as set forth on Schedule 3.1(g),
there are no outstanding securities or instruments of the Company or any Subsidiary with any provision that adjusts the exercise,
conversion, exchange or reset price under any of such securities. There are no outstanding securities or instruments of the Company
or any Subsidiary that contain any redemption or similar provisions, and there are no contracts, commitments, understandings or
arrangements by which the Company or any Subsidiary is or may become bound to redeem a security of the Company or such Subsidiary. 
The Company does not have any “phantom stock” plans or agreements or any similar plan or agreement. All of the outstanding
shares of capital stock of the Company are duly authorized, validly issued, fully paid and nonassessable, have been issued in compliance
with all federal and state securities laws, and none of such outstanding shares was issued in violation of any preemptive rights
or similar rights to subscribe for or purchase securities.  Except for the approval of the NYSE American to list the Shares
and Warrant Shares and the conditional approval of the Toronto Stock Exchange to list the Shares and Warrant Shares, no further
approval or authorization of any stockholder, the Board of Directors or others is required for the issuance and sale of the Securities.   
There are no stockholders agreements, voting agreements or other similar agreements with respect to the Company’s capital
stock to which the Company is a party or, to the knowledge of the Company, between or among any of the Company’s stockholders.

 

     

     

    

 

(h)SEC Reports; Financial Statements. 
The Company has filed all reports, schedules, forms, statements and other documents required to be filed by the Company under the
Securities Act and the Exchange Act, including pursuant to Section 13(a) or 15(d) thereof, for the two years preceding
the date hereof (or such shorter period as the Company was required by law or regulation to file such material) (the foregoing
materials, including the exhibits thereto and documents incorporated by reference therein, together with the Prospectus and the
Prospectus Supplement, being collectively referred to herein as the “SEC Reports”) on a timely basis or has
received a valid extension of such time of filing and has filed any such SEC Reports prior to the expiration of any such extension. 
As of their respective dates, the SEC Reports complied in all material respects with the requirements of the Securities Act and
the Exchange Act, as applicable, and none of the SEC Reports, when filed, contained any untrue statement of a material fact or
omitted to state a material fact required to be stated therein or necessary in order to make the statements therein, in the light
of the circumstances under which they were made, not misleading (except to the extent superseded by subsequently filed SEC Reports).   
The Company has never been an issuer subject to Rule 144(i) under the Securities Act.  The financial statements
of the Company included in the SEC Reports comply in all material respects with applicable accounting requirements and the rules and
regulations of theCommission with respect thereto as in effect at the time of filing.  Such financial statements have been
prepared in accordance with United States generally accepted accounting principles applied on a consistent basis during the periods
involved (“GAAP”), except as may be otherwise specified in such financial statements or the notes thereto and
except that unaudited financial statements may not contain all footnotes required by GAAP, and fairly present in all material respects
the financial position of the Company and its consolidated Subsidiaries as of and for the dates thereof and the results of operations
and cash flows for the periods then ended, subject, in the case of unaudited statements, to normal, immaterial, year-end audit
adjustments.

 

(i)Material Changes; Undisclosed
Events, Liabilities or Developments.  Since the date of the latest audited financial statements included within the SEC
Reports, except as specifically disclosed in a subsequent SEC Report filed prior to the date hereof, (i) there has been no
event, occurrence or development that has had or that could reasonably be expected to result in a Material Adverse Effect, (ii) the
Company has not incurred any liabilities (contingent or otherwise) other than (A) trade payables and accrued expenses incurred
in the ordinary course of business consistent with past practice and (B) liabilities not required to be reflected in the Company’s
financial statements pursuant to GAAP or disclosed in filings made with the Commission, (iii) the Company has not altered
its method of accounting, (iv) the Company has not declared or made any dividend or distribution of cash or other property
to its stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock and (v) the
Company has not issued any equity securities to any officer, director or Affiliate, except pursuant to existing Company equity
incentive plans.  The Company does not have pending before the Commission any request for confidential treatment of information. 
Except for the issuance of the Securities contemplated by this Agreement or as set forth on Schedule 3.1(i), no event,
liability, fact, circumstance, occurrence or development has occurred or exists or is reasonably expected to occur or exist with
respect to the Company or its Subsidiaries or their respective businesses, prospects, properties, operations, assets or financial
condition that would be required to be disclosed by the Company under applicable securities laws at the time this representation
is made or deemed made that has not been publicly disclosed at least one (1) Trading Day prior to the date that this representation
is made.

 

(j)Litigation.  There
is no action, suit, inquiry, notice of violation, proceeding or investigation pending or, to the knowledge of the Company, threatened
against or affecting the Company, any Subsidiary or any of their respective properties before or by any court, arbitrator, governmental
or administrative agency or regulatory authority (federal, state, county, local or foreign) (collectively, an “Action”)
which (i) adversely affects or challenges the legality, validity or enforceability of any of the Transaction Documents or
the Securities or (ii) could, if there were an unfavorable decision, have or reasonably be expected to result in a Material
Adverse Effect.  Neither the Company nor any Subsidiary, nor any director or officer thereof, is or has been the subject of
any Action involving a claim of violation of or liability under federal or state securities laws or a claim of breach of fiduciary
duty.  There has not been, and to the knowledge of the Company, there is not pending or contemplated, any investigation by
the Commission involving the Company or any current or former director or officer of the Company.  The Commission has not
issued any stop order or other order suspending the effectiveness of any registration statement filed by the Company or any Subsidiary
under the Exchange Act or the Securities Act.

 

(k)Labor Relations. 
No labor dispute exists or, to the knowledge of the Company, is imminent with respect to any of the employees of the Company, which
could reasonably be expected to result in a Material Adverse Effect.  Except as set forth on Schedule 3.1(k), none of the
Company’s or its Subsidiaries’ employees is a member of a union that relates to such employee’s relationship
with the Company or such Subsidiary, and neither the Company nor any of its Subsidiaries is a party to a collective bargaining
agreement, and the Company and its Subsidiaries believe that their relationships with their employees are good.  To the knowledge
of the Company, no executive officer of the Company or any Subsidiary, is, or is now expected to be, in violation of any material
term of any employment contract, confidentiality, disclosure or proprietary information agreement or non-competition agreement,
or any other contract or agreement or any restrictive covenant in favor of any third party, and the continued employment of each
such executive officer does not subject the Company or any of its Subsidiaries to any liability with respect to any of the foregoing
matters.  The Company and its Subsidiaries are in compliance with all U.S. federal, state, local and foreign laws and regulations
relating to employment and employment practices, terms and conditions of employment and wages and hours, except where the failure
to be in compliance could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

 

(l)Compliance.  Neither
the Company nor any Subsidiary: (i) is in default under or in violation of (and no event has occurred that has not been waived
that, with notice or lapse of time or both, would result in a default by the Company or any Subsidiary under), nor has the Company
or any Subsidiary received notice of a claim that it is in default under or that it is in violation of, any indenture, loan or
credit agreement or any other agreement or instrument to which it is a party or by which it or any of its properties is bound (whether
or not such default or violation has been waived), (ii) is in violation of any judgment, decree or order of any court, arbitrator
or other governmental authority or (iii) is or has been in violation of any statute, rule, ordinance or regulation of any
governmental authority, including without limitation all foreign, federal, state and local laws relating to taxes, environmental
protection, occupational health and safety, product quality and safety and employment and labor matters, except in each case as
could not have or reasonably be expected to result in a Material Adverse Effect.

 

     

     

    

 

(m)Environmental Laws. 
The Company and its Subsidiaries (i) are in compliance with all federal, state, local and foreign laws relating to pollution
or protection of human health or the environment (including ambient air, surface water, groundwater, land surface or subsurface
strata), including laws relating to emissions, discharges, releases or threatened releases of chemicals, pollutants, contaminants,
or toxic or hazardous substances or wastes (collectively, “Hazardous Materials”) into the environment, or otherwise
relating to the manufacture, processing, distribution, use, treatment, storage, disposal, transport or handling of Hazardous Materials,
as well as all authorizations, codes, decrees, demands, or demand letters, injunctions, judgments, licenses, notices or notice
letters, orders, permits, plans or regulations, issued, entered, promulgated or approved thereunder (“Environmental Laws”);
(ii) have received all permits licenses or other approvals required of them under applicable Environmental Laws to conduct
their respective businesses as currently conducted; and (iii) are in compliance with all terms and conditions of any such
permit, license or approval where in each clause (i), (ii) and (iii), the failure to so comply could be reasonably expected
to have, individually or in the aggregate, a Material Adverse Effect.

 

(n)Regulatory Permits. 
The Company and the Subsidiaries possess all certificates, authorizations and permits issued by the appropriate federal, state,
local or foreign regulatory authorities necessary to conduct their respective businesses as currently conducted and as described
in the SEC Reports, except where the failure to possess such permits could not reasonably be expected to result in a Material Adverse
Effect (“Material Permits”), and neither the Company nor any Subsidiary has received any notice of proceedings
relating to the revocation or modification of any Material Permit.

 

(o)Title to Assets. 
The Company and the Subsidiaries have good and marketable title in fee simple to all real property (other than the Mining Claims
(as defined below)) owned by them and good and marketable title in all personal property owned by them that is material to the
business of the Company and the Subsidiaries, in each case free and clear of all Liens, except for (i) Liens described in
the Registration Statement or Prospectus, (ii) Liens as do not materially affect the value of such property and do not materially
interfere with the use made and proposed to be made of such property by the Company and the Subsidiaries and (iii) Liens for
the payment of federal, state or other taxes, for which appropriate reserves have been made therefor in accordance with GAAP and,
the payment of which is neither delinquent nor subject to penalties.  Except for the Mining Claims, any real property and
facilities held under lease by the Company and the Subsidiaries are held by them under valid, subsisting and enforceable leases
with which the Company and the Subsidiaries are in compliance.

 

(p)Mining Claims. 
All interests in material mining claims, concessions, exploitation or extraction rights or similar rights (the “Mining
Claims”) that are held by the Company or any of its Subsidiaries are or will be fairly and accurately described in the
Registration Statement and the Prospectus in all material respects and are in good standing, are valid and enforceable, and are
free and clear of any material Liens or charges, except as disclosed in the Registration Statement and the Prospectus.

