Document:

Exhibit 10.4

 

THIS WARRANT AND THE SHARES PURCHASABLE
HEREUNDER HAVE BEEN ACQUIRED FOR INVESTMENT AND HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR QUALIFIED
UNDER ANY STATE SECURITIES LAWS. SUCH SECURITIES MAY NOT BE SOLD OR TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR QUALIFICATION
OR AN EXEMPTION THEREFROM UNDER SAID ACT AND ANY APPLICABLE STATE SECURITIES LAWS.

 

THIS WARRANT AND THE SHARES PURCHASABLE
HEREUNDER ARE SUBJECT TO RESTRICTIONS ON TRANSFER CONTAINED IN THAT CERTAIN LOCK-UP AGREEMENT, DATED APRIL 4, 2018, WHICH RESTRICTIONS
ON TRANSFER ARE INCORPORATED HEREIN BY REFERENCE.

 

Helios and Matheson Analytics
Inc.

 

Warrant to Purchase Common
Stock

 

Warrant No.:2018-43

 

Date of Issuance: April 4, 2018 (“Issuance
Date”)

 

Helios and Matheson
Analytics Inc., a Delaware corporation (the “Company”), hereby certifies that, for good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, OATH INC., the registered holder hereof or its permitted assigns
(the “Holder”), is entitled, subject to the terms set forth below, to purchase from the Company, at the Exercise
Price (as defined below) then in effect, upon exercise of this Warrant to Purchase Common Stock (including any Warrants to Purchase
Common Stock issued in exchange, transfer or replacement hereof, the “Warrant”), at any time or times on or
after the Issuance Date, but not after 11:59 p.m., New York time, on the Expiration Date (as defined below), 2,550,154 (subject
to adjustment as provided herein) fully paid and non-assessable shares of Common Stock (as defined below) (the “Warrant
Shares”, and such number of Warrant Shares, the “Warrant Number”). Except as otherwise defined herein,
capitalized terms in this Warrant shall have the meanings set forth in Section 17. This Warrant is one of the warrants to
purchase Common Stock (the “Buyer Warrants”) issued pursuant to Section 1.3(c) of that certain Asset Purchase
Agreement, dated as of April 4, 2018 (the “Subscription Date”), by and between the Company and Oath Inc. (the
“Asset Purchase Agreement”).

 

     

     

    

 

1. 
EXERCISE OF WARRANT.

 

(a) 
Mechanics of Exercise. Subject to the terms and conditions hereof (including, without limitation, the limitations
set forth in Section 1(f)), this Warrant may be exercised by the Holder on any day on or after the Issuance Date (an “Exercise
Date”), in whole or in part, by delivery (whether via facsimile or otherwise) of a written notice, in the form attached
hereto as Exhibit A (the “Exercise Notice”), of the Holder’s election to exercise this
Warrant. Within one (1) Trading Day following an exercise of this Warrant as aforesaid, the Holder shall deliver payment to
the Company of an amount equal to the Exercise Price in effect on the date of such exercise multiplied by the number of Warrant
Shares as to which this Warrant was so exercised (the “Aggregate Exercise Price”) in cash or via wire transfer
of immediately available funds if the Holder did not notify the Company in such Exercise Notice that such exercise was made pursuant
to a Cashless Exercise (as defined in Section 1(d)). The Holder shall not be required to deliver the original of this Warrant
in order to effect an exercise hereunder. Execution and delivery of an Exercise Notice with respect to less than all of the Warrant
Shares shall have the same effect as cancellation of the original of this Warrant and issuance of a new Warrant evidencing the
right to purchase the remaining number of Warrant Shares. Execution and delivery of an Exercise Notice for all of the then-remaining
Warrant Shares shall have the same effect as cancellation of the original of this Warrant after delivery of the Warrant Shares
in accordance with the terms hereof. On or before the first (1st) Trading Day following the date on which the Company has received
an Exercise Notice, the Company shall transmit by facsimile or electronic mail an acknowledgment of confirmation of receipt of
such Exercise Notice, in the form attached hereto as Exhibit B, to the Holder and the Company’s transfer
agent (the “Transfer Agent”), which confirmation shall constitute an instruction to the Transfer Agent to process
such Exercise Notice in accordance with the terms herein. On or before the second (2nd) Trading Day following the date on which
the Company has received such Exercise Notice (or such earlier date as required pursuant to the 1934 Act or other applicable law,
rule or regulation for the settlement of a trade of such Warrant Shares initiated on the applicable Exercise Date), the Company
shall (X) provided that the Transfer Agent is participating in The Depository Trust Company (“DTC”) Fast
Automated Securities Transfer Program, upon the request of the Holder, credit such aggregate number of shares of Common Stock to
which the Holder is entitled pursuant to such exercise to the Holder’s or its designee’s balance account with DTC through
its Deposit/Withdrawal at Custodian system, or (Y) if the Transfer Agent is not participating in the DTC Fast Automated Securities
Transfer Program, upon the request of the Holder, issue and deliver (via reputable overnight courier) to the address as specified
in the Exercise Notice, a certificate, registered in the name of the Holder or its designee, for the number of shares of Common
Stock to which the Holder shall be entitled pursuant to such exercise. Upon delivery of an Exercise Notice, the Holder shall be
deemed for all corporate purposes to have become the holder of record of the Warrant Shares with respect to which this Warrant
has been exercised, irrespective of the date such Warrant Shares are credited to the Holder’s DTC account or the date of
delivery of the certificates evidencing such Warrant Shares (as the case may be). If this Warrant is submitted in connection with
any exercise pursuant to this Section 1(a) and the number of Warrant Shares represented by this Warrant submitted for exercise
is greater than the number of Warrant Shares being acquired upon an exercise and upon surrender of this Warrant to the Company
by the Holder, then, at the request of the Holder, the Company shall as soon as practicable and in no event later than two (2) Business
Days after any exercise and at its own expense, issue and deliver to the Holder (or its designee) a new Warrant (in accordance
with Section 7(d)) representing the right to purchase the number of Warrant Shares purchasable immediately prior to such exercise
under this Warrant, less the number of Warrant Shares with respect to which this Warrant is exercised. No fractional shares of
Common Stock are to be issued upon the exercise of this Warrant, but rather the number of shares of Common Stock to be issued shall
be rounded up to the nearest whole number. The Company shall pay any and all transfer, stamp, issuance and similar taxes, costs
and expenses (including, without limitation, fees and expenses of the Transfer Agent) that may be payable with respect to the issuance
and delivery of Warrant Shares upon exercise of this Warrant. Notwithstanding the foregoing, except in the case where an exercise
of this Warrant is validly made pursuant to a Cashless Exercise, the Company’s failure to deliver Warrant Shares to the Holder
on or prior to two (2) Trading Days after receipt of the applicable Exercise Notice (or such earlier date as required pursuant
to the 1934 Act or other applicable law, rule or regulation for the settlement of a trade of such Warrant Shares initiated on the
applicable Exercise Date) shall not be deemed to be a breach of this Warrant to the extent the Holder has not delivered payment
to the Company in an amount equal to the Aggregate Exercise Price as further provided for in this Warrant. Notwithstanding anything
to the contrary contained in this Warrant or the Registration Rights Agreement, after the effective date of the Registration Statement
(as defined in the Registration Rights Agreement) and prior to the Holder’s receipt of the notice of a Grace Period (as defined
in the Registration Rights Agreement), the Company shall cause the Transfer Agent to deliver unlegended shares of Common Stock
to the Holder (or its designee) in connection with any sale of Registrable Securities (as defined in the Registration Rights Agreement)
with respect to which the Holder has entered into a contract for sale, and delivered a copy of the prospectus included as part
of the particular Registration Statement to the extent applicable, and for which the Holder has not yet settled. From the Issuance
Date through and including the Expiration Date, the Company shall maintain a transfer agent that participates in the DTC’s
Fast Automated Securities Transfer Program.

 

(b) 
Exercise Price. For purposes of this Warrant, “Exercise Price” means $5.50, subject to adjustment
as provided herein.

 

