Document:

Exhibit
10.01

 

EQUITY
FINANCING AGREEMENT

 

This
EQUITY FINANCING AGREEMENT (the “Agreement”), dated as of July 9, 2019 (the “Execution Date”),
is entered into by and between H/Cell Energy Corporation, a Nevada corporation with its principal executive office at 3010 LBJ
Freeway, Suite 1200, Dallas, TX 75234 (the “Company”), and GHS Investments LLC, a Nevada limited liability
company, with offices at 420 Jericho Turnpike, Suite 102, Jericho, NY 11753. (the “Investor”).

 

RECITALS:

 

WHEREAS,
the parties desire that, upon the terms and subject to the conditions contained herein, the Investor shall invest up to three
million dollars ($3,000,000) (the “Commitment Amount”), from time to time over the course of twenty-four (24)
months after an effective registration of the underlying shares (the “Contract Period”) to purchase the Company’s
common stock par value $0.0001 per share (the “Common Stock”);

 

WHEREAS,
such investments will be made in reliance upon the exemption from securities registration afforded by Section 4(a)(2) of the Securities
Act of 1933, as amended (the “1933 Act”), Rule 506 of Regulation D promulgated by the SEC under the 1933 Act,
and/or upon such other exemption from the registration requirements of the 1933 Act as may be available with respect to any or
all of the investments in Common Stock to be made hereunder; and

 

WHEREAS,
contemporaneously with the execution and delivery of this Agreement, the parties hereto are executing and delivering a Registration
Rights Agreement substantially in the form attached hereto as Exhibit A (the “Registration Rights Agreement”)
pursuant to which the Company has agreed to provide certain registration rights under the 1933 Act, and the rules and regulations
promulgated thereunder, and applicable state securities laws.

 

NOW
THEREFORE, in consideration of the foregoing recitals, which shall be considered an integral part of this Agreement, the covenants
and agreements set forth hereafter, and other good and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the Company and the Investor hereby agree as follows:

 

SECTION
I.

DEFINITIONS

 

For
all purposes of and under this Agreement, the following terms shall have the respective meanings below, and such meanings shall
be equally applicable to the singular and plural forms of such defined terms.

 

“1933
Act” shall have the meaning set forth in the recitals.

 

“1934
Act” shall mean the Securities Exchange Act of 1934, as amended, or any similar federal statute, and the rules and regulations
of the SEC thereunder, all as the same will then be in effect.

 

“Affiliate”
shall have the meaning set forth in Section 5.7.

 

“Agreement”
shall have the meaning set forth in the preamble.

 

“Articles
of Incorporation” shall have the meaning set forth in Section 4.3.

 

    	 	 	 

    	 

    

 

“By-laws”
shall have the meaning set forth in Section 4.3.

 

“Closing”
shall have the meaning set forth in Section 2.4.

 

“Closing
Date” shall have the meaning set forth in Section 2.4.

 

“Commitment
Shares” shall have the meaning set forth in Section 2.7

 

“Common
Stock” shall have the meaning set forth in the recitals.

 

“Control”
or “Controls” shall have the meaning set forth in Section 5.7.

 

“Effective
Date” shall mean the date the SEC declares effective under the 1933 Act the Registration Statement covering the Securities.

 

“Environmental
Laws” shall have the meaning set forth in Section 4.13.

 

“Execution
Date” shall have the meaning set forth in the preamble.

 

“Indemnified
Liabilities” shall have the meaning set forth in Section 10.

 

“Indemnitees”
shall have the meaning set forth in Section 10.

 

“Indemnitor”
shall have the meaning set forth in Section 10.

 

“Ineffective
Period” shall mean any period of time that the Registration Statement or any supplemental registration statement becomes
ineffective or unavailable for use for the sale or resale, as applicable, of any or all of the Registrable Securities (as defined
in the Registration Rights Agreement) for any reason (or in the event the prospectus under either of the above is not current
and deliverable) during any time period required under the Registration Rights Agreement.

 

“Investor”
shall have the meaning set forth in the preamble.

 

“Market
Price” shall mean the lowest traded price of the Company’s Common Stock during the Pricing Period.

 

“Material
Adverse Effect” shall have the meaning set forth in Section 4.1.

 

“Maximum
Common Stock Issuance” shall have the meaning set forth in Section 2.5.

 

“Open
Period” shall mean the period beginning on and including the Trading Day immediately following the Effective Date and
ending on the earlier of (a) twenty-four months from the execution of definitive agreements or (b) the termination of the Agreement
in accordance with Section 8.

 

“Pricing
Period” shall mean ten (10) consecutive trading days preceding the receipt of the applicable Put Notice.

 

    	 	 	2

    	 

    

 

“Principal
Market” shall mean the New York Stock Exchange, the NYSE American, the Nasdaq Capital Market, the Nasdaq Global Market,
the Nasdaq Global Select Market or the OTC Markets (OTCQX, OTCQB, OTC Pink, the OTC Bulletin Board), whichever is the principal
market on which the Common Stock is listed.

 

“Prospectus”
shall mean the prospectus, preliminary prospectus and supplemental prospectus used in connection with the Registration Statement.

 

“Purchase
Amount” shall mean the total amount being paid by the Investor on a particular Closing Date to purchase the Securities.

 

“Purchase
Price” shall mean eighty percent (80%) of the Market Price.

 

“Put”
shall mean the Company is entitled to request equity investments (the “Put” or “Puts”) by the Investor,
pursuant to which the Company will issue Common Stock to the Investor with an aggregate Purchase Price equal to the value of the
Put, subject to a price per share calculation based on the Market Price.

 

“Put
Amount” shall mean the total dollar amount requested by the Company pursuant to an applicable Put. The timing and amounts
of each Put shall be at the discretion of the Company. No Put will be made in an amount greater than four hundred thousand dollars
($400,000). Puts are further limited to the Investor owning no more than 4.99% of the outstanding stock of the Company at any
given time.

 

“Put
Notice” shall mean a written notice sent to the Investor by the Company stating the Put Amount in U.S. dollars that
the Company intends to sell to the Investor pursuant to the terms of the Agreement and stating the current number of Shares issued
and outstanding on such date.

 

“Put
Notice Date” shall mean the Trading Day, as set forth below, on which the Investor receives a Put Notice.

 

“Put
Restriction” shall mean a minimum of ten (10) Trading Days following a Put Notice Date. During this time, the Company
shall not be entitled to deliver another Put Notice.

 

“Put
Shares Due” shall have the meaning set forth in Section 2.4.

 

“Registered
Offering Transaction Documents” shall mean this Agreement and the Registration Rights Agreement between the Company
and the Investor as of the date herewith.

 

“Registration
Rights Agreement” shall have the meaning set forth in the recitals.

 

“Registration
Statement” means the registration statement of the Company filed under the 1933 Act covering the Securities issuable
hereunder.

 

“Related
Party” shall have the meaning set forth in Section 5.7.

 

“Resolution”
shall have the meaning set forth in Section 7.5.

 

“SEC”
shall mean the U.S. Securities and Exchange Commission.

 

“SEC
Documents” shall have the meaning set forth in Section 4.6.

 

    	 	 	3

    	 

    

 

“Securities”
shall mean the shares of Common Stock issued pursuant to the terms of this Agreement.

 

“Settlement
Date” shall have the meaning set forth in Section 6.2.

 

“Shares”
shall mean the shares of the Company’s Common Stock.

 

“Subsidiaries”
shall have the meaning set forth in Section 4.1.

 

“Trading
Day” shall mean any day on which the Principal Market for the Common Stock is open for trading, from the hours of 9:30
am until 4:00 pm.

 

“Transaction
Cost Shares” shall mean such number of Shares equal to the Transaction Costs of such relevant Put divided by the Purchase
Price for such relevant Put, rounded to the nearest whole share.

 

“Transaction
Costs” the Company shall bear the costs of the Registration Statement. An amount equaling five percent (5%) of the relevant
Put shall be issued to the Investor on each Settlement Date to offset transaction costs, which may be paid, in the Company’s
sole discretion, in Transaction Cost Shares or cash.

 

“Transfer
Agent” shall mean the Company’s transfer agent, which is initially VStock Transfer, LLC.

 

SECTION
II

PURCHASE
AND SALE OF COMMON STOCK

 

2.1
PURCHASE AND SALE OF COMMON STOCK. Subject to the terms and conditions set forth herein, the Company shall have the right
to issue and sell to the Investor, and the Investor shall purchase from the Company, up to that number of Shares having an aggregate
Purchase Price of three million dollars ($3,000,000). No Put will be made in an amount greater than four hundred thousand dollars
($400,000).

 

The
maximum amount of each Put, shall be subject to the following parameters, calculated off the average daily trading volume for
the Common Stock for the applicable Pricing Period:

 

	 	i.	If
    between zero (0) to fifteen thousand (15,000) Shares are traded on average per day during the Pricing Period, the relevant
    Put shall be capped to fifteen thousand (15,000) Shares;
	 	 	 
	 	ii.	If
    between fifteen thousand and one (15,001) Shares to thirty thousand (30,000) Shares are traded on average per day, the relevant
    Put shall be capped to thirty thousand (30,000) Shares;
	 	 	 
	 	iii.	If
    between thirty thousand and one (30,001) Shares to sixty thousand (60,000) Shares are traded on average per day, the relevant
    Put shall be capped to sixty thousand (60,000) Shares;
	 	 	 
	 	iv.	If
    between sixty thousand and one (60,001) Shares to one hundred and fifty thousand (150,000) Shares are traded on average per
    day, the relevant Put shall be capped to one hundred and fifty thousand (150,000) Shares; and
	 	 	 
	 	v.	If
    the average daily traded volume for the Pricing Period is equal to or greater than one hundred fifty thousand and one (150,001)
    Shares, then the relevant Put shall be limited to an amount which equals two times (2x) the average daily volume for the Shares
    during the Pricing Period.

 

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2.2
DELIVERY OF PUT NOTICES. Subject to the terms and conditions herein, and from time to time during the Open Period, the
Company may, in its sole discretion, deliver a Put Notice to the Investor which states the dollar amount (designated in U.S. Dollars),
which the Company intends to sell to the Investor on a Closing Date (the “Put”). The Put Notice shall be in
the form attached hereto as Exhibit C and incorporated herein by reference. The Purchase Price of the Put shall be eighty
percent (80%) percent of the Market Price. During the Open Period, the Company shall not be entitled to submit a Put Notice until
after the previous Closing has been completed. There will be a minimum of ten (10) Trading Days between Put Notices.

 

2.3
CONDITIONS TO INVESTOR’S OBLIGATION TO PURCHASE SHARES. Notwithstanding anything to the contrary in this Agreement,
the Company shall not be entitled to deliver a Put Notice and the Investor shall not be obligated to purchase any Shares at a
Closing unless each of the following conditions are satisfied:

 

	 	i. 	a
    Registration Statement shall have been declared effective and shall remain effective and available for the resale of all the
    Registrable Securities (as defined in the Registration Rights Agreement) at all times until the Closing with respect to the
    subject Put Notice;
	 	 	 
	 	ii. 	at
    all times during the period beginning on the related Put Notice Date and ending on and including the related Closing Date,
    the Common Stock shall have been listed or quoted for trading on the Principal Market and shall not have been suspended from
    trading thereon for a period of two (2) consecutive Trading Days during the Open Period and the Company shall not have been
    notified in writing of any pending or threatened proceeding or other action to suspend the trading of the Common Stock;
	 	 	 
	 	iii. 	the
    Company has materially complied with its obligations and is otherwise not in material breach of or in default under, this
    Agreement, the Registration Rights Agreement or any other agreement executed between the parties, which has not been cured
    prior to delivery of the Put Notice to the Investor;
	 	 	 
	 	iv. 	no
    injunction shall have been issued and remain in force, or action commenced by a governmental authority which has not been
    stayed or abandoned, prohibiting the purchase or the issuance of the Securities; and
	 	 	 
	 	v. 	the
    issuance of the Securities will not violate any requirements of the Principal Market.

 

If
any of the events described in clauses (i) through (v) above occurs during a Pricing Period, then the Investor shall have no obligation
to purchase the Put Amount of Common Stock set forth in the applicable Put Notice.

 

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2.4
MECHANICS OF PURCHASE OF SHARES BY INVESTOR. The Closing of a Put shall occur upon the first Trading Day following the
receipt and approval for trading by Investor’s broker of the Put Shares. The Closing of a Put shall occur upon the first
Trading Day following (i) the receipt of the Put Shares and Transaction Cost Shares, if applicable, whereby the Company shall
have caused the Transfer Agent to electronically transmit, prior to the applicable Closing Date, the applicable Put Shares and
Transaction Cost Shares, if applicable, by crediting the account of the Investor’s broker with DTC through its Deposit Withdrawal
Agent Commission (“DWAC”) system, and (ii) approval for trading by Investor’s broker of the Put Shares
and Transaction Cost Shares, if applicable (the “Broker Approval”), provided, however, that (x) the Investor
will utilize its best efforts to cause the Broker Approval, (y) prior to the Broker Approval, the Investor shall not sell such
Put Shares or Transaction Cost Shares, if applicable and (z) in the event that Broker Approval is not obtained within two Trading
Days following delivery of the Put Shares and Transaction Cost Shares, if applicable, then the Company has the right at any time
thereafter, but prior to receipt of the Purchase Amount, to rescind the Put Notice by providing written notice to the Investor,
and the Investor shall return the Put Shares and Transaction Cost Shares, if applicable, to the Transfer Agent within one Trading
Day after receipt of the rescission of the Put Notice. The Investor shall deliver the Purchase Amount specified in the Put Notice
(less Transaction Costs if no Transaction Cost Shares have been delivered, deposit and clearing fees) by wire transfer of immediately
available funds to an account designated by the Company if the aforementioned receipt and approval are confirmed before 9:30 AM
EST or on the following Trading day if receipt and approval by the Investor’s Broker is made after 9:30 AM EST (“Closing
Date” or “Closing”). In addition, on or prior to such Closing Date, each of the Company and Investor
shall deliver to each other all documents, instruments and writings required to be delivered or reasonably requested by either
of them pursuant to this Agreement in order to implement and effect the transactions contemplated herein.