 

(q)Intellectual Property. 
The Company and the Subsidiaries have, or have rights to use, all patents, patent applications, trademarks, trademark applications,
service marks, trade names, trade secrets, inventions, copyrights, licenses and other intellectual property rights and similar
rights necessary or required for use in connection with their respective businesses as described in the SEC Reports and which the
failure to so have could reasonably be expected to have a Material Adverse Effect (collectively, the “Intellectual Property
Rights”).  None of, and neither the Company nor any Subsidiary has received a notice (written or otherwise) that
any of, the Intellectual Property Rights has expired, terminated or been abandoned, or is expected to expire or terminate or be
abandoned, within two (2) years from the date of this Agreement.  Neither the Company nor any Subsidiary has received,
since the date of the latest audited financial statements included within the SEC Reports, a written notice of a claim or otherwise
has any knowledge that the Intellectual Property Rights violate or infringe upon the rights of any Person, except as do not have
or would not reasonably be expected to have a Material Adverse Effect.  To the knowledge of the Company, all such Intellectual
Property Rights are enforceable and there is no existing infringement by another Person of any of the Intellectual Property Rights. 
The Company and its Subsidiaries have taken reasonable security measures to protect the secrecy, confidentiality and value of all
of their intellectual properties, except where failure to do so could not, individually or in the aggregate, reasonably be expected
to have a Material Adverse Effect.

 

(r)Insurance.  The
Company and the Subsidiaries are insured by insurers of recognized financial responsibility against such losses and risks and in
such amounts as are prudent and customary in the businesses in which the Company and the Subsidiaries are engaged, including, but
not limited to, directors and officers insurance coverage at least equal to the aggregate Subscription Amount.  Neither the
Company nor any Subsidiary has any reason to believe that it will not be able to renew its existing insurance coverage as and when
such coverage expires or to obtain similar coverage from similar insurers as may be necessary to continue its business without
a significant increase in cost.

 

    

     

    

 

(s)Transactions With Affiliates
and Employees.  Except as set forth in the SEC Reports, none of the officers or directors of the Company or any Subsidiary
and, to the knowledge of the Company, none of the employees of the Company or any Subsidiary is presently a party to any transaction
with the Company or any Subsidiary (other than for services as employees, officers and directors), including any contract, agreement
or other arrangement providing for the furnishing of services to or by, providing for rental of real or personal property to or
from, providing for the borrowing of money from or lending of money to or otherwise requiring payments to or from any officer,
director or such employee or, to the knowledge of the Company, any entity in which any officer, director, or any such employee
has a substantial interest or is an officer, director, trustee, stockholder, member or partner, in each case in excess of $120,000
other than for (i) payment of salary or consulting fees for services rendered, (ii) reimbursement for expenses incurred
on behalf of the Company and (iii) other employee benefits, including equity incentive agreements under any equity incentive
plan of the Company.

 

(t)Sarbanes-Oxley; Internal
Accounting Controls.  The Company and the Subsidiaries are in compliance in all material respects with any and all applicable
requirements of the Sarbanes-Oxley Act of 2002 that are effective as of the date hereof, and any and all applicable rules and
regulations promulgated by the Commission thereunder that are effective as of the date hereof and as of the Closing Date. 
The Company and the Subsidiaries maintain a system of internal accounting controls sufficient to provide reasonable assurance that:
(i) transactions are executed in accordance with management’s general or specific authorizations, (ii) transactions
are recorded as necessary to permit preparation of financial statements in conformity with GAAP and to maintain asset accountability,
(iii) access to assets is permitted only in accordance with management’s general or specific authorization, and (iv) the
recorded accountability for assets is compared with the existing assets at reasonable intervals and appropriate action is taken
with respect to any differences.  The Company and the Subsidiaries have established disclosure controls and procedures (as
defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the Company and the Subsidiaries and designed such disclosure
controls and procedures to ensure that information required to be disclosed by the Company in the reports it files or submits under
the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the Commission’s rules and
forms.  The Company’s certifying officers have evaluated the effectiveness of the disclosure controls and procedures
of the Company and the Subsidiaries as of the end of the period covered by the most recently filed periodic report under the Exchange
Act (such date, the “Evaluation Date”).  The Company presented in its most recently filed periodic report
under the Exchange Act the conclusions of the certifying officers about the effectiveness of the disclosure controls and procedures
based on their evaluations as of the Evaluation Date.  Since the Evaluation Date, there have been no changes in the internal
control over financial reporting (as such term is defined in the Exchange Act) of the Company and its Subsidiaries that have materially
affected, or is reasonably likely to materially affect, the internal control over financial reporting of the Company and its Subsidiaries.

 

(u)Certain Fees. 
Except as set forth in the Prospectus Supplement, no brokerage or finder’s fees or commissions are or will be payable by
the Company or any Subsidiary to any broker, financial advisor or consultant, finder, placement agent, investment banker, bank
or other Person with respect to the transactions contemplated by the Transaction Documents.  The Purchasers shall have no
obligation with respect to any fees or with respect to any claims made by or on behalf of other Persons for fees of a type contemplated
in this Section that may be due in connection with the transactions contemplated by the Transaction Documents.

 

(v)Private Placement. Assuming
the accuracy of the Purchasers’ representations and warranties set forth in Section 3.2, no registration under
the Securities Act is required for the offer and sale of the Securities by the Company to the Purchasers as contemplated hereby. 
The issuance and sale of the Securities hereunder does not contravene the rules and regulations of the Trading Market.

 

(w)Investment Company.
The Company is not, and is not an Affiliate of, and immediately after receipt of payment for the Securities, will not be or be
an Affiliate of, an “investment company” within the meaning of the Investment Company Act of 1940, as amended. 
The Company shall conduct its business in a manner so that it will not become an “investment company” subject to registration
under the Investment Company Act of 1940, as amended.

 

    

     

    

 

(x)Registration Rights. 
Except as set forth on Schedule 3.1(x), no Person has any right to cause the Company or any Subsidiary to effect the registration
under the Securities Act of any securities of the Company or any Subsidiary.

 

(y)Listing and Maintenance
Requirements.  The Common Stock is registered pursuant to Section 12(b) or 12(g) of the Exchange Act, and
the Company has taken no action designed to, or which to its knowledge is likely to have the effect of, terminating the registration
of the Common Stock under the Exchange Act nor has the Company received any notification that the Commission is contemplating terminating
such registration.  Except as set forth on Schedule 3.1(y) the Company has not, in the 12 months preceding the date hereof,
received notice from any Trading Market on which the Common Stock is or has been listed or quoted to the effect that the Company
is not in compliance with the listing or maintenance requirements of such Trading Market. The Company is, and has no reason to
believe that it will not in the foreseeable future continue to be, in compliance with all such listing and maintenance requirements.
The Common Stock is currently eligible for electronic transfer through the Depository Trust Company or another established clearing
corporation and the Company is current in payment of the fees to the Depository Trust Company (or such other established clearing
corporation) in connection with such electronic transfer.

 

(z)Application of Takeover
Protections.  The Company and the Board of Directors have taken all necessary action, if any, in order to render inapplicable
any control share acquisition, business combination, poison pill (including any distribution under a rights agreement) or other
similar anti-takeover provision under the Company’s certificate of incorporation (or similar charter documents) or the laws
of its state of incorporation that is or could become applicable to the Purchasers as a result of the Purchasers and the Company
fulfilling their obligations or exercising their rights under the Transaction Documents, including without limitation as a result
of the Company’s issuance of the Securities and the Purchasers’ ownership of the Securities.

 

(aa)Disclosure.  Except
with respect to the material terms and conditions of the transactions contemplated by the Transaction Documents, the Company confirms
that neither it nor any other Person acting on its behalf has provided any of the Purchasers or their agents or counsel with any
information that it believes constitutes or might constitute material, non-public information which is not otherwise disclosed
in the Prospectus Supplement.  The Company understands and confirms that the Purchasers will rely on the foregoing representation
in effecting transactions in securities of the Company.  All of the disclosure furnished by or on behalf of the Company to
the Purchasers regarding the Company and its Subsidiaries, their respective businesses and the transactions contemplated hereby,
including the Disclosure Schedules to this Agreement, is true and correct and does not contain any untrue statement of a material
fact or omit to state any material fact necessary in order to make the statements made therein, in light of the circumstances under
which they were made, not misleading.  The Company acknowledges and agrees that no Purchaser makes or has made any representations
or warranties with respect to the transactions contemplated hereby other than those specifically set forth in Section 3.2
hereof.

 

(bb)No Integrated Offering.
Assuming the accuracy of the Purchasers’ representations and warranties set forth in Section 3.2, neither the
Company, nor any of its Affiliates, nor any Person acting on its or their behalf has, directly or indirectly, made any offers or
sales of any security or solicited any offers to buy any security, under circumstances that would cause this offering of the Securities
to be integrated with prior offerings by the Company for purposes of (i) the Securities Act which would require the registration
of any such securities under the Securities Act or (ii) any applicable shareholder approval provisions of any Trading Market
on which any of the securities of the Company are listed or designated.

 

    

     

    

 

(cc)Solvency.  Based
on the consolidated financial condition of the Company as of the Closing Date, after giving effect to the receipt by the Company
of the proceeds from the sale of the Securities hereunder, (i) the fair saleable value of the Company’s assets exceeds
the amount that will be required to be paid on or in respect of the Company’s existing debts and other liabilities (including
known contingent liabilities) as they mature and (ii) the Company’s assets do not constitute unreasonably small capital
to carry on its business as now conducted and as proposed to be conducted including its capital needs taking into account the particular
capital requirements of the business conducted by the Company, consolidated and projected capital requirements and capital availability
thereof.  The Company does not intend to incur debts beyond its ability to pay such debts as they mature (taking into account
the timing and amounts of cash to be payable on or in respect of its debt).  The Company has no knowledge of any facts or
circumstances which lead it to believe that it will file for reorganization or liquidation under the bankruptcy or reorganization
laws of any jurisdiction within one (1) year from the Closing Date.  Schedule 3.1(cc) sets forth as
of the date hereof all outstanding secured and unsecured Indebtedness of the Company or any Subsidiary, or for which the Company
or any Subsidiary has commitments.  For the purposes of this Agreement, “Indebtedness” means (x) any
liabilities for borrowed money or amounts owed in excess of $50,000 (other than trade accounts and salaries and wages payable incurred
in the ordinary course of business), (y) all guaranties, endorsements and other contingent obligations in respect of indebtedness
of others, whether or not the same are or should be reflected in the Company’s consolidated balance sheet (or the notes thereto),
except guaranties by endorsement of negotiable instruments for deposit or collection or similar transactions in the ordinary course
of business; and (z) the present value of any lease payments in excess of $50,000 due under leases required to be capitalized
in accordance with GAAP.  Neither the Company nor any Subsidiary is in default with respect to any Indebtedness.