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(c) 
Company’s Failure to Timely Deliver Securities. If the Company shall fail, for any reason or for no reason,
on or prior to the later of ((i) two (2) Trading Days after receipt of the applicable Exercise Notice (or such earlier date
as required pursuant to the 1934 Act or other applicable law, rule or regulation for the settlement of a trade of such Warrant
Shares initiated on the applicable Exercise Date) and (ii) one (1) Trading Day after the Company’s receipt of the
Aggregate Exercise Price (or valid notice of a Cashless Exercise) (such later date, the “Share Delivery Date”),
either (I) if the Transfer Agent is not participating in the DTC Fast Automated Securities Transfer Program, to issue and
deliver to the Holder (or its designee) a certificate for the number of Warrant Shares to which the Holder is entitled and register
such Warrant Shares on the Company’s share register or, if the Transfer Agent is participating in the DTC Fast Automated
Securities Transfer Program, to credit the balance account of the Holder or the Holder’s designee with DTC for such number
of Warrant Shares to which the Holder is entitled upon the Holder’s exercise of this Warrant (as the case may be) or (II) if
a Registration Statement covering the resale of the Warrant Shares that are the subject of the Exercise Notice (the “Unavailable
Warrant Shares”) is not available for the resale of such Unavailable Warrant Shares and the Company fails to promptly,
but in no event later than as required pursuant to the Registration Rights Agreement (x) so notify the Holder and (y) deliver
the Warrant Shares electronically without any restrictive legend by crediting such aggregate number of Warrant Shares to which
the Holder is entitled pursuant to such exercise to the Holder’s or its designee’s balance account with DTC through
its Deposit/Withdrawal At Custodian system (the event described in the immediately foregoing clause (II) is hereinafter referred
as a “Notice Failure” and together with the event described in clause (I) above, a “Delivery Failure”),
then, in addition to all other remedies available to the Holder, (X) the Company shall pay in cash to the Holder on each day
after the Share Delivery Date and during such Delivery Failure an amount equal to 2% of the product of (A) the sum of the
number of shares of Common Stock not issued to the Holder on or prior to the Share Delivery Date and to which the Holder is entitled,
multiplied by (B) any trading price of the Common Stock selected by the Holder in writing as in effect at any time during
the period beginning on the applicable Exercise Date and ending on the applicable Share Delivery Date, and (Y) the Holder,
upon written notice to the Company, may void its Exercise Notice with respect to, and retain or have returned, as the case may
be, any portion of this Warrant that has not been exercised pursuant to such Exercise Notice; provided that the voiding of an Exercise
Notice shall not affect the Company’s obligations to make any payments which have accrued prior to the date of such notice
pursuant to this Section 1(c) or otherwise. In addition to the foregoing, if on or prior to the Share Delivery Date either
(I) if the Transfer Agent is not participating in the DTC Fast Automated Securities Transfer Program, the Company shall fail
to issue and deliver to the Holder (or its designee) a certificate and register such shares of Common Stock on the Company’s
share register or, if the Transfer Agent is participating in the DTC Fast Automated Securities Transfer Program, the Transfer Agent
shall fail to credit the balance account of the Holder or the Holder’s designee with DTC for the number of shares of Common
Stock to which the Holder is entitled upon the Holder’s exercise hereunder or pursuant to the Company’s obligation
pursuant to clause (ii) below or (II) a Notice Failure occurs, and if on or after such Share Delivery Date the Holder
purchases (in an open market transaction or otherwise) shares of Common Stock corresponding to all or any portion of the number
of shares of Common Stock issuable upon such exercise that the Holder is entitled to receive from the Company and has not received
from the Company in connection with such Delivery Failure or Notice Failure, as applicable (a “Buy-In”), then,
in addition to all other remedies available to the Holder, the Company shall, within two (2) Business Days after the Holder’s
request and in the Holder’s discretion, either (i) pay cash to the Holder in an amount equal to the Holder’s total
purchase price (including brokerage commissions and other out-of-pocket expenses, if any) for the shares of Common Stock so purchased
(including, without limitation, by any other Person in respect, or on behalf, of the Holder) (the “Buy-In Price”),
at which point the Company’s obligation to so issue and deliver such certificate (and to issue such shares of Common Stock)
or credit the balance account of such Holder or such Holder’s designee, as applicable, with DTC for the number of Warrant
Shares to which the Holder is entitled upon the Holder’s exercise hereunder (as the case may be) (and to issue such Warrant
Shares) shall terminate, or (ii) promptly honor its obligation to so issue and deliver to the Holder a certificate or certificates
representing such Warrant Shares or credit the balance account of such Holder or such Holder’s designee, as applicable, with
DTC for the number of Warrant Shares to which the Holder is entitled upon the Holder’s exercise hereunder (as the case may
be) and pay cash to the Holder in an amount equal to the excess (if any) of the Buy-In Price over the product of (A) such
number of Warrant Shares multiplied by (B) the lowest Closing Sale Price of the Common Stock on any Trading Day during the
period commencing on the date of the applicable Exercise Notice and ending on the date of such issuance and payment under this
clause (ii) (the “Buy-In Payment Amount”). Nothing shall limit the Holder’s right to pursue any other
remedies available to it hereunder, at law or in equity, including, without limitation, a decree of specific performance and/or
injunctive relief with respect to the Company’s failure to timely deliver certificates representing shares of Common Stock
(or to electronically deliver such shares of Common Stock) upon the exercise of this Warrant as required pursuant to the terms
hereof. While this Warrant is outstanding, the Company shall cause its transfer agent to participate in the DTC Fast Automated
Securities Transfer Program. In addition to the foregoing rights, (i) if the Company fails to deliver the applicable number
of Warrant Shares upon an exercise pursuant to Section 1 by the applicable Share Delivery Date, then the Holder shall have
the right to rescind such exercise in whole or in part and retain and/or have the Company return, as the case may be, any portion
of this Warrant that has not been exercised pursuant to such Exercise Notice; provided that the rescission of an exercise shall
not affect the Company’s obligation to make any payments that have accrued prior to the date of such notice pursuant to this
Section 1(c) or otherwise, and (ii) if a registration statement covering the issuance or resale of the Warrant Shares
that are subject to an Exercise Notice is not available for the issuance or resale, as applicable, of such Exercise Notice Warrant
Shares and the Holder has submitted an Exercise Notice prior to receiving notice of the non-availability of such registration statement
and the Company has not already delivered the Warrant Shares underlying such Exercise Notice electronically without any restrictive
legend by crediting such aggregate number of Warrant Shares to which the Holder is entitled pursuant to such exercise to the Holder’s
or its designee’s balance account with DTC through its Deposit / Withdrawal At Custodian system, the Holder shall have the
option, by delivery of notice to the Company, to (x) rescind such Exercise Notice in whole or in part and retain or have returned,
as the case may be, any portion of this Warrant that has not been exercised pursuant to such Exercise Notice; provided that the
rescission of an Exercise Notice shall not affect the Company’s obligation to make any payments that have accrued prior to
the date of such notice pursuant to this Section 1(c). or otherwise, and/or (y) switch some or all of such Exercise Notice
from a cash exercise to a Cashless Exercise.

 

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(d) 
Cashless Exercise. Notwithstanding anything contained herein to the contrary (other than Section 1(f) below),
at any time after the six month anniversary of the Closing Date (as defined in the Asset Purchase Agreement), if at the time of
exercise hereof a Registration Statement (as defined in the Registration Rights Agreement is not effective (or the prospectus
contained therein is not available for use) for the resale by the Holder of all of the Warrant Shares, then the Holder may, in
its sole discretion, exercise this Warrant in whole or in part and, in lieu of making the cash payment otherwise contemplated
to be made to the Company upon such exercise in payment of the Aggregate Exercise Price, elect instead to receive upon such exercise
the “Net Number” of Warrant Shares determined according to the following formula (a “Cashless Exercise”):

 

	 	Net Number =  	(A x B) – (A x C)	 
	 	D	 

  

For purposes of the
foregoing formula:

 

A = the total number of shares
with respect to which this Warrant is then being exercised.

 

B = the quotient of (x) the
sum of the VWAP of the Common Stock of each of the five (5) Trading Days ending at the close of business on the Principal
Market immediately prior to the time of exercise as set forth in the applicable Exercise Notice, divided by (y) five (5)
(the “Cashless Measuring Period”).

 

C = the Exercise Price then in
effect for the applicable Warrant Shares at the time of such exercise.

 

D = as applicable: (i) the
Closing Sale Price of the Common Stock on the Trading Day immediately preceding the date of the applicable Exercise Notice if such
Exercise Notice is (1) both executed and delivered pursuant to Section 1(a) hereof on a day that is not a Trading Day
or (2) both executed and delivered pursuant to Section 1(a) hereof on a Trading Day prior to the opening of “regular
trading hours” (as defined in Rule 600(b)(64) of Regulation NMS promulgated under the federal securities laws) on such Trading
Day, (ii) the Bid Price of the Common Stock as of the time of the Holder’s execution of the applicable Exercise Notice
if such Exercise Notice is executed during “regular trading hours” on a Trading Day and is delivered within two (2) hours
thereafter pursuant to Section 1(a) hereof, or (iii) the Closing Sale Price of the Common Stock on the date of the applicable
Exercise Notice if the date of such Exercise Notice is a Trading Day and such Exercise Notice is both executed and delivered pursuant
to Section 1(a) hereof after the close of “regular trading hours” on such Trading Day.

 

For purposes of Rule
144(d), as in effect on the Subscription Date, it is intended that the Warrant Shares issued in a Cashless Exercise shall be deemed
to have been acquired by the Holder, and the holding period for the Warrant Shares shall be deemed to have commenced, on the date
this Warrant was originally issued pursuant to the Asset Purchase Agreement.

 

(e) 
Disputes. In the case of a dispute as to the determination of the Exercise Price or the arithmetic calculation of
the number of Warrant Shares to be issued pursuant to the terms hereof, the Company shall promptly issue to the Holder the number
of Warrant Shares that are not disputed and resolve such dispute in accordance with Section 13.

 

    	 	4	 

     

    

 

(f)  
Limitations on Exercises.

 

(i)  
Beneficial Ownership. The Company shall not effect the exercise of any portion of this Warrant, and the Holder shall
not have the right to exercise any portion of this Warrant, pursuant to the terms and conditions of this Warrant and any such exercise
shall be null and void and treated as if never made, to the extent that after giving effect to such exercise, the Holder together
with the other Attribution Parties collectively would beneficially own in excess of 9.99% (the “Maximum Percentage”)
of the shares of Common Stock outstanding immediately after giving effect to such exercise. For purposes of the foregoing sentence,
the aggregate number of shares of Common Stock beneficially owned by the Holder and the other Attribution Parties shall include
the number of shares of Common Stock held by the Holder and all other Attribution Parties plus the number of shares of Common Stock
issuable upon exercise of this Warrant with respect to which the determination of such sentence is being made, but shall exclude
shares of Common Stock which would be issuable upon (A) exercise of the remaining, unexercised portion of this Warrant beneficially
owned by the Holder or any of the other Attribution Parties and (B) exercise or conversion of the unexercised or unconverted
portion of any other securities of the Company (including, without limitation, any convertible notes or convertible preferred stock
or warrants, including other Buyer Warrants) beneficially owned by the Holder or any other Attribution Party subject to a limitation
on conversion or exercise analogous to the limitation contained in this Section 1(f)(i). For purposes of this Section 1(f)(i),
beneficial ownership shall be calculated in accordance with Section 13(d) of the 1934 Act. For purposes of determining the
number of outstanding shares of Common Stock the Holder may acquire upon the exercise of this Warrant without exceeding the Maximum
Percentage, the Holder may rely on the number of outstanding shares of Common Stock as reflected in (x) the Company’s
most recent Annual Report on Form 10-K, Quarterly Report on Form 10-Q, Current Report on Form 8-K or other public filing with
the SEC, as the case may be, (y) a more recent public announcement by the Company or (z) any other written notice by
the Company or the Transfer Agent, if any, setting forth the number of shares of Common Stock outstanding (the “Reported
Outstanding Share Number”). If the Company receives an Exercise Notice from the Holder at a time when the actual number
of outstanding shares of Common Stock is less than the Reported Outstanding Share Number, the Company shall (i) notify the
Holder in writing of the number of shares of Common Stock then outstanding and, to the extent that such Exercise Notice would otherwise
cause the Holder’s beneficial ownership, as determined pursuant to this Section 1(f)(i), to exceed the Maximum Percentage,
the Holder must notify the Company of a reduced number of Warrant Shares to be acquired pursuant to such Exercise Notice (the number
of shares by which such purchase is reduced, the “Reduction Shares”) and (ii) as soon as reasonably practicable,
the Company shall return to the Holder any exercise price paid by the Holder for the Reduction Shares. For any reason at any time,
upon the written or oral request of the Holder, the Company shall within one (1) Business Day confirm orally and in writing
or by electronic mail to the Holder the number of shares of Common Stock then outstanding. In any case, the number of outstanding
shares of Common Stock shall be determined after giving effect to the conversion or exercise of securities of the Company, including
this Warrant, by the Holder and any other Attribution Party since the date as of which the Reported Outstanding Share Number was
reported. In the event that the issuance of shares of Common Stock to the Holder upon exercise of this Warrant results in the Holder
and the other Attribution Parties being deemed to beneficially own, in the aggregate, more than the Maximum Percentage of the number
of outstanding shares of Common Stock (as determined under Section 13(d) of the 1934 Act), the number of shares so issued
by which the Holder’s and the other Attribution Parties’ aggregate beneficial ownership exceeds the Maximum Percentage
(the “Excess Shares”) shall be deemed null and void and shall be cancelled ab initio, and the Holder shall not
have the power to vote or to transfer the Excess Shares. As soon as reasonably practicable after the issuance of the Excess Shares
has been deemed null and void, the Company shall return to the Holder the exercise price paid by the Holder for the Excess Shares.
Upon delivery of a written notice to the Company, the Holder may from time to time increase (with such increase not effective until
the sixty-first (61st) day after delivery of such notice) or decrease the Maximum Percentage to any other percentage not in excess
of 9.99% as specified in such notice; provided that (i) any such increase in the Maximum Percentage will not be effective
until the sixty-first (61st) day after such notice is delivered to the Company and (ii) any such increase or decrease will
apply only to the Holder and the other Attribution Parties and not to any other holder of Buyer Warrants that is not an Attribution
Party of the Holder. For purposes of clarity, the shares of Common Stock issuable pursuant to the terms of this Warrant in excess
of the Maximum Percentage shall not be deemed to be beneficially owned by the Holder for any purpose including for purposes of
Section 13(d) or Rule 16a-1(a)(1) of the 1934 Act. No prior inability to exercise this Warrant pursuant to this paragraph
shall have any effect on the applicability of the provisions of this paragraph with respect to any subsequent determination of
exercisability. The provisions of this paragraph shall be construed and implemented in a manner otherwise than in strict conformity
with the terms of this Section 1(f)(i) to the extent necessary to correct this paragraph or any portion of this paragraph
which may be defective or inconsistent with the intended beneficial ownership limitation contained in this Section 1(f)(i)
or to make changes or supplements necessary or desirable to properly give effect to such limitation. The limitation contained in
this paragraph may not be waived and shall apply to a successor holder of this Warrant.