 

2.5
OVERALL LIMIT ON COMMON STOCK ISSUABLE. Notwithstanding anything contained herein to the contrary, if during the Open Period
the Company becomes listed on an exchange which limits the number of shares of Common Stock that may be issued without shareholder
approval, then the number of Shares issuable by the Company and purchasable by the Investor, shall not exceed that number of the
shares of Common Stock that may be issuable without shareholder approval (the “Maximum Common Stock Issuance”).
If such issuance of shares of Common Stock could cause a delisting on the Principal Market, then the Maximum Common Stock Issuance
shall first be approved by the Company’s shareholders in accordance with applicable law and the By-laws and the Articles
of Incorporation of the Company. The parties understand and agree that the Company’s failure to seek or obtain such shareholder
approval shall in no way adversely affect the validity and due authorization of the issuance and sale of Securities or the Investor’s
obligation in accordance with the terms and conditions hereof to purchase a number of Shares in the aggregate up to the Maximum
Common Stock Issuance, and that such approval pertains only to the applicability of the Maximum Common Stock Issuance limitation
provided in this Section 2.5.

 

2.6
LIMITATION ON AMOUNT OF OWNERSHIP. Notwithstanding anything to the contrary in this Agreement, in no event shall the Investor
be entitled to purchase that number of Shares, which when added to the sum of the number of shares of Common Stock beneficially
owned (as such term is defined under Section 13(d) and Rule 13d-3 of the 1934 Act), by the Investor, would exceed 4.99% of the
number of shares of Common Stock outstanding on the Closing Date, as determined in accordance with Rule 13d-1(j) of the 1934 Act.

 

2.7
COMMITMENT SHARES. The Company shall issue thirty thousand (30,000) shares of its common stock to the Investor to offset
transaction costs (“Commitment Shares”). The Commitment Shares shall be deemed earned upon the execution of
this Agreement. Notwithstanding anything else to the foregoing in the Registered Offering Transaction Documents, the Commitment
Shares shall not be deemed Registrable Securities.

 

    	 	 	6

    	 

    

 

SECTION
III

INVESTOR’S
REPRESENTATIONS, WARRANTIES AND COVENANTS

 

The
Investor represents and warrants to the Company, and covenants, that:

 

3.1
SOPHISTICATED INVESTOR. The Investor has, by reason of its business and financial experience, such knowledge, sophistication
and experience in financial and business matters and in making investment decisions of this type that it is capable of (I) evaluating
the merits and risks of an investment in the Securities and making an informed investment decision; (II) protecting its own interest;
and (III) bearing the economic risk of such investment for an indefinite period of time. The Investor acknowledges that an investment
in the Securities is speculative and involves a high degree of risk.

 

3.2
AUTHORIZATION; ENFORCEMENT. This Agreement has been duly and validly authorized, executed and delivered on behalf of the
Investor and is a valid and binding agreement of the Investor enforceable against the Investor in accordance with its terms, subject
as to enforceability to general principles of equity and to applicable bankruptcy, insolvency, reorganization, moratorium, liquidation
and other similar laws relating to, or affecting generally, the enforcement of applicable creditors’ rights and remedies.

 

3.3
SECTION 9 OF THE 1934 ACT. During the term of this Agreement, the Investor will comply with the provisions of Section 9
of the 1934 Act, and the rules promulgated thereunder, with respect to transactions involving the Common Stock.

 

3.4
ACCREDITED INVESTOR. Investor is an “Accredited Investor” as that term is defined in Rule 501(a)(3) of Regulation
D of the 1933 Act.

 

3.5
NO CONFLICTS. The execution, delivery and performance of the Documents by the Investor and the consummation by the Investor
of the transactions contemplated hereby and thereby will not (i) result in a violation of the LLC operating agreement or other
organizational documents of the Investor, or (ii) violate any law, rule, regulation, order, writ, judgment, injunction, decree
or award binding on the Investor.

 

3.6
OPPORTUNITY TO DISCUSS. The Investor has received all materials relating to the Company’s business, finance and operations
which it has requested. The Investor has had an opportunity to discuss with its own legal counsel and investment and tax advisors
the business, management and financial affairs of the Company with the Company’s management. The Investor is relying solely
on such counsel and advisors and not on any statements or representations of the Company or any of its representatives or agents
for legal, tax or investment advice with respect to this investment, the transactions contemplated by the Registered Offering
Transaction Documents or the securities laws of any jurisdiction.

 

3.7
INVESTMENT PURPOSES. The Investor is entering into this Agreement for its own account and not with a view towards, or for
resale in connection with, the public sale or distribution thereof in violation of applicable securities laws, except pursuant
to sales registered or exempted under the 1933 Act; provided, however, that the Investor reserves the right to dispose
of the Securities at any time in accordance with federal and state securities laws applicable to such disposition. The Investor
Buyer is acquiring the Securities hereunder in the ordinary course of its business. The Investor does not presently have any agreement
or understanding, directly or indirectly, with any Person to distribute any of the Securities in violation of applicable securities
laws.

 

3.8
NO REGISTRATION AS A DEALER. The Investor is not required to be registered as a “dealer” under the 1934 Act,
either as a result of its execution and performance of its obligations under this Agreement or otherwise.

 

3.9
GOOD STANDING. The Investor is a limited liability company, duly organized, validly existing and in good standing in the
State of Nevada.

 

3.10
TAX LIABILITIES. The Investor understands that it is liable for its own tax liabilities.

 

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3.11
REGULATION M. The Investor will comply with Regulation M under the 1934 Act, if applicable.

 

3.12
No Short Sales.
The Investor has not directly or indirectly, nor has any Person acting on behalf of or pursuant to any understanding with the
Investor, engaged in any transactions in the securities of the Company (including, without limitation, any Short Sales (as defined
in Rule 200 of Regulation SHO under the 1934 Act) involving the Company’s securities) during the period commencing as of
the time that the Investor first contacted the Company regarding the specific investment contemplated by this Agreement and ending
immediately prior to the execution of this Agreement. No short sales shall be permitted by the Investor or its affiliates during
the period commencing on the Execution Date and continuing through the termination of this Agreement.

 

3.13
MANNER OF SALE. At no time was the Investor presented with or solicited by or through any leaflet, public promotional meeting,
television advertisement or any other form of general solicitation or advertising.

 

3.14
RELIANCE ON EXEMPTIONS. The Investor understands that the Securities are being offered and sold to it in reliance on specific
exemptions from the registration requirements of United States federal and state securities laws and that the Company is relying
in part upon the truth and accuracy of, and the Investor’s compliance with, the representations, warranties, agreements,
acknowledgments and understandings of the Investor set forth herein in order to determine the availability of such exemptions
and the eligibility of the Investor to acquire the Securities.

 

3.15
NO GOVERNMENTAL REVIEW. The Investor understands that no United States federal or state agency or any other government
or governmental agency has passed on or made any recommendation or endorsement of the Securities or the fairness or suitability
of the investment in the Securities nor have such authorities passed upon or endorsed the merits of the offering of the Securities.

 

SECTION
IV

REPRESENTATIONS
AND WARRANTIES OF THE COMPANY

 

Except
as set forth in the Schedules attached hereto, or as disclosed in the Company’s SEC Documents, the Company represents and
warrants to the Investor that:

 

4.1
ORGANIZATION AND QUALIFICATION. The Company is a corporation duly organized and validly existing in good standing under
the laws of the State of Nevada, and has the requisite corporate power and authorization to own its properties and to carry on
its business as now being conducted. Both the Company and the companies it owns or controls (“Subsidiaries”)
are duly qualified to do business and are in good standing in every jurisdiction in which its ownership of property or the nature
of the business conducted by it makes such qualification necessary, except to the extent that the failure to be so qualified or
be in good standing would not have a Material Adverse Effect. As used in this Agreement, “Material Adverse Effect”
means a change, event, circumstance, effect or state of facts that has had or is reasonably likely to have, a material adverse
effect on the business, properties, assets, operations, results of operations, financial condition or prospects of the Company
and its Subsidiaries, if any, taken as a whole, or on the transactions contemplated hereby or by the agreements and instruments
to be entered into in connection herewith, or on the authority or ability of the Company to perform its obligations under the
Registered Offering Transaction Documents.

 

    	 	 	8

    	 

    

 

4.2
AUTHORIZATION; ENFORCEMENT; COMPLIANCE WITH OTHER INSTRUMENTS.

 

	 	i.	The
    Company has the requisite corporate power and authority to enter into and perform this Registered Offering Transaction Documents,
    and to issue the Securities in accordance with the terms hereof and thereof.
	 	 	 
	 	ii.	The
    execution and delivery of the Registered Offering Transaction Documents by the Company and the consummation by it of the transactions
    contemplated hereby and thereby, including without limitation the issuance of the Securities pursuant to this Agreement, have
    been duly and validly authorized by the Company’s Board of Directors and no further consent or authorization is required
    by the Company, its Board of Directors, or its shareholders.
	 	 	 
	 	iii.	The
    Registered Offering Transaction Documents have been duly and validly executed and delivered by the Company.
	 	 	 
	 	iv.	The
    Registered Offering Transaction Documents constitute the valid and binding obligations of the Company enforceable against
    the Company in accordance with their terms, except as such enforceability may be limited by general principles of equity or
    applicable bankruptcy, insolvency, reorganization, moratorium, liquidation or similar laws relating to, or affecting generally,
    the enforcement of creditors’ rights and remedies and except as rights to indemnification and to contribution may be
    limited by federal or state securities law and public policy, and the remedy of specific performance and injunctive and other
    forms of equitable relief may be subject to equitable defenses and to the discretion of the court before which any proceeding
    therefor may be brought.

 

4.3
CAPITALIZATION. As of the date hereof, the authorized capital stock of the Company consists of 25,000,000 shares of Common
Stock, par value $0.0001 per share, of which as of the date hereof 7,621,024 shares are issued and outstanding. All of such outstanding
shares have been, or upon issuance will be, validly issued and are fully paid and nonassessable.

 

Except
as disclosed in the Company’s SEC Documents or as otherwise set forth on Schedule 4.3:

 

	 	i.	no
    shares of the Company’s capital stock are subject to preemptive rights or any other similar rights or any liens or encumbrances
    suffered or permitted by the Company;
	 	 	 
	 	ii.	there
    are no outstanding debt securities;
	 	 	 
	 	iii.	There
    are no outstanding shares of capital stock, options, warrants, scrip, rights to subscribe to, calls or commitments of any
    character whatsoever relating to, or securities or rights convertible into, any shares of capital stock of the Company or
    any of its Subsidiaries, or contracts, commitments, understandings or arrangements by which the Company or any of its Subsidiaries
    is or may become bound to issue additional shares of capital stock of the Company or any of its Subsidiaries or options, warrants,
    scrip, rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities or rights convertible
    into, any shares of capital stock of the Company or any of its Subsidiaries;

 

    	 	 	9

    	 

    

 

	 	iv.	there
    are no agreements or arrangements under which the Company or any of its Subsidiaries is obligated to register the sale of
    any of their securities under the 1933 Act (except the Registration Rights Agreement);
	 	 	 
	 	v.	there
    are no outstanding securities of the Company or any of its Subsidiaries which contain any redemption or similar provisions,
    and there are no contracts, commitments, understandings or arrangements by which the Company or any of its Subsidiaries is
    or may become bound to redeem a security of the Company or any of its Subsidiaries;
	 	 	 
	 	vi.	there
    are no securities or instruments containing anti-dilution or similar provisions that will be triggered by the issuance of
    the Securities as described in this Agreement;
	 	 	 
	 	vii.	the
    Company does not have any stock appreciation rights or “phantom stock” plans or agreements or any similar plan
    or agreement; and
	 	 	 
	 	viii.	there
    is no dispute as to the classification of any shares of the Company’s capital stock.

 

The
Company has furnished to the Investor, or the Investor has had access through EDGAR to, true and correct copies of the Company’s
Articles of Incorporation, as in effect on the date hereof (the “Articles of Incorporation”), and the Company’s
By-laws, as in effect on the date hereof (the “By-laws”), and the terms of all securities convertible into
or exercisable for Common Stock and the material rights of the holders thereof in respect thereto.

 

4.4
ISSUANCE OF SHARES. The Company has initially reserved 4,000,000 Shares for issuance pursuant to the Registered Offering
Transaction Documents (the “Reserved Amount”), which have been duly authorized and reserved (subject to adjustment
pursuant to the Company’s covenant set forth in Section 5.5 below) pursuant to this Agreement. Upon issuance in accordance
with this Agreement, the Securities will be validly issued, fully paid for and non-assessable and free from all taxes, liens and
charges with respect to the issuance thereof. In the event the Company cannot register a sufficient number of Shares for issuance
pursuant to this Agreement, the Company will use its best efforts to authorize and reserve for issuance the number of Shares required
for the Company to perform its obligations hereunder as soon as reasonably practicable.

