Document:

EX-4.1

 Exhibit 4.1 

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

UNDERWRITER COMMON STOCK PURCHASE WARRANT 

SUPERCONDUCTOR TECHNOLOGIES INC. 
  

			
	Warrant Shares: _______	  	Initial Exercise Date: May 23, 2019

 THIS UNDERWRITER COMMON STOCK PURCHASE WARRANT (the “Warrant”) certifies that, for value
received,                 or its assigns (the “Holder”) is entitled, upon the terms and subject to the limitations on exercise and the conditions
hereinafter set forth, at any time on or after the date hereof (the “Initial Exercise Date”) and on or prior to 5:00 p.m. (New York City time) on May 20, 2024 (the “Termination Date”) but not thereafter, to
subscribe for and purchase from Superconductor Technologies Inc., a Delaware corporation (the “Company”), up to                  shares (as subject to
adjustment hereunder, the “Warrant Shares”) of Common Stock. The purchase price of one share of Common Stock under this Warrant shall be equal to the Exercise Price, as defined in Section 2(b). This Warrant is issued pursuant
to Section 2.3(ii) of that certain Underwriting Agreement, by and between the Company and H.C. Wainwright & Co., LLC, dated as of May 20, 2019. 

Section 1. Definitions. In addition to the terms defined elsewhere in this Warrant, the following terms have
the meanings indicated in this Section 1: 
 “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. 

“Bid Price” means, for any date, the price determined by the first of the following clauses that applies:
(a) if the Common Stock is then listed or quoted on a Trading Market, the bid price of the Common Stock for the time in question (or the nearest preceding date) on the Trading Market on which the Common Stock is then listed or quoted as
reported by Bloomberg L.P. (based on a Trading Day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City time)), (b) if OTCQB or OTCQX is not a Trading Market, the volume weighted average price of the Common Stock for such date (or
the nearest 

  
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preceding date) on OTCQB or OTCQX as applicable, (c) if the Common Stock is not then listed or quoted for trading on OTCQB or OTCQX and if prices for the Common Stock are then reported in
the “Pink Sheets” published by OTC Markets Group, Inc. (or a similar organization or agency succeeding to its functions of reporting prices), the most recent bid price per share of the Common Stock so reported, or (d) in all other
cases, the fair market value of a share of Common Stock as determined by an independent appraiser selected in good faith by the Holders of a majority in interest of the Warrants then outstanding and reasonably acceptable to the Company, the fees and
expenses of which shall be paid by 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. 

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

“Common Stock” means the common stock of the Company, par value $0.001 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. 

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

“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. 

“Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated
thereunder. 
 “Trading Day” means a day on which the Common Stock is traded on a Trading Market. 

“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 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. 

  
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 “Transfer Agent” means Computershare, the current transfer
agent of the Company, with a mailing address of 250 Royall St, Canton, MA 02021 and a facsimile number of (781) 298-2866, and any successor transfer agent of the Company. 

“VWAP” means, for any date, the price determined by the first of the following clauses that applies:
(a) if the Common Stock is then listed or quoted on a Trading Market, the daily volume weighted average price of the Common Stock for such date (or the nearest preceding date) on the Trading Market on which the Common Stock is then listed or
quoted as reported by Bloomberg L.P. (based on a Trading Day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City time)), (b) if OTCQB or OTCQX is not a Trading Market, the volume weighted average price of the Common Stock for such
date (or the nearest preceding date) on OTCQB or OTCQX as applicable, (c) if the Common Stock is not then listed or quoted for trading on OTCQB or OTCQX and if prices for the Common Stock are then reported in the “Pink Sheets”
published by OTC Markets Group, Inc. (or a similar organization or agency succeeding to its functions of reporting prices), the most recent bid price per share of the Common Stock so reported, or (d) in all other cases, the fair market value of
a share of Common Stock as determined by an independent appraiser selected in good faith by the holders of a majority in interest of the Warrants then outstanding and reasonably acceptable to the Company, the fees and expenses of which shall be paid
by the Company. 
 Section 2. Exercise. 

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

  
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Holder and the Company shall maintain records showing the number of Warrant Shares purchased and the date of such purchases. The Company shall deliver any objection to any Notice of Exercise
within one (1) Business Day of receipt of such notice. The Holder and any assignee, by acceptance of this Warrant, acknowledge and agree that, by reason of the provisions of this paragraph, following the purchase of a portion of the Warrant
Shares hereunder, the number of Warrant Shares available for purchase hereunder at any given time may be less than the amount stated on the face hereof. 

Without limiting the rights of a Holder to receive Warrant Shares on a “cashless exercise” and without limiting the liquidated
damages provision in Section 2(d)(i) and the buy-in provision in Section 2(d)(iv), in no event will the Company be required to net cash settle a Warrant exercise. 

b) Exercise Price. The exercise price per share of Common Stock under this Warrant shall be $1.25, subject to adjustment
hereunder (the “Exercise Price”). 
 c) Cashless Exercise. If at any time after the six-month anniversary of the Issue Date, there is no effective registration statement registering, or no current prospectus available for, the resale of the Warrant Shares by the Holder, then this Warrant may also
be exercised, in whole or in part, at such time by means of a “cashless exercise” in which the Holder shall be entitled to receive a number of Warrant Shares equal to the quotient obtained by dividing
[(A-B) (X)] by (A), where 
  

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

  

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

 

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

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

d) Mechanics of Exercise. 

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

  
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“Standard Settlement Period” means the standard settlement period, expressed in a number of Trading Days, on the Company’s primary Trading Market with respect to the Common
Stock as in effect on the date of delivery of the Notice of Exercise. 
 ii. Delivery of New Warrants Upon Exercise.
If this Warrant shall have been exercised in part, the Company shall, at the request of a Holder and upon surrender of this Warrant certificate, at the time of delivery of the Warrant Shares, deliver to the Holder a new Warrant evidencing the rights
of the Holder to purchase the unpurchased Warrant Shares called for by this Warrant, which new Warrant shall in all other respects be identical with this Warrant. 

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

iv. Compensation for Buy-In on Failure to Timely Deliver Warrant Shares Upon
Exercise. In addition to any other rights available to the Holder, if the Company fails to cause the Transfer Agent to transmit to the Holder the Warrant Shares in accordance with the provisions of Section 2(d)(i) above pursuant to an
exercise on or before the Warrant Share Delivery Date, and if after such date the Holder is required by its broker to purchase (in an open market transaction or otherwise) or the Holder’s brokerage firm otherwise purchases, shares of Common
Stock to deliver in satisfaction of a sale by the Holder of the Warrant Shares which the Holder anticipated receiving upon such exercise (a “Buy-In”), then the Company shall (A) pay in
cash to the Holder the amount, if any, by which (x) the Holder’s total purchase price (including brokerage commissions, if any) for the shares of Common Stock so purchased exceeds (y) the amount obtained by multiplying (1) the
number of Warrant Shares that the Company was required to deliver to the Holder in connection with the exercise at issue times (2) the price at which the sell order giving rise to such purchase obligation was executed, and (B) at the
option of the Holder, either reinstate the portion of the Warrant and equivalent number of Warrant Shares for which such exercise was not honored (in which case such exercise shall be deemed rescinded) or deliver to the Holder the number of shares
of Common Stock that would have been issued had the Company timely complied with its exercise and delivery obligations hereunder. For example, if the Holder purchases Common Stock having a total purchase price of $11,000 to cover a Buy-In with respect to an attempted exercise of shares of Common Stock with an aggregate sale price giving rise to such purchase obligation of $10,000, under clause (A) of the immediately preceding sentence the
Company shall be required to pay the Holder $1,000. The Holder shall provide the Company written notice indicating the amounts payable to the Holder in respect of the Buy-In and, upon request

  
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of the Company, evidence of the amount of such loss. Nothing herein shall limit a Holder’s right to pursue any other remedies available to it hereunder, at law or in equity including,
without limitation, a decree of specific performance and/or injunctive relief with respect to the Company’s failure to timely deliver shares of Common Stock upon exercise of the Warrant as required pursuant to the terms hereof. 

v. No Fractional Shares or Scrip. No fractional shares or scrip representing fractional shares shall be issued upon the
exercise of this Warrant. As to any fraction of a share which the Holder would otherwise be entitled to purchase upon such exercise, the Company shall, at its election, either pay a cash adjustment in respect of such final fraction in an amount
equal to such fraction multiplied by the Exercise Price or round up to the next whole share. 
 vi. Charges, Taxes and
Expenses. Issuance of Warrant Shares shall be made without charge to the Holder for any issue or transfer tax or other incidental expense in respect of the issuance of such Warrant Shares, all of which taxes and expenses shall be paid by the
Company, and such Warrant Shares shall be issued in the name of the Holder or in such name or names as may be directed by the Holder; provided, however, that in the event that Warrant Shares are to be issued in a name other than the
name of the Holder, this Warrant when surrendered for exercise shall be accompanied by the Assignment Form attached hereto duly executed by the Holder and the Company may require, as a condition thereto, the payment of a sum sufficient to reimburse
it for any transfer tax incidental thereto. The Company shall pay all Transfer Agent fees required for same-day processing of any Notice of Exercise and all fees to the Depository Trust Company (or another
established clearing corporation performing similar functions) required for same-day electronic delivery of the Warrant Shares. 

vii. Closing of Books. The Company will not close its stockholder books or records in any manner which prevents the
timely exercise of this Warrant, pursuant to the terms hereof. 
 e) Holder’s Exercise Limitations. The Company
shall not effect any exercise of this Warrant, and a Holder shall not have the right to exercise any portion of this Warrant, pursuant to Section 2 or otherwise, to the extent that after giving effect to such issuance after exercise as set
forth on the applicable Notice of Exercise, the Holder (together with the Holder’s Affiliates, and any other Persons acting as a group together with the Holder or any of the Holder’s Affiliates (such Persons, “Attribution
Parties”)), would beneficially own in excess of the Beneficial Ownership Limitation (as defined below). For purposes of the foregoing sentence, the number of shares of Common Stock beneficially owned by the Holder and its Affiliates and
Attribution Parties shall include the number of shares of Common Stock issuable upon exercise of this Warrant with respect to which such determination is being made, but shall exclude the number of shares of Common Stock which would be issuable upon
(i) exercise of the remaining, nonexercised 

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

  
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hereof) which may be defective or inconsistent with the intended Beneficial Ownership Limitation herein contained or to make changes or supplements necessary or desirable to properly give effect
to such limitation. The limitations contained in this paragraph shall apply to a successor holder of this Warrant. 