 

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(g) 
Reservation of Shares.

 

(i)  
Required Reserve Amount. So long as this Warrant remains outstanding, the Company shall at all times keep reserved
for issuance under this Warrant a number of shares of Common Stock at least equal to 100% of the maximum number of shares of Common
Stock as shall be necessary to satisfy the Company’s obligation to issue shares of Common Stock under the Buyer Warrants
then outstanding (without regard to any limitations on exercise) (the “Required Reserve Amount”); provided that
at no time shall the number of shares of Common Stock reserved pursuant to this Section 1(g)(i) be reduced other than proportionally
in connection with any exercise or redemption of Buyer Warrants or such other event covered by Section 2(a) below. The Required
Reserve Amount (including, without limitation, each increase in the number of shares so reserved) shall be allocated pro rata among
the holders of the Buyer Warrants based on number of shares of Common Stock issuable upon exercise of Buyer Warrants held by each
holder on the Closing Date (without regard to any limitations on exercise) or increase in the number of reserved shares, as the
case may be (the “Authorized Share Allocation”). In the event that a holder shall sell or otherwise transfer
any of such holder’s Buyer Warrants, each transferee shall be allocated a pro rata portion of such holder’s Authorized
Share Allocation. Any shares of Common Stock reserved and allocated to any Person which ceases to hold any Buyer Warrants shall
be allocated to the remaining holders of Buyer Warrants, pro rata based on the number of shares of Common Stock issuable upon exercise
of the Buyer Warrants then held by such holders (without regard to any limitations on exercise).

 

(ii) 
Insufficient Authorized Shares. If, notwithstanding Section 1(g)(i) above, and not in limitation thereof, at
any time while any of the Buyer Warrants remain outstanding, the Company does not have a sufficient number of authorized and unreserved
shares of Common Stock to satisfy its obligation to reserve the Required Reserve Amount (an “Authorized Share Failure”),
then the Company shall immediately take all action necessary to increase the Company’s authorized shares of Common Stock
to an amount sufficient to allow the Company to reserve the Required Reserve Amount for all the Buyer Warrants then outstanding.
Without limiting the generality of the foregoing sentence, as soon as practicable after the date of the occurrence of an Authorized
Share Failure, but in no event later than sixty (60) days after the occurrence of such Authorized Share Failure, the Company
shall hold a meeting of its stockholders for the approval of an increase in the number of authorized shares of Common Stock. In
connection with such meeting, the Company shall provide each stockholder with a proxy statement and shall use its best efforts
to solicit its stockholders’ approval of such increase in authorized shares of Common Stock and to cause its board of directors
to recommend to the stockholders that they approve such proposal. In the event that the Company is prohibited from issuing shares
of Common Stock upon an exercise of this Warrant due to the failure by the Company to have sufficient shares of Common Stock available
out of the authorized but unissued shares of Common Stock (such unavailable number of shares of Common Stock, the “Authorization
Failure Shares”), in lieu of delivering such Authorization Failure Shares to the Holder, the Company shall pay cash in
exchange for the cancellation of such portion of this Warrant exercisable into such Authorization Failure Shares at a price equal
to the sum of (i) the product of (x) such number of Authorization Failure Shares and (y) the greatest Closing Sale
Price of the Common Stock on any Trading Day during the period commencing on the date the Holder delivers the applicable Exercise
Notice with respect to such Authorization Failure Shares to the Company and ending on the date of such issuance and payment under
this Section 1(g); and (ii) to the extent the Holder purchases (in an open market transaction or otherwise) shares of
Common Stock to deliver in satisfaction of a sale by the Holder of Authorization Failure Shares, any Buy-In Payment Amount, brokerage
commissions and other out-of-pocket expenses, if any, of the Holder incurred in connection therewith. Nothing contained in this
Section 1(g) shall limit any obligations of the Company under any provision of the Asset Purchase Agreement.

 

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2. 
ADJUSTMENT OF EXERCISE PRICE AND NUMBER OF WARRANT SHARES. The Exercise Price and number of Warrant Shares issuable
upon exercise of this Warrant are subject to adjustment from time to time as set forth in this Section 2.

 

(a) 
Stock Dividends and Splits. Without limiting any provision of Section 4, if the Company, at any time
on or after the Subscription Date, (i) pays a stock dividend on one or more classes of its then outstanding shares of Common
Stock or otherwise makes a distribution on any class of capital stock that is payable in shares of Common Stock, (ii) subdivides
(by any stock split, stock dividend, recapitalization or otherwise) one or more classes of its then outstanding shares of Common
Stock into a larger number of shares or (iii) combines (by combination, reverse stock split or otherwise) one or more classes
of its then outstanding shares of Common Stock into a smaller number of shares, then in each such case the Exercise Price shall
be multiplied by a fraction of which the numerator shall be the number of shares of Common Stock outstanding immediately before
such event and of which the denominator shall be the number of shares of Common Stock outstanding immediately after such event.
Any adjustment made pursuant to clause (i) of this paragraph shall become effective immediately after the record date for
the determination of stockholders entitled to receive such dividend or distribution, and any adjustment pursuant to clause (ii)
or (iii) of this paragraph shall become effective immediately after the effective date of such subdivision or combination. If any
event requiring an adjustment under this paragraph occurs during the period that an Exercise Price is calculated hereunder, then
the calculation of such Exercise Price shall be adjusted appropriately to reflect such event.

 

(b) 
Number of Warrant Shares. Simultaneously with any adjustment to the Exercise Price pursuant to this Section 2,
the number of Warrant Shares that may be purchased upon exercise of this Warrant shall be increased or decreased proportionately,
so that after such adjustment the aggregate Exercise Price payable hereunder for the adjusted number of Warrant Shares shall be
the same as the aggregate Exercise Price in effect immediately prior to such adjustment (without regard to any limitations on exercise
contained herein).

 

(c) 
Calculations. All calculations under this Section 2 shall be made by rounding to the nearest cent or the nearest
1/100th of a share, as applicable. The number of shares of Common Stock outstanding at any given time shall not include
shares owned or held by or for the account of the Company, and the disposition of any such shares shall be considered an issuance
or sale of Common Stock.

 

(d) 
Voluntary Adjustment By Company. The Company may at any time during the term of this Warrant, with the prior written
consent of the Required Holders, reduce the then current Exercise Price to any amount and for any period of time deemed appropriate
by the board of directors of the Company.

 

3. 
RIGHTS UPON DISTRIBUTION OF ASSETS. In addition to any adjustments pursuant to Section 2 above, if the Company
shall declare or make any dividend or other distribution of its assets (or rights to acquire its assets) to holders of shares of
Common Stock, by way of return of capital or otherwise (including, without limitation, any distribution of cash, stock or other
securities, property, options, evidence of indebtedness or any other assets by way of a dividend, spin off, reclassification, corporate
rearrangement, scheme of arrangement or other similar transaction) (a “Distribution”), at any time after the
issuance of this Warrant, then, in each such case, the Company shall provide prior written notice of a Distribution to the Holder
no later than 10 days prior to the fixing of a record date for determination of stockholders entitled to receive such Distribution.

 

4. 
PURCHASE RIGHTS; FUNDAMENTAL TRANSACTIONS.

 

(a) 
Purchase Rights. In addition to any adjustments pursuant to Section 2 above, if at any time the Company grants,
issues or sells any Options, Convertible Securities or rights to purchase stock, warrants, securities or other property pro rata
to the record holders of any class of Common Stock (the “Purchase Rights”), then the Holder will be entitled
to acquire, upon the terms applicable to such Purchase Rights, the aggregate Purchase Rights which the Holder could have acquired
if the Holder had held the number of shares of Common Stock acquirable upon complete exercise of this Warrant (without regard to
any limitations or restrictions on exercise of this Warrant, including without limitation, the Maximum Percentage) immediately
before the date on which a record is taken for the grant, issuance or sale of such Purchase Rights, or, if no such record is taken,
the date as of which the record holders of shares of Common Stock are to be determined for the grant, issuance or sale of such
Purchase Rights (provided, however, that to the extent that the Holder’s right to participate in any such Purchase
Right would result in the Holder and the other Attribution Parties exceeding the Maximum Percentage, then the Holder shall not
be entitled to participate in such Purchase Right to the extent of the Maximum Percentage (and shall not be entitled to beneficial
ownership of such shares of Common Stock as a result of such Purchase Right (and beneficial ownership) to the extent of any such
excess) and such Purchase Right to such extent shall be held in abeyance for the benefit of the Holder until such time or times,
if ever, as its right thereto would not result in the Holder and the other Attribution Parties exceeding the Maximum Percentage,
at which time or times the Holder shall be granted such right (and any Purchase Right granted, issued or sold on such initial Purchase
Right or on any subsequent Purchase Right held similarly in abeyance) to the same extent as if there had been no such limitation).