 

(dd)Tax Status.  Except
for matters that would not, individually or in the aggregate, have or reasonably be expected to result in a Material Adverse Effect,
the Company and its Subsidiaries each (i) has made or filed all United States federal, state and local income and all foreign
income and franchise tax returns, reports and declarations required by any jurisdiction to which it is subject, (ii) has paid
all taxes and other governmental assessments and charges that are material in amount, shown or determined to be due on such returns,
reports and declarations and (iii) has set aside on its books provision reasonably adequate for the payment of all material
taxes for periods subsequent to the periods to which such returns, reports or declarations apply.  There are no unpaid taxes
in any material amount claimed to be due by the taxing authority of any jurisdiction, and the officers of the Company or of any
Subsidiary know of no basis for any such claim.

 

(ee)No General Solicitation. 
Neither the Company nor any Person acting on behalf of the Company has offered or sold any of the Securities by any form of general
solicitation or general advertising.  The Company has offered the Securities for sale only to the Purchasers and certain other
 “accredited investors” within the meaning of Rule 501 under the Securities Act.

 

(ff)Foreign Corrupt Practices. 
Neither the Company nor any Subsidiary, nor to the knowledge of the Company or any Subsidiary, any agent or other person acting
on behalf of the Company or any Subsidiary, has (i) directly or indirectly, used any corporate funds for unlawful contributions,
gifts, entertainment or other unlawful expenses related to foreign or domestic political activity, (ii) made any unlawful
payment to foreign or domestic government officials or employees or to any foreign or domestic political parties or campaigns from
corporate funds, (iii) failed to disclose fully any contribution made by the Company or any Subsidiary (or made by any person
acting on its behalf of which the Company is aware) which is in violation of law, or (iv) violated in any material respect
any provision of the FCPA.

 

(gg)Acknowledgment Regarding
Purchasers’ Purchase of Securities.  The Company acknowledges and agrees that each of the Purchasers is acting solely
in the capacity of an arm’s length purchaser with respect to the Transaction Documents and the transactions contemplated
thereby.  The Company further acknowledges that no Purchaser is acting as a financial advisor or fiduciary of the Company
(or in any similar capacity) with respect to the Transaction Documents and the transactions contemplated thereby and any advice
given by any Purchaser or any of their respective representatives or agents in connection with the Transaction Documents and the
transactions contemplated thereby is merely incidental to the Purchasers’ purchase of the Securities.  The Company further
represents to each Purchaser that the Company’s decision to enter into this Agreement and the other Transaction Documents
has been based solely on the independent evaluation of the transactions contemplated hereby by the Company and its representatives.

 

    

     

    

 

(hh)Acknowledgement Regarding
Purchaser’s Trading Activity.  Anything in this Agreement or elsewhere herein to the contrary notwithstanding (except
for Sections 3.2(f) and 4.14 hereof), it is understood and acknowledged by the Company that: (i) none
of the Purchasers has been asked by the Company to agree, nor has any Purchaser agreed, to desist from purchasing or selling, long
and/or short, securities of the Company, or “derivative” securities based on securities issued by the Company or to
hold the Securities for any specified term after the date of this Agreement; (ii) past or future open market or other transactions
by any Purchaser, specifically including, without limitation, Short Sales or “derivative” transactions, before or after
the closing of this or future private placement transactions, may negatively impact the market price of the Company’s publicly-traded
securities; (iii) any Purchaser, and counter-parties in “derivative” transactions to which any such Purchaser
is a party, directly or indirectly, presently may have a “short” position in the Common Stock, and (iv) each Purchaser
shall not be deemed to have any affiliation with or control over any arm’s length counter-party in any “derivative”
transaction.  The Company further understands and acknowledges that (y) one or more Purchasers may engage in hedging
activities at various times during the period that the Securities are outstanding, including, without limitation, during the periods
that the value of the Warrant Shares deliverable with respect to Securities are being determined, and (z) such hedging activities
(if any) could reduce the value of the existing stockholders’ equity interests in the Company at and after the time that
the hedging activities are being conducted.  The Company acknowledges that such aforementioned hedging activities do not constitute
a breach of any of the Transaction Documents.

 

(ii)Regulation M Compliance. 
The Company has not, and to its knowledge no one acting on its behalf has, (i) taken, directly or indirectly, any action designed
to cause or to result in the stabilization or manipulation of the price of any security of the Company to facilitate the sale or
resale of any of the Securities, (ii) sold, bid for, purchased, or, paid any compensation for soliciting purchases of, any
of the Securities, or (iii) paid or agreed to pay to any Person any compensation for soliciting another to purchase any other
securities of the Company, other than, in the case of clauses (ii) and (iii), compensation paid to the Company’s
placement agent in connection with the placement of the Securities.

 

(jj)Office of Foreign Assets
Control.  Neither the Company nor any Subsidiary nor, to the Company’s knowledge, any director, officer, agent,
employee or affiliate of the Company  or any Subsidiary is currently subject to any U.S. sanctions administered by the Office
of Foreign Assets Control of the U.S. Treasury Department (“OFAC”).

 

(kk)U.S. Real Property Holding
Corporation.  The Company is not and has never been a U.S. real property holding corporation within the meaning of Section 897
of the Internal Revenue Code of 1986, as amended, and the Company shall so certify upon Purchaser’s request.

 

(ll)Bank Holding Company Act. 
Neither the Company nor any of its Subsidiaries or Affiliates is subject to the Bank Holding Company Act of 1956, as amended (the
 “BHCA”) and to regulation by the Board of Governors of the Federal Reserve System (the “Federal Reserve”). 
Neither the Company nor any of its Subsidiaries or Affiliates owns or controls, directly or indirectly, five percent (5%) or more
of the outstanding shares of any class of voting securities or twenty-five percent (25%) or more of the total equity of a bank
or any entity that is subject to the BHCA and to regulation by the Federal Reserve.  Neither the Company nor any of its Subsidiaries
or Affiliates exercises a controlling influence over the management or policies of a bank or any entity that is subject to the
BHCA and to regulation by the Federal Reserve.

 

(mm)Money Laundering. 
The operations of the Company and its Subsidiaries are and have been conducted at all times in compliance in all material respects
with applicable financial record-keeping and reporting requirements of the Currency and Foreign Transactions Reporting Act of 1970,
as amended, applicable money laundering statutes and applicable rules and regulations thereunder (collectively, the “Money
Laundering Laws”), and no Action or Proceeding by or before any court or governmental agency, authority or body or any
arbitrator involving the Company or any Subsidiary with respect to the Money Laundering Laws is pending or, to the knowledge of
the Company or any Subsidiary, threatened.

 

    

     

    

 

(nn)No Disqualification Events.
  With respect to the Securities to be offered and sold hereunder in reliance on Rule 506 under the Securities Act, none
of the Company, any of its predecessors, any affiliated issuer, any director, executive officer, other officer of the Company participating
in the offering hereunder, any beneficial owner of 20% or more of the Company’s outstanding voting equity securities, calculated
on the basis of voting power, nor any promoter (as that term is defined in Rule 405 under the Securities Act) connected with
the Company in any capacity at the time of sale (each, an “Issuer Covered Person” and, together, “Issuer
Covered Persons”) is subject to any of the “Bad Actor” disqualifications described in Rule 506(d)(1)(i) to
(viii) under the Securities Act (a “Disqualification Event”), except for a Disqualification Event covered
by Rule 506(d)(2) or (d)(3). The Company has exercised reasonable care to determine whether any Issuer Covered Person
is subject to a Disqualification Event. The Company has complied, to the extent applicable, with its disclosure obligations under
Rule 506(e), and has furnished to the Purchasers a copy of any disclosures provided thereunder.

 

(oo)Other Covered Persons.
Other than the Placement Agent, the Company is not aware of any person (other than any Issuer Covered Person) that has been or
will be paid (directly or indirectly) remuneration for solicitation of purchasers in connection with the sale of any Regulation D
Securities.

 

(pp)Notice of Disqualification
Events. The Company will notify the Purchasers and the Placement Agent in writing, prior to the Closing Date of (i) any
Disqualification Event relating to any Issuer Covered Person and (ii) any event that would, with the passage of time, become
a Disqualification Event relating to any Issuer Covered Person.

 

3.2Representations and Warranties of
the Purchasers.  Each Purchaser, for itself and for no other Purchaser, hereby represents and warrants as of the date
hereof and as of the Closing Date to the Company as follows (unless as of a specific date therein, in which case they shall be
accurate as of such date):

 

(a)Organization; Authority. 
Such Purchaser is either an individual or an entity duly incorporated or formed, validly existing and in good standing under the
laws of the jurisdiction of its incorporation or formation with full right, corporate, partnership, limited liability company or
similar power and authority to enter into and to consummate the transactions contemplated by the Transaction Documents and otherwise
to carry out its obligations hereunder and thereunder. The execution and delivery of the Transaction Documents and performance
by such Purchaser of the transactions contemplated by the Transaction Documents have been duly authorized by all necessary corporate,
partnership, limited liability company or similar action, as applicable, on the part of such Purchaser.  Each Transaction
Document to which it is a party has been duly executed by such Purchaser, and when delivered by such Purchaser in accordance with
the terms hereof, will constitute the valid and legally binding obligation of such Purchaser, enforceable against it in accordance
with its terms, except: (i) as limited by general equitable principles and applicable bankruptcy, insolvency, reorganization,
moratorium and other laws of general application affecting enforcement of creditors’ rights generally, (ii) as limited
by laws relating to the availability of specific performance, injunctive relief or other equitable remedies and (iii) insofar
as indemnification and contribution provisions may be limited by applicable law.