Section 3. Certain Adjustments. 

a) Stock Dividends and Splits. If the Company, at any time while this Warrant is outstanding: (i) pays a stock
dividend or otherwise makes a distribution or distributions on shares of its Common Stock or any other equity or equity equivalent securities payable in shares of Common Stock (which, for avoidance of doubt, shall not include any shares of Common
Stock issued by the Company upon exercise of this Warrant), (ii) subdivides outstanding shares of Common Stock into a larger number of shares, (iii) combines (including by way of reverse stock split) outstanding shares of Common Stock into a
smaller number of shares, or (iv) issues by reclassification of shares of the Common Stock any shares of capital stock of the Company, then in each case the Exercise Price shall be multiplied by a fraction of which the numerator shall be the
number of shares of Common Stock (excluding treasury shares, if any) outstanding immediately before such event and of which the denominator shall be the number of shares of Common Stock outstanding immediately after such event, and the number of
shares issuable upon exercise of this Warrant shall be proportionately adjusted such that the aggregate Exercise Price of this Warrant shall remain unchanged. Any adjustment made pursuant to this Section 3(a) shall become effective immediately
after the record date for the determination of stockholders entitled to receive such dividend or distribution and shall become effective immediately after the effective date in the case of a subdivision, combination or
re-classification. 
 b) Subsequent Rights Offerings. In addition to any
adjustments pursuant to Section 3(a) above, if at any time the Company grants, issues or sells any Common Stock Equivalents or rights to purchase stock, warrants, securities or other property pro rata to the record holders of any class of
shares of Common Stock (the “Purchase Rights”), then the Holder will be entitled to acquire, upon the terms applicable to such Purchase Rights, the aggregate Purchase Rights which the Holder could have acquired if the Holder had
held the number of shares of Common Stock acquirable upon complete exercise of this Warrant (without regard to any limitations on exercise hereof, including without limitation, the Beneficial Ownership Limitation) immediately before the date on
which a record is taken for the grant, issuance or sale of such Purchase Rights, or, if no such record is taken, the date as of which the record holders of shares of Common Stock are to be determined for the grant, issue or sale of such Purchase
Rights (provided, however, to the extent that the Holder’s right to participate in any such Purchase Right would result in the Holder exceeding the Beneficial Ownership Limitation, then the Holder shall not be entitled to participate in such
Purchase Right to such extent (or beneficial ownership of such shares of Common Stock as a result of such Purchase Right to such extent) and such Purchase Right to such extent shall be held in abeyance for the Holder until such time, if ever, as its
right thereto would not result in the Holder exceeding the Beneficial Ownership Limitation). 

  
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 c) Pro Rata Distributions. During such time as this Warrant is
outstanding, if the Company shall declare or make any dividend or other distribution of its assets (or rights to acquire its assets) to holders of shares of Common Stock, by way of return of capital or otherwise, other than cash (including, without
limitation, any distribution of stock or other securities, property or options by way of a dividend, spin off, reclassification, corporate rearrangement, scheme of arrangement or other similar transaction) (a “Distribution”), at any
time after the issuance of this Warrant, then, in each such case, the Holder shall be entitled to participate in such Distribution to the same extent that the Holder would have participated therein if the Holder had held the number of shares of
Common Stock acquirable upon complete exercise of this Warrant (without regard to any limitations on exercise hereof, including without limitation, the Beneficial Ownership Limitation) immediately before the date of which a record is taken for such
Distribution, or, if no such record is taken, the date as of which the record holders of shares of Common Stock are to be determined for the participation in such Distribution (provided, however, to the extent that the Holder’s
right to participate in any such Distribution would result in the Holder exceeding the Beneficial Ownership Limitation, then the Holder shall not be entitled to participate in such Distribution to such extent (or in the beneficial ownership of any
shares of Common Stock as a result of such Distribution to such extent) and the portion of such Distribution shall be held in abeyance for the benefit of the Holder until such time, if ever, as its right thereto would not result in the Holder
exceeding the Beneficial Ownership Limitation). 
 d) Fundamental Transaction. If, at any time while this Warrant is
outstanding, (i) the Company, directly or indirectly, in one or more related transactions effects any merger or consolidation of the Company with or into another Person, (ii) the Company, directly or indirectly, effects any sale, lease,
license, assignment, transfer, conveyance or other disposition of all or substantially all of its assets in one or a series of related transactions, (iii) any, direct or indirect, purchase offer, tender offer or exchange offer (whether by the
Company or another Person) is completed pursuant to which holders of Common Stock are permitted to sell, tender or exchange their shares for other securities, cash or property and has been accepted by the holders of 50% or more of the outstanding
Common Stock, (iv) the Company, directly or indirectly, in one or more related transactions effects any reclassification, reorganization or recapitalization of the Common Stock or any compulsory share exchange pursuant to which the Common Stock
is effectively converted into or exchanged for other securities, cash or property, or (v) the Company, directly or indirectly, in one or more related transactions consummates a stock or share purchase agreement or other business combination
(including, without limitation, a reorganization, recapitalization, spin-off, merger or scheme of arrangement) with another Person or group of Persons whereby such other Person or group acquires more than 50%
of the outstanding shares of Common Stock (not including any shares of Common Stock held by the other Person or other Persons making or party to, or associated or affiliated with the other Persons making or party to, such stock or share purchase
agreement or other business combination) (each a “Fundamental Transaction”), then, upon any subsequent exercise of this Warrant, the Holder shall have the right to receive, for each Warrant Share that would have been issuable upon
such exercise immediately prior to the occurrence of such Fundamental Transaction, at the option of the Holder (without regard to any limitation in Section 2(e) on the exercise of this Warrant), the number of shares of Common Stock of

  
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the successor or acquiring corporation or of the Company, if it is the surviving corporation, and any additional consideration (the “Alternate Consideration”) receivable as a
result of such Fundamental Transaction by a holder of the number of shares of Common Stock for which this Warrant is exercisable immediately prior to such Fundamental Transaction (without regard to any limitation in Section 2(e) on the exercise
of this Warrant). For purposes of any such exercise, the determination of the Exercise Price shall be appropriately adjusted to apply to such Alternate Consideration based on the amount of Alternate Consideration issuable in respect of one share of
Common Stock in such Fundamental Transaction, and the Company shall apportion the Exercise Price among the Alternate Consideration in a reasonable manner reflecting the relative value of any different components of the Alternate Consideration. If
holders of Common Stock are given any choice as to the securities, cash or property to be received in a Fundamental Transaction, then the Holder shall be given the same choice as to the Alternate Consideration it receives upon any exercise of this
Warrant following such Fundamental Transaction. The Company shall cause any successor entity in a Fundamental Transaction in which the Company is not the survivor (the “Successor Entity”) to assume in writing all of the obligations
of the Company under this Warrant in accordance with the provisions of this Section 3(d) pursuant to written agreements in form and substance reasonably satisfactory to the Holder and approved by the Holder (without unreasonable delay) prior to
such Fundamental Transaction and shall, at the option of the Holder, deliver to the Holder in exchange for this Warrant a security of the Successor Entity evidenced by a written instrument substantially similar in form and substance to this Warrant
which is exercisable for a corresponding number of shares of capital stock of such Successor Entity (or its parent entity) equivalent to the shares of Common Stock acquirable and receivable upon exercise of this Warrant (without regard to any
limitations on the exercise of this Warrant) prior to such Fundamental Transaction, and with an exercise price which applies the exercise price hereunder to such shares of capital stock (but taking into account the relative value of the shares of
Common Stock pursuant to such Fundamental Transaction and the value of such shares of capital stock, such number of shares of capital stock and such exercise price being for the purpose of protecting the economic value of this Warrant immediately
prior to the consummation of such Fundamental Transaction), and which is reasonably satisfactory in form and substance to the Holder. Upon the occurrence of any such Fundamental Transaction, the Successor Entity shall succeed to, and be substituted
for (so that from and after the date of such Fundamental Transaction, the provisions of this Warrant referring to the “Company” shall refer instead to the Successor Entity), and may exercise every right and power of the Company and shall
assume all of the obligations of the Company under this Warrant with the same effect as if such Successor Entity had been named as the Company herein. 

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

  
 11 

 f) Notice to Holder. 

i. Adjustment to Exercise Price. Whenever the Exercise Price is adjusted pursuant to any provision of this
Section 3, the Company shall promptly deliver to the Holder by facsimile or email a notice setting forth the Exercise Price after such adjustment and any resulting adjustment to the number of Warrant Shares and setting forth a brief statement
of the facts requiring such adjustment. 
 ii. Notice to Allow Exercise by Holder. If (A) the Company shall
declare a dividend (or any other distribution in whatever form) on the Common Stock, (B) the Company shall declare a special nonrecurring cash dividend on or a redemption of the Common Stock, (C) the Company shall authorize the granting to
all holders of the Common Stock rights or warrants to subscribe for or purchase any shares of capital stock of any class or of any rights, (D) the approval of any stockholders of the Company shall be required in connection with any
reclassification of the Common Stock, any consolidation or merger to which the Company is a party, any sale or transfer of all or substantially all of the assets of the Company, or any compulsory share exchange whereby the Common Stock is converted
into other securities, cash or property, or (E) the Company shall authorize the voluntary or involuntary dissolution, liquidation or winding up of the affairs of the Company, then, in each case, the Company shall cause to be delivered by
facsimile or email to the Holder at its last facsimile number or email address as it shall appear upon the Warrant Register of the Company, at least five (5) calendar days prior to the applicable record or effective date hereinafter specified,
a notice stating (x) the date on which a record is to be taken for the purpose of such dividend, distribution, redemption, rights or warrants, or if a record is not to be taken, the date as of which the holders of the Common Stock of record to
be entitled to such dividend, distributions, redemption, rights or warrants are to be determined or (y) the date on which such reclassification, consolidation, merger, sale, transfer or share exchange is expected to become effective or close,
and the date as of which it is expected that holders of the Common Stock of record shall be entitled to exchange their shares of the Common Stock for securities, cash or other property deliverable upon such reclassification, consolidation, merger,
sale, transfer or share exchange; provided that the failure to deliver such notice or any defect therein or in the delivery thereof shall not affect the validity of the corporate action required to be specified in such notice. To the extent that any
notice provided in this Warrant constitutes, or contains, material, non-public information regarding the Company or any of the Subsidiaries, the Company shall simultaneously file such notice with the
Commission pursuant to a Current Report on Form 8-K. The Holder shall remain entitled to exercise this Warrant during the period commencing on the date of such notice to the effective date of the event
triggering such notice except as may otherwise be expressly set forth herein. 