 

    	 	7	 

     

    

 

(b) 
Fundamental Transactions. The Company shall not enter into or be party to a Fundamental Transaction unless (i) the
Successor Entity assumes in writing all of the obligations of the Company under this Warrant and the other Transaction Documents
(as defined in the Asset Purchase Agreement) in accordance with the provisions of this Section 4(b) pursuant to written agreements
in form and substance satisfactory to the Holder and approved by the Holder prior to such Fundamental Transaction, including agreements
to deliver to the Holder in exchange for this Warrant a security of the Successor Entity evidenced by a written instrument substantially
similar in form and substance to this Warrant, including, without limitation, which is exercisable for a corresponding number of
shares of capital stock equivalent to the shares of Common Stock acquirable and receivable upon exercise of this Warrant (without
regard to any limitations on the exercise of this Warrant) prior to such Fundamental Transaction, and with an exercise price which
applies the exercise price hereunder to such shares of capital stock (but taking into account the relative value of the shares
of Common Stock pursuant to such Fundamental Transaction and the value of such shares of capital stock, such adjustments to the
number of shares of capital stock and such exercise price being for the purpose of protecting the economic value of this Warrant
immediately prior to the consummation of such Fundamental Transaction) and (ii) the Successor Entity (including its Parent
Entity) is a publicly traded corporation whose common stock is quoted on or listed for trading on an Eligible Market. Upon the
consummation of each Fundamental Transaction, the Successor Entity shall succeed to, and be substituted for (so that from and after
the date of the applicable Fundamental Transaction, the provisions of this Warrant and the other Transaction Documents referring
to the “Company” shall refer instead to the Successor Entity), and may exercise every right and power of the Company
and shall assume all of the obligations of the Company under this Warrant and the other Transaction Documents with the same effect
as if such Successor Entity had been named as the Company herein. Upon consummation of each Fundamental Transaction, the Successor
Entity shall deliver to the Holder confirmation that there shall be issued upon exercise of this Warrant at any time after the
consummation of the applicable Fundamental Transaction, in lieu of the shares of Common Stock (or other securities, cash, assets
or other property (except such items still issuable under Sections 3 and 4(a) above, which shall continue to be receivable
thereafter)) issuable upon the exercise of this Warrant prior to the applicable Fundamental Transaction, such shares of publicly
traded common stock (or its equivalent) of the Successor Entity (including its Parent Entity) which the Holder would have been
entitled to receive upon the happening of the applicable Fundamental Transaction had this Warrant been exercised immediately prior
to the applicable Fundamental Transaction (without regard to any limitations on the exercise of this Warrant), as adjusted in accordance
with the provisions of this Warrant. Notwithstanding the foregoing, and without limiting Section 1(f) hereof, the Holder may
elect, at its sole option, by delivery of written notice to the Company to waive this Section 4(b) to permit the Fundamental
Transaction without the assumption of this Warrant. In addition to and not in substitution for any other rights hereunder, prior
to the consummation of each Fundamental Transaction pursuant to which holders of shares of Common Stock are entitled to receive
securities or other assets with respect to or in exchange for shares of Common Stock (a “Corporate Event”),
the Company shall make appropriate provision to insure that the Holder will thereafter have the right to receive upon an exercise
of this Warrant at any time after the consummation of the applicable Fundamental Transaction but prior to the Expiration Date,
in lieu of the shares of the Common Stock (or other securities, cash, assets or other property (except such items still issuable
under Sections 3 and 4(a) above, which shall continue to be receivable thereafter)) issuable upon the exercise of the Warrant
prior to such Fundamental Transaction, such shares of stock, securities, cash, assets or any other property whatsoever (including
warrants or other purchase or subscription rights) which the Holder would have been entitled to receive upon the happening of the
applicable Fundamental Transaction had this Warrant been exercised immediately prior to the applicable Fundamental Transaction
(without regard to any limitations on the exercise of this Warrant). Provision made pursuant to the preceding sentence shall be
in a form and substance reasonably satisfactory to the Holder.

 

(c) 
Application. The provisions of this Section 4 shall apply similarly and equally to successive Fundamental Transactions
and Corporate Events and shall be applied as if this Warrant (and any such subsequent warrants) were fully exercisable and without
regard to any limitations on the exercise of this Warrant (provided that the Holder shall continue to be entitled to the benefit
of the Maximum Percentage, applied however with respect to shares of capital stock registered under the 1934 Act and thereafter
receivable upon exercise of this Warrant (or any such other warrant)).

 

    	 	8	 

     

    

 

5. 
NONCIRCUMVENTION. The Company hereby covenants and agrees that the Company will not, by amendment of its certificate
of incorporation, bylaws or through any reorganization, transfer of assets, consolidation, merger, scheme of arrangement, dissolution,
issuance or sale of securities, or any other voluntary action, avoid or seek to avoid the observance or performance of any of the
terms of this Warrant, and will at all times in good faith carry out all the provisions of this Warrant and take all action as
may be required to protect the rights of the Holder. Without limiting the generality of the foregoing, the Company (a) shall
not increase the par value of any shares of Common Stock receivable upon the exercise of this Warrant above the Exercise Price
then in effect, and (b) shall take all such actions as may be necessary or appropriate in order that the Company may validly
and legally issue fully paid and non-assessable shares of Common Stock upon the exercise of this Warrant. Notwithstanding anything
herein to the contrary, if after the sixty (60) calendar day anniversary of the Issuance Date, the Holder is not permitted
to exercise this Warrant in full for any reason (other than pursuant to restrictions set forth in Section 1(f) hereof), the
Company shall use its best efforts to promptly remedy such failure, including, without limitation, obtaining such consents or approvals
as necessary to permit such exercise into shares of Common Stock.

 

6. 
WARRANT HOLDER NOT DEEMED A STOCKHOLDER. Except as otherwise specifically provided herein, the Holder, solely in
its capacity as a holder of this Warrant, shall not be entitled to vote or receive dividends or be deemed the holder of share capital
of the Company for any purpose, nor shall anything contained in this Warrant be construed to confer upon the Holder, solely in
its capacity as the Holder of this Warrant, any of the rights of a stockholder of the Company or any right to vote, give or withhold
consent to any corporate action (whether any reorganization, issue of stock, reclassification of stock, consolidation, merger,
conveyance or otherwise), receive notice of meetings, receive dividends or subscription rights, or otherwise, prior to the issuance
to the Holder of the Warrant Shares which it is then entitled to receive upon the due exercise of this Warrant. In addition, nothing
contained in this Warrant shall be construed as imposing any liabilities on the Holder to purchase any securities (upon exercise
of this Warrant or otherwise) or as a stockholder of the Company, whether such liabilities are asserted by the Company or by creditors
of the Company. Notwithstanding this Section 6, the Company shall provide the Holder with copies of the same notices and other
information given to the stockholders of the Company generally, contemporaneously with the giving thereof to the stockholders.

 

7. 
REISSUANCE OF WARRANTS.

 

(a) 
Transfer of Warrant. If this Warrant is to be transferred, the Holder shall surrender this Warrant to the Company,
whereupon the Company will forthwith issue and deliver upon the order of the Holder a new Warrant (in accordance with Section 7(d)),
registered as the Holder may request, representing the right to purchase the number of Warrant Shares being transferred by the
Holder and, if less than the total number of Warrant Shares then underlying this Warrant is being transferred, a new Warrant (in
accordance with Section 7(d)) to the Holder representing the right to purchase the number of Warrant Shares not being transferred.

 

(b) 
Lost, Stolen or Mutilated Warrant. Upon receipt by the Company of evidence reasonably satisfactory to the Company
of the loss, theft, destruction or mutilation of this Warrant (as to which a written certification and the indemnification contemplated
below shall suffice as such evidence), and, in the case of loss, theft or destruction, of any indemnification undertaking by the
Holder to the Company in customary and reasonable form and, in the case of mutilation, upon surrender and cancellation of this
Warrant, the Company shall execute and deliver to the Holder a new Warrant (in accordance with Section 7(d)) representing
the right to purchase the Warrant Shares then underlying this Warrant.

 

(c) 
Exchangeable for Multiple Warrants. This Warrant is exchangeable, upon the surrender hereof by the Holder at the
principal office of the Company, for a new Warrant or Warrants (in accordance with Section 7(d)) representing in the aggregate
the right to purchase the number of Warrant Shares then underlying this Warrant, and each such new Warrant will represent the right
to purchase such portion of such Warrant Shares as is designated by the Holder at the time of such surrender; provided, however,
no warrants for fractional shares of Common Stock shall be given.

 

    	 	9	 

     

    

 

(d) 
Issuance of New Warrants. Whenever the Company is required to issue a new Warrant pursuant to the terms of this Warrant,
such new Warrant (i) shall be of like tenor with this Warrant, (ii) shall represent, as indicated on the face of such
new Warrant, the right to purchase the Warrant Shares then underlying this Warrant (or in the case of a new Warrant being issued
pursuant to Section 7(a) or Section 7(c), the Warrant Shares designated by the Holder which, when added to the number
of shares of Common Stock underlying the other new Warrants issued in connection with such issuance, does not exceed the number
of Warrant Shares then underlying this Warrant), (iii) shall have an issuance date, as indicated on the face of such new Warrant
which is the same as the Issuance Date, and (iv) shall have the same rights and conditions as this Warrant.

 

8. 
NOTICES. Whenever notice is required to be given under this Warrant, unless otherwise provided herein, such notice
shall be given in accordance with Section 9.1 of the Asset Purchase Agreement. The Company shall provide the Holder with prompt
written notice of all actions taken pursuant to this Warrant (other than the issuance of shares of Common Stock upon exercise in
accordance with the terms hereof), including in reasonable detail a description of such action and the reason therefor. Without
limiting the generality of the foregoing, the Company will give written notice to the Holder (i) immediately upon each adjustment
of the Exercise Price and the number of Warrant Shares, setting forth in reasonable detail, and certifying, the calculation of
such adjustment(s), (ii) at least fifteen (15) days prior to the date on which the Company closes its books or takes
a record (A) with respect to any dividend or distribution upon the shares of Common Stock, (B) with respect to any grants,
issuances or sales of any Options, Convertible Securities or rights to purchase stock, warrants, securities or other property to
holders of shares of Common Stock or (C) for determining rights to vote with respect to any Fundamental Transaction, dissolution
or liquidation, provided in each case that such information shall be made known to the public prior to or in conjunction with such
notice being provided to the Holder, and (iii) at least ten (10) Trading Days prior to the consummation of any Fundamental
Transaction.

 

9. 
AMENDMENT AND WAIVER. Except as otherwise provided herein, the provisions of this Warrant (other than Section 1(f))
may be amended and the Company may take any action herein prohibited, or omit to perform any act herein required to be performed
by it, only if the Company has obtained the written consent of the Holder or Holders of at least 51% of the Warrant Shares
underlying any then outstanding Buyer Warrants, provided that if Oath Inc. is then a holder of Buyer Warrants, such consent shall
include the consent of Oath Inc. No waiver shall be effective unless it is in writing and signed by an authorized representative
of the waiving party.