 

(b)Understandings or Arrangements. 
Such Purchaser is acquiring the Securities as principal for its own account and has no direct or indirect arrangement or understandings
with any other persons to distribute or regarding the distribution of such Securities (this representation and warranty not limiting
such Purchaser’s right to sell the Securities pursuant to the Registration Statement or otherwise in compliance with applicable
federal and state securities laws).  Such Purchaser is acquiring the Securities hereunder in the ordinary course of its business. 
Such Purchaser understands that the Warrants and Warrant Shares are “restricted securities” and have not been registered
under the Securities Act or any applicable state securities law and is acquiring the Restricted Securities as principal for its
own account and not with a view to or for distributing or reselling such Restricted Securities or any part thereof in violation
of the Securities Act or any applicable state securities law, has no present intention of distributing any of such Restricted Securities
in violation of the Securities Act or any applicable state securities law and has no direct or indirect arrangement or understandings
with any other persons to distribute or regarding the distribution of such Restricted Securities in violation of the Securities
Act or any applicable state securities law (this representation and warranty not limiting such Purchaser’s right to sell
the Restricted Securities pursuant to a registration statement or otherwise in compliance with applicable federal and state securities
laws).

 

    

     

    

 

(c)Purchaser Status. 
At the time such Purchaser was offered the Securities, it was, and as of the date hereof it is, and on the Closing Date and on
each date on which it exercises any Warrants, it will be an “accredited investor” as defined in Rule 501(a)(1),
(a)(2), (a)(3), (a)(7) or (a)(8) under the Securities Act.

 

(d)Canadian Private Placement. 
Purchaser acknowledges that the Securities have not been registered or qualified for distribution in any Province or Territory
of Canada, and are not eligible for resale in Canada for a period ending four (4) months plus one day from the Closing Date
(the “Canadian Transfer Restriction”).  The Purchaser is acquiring the Securities for its own account and
not with a view toward, or for sale in connection with, any distribution thereof, or with any intention of distributing or selling
the Securities in any Province or Territory of Canada.

 

(e)Experience of Such Purchaser. 
Such Purchaser, either alone or together with its representatives, has such knowledge, sophistication and experience in business
and financial matters so as to be capable of evaluating the merits and risks of the prospective investment in the Securities, and
has so evaluated the merits and risks of such investment.  Such Purchaser is able to bear the economic risk of an investment
in the Securities and, at the present time, is able to afford a complete loss of such investment.

 

(f)Access to Information.
Such Purchaser acknowledges that it has had the opportunity to review the Transaction Documents (including all exhibits and schedules
thereto) and the SEC Reports and has been afforded, (i) the opportunity to ask such questions as it has deemed necessary of,
and to receive answers from, representatives of the Company concerning the terms and conditions of the offering of the Securities
and the merits and risks of investing in the Securities; (ii) access to information about the Company and its financial condition,
results of operations, business, properties, management and prospects sufficient to enable it to evaluate its investment; and (iii) the
opportunity to obtain such additional information that the Company possesses or can acquire without unreasonable effort or expense
that is necessary to make an informed investment decision with respect to the investment.  Such Purchaser acknowledges and
agrees that neither the Placement Agent nor any Affiliate of the Placement Agent has provided such Purchaser with any information
or advice with respect to the Securities nor is such information or advice necessary or desired.  Neither the Placement Agent
nor any Affiliate has made or makes any representation as to the Company or the quality of the Securities and the Placement Agent
and any Affiliate may have acquired non-public information with respect to the Company which such Purchaser agrees need not be
provided to it.  In connection with the issuance of the Securities to such Purchaser, neither the Placement Agent nor any
of its Affiliates has acted as a financial advisor or fiduciary to such Purchaser.

 

(g)Report of Trade. 
The Purchaser acknowledges that the Company may be required to file a report with the Canadian securities commissions or other
securities regulatory authorities containing personal information about the Purchaser.  This report will include the full
name, address and telephone number of the Purchaser, the number and type of securities purchased, the total purchase price paid
for the securities, the date of the closing and the exemption relied upon under applicable securities laws to complete such purchase.

 

(h)Canadian Legends. 
The Purchaser acknowledges that the Securities are not being qualified pursuant to a prospectus for distribution to the public
in Canada under applicable Canadian securities laws and are not freely tradeable in any Province or Territory of Canada. 
Any certificate representing the Shares, the Warrants and the Warrant Shares (if issued prior to the day that is four months and
one day after the Closing Date) will bear, or if such Shares, Warrants and Warrant Shares are entered into a direct registration
or other electronic book-entry system then the Purchaser acknowledges notice of such Securities being subject to, the legend set
forth below until the day that is four months and a one day after the Closing Date:

 

UNLESS PERMITTED UNDER APPLICABLE SECURITIES LEGISLATION,
THE HOLDER OF THIS SECURITY MUST NOT TRADE THE SECURITY IN CANADA BEFORE AUGUST 24, 2020.

 

    

     

    

 

In addition, the certificates
representing the Shares, and if issued before the day that is four months and one day after the Closing Date, the Warrant Shares,
will bear the following legend:

 

THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE LISTED
ON THE TORONTO STOCK EXCHANGE (“TSX”); HOWEVER, THE SAID SECURITIES CANNOT BE TRADED THROUGH THE FACILITIES OF THE
TSX SINCE THEY ARE NOT FREELY TRANSFERABLE, AND CONSEQUENTLY ANY CERTIFICATE REPRESENTING SUCH SECURITIES IS NOT “GOOD DELIVERY”
IN SETTLEMENT OF TRANSACTIONS ON THE TSX.

 

Notwithstanding anything herein
to the contrary, the terms of this Agreement and the Warrant require the Company to deliver the Shares and Warrant Shares, at the
Closing or upon exercise of the Warrants via the DWAC system and accordingly such Securities will have no restrictions on resale
on any facilities of the U.S. Trading Market.

 

(i)Certain Transactions and Confidentiality. 
Other than consummating the transactions contemplated hereunder, such Purchaser has not, nor has any Person acting on behalf of
or pursuant to any understanding with such Purchaser, directly or indirectly executed any purchases or sales, including Short Sales, of
the securities of the Company during the period commencing as of the time that such Purchaser first received a term sheet (written
or oral) from the Company or any other Person representing the Company setting forth the material terms of the transactions contemplated
hereunder and ending immediately prior to the execution hereof.  Notwithstanding the foregoing, in the case of a Purchaser
that is a multi-managed investment vehicle whereby separate portfolio managers manage separate portions of such Purchaser’s
assets and the portfolio managers have no direct knowledge of the investment decisions made by the portfolio managers managing
other portions of such Purchaser’s assets, the representation set forth above shall only apply with respect to the portion
of assets managed by the portfolio manager that made the investment decision to purchase the Securities covered by this Agreement. 
Other than to other Persons party to this Agreement or to such Purchaser’s representatives, including, without limitation,
its officers, directors, partners, legal and other advisors, employees, agents and Affiliates, such Purchaser has maintained the
confidentiality of all disclosures made to it in connection with this transaction (including the existence and terms of this transaction).
Notwithstanding the foregoing, for the avoidance of doubt, nothing contained herein shall constitute a representation or warranty,
or preclude any actions, with respect to the identification of the availability of, locating of, or securing of, available shares
to borrow in order to effect Short Sales or similar transactions in the future.

 

(j)General Solicitation. 
Such Purchaser is not purchasing the Securities as a result of any advertisement, article, notice or other communication regarding
the Securities published in any newspaper, magazine or similar media or broadcast over television or radio or presented at any
seminar or, to the knowledge of such Purchaser, any other general solicitation or general advertisement.

 

The Company acknowledges and agrees that the representations
contained in this Section 3.2 shall not modify, amend or affect such Purchaser’s right to rely on the Company’s
representations and warranties contained in this Agreement or any representations and warranties contained in any other Transaction
Document or any other document or instrument executed and/or delivered in connection with this Agreement or the consummation of
the transactions contemplated hereby.

 

ARTICLE IV.

OTHER AGREEMENTS
OF THE PARTIES

 

4.1Transfer Restrictions.

 

(a)The Shares shall be issued
free of all legends except that of the Canadian legend referred to in Section 3.2(h) if applicable.  The
Securities may only be disposed of in compliance with state and federal securities laws.  In connection with any transfer
of Restricted Securities other than pursuant to an effective registration statement or Rule 144, to the Company or to an Affiliate
of a Purchaser, the Company may require the transferor thereof to provide to the Company an opinion of counsel selected by the
transferor and reasonably acceptable to the Company, the form and substance of which opinion shall be reasonably satisfactory to
the Company, to the effect that such transfer does not require registration of such transferred Securities under the Securities
Act.  As a condition of transfer, any such transferee shall agree in writing to be bound by the terms of this Agreement and
shall have the rights and obligations of a Purchaser under this Agreement.

 

    

     

    

 

(b)In addition to the Canadian
legends referred to in Section 3.2(h), the Purchasers agree to the imprinting, so long as is required by this Section 4.1,
of a legend on any of the Warrants and Warrant Shares in the following form:

 

[NEITHER] THIS SECURITY [NOR THE SECURITIES INTO WHICH
THIS SECURITY IS EXERCISABLE] HAS [NOT] BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION
OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE
SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF
THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS. THIS SECURITY [AND THE SECURITIES ISSUABLE UPON EXERCISE
OF THIS SECURITY] MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT WITH A REGISTERED BROKER-DEALER OR OTHER LOAN
WITH A FINANCIAL INSTITUTION THAT IS AN “ACCREDITED INVESTOR” AS DEFINED IN RULE 501(a) UNDER THE SECURITIES
ACT OR OTHER LOAN SECURED BY SUCH SECURITIES.

 

The Company acknowledges and agrees that a Purchaser
may from time to time pledge pursuant to a bona fide margin agreement with a registered broker-dealer or grant a security interest
in some or all of the Securities to a financial institution that is an “accredited investor” as defined in Rule 501(a) under
the Securities Act, and, if required under the terms of such arrangement, such Purchaser may transfer pledged or secured Securities
to the pledgees or secured parties.  Such a pledge or transfer would not be subject to approval of the Company and no legal
opinion of legal counsel of the pledgee, secured party or pledgor shall be required in connection therewith.  Further, no
notice shall be required of such pledge.