 

4.5
NO CONFLICTS. The execution, delivery and performance of the Registered Offering Transaction Documents by the Company and
the consummation by the Company of the transactions contemplated hereby and thereby will not (i) result in a violation of the
Articles of Incorporation, any Certificate of Designations, Preferences and Rights of any outstanding series of preferred stock
of the Company or the By-laws; or (ii) conflict with, or constitute a material default (or an event which with notice or lapse
of time or both would become a material default) under, or give to others any rights of termination, amendment, acceleration or
cancellation of, any material agreement, contract, indenture mortgage, indebtedness or instrument to which the Company or any
of its Subsidiaries is a party, or to the Company’s knowledge result in a violation of any law, rule, regulation, order,
judgment or decree (including United States federal and state securities laws and regulations and the rules and regulations of
the Principal Market or principal securities exchange or trading market on which the Common Stock is traded or listed) applicable
to the Company or any of its Subsidiaries or by which any property or asset of the Company or any of its Subsidiaries is bound
or affected. Neither the Company nor its Subsidiaries is in violation of any term of, or in default under, the Articles of Incorporation,
any Certificate of Designations, Preferences and Rights of any outstanding series of preferred stock of the Company or the By-laws
or their organizational charter or by-laws, respectively, or any contract, agreement, mortgage, indebtedness, indenture, instrument,
judgment, decree or order or any statute, rule or regulation applicable to the Company or its Subsidiaries, except for possible
conflicts, defaults, terminations, amendments, accelerations, cancellations and violations that would not individually or in the
aggregate have or constitute a Material Adverse Effect. The business of the Company and its Subsidiaries is not being conducted,
and shall not be conducted, in violation of any law, statute, ordinance, rule, order or regulation of any governmental authority
or agency, regulatory or self-regulatory agency, or court, except for possible violations the sanctions for which either individually
or in the aggregate would not have a Material Adverse Effect. Except as specifically contemplated by this Agreement and as required
under the 1933 Act or any securities laws of any states, to the Company’s knowledge, the Company is not required to obtain
any consent, authorization, permit or order of, or make any filing or registration (except the filing of a registration statement
as outlined in the Registration Rights Agreement between the parties and the Form 8-K) with, any court, governmental authority
or agency, regulatory or self-regulatory agency or other third party in order for it to execute, deliver or perform any of its
obligations under, or contemplated by, the Registered Offering Transaction Documents in accordance with the terms hereof or thereof.
All consents, authorizations, permits, orders, filings and registrations which the Company is required to obtain pursuant to the
preceding sentence have been obtained or effected on or prior to the date hereof and are in full force and effect as of the date
hereof. The Company and its Subsidiaries are unaware of any facts or circumstances which might give rise to any of the foregoing.
The Company is not, and will not be, in violation of the listing requirements of the Principal Market as in effect on the date
hereof and on each of the Closing Dates and is not aware of any facts which would reasonably lead to delisting of the Common Stock
by the Principal Market in the foreseeable future.

 

    	 	 	10

    	 

    

 

4.6
SEC DOCUMENTS; FINANCIAL STATEMENTS. For the one (1) year preceding the Execution Date, the Company has filed all reports,
schedules, forms, statements and other documents required to be filed by it with the SEC pursuant to the reporting requirements
of the 1934 Act (all of the foregoing filed prior to the date hereof and all exhibits included therein and financial statements
and schedules thereto and documents incorporated by reference therein, and amendments thereto, being hereinafter referred to as
the “SEC Documents”). The Company has delivered to the Investor or its representatives, or they have had access
through EDGAR to, true and complete copies of the SEC Documents. As of their respective filing dates, the SEC Documents complied
in all material respects with the requirements of the 1934 Act and the rules and regulations of the SEC promulgated thereunder
applicable to the SEC Documents, and none of the SEC Documents, at the time they were filed with the SEC or the time they were
amended, if amended, contained any untrue statement of a material fact or omitted 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.
As of their respective dates, the financial statements of the Company included in the SEC Documents complied as to form in all
material respects with applicable accounting requirements and the published rules and regulations of the SEC with respect thereto.
Such financial statements have been prepared in accordance with generally accepted accounting principles, by a firm that is a
member of the Public Companies Accounting Oversight Board (“PCAOB”) consistently applied, during the periods
involved (except (i) as may be otherwise indicated in such financial statements or the notes thereto, or (ii) in the case of unaudited
interim statements, to the extent they may exclude footnotes or may be condensed or summary statements) and fairly present in
all material respects the financial position of the Company as of the dates thereof and the results of its operations and cash
flows for the periods then ended (subject, in the case of unaudited statements, to normal year-end audit adjustments). No other
written information provided by or on behalf of the Company to the Investor which is not included in the SEC Documents, including,
without limitation, information referred to in Section 4.3 of this Agreement, contains any untrue statement of a material
fact or omits to state any material fact necessary to make the statements therein, in the light of the circumstance under which
they are or were made, not misleading. Neither the Company nor any of its Subsidiaries or any of their officers, directors, employees
or agents have provided the Investor with any material, nonpublic information which was not publicly disclosed prior to the date
hereof and any material, nonpublic information provided to the Investor by the Company or its Subsidiaries or any of their officers,
directors, employees or agents prior to any Closing Date shall be publicly disclosed by the Company prior to such Closing Date.

 

    	 	 	11

    	 

    

 

4.7
ABSENCE OF CERTAIN CHANGES. Except as otherwise set forth in the SEC Documents, the Company does not intend to change the
business operations of the Company in any material way. The Company has not taken any steps, and does not currently expect to
take any steps, to seek protection pursuant to any bankruptcy law nor does the Company or its Subsidiaries have any knowledge
or reason to believe that its creditors intend to initiate involuntary bankruptcy proceedings.

 

4.8
ABSENCE OF LITIGATION AND/OR REGULATORY PROCEEDINGS. Except as set forth in the SEC Documents, there is no action, suit,
proceeding, inquiry or investigation before or by any court, public board, government agency, self-regulatory organization or
body pending or, to the knowledge of the executive officers of Company or any of its Subsidiaries, threatened in writing against
or affecting the Company, the Common Stock or any of the Company’s Subsidiaries or, to the Company’s knowledge, any
of the Company’s or the Company’s Subsidiaries’ officers or directors in their capacities as such, in which
an adverse decision could have a Material Adverse Effect.

 

4.9
ACKNOWLEDGMENT REGARDING INVESTOR’S PURCHASE OF SHARES. The Company acknowledges and agrees that the Investor is
acting solely in the capacity of an arm’s length Investor with respect to the Registered Offering Transaction Documents
and the transactions contemplated hereby and thereby. The Company further acknowledges that the Investor is not acting as a financial
advisor or fiduciary of the Company (or in any similar capacity) with respect to the Registered Offering Transaction Documents
and the transactions contemplated hereby and thereby and any advice given by the Investor or any of its respective representatives
or agents in connection with the Registered Offering Transaction Documents and the transactions contemplated hereby and thereby
is merely incidental to the Investor’s purchase of the Securities, and is not being relied on by the Company. The Company
further represents to the Investor that the Company’s decision to enter into the Registered Offering Transaction Documents
has been based solely on the independent evaluation by the Company and its representatives.

 

4.10
NO UNDISCLOSED EVENTS, LIABILITIES, DEVELOPMENTS OR CIRCUMSTANCES. Except as set forth in the SEC Documents, as of the
date hereof, no event, liability, development or circumstance has occurred or exists, or to the Company’s knowledge is contemplated
to occur, with respect to the Company or its Subsidiaries or their respective business, properties, assets, prospects, operations
or financial condition, that would be required to be disclosed by the Company under applicable securities laws on a registration
statement filed with the SEC relating to an issuance and sale by the Company of its Common Stock and which has not been publicly
announced.

 

4.11
EMPLOYEE RELATIONS. Neither the Company nor any of its Subsidiaries is involved in any union labor dispute nor, to the
knowledge of the Company or any of its Subsidiaries, is any such dispute threatened in writing. Neither the Company nor any of
its Subsidiaries is a party to a collective bargaining agreement, and the Company and its Subsidiaries believe that relations
with their employees are good. No executive officer (as defined in Rule 501(f) of the 1933 Act) has notified the Company in writing
that such officer intends to leave the Company’s employ or otherwise terminate such officer’s employment with the
Company.

 

    	 	 	12

    	 

    

 

4.12
INTELLECTUAL PROPERTY RIGHTS. The Company and its Subsidiaries own or possess adequate rights or licenses to use all trademarks,
trade names, service marks, service mark registrations, service names, patents, patent rights, copyrights, inventions, licenses,
approvals, governmental authorizations, trade secrets and rights necessary to conduct their respective businesses as now conducted.
Except as set forth in the SEC Documents, none of the Company’s trademarks, trade names, service marks, service mark registrations,
service names, patents, patent rights, copyrights, inventions, licenses, approvals, government authorizations, trade secrets or
other intellectual property rights necessary to conduct its business as now or as proposed to be conducted have expired or terminated,
or are expected to expire or terminate within two (2) years from the date of this Agreement. The Company and its Subsidiaries
do not have any knowledge of any infringement by the Company or its Subsidiaries of trademark, trade name rights, patents, patent
rights, copyrights, inventions, licenses, service names, service marks, service mark registrations, trade secret or other similar
rights of others, or of any such development of similar or identical trade secrets or technical information by others and, except
as set forth in the SEC Documents, there is no claim, action or proceeding being made or brought against, or to the Company’s
knowledge, being threatened in writing against, the Company or its Subsidiaries regarding trademark, trade name, patents, patent
rights, invention, copyright, license, service names, service marks, service mark registrations, trade secret or other infringement;
and the Company and its Subsidiaries are unaware of any facts or circumstances which might give rise to any of the foregoing.
The Company and its Subsidiaries have taken commercially reasonable security measures to protect the secrecy, confidentiality
and value of all of their intellectual properties.

 

4.13
ENVIRONMENTAL LAWS. The Company and its Subsidiaries (i) are, to the knowledge of the executive officers and directors
of the Company and its Subsidiaries, in compliance with any and all applicable foreign, federal, state and local laws and regulations
relating to the protection of human health and safety, the environment or hazardous or toxic substances or wastes, pollutants
or contaminants (“Environmental Laws”); (ii) have, to the knowledge of the executive officers and directors
of the Company, received all permits, licenses or other approvals required of them under applicable Environmental Laws to conduct
their respective businesses; and (iii) are in compliance, to the knowledge of the executive officers and directors of the Company,
with all terms and conditions of any such permit, license or approval where, in each of the three (3) foregoing cases, the failure
to so comply would have, individually or in the aggregate, a Material Adverse Effect.

 

4.14
TITLE. The Company and its Subsidiaries have good and marketable title to all personal property owned by them which is
material to the business of the Company and its Subsidiaries, in each case free and clear of all liens, encumbrances and defects
except such as are described in the SEC Documents or such as do not materially affect the value of such property and do not interfere
with the use made and proposed to be made of such property by the Company or any of its Subsidiaries. Any real property and facilities
held under lease by the Company or any of its Subsidiaries are held by them under valid, subsisting and enforceable leases with
such exceptions as are not material and do not interfere with the use made and proposed to be made of such property and buildings
by the Company and its Subsidiaries.

 

4.15
INSURANCE. Each of the Company’s Subsidiaries are insured by insurers of recognized financial responsibility against
such losses and risks and in such amounts as management of the Company reasonably believes to be prudent and customary for such
companies having the size of, and in the businesses in which the Company and its Subsidiaries are engaged. Neither the Company
nor any of its Subsidiaries has been refused any insurance coverage sought or applied for and neither the Company nor its Subsidiaries
has any reason to believe that it will not be able to renew its existing insurance coverage as and when such coverage expires
or to obtain similar coverage from similar insurers as may be necessary to continue its business at a cost that would not have
a Material Adverse Effect.

 

    	 	 	13

    	 

    

 

4.16
REGULATORY PERMITS. The Company and its Subsidiaries have in full force and effect all certificates, approvals, authorizations
and permits from the appropriate federal, state, local or foreign regulatory authorities and comparable foreign regulatory agencies,
necessary to own, lease or operate their respective properties and assets and conduct their respective businesses, and neither
the Company nor any such Subsidiary has received any notice of proceedings relating to the revocation or modification of any such
certificate, approval, authorization or permit, except for such certificates, approvals, authorizations or permits which if not
obtained, or such revocations or modifications which, would not have a Material Adverse Effect.

 

4.17
INTERNAL ACCOUNTING CONTROLS. Except as otherwise set forth in the SEC Documents, the Company and each of its Subsidiaries
maintain a system of internal accounting controls sufficient to provide reasonable assurance that (i) transactions are executed
in accordance with management’s general or specific authorizations; (ii) transactions are recorded as necessary to permit
preparation of financial statements in conformity with generally accepted accounting principles by a firm with membership to the
PCAOB and to maintain asset accountability; (iii) access to assets is permitted only in accordance with management’s general
or specific authorization; and (iv) the recorded accountability for assets is compared with the existing assets at reasonable
intervals and appropriate action is taken with respect to any differences. The Company’s management has determined that
the Company’s internal accounting controls were not effective as of the date of this Agreement as further described in the
SEC Documents.

 

4.18
NO MATERIALLY ADVERSE CONTRACTS, ETC. Neither the Company nor any of its Subsidiaries is subject to any charter, corporate
or other legal restriction, or any judgment, decree, order, rule or regulation which in the judgment of the Company’s officers
has or is expected in the future to have a Material Adverse Effect. Neither the Company nor any of its Subsidiaries is a party
to any contract or agreement which in the judgment of the Company’s officers has or is expected to have a Material Adverse
Effect.