  
 12 

 Section 4. Transfer of Warrant. 

a) Transferability. Pursuant to FINRA Rule 5110(g)(1), neither this Warrant nor any Warrant Shares issued upon exercise
of this Warrant shall be sold, transferred, assigned, pledged or hypothecated, or be the subject of any hedging, short sale, derivative, put or call transaction that would result in the effective economic disposition of the securities by any person
for a period of 180 days immediately following the date of effectiveness or commencement of sales of the offering pursuant to which this Warrant is being issued, except the transfer of any security: 

 

	 	(i)	 by operation of law or by reason of reorganization of the Company; 

 

	 	(ii)	 to any FINRA member firm participating in the offering and the officers and partners thereof, if all securities
so transferred remain subject to the lock-up restriction in this Section 4(a) for the remainder of the time period; 

 

	 	(iii)	 if the aggregate amount of securities of the Company held by the Holder or related person do not exceed 1% of
the securities being offered; 

  

	 	(iv)	 that is beneficially owned on a pro-rata basis by all equity owners of
an investment fund, provided that no participating member manages or otherwise directs investments by the fund, and participating members in the aggregate do not own more than 10% of the equity in the fund; or 

 

	 	(v)	 the exercise or conversion of any security, if all securities received remain subject to the lock-up restriction in this Section 4(a) for the remainder of the time period. 

Subject to the foregoing restriction, compliance with any applicable securities laws and the conditions set forth in Section 4(d) hereof,
this Warrant and all rights hereunder are transferable, in whole or in part, upon surrender of this Warrant at the principal office of the Company or its designated agent, together with a written assignment of this Warrant substantially in the form
attached hereto duly executed by the Holder or its agent or attorney and funds sufficient to pay any transfer taxes payable upon the making of such transfer. Upon such surrender and, if required, such payment, the Company shall execute and deliver a
new Warrant or Warrants in the name of the assignee or assignees, as applicable, and in the denomination or denominations specified in such instrument of assignment, and shall issue to the assignor a new Warrant evidencing the portion of this
Warrant not so assigned, and this Warrant shall promptly be cancelled. Notwithstanding anything herein to the contrary, the Holder shall not be required to physically surrender this Warrant to the Company unless the Holder has assigned this Warrant
in full, in which case, the Holder shall surrender this Warrant to the Company within three (3) Trading Days of the date the Holder delivers an assignment form to the Company assigning this Warrant in full. The Warrant, if properly assigned in
accordance herewith, may be exercised by a new holder for the purchase of Warrant Shares without having a new Warrant issued. 

  
 13 

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

c) Warrant Register. The Company shall register this Warrant, upon records to be maintained by the Company for that
purpose (the “Warrant Register”), in the name of the record Holder hereof from time to time. The Company may deem and treat the registered Holder of this Warrant as the absolute owner hereof for the purpose of any exercise hereof or
any distribution to the Holder, and for all other purposes, absent actual notice to the contrary. 
 d) Transfer
Restrictions. If, at the time of the surrender of this Warrant in connection with any transfer of this Warrant, the transfer of this Warrant shall not be either (i) registered pursuant to an effective registration statement under the
Securities Act and under applicable state securities or blue sky laws or (ii) eligible for resale without volume or manner-of-sale restrictions or current public
information requirements pursuant to Rule 144, the Company may require, as a condition of allowing such transfer, that the Holder or transferee of this Warrant, as the case may be, provides to the Company an opinion of counsel, the form and
substance of which opinion shall be reasonably satisfactory to the Company, to the effect that the transfer of this Warrant does not require registration under the Securities Act. 

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

Section 5. Miscellaneous. 

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

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

  
 14 

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

d) Authorized Shares. 

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

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

  
 15 

 Before taking any action which would result in an adjustment in the number
of Warrant Shares for which this Warrant is exercisable or in the Exercise Price, the Company shall obtain all such authorizations or exemptions thereof, or consents thereto, as may be necessary from any public regulatory body or bodies having
jurisdiction thereof. 
 e) Governing Law. All questions concerning the construction, validity, enforcement and
interpretation of this Warrant shall be governed by and construed and enforced in accordance with the internal laws of the State of New York, without regard to the principles of conflicts of law thereof. Each party agrees that all legal proceedings
concerning the interpretations, enforcement and defense of the transactions contemplated by this Warrant (whether brought against a party hereto or their 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, and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim
that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is improper or is an inconvenient venue for such proceeding. Each party hereby irrevocably waives personal service of process and consents
to process being served in any such suit, 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 Warrant
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 either party
shall commence an action, suit or proceeding to enforce any provisions of this Warrant, the prevailing party in such action, suit or proceeding shall be reimbursed by the other party for their reasonable attorneys’ fees and other costs and
expenses incurred with the investigation, preparation and prosecution of such action or proceeding. 
 f)
Restrictions. The Holder acknowledges that the Warrant Shares acquired upon the exercise of this Warrant, if not registered, and the Holder does not utilize cashless exercise, will have restrictions upon resale imposed by state and federal
securities laws. 
 g) Nonwaiver and Expenses. No course of dealing or any delay or failure to exercise any right
hereunder on the part of Holder shall operate as a waiver of such right or otherwise prejudice the Holder’s rights, powers or remedies. Without limiting any other provision of this Warrant, if the Company willfully and knowingly fails to comply
with any provision of this Warrant, which results in any material damages to the Holder, the Company shall pay to the Holder such amounts as shall be sufficient to cover any costs and expenses including, but not limited to, reasonable
attorneys’ fees, including those of appellate proceedings, incurred by the Holder in collecting any amounts due pursuant hereto or in otherwise enforcing any of its rights, powers or remedies hereunder. 

  
 16 

 h) Notices. Any notice, request or other document required or
permitted to be given or delivered to the Holder by the Company shall be delivered to the address for the Holder in the Warrant Register. 

i) Limitation of Liability. No provision hereof, in the absence of any affirmative action by the Holder to exercise this
Warrant to purchase Warrant Shares, and no enumeration herein of the rights or privileges of the Holder, shall give rise to any liability of the Holder for the purchase price of any Common Stock or as a stockholder of the Company, whether such
liability is asserted by the Company or by creditors of the Company. 
 j) Remedies. The Holder, in addition to being
entitled to exercise all rights granted by law, including recovery of damages, will be entitled to specific performance of its rights under this Warrant. The Company agrees that monetary damages would not be adequate compensation for any loss
incurred by reason of a breach by it of the provisions of this Warrant and hereby agrees to waive and not to assert the defense in any action for specific performance that a remedy at law would be adequate. 

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

m) Severability. Wherever possible, each provision of this Warrant shall be interpreted in such manner as to be
effective and valid under applicable law, but if any provision of this Warrant shall be prohibited by or invalid under applicable law, such provision shall be ineffective to the extent of such prohibition or invalidity, without invalidating the
remainder of such provisions or the remaining provisions of this Warrant. 
 n) Headings. The headings used in this
Warrant are for the convenience of reference only and shall not, for any purpose, be deemed a part of this Warrant. 
 ********************

 (Signature Page Follows) 
  

  
 17 

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

			
	SUPERCONDUCTOR TECHNOLOGIES INC.
		
	By:	 	                
		 	Name:
		 	Title:

  
 18 

 NOTICE OF EXERCISE 

TO: SUPERCONDUCTOR TECHNOLOGIES INC. 
 (1) The
undersigned hereby elects to purchase                      Warrant Shares of the Company pursuant to the terms of the attached Warrant (only if
exercised in full), and tenders herewith payment of the exercise price in full, together with all applicable transfer taxes, if any. 
 (2)
Payment shall take the form of (check applicable box): 
 ☐ in lawful money of the United States; or 

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

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

 
  

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

 
  

 
  

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

			
	[SIGNATURE OF HOLDER]	 	

			
		
	Name of Investing Entity:	 	  

			
	Signature of Authorized Signatory of Investing Entity:	 	  

			
	Name of Authorized Signatory:	 	  

			
	Title of Authorized Signatory:	 	  

			
	Date:	 	  

 ASSIGNMENT FORM 

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

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

 

			
	Name:	  	
		  	  
 (Please Print)

		
	Address:	  	
		  	  
 (Please Print)

		
	Phone Number:	  	  

		
	Email Address:	  	  

		
	Dated: _______________ __, ______	  	
		
	Holder’s Signature:
                                        
	  	
		
	Holder’s Address:Ex.
10.1

 

NOTE
PURCHASE AGREEMENT

 

This
Note Purchase Agreement (“Agreement”) is made and entered into on May 20, 2019 (“Effective Date”),
by and between Inception Mining, Inc., a Nevada corporation (“Company”),
and the investor whose name appears on the signature page hereto (“Investor”).

 

Recitals

 

A.
The parties desire that, upon the terms and subject to the conditions herein, Investor will purchase for $3 Million a Warrant
and a Promissory Note that is convertible into Common Stock of the Company; and

 

B.
The offer and sale provided for herein is being made pursuant to the exemptions from registration under Section 4(a)(2) of
the Act as a transaction by an issuer not involving any public offering, and as a private placement of restricted securities to
an accredited investor pursuant to Rule 506 of Regulation D.

 

Agreement

 

In
consideration of the foregoing, the receipt and adequacy of which are hereby acknowledged, Company and Investor agree as follows:

 

I.
Definitions. In addition to the terms defined elsewhere in this Agreement and the Transaction
Documents, capitalized terms that are not otherwise defined have the meanings set forth in the Glossary of Defined Terms attached
hereto as Exhibit 1.

 

II.
Purchase and Sale.

 

A.
Purchase Amount. Subject to the terms and conditions herein and the satisfaction of the
conditions to Closing set forth below, for an aggregate purchase price of $3,000,000.00 (“Purchase Amount”),
Investor hereby irrevocably agrees to purchase a Warrant and a Note with the aggregate Face Value of $4,250,000.00 including an
original issue discount (OID), all in accordance with the terms, provisions, and schedule set forth in this Agreement and in the
Transaction Documents.