 

(c)Certificates evidencing the
Warrant Shares shall not contain the legend set forth in Section 4.1(b) hereof, (i) following a sale under
an effective registration statement covering the resale of such security, (ii) following any sale of such Warrant Shares pursuant
to Rule 144, if such Warrant Shares are eligible for sale under Rule 144, or (iii) if the Warrant Shares are eligible
for sale under Rule 144 by the holder thereof without reference to volume, manner of sale or public information requirements. 
The Company shall cause its counsel to issue a legal opinion to the Transfer Agent if required by the Transfer Agent to effect
the removal of the legend hereunder.  If all or any portion of a Warrant is exercised at a time when such Warrant Shares may
be sold under Rule 144 by the holder thereof without reference to volume, manner of sale or public information requirements,
then such Warrant Shares shall be issued free of all legends.  The Company agrees that upon notice of sale of Warrant Shares
at such time as such legend is no longer required under this Section 4.1(c), it will, no later than two Trading Days
following the delivery by a Purchaser to the Company or the Transfer Agent of a certificate representing Warrant Shares, as the
case may be, issued with a restrictive legend (such third Trading Day, the “Legend Removal Date”), deliver or
cause to be delivered to such Purchaser a certificate representing such shares that is free from all restrictive and other legends. 
The Company may not make any notation on its records or give instructions to the Transfer Agent that enlarge the restrictions on
transfer set forth in this Section 4.  Certificates for Securities subject to legend removal hereunder shall be
transmitted by the Transfer Agent to the Purchaser by crediting the account of the Purchaser’s prime broker with the Depository
Trust Company System as directed by such Purchaser.

 

(d)Each Purchaser, severally and
not jointly with the other Purchasers, agrees with the Company that such Purchaser will sell any Securities pursuant to either
the registration requirements of the Securities Act, including any applicable prospectus delivery requirements, or an exemption
therefrom, and that if Securities are sold pursuant to a registration statement, they will be sold in compliance with the plan
of distribution set forth therein, and acknowledges that the removal of the restrictive legend from certificates representing Securities
as set forth in this Section 4.1 is predicated upon the Company’s reliance upon this understanding.

 

     

     

    

 

4.2Furnishing of Information. 
Until the earliest of the time that (i) no Purchaser owns Restricted Securities or (ii) the Warrants have expired, the
Company covenants to timely file (or obtain extensions in respect thereof and file within the applicable grace period) all reports
required to be filed by the Company after the date hereof pursuant to the Exchange Act even if the Company is not then subject
to the reporting requirements of the Exchange Act.  At any time during the period commencing from the six (6) month anniversary
of the date hereof and ending at such time that all of the Warrant Shares (assuming cashless exercise) may be sold without the
requirement for the Company to be in compliance with Rule 144(c)(1) and otherwise without restriction or limitation pursuant
to Rule 144, if the Company (i) shall fail for any reason to satisfy the current public information requirement under
Rule 144(c) or (ii) has ever been an issuer described in Rule 144(i)(1)(i) or becomes an issuer in the
future, and the Company shall fail to satisfy any condition set forth in Rule 144(i)(2) (a “Public Information
Failure”) then, in addition to such Purchaser’s other available remedies, the Company shall pay to a Purchaser,
in cash, as partial liquidated damages and not as a penalty, by reason of any such delay in or reduction of its ability to sell
the Warrant Shares, an amount in cash equal to two percent (2.0%) of the aggregate Exercise Price of such Purchaser’s Warrants
on the day of a Public Information Failure and on every thirtieth (30th) day (pro-rated for periods totaling less than thirty days)
thereafter until the earlier of (a) the date such Public Information Failure is cured and (b) such time that such public
information is no longer required  for the Purchasers to transfer the Warrant Shares pursuant to Rule 144.  The
payments to which a Purchaser shall be entitled pursuant to this Section 4.2(b) are referred to herein as “Public
Information Failure Payments.”  Public Information Failure Payments shall be paid on the earlier of (i) the
last day of the calendar month during which such Public Information Failure Payments are incurred and (ii) the third (3rd)
Business Day after the event or failure giving rise to the Public Information Failure Payments is cured.  In the event the
Company fails to make Public Information Failure Payments in a timely manner, such Public Information Failure Payments shall bear
interest at the rate of 1.5% per month (prorated for partial months) until paid in full. Nothing herein shall limit such Purchaser’s
right to pursue actual damages for the Public Information Failure, and such Purchaser shall have the right to pursue all remedies
available to it at law or in equity including, without limitation, a decree of specific performance and/or injunctive relief.

 

4.3Integration.  The Company
shall not sell, offer for sale or solicit offers to buy or otherwise negotiate in respect of any security (as defined in Section 2
of the Securities Act) that would be integrated with the offer or sale of the Securities in a manner that would require the registration
under the Securities Act of the sale of the Restricted Securities or that would be integrated with the offer or sale of the Restricted
Securities for purposes of the rules and regulations of any Trading Market such that it would require shareholder approval
prior to the closing of such other transaction unless shareholder approval is obtained before the closing of such subsequent transaction.

 

4.4Securities Laws Disclosure; Publicity. 
The Company shall (a) by the Disclosure Time, issue a press release disclosing the material terms of the transactions contemplated
hereby, and (b) file a Current Report on Form 8-K, including the Transaction Documents as exhibits thereto, with the
Commission within the time required by the Exchange Act.  From and after the issuance of such press release, the Company represents
to the Purchasers that it shall have publicly disclosed all material, non-public information delivered to any of the Purchasers
by the Company or any of its Subsidiaries, or any of their respective officers, directors, employees or agents in connection with
the transactions contemplated by the Transaction Documents.  In addition, effective upon the issuance of such press release,
the Company acknowledges and agrees that any and all confidentiality or similar obligations under any agreement, whether written
or oral, between the Company, any of its Subsidiaries or any of their respective officers, directors, agents, employees or Affiliates
on the one hand, and any of the Purchasers or any of their Affiliates on the other hand, shall terminate. The Company and each
Purchaser shall consult with each other in issuing any other press releases with respect to the transactions contemplated hereby,
and neither the Company nor any Purchaser shall issue any such press release nor otherwise make any such public statement without
the prior consent of the Company, with respect to any press release of any Purchaser, or without the prior consent of each Purchaser,
with respect to any press release of the Company, which consent shall not unreasonably be withheld or delayed, except if such disclosure
is required by law, in which case the disclosing party shall promptly provide the other party with prior notice of such public
statement or communication.  Notwithstanding the foregoing, the Company shall not publicly disclose the name of any Purchaser,
or include the name of any Purchaser in any filing with the Commission or any regulatory agency or Trading Market, without the
prior written consent of such Purchaser, except (a) as required by federal securities law in connection with the filing of
final Transaction Documents with the Commission and (b) to the extent such disclosure is required by law or Trading Market
regulations, in which case the Company shall provide the Purchasers with prior notice of such disclosure permitted under this clause (b).

 

    

     

    

 

4.5       
Shareholder Rights Plan. 
No claim will be made or enforced by the Company or, with the consent of the Company, any other Person, that any Purchaser is an
 “Acquiring Person” under any control share acquisition, business combination, poison pill (including any distribution
under a rights agreement) or similar anti-takeover plan or arrangement in effect or hereafter adopted by the Company, or that any
Purchaser could be deemed to trigger the provisions of any such plan or arrangement, by virtue of receiving Securities under the
Transaction Documents or under any other agreement between the Company and the Purchasers.

 

4.6       
Non-Public Information.  
Except with respect to the material terms and conditions of the transactions contemplated by the Transaction Documents, which shall
be disclosed pursuant to Section 4.4, the Company covenants and agrees that neither it, nor any other Person acting
on its behalf will provide any Purchaser or its agents or counsel with any information that constitutes, or the Company reasonably
believes constitutes, material non-public information, unless prior thereto such Purchaser shall have consented to the receipt
of such information and agreed with the Company to keep such information confidential.  The Company understands and confirms
that each Purchaser shall be relying on the foregoing covenant in effecting transactions in securities of the Company.  To
the extent that the Company delivers any material, non-public information to a Purchaser without such Purchaser’s consent,
the Company hereby covenants and agrees that such Purchaser shall not have any duty of confidentiality to the Company, any of its
Subsidiaries, or any of their respective officers, directors, agents, employees or Affiliates, or a duty to the Company, any of
its Subsidiaries or any of their respective officers, directors, agents, employees or Affiliates not to trade on the basis of,
such material, non-public information, provided that the Purchaser shall remain subject to applicable law. To the extent that any
notice provided pursuant to any Transaction Document constitutes, or contains, material, non-public information regarding the Company
or any Subsidiaries, the Company shall simultaneously file such notice with the Commission pursuant to a Current Report on Form 8-K. 
The Company understands and confirms that each Purchaser shall be relying on the foregoing covenant in effecting transactions in
securities of the Company.

 

4.7       
Use of Proceeds.  Except
as set forth on Schedule 4.7, the Company shall use the net proceeds from the sale of the Securities hereunder for
working capital purposes and shall not use such proceeds: (a) for the satisfaction of any portion of the Company’s debt
(other than payment of trade payables in the ordinary course of the Company’s business and prior practices), (b) for
the redemption of any Common Stock or Common Stock Equivalents, (c) for the settlement of any outstanding litigation or (d) in
violation of FCPA or OFAC regulations.

 

4.8       
Indemnification of Purchasers.  
Subject to the provisions of this Section 4.8, the Company will indemnify and hold each Purchaser and its directors,
officers, shareholders, members, partners, employees and agents (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), each Person who controls such Purchaser (within
the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act), and the directors, officers, shareholders,
agents, members, partners or 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 such controlling persons (each, a “Purchaser Party”)
harmless from any and all losses, liabilities, obligations, claims, contingencies, damages, costs and expenses, including all judgments,
amounts paid in settlements, court costs and reasonable attorneys’ fees and costs of investigation that any such Purchaser
Party may suffer or incur as a result of or relating to (a) any breach of any of the representations, warranties, covenants
or agreements made by the Company in this Agreement or in the other Transaction Documents or (b) any action instituted against
the Purchaser Parties in any capacity, or any of them or their respective Affiliates, by any stockholder of the Company who is
not an Affiliate of such Purchaser Party, with respect to any of the transactions contemplated by the Transaction Documents (unless
such action is based upon a breach of such Purchaser Party’s representations, warranties or covenants under the Transaction
Documents or any agreements or understandings such Purchaser Party may have with any such stockholder or any violations by such
Purchaser Party of state or federal securities laws or any conduct by such Purchaser Party which constitutes fraud, gross negligence,
willful misconduct or malfeasance).  If any action shall be brought against any Purchaser Party in respect of which indemnity
may be sought pursuant to this Agreement, such Purchaser Party shall promptly notify the Company in writing, and the Company shall
have the right to assume the defense thereof with counsel of its own choosing reasonably acceptable to the Purchaser Party. 
Any Purchaser Party shall have the right to employ separate counsel in any such action and participate in the defense thereof,
but the fees and expenses of such counsel shall be at the expense of such Purchaser Party except to the extent that (i) the
employment thereof has been specifically authorized by the Company in writing, (ii) the Company has failed after a reasonable
period of time to assume such defense and to employ counsel or (iii) in such action there is, in the reasonable opinion of
counsel, a material conflict on any material issue between the position of the Company and the position of such Purchaser Party,
in which case the Company shall be responsible for the reasonable fees and expenses of no more than one such separate counsel. 
The Company will not be liable to any Purchaser Party under this Agreement (y) for any settlement by a Purchaser Party effected
without the Company’s prior written consent, which shall not be unreasonably withheld or delayed; or (z) to the extent,
but only to the extent that a loss, claim, damage or liability is attributable to any Purchaser Party’s breach of any of
the representations, warranties, covenants or agreements made by such Purchaser Party in this Agreement or in the other Transaction
Documents. The indemnification required by this Section 4.8 shall be made by periodic payments of the amount thereof
during the course of the investigation or defense, as and when bills are received or are incurred. The indemnity agreements contained
herein shall be in addition to any cause of action or similar right of any Purchaser Party against the Company or others and any
liabilities the Company may be subject to pursuant to law.