 

4.19
TAX STATUS. The Company and each of its Subsidiaries has made or filed all United States federal and state income and all
other tax returns, reports and declarations required by any jurisdiction to which it is subject (unless and only to the extent
that the Company and each of its Subsidiaries has set aside on its books provisions reasonably adequate for the payment of all
unpaid and unreported taxes) and has paid all taxes and other governmental assessments and charges that are material in amount,
shown or determined to be due on such returns, reports and declarations, except those being contested in good faith and has set
aside on its books provision reasonably adequate for the payment of all taxes for periods subsequent to the periods to which such
returns, reports or declarations apply. There are no unpaid taxes in any material amount claimed to be due by the taxing authority
of any jurisdiction, and the officers of the Company know of no basis for any such claim.

 

4.20
CERTAIN TRANSACTIONS. Except as set forth in the SEC Documents and except for arm’s length transactions pursuant
to which the Company makes payments in the ordinary course of business upon terms no less favorable than the Company could obtain
from disinterested third parties, none of the officers, directors, or employees of the Company is presently a party to any transaction
with the Company or any of its Subsidiaries (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 the Company,
any corporation, partnership, trust or other entity in which any officer, director, or any such employee has a substantial interest
or is an officer, director, trustee or partner, such that disclosure would be required in the SEC Documents.

 

    	 	 	14

    	 

    

 

4.21
DILUTIVE EFFECT. The Company understands and acknowledges that the number of shares of Common Stock issuable upon purchases
pursuant to this Agreement will increase in certain circumstances including, but not necessarily limited to, the circumstance
wherein the trading price of the Common Stock declines during the period between the Effective Date and the end of the Open Period.
The Company’s executive officers and directors have studied and fully understand the nature of the transactions contemplated
by this Agreement and recognize that they have a potential dilutive effect on the shareholders of the Company. The Board of Directors
of the Company has concluded, in its good faith business judgment, and with full understanding of the implications, that such
issuance is in the best interests of the Company. The Company specifically acknowledges that, subject to such limitations as are
expressly set forth in the Registered Offering Transaction Documents, its obligation to issue shares of Common Stock upon purchases
pursuant to this Agreement is absolute and unconditional regardless of the dilutive effect that such issuance may have on the
ownership interests of other shareholders of the Company.

 

4.22
NO GENERAL SOLICITATION. Neither the Company, nor any of its affiliates, nor to the knowledge of the Company, any person
acting on its behalf, has engaged in any form of general solicitation or general advertising (within the meaning of Regulation
D) in connection with the offer or sale of the Common Stock to be offered as set forth in this Agreement.

 

4.23
NO BROKERS, FINDERS OR FINANCIAL ADVISORY FEES OR COMMISSIONS. No brokers, finders or financial advisory fees or commissions
will be payable by the Company, its agents or Subsidiaries, with respect to the transactions contemplated by this Agreement.

 

4.24
EXCLUSIVITY. The Company shall not pursue a similar equity financing transaction with any other party unless and until
good faith negotiations have terminated between the Investor and the Company or until such time as the registration statement
has been declared effective by the SEC.

 

SECTION
V

COVENANTS
OF THE COMPANY

 

5.1
BEST EFFORTS. The Company shall use all commercially reasonable efforts to timely satisfy each of the conditions set forth
in Section 7 of this Agreement.

 

5.2
REPORTING STATUS. Until one of the following occurs, the Company shall file all reports required to be filed with the SEC
pursuant to the 1934 Act, and the Company shall not terminate its status, or take an action or fail to take any action, which
would terminate its status as a reporting company under the 1934 Act: (i) this Agreement terminates pursuant to Section 8
and the Investor has the right to sell all of the Securities without restrictions pursuant to Rule 144 promulgated under the 1933
Act, or such other exemption, or (ii) the date on which the Investor has sold all the Securities and this Agreement has been terminated
pursuant to Section 8.

 

5.3
USE OF PROCEEDS. The Company will use the proceeds from the sale of the Shares (excluding amounts paid by the Company for
fees as set forth in the Registered Offering Transaction Documents) for general corporate and working capital purposes and acquisitions
or assets, businesses or operations or for other purposes that the Board of Directors, in good faith deem to be in the best interest
of the Company.

 

5.4
FINANCIAL INFORMATION. During the Open Period, the Company agrees to make available to the Investor via EDGAR or other
electronic means the following documents and information on the forms set forth: (i) within five (5) Trading Days after the filing
thereof with the SEC, a copy of its Annual Reports on Form 10-K, its Quarterly Reports on Form 10-Q, any Current Reports on Form
8-K and any Registration Statements or amendments filed pursuant to the 1933 Act; (ii) copies of any notices and other information
made available or given to the shareholders of the Company generally, contemporaneously with the making available or giving thereof
to the shareholders; and (iii) within two (2) calendar days of filing or delivery thereof, copies of all documents filed with,
and all correspondence sent to, the Principal Market, any securities exchange or market, or the Financial Industry Regulatory
Association, unless such information is material nonpublic information.

 

    	 	 	15

    	 

    

 

5.5
RESERVATION OF SHARES. The Company shall take all action necessary to at all times have authorized, and reserved the Reserved
Amount of Shares. In the event that the Company determines that it does not have a sufficient number of authorized shares of Common
Stock to reserve and keep available for issuance as described in this Section 5.5, the Company shall use all commercially
reasonable efforts to increase the number of authorized shares of Common Stock by seeking shareholder approval for the authorization
of such additional shares.

 

5.6
LISTING. The Company shall promptly secure and maintain the listing of all of the Registrable Securities (as defined in
the Registration Rights Agreement) on the Principal Market and each other national securities exchange and automated quotation
system, if any, upon which shares of Common Stock are then listed (subject to official notice of issuance) and shall maintain,
such listing of all Registrable Securities from time to time issuable under the terms of the Registered Offering Transaction Documents.
Neither the Company nor any of its Subsidiaries shall take any action which would be reasonably expected to result in the delisting
or suspension of the Common Stock on the Principal Market (excluding suspensions of not more than one (1) Trading Day resulting
from business announcements by the Company). The Company shall promptly provide to the Investor copies of any notices it receives
from the Principal Market regarding the continued eligibility of the Common Stock for listing on such automated quotation system
or securities exchange. The Company shall pay all fees and expenses in connection with satisfying its obligations under this Section
5.6.

 

5.7
[Reserved]

 

5.8
FILING OF FORM 8-K. On or before the date which is four (4) Trading Days after the Execution Date, the Company shall file
a Current Report on Form 8-K (the “Form 8-K”) with the SEC describing the terms of the transaction contemplated
by the Registered Offering Transaction Documents in the form required by the 1934 Act, if such filing is required.

 

5.9
CORPORATE EXISTENCE. The Company shall use all commercially reasonable efforts to preserve and continue the corporate existence
of the Company.

 

5.10
NOTICE OF CERTAIN EVENTS AFFECTING REGISTRATION; SUSPENSION OF RIGHT TO MAKE A PUT. The Company shall promptly notify the
Investor upon the occurrence of any of the following events in respect of a Registration Statement or related prospectus in respect
of an offering of the Securities: (i) receipt of any request for additional information by the SEC or any other federal or state
governmental authority during the period of effectiveness of the Registration Statement for amendments or supplements to the Registration
Statement or related prospectus; (ii) the issuance by the SEC or any other federal or state governmental authority of any stop
order suspending the effectiveness of any Registration Statement or the initiation of any proceedings for that purpose; (iii)
receipt of any notification with respect to the suspension of the qualification or exemption from qualification of any of the
Securities for sale in any jurisdiction or the initiation or notice of any proceeding for such purpose; (iv) the happening of
any event that makes any statement made in such Registration Statement or related 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, related prospectus or documents so that, in the case of a Registration Statement, 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
not misleading, and that in the case of the related prospectus, 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 the light of the
circumstances under which they were made, not misleading; and (v) the Company’s reasonable determination that a post-effective
amendment or supplement to the Registration Statement would be appropriate, and the Company shall promptly make available to Investor
any such supplement or amendment to the related prospectus. The Company shall not deliver to Investor any Put Notice during the
continuation of any of the foregoing events in this Section 5.10.

 

    	 	 	16

    	 

    

 

5.11
TRANSFER AGENT. The Company shall deliver instructions to its Transfer Agent to issue Shares to the Investor that are issued
to the Investor pursuant to the transactions contemplated herein.

 

5.12
ACKNOWLEDGEMENT OF TERMS. The Company hereby represents and warrants to the Investor that: (i) it is voluntarily entering
into this Agreement of its own freewill, (ii) it is not entering this Agreement under economic duress, (iii) the terms of this
Agreement are reasonable and fair to the Company, and (iv) the Company has had independent legal counsel of its own choosing review
this Agreement, advise the Company with respect to this Agreement, and represent the Company in connection with this Agreement.

 

SECTION
VI

CONDITIONS
OF THE COMPANY’S OBLIGATION TO SELL

 

The
obligation hereunder of the Company to issue and sell the Securities to the Investor is further subject to the satisfaction, at
or before each Closing Date, of each of the following conditions set forth below. These conditions are for the Company’s
sole benefit and may be waived by the Company at any time in its sole discretion.

 

6.1
The Investor shall have executed the Registered Offering Transaction Documents and delivered the same to the Company.

 

6.2
The Investor shall have delivered to the Company the Purchase Price for the Securities being purchased by the Investor.

 

6.3
The representations and warranties of the Investor shall be true and correct as of the date when made and as of the applicable
Closing Date as though made at that time (except for representations and warranties that speak as of a specific date, which shall
be true and correct as of such specific date) and the Investor shall have performed, satisfied and complied with the covenants,
agreements and conditions required by the Registered Offering Transaction Documents to be performed, satisfied or complied with
by the Investor on or before such Closing Date.

 

6.4
No statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered, promulgated or endorsed
by any court or governmental authority of competent jurisdiction which prohibits the consummation of any of the transactions contemplated
by this Agreement.

 

    	 	 	17

    	 

    

 

SECTION
VII

FURTHER
CONDITIONS OF THE INVESTOR’S OBLIGATION TO PURCHASE

 

The
obligation of the Investor hereunder to purchase Securities is subject to the satisfaction, on or before each Closing Date, of
each of the following conditions set forth below.

 

7.1
The Company shall have executed the Registered Offering Transaction Documents and delivered the same to the Investor.

 

7.2
The representations and warranties of the Company shall be true and correct as of the date when made and as of the applicable
Closing Date as though made at that time (except for representations and warranties that speak as of a specific date, which shall
be true and correct as of such specific date) and the Company shall have performed, satisfied and complied with the covenants,
agreements and conditions required by the Registered Offering Transaction Documents to be performed, satisfied or complied with
by the Company on or before such Closing Date. The Investor may request an update as of such Closing Date regarding the representation
contained in Section 4.3.

 

7.3
The Company shall have executed and delivered to the Investor the certificates representing, or have executed electronic book-entry
transfer of, the Securities (in such denominations as the Investor shall request) being purchased by the Investor at such Closing.

 

7.4
The Board of Directors of the Company shall have adopted resolutions consistent with Section 4.2(ii) (the “Resolutions”)
and such Resolutions shall not have been amended or rescinded prior to such Closing Date.

 

7.5
No statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered, promulgated or endorsed
by any court or governmental authority of competent jurisdiction which prohibits the consummation of any of the transactions contemplated
by this Agreement.

 

7.6
The Registration Statement shall be effective on each Closing Date and no stop order suspending the effectiveness of the Registration
statement shall be in effect or to the Company’s knowledge shall be pending or threatened. Furthermore, on each Closing
Date (I) neither the Company nor the Investor shall have received notice that the SEC has issued or intends to issue a stop order
with respect to such Registration Statement or that the SEC otherwise has suspended or withdrawn the effectiveness of such Registration
Statement, either temporarily or permanently, or intends or has threatened to do so (unless the SEC’s concerns have been
addressed), and (II) no other suspension of the use or withdrawal of the effectiveness of such Registration Statement or related
prospectus shall exist.

 

7.7
At the time of each Closing, the Registration Statement (including information or documents incorporated by reference therein)
and any amendments or supplements thereto shall not contain any untrue statement of a material fact or omit to state any material
fact required to be stated therein or necessary to make the statements therein not misleading or which would require public disclosure
or an update supplement to the prospectus.

 

7.8
If applicable, the shareholders of the Company shall have approved the issuance of any Shares in excess of the Maximum Common
Stock Issuance in accordance with Section 2.5 or the Company shall have obtained appropriate approval pursuant to the requirements
of applicable state and federal laws and the Company’s Articles of Incorporation and By-laws.

 

    	 	 	18

    	 

    

 

7.9
The conditions to such Closing set forth in Section 2.3 shall have been satisfied on or before such Closing Date.

 

7.10
The Company shall have certified to the Investor the number of Shares of Common Stock outstanding when a Put Notice is given to
the Investor. The Company’s delivery of a Put Notice to the Investor constitutes the Company’s certification of the
existence of the necessary number of shares of Common Stock reserved for issuance.

 

SECTION
VIII

TERMINATION

 

This
Agreement shall terminate upon any of the following events:

 

8.1
when the Investor has purchased an aggregate of Three Million Dollars ($3,000,000) in the Common Stock of the Company pursuant
to this Agreement;

 

8.2
On the date that is twenty-four (24) calendar months from the execution of this Agreement;

 

8.3
at such time that an underlying Registration Statement is no longer in effect; or

 

8.4
On the date that the Company has notified the Investor in writing, which cannot be prior to six months after the effective date
of the Registration Statement or four months from the Execution Date if there is no effective Registration Statement despite the
best efforts of the Company.

 

Any
and all shares, or penalties, if any, due under this Agreement shall be immediately payable and due upon termination of this Agreement.