 

10. 
SEVERABILITY. If any provision of this Warrant is prohibited by law or otherwise determined to be invalid or unenforceable
by a court of competent jurisdiction, the provision that would otherwise be prohibited, invalid or unenforceable shall be deemed
amended to apply to the broadest extent that it would be valid and enforceable, and the invalidity or unenforceability of such
provision shall not affect the validity of the remaining provisions of this Warrant so long as this Warrant as so modified continues
to express, without material change, the original intentions of the parties as to the subject matter hereof and the prohibited
nature, invalidity or unenforceability of the provision(s) in question does not substantially impair the respective expectations
or reciprocal obligations of the parties or the practical realization of the benefits that would otherwise be conferred upon the
parties. The parties will endeavor in good faith negotiations to replace the prohibited, invalid or unenforceable provision(s)
with a valid provision(s), the effect of which comes as close as possible to that of the prohibited, invalid or unenforceable provision(s).

 

11. 
GOVERNING LAW. This Warrant shall be governed by and construed and enforced in accordance with, and all questions
concerning the construction, validity, interpretation and performance of this Warrant shall be governed by, the internal laws of
the State of New York, without giving effect to any choice of law or conflict of law provision or rule (whether of the State of
New York or any other jurisdictions) that would cause the application of the laws of any jurisdictions other than the State of
New York. The Company hereby irrevocably waives personal service of process and consents to process being served in any such suit,
action or proceeding by mailing a copy thereof to the Company at the address set forth in Section 9.1 of the Asset Purchase
Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof. The Company
hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in The City of New York, Borough
of Manhattan, for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby
or discussed herein, and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that
it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is brought in an inconvenient
forum or that the venue of such suit, action or proceeding is improper. Nothing contained herein shall be deemed to limit in any
way any right to serve process in any manner permitted by law. Nothing contained herein shall be deemed or operate to preclude
the Holder from bringing suit or taking other legal action against the Company in any other jurisdiction to collect on the Company’s
obligations to the Holder, to realize on any collateral or any other security for such obligations, or to enforce a judgment or
other court ruling in favor of the Holder. TO THE EXTENT PERMITTED BY APPLICABLE LAW, THE COMPANY HEREBY IRREVOCABLY WAIVES
ANY RIGHT IT MAY HAVE TO, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION
WITH OR ARISING OUT OF THIS WARRANT OR ANY TRANSACTION CONTEMPLATED HEREBY.

 

    	 	10	 

     

    

 

12. 
CONSTRUCTION; HEADINGS. This Warrant shall be deemed to be jointly drafted by the Company and the Holder and shall
not be construed against any Person as the drafter hereof. The headings of this Warrant are for convenience of reference and shall
not form part of, or affect the interpretation of, this Warrant. Terms used in this Warrant but defined in the other Transaction
Documents shall have the meanings ascribed to such terms on the Closing Date (as defined in the Asset Purchase Agreement) in such
other Transaction Documents unless otherwise consented to in writing by the Holder.

 

13. 
DISPUTE RESOLUTION.

 

(a) 
Submission to Dispute Resolution.

 

(i) In
the case of a dispute relating to the Exercise Price, the Closing Sale Price, the Bid Price, or fair market value or the
arithmetic calculation of the number of Warrant Shares (as the case may be) (including, without limitation, a dispute
relating to the determination of any of the foregoing), the Company or the Holder (as the case may be) shall submit the
dispute to the other party via facsimile (A) if by the Company, within two (2) Business Days after the occurrence
of the circumstances giving rise to such dispute or (B) if by the Holder, at any time after the Holder learned of the
circumstances giving rise to such dispute. If the Holder and the Company are unable to promptly resolve such dispute relating
to such Exercise Price, such Closing Sale Price, such Bid Price, such fair market value or such arithmetic calculation of the
number of Warrant Shares (as the case may be), at any time after the second (2nd) Business Day following such initial notice
by the Company or the Holder (as the case may be) of such dispute to the Company or the Holder (as the case may be), then the
Holder may, at its sole option, select an independent, reputable investment bank to resolve such dispute.

 

(ii)
The Holder and the Company shall each deliver to such investment bank (A) a copy of the initial dispute submission so
delivered in accordance with the first sentence of this Section 13 and (B) written documentation supporting its
position with respect to such dispute, in each case, no later than 5:00 p.m. (New York time) by the fifth
(5th) Business Day immediately following the date on which the Holder selected such investment bank (the
“Dispute Submission Deadline”) (the documents referred to in the immediately preceding clauses (A)
and (B) are collectively referred to herein as the “Required Dispute Documentation”) (it being understood
and agreed that if either the Holder or the Company fails to so deliver all of the Required Dispute Documentation by the
Dispute Submission Deadline, then the party who fails to so submit all of the Required Dispute Documentation shall no longer
be entitled to (and hereby waives its right to) deliver or submit any written documentation or other support to such
investment bank with respect to such dispute and such investment bank shall resolve such dispute based solely on the Required
Dispute Documentation that was delivered to such investment bank prior to the Dispute Submission Deadline). Unless otherwise
agreed to in writing by both the Company and the Holder or otherwise requested by such investment bank, neither the Company
nor the Holder shall be entitled to deliver or submit any written documentation or other support to such investment bank in
connection with such dispute (other than the Required Dispute Documentation).

 

(iii)
The Company and the Holder shall cause such investment bank to determine the resolution of such dispute and notify the
Company and the Holder of such resolution no later than ten (10) Business Days immediately following the Dispute
Submission Deadline. The fees and expenses of such investment bank shall be borne solely by the Company, and such investment
bank’s resolution of such dispute shall be final and binding upon all parties absent manifest error.

 

    	 	11	 

     

    

 

(b) 
Miscellaneous. The Company expressly acknowledges and agrees that this Section 13 constitutes an agreement to
arbitrate between the Company and the Holder (and constitutes an arbitration agreement) under the rules then in effect under §
7501, et seq. of the New York Civil Practice Law and Rules (“CPLR”) and that the Holder is authorized to apply
for an order to compel arbitration pursuant to CPLR § 7503(a) in order to compel compliance with this Section 13. Each
of the Holder and the Company shall have the right to submit any dispute described in this Section 13 to any state or federal court
sitting in The City of New York, Borough of Manhattan in lieu of utilizing the procedures set forth in this Section 13 and nothing
in this Section 13 shall limit the Holder or the Company from obtaining any injunctive relief or other equitable remedies (including,
without limitation, with respect to any matters described in this Section 13).

 

14. 
REMEDIES, CHARACTERIZATION, OTHER OBLIGATIONS, BREACHES AND INJUNCTIVE RELIEF. The remedies provided in this Warrant
shall be cumulative and in addition to all other remedies available under this Warrant and the other Transaction Documents, at
law or in equity (including a decree of specific performance and/or other injunctive relief), and nothing herein shall limit the
right of the Holder to pursue actual and consequential damages for any failure by the Company to comply with the terms of this
Warrant. The Company covenants to the Holder that there shall be no characterization concerning this instrument other than as expressly
provided herein. Amounts set forth or provided for herein with respect to payments, exercises and the like (and the computation
thereof) shall be the amounts to be received by the Holder and shall not, except as expressly provided herein, be subject to any
other obligation of the Company (or the performance thereof). The Company acknowledges that a breach by it of its obligations hereunder
will cause irreparable harm to the Holder and that the remedy at law for any such breach may be inadequate. The Company therefore
agrees that, in the event of any such breach or threatened breach, the holder of this Warrant shall be entitled, in addition to
all other available remedies, to specific performance and/or temporary, preliminary and permanent injunctive or other equitable
relief from any court of competent jurisdiction in any such case without the necessity of proving actual damages and without posting
a bond or other security. The Company shall provide all information and documentation to the Holder that is requested by the Holder
to enable the Holder to confirm the Company’s compliance with the terms and conditions of this Warrant (including, without
limitation, compliance with Section 2 hereof). The issuance of shares and certificates for shares as contemplated hereby upon
the exercise of this Warrant shall be made without charge to the Holder or such shares for any issuance tax or other costs in respect
thereof, provided that the Company shall not be required to pay any tax which may be payable in respect of any transfer involved
in the issuance and delivery of any certificate in a name other than the Holder or its agent on its behalf.

 

15. 
PAYMENT OF COLLECTION, ENFORCEMENT AND OTHER COSTS. If (a) this Warrant is placed in the hands of an attorney
for collection or enforcement or is collected or enforced through any legal proceeding or the holder otherwise takes action to
collect amounts due under this Warrant or to enforce the provisions of this Warrant or (b) there occurs any bankruptcy, reorganization,
receivership of the company or other proceedings affecting company creditors’ rights and involving a claim under this Warrant,
then the Company shall pay the costs incurred by the Holder for such collection, enforcement or action or in connection with such
bankruptcy, reorganization, receivership or other proceeding, including, without limitation, attorneys’ fees and disbursements.

 

16. 
TRANSFER. Subject to compliance with applicable federal and state securities laws and the transfer restrictions set
forth in that certain Lock-up Agreement dated as of April 4, 2018 (the “Lock-up Agreement”), by and between the Company
and Oath Inc., this Warrant and all rights hereunder may be transferred, in whole or in part, without charge to the Holder hereof
(except for transfer taxes) upon surrender of this Warrant properly endorsed and in compliance with the provisions of this Agreement.

 

17. 
CERTAIN DEFINITIONS. For purposes of this Warrant, the following terms shall have the following meanings:

 

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

 

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

 

    	 	12	 

     

    

 

(c) 
 “Affiliate” means, with respect to any Person, any other Person that directly or indirectly controls,
is controlled by, or is under common control with, such Person, it being understood for purposes of this definition that “control”
of a Person means the power directly or indirectly either to vote 10% or more of the stock having ordinary voting power for
the election of directors of such Person or direct or cause the direction of the management and policies of such Person whether
by contract or otherwise.

 

(d) 
“Attribution Parties” means, collectively, the following Persons and entities: (i) any investment
vehicle, including, any funds, feeder funds or managed accounts, currently, or from time to time after the Issuance Date, directly
or indirectly managed or advised by the Holder’s investment manager or any of its Affiliates or principals, (ii) any
direct or indirect Affiliates of the Holder or any of the foregoing, (iii) any Person acting or who could be deemed to be
acting as a Group together with the Holder or any of the foregoing and (iv) any other Persons whose beneficial ownership of
the Company’s Common Stock would or could be aggregated with the Holder’s and the other Attribution Parties for purposes
of Section 13(d) of the 1934 Act. For clarity, the purpose of the foregoing is to subject collectively the Holder and all
other Attribution Parties to the Maximum Percentage.