 

    

     

    

 

4.9       
Reservation of Common Stock. As
of the date hereof, the Company has reserved and the Company shall continue to reserve and keep available at all times, free of
preemptive rights, a sufficient number of shares of Common Stock for the purpose of enabling the Company to issue Shares pursuant
to this Agreement and Warrant Shares pursuant to any exercise of the Warrants.

 

4.10       
Listing of Common Stock. The Company hereby agrees to use commercially reasonable best efforts to maintain the listing or
quotation of the Common Stock on the Trading Markets on which it is currently listed, and concurrently with the Closing, the Company
shall apply to list or quote all of the Shares and the Warrant Shares on such Trading Markets and promptly use commercially reasonable
best efforts to secure the listing of all of the Shares and the Warrant Shares on such Trading Markets. The Company further agrees,
if the Company applies to have the Common Stock traded on any other Trading Market, it will then include in such application all
of the Shares and Warrant Shares, and will take such other action as is necessary to cause all of the Shares and Warrant Shares
to be listed or quoted on such other Trading Market as promptly as possible.  The Company will then take all action reasonably
necessary to continue the listing and trading of its Common Stock on a Trading Market and will comply in all material respects
with the Company’s reporting, filing and other obligations under the bylaws or rules of the Trading Market.  The
Company agrees to maintain the eligibility of the Common Stock for electronic transfer through the Depository Trust Company or
another established clearing corporation, including, without limitation, by timely payment of fees to the Depository Trust Company
or such other established clearing corporation in connection with such electronic transfer.

 

4.11       Form D;
Blue Sky Filings.  The Company agrees to timely file a Form D with respect to the Securities as required under Regulation D
and to provide a copy thereof, promptly upon request of any Purchaser. The Company shall take such action as the Company shall
reasonably determine is necessary in order to obtain an exemption for, or to qualify the Securities for, sale to the Purchasers
at the Closing under applicable securities or “Blue Sky” laws of the states of the United States, and shall provide
evidence of such actions promptly upon request of any Purchaser.

 

4.12       
Subsequent Equity Sales.

 

(a)          
From the date hereof until 90 days after the Closing Date, neither the Company nor any Subsidiary shall issue, enter into any agreement
to issue or announce the issuance or proposed issuance of any shares of Common Stock or Common Stock Equivalents (any such issuance,
agreement to issue, announcement of issuance or proposed issuance, a “Subsequent Placement”).

 

(b)          
 Notwithstanding the foregoing,
this Section 4.12 shall not apply in respect of an Exempt Issuance.

 

    

     

    

 

4.13       
Equal Treatment of Purchasers.  No consideration (including any modification of any Transaction Document) shall be
offered or paid to any Person to amend or consent to a waiver or modification of any provision of the Transaction Documents unless
the same consideration is also offered to all of the parties to the Transaction Documents.  For clarification purposes, this
provision constitutes a separate right granted to each Purchaser by the Company and negotiated separately by each Purchaser, and
is intended for the Company to treat the Purchasers as a class and shall not in any way be construed as the Purchasers acting in
concert or as a group with respect to the purchase, disposition or voting of Securities or otherwise.

 

4.14       
Certain Transactions and Confidentiality. Each Purchaser, severally and not jointly with the other Purchasers, covenants
that neither it nor any Affiliate acting on its behalf or pursuant to any understanding with it will execute any purchases or sales,
including Short Sales of any of the Company’s securities during the period commencing with the execution of this Agreement
and ending at such time that the transactions contemplated by this Agreement are first publicly announced pursuant to the initial
press release as described in Section 4.4.  Each Purchaser, severally and not jointly with the other Purchasers,
covenants that until such time as the transactions contemplated by this Agreement are publicly disclosed by the Company pursuant
to the initial press release as described in Section 4.4, such Purchaser will maintain the confidentiality of the existence
and terms of this transaction and the information included in the Disclosure Schedules.  Notwithstanding the foregoing and
notwithstanding anything contained in this Agreement to the contrary, the Company expressly acknowledges and agrees that (i) no
Purchaser makes any representation, warranty or covenant hereby that it will not engage in effecting transactions in any securities
of the Company after the time that the transactions contemplated by this Agreement are first publicly announced pursuant to the
initial press release as described in Section 4.4, (ii) no Purchaser shall be restricted or prohibited from effecting
any transactions in any securities of the Company in accordance with applicable securities laws from and after the time that the
transactions contemplated by this Agreement are first publicly announced pursuant to the initial press release as described in
Section 4.4 and (iii) no Purchaser shall have any duty of confidentiality or duty not to trade in the securities
of the Company to the Company or its Subsidiaries after the issuance of the initial press release as described in Section 4.4. 
Notwithstanding the foregoing, in the case of a Purchaser that is a multi-managed investment vehicle whereby separate portfolio
managers manage separate portions of such Purchaser’s assets and the portfolio managers have no direct knowledge of the investment
decisions made by the portfolio managers managing other portions of such Purchaser’s assets, the covenant set forth above
shall only apply with respect to the portion of assets managed by the portfolio manager that made the investment decision to purchase
the Securities covered by this Agreement.

 

4.15       
Exercise Procedures.  The form of Notice of Exercise included in the Warrants set forth the totality of the procedures
required of the Purchasers in order to exercise the Warrants.  No additional legal opinion, other information or instructions
shall be required of the Purchasers to exercise their Warrants.  Without limiting the preceding sentences, no ink-original
Notice of Exercise shall be required, nor shall any medallion guarantee (or other type of guarantee or notarization) of any Notice
of Exercise form be required in order to exercise the Warrants.  The Company shall honor exercises of the Warrants and shall
deliver Warrant Shares in accordance with the terms, conditions and time periods set forth in the Transaction Documents.

 

4.16       
Resale Restrictions.  Each Purchaser covenants and agrees that it will not, during the period ending on the date that
is four (4) months plus one (1) day after the Closing Date, sell or otherwise effect a trade of any of the Shares or
Warrants held by such Purchaser, or any Warrant Shares issued to such Purchaser upon exercise of Warrants, to any person resident
in Canada or any person acquiring such Shares or Warrants or Warrant Shares for the benefit of another person resident in Canada,
other than in a transaction made in compliance with the prospectus and registration requirements of applicable Canadian securities
laws or which otherwise is made in reliance on any available exemptions therefrom.  Notwithstanding anything herein to the
contrary, a sale of Shares or Warrant Shares through the facilities of any U.S. Trading Market shall be deemed to be in compliance
with this Section 4.16.

 

4.17       
 Participation Right. Until the
first anniversary of the Closing Date, neither the Company nor any of its Subsidiaries shall, directly or indirectly, effect any
Subsequent Placement unless the Company shall have first complied with this Section 4.17, The Company acknowledges and agrees
that the right set forth in this Section 4.17 is a right granted by the Company, separately, to each Purchaser.

 

    

     

    

 

(i) At least three (3) Trading Days prior
to any proposed or intended Subsequent Placement, the Company shall deliver to each Purchaser a written notice (each such notice,
a “Pre-Notice”), which Pre-Notice shall not contain any information (including, without limitation, material,
non-public information) other than: (A) if the proposed Offer Notice (as defined below) constitutes or contains material, non-public
information, a statement asking whether the Investor is willing to accept material non-public information or (B) if the proposed
Offer Notice does not constitute or contain material, non-public information, (x) a statement that the Company proposes or intends
to effect a Subsequent Placement, (y) a statement that the statement in clause (x) above does not constitute material, non-public
information and (z) a statement informing such Purchaser that it is entitled to receive an Offer Notice (as defined below) with
respect to such Subsequent Placement upon its written request. Upon the written request of a Purchaser within one (1) Trading Day
after the Company’s delivery to such Purchaser of such Pre-Notice, and only upon a written request by such Purchaser, the
Company shall promptly, but no later than one (1) Trading Day after such request, deliver to such Purchaser an irrevocable written
notice (the “Offer Notice”) of any proposed or intended issuance or sale or exchange (the “Offer”)
of the securities being offered (the “Offered Securities”) in a Subsequent Placement, which Offer Notice shall
(A) identify and describe the Offered Securities, (B) describe the price and other terms upon which they are to be issued, sold
or exchanged, and the number or amount of the Offered Securities to be issued, sold or exchanged, (C) identify the Persons (if
known) to which or with which the Offered Securities are to be offered, issued, sold or exchanged and (D) offer to issue and sell
to or exchange with such Purchaser in accordance with the terms of the Offer such Purchaser’s pro rata portion of 50% of
the Offered Securities, provided that the number of Offered Securities which such Purchaser shall have the right to subscribe for
under this Section 4.17 shall be (x) based on such Purchaser’s pro rata portion of the aggregate number of Shares purchased
hereunder by all Purchasers (the “Basic Amount”), and (y) with respect to each Purchaser that elects to purchase
its Basic Amount, any additional portion of the Offered Securities attributable to the Basic Amounts of other Purchasers as such
Purchaser shall indicate it will purchase or acquire should the other Purchasers subscribe for less than their Basic Amounts (the
 “Undersubscription Amount”), which process shall be repeated until each Purchaser shall have an opportunity
to subscribe for any remaining Undersubscription Amount.