 

SECTION
IX

SUSPENSION

 

This
Agreement shall be suspended upon any of the following events, and shall remain suspended until such event is rectified:

 

	 	i. 	The
    trading of the Common Stock is suspended by the SEC, the Principal Market or FINRA for a period of two (2) consecutive Trading
    Days during the Open Period; or
	 	 	 
	 	ii. 	The
    Common Stock ceases to be quoted, listed or traded on the Principal Market or the Registration Statement is no longer effective
    (except as permitted hereunder). Immediately upon the occurrence of one of the above-described events, the Company shall send
    written notice of such event to the Investor.

 

    	 	 	19

    	 

    

 

SECTION
X

INDEMNIFICATION

 

In
consideration of the parties mutual obligations set forth in the Transaction Documents, the Company ( the “Indemnitor”)
shall defend, protect, indemnify and hold harmless the Investor and all of the investor’s shareholders, officers, directors,
employees, counsel, and direct or indirect investors and any of the foregoing person’s agents or other representatives (including,
without limitation, those retained in connection with the transactions contemplated by this Agreement) (collectively, the “Indemnitees”)
from and against any and all actions, causes of action, suits, claims, losses, costs, penalties, fees, liabilities and damages,
and reasonable expenses in connection therewith (irrespective of whether any such Indemnitee is a party to the action for which
indemnification hereunder is sought), and including reasonable attorneys’ fees and disbursements (the “Indemnified
Liabilities”), incurred by any Indemnitee as a result of, or arising out of, or relating to (I) any misrepresentation
or breach of any representation or warranty made by the Indemnitor or any other certificate, instrument or document contemplated
hereby or thereby; (II) any breach of any covenant, agreement or obligation of the Indemnitor contained in the Registered Offering
Transaction Documents or any other certificate, instrument or document contemplated hereby or thereby; or (III) any cause of action,
suit or claim brought or made against such Indemnitee by a third party and arising out of or resulting from the execution, delivery,
performance or enforcement of the Registered Offering Transaction Documents or any other certificate, instrument or document contemplated
hereby or thereby, except insofar as any such misrepresentation, breach or any untrue statement, alleged untrue statement, omission
or alleged omission is made in reliance upon and in conformity with information furnished to Indemnitor which is specifically
intended for use in the preparation of any such Registration Statement, preliminary prospectus, prospectus or amendments to the
prospectus. To the extent that the foregoing undertaking by the Indemnitor may be unenforceable for any reason, the Indemnitor
shall make the maximum contribution to the payment and satisfaction of each of the Indemnified Liabilities which is permissible
under applicable law. The indemnity provisions contained herein shall be in addition to any cause of action or similar rights
Indemnitor may have, and any liabilities the Indemnitor or the Indemnitees may be subject to.

 

SECTION
XI

GOVERNING
LAW; DISPUTES SUBMITTED TO ARBITRATION.

 

11.1
Law Governing this Agreement.
This Agreement shall be governed by and construed in accordance with the laws of the State of Nevada without regard to principles
of conflicts of laws. Any action brought by either party against the other concerning the transactions contemplated by this Agreement
shall be brought only in the state or federal courts located in New York City, New York State. The parties to this Agreement hereby
irrevocably waive any objection to jurisdiction and venue of any action instituted hereunder and shall not assert any defense
based on lack of jurisdiction or venue or based upon forum non conveniens. The parties executing this Agreement and
other agreements referred to herein or delivered in connection herewith on behalf of the Company agree to submit to the in personam
jurisdiction of such courts and hereby irrevocably waive trial by jury. The prevailing party shall be entitled to recover
from the other party its reasonable attorney’s fees and costs. In the event that any provision of this Agreement or any
other agreement delivered in connection herewith is invalid or unenforceable under any applicable statute or rule of law, then
such provision shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed modified to conform
with such statute or rule of law. Any such provision which may prove invalid or unenforceable under any law shall not affect the
validity or enforceability of any other provision of any agreement. Each party hereby irrevocably waives personal service of process
and consents to process being served in any suit, action or proceeding in connection with this Agreement or any other Transaction
Documents by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such
party at the address in effect for notices to it under this Agreement and agrees that such service shall constitute good and sufficient
service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process
in any other manner permitted by law.

 

11.2
LEGAL FEES; AND MISCELLANEOUS FEES. Except as otherwise set forth in the Registered Offering Transaction Documents (including
but not limited to Section V of the Registration Rights Agreement), each party shall pay the fees and expenses of its advisers,
counsel, the accountants and other experts, if any, and all other expenses incurred by such party incident to the negotiation,
preparation, execution, delivery and performance of this Agreement. The prevailing party in any litigation arising from the Registered
Offering Transaction Documents shall be entitled to recover from the other party its reasonable attorney’s fees and costs.
The Company shall pay all stamp and other taxes and duties levied in connection with the issuance of any Securities.

 

    	 	 	20

    	 

    

 

11.3
COUNTERPARTS. This Agreement may be executed in any number of counterparts and by the different signatories hereto on separate
counterparts, each of which, when so executed, shall be deemed an original, but all such counterparts shall constitute but one
and the same instrument. This Agreement may be executed by facsimile transmission, PDF, electronic signature or other similar
electronic means with the same force and effect as if such signature page were an original thereof.

 

11.4
HEADINGS; SINGULAR/PLURAL. The headings of this Agreement are for convenience of reference and shall not form part of,
or affect the interpretation of, this Agreement. Whenever required by the context of this Agreement, the singular shall include
the plural and masculine shall include the feminine.

 

11.5
SEVERABILITY. If any provision of this Agreement shall be invalid or unenforceable in any jurisdiction, such invalidity
or unenforceability shall not affect the validity or enforceability of the remainder of this Agreement in that jurisdiction or
the validity or enforceability of any provision of this Agreement in any other jurisdiction.

 

11.6
ENTIRE AGREEMENT; AMENDMENTS. The Registered Offering Transaction Documents are the final agreements between the Company
and the Investor with respect to the terms and conditions set forth herein, and, the terms of this Agreement may not be contradicted
by evidence of prior, contemporaneous, or subsequent oral agreements of the Parties. No provision of this Agreement may be amended
other than by an instrument in writing signed by the Company and the Investor, and no provision hereof may be waived other than
by an instrument in writing signed by the party against whom enforcement is sought. The execution and delivery of the Registered
Offering Transaction Documents shall not alter the force and effect of any other agreements between the Parties, and the obligations
under those agreements.

 

11.7
NOTICES. Any notices or other communications required or permitted to be given under the terms of this Agreement must be
in writing and will be deemed to have been delivered (I) upon receipt, when delivered personally; (II) upon receipt, when sent
by email or facsimile (provided confirmation of transmission is mechanically or electronically generated and kept on file by the
sending party); or (III) one (1) day after deposit with a nationally recognized overnight delivery service, in each case properly
addressed to the party to receive the same. The addresses, email addresses and facsimile numbers for such communications shall
be:

 

	 	If
    to the Company:	 	H/Cell
                                         Energy Corporation

        3010
        LBJ Freeway, Suite 1200

        Dallas,
        TX 75234

        Attn:
        Andrew Hidalgo, Chief Executive Officer

        e-mail:
        andy.hidalgo@hcellenergy.com

	 	 	 	 
	 	With
    a copy to (which shall not constitute notice):	 	Sichenzia
                                         Ross Ference LLP

        1185
        Avenue of the Americas, 37th Floor

        New
        York, NY 10036

        Attn:
        James M. Turner, Esq.

        e-mail:
        jturner@srf.law

 

	 	If
    to the Investor:	 	GHS
                                         Investments, LLC

        420
        Jericho Turnpike,

        Suite
        102

        Jericho,
        NY 11753

 

    	 	 	21

    	 

    

 

Each
party shall provide five (5) days prior written notice to the other party of any change in address, email address or facsimile
number.

 

11.8
NO ASSIGNMENT. This Agreement may not be assigned.

 

11.9
NO THIRD PARTY BENEFICIARIES. This Agreement is intended for the benefit of the parties hereto and is not for the benefit
of, nor may any provision hereof be enforced by, any other person, except that the Company acknowledges that the rights of the
Investor may be enforced by its general partner.

 

11.10
SURVIVAL. The representations and warranties of the Company and the Investor contained in Sections 3 and 4, the agreements
and covenants set forth in Sections 5 and 6, and the indemnification provisions set forth in Section 10, shall survive
each of the Closings and the termination of this Agreement.

 

11.11
PUBLICITY. The Investor acknowledges that this Agreement and all or part of the Registered Offering Transaction Documents
may be deemed to be “material contracts” as that term is defined by Item 601(b)(10) of Regulation S-K, and that the
Company may therefore be required to file such documents as exhibits to reports or registration statements filed under the 1933
Act or the 1934 Act. The Investor further agrees that the status of such documents and materials as material contracts shall be
determined solely by the Company, in consultation with its counsel.

 

11.12
FURTHER ASSURANCES. Each party shall do and perform, or cause to be done and performed, all such further acts and things,
and shall execute and deliver all such other agreements, certificates, instruments and documents, as the other party may reasonably
request in order to carry out the intent and accomplish the purposes of this Agreement and the consummation of the transactions
contemplated hereby.

 

11.13
PLACEMENT AGENT. If so required, the Company agrees to pay a registered broker dealer, to act as placement agent, a percentage
of the Put Amount on each Put toward the fee as outlined in that certain placement agent agreement entered into between the Company
and the placement agent. The Investor shall have no obligation with respect to any fees or with respect to any claims made by
or on behalf of other persons or entities for fees of a type contemplated in this Section that may be due in connection with the
transactions contemplated by the Registered Offering Transaction Documents. The Company shall indemnify and hold harmless the
Investor, their employees, officers, directors, agents, and partners, and their respective affiliates, from and against all claims,
losses, damages, costs (including the costs of preparation and attorney’s fees) and expenses incurred in respect of any
such claimed or existing fees, as such fees and expenses are incurred.

 

11.14
NO STRICT CONSTRUCTION. 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, as the parties mutually agree
that each has had a full and fair opportunity to review this Agreement and seek the advice of counsel on it.

 

    	 	 	22

    	 

    

 

11.15
REMEDIES. The Investor shall have all rights and remedies set forth in this Agreement and the Registration Rights Agreement
and all rights and remedies which such holders have been granted at any time under any other agreement or contract and all of
the rights which the Investor has by law. Any person having any rights under any provision of this Agreement shall be entitled
to enforce such rights specifically (without posting a bond or other security), to recover damages by reason of any default or
breach of any provision of this Agreement, including the recovery of reasonable attorney’s fees and costs, and to exercise
all other rights granted by law.

 

11.16
PAYMENT SET ASIDE. To the extent that the Company makes a payment or payments to the Investor hereunder or under the Registration
Rights Agreement or the Investor enforces or exercises its rights hereunder or thereunder, and such payment or payments or the
proceeds of such enforcement or exercise or any part thereof are subsequently invalidated, declared to be fraudulent or preferential,
set aside, recovered from, disgorged by or are required to be refunded, repaid or otherwise restored to the Company, a trustee,
receiver or any other person under any law (including, without limitation, any bankruptcy law, state or federal law, common law
or equitable cause of action), then to the extent of any such restoration the obligation or part thereof originally intended to
be satisfied shall be revived and continued in full force and effect as if such payment had not been made or such enforcement
or setoff had not occurred.

 

11.17
PRICING OF COMMON STOCK. For purposes of this Agreement, the price of the Common Stock shall be as reported by Bloomberg
or such other reporting service as reasonably agreed to by the parties.

 

SECTION
XII

NON-DISCLOSURE
OF NON-PUBLIC INFORMATION

 

The
Company shall not disclose non-public information to the Investor, its advisors, or its representatives, and the Company understands
and confirms that the Investor will be relying on the acknowledgements set forth herein if the Investor effects any transactions
in the securities of the Company.

 

Nothing
herein shall require the Company to disclose non-public information to the Investor or its advisors or representatives, provided,
however, that notwithstanding anything herein to the contrary, the Company will, as hereinabove provided, immediately notify the
advisors and representatives of the Investor and, if any, underwriters, of any event or the existence of any circumstance (without
any obligation to disclose the specific event or circumstance) of which it becomes aware, constituting non-public information
(whether or not requested of the Company specifically or generally during the course of due diligence by such persons or entities),
which, if not disclosed in the prospectus included in the Registration Statement would cause such prospectus to include a material
misstatement or to omit a material fact required to be stated therein in order to make the statements, therein, in light of the
circumstances in which they were made, not misleading. Nothing contained in this Section 12 shall be construed to mean
that such persons or entities other than the Investor (without the written consent of the Investor prior to disclosure of such
information) may not obtain non-public information in the course of conducting due diligence in accordance with the terms of this
Agreement and nothing herein shall prevent any such persons or entities from notifying the Company of their opinion that based
on such due diligence by such persons or entities, that the Registration Statement contains an untrue statement of material fact
or omits a material fact required to be stated in the Registration Statement or necessary to make the statements contained therein,
in light of the circumstances in which they were made, not misleading.

 

[Signature
page follows]

 

    	 	 	23

    	 

    

 

Your
signature on this Signature Page evidences your agreement to be bound by the terms and conditions of the Investment Agreement
as of the date first written above. The undersigned signatory hereby certifies that he has read and understands the Investment
Agreement, and the representations made by the undersigned in this Investment Agreement are true and accurate, and agrees to be
bound by its terms.