 

B.
Deliveries. The following documents will be fully executed and delivered at the Closing:

 

	 	1.	This
    Agreement;
	 	 	 
	 	2.	Note,
    in the form attached hereto as Exhibit 2;
	 	 	 
	 	3.	Transfer
    Agent Instructions, in the form attached hereto as Exhibit 3;
	 	 	 
	 	4.	Legal
    Opinion, in the form attached hereto as Exhibit 4;

 

    	1

    	 

    

 

	 	5.	Officer’s
    Certificate, in the form attached hereto as Exhibit 5;
	 	 	 
	 	6.	Secretary’s
    Certificate, in the form attached hereto as Exhibit 6;
	 	 	 
	 	7.	Warrant,
    in the form attached hereto as Exhibit 7; and
	 	 	 
	 	8.	Public
    Deed, in the form attached hereto as Exhibit 8.

 

C.
Closing Conditions. The consummation of the transactions contemplated by this Agreement
(“Closing”) is subject to the satisfaction of each of the following conditions:

 

1.
All documents, instruments and other writings required to be delivered by Company to Investor pursuant to any provision of
this Agreement or in order to implement and effect the transactions contemplated herein have been fully executed and delivered,
including without limitation those enumerated in Section II.B above;

 

2.
The Common Stock is listed for and currently trading on the same or higher Trading Market and Company is in compliance with
all requirements to maintain listing on the Trading Market, the Company has received no notice
of any suspension or delisting with respect to the trading of the shares of Common Stock on such
Trading Market, and Company is not aware of any current facts or circumstances that, with the passage of time, would reasonably
be expected to cause such disqualification;

 

3.
The representations and warranties of Company and Investor set forth in this Agreement are true and correct in all material
respects as if made on such date (except for representations and warranties expressly made as of a specified date, which will
be true as of such date);

 

4.
No material breach or default has occurred
under any Transaction Document or any other agreement between Company and Investor;

 

5.
Company has the number of duly authorized shares of Common Stock reserved
for issuance as required pursuant to the terms of this Agreement;

 

6.
There is not then in effect any law, rule or regulation prohibiting or restricting the transactions contemplated in any Transaction
Document, or requiring any consent or approval which will not have been obtained, nor is there any completed, ongoing, pending,
threatened or, to Company’s knowledge, contemplated proceeding or investigation which may have the effect of prohibiting
or adversely affecting any of the transactions contemplated by this Agreement, including without limitation the sale, issuance,
listing, trading or resale of any Shares on the Trading Market; no statute, rule, regulation, executive order, decree, ruling
or injunction will have been enacted, entered, promulgated or adopted by any court or governmental authority of competent jurisdiction
that prohibits the transactions contemplated by this Agreement, and no actions, suits or proceedings will be completed, ongoing,
pending, threatened or, to Company’s knowledge, contemplated by any person other than Investor or any Affiliate of Investor,
that seek to enjoin or prohibit the transactions contemplated by this Agreement; and

 

    	2

    	 

    

 

7.
Except as set forth under the corresponding section of the Disclosure Schedules, any rights of first refusal, preemptive rights,
rights of participation, or any similar right to participate in the transactions contemplated by this Agreement, if any, have
been waived in writing.

 

D.
Closings. Immediately when all conditions set forth in Section II.C have
been fully satisfied, Company will issue and sell to Investor and Investor will purchase the Note by payment to Company of $3,000,000.00
in cash, by wire transfer of immediately available funds to an account designated by Company.

 

III.
Representations and Warranties.

 

A.
Representations Regarding Transaction. Except as set forth under the corresponding section
of the Disclosure Schedules, if any, Company hereby represents and warrants to, and as applicable covenants with, Investor as
of the Closing:

 

1.
Organization and Qualification. Company and each Subsidiary 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, as applicable,
with the requisite power and authority to own and use its properties and assets and to carry on its business as currently conducted.
Neither Company nor any Subsidiary is in violation or default of any of the provisions of its respective certificate or articles
of incorporation, bylaws or other organizational or charter documents, except as would not reasonably be expected to result in
a Material Adverse Effect. Each of Company and each Subsidiary 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, would
not reasonably be expected to result in a Material Adverse Effect and there is no completed, pending, threatened or, to the knowledge
of Company, contemplated proceeding in any such jurisdiction revoking, limiting or curtailing or seeking to revoke, limit or curtail
such power and authority or qualification.

 

2.
Authorization; Enforcement.
Company has the requisite corporate power and authority to enter into and to consummate the transactions contemplated by each
of the Transaction Documents and otherwise to carry out its obligations hereunder or thereunder. The execution and delivery of
each of the Transaction Documents by Company and the consummation by it of the transactions contemplated hereby or thereby have
been duly authorized by all necessary action on the part of Company and no further consent or action is required by Company. Each
of the Transaction Documents has been, or upon delivery will be, duly executed by Company and, when delivered in accordance with
the terms hereof, will constitute the valid and binding obligation of Company, enforceable against Company in accordance with
its terms, except (a) as limited by general equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium
and other laws of general application affecting enforcement of creditors’ rights generally, (b) as limited by laws relating
to the availability of specific performance, injunctive relief or other equitable remedies and (c) insofar as indemnification
and contribution provisions may be limited by applicable law.

 

    	3

    	 

    

 

3.
No Conflicts. The execution, delivery and performance of the Transaction Documents by Company, the issuance and sale
of the Note, Warrant and Shares and the consummation by Company of the other transactions contemplated thereby do not and will
not (a) conflict with or violate any provision of Company’s or any Subsidiary’s certificate or articles of incorporation,
bylaws or other organizational or charter documents, (b) 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 Company or any Subsidiary, or give to others any rights of termination, amendment, acceleration or cancellation (with or without
notice, lapse of time or both) of, any material agreement, credit facility, debt or other instrument (evidencing Company or Subsidiary
debt or otherwise) or other understanding to which Company or any Subsidiary is a party or by which any property or asset of Company
or any Subsidiary is bound or affected, (c) conflict with or result in a violation of any material law, rule, regulation, order,
judgment, injunction, decree or other restriction of any court or governmental authority to which Company or a Subsidiary is subject
(including U.S. federal and state securities laws and regulations), or by which any property or asset of Company or a Subsidiary
is bound or affected, or (d) conflict with or violate the terms of any material agreement by which Company or any Subsidiary is
bound or to which any property or asset of Company or any Subsidiary is bound or affected; except in the case of each of clauses
(b), (c) and (d), such as would not reasonably be expected to result in a Material Adverse Effect.

 

4.
Litigation. There is no action, suit, inquiry, notice of violation,
proceeding or investigation completed, ongoing, pending, threatened or, to the knowledge of Company, contemplated against or affecting
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
would reasonably be expected to have a Material Adverse Effect or challenge the legality, validity or enforceability of any of
the Transaction Documents. The Commission has not issued any stop order or other order suspending the effectiveness of any registration
statement filed by Company or any Subsidiary under the Exchange Act or the Act.

 

5.
Filings, Consents and Approvals.
Neither Company nor any Subsidiary is 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 Company
of the Transaction Documents, other than required federal and state securities filings, and such filings and approvals as are
required to be made or obtained under the applicable Trading Market rules in connection with the transactions contemplated hereby,
each of which has been, or if not yet required to be filed will be, timely filed.

 

6.
Issuance of Shares. The Shares are duly authorized and, when issued upon the conversion of the Note or exercise of
the Warrant in accordance with their respective terms, will be duly and validly issued, fully paid and nonassessable, free and
clear of all Liens except those created by the Investor.

 

    	4

    	 

    

 

7.
Disclosure; Non-Public Information.
Company will timely file a current report on Form 8-K (“Current
Report”) describing the material terms and conditions of this Agreement, a copy of which has been provided to Investor
prior to the Effective Date. There is no adverse material information regarding Company that has not been disclosed to Investor
prior to the Effective Date. All information that Company has provided to Investor
that constitutes or might constitute material, non-public information will be included in the Current Report. Notwithstanding
any other provision, except with respect to information that will be, and only to the extent that it actually is, timely publicly
disclosed by Company pursuant to the foregoing sentence, neither Company nor any other Person acting on its behalf has provided
Investor or its representatives, agents or attorneys with any information that constitutes or might constitute material, non-public
information, including without limitation this Agreement and the Exhibits and Disclosure Schedules hereto. No information contained
in the Disclosure Schedules constitutes material non-public information. Company understands and confirms that Investor will rely
on the foregoing representations and covenants in effecting transactions in securities of Company.

 

8.
No Integrated Offering. Neither 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 to be integrated with prior offerings by Company that cause a violation of the Act or any applicable
stockholder approval provisions, including, without limitation, under the rules and regulations of the Trading Market.

 

9.
Financial Condition. The Public Reports
set forth as of the dates thereof all outstanding secured and unsecured Indebtedness of Company or any Subsidiary, or for which
Company or any Subsidiary has commitments, and any material default with respect to any Indebtedness. 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, and represents that it will not do so.

 

10.
Section 5 Compliance. All information provided to Investor regarding Company, its business and the transactions contemplated
hereby, including without limitation the Disclosure Schedules and the representations and warranties in this Agreement, and the
other statements made by Company in the Transaction Documents, do not contain any material untrue statement or omit to state a
material fact necessary to make any of them, in light of the circumstances in which it was made, not misleading. Company is not
aware of any facts or circumstances that would cause the transactions contemplated by the Transaction Documents, when consummated,
to violate Section 5 of the Act or other federal or state securities laws or regulations.

 

11.
Investment Company. Company is not, and is not an Affiliate of, and immediately after receipt of payment for the Note,
will not be or be an Affiliate of, an “investment company” within the meaning of the Investment Company Act of 1940,
as amended. Company will conduct its business in a manner so that it will not become subject to the Investment Company Act.

 

12.
Acknowledgments Regarding Investor. Company’s decision to enter into this Agreement has been based solely on
the independent evaluation by Company and its representatives, and Company acknowledges and agrees that:

 

    	5

    	 

    

 

a.
Investor is not, has never been, and as a result of the transactions contemplated by the Transaction Documents will not become
an officer, director, insider or control person of Company, or to Company’s knowledge 10% or greater shareholder or otherwise
an affiliate of Company as defined under Rule 12b-2 of the Exchange Act;

 

b.
Investor and its representatives have not made and do not make any representations, warranties or agreements with respect
to the Note, the Warrant, the Shares, this Agreement, or the transactions contemplated hereby other than those specifically set
forth in Section III.C below; Company has not relied upon, and expressly disclaims reliance upon, any and all written or
oral statements or representations made by any persons prior to this Agreement;

 

c.
The conversion of Note and resale of Conversion Shares will result in dilution, which may be substantial; the number of Conversion
Shares will increase in certain circumstances; and Company’s obligation to issue and deliver Conversion Shares in accordance
with this Agreement and the Note is absolute and unconditional regardless of the dilutive effect that such issuances may have;
and

 

d.
Investor is acting solely in the capacity of arm’s length purchaser with respect to this Agreement and the transactions
contemplated hereby; neither Investor nor any of its Affiliates, agents or representatives has or is acting as a legal, financial,
investment, accounting, tax or other advisor to Company, or fiduciary of Company, or in any similar capacity; neither Investor
nor any of its Affiliates, agents or representatives has provided any legal, financial, investment, accounting, tax or other advice
to Company; any statement made in connection with this Agreement or the transactions contemplated hereby is not advice or a recommendation,
and is merely incidental to Investor’s purchase of the Note.

 

13.
No Bad Actor Disqualification. Neither Company, any predecessor of Company, any affiliate of Company, any director,
executive officer, other officer of Company participating in the offering, or any beneficial owner of 20% or more of Company’s
outstanding voting equity securities is subject to any bad actor disqualification as provided in Rule 506(d) of Regulation D,
and Company is not aware of any current facts or circumstances that, with the passage of time, would reasonably be expected to
cause such disqualification.