 

(ii) To accept an Offer, in whole or in
part, such Purchaser must deliver a written notice to the Company prior to the end of the third (3rd) Business Day after
such Purchaser’s receipt of the Offer Notice (the “Offer Period”), setting forth the portion of such Purchaser’s
Basic Amount that such Purchaser elects to purchase and, if such Purchaser shall elect to purchase all of its Basic Amount, the
Undersubscription Amount, if any, that such Purchaser elects to purchase (in either case, the “Notice of Acceptance”).
If the Basic Amounts subscribed for by all Purchasers are less than the total of all of the Basic Amounts, then each Purchaser
who has set forth an Undersubscription Amount in its Notice of Acceptance shall be entitled to purchase, in addition to the Basic
Amounts subscribed for, the Undersubscription Amount it has subscribed for; provided, however, if the Undersubscription Amounts
subscribed for exceed the difference between the total of all the Basic Amounts and the Basic Amounts subscribed for (the “Available
Undersubscription Amount”), each Purchaser who has subscribed for any Undersubscription Amount shall be entitled to purchase
only that portion of the Available Undersubscription Amount as the Basic Amount of such Purchaser bears to the total Basic Amounts
of all Purchasers that have subscribed for Undersubscription Amounts, subject to rounding by the Company to the extent it deems
reasonably necessary. Notwithstanding the foregoing, if the Company desires to modify or amend the terms and conditions of the
Offer prior to the expiration of the Offer Period, the Company may deliver to each Purchaser a new Offer Notice and the Offer Period
shall expire on the third (3rd) Business Day after such Purchaser’s receipt of such new Offer Notice.

 

(iii) The Company shall have three (3) Business
Days from the expiration of the Offer Period above (A) to offer, issue, sell or exchange all or any part of such Offered Securities
as to which a Notice of Acceptance has not been given by a Purchaser (the “Refused Securities”) pursuant to
a definitive agreement(s) (the “Subsequent Placement Agreement”), but only upon terms and conditions (including,
without limitation, unit prices and interest rates) that are not more favorable to the acquiring Person or Persons or less favorable
to the Company than those set forth in the Offer Notice and (B) to publicly announce (x) the execution of such Subsequent Placement
Agreement, and (y) either (I) the consummation of the transactions contemplated by such Subsequent Placement Agreement or (II)
the termination of such Subsequent Placement Agreement, which shall be filed with the Commission on a Current Report on Form 8-K
with such Subsequent Placement Agreement and any documents contemplated therein filed as exhibits thereto.

 

    

     

    

 

(iv) In the event the Company shall propose
to sell less than all the Refused Securities (any such sale to be in the manner and on the terms specified in Section 4.17(iii)
above), then each Purchaser may, at its sole option and in its sole discretion, reduce the number or amount of the Offered Securities
specified in its Notice of Acceptance to an amount that shall be not less than the number or amount of the Offered Securities that
such Purchaser elected to purchase pursuant to Section 4.17(ii) above multiplied by a fraction, (A) the numerator of which
shall be the number or amount of Offered Securities the Company actually proposes to issue, sell or exchange (including Offered
Securities to be issued or sold to Purchasers pursuant to this Section 4.17 prior to such reduction) and (B) the denominator
of which shall be the original amount of the Offered Securities. In the event that any Purchaser so elects to reduce the number
or amount of Offered Securities specified in its Notice of Acceptance, the Company may not issue, sell or exchange more than the
reduced number or amount of the Offered Securities unless and until such securities have again been offered to the Purchasers in
accordance with Section 4.17(i) above.

 

(v) Upon the closing of the issuance, sale
or exchange of all or less than all of the Refused Securities, such Purchaser shall acquire from the Company, and the Company shall
issue to such Purchaser, the number or amount of Offered Securities specified in its Notice of Acceptance, as reduced pursuant
to Section 4.17(iv) above if such Purchaser has so elected, upon the terms and conditions specified in the Offer. The purchase
by such Purchaser of any Offered Securities is subject in all cases to the preparation, execution and delivery by the Company and
such Purchaser of a separate purchase agreement relating to such Offered Securities reasonably satisfactory in form and substance
to such Purchaser and its counsel.

 

(vi) Any Offered Securities not acquired
by a Purchaser or other Persons in accordance with this Section 4.17 may not be issued, sold or exchanged until they are again
offered to such Purchaser under the procedures specified in this Agreement.

 

(vii) The Company and each Purchaser agree
that if any Purchaser elects to participate in the Offer, neither the Subsequent Placement Agreement with respect to such Offer
nor any other transaction documents related thereto (collectively, the “Subsequent Placement Documents”) shall
include any term or provision whereby such Purchaser shall be required to agree to any restrictions on trading as to any securities
of the Company (other than restrictions on transfer of the Offered Securities under applicable securities laws) or be required
to consent to any amendment to or termination of, or grant any waiver, release or the like under or in connection with, any agreement
previously entered into with the Company or any instrument received from the Company.

 

(viii) Notwithstanding anything to the contrary
in this Section 4.17 and unless otherwise agreed to by such Purchaser, the Company shall either confirm in writing to such
Purchaser that the transaction with respect to the Subsequent Placement has been abandoned or shall publicly disclose its intention
to issue the Offered Securities, in either case, in such a manner such that such Purchaser will not be in possession of any material,
non-public information, by the third (3rd) Business Day following delivery of the Offer Notice. If by such third (3rd)
Business Day, no public disclosure regarding a transaction with respect to the Offered Securities has been made, and no notice
regarding the abandonment of such transaction has been received by such Purchaser, such transaction shall be deemed to have been
abandoned and such Purchaser shall not be in possession of any material, non-public information with respect to the Company or
any of its Subsidiaries. Should the Company decide to pursue such transaction with respect to the Offered Securities, the Company
shall provide such Purchaser with another Offer Notice and such Purchaser will again have the right of participation set forth
in this Section 4.17. The Company shall not be permitted to deliver more than one such Offer Notice to such Purchaser in any
sixty (60) day period, except as expressly contemplated by the last sentence of Section 4.17(ii).

 

(ix) The restrictions contained in this
Section 4.17 shall not apply in connection with (i) the issuance of any Exempt Issuance, provided however, that for
the purpose of this Section 4.17(ix), the first proviso in clause (c) of the definition of “Exempt Issuance” shall
be disregarded, (ii) sales pursuant to the At The Market Offering Agreement, dated as of December 20, 2016, as amended, with H.C.
Wainwright & Co., LLC, and (iii) sales pursuant to the Commitment Purchase Agreement, dated as of May 9, 2018, with Lincoln
Park Capital Fund, LLC ((ii) and (iii), “Permitted Sales”). The Company shall not circumvent the provisions
of this Section 4.17 by providing terms or conditions to one Purchaser that are not provided to all.

 

    

     

    

 

ARTICLE V.

MISCELLANEOUS

 

5.1         
Termination.  This Agreement may be terminated by any Purchaser, as to such Purchaser’s obligations hereunder
only and without any effect whatsoever on the obligations between the Company and the other Purchasers, by written notice to the
other parties, if the Closing has not been consummated on or before April 29, 2020; provided, however, that no such
termination will affect the right of any party to sue for any breach by any other party (or parties).

 

5.2         
Fees and Expenses.  Except as expressly set forth in the Transaction Documents to the contrary, each party shall pay
the fees and expenses of its advisers, counsel, accountants and other experts, if any, and all other expenses incurred by such
party incident to the negotiation, preparation, execution, delivery and performance of this Agreement.  The Company shall
pay all Transfer Agent fees (including, without limitation, any fees required for same-day processing of any instruction letter
delivered by the Company and any exercise notice delivered by a Purchaser), stamp taxes and other taxes and duties levied in connection
with the delivery of any Securities to the Purchasers.

 

5.3         
Entire Agreement.  The Transaction Documents, together with the exhibits and schedules thereto, the Prospectus and
the Prospectus Supplement, contain the entire understanding of the parties with respect to the subject matter hereof and thereof
and supersede all prior agreements and understandings, oral or written, with respect to such matters, which the parties acknowledge
have been merged into such documents, exhibits and schedules.

 

5.4         
Notices.  Any and all notices or other communications or deliveries required or permitted to be provided hereunder
shall be in writing and shall be deemed given and effective on the earliest of: (a) the time of transmission, if such notice
or communication is delivered via facsimile at the facsimile number or email attachment at the email address as set forth on the
signature pages attached hereto at or prior to 5:30 p.m. (New York City time) on a Trading Day, (b) the next Trading
Day after the time of transmission, if such notice or communication is delivered via facsimile at the facsimile number or email
attachment at the email address as set forth on the signature pages attached hereto on a day that is not a Trading Day or
later than 5:30 p.m. (New York City time) on any Trading Day, (c) the second (2nd) Trading Day following the date of
mailing, if sent by U.S. nationally recognized overnight courier service or (d) upon actual receipt by the party to whom such
notice is required to be given.  The address for such notices and communications shall be as set forth on the signature pages attached
hereto. To the extent that any notice provided pursuant to any Transaction Document constitutes, or contains, material, non-public
information regarding the Company or any Subsidiaries, the Company shall simultaneously file such notice with the Commission pursuant
to a Current Report on Form 8-K.

 

5.5         
Amendments; Waivers.  No provision of this Agreement may be waived, modified, supplemented or amended except in a written
instrument signed, in the case of an amendment, by the Company and Purchasers which purchased at least a majority in interest of
the Shares based on the initial Subscription Amounts hereunder or, in the case of a waiver, by the party against whom enforcement
of any such waived provision is sought, provided that if any amendment, modification or waiver disproportionately and adversely
impacts a Purchaser (or group of Purchasers), the consent of such disproportionately impacted Purchaser (or group of Purchasers)
shall also be required.  No waiver of any default with respect to any provision, condition or requirement of this Agreement
shall be deemed to be a continuing waiver in the future or a waiver of any subsequent default or a waiver of any other provision,
condition or requirement hereof, nor shall any delay or omission of any party to exercise any right hereunder in any manner impair
the exercise of any such right. Any proposed amendment or waiver that disproportionately, materially and adversely affects the
rights and obligations of any Purchaser relative to the comparable rights and obligations of the other Purchasers shall require
the prior written consent of such adversely affected Purchaser, Any amendment effected in accordance with accordance with this
Section 5.5 shall be binding upon each Purchaser and holder of Securities and the Company.

 

5.6         
Headings.  The headings herein are for convenience only, do not constitute a part of this Agreement and shall not be
deemed to limit or affect any of the provisions hereof.