 

	 	GHS INVESTMENTS, LLC
	 	 	 
	 	By:	/s/
    SARFRAZ HAJEE
	 	Name:	Sarfraz
    Hajee
	 	Title:	Member
	 	 	 
	 	H/CELL ENERGY CORPORATION
	 	 	 
	 	By:	/s/
    ANDREW HIDALGO
	 	Name:	Andrew
    Hidalgo
	 	Title:	Chief
    Executive Officer

 

[SIGNATURE
PAGE OF EQUITY FINANCING AGREEMENT]

 

    	 	 	24

    	 

    

 

LIST
OF EXHIBITS

 

	EXHIBIT
    A	Registration
    Rights Agreement
	 	 
	EXHIBIT
    B	Notice
    of Effectiveness
	 	 
	EXHIBIT
    C	Put
    Notice
	 	 
	EXHIBIT
    D	Put
    Settlement Sheet

 

    	 	 	25

    	 

    

 

EXHIBIT
A

 

REGISTRATION
RIGHTS AGREEMENT

 

See
attached.

 

    	 	 	26

    	 

    

 

EXHIBIT
B

 

FORM
OF NOTICE OF EFFECTIVENESS

OF
REGISTRATION STATEMENT

 

Date:
__________

 

[TRANSFER
AGENT]

 

Re:
H/Cell Energy Corporation,

 

Ladies
and Gentlemen:

 

We
are counsel to H/Cell Energy Corporation., a Nevada corporation (the “Company”), and have represented the Company
in connection with that certain Equity Financing Agreement (the “Investment Agreement”) entered into by and among
the Company and GHS Investments, LLC (the “Investor”) pursuant to which the Company has agreed to issue to the Investor
shares of the Company’s common stock, $0.0001 par value per share (the “Common Stock”) on the terms and conditions
set forth in the Investment Agreement. Pursuant to the Investment Agreement, the Company also has entered into a Registration
Rights Agreement with the Investor (the “Registration Rights Agreement”) pursuant to which the Company agreed, among
other things, to register the Registrable Securities (as defined in the Registration Rights Agreement), including the shares of
Common Stock issued or issuable under the Investment Agreement under the Securities Act of 1933, as amended (the “1933 Act”).
In connection with the Company’s obligations under the Registration Rights Agreement, on ____________ ___, 20__, the Company
filed a Registration Statement on Form S- ___ (File No. __-________) (the “Registration Statement”) with the Securities
and Exchange Commission (the “SEC”) relating to the Registrable Securities which names the Investor as a selling shareholder
thereunder.

 

In
connection with the foregoing, we advise you that a member of the SEC’s staff has advised us by telephone that the SEC has
entered an order declaring the Registration Statement effective under the 1933 Act at ______ on __________, 20__ and we have no
knowledge, after telephonic inquiry of a member of the SEC’s staff, that any stop order suspending its effectiveness has
been issued or that any proceedings for that purpose are pending before, or threatened by, the SEC and the Registrable Securities
are available for sale under the 1933 Act pursuant to the Registration Statement

 

	 	Very
    truly yours,
	 	 
	 	[Company
    Counsel]

 

    	 	 	27

    	 

    

 

EXHIBIT
C

 

FORM
OF PUT NOTICE

 

Date:

 

RE:
Put Notice Number __

 

Dear
Mr./Ms.__________,

 

This
is to inform you that as of today, H/Cell Energy Corporation, a Nevada corporation (the “Company”), hereby elects
to exercise its right pursuant to the Equity Financing Agreement to require GHS Investments LLC to purchase shares of its common
stock. The Company hereby certifies that:

 

The
amount of this put is $__________.

 

The
Pricing Period runs from _______________ until _______________.

 

The
Purchase Price is: $_______________

 

The
number of Put Shares Due:___________________.

 

The
current number of shares of common stock issued and outstanding is: _________________.

 

The
number of shares currently available for issuance on the S-1 is: ________________________.

 

Regards,

 

H/Cell
Energy Corporation,

 

	By:
    	 	 
	Name:
    	 	 
	Title:	 	 

 

    	 	 	28

    	 

    

 

EXHIBIT
D

 

PUT
SETTLEMENT SHEET

 

Date:
________________

 

Dear
Mr. ________,

 

Pursuant
to the Put given by H/Cell Energy Corporation., to GHS Investments LLC (“GHS”) on _________________ 201_, we are now
submitting the amount of common shares for you to issue to GHS.

 

Please
have a certificate bearing no restrictive legend totaling __________ shares issued to GHS immediately and send via DWAC to the
following account:

 

[INSERT]

 

If
not DWAC eligible, please send FedEx Priority Overnight to:

 

[INSERT
ADDRESS]

 

Once
these shares are received by us, we will have the funds wired to the Company.

 

Regards,

 

	GHS
    INVESTMENTS LLC	 
	 	 	 
	By:
    	               	 
	Name:	 	 
	Title	 	 

 

    	 	 	29Exhibit
10.02

 

REGISTRATION
RIGHTS AGREEMENT

 

This
Registration Rights AGREEMENT (the “Agreement”), dated as of
July 9, 2019 (the “Execution Date”), is entered into by and between H/Cell Energy Corporation., a Nevada corporation
with its principal executive office at 3010 LBJ Freeway, Suite 1200, Dallas, TX 75234 (the “Company”), and
GHS Investments LLC, a Nevada limited liability company, with offices at 420 Jericho Turnpike, Suite 102 Jericho, NY 11753 (the
“Investor”).

 

RECITALS:

 

Whereas,
pursuant to the Equity Financing Agreement entered into by and between the Company and the Investor of this even date (the “Equity
Financing Agreement”), the Company has agreed to issue and sell to the Investor an indeterminate number of shares of
the Company’s common stock, par value $0.0001 per share (the “Common Stock”), up to an aggregate purchase
price of three million dollars ($3,000,000), over the course of twenty-four (24) months;

 

Whereas,
as an inducement to the Investors to execute and deliver the Equity Financing Agreement, the Company has agreed to provide certain
registration rights under the Securities Act of 1933, as amended, and the rules and regulations thereunder, or any similar successor
statute (collectively, the “1933 Act”), and applicable state securities laws, with respect to the shares of
Common Stock issuable pursuant to the Equity Financing Agreement.

 

Now
therefore, in consideration of the foregoing
promises and the mutual covenants contained hereinafter and other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the Company and the Investor hereby agree as follows:

 

SECTION
I

DEFINITIONS

 

As
used in this Agreement, the following terms shall have the following meanings:

 

“Execution
Date” shall have the meaning set forth in the preambles.

 

“Investor”
shall have the meaning set forth in the preambles.

 

“Person”
means a corporation, a limited liability company, an association, a partnership, an organization, a business, an individual, a
governmental or political subdivision thereof or a governmental agency.

 

“Potential
Material Event” means any of the following: (i) the possession by the Company of material information not ripe for disclosure
in the Registration Statement, which shall be evidenced by determinations in good faith by the Board of Directors of the Company
that disclosure of such information in the Registration Statement would be detrimental to the business and affairs of the Company,
or (ii) any material engagement or activity by the Company which would, in the good faith determination of the Board of Directors
of the Company, be adversely affected by disclosure in the Registration Statement at such time, which determination shall be accompanied
by a good faith determination by the Board of Directors of the Company that the Registration Statement would be materially misleading
absent the inclusion of such information.

 

    	 	 	 

     

    

 

“Register,”
“Registered,” and “Registration” refer to the Registration effected by preparing and filing
one (1) or more Registration Statements in compliance with the 1933 Act and pursuant to Rule 415 under the 1933 Act or any successor
rule providing for offering securities on a continuous basis (“Rule 415”), and the declaration or ordering
of effectiveness of such Registration Statement(s) by the United States Securities and Exchange Commission (the “SEC”).

 

“Registrable
Securities” means (i) the shares of Common Stock issued or issuable pursuant to the Equity Financing Agreement, and
(ii) any shares of capital stock issued or issuable with respect to such shares of Common Stock, if any, as a result of any stock
split, stock dividend, recapitalization, exchange or similar event or otherwise, which have not been (x) included in the Registration
Statement that has been declared effective by the SEC, or (y) sold under circumstances meeting all of the applicable conditions
of Rule 144 (or any similar provision then in force) under the 1933 Act.

 

“Registration
Statement” means the registration statement of the Company filed under the 1933 Act covering the Registrable Securities.

 

“Registered
Offering Transaction Documents” shall mean this Agreement and the Equity Financing Agreement between the Company and
the Investor as of the date hereof.

 

All
capitalized terms used in this Agreement and not otherwise defined herein shall have the same meaning ascribed to them as in the
Equity Financing Agreement.

 

SECTION
II

REGISTRATION

 

2.1
The Company shall, within thirty (30) calendar days upon the date of execution of this Agreement, use its commercially reasonable
efforts to file with the SEC a Registration Statement or Registration Statements (as is necessary) on Form S-1 (or, if such form
is unavailable for such a registration, on such other form as is available for such registration), covering the resale of all
of the Registrable Securities, which Registration Statement(s) shall state that, in accordance with Rule 416 promulgated under
the 1933 Act, such Registration Statement also covers such indeterminate number of additional shares of Common Stock as may become
issuable upon stock splits, stock dividends or similar transactions. The Company shall initially register for resale all of the
Registrable Securities which would be issuable on the date preceding the filing of the Registration Statement based on the closing
bid price of the Company’s Common Stock on such date as shall be permitted to be included thereon in accordance with applicable
SEC rules, regulations and interpretations so as to permit the resale of such Registrable Securities by the Investor, including
but not limited to under Rule 415 under the 1933 Act at then prevailing market prices (and not fixed prices).

 

2.2
The Company shall use all commercially reasonable efforts to have the Registration Statement(s) declared effective by the SEC
within thirty (30) calendar days, but no more than ninety (90) calendar days after the Company has filed the Registration Statement.

 

2.3
The Company agrees not to include any other securities in the Registration Statement covering the Registrable Securities without
Investor’s prior written consent which Investor may withhold in its sole discretion. Furthermore, the Company agrees that
it will not file any other registration statement for other securities, until thirty calendar days after the Registration Statement
for the Registrable Securities is declared effective by the SEC.

 

    	 	 	 

     

    

 

2.4
Notwithstanding the registration obligations set forth in this Section 2.1, if the staff of the SEC (the “Staff”)
or the SEC informs the Company that all of the unregistered Registrable Securities cannot, as a result of the application of Rule
415, be registered for resale as a secondary offering on a single Registration Statement, the Company agrees to promptly (i) inform
each of the holders thereof and use its commercially reasonable efforts to file amendments to the Registration Statement as required
by the SEC and/or (ii) withdraw the Registration Statement and file a new registration statement (the “New Registration
Statement”), in either case covering the maximum number of Registrable Securities permitted to be registered by the
SEC, on Form S-1 to register for resale the Registrable Securities as a secondary offering. If the Company amends the Registration
Statement or files a New Registration Statement, as the case may be, under clauses (i) or (ii) above, the Company will use its
commercially reasonable efforts to file with the SEC, as promptly as allowed by the Staff or SEC, one or more registration statements
on Form S-1 to register for resale those Registrable Securities that were not registered for resale on the Registration Statement,
as amended, or the New Registration Statement (each, an “Additional Registration Statement”).

 

SECTION
III

RELATED
OBLIGATIONS

 

At
such time as the Company is obligated to prepare and file the Registration Statement with the SEC pursuant to Section 2, the Company
will affect the registration of the Registrable Securities in accordance with the intended method of disposition thereof and,
with respect thereto, the Company shall have the following obligations:

 

3.1
The Company shall use all commercially reasonable efforts to cause such Registration Statement relating to the Registrable Securities
to become effective and shall use commercially reasonable efforts keep such Registration Statement effective until the earlier
to occur of the date on which (A) the Investor shall have sold all the Registrable Securities; or (B) the Investor has no right
to acquire any additional shares of Common Stock under the Equity Financing Agreement (the “Registration Period”).
The Registration Statement (including any amendments or supplements thereto and prospectuses contained therein) shall not contain
any untrue statement of a material fact or omit to state a material fact required to be stated therein, or necessary to make the
statements therein, in light of the circumstances in which they were made, not misleading. The Company shall use all commercially
reasonable efforts to respond to all SEC comments within ten (10) Trading Days from receipt of such comments by the Company. The
Company shall use all commercially reasonable efforts to cause the Registration Statement relating to the Registrable Securities
to become effective no later than three (3) Trading Days after notice from the SEC that the Registration Statement may be declared
effective. The Investor agrees to provide all information which is required by law to provide to the Company, including the intended
method of disposition of the Registrable Securities, and the Company’s obligations set forth above shall be conditioned
on the receipt of such information.

 

3.2
The Company shall prepare and file with the SEC such amendments (including post-effective amendments) and supplements to the Registration
Statement and the prospectus used in connection with such Registration Statement, which prospectus is to be filed pursuant to
Rule 424 promulgated under the 1933 Act, as may be necessary to keep such Registration Statement effective during the Registration
Period, and, during such period, comply with the provisions of the 1933 Act with respect to the disposition of all Registrable
Securities of the Company covered by such Registration Statement until such time as all of such Registrable Securities shall have
been disposed of in accordance with the intended methods of disposition by the Investor thereof as set forth in such Registration
Statement. In the event the number of shares of Common Stock covered by the Registration Statement filed pursuant to this Agreement
is at any time insufficient to cover all of the Registrable Securities, the Company shall amend such Registration Statement, or
file a new Registration Statement (on the short form available therefor, if applicable), or both, so as to cover all of the Registrable
Securities, in each case, as soon as practicable, but in any event, within thirty (30) calendar days after the necessity therefor
arises (based on the then Purchase Price of the Common Stock and other relevant factors on which the Company reasonably elects
to rely) and subject to SEC rules, regulations and interpretations, assuming the Company has sufficient authorized shares at that
time, and if it does not, within thirty (30) calendar days after such shares are authorized. The Company shall use commercially
reasonable efforts to cause such amendment and/or new Registration Statement to become effective as soon as practicable following
the filing thereof.