 

14.
Not a Shell. Company is not a shell company as defined in Rule 12b-2 of the Exchange Act.

 

B.
Representations Regarding Company. Except as set forth in any Public Reports and attached
exhibits, or under the corresponding section of the Disclosure Schedules, if any, Company hereby represents and warrants to, and
as applicable covenants with, Investor as of the Closing:

 

    	6

    	 

    

 

1.
Capitalization. The capitalization of the Company as of the Effective Date is as described in the Public Reports or
Disclosure Schedules. 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 which has not been waived or satisfied. Except as
a result of the purchase and sale of the Note, there are no outstanding options, warrants, script rights to subscribe to, calls
or commitments of any character whatsoever relating to, or securities, rights or obligations convertible into or exchangeable
for, or giving any Person any right to subscribe for or acquire, any shares of Common Stock, or contracts, commitments, understandings
or arrangements by which Company or any Subsidiary is or may become bound to issue additional shares of Common Stock or securities
convertible into or exercisable for shares of Common Stock. The issuance and sale of the Note, Warrant and Shares will not obligate
Company to issue shares of Common Stock or other securities to any Person, other than Investor, and will not result in a right
of any holder of Company securities to adjust the exercise, conversion, exchange, or reset price under such securities. All of
the outstanding shares of capital stock of Company are validly issued, fully paid and nonassessable, have been issued in material
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. No further
approval or authorization of any stockholder, the Board of Directors of Company or others is required for the issuance and sale
of the Note, Warrant and Shares. There are no existing or contemplated subscription or investment agreements, stockholder agreements,
voting agreements or other similar agreements with respect to Company’s capital stock to which Company is a party or, to
the knowledge of Company, between or among any of Company’s stockholders.

 

2.
Subsidiaries. All of the direct and indirect subsidiaries of Company are set forth in the Public Reports or the corresponding
section of the Disclosure Schedules. Company owns, directly or indirectly, all
of the capital stock or other equity interests of each Subsidiary, and all of such directly or indirectly owned capital stock
or other equity interests are owned free and clear of any Liens. All the issued
and outstanding shares of capital stock of each Subsidiary are duly authorized, validly issued, fully paid, nonassessable and
free of preemptive and similar rights to subscribe for or purchase securities.

 

3.
Public Reports; Financial Statements. Company has filed all required
Public Reports for the one year preceding the Effective Date. As of their respective
dates or as subsequently amended, the Public Reports complied in all material respects with the requirements of the Act and the
Exchange Act and the rules and regulations of the Commission promulgated thereunder, as applicable, and none of the Public Reports,
when filed and, as applicable, amended, 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 light of the circumstances under which
they were made, not misleading. The financial statements of Company included in the Public Reports, as amended, comply in all
material respects with applicable accounting requirements and the rules and regulations of the Commission with respect thereto
as in effect at the time of filing. Such financial statements have been prepared in accordance with 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 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.

 

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4.
Material Changes. Since the end of the most recent year for which an Annual Report on Form 10-K has been filed with
the Commission, (a) there has been no event, occurrence or development that has had, or that would reasonably be expected to result
in, a Material Adverse Effect, (b) Company has not incurred any liabilities (contingent or otherwise) other than (i) trade payables
and accrued expenses incurred in the ordinary course of business consistent with past practice, and (ii) liabilities not required
to be reflected in Company’s financial statements pursuant to GAAP or required to be disclosed in filings made with the
Commission, (c) Company has not altered its method of accounting, (d) 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 (e) Company has not issued any equity securities to any officer, director or Affiliate, except pursuant
to existing Company equity incentive plans. Company does not have pending before the Commission any request for confidential treatment
of information.

 

5.
Litigation. There is no Action completed, ongoing, pending, threatened
or, to the knowledge of Company, contemplated, that would reasonably be expected to result in a Material Adverse Effect. Neither
Company nor any Subsidiary, nor any current director or officer thereof, nor to the knowledge of Company any former director or
officer of Company, and greater than 5% shareholder of Company, or 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, is not ongoing, pending or threatened, and to the knowledge of Company is not contemplated, any investigation
by the Commission or any law enforcement agency involving Company or any current director or officer of Company, or to the knowledge
of Company any former director or officer of Company, and greater than 5% shareholder of Company, or any director or officer thereof.

 

6.
No Bankruptcy. The Company has not filed and, to the Company’s knowledge, no other Person has filed or commenced,
any petition or application, or any judicial or administrative proceeding commenced which has not been discharged, with respect
to the Company or any Subsidiary or with respect to any of the properties or assets of Company or any Subsidiary under any applicable
law relating to bankruptcy, insolvency, reorganization, fraudulent transfer, compromise, arrangement of debt, creditors’
rights and no general assignment has been made by the Company or any Subsidiary for the benefit of creditors.

 

7.
Labor Relations. No material labor dispute exists or, to the knowledge
of Company, is imminent with respect to any of the employees of Company, which would reasonably be expected to result in a Material
Adverse Effect.

 

8.
Compliance. Neither Company nor any Subsidiary (a) is in material
default under or in material 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 Company or any Subsidiary under), nor has Company or any Subsidiary received notice of a
claim that it is in material default under or that it is in material violation of, any indenture, loan or credit agreement or
any other similar 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), (b) is in violation of any order of any court, arbitrator or governmental body,
or (c) is or has been in violation of any statute, rule or regulation of any governmental authority, including without limitation
all foreign, federal, state and local laws applicable to its business, except in each case as would not reasonably be expected
to have a Material Adverse Effect.

 

    	8

    	 

    

 

9.
Regulatory Permits. Company and each Subsidiary possess all certificates, authorizations and permits issued by the
appropriate federal, state, local or foreign regulatory authorities necessary to conduct their respective businesses as described
in the Public Reports, except where the failure to possess such permits would not, individually or in the aggregate, reasonably
be expected to result in a Material Adverse Effect (“Material Permits”), and neither Company nor any Subsidiary
has received any notice of proceedings relating to the revocation or modification of any Material Permit.

 

10.
Title to Assets. Company and each Subsidiary have good and marketable title
in fee simple to all real property owned by them that is material to the business of Company and each Subsidiary and good
and marketable title in all personal property owned by them that is material to the business of Company and each Subsidiary, in
each case free and clear of all Liens, except for Liens that 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 Company and each Subsidiary and Liens for the payment
of federal, state or other taxes, the payment of which is neither delinquent nor subject to penalties. Any real property and facilities
held under lease by Company and each Subsidiary are held by them under leases which, to the Company’s knowledge, are valid,
subsisting and enforceable leases and as to which Company and each Subsidiary are in compliance, except where such noncompliance
could not reasonably be expected to have a Material Adverse Effect.

 

11.
Patents and Trademarks. Company and each Subsidiary have, or have
rights to use, all patents, patent applications, trademarks, trademark applications, service marks, trade names, copyrights, licenses
and other similar rights that are necessary or material for use in connection with their respective businesses as described in
the Public Reports and which the failure to so have would have a Material Adverse Effect (collectively, “Intellectual
Property Rights”). Neither Company nor any Subsidiary has received a written notice that the Intellectual Property Rights
used by Company or any Subsidiary violates or infringes
upon the rights of any Person. To the knowledge of Company, all such Intellectual Property Rights are enforceable and there
is no existing infringement by another Person of any of the Intellectual Property Rights of Company or each Subsidiary.

 

12.
Transactions with Affiliates and Employees. None of the officers or directors of Company and, to the knowledge of Company,
none of the employees of Company is presently a party to any transaction with 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, or otherwise requiring payments to or from any
officer, director or such employee or, to the knowledge of Company, any entity in which any officer, director, or any such employee
has a substantial interest or is an officer, director, trustee or partner, in each case in excess of $120,000 other than (i) for
payment of salary or consulting fees for services rendered, (ii) reimbursement for expenses incurred on behalf of Company and
(iii) for other employee benefits, including stock option agreements under any equity incentive plan of Company.

 

    	9

    	 

    

 

13.
Certain Fees. No brokerage or finder’s fees or commissions are or will be payable to any broker, financial advisor
or consultant, finder, placement agent, investment banker, bank or other Person with respect to the transactions contemplated
by this Agreement as a result of any action by the Company or any Person acting on its behalf. Notwithstanding any other provision,
Investor will 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 this Agreement
or the other Transaction Documents.

 

14.
Registration Rights. No Person has any right to cause Company to effect the registration under the Act of any securities
of Company.

 

15.
Listing and Maintenance Requirements.
The Common Stock is registered pursuant to Section 12 of the
Exchange Act, and 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 Company received any notification that the Commission is contemplating
terminating such registration. Company has not, in the 12 months preceding the Effective Date, received notice from any Trading
Market on which the Common Stock is or has been listed or quoted to the effect that Company is not in compliance with the listing
or maintenance requirements of such Trading Market. Company is, and has no reason to
believe that it will not in the foreseeable future continue to be, in compliance with all listing and maintenance requirements
of the Trading Market on which the Common Stock is currently quoted.

 

16.
Foreign Corrupt Practices. Neither Company, nor to the knowledge of Company, any agent or other person acting on behalf
of Company, has (a) directly or indirectly, used any corrupt funds for unlawful contributions, gifts, entertainment or other unlawful
expenses related to foreign or domestic political activity, (b) 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, (c) failed to disclose fully any
contribution made by Company, or made by any person acting on its behalf of which Company is aware, which is in violation of law,
or (d) violated in any material respect any provision of the Foreign Corrupt Practices Act of 1977, as amended.

 

17.
Auditor. Company’s auditor is set forth in the Public Reports and
such auditor is an independent registered public accounting firm registered with the PCAOB.

 

18.
No Disagreements with Accountants or Lawyers. There are no material disagreements presently existing, or reasonably
anticipated by Company to arise, between Company and the accountants or lawyers formerly or presently employed by Company.

 

19.
Powers of Attorney. There are no outstanding powers of attorney executed on behalf of the Company or any Subsidiary.

 

20.
Computer and Technology Security. Company has taken reasonable steps to safeguard the information technology systems
utilized in the operation of the business of Company, including the implementation of procedures designed to minimize the risk
that such information technology systems have any disabling codes or instructions, timer, copy protection device, clock, counter
or other limiting design or routing and any back door, virus, malicious code or other software routines or hardware components
that in each case permit unauthorized access or the unauthorized disablement or unauthorized erasure of data or other software
by a third party, and, to Company’s knowledge, to date there have been no successful unauthorized intrusions or breaches
of the security of its information technology systems.

 

    	10

    	 

    

 

21.
Data Privacy. Company has: (a) complied with, and is presently in compliance in all material respects with, all applicable
laws in connection with data privacy, information security, data security and/or personal information; (b) complied in all material
respects with, and is presently in material compliance with, its policies and procedures applicable to data privacy, information
security, data security, and personal information; (c) not experienced any material incident in which personal information or
other sensitive data was or may have been stolen or improperly accessed; and Company is not aware of any facts suggesting the
likelihood of the foregoing, including without limitation, any breach of security or receipt of any notices or complaints from
any Person regarding personal information or other data.