 

    

     

    

 

5.7         
Successors and Assigns.  This Agreement shall be binding upon and inure to the benefit of the parties and their successors
and permitted assigns.  The Company may not assign this Agreement or any rights or obligations hereunder without the prior
written consent of each Purchaser (other than by merger).  Any Purchaser may assign any or all of its rights under this Agreement
to any Person to whom such Purchaser assigns or transfers any Securities, provided that such transferee agrees in writing to be
bound, with respect to the transferred Securities, by the provisions of the Transaction Documents that apply to the “Purchasers”.

 

5.8         
No Third-Party Beneficiaries; Warrant Agreement.  The Placement Agent shall be the third party beneficiary of the representations
and warranties of the Company in Section 3.1 and the representations and warranties of the Purchasers in Section 3.2. 
This Agreement is intended for the benefit of the parties hereto and their respective successors and permitted assigns and is not
for the benefit of, nor may any provision hereof be enforced by, any other Person, except as otherwise set forth in Section 4.8
and this Section 5.8.  The Company shall be liable to the affected Purchasers for, and each Purchaser shall be
a third-party beneficiary of, the Warrant Agreement as to any breaches of such agreement by either the Company or the Warrant Agent,
notwithstanding any disclaimers of such liabilities to the Warrant holders set forth in the Warrant Agreement.

 

5.9         
Governing Law.  All questions concerning the construction, validity, enforcement and interpretation of the Transaction
Documents shall be governed by and construed and enforced in accordance with the internal laws of the State of New York, without
regard to the principles of conflicts of law thereof.  Each party agrees that all legal Proceedings concerning the interpretations,
enforcement and defense of the transactions contemplated by this Agreement and any other Transaction Documents (whether brought
against a party hereto or its respective affiliates, directors, officers, shareholders, partners, members, employees or agents)
shall be commenced exclusively in the state and federal courts sitting in the City of New York.  Each party hereby irrevocably
submits to the exclusive jurisdiction of the state and federal courts sitting in the City of New York, Borough of Manhattan for
the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein
(including with respect to the enforcement of any of the Transaction Documents), and hereby irrevocably waives, and agrees not
to assert in any Action or Proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that
such Action or Proceeding is improper or is an inconvenient venue for such Action or Proceeding.  Each party hereby irrevocably
waives personal service of process and consents to process being served in any such Action or Proceeding by mailing a copy thereof
via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices
to it under this Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof. 
Nothing contained herein shall be deemed to limit in any way any right to serve process in any other manner permitted by law.  
If any party shall commence an Action or Proceeding to enforce any provisions of the Transaction Documents, then, in addition to
the obligations of the Company under Section 4.8, the prevailing party in such Action or Proceeding shall be reimbursed
by the non-prevailing party for its reasonable attorneys’ fees and other costs and expenses incurred with the investigation,
preparation and prosecution of such Action or Proceeding.

 

5.10       
Survival.  The representations and warranties contained herein shall survive the Closing and the delivery of the Securities
for the applicable statute of limitations.

 

5.11       
Execution.  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 each other
party, it being understood that the 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.

 

5.12       
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.

 

    

     

    

 

5.13       
Rescission and Withdrawal Right.  Notwithstanding anything to the contrary contained in (and without limiting any similar
provisions of) any of the other Transaction Documents, whenever any Purchaser exercises a right, election, demand or option under
a Transaction Document and the Company does not timely perform its related obligations within the periods therein provided, then
such Purchaser may rescind or withdraw, in its sole discretion from time to time upon written notice to the Company, any relevant
notice, demand or election in whole or in part without prejudice to its future actions and rights; provided, however,
that in the case of a rescission of an exercise of a Warrant, the applicable Purchaser shall be required to return any shares of
Common Stock subject to any such rescinded exercise notice concurrently with the return to such Purchaser of the aggregate exercise
price paid to the Company for such shares and the restoration of such Purchaser’s right to acquire such shares pursuant to
such Purchaser’s Warrant (including, issuance of a replacement warrant certificate evidencing such restored right).

 

5.14       
Replacement of Securities.  If any certificate or instrument evidencing any Securities is mutilated, lost, stolen or
destroyed, the Company shall issue or cause to be issued in exchange and substitution for and upon cancellation thereof (in the
case of mutilation), or in lieu of and substitution therefor, a new certificate or instrument, but only upon receipt of evidence
reasonably satisfactory to the Company of such loss, theft or destruction.  The applicant for a new certificate or instrument
under such circumstances shall also pay any reasonable third-party costs (including customary indemnity) associated with the issuance
of such replacement Securities.

 

5.15       
Remedies.  In addition to being entitled to exercise all rights provided herein or granted by law, including recovery
of damages, each of the Purchasers and the Company will be entitled to specific performance under the Transaction Documents. 
The parties agree that monetary damages may not be adequate compensation for any loss incurred by reason of any breach of obligations
contained in the Transaction Documents and hereby agree to waive and not to assert in any Action for specific performance of any
such obligation the defense that a remedy at law would be adequate.

 

5.16       
Payment Set Aside.  To the extent that the Company makes a payment or payments to any Purchaser pursuant to any Transaction
Document or a Purchaser enforces or exercises its rights thereunder, and such payment or payments or the proceeds of such enforcement
or exercise or any part thereof are subsequently invalidated, declared to be fraudulent or preferential, set aside, recovered from,
disgorged by or are required to be refunded, repaid or otherwise restored to the Company, a trustee, receiver or any other Person
under any law (including, without limitation, any bankruptcy law, state or federal law, common law or equitable cause of action),
then to the extent of any such restoration the obligation or part thereof originally intended to be satisfied shall be revived
and continued in full force and effect as if such payment had not been made or such enforcement or setoff had not occurred.

 

5.17       
Independent Nature of Purchasers’ Obligations and Rights.  The obligations of each Purchaser under any Transaction
Document are several and not joint with the obligations of any other Purchaser, and no Purchaser shall be responsible in any way
for the performance or non-performance of the obligations of any other Purchaser under any Transaction Document.  Nothing
contained herein or in any other Transaction Document, and no action taken by any Purchaser pursuant hereto or thereto, shall be
deemed to constitute the Purchasers as a partnership, an association, a joint venture or any other kind of entity, or create a
presumption that the Purchasers are in any way acting in concert or as a group with respect to such obligations or the transactions
contemplated by the Transaction Documents.  Each Purchaser shall be entitled to independently protect and enforce its rights
including, without limitation, the rights arising out of this Agreement or out of the other Transaction Documents, and it shall
not be necessary for any other Purchaser to be joined as an additional party in any Proceeding for such purpose.  Each Purchaser
has been represented by its own separate legal counsel in its review and negotiation of the Transaction Documents.  For reasons
of administrative convenience only, each Purchaser and its respective counsel have chosen to communicate with the Company through
Dentons.  Dentons does not represent any of the Purchasers and only represents the Placement Agent.  The Company has
elected to provide all Purchasers with the same terms and Transaction Documents for the convenience of the Company and not because
it was required or requested to do so by any of the Purchasers.  It is expressly understood and agreed that each provision
contained in this Agreement and in each other Transaction Document is between the Company and a Purchaser, solely, and not between
the Company and the Purchasers collectively and not between and among the Purchasers.

 

    

     

    

 

5.18       
Liquidated Damages.  The Company’s obligations to pay any amounts owing under the Transaction Documents is a
continuing obligation of the Company and shall not terminate until all unpaid amounts have been paid notwithstanding the fact that
the instrument or security pursuant to which such partial liquidated damages or other amounts are due and payable shall have been
canceled.

 

5.19       
Saturdays, Sundays, Holidays, etc.  If the last or appointed day for the taking of any action or the expiration
of any right required or granted herein shall not be a Business Day, then such action may be taken or such right may be exercised
on the next succeeding Business Day.

 

5.20       
Construction. The parties agree that each of them and/or their respective counsel have reviewed and had an opportunity to
revise the Transaction Documents and, therefore, the normal rule of construction to the effect that any ambiguities are to
be resolved against the drafting party shall not be employed in the interpretation of the Transaction Documents or any amendments
thereto. In addition, each and every reference to share prices and shares of Common Stock in any Transaction Document shall be
subject to adjustment for reverse and forward stock splits, stock dividends, stock combinations and other similar transactions
of the Common Stock that occur after the date of this Agreement.

 

5.21       
WAIVER OF JURY TRIAL.  IN ANY ACTION, SUIT, OR PROCEEDING IN ANY JURISDICTION BROUGHT BY ANY PARTY AGAINST ANY
OTHER PARTY, THE PARTIES EACH KNOWINGLY AND INTENTIONALLY, TO THE GREATEST EXTENT PERMITTED BY APPLICABLE LAW, HEREBY ABSOLUTELY,
UNCONDITIONALLY, IRREVOCABLY AND EXPRESSLY WAIVES FOREVER TRIAL BY JURY.

 

(Signature Pages Follow)

 

    

     

    

 

IN WITNESS WHEREOF, the parties hereto have
caused this Securities Purchase Agreement to be duly executed by their respective authorized signatories as of the date first indicated
above.

 

	GOLDEN MINERALS COMPANY	 	Address for Notice:
	 	 	 
	 	 	 
	By:	 	 	Fax:
	 	Name:	 	E-Mail:
	 	Title:	 	 
	 	 	 
	With a copy to (which shall not constitute notice):	 	 

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK

SIGNATURE PAGE FOR PURCHASER FOLLOWS]

 

    

     

    

 

[PURCHASER SIGNATURE PAGES TO AUMN SECURITIES
PURCHASE AGREEMENT]

 

IN WITNESS WHEREOF, the undersigned have
caused this Securities Purchase Agreement to be duly executed by their respective authorized signatories as of the date first indicated
above.

 

 

	Name of Purchaser:	 
	 
	Signature of Authorized Signatory of Purchaser:	 
	 
	Name of Authorized Signatory:	 
	 
	Title of Authorized Signatory:	 
	 
	Email Address of Authorized Signatory:	 
	 
	Facsimile Number of Authorized Signatory:	 
	 
	Address for Notice to Purchaser:	 
	 
	Address for Delivery of Securities to Purchaser (if not same as address for notice):
	 
	DWAC for Shares:
	 
	Subscription Amount: $
	 
	Shares:
	 
	Warrant Shares:
	 
	EIN Number:
	 	 	 	 	 	 	 

 

[SIGNATURE PAGES CONTINUE]

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