 

(e) 
“Bid Price” means, for any security as of the particular time of determination, the bid price for such
security on the Principal Market as reported by Bloomberg as of such time of determination, or, if the Principal Market is not
the principal securities exchange or trading market for such security, the bid price of such security on the principal securities
exchange or trading market where such security is listed or traded as reported by Bloomberg as of such time of determination, or
if the foregoing does not apply, the bid price of such security in the over-the-counter market on the electronic bulletin board
for such security as reported by Bloomberg as of such time of determination, or, if no bid price is reported for such security
by Bloomberg as of such time of determination, the average of the bid prices of any market makers for such security as reported
in the “pink sheets” by OTC Markets Group Inc. (formerly Pink Sheets LLC) as of such time of determination. If the
Bid Price cannot be calculated for a security as of the particular time of determination on any of the foregoing bases, the Bid
Price of such security as of such time of determination shall be the fair market value as mutually determined by the Company and
the Holder. If the Company and the Holder are unable to agree upon the fair market value of such security, then such dispute shall
be resolved in accordance with the procedures in Section 13. All such determinations shall be appropriately adjusted for any
stock dividend, stock split, stock combination or other similar transaction during such period.

 

(f)  
“Bloomberg” means Bloomberg, L.P.

 

(g) 
“Business Day” means any day other than Saturday, Sunday or other day on which commercial banks in The
City of New York are authorized or required by law to remain closed.

 

(h) 
“Closing Sale Price” means, for any security as of any date, the last closing trade price for such security
on the Principal Market, as reported by Bloomberg, or, if the Principal Market begins to operate on an extended hours basis and
does not designate the closing trade price, then the last trade price of such security prior to 4:00:00 p.m., New York time,
as reported by Bloomberg, or, if the Principal Market is not the principal securities exchange or trading market for such security,
the last trade price of such security on the principal securities exchange or trading market where such security is listed or traded
as reported by Bloomberg, or if the foregoing does not apply, the last trade price of such security in the over-the-counter market
on the electronic bulletin board for such security as reported by Bloomberg, or, if no last trade price is reported for such security
by Bloomberg, the average of the ask prices of any market makers for such security as reported in the “pink sheets”
by OTC Markets Group Inc. (formerly Pink Sheets LLC). If the Closing Sale Price cannot be calculated for a security on a particular
date on any of the foregoing bases, the Closing Sale Price of such security on such date shall be the fair market value as mutually
determined by the Company and the Holder. If the Company and the Holder are unable to agree upon the fair market value of such
security, then such dispute shall be resolved in accordance with the procedures in Section 13. All such determinations shall
be appropriately adjusted for any stock dividend, stock split, stock combination or other similar transaction during such period.

 

(i)  
“Common Stock” means (i) the Company’s shares of common stock, $0.0001 par value per share,
and (ii) any capital stock into which such common stock shall have been changed or any share capital resulting from a reclassification
of such common stock.

 

    	 	13	 

     

    

 

(j)  
“Convertible Securities” means any stock or other security (other than Options) that is at any time and
under any circumstances, directly or indirectly, convertible into, exercisable or exchangeable for, or which otherwise entitles
the holder thereof to acquire, any shares of Common Stock.

 

(k) 
“Current Information Failure” means (a) the failure to satisfy the current public information requirement
under Rule 144(c) or (B) if the Company has ever been an issuer described in Rule 144(i)(1)(i) or becomes such an issuer in the
future, and the Company shall fail to satisfy any condition set forth in Rule 144(i)(2).

 

(l)  
“Eligible Market” means The New York Stock Exchange, the NYSE American, the Nasdaq Global Select Market,
the Nasdaq Global Market, the OTCQB or the Principal Market.

 

(m)
“Equity Conditions” means, with respect to a given date of determination: (i) on each day during the
period beginning thirty calendar days prior to such applicable date of determination and ending on and including such
applicable date of determination one or more Registration Statements filed pursuant to the Registration Rights Agreement
shall be effective and the prospectus contained therein shall be available on such applicable date of determination (with,
for the avoidance of doubt, any shares of Common Stock previously sold pursuant to such prospectus deemed unavailable) for
the resale of all shares of Common Stock to be issued in connection with the event requiring this determination (each, a
“Required Minimum Securities Amount”), in each case, in accordance with the terms of the Registration
Rights Agreement and there shall not have been during such period any Grace Period (as defined in the Registration Rights
Agreement) and no Current Information Failure (as defined in the Registration Rights Agreement) exists or is continuing;
(ii) on each day during the period beginning thirty calendar days prior to the applicable date of determination and
ending on and including the applicable date of determination (the “Equity Conditions Measuring Period”),
the Common Stock (including all Registrable Securities) is listed or designated for quotation (as applicable) on an Eligible
Market and shall not have been suspended from trading on an Eligible Market (other than suspensions of not more than two
(2) days and occurring prior to the applicable date of determination due to business announcements by the Company) nor
shall delisting or suspension by an Eligible Market have been threatened (with a reasonable prospect of delisting occurring
after giving effect to all applicable notice, appeal, compliance and hearing periods) or reasonably likely to occur or
pending as evidenced by (A) a writing by such Eligible Market or (B) the Company falling below the minimum
listing maintenance requirements of the Eligible Market on which the Common Stock is then listed or designated for quotation
(as applicable); (iii) during the Equity Conditions Measuring Period, the Company shall have delivered all shares of
Common Stock issuable upon exercise of this Warrant and conversion of the Notes on a timely basis as required by the terms
thereof and all other shares of capital stock required to be delivered by the Company on a timely basis as set forth in the
other Transaction Documents; (iv) any shares of Common Stock to be issued in connection with the event requiring
determination may be issued in full without violating Section 1(f) hereof; (v) any shares of Common Stock to be
issued in connection with the event requiring determination may be issued in full without violating the rules or regulations
of the Eligible Market on which the Common Stock is then listed or designated for quotation (as applicable); (vi) on
each day during the Equity Conditions Measuring Period, no public announcement of a pending, proposed or intended Fundamental
Transaction shall have occurred which has not been abandoned, terminated or consummated; (vii) the Company shall have no
knowledge of any fact that would reasonably be expected to cause any Registration Statement required to be filed pursuant to
the Registration Rights Agreement to not be effective or the prospectus contained therein to not be available for the resale
of the applicable Required Minimum Securities Amount of Registrable Securities in accordance with the terms of the
Registration Rights Agreement; (viii) the Holder shall not be in (and no other holder of Buyer Warrants shall be in)
possession of any material, non-public information provided to any of them by the Company, any of its subsidiaries or any of
their respective affiliates, employees, officers, representatives, agents or the like; (ix) on each day during the
Equity Conditions Measuring Period, the Company otherwise shall have been in compliance with each, and shall not have
breached any representation or warranty in any material respect (other than representations or warranties subject to material
adverse effect or materiality, which may not be breached in any respect) or any covenant or other term or condition of any
Transaction Document, including, without limitation, the Company shall not have failed to timely make any payment pursuant to
any Transaction Document; (x) on the applicable date of determination (A) no Authorized Share Failure shall exist
or be continuing and the applicable Required Minimum Securities Amount of shares of Common Stock are available under the
certificate of incorporation of the Company and reserved by the Company to be issued pursuant to the Notes and (B) all
shares of Common Stock to be issued in connection with the event requiring this determination may be issued in full without
resulting in an Authorized Share Failure; and (xi) the shares of Common Stock issuable pursuant to the event requiring
the satisfaction of the Equity Conditions are duly authorized and listed and eligible for trading without restriction on an
Eligible Market.

 

    	 	14	 

     

    

 

(n) 
“Equity Conditions Failure” means, with respect to a particular date of determination, that on
any day during the period commencing twenty (20) Trading Days immediately prior to such date of determination, the Equity
Conditions have not been satisfied (or waived in writing by the Holder).

 

(o) 
“Expiration Date” means the date that is the fifth (5th) anniversary of the Issuance Date or, if
such date falls on a day other than a Trading Day or on which trading does not take place on the Principal Market (a “Holiday”),
the next date that is not a Holiday.

 

(p) 
“Fundamental Transaction” means (A) that the Company shall, directly or indirectly, including through
subsidiaries, Affiliates or otherwise, in one or more related transactions, (i) consolidate or merge with or into (whether
or not the Company is the surviving corporation) another Subject Entity, or (ii) sell, assign, transfer, convey or otherwise
dispose of all or substantially all of the properties or assets of the Company or any of its “significant subsidiaries”
(as defined in Rule 1-02 of Regulation S-X) to one or more Subject Entities, or (iii) make, or allow one or more
Subject Entities to make, or allow the Company to be subject to or have its Common Stock be subject to or party to one or more
Subject Entities making, a purchase, tender or exchange offer that is accepted by the holders of at least either (x) 50% of
the outstanding shares of Common Stock, (y) 50% of the outstanding shares of Common Stock calculated as if any shares of Common
Stock held by all Subject Entities making or party to, or Affiliated with any Subject Entities making or party to, such purchase,
tender or exchange offer were not outstanding; or (z) such number of shares of Common Stock such that all Subject Entities
making or party to, or Affiliated with any Subject Entity making or party to, such purchase, tender or exchange offer, become collectively
the beneficial owners (as defined in Rule 13d-3 under the 1934 Act) of at least 50% of the outstanding shares of Common
Stock, or (iv) consummate a stock or share purchase agreement or other business combination (including, without limitation,
a reorganization, recapitalization, spin-off or scheme of arrangement) with one or more Subject Entities whereby all such Subject
Entities, individually or in the aggregate, acquire, either (x) at least 50% of the outstanding shares of Common Stock,
(y) at least 50% of the outstanding shares of Common Stock calculated as if any shares of Common Stock held by all the
Subject Entities making or party to, or Affiliated with any Subject Entity making or party to, such stock purchase agreement or
other business combination were not outstanding; or (z) such number of shares of Common Stock such that the Subject Entities
become collectively the beneficial owners (as defined in Rule 13d-3 under the 1934 Act) of at least 50% of the outstanding
shares of Common Stock, or (v) reorganize, recapitalize or reclassify its Common Stock, (B) that the Company shall, directly
or indirectly, including through subsidiaries, Affiliates or otherwise, in one or more related transactions, allow any Subject
Entity individually or the Subject Entities in the aggregate to be or become the “beneficial owner” (as defined in
Rule 13d-3 under the 1934 Act), directly or indirectly, whether through acquisition, purchase, assignment, conveyance, tender,
tender offer, exchange, reduction in outstanding shares of Common Stock, merger, consolidation, business combination, reorganization,
recapitalization, spin-off, scheme of arrangement, reorganization, recapitalization or reclassification or otherwise in any manner
whatsoever, of either (x) at least 50% of the aggregate ordinary voting power represented by issued and outstanding Common
Stock, (y) at least 50% of the aggregate ordinary voting power represented by issued and outstanding Common Stock not
held by all such Subject Entities as of the date of this Warrant calculated as if any shares of Common Stock held by all such Subject
Entities were not outstanding, or (z) a percentage of the aggregate ordinary voting power represented by issued and outstanding
shares of Common Stock or other equity securities of the Company sufficient to allow such Subject Entities to effect a statutory
short form merger or other transaction requiring other shareholders of the Company to surrender their shares of Common Stock without
approval of the shareholders of the Company or (C) directly or indirectly, including through subsidiaries, Affiliates or otherwise,
in one or more related transactions, the issuance of or the entering into any other instrument or transaction structured in a manner
to circumvent, or that circumvents, the intent of this definition in which case this definition shall be construed and implemented
in a manner otherwise than in strict conformity with the terms of this definition to the extent necessary to correct this definition
or any portion of this definition which may be defective or inconsistent with the intended treatment of such instrument or transaction.
Notwithstanding anything herein to the contrary, a merger or other business combination between the Company and MoviePass Inc.,
a Delaware corporation, shall not be deemed to be, either individually or in the aggregate, a Fundamental Transaction.