 

    	 	 	 

     

    

 

3.3
The Company shall make available to the Investor whose Registrable Securities are included in any Registration Statement and its
legal counsel without charge (i) promptly after the same is prepared and filed with the SEC at least one (1) copy of such Registration
Statement and any amendment(s) thereto, including financial statements and schedules, all documents incorporated therein by reference
and all exhibits, the prospectus included in such Registration Statement (including each preliminary prospectus) and, with regards
to such Registration Statement(s), any correspondence by or on behalf of the Company to the SEC or the staff of the SEC and any
correspondence from the SEC or the staff of the SEC to the Company or its representatives relating to such Registration Statement;
(ii) upon the effectiveness of any Registration Statement, the Company shall make available copies of the prospectus, via EDGAR,
included in such Registration Statement and all amendments and supplements thereto; and (iii) such other documents, including
copies of any preliminary or final prospectus, as the Investor may reasonably request from time to time to facilitate the disposition
of the Registrable Securities. For the avoidance of doubt, any filing available to the Investor via the SEC’s live EDGAR
system shall be deemed “available to the Investor” hereunder.

 

3.4
The Company shall use commercially reasonable efforts to (i) register and qualify the Registrable Securities covered by the Registration
Statement under such other securities or “blue sky” laws of such states in the United States as the Investor reasonably
requests; (ii) prepare and file in those jurisdictions, such amendments (including post-effective amendments) and supplements
to such registrations and qualifications as may be necessary to maintain the effectiveness thereof during the Registration Period;
(iii) take such other actions as may be necessary to maintain such registrations and qualifications in effect at all times during
the Registration Period, and (iv) take all other actions reasonably necessary or advisable to qualify the Registrable Securities
for sale in such jurisdictions; provided, however, that the Company shall not be required in connection therewith or as a condition
thereto to (x) qualify to do business in any jurisdiction where it would not otherwise be required to qualify but for this Section
3.4, (y) subject itself to general taxation in any such jurisdiction or (z) file a general consent to service of process in any
such jurisdiction. The Company shall promptly notify the Investor who holds Registrable Securities of the receipt by the Company
of any notification with respect to the suspension of the registration or qualification of any of the Registrable Securities for
sale under the securities or “blue sky” laws of any jurisdiction in the United States or its receipt of actual notice
of the initiation or threatening of any proceeding for such purpose.

 

3.5
As promptly as practicable after becoming aware of such event, the Company shall notify Investor in writing of the happening of
any event as a result of which the prospectus included in the Registration Statement, as then in effect, includes an untrue statement
of a material fact or oto 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 (“Registration Default”) and use all
diligent efforts to promptly prepare a supplement or amendment to such Registration Statement and take any other necessary steps
to cure the Registration Default (which, if such Registration Statement is on Form S-3, may consist of a document to be filed
by the Company with the SEC pursuant to Section 13(a), 13(c), 14 or 15(d) of the 1934 Act (as defined below) and to be incorporated
by reference in the prospectus) to correct such untrue statement or omission, and make available copies of such supplement or
amendment to the Investor. The Company shall also promptly notify the Investor (i) when a prospectus or any prospectus supplement
or post-effective amendment has been filed, and when the Registration Statement or any post-effective amendment has become effective
(the Company will prepare notification of such effectiveness which shall be delivered to the Investor on the same day of such
effectiveness and by overnight mail), additionally, the Company will promptly provide to the Investor, a copy of the effectiveness
order prepared by the SEC once it is received by the Company; (ii) of any request by the SEC for amendments or supplements to
the Registration Statement or related prospectus or related information, (iii) of the Company’s reasonable determination
that a post-effective amendment to the Registration Statement would be appropriate, (iv) in the event the Registration Statement
is no longer effective, or (v) if the Registration Statement is stale as a result of the Company’s failure to timely file
its financials or otherwise.

 

    	 	 	 

     

    

 

3.6
The Company shall use all commercially reasonable efforts to prevent the issuance of any stop order or other suspension of effectiveness
of the Registration Statement, or the suspension of the qualification of any of the Registrable Securities for sale in any jurisdiction
and, if such an order or suspension is issued, to obtain the withdrawal of such order or suspension at the earliest possible moment
and to notify the Investor holding Registrable Securities being sold of the issuance of such order and the resolution thereof
or its receipt of actual notice of the initiation or threat of any proceeding concerning the effectiveness of the registration
statement.

 

3.7
The Company shall permit the Investor and one (1) legal counsel, designated by the Investor, to review and comment upon the Registration
Statement and all amendments and supplements thereto at least one (1) calendar day prior to their filing with the SEC. However,
any postponement of a filing of a Registration Statement or any postponement of a request for acceleration or any postponement
of the effective date or effectiveness of a Registration Statement by written request of the Investor (collectively, the “Investor’s
Delay”) shall not act to trigger any penalty of any kind, or any cash amount due or any in-kind amount due the Investor
from the Company under any and all agreements of any nature or kind between the Company and the Investor. The event(s) of an Investor’s
Delay shall act to suspend all obligations of any kind or nature of the Company under any and all agreements of any nature or
kind between the Company and the Investor.

 

3.8
[Reserved]

 

3.9
The Company shall hold in confidence and not make any disclosure of information concerning the Investor unless (i) disclosure
of such information is necessary to comply with federal or state securities laws, (ii) the disclosure of such information is necessary
to avoid or correct a misstatement or omission in any Registration Statement, or (iii) the release of such information is ordered
pursuant to a subpoena or other final, non-appealable order from a court or governmental body of competent jurisdiction. The Company
agrees that it shall, upon learning that disclosure of such information concerning the Investor is sought in or by a court or
governmental body of competent jurisdiction or through other means, to the extent legally permissible, give prompt written notice
to the Investor and allow the Investor, at the Investor’s expense, to undertake appropriate action to prevent disclosure
of, or to obtain a protective order covering such information.

 

3.10
The Company shall use all commercially reasonable efforts to maintain designation and quotation of all the Registrable Securities
covered by any Registration Statement on the Principal Market. If, despite the Company’s commercially reasonable efforts,
the Company is unsuccessful in satisfying the preceding sentence, it shall use commercially reasonable efforts to cause all the
Registrable Securities covered by any Registration Statement to be listed on each other national securities exchange and automated
quotation system, if any, on which securities of the same class or series issued by the Company are then listed, if any, if the
listing of such Registrable Securities is then permitted under the rules of such exchange or system. The Company shall pay all
fees and expenses in connection with satisfying its obligation under this Section 3.10.

 

    	 	 	 

     

    

 

3.11
The Company shall cooperate with the Investor to facilitate the prompt preparation and delivery the Registrable Securities to
be offered pursuant to the Registration Statement and enable such Registrable Securities to be in such denominations or amounts,
as the case may be, as the Investor may reasonably request.

 

3.12
The Company shall provide a transfer agent for all the Registrable Securities not later than the effective date of the first Registration
Statement filed pursuant hereto.

 

3.13
If reasonably requested by the Investor, the Company shall (i) as soon as reasonably practical incorporate in a prospectus supplement
or post-effective amendment such information as the Investor reasonably determines should be included therein relating to the
sale and distribution of Registrable Securities, including, without limitation, information with respect to the offering of the
Registrable Securities to be sold in such offering; (ii) make all required filings of such prospectus supplement or post-effective
amendment as soon as reasonably possible after being notified of the matters to be incorporated in such prospectus supplement
or post-effective amendment; and (iii) supplement or make amendments to any Registration Statement.

 

3.14
The Company shall use all commercially reasonable efforts to cause the Registrable Securities covered by the applicable Registration
Statement to be registered with or approved by such other governmental agencies or authorities as may be necessary to facilitate
the disposition of such Registrable Securities.

 

3.15
The Company shall otherwise use all commercially reasonable efforts to comply with all applicable rules and regulations of the
SEC in connection with any registration hereunder.

 

3.16
Within three (3) Trading Days after the Registration Statement which includes Registrable Securities is declared effective by
the SEC, the Company shall deliver to the transfer agent for such Registrable Securities, with copies to the Investor, confirmation
that such Registration Statement has been declared effective by the SEC.

 

3.17
The Company shall take all other reasonable actions necessary to expedite and facilitate disposition by the Investor of Registrable
Securities pursuant to the Registration Statement.

 

SECTION
IV

OBLIGATIONS
OF THE INVESTOR

 

4.1
At least five (5) calendar days prior to the first anticipated filing date of the Registration Statement, the Company shall notify
the Investor in writing of the information the Company requires from the Investor for the Registration Statement. It shall be
a condition precedent to the obligations of the Company to complete the registration pursuant to this Agreement with respect to
the Registrable Securities and the Investor agrees to furnish to the Company that information regarding itself, the Registrable
Securities and the intended method of disposition of the Registrable Securities as shall reasonably be required to effect the
registration of such Registrable Securities and the Investor shall execute such documents in connection with such registration
as the Company may reasonably request. The Investor covenants and agrees that, in connection with any sale of Registrable Securities
by it pursuant to the Registration Statement, it shall comply with the “Plan of Distribution” section of the then
current prospectus relating to such Registration Statement.

 

4.2
The Investor agrees to cooperate with the Company as reasonably requested by the Company in connection with the preparation and
filing of any Registration Statement hereunder.

 

    	 	 	 

     

    

 

4.3
The Investor agrees that, upon receipt of written notice from the Company of the happening of any event of the kind described
in Section 3.6 or the first sentence of 3.5, the Investor will immediately discontinue disposition of Registrable Securities pursuant
to any Registration Statement(s) covering such Registrable Securities until the Investor’s receipt of the copies of the
supplemented or amended prospectus contemplated by Section 3.6 or the first sentence of 3.5.

 

SECTION
V

EXPENSES
OF REGISTRATION

 

All
legal expenses, other than underwriting discounts and sales or brokerage commissions and other than as set forth in the Equity
Financing Agreement, incurred in connection with registrations including comments, filings or qualifications pursuant to Sections
2 and 3, including, without limitation, all registration, listing and qualifications fees, and printing fees shall be paid by
the Company.

 

SECTION
VI

INDEMNIFICATION

 

In
the event any Registrable Securities are included in the Registration Statement under this Agreement:

 

6.1
To the fullest extent permitted by law, the Company, under this Agreement, will, and hereby does, indemnify, hold harmless and
defend the Investor who holds Registrable Securities, the directors, officers, partners, employees, counsel, agents, representatives
of, and each Person, if any, who controls, any Investor within the meaning of the 1933 Act or the Securities Exchange Act of 1934,
as amended (the “1934 Act”) (each, an “Indemnified Person”), against any losses, claims,
damages, liabilities, judgments, fines, penalties, charges, costs, attorneys’ fees, amounts paid in settlement or expenses,
joint or several (collectively, “Claims”), incurred in investigating, preparing or defending any action, claim,
suit, inquiry, proceeding, investigation or appeal taken from the foregoing by or before any court or governmental, administrative
or other regulatory agency, body or the SEC, whether pending or threatened, whether or not an indemnified party is or may be a
party thereto (“Indemnified Damages”), to which any of them may become subject insofar as such Claims (or actions
or proceedings, whether commenced or threatened, in respect thereof) arise out of or are based upon: (i) any untrue statement
or alleged untrue statement of a material fact in the Registration Statement or any post-effective amendment thereto or in any
filing made in connection with the qualification of the offering under the securities or other “blue sky” laws of
any jurisdiction in which the Investor has requested in writing that the Company register or qualify the Shares (“Blue
Sky Filing”), or the omission or alleged omission to state a material fact required to be stated therein or necessary
to make the statements therein, in light of the circumstances under which the statements therein were made, not misleading, (ii)
any untrue statement or alleged untrue statement of a material fact contained in the final prospectus (as amended or supplemented,
if the Company files any amendment thereof or supplement thereto with the SEC) or the omission or alleged omission to state therein
any material fact necessary to make the statements made therein, in light of the circumstances under which the statements therein
were made, not misleading, or (iii) any violation or alleged violation by the Company of the 1933 Act, the 1934 Act, any other
law, including, without limitation, any state securities law, or any rule or regulation thereunder relating to the offer or sale
of the Registrable Securities pursuant to the Registration Statement (the matters in the foregoing clauses (I) through (iii) being,
collectively, “Violations”). Subject to the restrictions set forth in Section 6.3 the Company shall reimburse
the Investor and each such controlling person, promptly as such expenses are incurred and are due and payable, for any reasonable
legal fees or other reasonable expenses incurred by them in connection with investigating or defending any such Claim. Notwithstanding
anything to the contrary contained herein, the indemnification agreement contained in this Section 6.1: (I) shall not apply to
a Claim arising out of or based upon a Violation which is due to the inclusion in the Registration Statement of the information
furnished to the Company by any Indemnified Person expressly for use in connection with the preparation of the Registration Statement
or any such amendment thereof or supplement thereto; (ii) shall not be available to the extent such Claim is based on (a) a failure
of the Investor to deliver or to cause to be delivered the prospectus made available by the Company or (b) the Indemnified Person’s
use of an incorrect prospectus despite being promptly advised in advance by the Company in writing not to use such incorrect prospectus;
(iii) any claims based on the manner of sale of the Registrable Securities by the Investor or of the Investor’s failure
to register as a dealer under applicable securities laws; (iv) any omission of the Investor to notify the Company of any material
fact that should be stated in the Registration Statement or prospectus relating to the Investor or the manner of sale; and (v)
any amounts paid in settlement of any Claim if such settlement is effected without the prior written consent of the Company, which
consent shall not be unreasonably withheld. Such indemnity shall remain in full force and effect regardless of any investigation
made by or on behalf of the Indemnified Person and shall survive the resale of the Registrable Securities by the Investor pursuant
to the Registration Statement.