 

C.
Representations and Warranties of Investor. Investor hereby represents and warrants to
Company as of the Closing as follows:

 

1.
Organization; Authority.
Investor is an entity validly existing and in good standing under the laws of the jurisdiction of its organization with full right,
company power and authority to enter into and to consummate the transactions contemplated by the Transaction Documents and otherwise
to carry out its obligations thereunder. The execution, delivery and performance by Investor of the transactions contemplated
by this Agreement have been duly authorized by all necessary company or similar action on the part of Investor. Each Transaction
Document to which it is a party has been, or will be, duly executed by Investor, and when delivered by Investor in accordance
with the terms hereof, will constitute the valid and legally binding obligation of Investor, enforceable against it in accordance
with its terms, except (a) as limited by general equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium
and other laws of general application affecting enforcement of creditors’ rights generally, (b) as limited by laws relating
to the availability of specific performance, injunctive relief or other equitable remedies, and (c) insofar as indemnification
and contribution provisions may be limited by applicable law.

 

2.
Investor Status. At the time Investor was offered the Note, it was, and at the Effective Date it is: (a) an accredited
investor as defined in Rule 501(a) under the Act; and (b) not a registered broker-dealer, member of FINRA, or an affiliate thereof.

 

3.
Experience of Investor. Investor, 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 Note, and has so evaluated the merits and risks of such investment. Investor is able to bear the economic risk of an investment
in the Note and, at the present time, is able to afford a complete loss of such investment.

 

4.
Ownership. Investor is acquiring the Note as principal for its own account.

 

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5.
No Short Sales. Neither Investor nor any Affiliate holds any short position in, nor has engaged in any Short Sales
of the Common Stock, or engaged in any hedging transactions with regard to the Conversion Shares prior to the Effective Date.

 

IV.
Other Provisions.

 

A.
Investor Due Diligence. Investor will have the right and opportunity to conduct customary
due diligence with respect to any Registration Statement or Prospectus in which the name of Investor or any Affiliate of Investor
appears, and will review and respond promptly to Company requests.

 

B.
Furnishing of Information. As long as the Note is outstanding in any amount: (1) Company
will timely file all reports required to be filed by Company after the Effective Date pursuant to the Exchange Act, (2) Company
will prepare and make publicly available such information as is required for Investor to sell its Conversion Shares under Rule
144, and (3) Company will take such further action as Investor may reasonably request, all to the extent required from time to
time to enable Investor to sell its Conversion Shares without registration under the Act within the limitation of the exemptions
provided by Rule 144.

 

C.
Integration. Company will 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 Act, that would be integrated with the offer or sale of the
Note, Warrant or Shares to Investor for purposes of the rules and regulations of any Trading Market such that it would require
stockholder approval prior to the closing of such other transaction unless stockholder approval is obtained before the closing
of such subsequent transaction.

 

D.
Disclosure and Publicity. Company will provide to Investor, for review and approval prior
to filing or issuing, that portion of any current, periodic or public report, registration statement, press release, public statement
or communication relating to or referencing Investor, any Transaction Documents or the transactions contemplated thereby, any
such approval not to be unreasonably withheld.

 

E.
Shareholders Rights Plan. No claim will be made or enforced by Company or, to the knowledge
of Company, any other Person that Investor is an “Acquiring Person” under any shareholders rights plan or similar
plan or arrangement in effect or hereafter adopted by Company, or that Investor could be deemed to trigger the provisions of any
such plan or arrangement, in either such case, by virtue of receiving Shares under the Transaction Documents or under any other
agreement between Company and Investor. Company will conduct its business in a manner so that it will not become subject to the
Investment Company Act of 1940, as amended.

 

F.
No Non-Public Information. Company covenants and agrees that neither it nor any other
Person acting on its behalf will, provide Investor or its agents or counsel with any information that Company believes or reasonably
should believe will constitute material non-public information after Closing. On and after Closing, neither Investor nor any Affiliate
of Investor will have any duty of trust or confidence that is owed directly, indirectly, or derivatively, to Company or the stockholders
of Company, or to any other Person who is the source of material non-public information regarding Company. Company understands
and confirms that Investor will be relying on the foregoing in effecting transactions in securities of Company, including without
limitation resales of the Shares.

 

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G.
Indemnification of Investor.

 

1.
Obligation to Indemnify. Subject
to the provisions of this Section IV.G, Company will indemnify and hold Investor, its
Affiliates, managers and advisors, and each of their officers, directors, shareholders, partners, employees, representatives,
agents and attorneys, and any person who controls Investor within the meaning of Section 15 of the Act or Section 20 of the Exchange
Act (collectively, “Investor Parties” and each a “Investor Party”),
harmless from any and all losses, liabilities, obligations, claims, contingencies, damages, reasonable costs and expenses, including
all judgments, amounts paid in settlements, court costs and reasonable attorneys’ fees and costs of investigation (collectively,
“Losses”) that any Investor 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 Company in this Agreement or in the
other Transaction Documents, (b) any untrue statement or alleged untrue statement of
a material fact contained in the Registration Statement, Prospectus, Prospectus Supplement, or any
information incorporated by reference therein, or arising out of or based upon any omission or alleged omission to state
a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made,
not misleading, or (c) any action by a creditor or stockholder of Company who is not an Affiliate of an Investor Party, challenging
the transactions contemplated by the Transaction Documents; provided, however, that Company will not be obligated to indemnify
any Investor Party for any Losses finally adjudicated to be caused solely by (i) a false statement of material fact contained
within written information provided by such Investor Party expressly for the purpose of including it in the applicable Registration
Statement, Prospectus, Prospectus Supplement, or (ii) such Investor Party’s unexcused material breach of an express provision
of this Agreement or another Transaction Document or willful misconduct or fraud.

 

2.
Procedure for Indemnification. If any action will be brought against an Investor Party in respect of which indemnity
may be sought pursuant to this Agreement, such Investor Party will promptly notify Company in writing, and Company will have the
right to assume the defense thereof with counsel of its own choosing. Investor Parties will have the right to employ separate
counsel in any such action and participate in the defense thereof, but the reasonable fees and expenses of such counsel will be
at the expense of Investor Parties except to the extent that (a) the employment thereof has been specifically authorized by Company
in writing, (b) Company has failed after a reasonable period of time to assume such defense and to employ counsel or (c) in such
action there is, in the reasonable opinion of such separate counsel, a material conflict with
respect to the dispute in question on any material issue between the position of Company and the position of Investor
Parties such that it would be inappropriate for one counsel to represent Company and Investor Parties. Company will not
be liable to Investor Parties under this Agreement (i) for any settlement by an Investor Party effected without Company’s
prior written consent, which will not be unreasonably withheld or delayed; or (ii) to the extent, but only to the extent that
a loss, claim, damage or liability is either attributable to Investor’s
breach of any of the representations, warranties, covenants or agreements made by Investor in this Agreement or in the other Transaction
Documents or willful misconduct or fraud. In no event will the Company be liable for the reasonable fees and expenses for more
than one separate firm of attorneys (plus local counsel as applicable) to represent all Investor Parties.

 

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3.
Other than the liability of Investor to Company for uncured material breach of the express provisions
of this Agreement or willful misconduct or fraud, no Investor Party will have any liability
to Company or any Person asserting claims on behalf of or in right of Company as a result of acquiring the Note, Warrant
or Shares under this Agreement.

 

H.
Reservation of Shares. Company has reserved from its duly authorized Common Stock for
issuance pursuant to the Transaction Documents authorized shares of Common Stock in the amount required by the Transaction Documents
and will at all times maintain such reserve (the “Reserved Amount”). If Company
shall issue any securities or make any change to its capital structure which would change the number of shares of Common Stock
into which the Note or Warrant shall be convertible or exercisable at the then current Conversion Price or Exercise Price, Company
will at the same time make proper provision so that thereafter there shall be a sufficient number of shares of Common Stock authorized
and reserved, free from preemptive rights, for conversion of the outstanding Note and exercise of the outstanding Warrant. Company
(i) acknowledges that it has irrevocably instructed its transfer agent to issue certificates for the Common Stock issuable upon
conversion of the Note and exercise of the Warrant, and agrees that its issuance of the Note and Warrant will constitute full
authority to its officers and agents who are charged with the duty of executing stock certificates to execute and issue the necessary
certificates for shares of Common Stock in accordance with the terms and conditions of the Note and Warrant.

 

I.
Activity Restrictions. For so long as Investor or any of its Affiliates holds any Conversion
Shares, neither Investor nor any Affiliate will: (1) vote any shares of Common Stock owned or controlled by it, sign or solicit
any proxies, attend or be present at a shareholder meeting for purposes of determining a quorum, or seek to advise or influence
any Person with respect to any voting securities of Company, except in accordance with the recommendation of Company’s board
of directors; (2) engage or participate in any actions, plans or proposals which relate to or would result in (a) acquiring additional
securities of Company, alone or together with any other Person, which would result in beneficially owning or controlling more
than 9.99% of the total outstanding Common Stock or other voting securities of Company, (b) an extraordinary corporate transaction,
such as a merger, reorganization or liquidation, involving Company or any of its Subsidiaries, (c) a sale or transfer of a material
amount of assets of Company or any of its Subsidiaries, (d) any change in the present board of directors or management of Company,
including any plans or proposals to change the number or term of directors or to fill any existing vacancies on the board, (e)
any material change in the present capitalization or dividend policy of Company, (f) any other material change in Company’s
business or corporate structure, including but not limited to, if Company is a registered closed-end investment company, any plans
or proposals to make any changes in its investment policy for which a vote is required by Section 13 of the Investment Company
Act of 1940, (g) changes in Company’s charter, bylaws or instruments corresponding thereto or other actions which may impede
the acquisition of control of Company by any Person, (h) a class of securities of Company being delisted from a national securities
exchange or to cease to be authorized to be quoted in an inter-dealer quotation system of a registered national securities association,
(i) a class of equity securities of Company becoming eligible for termination of registration pursuant to Section 12(g)(4) of
the Act, or (j) any action, intention, plan or arrangement similar to any of those enumerated above; or (3) request Company or
its directors, officers, employees, agents or representatives to amend or waive any provision of this section.

 

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J.
No Shorting. For so long as the Note is outstanding in any amount, neither Investor nor
any of its Affiliates will engage in or effect, directly or indirectly, any Short Sale of Common Stock. For the avoidance of doubt,
Investor selling Shares after Investor has delivered a Delivery Notice to Company is not a Short Sale. There will be no restriction
or limitation of any kind on Investor’s right or ability to sell or transfer any or all of the Shares at any time, in its
sole and absolute discretion. Investor may not sell, transfer or assign the Note, the Warrant or any of its rights under this
Agreement.