 

    	 	15	 

     

    

 

(q) 
“Group” means a “group” as that term is used in Section 13(d) of the 1934 Act and as
defined in Rule 13d-5 thereunder.

 

(r)  
“Maximum Forced Exercise Amount” means, as of any given date, the lesser of (x) subject to
Section 1(f)(i), the number of Warrant Shares issuable upon exercise of this Warrant as of such given date and (y) 100%
of the average trading volume (as reported on Bloomberg) of the Common Stock on the Principal Market on each of the ten (10) consecutive
Trading Days ending and including the Trading Day immediately prior to such given date.

 

(s) 
“Options” means any rights, warrants or options to subscribe for or purchase shares of Common Stock or
Convertible Securities.

 

(t)  
“Parent Entity” of a Person means an entity that, directly or indirectly, controls the applicable Person
and whose common stock or equivalent equity security is quoted or listed on an Eligible Market, or, if there is more than one such
Person or Parent Entity, the Person or Parent Entity with the largest public market capitalization as of the date of consummation
of the Fundamental Transaction.

 

(u) 
“Person” means an individual, a limited liability company, a partnership, a joint venture, a corporation,
a trust, an unincorporated organization, any other entity or a government or any department or agency thereof.

 

(v) 
“Principal Market” means the Nasdaq Capital Market.

 

(w)
“Registration Rights Agreement” means that certain registration rights agreement, dated as of the Closing
Date, by and between the Company and Oath Inc. relating to, among other things, the registration of the resale of the Closing
Shares and Warrant Shares, as may be amended from time to time.

 

(x) 
“Required Holders” means the holder or holders of a majority of the Registrable Securities as of such
time (excluding any Registrable Securities held by the Company or any of its subsidiaries as of such time) issued or issuable hereunder
or pursuant to the Warrants; provided, that such holders of Registrable Securities must include Oath Inc. so long as Oath Inc.
beneficially owns any of the Registrable Securities (on an as-exercised basis without regard to any limitations on exercise thereof).

 

(y) 
“Rule 144” means Rule 144 (or any successor thereto) promulgated under the 1933 Act.

 

(z) 
“SEC” means the United States Securities and Exchange Commission or the successor thereto.

 

(aa)
“Subject Entity” means any Person, Persons or Group or any Affiliate or associate of any such Person,
Persons or Group.

 

(bb)
“Successor Entity” means the Person (or, if so elected by the Holder, the Parent Entity) formed by,
resulting from or surviving any Fundamental Transaction or the Person (or, if so elected by the Holder, the Parent Entity)
with which such Fundamental Transaction shall have been entered into.

 

(cc)
“Trading Day” means, as applicable, (x) with respect to all price or trading volume determinations
relating to the Common Stock, any day on which the Common Stock is traded on the Principal Market, or, if the Principal
Market is not the principal trading market for the Common Stock, then on the principal securities exchange or securities
market on which the Common Stock is then traded, provided that “Trading Day” shall not include any day on which
the Common Stock is scheduled to trade on such exchange or market for less than 4.5 hours or any day that the Common
Stock is suspended from trading during the final hour of trading on such exchange or market (or if such exchange or market
does not designate in advance the closing time of trading on such exchange or market, then during the hour ending at
4:00:00 p.m., New York time) unless such day is otherwise designated as a Trading Day in writing by the Holder or
(y) with respect to all determinations other than price or trading volume determinations relating to the Common Stock,
any day on which The New York Stock Exchange (or any successor thereto) is open for trading of securities.

 

    	 	16	 

     

    

 

(dd)
“VWAP” means, for any security as of any date, the dollar volume-weighted average price for such security
on the Principal Market (or, if the Principal Market is not the principal trading market for such security, then on the
principal securities exchange or securities market on which such security is then traded) during the period beginning at
9:30:01 a.m., New York time, and ending at 4:00:00 p.m., New York time, as reported by Bloomberg through its
“HP” function (set to weighted average) or, if the foregoing does not apply, the dollar volume-weighted average
price of such security in the over-the-counter market on the electronic bulletin board for such security during the period
beginning at 9:30:01 a.m., New York time, and ending at 4:00:00 p.m., New York time, as reported by Bloomberg, or,
if no dollar volume-weighted average price is reported for such security by Bloomberg for such hours, the average of the
highest closing bid price and the lowest closing ask price of any of the market makers for such security as reported in the
“pink sheets” by OTC Markets Group Inc. (formerly Pink Sheets LLC). If the VWAP cannot be calculated for such
security on such date on any of the foregoing bases, the VWAP of such security on such date shall be the fair market value as
mutually determined by the Company and the Holder. If the Company and the Holder are unable to agree upon the fair market
value of such security, then such dispute shall be resolved in accordance with the procedures in Section 13. All such
determinations shall be appropriately adjusted for any stock dividend, stock split, stock combination, recapitalization or
other similar transaction during such period.

 

18. 
FORCED EXERCISE.

 

(a) 
General. If at any time after the date hereof (i) the VWAP of the Common Stock is equal to or greater than $16.50
(as adjusted for stock splits, stock combinations or other similar transaction) for a period of ten (10) consecutive Trading
Days ending on the Trading Day immediately prior to the applicable Forced Exercise Notice Date (as defined below)(each ten (10) consecutive
Trading Days on which the condition in this clause (i) is satisfied being referred to herein as a “Measuring Period”),
(ii) no Equity Conditions Failure shall have occurred or be continuing, and (iii) the aggregate trading volume (as reported
on Bloomberg) of the Common Stock on the applicable Eligible Market for each Trading Day during such Measuring Period exceeds 250,000
shares (as adjusted for stock splits, stock combinations or other similar transaction) per Trading Day in such Measuring Period
(collectively, the “Forced Exercise Conditions”, and each date in which all the Forced Exercise Conditions are
met, a “Forced Exercise Eligibility Date”), then the Company shall have the right, exercisable on a Forced Exercise
Eligibility Date, to require the Holder to exercise for cash all, or any part, of this Warrant (up to the Maximum Forced Exercise
Amount of Warrant Shares as of the applicable Forced Exercise Notice Date (as defined below)) in accordance with Section 1
hereof (excluding Section 1(d) hereof) (the “Forced Exercise”) at the Exercise Price in effect as of the
applicable Forced Exercise Date (as defined below).

 

(b) 
Mechanics. On any Forced Exercise Eligibility Date, the Company may exercise its right to require a Forced Exercise
by delivering a written notice thereof by facsimile and e-mail to the Holder (each, a “Forced Exercise Notice”
and the date the Holder receives any such notice by facsimile is referred to as a “Forced Exercise Notice Date”).
Except as set forth below, each Forced Exercise Notice shall be irrevocable. Each Forced Exercise Notice shall (i) state that
the Company is electing to effect a Forced Exercise, (ii) state the proposed date of such Forced Exercise (the “Forced
Exercise Date”), which shall be no less than five (5) Trading Days after such Forced Exercise Notice Date, no more
than ten (10) Trading Days after such Forced Exercise Notice Date and no less than ten (10) Trading Days after any prior
Forced Exercise Date, (iii) state the number of Warrant Shares to be exercised by the Holder on such Forced Exercise Date
(subject to any adjustments thereto pursuant to Section 2 that may occur prior to such Forced Exercise Date); provided, that
such number of Warrant Shares shall not exceed the Maximum Forced Exercise Amount as of such Forced Exercise Notice Date, and (iv) contain
a certification from an officer or director of the Company that the Forced Exercise Conditions shall have been satisfied as of
the Forced Exercise Notice Date. On the Forced Exercise Date, the mechanics of exercise set forth in Section 1 shall apply
(excluding Section 1(d) above), to the extent applicable, as if the Company had received from the Holder on the Forced Exercise
Date an Exercise Notice with respect to the number of Warrant Shares subject to the Forced Exercise as set forth in such Forced
Exercise Notice. If on any Trading Day during the period commencing on, and including, the applicable Forced Exercise Notice Date
through, and including, the applicable Forced Exercise Date either (i) the VWAP of the Common Stock fails to be equal to or
greater than $16.50 (as adjusted for stock splits, stock combinations or other similar transaction), (ii) an Equity Conditions
Failure occurs or is continuing, or (iii) the aggregate trading volume (as reported on Bloomberg) of the Common Stock on the
applicable Eligible Market fails to exceed 250,000 shares (as adjusted for stock splits, stock combinations or other similar transaction),
the Company shall deliver a written notice to the Holder of such failure and, unless such failure is waived by the Holder, such
Forced Exercise Notice shall be null and void and the Company shall not be permitted to effect such Forced Exercise hereunder.

 

(c) 
If the Company elects to cause a Forced Exercise of this Warrant pursuant to this Section 18, then it must simultaneously
take the same action in the same proportion with respect to all of the Buyer Warrants.

 

[signature page follows]

 

    	 	17	 

     

    

 

IN WITNESS WHEREOF,
the Company has caused this Warrant to Purchase Common Stock to be duly executed as of the Issuance Date set out above.

 

	 	HELIOS AND MATHESON ANALYTICS INC.
	 	 	 
	 	By:	/s/ Theodore Farnsworth
	 	 	Name: Theodore Farnsworth
	 	 	Title: Chief Executive Officer

 

    	 	18	 

     

    

 

EXHIBIT A

 

EXERCISE
NOTICE

 

TO BE EXECUTED
BY THE REGISTERED HOLDER TO EXERCISE THIS

WARRANT TO PURCHASE COMMON STOCK

 

HELIOS AND
MATHESON ANALYTICS INC.