 

    	 	 	 

     

    

 

6.2
In connection with any Registration Statement in which Investor is participating, the Investor agrees to severally and jointly
indemnify, hold harmless and defend, to the same extent and in the same manner as is set forth in Section 6.1, the Company, each
of its directors, each of its officers who signs the Registration Statement, each Person, if any, who controls the Company within
the meaning of the 1933 Act or the 1934 Act and the Company’s agents (collectively and together with an Indemnified Person,
an “Indemnified Party”), against any Claim or Indemnified Damages to which any of them may become subject,
under the 1933 Act, the 1934 Act or otherwise, insofar as such Claim or Indemnified Damages arise out of or are based upon any
Violation, in each case to the extent, and only to the extent, that such Violation is due to the inclusion in the Registration
Statement of the written information furnished to the Company by the Investor expressly for use in connection with such Registration
Statement; and, subject to Section 6.3, the Investor will reimburse any legal or other expenses reasonably incurred by them in
connection with investigating or defending any such Claim; provided, however, that the indemnity agreement contained in
this Section 6.2 and the agreement with respect to contribution contained in Section 7 shall not apply to amounts paid in settlement
of any Claim if such settlement is effected without the prior written consent of the Investor, which consent shall not be unreasonably
withheld; provided, further, however, that the Investor shall only be liable under this Section 6.2 for that amount of a Claim
or Indemnified Damages as does not exceed the net proceeds to such Investor as a result of the sale of Registrable Securities
pursuant to such Registration Statement. Such indemnity shall remain in full force and effect regardless of any investigation
made by or on behalf of such Indemnified Party and shall survive the resale of the Registrable Securities by the Investor pursuant
to the Registration Statement. Notwithstanding anything to the contrary contained herein, the indemnification agreement contained
in this Section 6.2 with respect to any preliminary prospectus shall not inure to the benefit of any Indemnified Party if the
untrue statement or omission of material fact contained in the preliminary prospectus were corrected on a timely basis in the
prospectus, as then amended or supplemented. This indemnification provision shall apply separately to each Investor and liability
hereunder shall not be joint and several.

 

    	 	 	 

     

    

 

6.3
Promptly after receipt by an Indemnified Person or Indemnified Party under this Section 6 of notice of the commencement of any
action or proceeding (including any governmental action or proceeding) involving a Claim, such Indemnified Person or Indemnified
Party shall, if a Claim in respect thereof is to be made against any indemnifying party under this Section 6, deliver to the indemnifying
party a written notice of the commencement thereof, and the indemnifying party shall have the right to participate in, and, to
the extent the indemnifying party so desires, jointly with any other indemnifying party similarly noticed, to assume control of
the defense thereof with counsel mutually satisfactory to the indemnifying party and the Indemnified Person or the Indemnified
Party, as the case may be; provided, however, that an Indemnified Person or Indemnified Party shall have the right to retain its
own counsel with the fees and expenses to be paid by the indemnifying party, if, in the reasonable opinion of counsel retained
by the Indemnified Person or Indemnified Party, the representation by counsel of the Indemnified Person or Indemnified Party and
the indemnifying party would be inappropriate due to actual or potential differing interests between such Indemnified Person or
Indemnified Party and any other party represented by such counsel in such proceeding. The indemnifying party shall pay for only
one (1) separate legal counsel for the Indemnified Persons or the Indemnified Parties, as applicable, and such counsel shall be
selected by the Investor, if the Investor is entitled to indemnification hereunder, or the Company, if the Company is entitled
to indemnification hereunder, as applicable. The Indemnified Party or Indemnified Person shall cooperate fully with the indemnifying
party in connection with any negotiation or defense of any such action or Claim by the indemnifying party and shall furnish to
the indemnifying party all information reasonably available to the Indemnified Party or Indemnified Person which relates to such
action or Claim. The indemnifying party shall keep the Indemnified Party or Indemnified Person fully apprised at all times as
to the status of the defense or any settlement negotiations with respect thereto. No indemnifying party shall be liable for any
settlement of any action, claim or proceeding effectuated without its written consent, provided, however, that the indemnifying
party shall not unreasonably withhold, delay or condition its consent. No indemnifying party shall, without the consent of the
Indemnified Party or Indemnified Person, consent to entry of any judgment or enter into any settlement or other compromise which
does not include as an unconditional term thereof the giving by the claimant or plaintiff to such Indemnified Party or Indemnified
Person of a release from all liability in respect to such Claim. Following indemnification as provided for hereunder, the indemnifying
party shall be subrogated to all rights of the Indemnified Party or Indemnified Person with respect to all third parties, firms
or corporations relating to the matter for which indemnification has been made. The failure to deliver written notice to the indemnifying
party within a reasonable time of the commencement of any such action shall not relieve such indemnifying party of any liability
to the Indemnified Person or Indemnified Party under this Section 6, except to the extent that the indemnifying party is prejudiced
in its ability to defend such action.

 

6.4
The indemnity agreements contained herein shall be in addition to (I) any cause of action or similar right of the Indemnified
Party or Indemnified Person against the indemnifying party or others, and (ii) any liabilities the indemnifying party may be subject
to pursuant to the law.

 

SECTION
VII

CONTRIBUTION

 

7.1
To the extent any indemnification by an indemnifying party is prohibited or limited by law, the indemnifying party agrees to make
the maximum contribution with respect to any amounts for which it would otherwise be liable under Section 6 to the fullest extent
permitted by law; provided, however, that: (I) no contribution shall be made under circumstances where the maker would not have
been liable for indemnification under the fault standards set forth in Section 6; (ii) no seller of Registrable Securities guilty
of fraudulent misrepresentation (within the meaning of Section 11(f) of the 1933 Act) shall be entitled to contribution from any
seller of Registrable Securities who was not guilty of fraudulent misrepresentation; and (iii) contribution by any seller of Registrable
Securities shall be limited in amount to the net amount of proceeds received by such seller from the sale of such Registrable
Securities.

 

    	 	 	 

     

    

 

SECTION
VIII

REPORTS
UNDER THE 1934 ACT

 

8.1
With a view to making available to the Investor the benefits of Rule 144 promulgated under the 1933 Act or any other similar rule
or regulation of the SEC that may at any time permit the Investor to sell Registrable Securities to the public without registration
(“Rule 144”), provided that the Investor holds any Registrable Securities are eligible for resale under Rule
144, the Company agrees to:

 

	 	a.	make
    and keep adequate current public information available, as those terms are understood and defined in Rule 144;
	 	 	 
	 	b.	file
    with the SEC in a timely manner all reports and other documents required of the Company under the 1933 Act and the 1934 Act
    so long as the Company remains subject to such requirements (it being understood that nothing herein shall limit the Company’s
    obligations under Section 5(c) of the Equity Financing Agreement) and the filing of such reports and other documents is required
    for the applicable provisions of Rule 144; and
	 	 	 
	 	c.	furnish
    to the Investor, promptly upon request, (I) a written statement by the Company that it has complied with the reporting requirements
    of Rule 144, the 1933 Act and the 1934 Act, (ii) a copy of the most recent annual or quarterly report of the Company and such
    other reports and documents so filed by the Company, and (iii) such other information as may be reasonably requested to permit
    the Investor to sell such securities pursuant to Rule 144 without registration.

 

SECTION
X

MISCELLANEOUS

 

9.1
NOTICES. Any notices or other communications required or permitted to be given under the terms of this Agreement that must
be in writing will be deemed to have been delivered (i) upon receipt, when delivered personally; (ii) upon receipt, when sent
by facsimile or email (provided a confirmation of transmission is mechanically or electronically generated and kept on file by
the sending party); or (iii) one (1) day after deposit with a nationally recognized overnight delivery service, in each case properly
addressed to the party to receive the same. The addresses and facsimile numbers for such communications shall be:

 

	If
    to the Company:	 	H/Cell
        Energy Corporation

        3010
        LBJ Freeway, Suite 1200

        Dallas,
        TX 75234

        Attn:
        Andrew Hidalgo, Chief Executive Officer

        e-mail:
        andy.hidalgo@hcellenergy.com

	 	 	 
	With a copy to

                                                         (which shall not constitute notice):
	 	Sichenzia
        Ross Ference LLP

        1185
        Avenue of the Americas, 37th Floor

        New
        York, NY 10036

        Attn:
        James M. Turner, Esq.

        e-mail:
        jturner@srf.law

	 	 	 
	If
    to the Investor:	 	GHS
        Investments, LLC

        420
        Jericho Turnpike, Suite 102

        Jericho,
        NY 11753

 

Each
party shall provide five (5) Trading Days prior notice to the other party of any change in address, phone number, email address
or facsimile number.

 

    	 	 	 

     

    

 

9.2
NO WAIVERS. Failure of any party to exercise any right or remedy under this Agreement or otherwise, or delay by a party
in exercising such right or remedy, shall not operate as a waiver thereof.

 

9.3
NO ASSIGNMENTS. The rights and obligations under this Agreement shall not be assignable.

 

9.4
ENTIRE AGREEMENT/AMENDMENT. This Agreement and the Registered Offering Transaction Documents constitute the entire agreement
among the parties hereto with respect to the subject matter hereof and thereof. There are no restrictions, promises, warranties
or undertakings, other than those set forth or referred to herein and therein. This Agreement and the Registered Offering Transaction
Documents supersede all prior agreements and understandings among the parties hereto with respect to the subject matter hereof
and thereof. The provisions of this Agreement may be amended only with the written consent of the Company and Investor.

 

9.5
HEADINGS. The headings in this Agreement are for convenience of reference only and shall not limit or otherwise affect
the meaning hereof. Whenever required by the context of this Agreement, the singular shall include the plural and masculine shall
include the feminine. This Agreement shall not be construed as if it had been prepared by one of the parties, but rather as if
all the parties had prepared the same.

 

9.6
COUNTERPARTS. This Agreement may be executed in any number of counterparts and by the different signatories hereto on separate
counterparts, each of which, when so executed, shall be deemed an original, but all such counterparts shall constitute but one
and the same instrument. This Agreement may be executed by facsimile transmission, PDF, electronic signature or other similar
electronic means with the same force and effect as if such signature page were an original thereof.

 

9.7
FURTHER ASSURANCES. Each party shall do and perform, or cause to be done and performed, all such further acts and things,
and shall execute and deliver all such other agreements, certificates, instruments and documents, as the other party may reasonably
request in order to carry out the intent and accomplish the purposes of this Agreement and the consummation of the transactions
contemplated hereby.

 

9.8
SEVERABILITY. In case any provision of this Agreement is held by a court of competent jurisdiction to be excessive in scope
or otherwise invalid or unenforceable, such provision shall be adjusted rather than voided, if possible, so that it is enforceable
to the maximum extent possible, and the validity and enforceability of the remaining provisions of this Agreement will not in
any way be affected or impaired thereby.

 

    	 	 	 

     

    

 

9.9
Law Governing this Agreement.
This Agreement shall be governed by and construed in accordance with the laws of the State of Nevada without regard to principles
of conflicts of laws. Any action brought by either party against the other concerning the transactions contemplated by this Agreement
shall be brought only in the state or federal courts located in New York City, New York. The parties to this Agreement hereby
irrevocably waive any objection to jurisdiction and venue of any action instituted hereunder and shall not assert any defense
based on lack of jurisdiction or venue or based upon forum non conveniens. The parties executing this Agreement and
other agreements referred to herein or delivered in connection herewith on behalf of the Company agree to submit to the in personam
jurisdiction of such courts and hereby irrevocably waive trial by jury. The prevailing party shall be entitled to recover
from the other party its reasonable attorney’s fees and costs. In the event that any provision of this Agreement or any
other agreement delivered in connection herewith is invalid or unenforceable under any applicable statute or rule of law, then
such provision shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed modified to conform
with such statute or rule of law. Any such provision which may prove invalid or unenforceable under any law shall not affect the
validity or enforceability of any other provision of any agreement. Each party hereby irrevocably waives personal service of process
and consents to process being served in any suit, action or proceeding in connection with this Agreement or any other Registered
Offering Transaction Documents by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence
of delivery) to such party at the address in effect for notices to it under this Agreement and agrees that such service shall
constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any
way any right to serve process in any other manner permitted by law.

 

9.10
NO THIRD PARTY BENEFICIARIES. This Agreement is intended for the benefit of the parties hereto and is not for the benefit
of, nor may any provision hereof be enforced by, any other person, except that the Company acknowledges that the rights of the
Investor may be enforced by its general partner.

 

[Signature
page follows]

 

    	 	 	 

     

    

 

Your
signature on this Signature Page evidences your agreement to be bound by the terms and conditions of the Registration Rights Agreement
as of the date first written above. The undersigned signatory hereby certifies that he has read and understands the Registration
Rights Agreement, and the representations made by the undersigned in this Registration Rights Agreement are true and accurate,
and agrees to be bound by its terms.

 

	 	GHS
    INVESTMENTS, LLC
	 	 	 
	 	By:	/s/
    SARFRAZ HAJEE
	 	Name:	Sarfraz
    Hajee
	 	Title:	Member
	 	 	 
	 	H/CELL
    ENERGY corporation
	 	 	 
	 	By:	/s/
    ANDREW HIDALGO
	 	Name:	Andrew
    Hidalgo
	 	Title:	Chief
    Executive Officer

 

[SIGNATURE
PAGE OF REGISTRATION RIGHTS AGREEMENT]

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