 

K.
Stock Splits. If Company at any time on or after the Effective Date subdivides (by any
stock split, stock dividend, recapitalization or otherwise) or combines (by combination, reverse stock split or otherwise) one
or more classes of its outstanding shares of Common Stock into a greater or lesser number of shares, the share numbers, prices
and other amounts set forth in this Agreement, as in effect immediately prior to such subdivision or combination, will be proportionately
reduced or increased, as applicable, effective at the close of business on the date the subdivision or combination becomes effective.

 

L.
Subsequent Financings.

 

1.
As long as the Note is outstanding in any amount, Company will not enter into any agreement
that in any way restricts its ability to enter into any agreement, amendment or waiver with Investor, including without limitation
any agreement to offer, sell or issue to Investor any preferred stock, common stock or other securities of Company.

 

2.
Until six months after Closing, Company will not enter into any financing that uses a shelf
registration, contains registration rights or otherwise provides for the issuance of free trading stock, other than: (a) with
Investor, (b) in connection with a strategic transaction, or (c) the sale of restricted Common Stock at a fixed price. For the
avoidance of doubt, Company may enter into any unregistered financing of nonconvertible debt or restricted stock with no registration
rights.

 

3.
As long as any part of the Note is outstanding, Company will not agree or enter into any equity
or convertible financing pursuant to which shares of Common Stock or Common Stock equivalents may effectively be issued at a variable
price or where the price or number of shares are subject to any type of variability or reset feature. Provided, however, that
Company may enter into any transaction: (a) with Investor, (b) for unregistered, non-convertible debt, (c) for restricted stock
with no registration rights, (d) for Common Stock at a fixed price at no more than a 5% discount to the most recent closing price
of the Common Stock on the Trading Market, (e) reasonably equivalent value given as consideration for a strategic acquisition,
or (f) that includes an immediate, unconditional offer to Investor to purchase the Note by wire transfer of immediately available
funds in the amount of 140% of the then outstanding Liquidation Value.

 

    	15

    	 

    

 

4.
So long as any part of the Note is outstanding, upon any issuance by Company or any of its subsidiaries
of any security with any term more favorable to the holder of such security or with a term in favor of the holder of such security
that was not similarly provided to Investor, then Company will notify Investor of such additional or more favorable term and such
term, at Investor’s option, shall become a part of the transaction documents with Investor. The types of terms contained
in another security that may be more favorable to the holder of such security include, but are not limited to, terms addressing
conversion discounts, prepayment rate, conversion look back periods, interest rates, original issue discounts, stock sale price,
private placement price per share, and warrant coverage.

 

M.
Right of First Refusal. If at any time while the Note is outstanding in any amount, Company
has a bona fide offer of capital or financing from any person, that Company intends to act upon, then Company must first offer
such opportunity to Investor to provide such capital or financing to Company on the same terms as each respective person’s
terms. Except as otherwise provided in any Transaction Documents, should Investor be unwilling or unable to provide such capital
or financing to Company within 5 Trading Days from Investor’s receipt of written notice of the offer from Company, then
Company may obtain such capital or financing from that respective person upon the exact same terms and conditions offered by Company
to Investor, which transaction must be completed within 30 days after the date of the notice. If Company does not receive the
capital or financing from the respective person within 30 days after the date of the respective notice, then Company must again
offer the capital or financing opportunity to Investor as described above, and the process detailed above shall be repeated.

 

V.
Registration Statement.

 

A.
Filing.

 

1.
Company will at its sole cost and expense prepare and file with the Commission as soon as reasonably possible after the Effective
Date, and in any event within 30 days, a Registration Statement (“Registration Statement”) on Form S-3 or,
if Form S-3 is unavailable, Form S-1, registering the delayed and continuous resale of all Shares pursuant to Rule 415 under the
Act, and will use reasonable best efforts to cause such Registration Statement to be declared effective under the Act as promptly
as practicable, and in any event within 75 days of Closing, and to remain continuously effective until all Shares may be resold
by Investor pursuant to Rule 144 without volume restrictions, manner-of-sale restrictions, or Company being in compliance with
any current public information requirement (the “Registration Period”).

 

2.
If at any time after the initial registration Statement is filed on Form S-3 or Form S-1, the Registration Statement does
not remain effective, Company shall use reasonable best efforts to amend the Registration Statement to continue effectiveness
uninterrupted.

 

B.
Procedures. In connection with the Registration Statement, Company will, as soon as reasonably practicable:

 

1.
Prepare and file with the Commission such pre-effective and post-effective amendments and supplements to the Registration
Statement and the Prospectus used in connection with the Registration Statement, and file such reports under the Exchange Act,
as may be necessary to cause the Registration Statement to become effective, to keep the Registration Statement continuously effective
during the Registration Period and not misleading in any material respect, and as may otherwise be required or applicable under,
and to comply with the provisions of, the Act with respect to the disposition of all Shares covered by the Registration Statement
during the Registration Period.

 

    	16

    	 

    

 

2.
Furnish to Investor such number of copies of the Prospectus, and each amendment or supplement thereto, in conformity with
the requirements of the Act, and such other documents as Investor may reasonably request in order to facilitate the disposition
of Shares owned by it.

 

3.
Notify Investor: (a) when a Prospectus or any Prospectus supplement or post-effective amendment is proposed to be filed and,
with respect to any post-effective amendment, when the same has become effective, except for any filing to be made solely to incorporate
by reference a Current Report on Form 8-K, Quarterly Report on Form 10-Q or Annual Report on Form 10-K to be filed with the Commission;
(b) of any request by the Commission or any other federal or state governmental authority for amendments or supplements to a Registration
Statement or a Prospectus or for additional information; (c) of the issuance by the Commission of any stop order suspending the
effectiveness of a Registration Statement or the initiation of any proceedings for that purpose; (d) of the receipt by the Company
of any notification with respect to the suspension of the qualification or exemption from qualification of any of the Shares for
sale in any jurisdiction, or the initiation or threatening of any proceeding for such purpose, and (e) of the occurrence of any
event or circumstance that makes any statement made in the Registration Statement or Prospectus or any document incorporated or
deemed to be incorporated therein by reference untrue in any material respect or that requires the making of any changes in the
Registration Statement, Prospectus or documents so that, in the case of a Registration Statement or the Prospectus, as the case
may be, it will not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein
or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading; provided,
however, in no event shall any such notice contain any information which would constitute material, non-public information regarding
the Company.

 

4.
Use reasonable best efforts to avoid the issuance of, or, if issued, obtain the withdrawal of, any order suspending the effectiveness
of the Registration Statement, or the lifting of any suspension of the qualification, or exemption from qualification, of any
of the Shares for sale in any jurisdiction, at the earliest practicable moment.

 

5.
Incorporate in a Prospectus supplement or post-effective amendment such information as Investor requests be included therein
regarding Investor or the plan of distribution of the Shares; and make all required filings of the Prospectus supplement or such
post-effective amendment as soon as practicable after the Company has received notification of such matters to be incorporated
in such Prospectus supplement or post-effective amendment; provided, however, that the Company shall not be required to take any
action pursuant to this paragraph that would violate applicable law.

 

    	17

    	 

    

 

6.
Whenever necessary, prepare and deliver to Investor any required supplement or amendment, including a post-effective amendment,
to the Registration Statement or a supplement to the Prospectus or any document incorporated or deemed to be incorporated therein
by reference, and file any other required document, including such reports as may be required to be filed under the Exchange Act,
so that, as thereafter delivered, the Prospectus will not contain an untrue statement of a material fact or omit to state a material
fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they
were made, not misleading.

 

7.
Use reasonable best efforts to cause all Shares to be listed on the Trading Market or such other securities exchange or automated
quotation system, if any, as is then the principal securities exchange or automated quotation system on which the Common Stock
is then listed.

 

8.
Fully cooperate with the Transfer Agent, Investor and its brokers to facilitate the timely clearing and delivery of Shares
to be sold pursuant to the Registration Statement free of any restrictive legends and in such denominations and registered in
such names as Investor may reasonably request, including timely completion and delivery of all forms, documents and instruments
requested by the Transfer Agent or any broker.

 

VI.
General Provisions.

 

A.
Notice. Unless a different time of day or method of delivery is specifically provided
in the Transaction Documents, any and all notices or other communications or deliveries required or permitted to be provided hereunder
will be in writing and will be deemed given and effective on the earliest of: (a) the date of transmission, if such notice or
communication is delivered via facsimile or electronic mail prior to 5:00 p.m. New York time on a Trading Day and an electronic
confirmation of delivery is received by the sender, (b) the next Trading Day after the date of transmission, if such notice or
communication is delivered later than 5:00 p.m. New York time or on a day that is not a Trading Day, (c) the next 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 addresses for such notices and communications are such other address
as may be designated in writing, in the same manner, by such Person.

 

B.
Amendments; Waivers. No provision of this Agreement may be waived or amended except in
a written instrument signed, in the case of an amendment, by Company and Investor or, in the case of a waiver, by the party against
whom enforcement of any such waiver is sought. No waiver of any default with respect to any provision, condition or requirement
of this Agreement will 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 will any delay or omission of either party to exercise any right hereunder
in any manner impair the exercise of any such right.

 

C.
No Third-Party Beneficiaries. Except as otherwise set forth in Section IV.G,
this Agreement and the Transaction Documents will inure solely to the benefit of the parties hereto, and is not for the benefit
of, nor may any provision hereof be enforced by, any other Person. Other than the Investor Parties described in Section
IV.G, a Person who is not a party to this Agreement shall not have any rights under the Contracts
(Rights of Third Parties) Law, 2014 of the Cayman Islands to enforce any term of this Agreement or any Transaction Document.

 

    	18

    	 

    

 

D.
Fees and Expenses. Company has paid a flat rate documentation fee of $10,000 to Investor
in connection with drafting this Agreement and the other Transaction Documents. Except as otherwise provided in this Agreement,
each party will pay the fees and expenses of its own 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 the Transaction Documents.
Company acknowledges and agrees that Investor’s counsel solely represents Investor, and does not represent Company or its
interests in connection with the Transaction Documents or the transactions contemplated thereby. Company will pay all stamp and
other taxes and duties, if any, levied in connection with the sale or issuance of the Shares to Investor.

 

E.
Severability. If any provision of this Agreement is held to be invalid or unenforceable
in any respect, the validity and enforceability of the remaining terms and provisions of this Agreement will not in any way be
affected or impaired thereby and the parties will attempt to agree upon a valid and enforceable provision that is a reasonable
substitute therefor, and upon so agreeing, will incorporate such substitute provision in this Agreement.

 

F.
Replacement of Certificates. If any
certificate or instrument evidencing any Shares is mutilated, lost, stolen or destroyed, Company will issue or cause to be issued
in exchange and substitution for and upon cancellation thereof, or in lieu of and substitution therefor, a new certificate or
instrument, but only upon receipt of evidence reasonably satisfactory to Company of such loss, theft or destruction and customary
and reasonable indemnity, if requested. The applicants for a new certificate or instrument under such circumstances will also
pay any reasonable third-party costs associated with the issuance of such replacement certificates.

 

G.
Governing Law. All matters between the parties, including without limitation questions
concerning the construction, validity, enforcement and interpretation of the Transaction Documents will be governed by and construed
and enforced in accordance with the laws of the U.S. Virgin Islands, without regard to the principles of conflicts of law that
would require or permit the application of the laws of any other jurisdiction, except for corporation law matters applicable to
Company which will be governed by the corporate law of its jurisdiction of formation. The parties hereby waive all rights to a
trial by jury. In any action, arbitration or proceeding, including appeal, arising out of or relating to any of the Transaction
Documents or otherwise involving the parties, the prevailing party will be awarded its reasonable attorneys’ fees and other
costs and expenses reasonably incurred in connection with the investigation, preparation,
prosecution or defense of such action or proceeding.

 

H.
Arbitration. Any dispute, controversy, claim or action of any kind arising out of, relating
to, or in connection with this Agreement, or in any way involving Company and Investor or their respective Affiliates, including
any issues of arbitrability, will be resolved solely by final and binding arbitration in English before a retired judge at JAMS,
or its successor, in the Territory of the Virgin Islands, pursuant to the most expedited and Streamlined Arbitration Rules and
Procedures available. Any interim or final award may be entered and enforced by any court of competent jurisdiction. The final
award will include the prevailing party’s reasonable arbitration, expert witness and attorney fees, costs and expenses.
Notwithstanding the foregoing, Investor may in its sole discretion bring an action in aid of arbitration or for temporary, preliminary
or provisional relief pending completion of arbitration.

 

    	19

    	 

    

 

I.
Payment Set Aside. To the extent that Company makes a payment or payments to Investor
pursuant to any Transaction Document or Investor 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 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
will 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.

 

J.
Headings. The titles and headings in
this Agreement and the Transaction Documents are for convenience only, do not constitute a part of this Agreement and will not
be deemed to limit or affect any of the provisions hereof

 

K.
Time of the Essence. Time is of the essence with respect to all provisions of this Agreement,
the Note, and all Transaction Documents.

 

L.
Survival. The representations and warranties contained herein will survive the Closing
and the delivery of the Note and Shares until the entire Note issued to Investor has been converted or redeemed. Neither party
will be under any obligation to update or supplement any of its representations or warranties following the Closing due to a change
that occurred after the Closing.

 

M.
Construction. The parties agree that each
of them and/or their respective counsel has 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 will not be employed
in the interpretation of the Transaction Documents or any amendments hereto. The
language used in this Agreement will be deemed to be the language chosen by the parties to express their mutual intent, and no
rules of strict construction will be applied against any party. All currency references in any Transaction Document are to U.S.
dollars.

 

N.
Further Assurances. Each party will take all further actions and execute all further
documents as may be reasonably necessary to implement the provisions and carry out the intent of this Agreement fully and effectively.

 

O.
Execution. This Agreement may be executed in two or more counterparts, all of which when
taken together will be considered one and the same agreement and will become effective when counterparts have been signed by each
party and delivered to the other party, it being understood that both parties need not sign the same counterpart. In the event
that any signature is delivered by portable document format, facsimile or electronic transmission, such signature will 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 signature page were an original thereof.

 

P.
Entire Agreement. This Agreement, including the Exhibits hereto,
which are hereby incorporated herein by reference, contains the entire agreement and understanding of the parties,
and supersedes all prior and contemporaneous agreements, term sheets, letters,
discussions, communications and understandings, both oral and written, which
the parties acknowledge have been merged into this Agreement. No party, representative, advisor, attorney or agent has
relied upon any collateral contract, agreement, assurance, promise, understanding, statement or representation not expressly set
forth herein. The parties hereby absolutely, unconditionally and irrevocably waive all rights and remedies, at law and in equity,
directly or indirectly arising out of or relating to, or which may arise as a result of, any Person’s reliance on any such
statement or assurance.

 

    	20

    	 

    

 

IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by their respective authorized signatories
on the Effective Date.

 

Company:

 

	INCEPTION
    MINING, INC.	 
	 	 
	By:	/s/
    Trent D’Ambrosio	 
	Name:
    	Trent
    D’Ambrosio	 
	Title:
    	Chief
    Executive Officer	 

 

Investor:

 

	Discover
    Growth Fund, LLC	 
	Investor
    Name	 
	 	 
	By:	/s/
    John Kirkland	 
	Name:
    	John
    Kirkland	 
	Title:
    	President
    of G.P. of Member	 

 

    	21

    	 

    

 

Exhibit
1

 

Glossary
of Defined Terms

 

“$”
means the currency of the United States of America, in which all dollar amounts in the Transaction Documents will be expressed.

 

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

 

“Action”
has the meaning set forth in Section III.A.4.

 

“Affiliate”
means any Person that, directly or indirectly through one or more intermediaries, controls, is controlled by, or is under common
control with a Person, as such terms are used in and construed under Rule 144 under the Act.

 

“Agreement”
means this Note Purchase Agreement.

 

“Closing”
has the meaning set forth in Section II.D.

 

“Commission”
means the U.S. Securities and Exchange Commission.

 

“Common
Stock” means the Common Stock of Company and any replacement or substitute thereof, or any share capital into which
such Common Stock will have been changed or any share capital resulting from a reclassification of such Common Stock.

 

“Company”
has the meaning set forth in the first paragraph of the Agreement.

 

“Conversion
Shares” includes all shares of Common Stock potentially issuable in relation to the Note, including Common Stock that
must be issued upon conversion of the Note, and Common Stock that must or may be issued in payment of any Interest or Conversion
Premium.

 

“Disclosure
Schedules” means the disclosure schedules of Company attached hereto as Exhibit 9. The Disclosure Schedules contain
no material non-public information.

 

“DTC”
means The Depository Trust Company, or any successor performing substantially the same function for Company.

 

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

 

“Effective
Date” has the meaning set forth in the first paragraph of the Agreement.

 

“Equity
Conditions” has the meaning set forth in the Note.

 

    	1

    	 

    

 

“GAAP”
means U.S. generally accepted accounting principles applied on a consistent basis during the periods involved.

 

“Indebtedness”
means (a) any liabilities for borrowed money or amounts owed in excess of $250,000, other than trade accounts payable incurred
in the ordinary course of business, (b) all guaranties, endorsements and other contingent obligations in respect of Indebtedness
of others, whether or not the same are or should be reflected in Company’s
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 (c) the present value of any lease payments in excess of $250,000 due under
leases required to be capitalized in accordance with GAAP.

 

“Intellectual
Property Rights” has the meaning set forth in Section III.B.11.

 

“Investor”
has the meaning set forth in the first paragraph
of the Agreement.

 

“Legal
Opinion” means an opinion from Company’s legal counsel, in the form attached as Exhibit 4.

 

“Liens”
means a lien, charge, security interest or encumbrance in excess of $250,000, or a right of first refusal, preemptive right
or other restriction.

 

“Material
Adverse Effect” includes any material adverse effect on (a) the legality, validity or enforceability of any Transaction
Document, (b) the results of operations, assets, business, or financial condition of Company and the Subsidiaries, taken as a
whole, which is not disclosed in the Public Reports prior to the Effective Date, (c) Company’s ability to perform in any
material respect on a timely basis its obligations under any Transaction Document, or (d) the sale, issuance, registration, listing,
resale and trading on the Trading Market of the Conversion Shares.

 

“Material
Permits” has the meaning set forth in Section III.B.9.

 

“Note”
means the Senior Secured Subordinated Note issued by Company, in the form attached as Exhibit 2.

 

“Officer’s
Certificate” means a certificate executed by an authorized officer of Company, in the form attached as Exhibit 5.

 

“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.

 

“Prospectus”
means the final prospectus filed for the Registration Statement.

 

“Prospectus
Supplement” means the supplement to the Prospectus complying with Rule 424(b) of the Securities Act that is timely filed
with the Commission and delivered by the Company to Investor.

 

    	2

    	 

    

 

“Public
Deed” means a Public Deed securing full and timely performance of all obligations under the Transaction Documents, as
registered in the applicable registries in Honduras, in the form attached hereto as Exhibit 8.

 

“Public
Reports” means the reports filed with the Commission by the Company pursuant to the Exchange Act (see Exhibit 9).

 

“Purchase
Amount” has the meaning set forth in
Section II.A.1.

 

“Receivables”
include all accounts receivable and all rights to the payment of a monetary obligation, whether or not earned by performance,
and whether evidenced by an account, chattel paper, instrument, general intangible, or otherwise.

 

“Registration
Statement” means a valid, current and effective Registration Statement registering all Shares for sale, including the
prospectus therein, amendments and supplements to such Registration Statement or prospectus, including pre- and post-effective
amendments, all exhibits thereto, and all material incorporated by reference or deemed to be incorporated by reference in such
registration statement, and any information contained or incorporated by reference in a prospectus filed with the Commission in
connection with the Registration Statement, to the extent such information is deemed under the Act to be part of any registration
statement.

 

“Secretary’s
Certificate” means a certificate, in the form attached as Exhibit 6, signed by the secretary of Company.

 

“Shares”
include the Conversion Shares and the Warrant Shares.

 

“Short
Sale” means a “short sale” as defined in Rule 200 of Regulation SHO of the Exchange Act.

 

“Subsidiary”
means any Person owned or controlled by the Company, or in which Company, directly or indirectly, owns a majority of the capital
stock or similar interest that would be disclosable pursuant to Regulation S-K, Item 601(b) (21).

 

“Trading
Day” means any day on which the Common Stock is traded on the Trading Market; provided
that it will not include any day on which the Common Stock is (a) scheduled to trade for less than 5 hours, or (b) suspended from
trading.

 

“Trading
Market” has the meaning set forth in the Note.

 

“Transaction
Documents” means this Agreement, the Note, the Warraant, the other agreements, certificates and documents referenced
herein or the form of which is attached hereto, and the exhibits, schedules and appendices hereto and thereto.

 

“Transfer
Agent” means the current and any future transfer agent for Company.

 

“Transfer
Agent Instructions” means a letter agreement executed by Company, its current transfer agent, and any successor transfer
agent for the Common Stock, in the form attached as Exhibit 3.

 

“Warrant”
means the Warrant to Purchase Common Stock in the form attached hereto as Exhibit 7.

 

“Warrant
Shares” includes all shares of Common Stock potentially issuable in relation to the Warrant.

 

    	3

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