 

The undersigned holder
hereby elects to exercise the Warrant to Purchase Common Stock No. _______ (the “Warrant”) of Helios and Matheson
Analytics Inc., a Delaware corporation (the “Company”) as specified below. Capitalized terms used herein and
not otherwise defined shall have the respective meanings set forth in the Warrant.

 

1. Form
of Exercise Price. The Holder intends that payment of the Aggregate Exercise Price shall be made as:

 

☐a “Cash
Exercise” with respect to _________________ Warrant Shares; and/or

 

☐a “Cashless
Exercise” with respect to _______________ Warrant Shares.

 

In the event that the
Holder has elected a Cashless Exercise with respect to some or all of the Warrant Shares to be issued pursuant hereto, the Holder
hereby represents and warrants that (i) this Exercise Notice was executed by the Holder at __________ [a.m.][p.m.] on the
date set forth below and (ii) if applicable, the Bid Price as of such time of execution of this Exercise Notice was $________.

 

2. Payment
of Exercise Price. In the event that the Holder has elected a Cash Exercise with respect to some or all of the Warrant Shares
to be issued pursuant hereto, the Holder shall pay the Aggregate Exercise Price in the sum of $___________________ to the Company
in accordance with the terms of the Warrant.

 

3. Delivery
of Warrant Shares. The Company shall deliver to Holder, or its designee or agent as specified below, __________ shares of Common
Stock in accordance with the terms of the Warrant. Delivery shall be made to Holder, or for its benefit, as follows:

 

☐Check here
if requesting delivery as a certificate to the following name and to the following address:

 

	Issued to:	
	 	 
	 	 

 

£Check
here if requesting delivery by Deposit/Withdrawal at Custodian as follows:

 

	DTC Participant:	
	 	 
	DTC Number:	
	 	 
	Account Number:	

 

	Date:  ____, ____	 
	 	 
	 	 
	
        Name of Registered Holder
	 

 

	By:	 	 
	 	Name:	 
	 	 	 
	 	Title:	 
	 	 	 
	 	Tax ID:__________________________	 
	 	 	 
	 	Facsimile:________________________	 
	 	 	 
	 	E-mail Address:___________________	 

 

    	 	19	 

     

    

 

EXHIBIT B

 

ACKNOWLEDGMENT

 

The Company hereby
acknowledges this Exercise Notice and hereby directs ______________ to issue the above indicated number of shares of Common Stock
in accordance with the Transfer Agent Instructions dated _________, 201_, from the Company and acknowledged and agreed to by _______________.

 

	 	HELIOS AND MATHESON ANALYTICS INC.
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

    	 	20Exhibit 10.5

 

EXECUTION COPY

 

HELIOS AND
MATHESON ANALYTICS INC.

 

$150,000,000

 

equity distribution
AGREEMENT

 

April 18, 2018

 

Canaccord Genuity LLC

99 High Street, Suite 1200

Boston, Massachusetts 02110

 

Ladies and Gentlemen:

 

Helios and Matheson
Analytics Inc., a Delaware corporation (the “Company”), confirms its agreement (this “Agreement”)
with Canaccord Genuity LLC (“Canaccord”), as of the date first written above, as follows:

 

1.
Issuance and Sale of Shares. The Company agrees that, from time to time during the term of this Agreement, on the
terms and subject to the conditions set forth herein, it will issue and sell through Canaccord, acting as sales agent, shares of
common stock, $0.01 par value per share (the “Common Shares”), of the Company (the “Shares”)
having an aggregate offering price of up to $150,000,000. The Shares will be sold on the terms set forth herein at such times and
in such amounts as the Company and Canaccord shall agree from time to time. The issuance and sale of the Shares through Canaccord
will be effected pursuant to the Registration Statement (as defined in Section 6(a)) filed by the Company and declared
effective by the United States Securities and Exchange Commission (the “Commission”).

 

2.
Placements.

 

		(a)	Placement Notice. Each time that the Company wishes to issue and sell Shares hereunder (each, a “Placement”),
it will notify Canaccord by e-mail notice (or other method mutually agreed to in writing by the parties) containing the parameters
within which it desires to sell the Shares, which shall at a minimum include the number of Shares (“Placement Shares”)
to be issued, the time period during which sales are requested to be made, any limitation on the number of Shares that may be sold
in any one Trading Day (as defined in Section 3) and any minimum price below which sales may not be made (a “Placement
Notice”), a form of which shall be mutually agreed upon by the Company and Canaccord. The Placement Notice shall originate
from any of the individuals (each an “Authorized Representative”) from the Company set forth on Schedule 1
(with a copy to each of the other individuals from the Company listed on such schedule), and shall be addressed to each of the
individuals from Canaccord set forth on Schedule 1 attached hereto, as such Schedule 1 may be amended from
time to time. The Placement Notice shall be effective upon confirmation by Canaccord unless and until (i) Canaccord declines
to accept the terms contained therein for any reason, in its sole discretion, in accordance with the notice requirements set forth
in Section 4, (ii) the entire amount of the Placement Shares have been sold, (iii) the Company suspends or
terminates the Placement Notice in accordance with the notice requirements set forth in Section 4, (iv) the Company
issues a subsequent Placement Notice with parameters superseding those on the earlier dated Placement Notice, or (v) the Agreement
has been terminated under the provisions of Section 12.

 

     

     

    

 

		(i)	Placement Fee. The amount of compensation to be paid by the Company to Canaccord with respect to each Placement (in
addition to any expense reimbursement pursuant to Section 7(i)(ii)) shall be equal to 5.0% of gross proceeds from each Placement.

 

		(ii)	No Obligation. It is expressly acknowledged and agreed that neither the Company nor Canaccord will have any obligation
whatsoever with respect to a Placement or any Placement Shares unless and until the Company delivers a Placement Notice to Canaccord,
and then only upon the terms specified therein and herein. It is also expressly acknowledged that Canaccord will be under no obligation
to purchase Shares on a principal basis. Unless otherwise provided herein, in the event of a conflict between the terms of this
Agreement and the terms of a Placement Notice, the terms of the Placement Notice control.

 

3.
Sale of Placement Shares by Canaccord. Subject to the terms and conditions of this Agreement, upon the Company’s
issuance of a Placement Notice, and unless the sale of the Placement Shares described therein has been declined, suspended, or
otherwise terminated in accordance with the terms of this Agreement, Canaccord will use its commercially reasonable efforts consistent
with its normal trading and sales practices to sell on behalf of the Company and as agent, such Placement Shares up to the amount
specified, and otherwise in accordance with the terms of such Placement Notice. The Company acknowledges that Canaccord will conduct
the sale of Placement Shares in compliance with applicable law, rules and regulations including, without limitation, Regulation
M under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and The NASDAQ Stock Market LLC
and that such compliance may include a delay in commencement of sales efforts after receipt of a Placement Notice. Canaccord will
provide written confirmation to the Company, as provided in Section 13, no later than the opening of the Trading Day (as
defined below) next following the Trading Day on which they have made sales of Placement Shares hereunder setting forth the number
of Placement Shares sold on such day, the compensation payable by the Company to Canaccord with respect to such sales, and the
Net Proceeds (as defined below) payable to the Company. Canaccord may sell Placement Shares by any method permitted by law deemed
to be an “at the market” offering under Rule 415 of the Securities Act of 1933, as amended (the “Securities
Act”), including without limitation sales made directly on the NASDAQ Capital Market, on any other existing trading market
for the Common Shares or to or through a market maker. Notwithstanding anything to the contrary set forth in this Agreement or
a Placement Notice, the Company acknowledges and agrees that (i) there can be no assurance that Canaccord will be successful
in selling any Placement Shares or as to the price at which any Placement Shares are sold, if at all, and (ii) Canaccord will
incur no liability or obligation to the Company or any other person or entity if they do not sell Placement Shares for any reason
other than a failure by Canaccord to use its commercially reasonable efforts consistent with its normal trading and sales practices
to sell on behalf of the Company and as agent such Placement Shares as provided under this Section 3. For the purposes
hereof, “Trading Day” means any day on which the NASDAQ Capital Market is open for trading.

 

    -2-

     

    

 

4.
Suspension of Sales.

 

		(a)	The Company or Canaccord may, upon notice to the other party in writing, by telephone (confirmed immediately by verifiable
facsimile transmission) or by e-mail notice (or other method mutually agreed to in writing by the parties), suspend any sale of
Placement Shares; provided, however, that such suspension shall not affect or impair either party’s obligations with respect
to any Placement Shares sold hereunder prior to the receipt of such notice. The Company agrees that no such notice shall be effective
against Canaccord unless it is made to one of the individuals named on Schedule 1 hereto, as such Schedule may
be amended from time to time.

 

		(b)	Notwithstanding any other provision of this Agreement, during any period in which the Company is in possession of material
non-public information, the Company and Canaccord (provided Canaccord has been given prior written notice of such by the Company,
which notice Canaccord agrees to treat confidentially) agree that no sale of Placement Shares will take place.

 

5.
Settlement.

 

		(a)	Settlement of Placement Shares. Unless otherwise specified in the applicable Placement Notice, settlement for sales
of Placement Shares will occur on the second (2nd) Business Day (or such earlier day as is agreed by the parties to be industry
practice for regular-way trading) following the date on which such sales are made (each a “Settlement Date”).
The amount of proceeds to be delivered to the Company on a Settlement Date against the receipt of the Placement Shares sold (“Net
Proceeds”) will be equal to the aggregate sales price at which such Placement Shares were sold, after deduction for (i) the
commission or other compensation for such sales payable by the Company to Canaccord, as the case may be, pursuant to Section 2
hereof, (ii) any other amounts due and payable by the Company to Canaccord hereunder pursuant to Section 7(i) hereof,
and (iii) any transaction fees imposed by any governmental or self-regulatory organization in respect of such sales.

 

    -3-

     

    

 

		(b)	Delivery of Shares. On each Settlement Date, the Company will, or will cause its transfer agent to, electronically transfer
the Placement Shares being sold by crediting Canaccord’s accounts or its designee’s account at The Depository Trust
Company through its Deposit Withdrawal Agent Commission System or by such other means of delivery as may be mutually agreed upon
by the parties hereto and, upon receipt of such Placement Shares, which in all cases shall be freely tradeable, transferable, registered
shares in good deliverable form, Canaccord will, on each Settlement Date, deliver the related Net Proceeds in same day funds delivered
to an account designated by the Company prior to the Settlement Date. If the Company defaults in its obligation to deliver Placement
Shares on a Settlement Date, the Company agrees that in addition to and in no way limiting the rights and obligations set forth
in Section 10 hereto, it will (i) hold Canaccord harmless against any loss, claim, damage, or expense (including
reasonable legal fees and expenses), as incurred, arising out of or in connection with such default by the Company and (ii) pay
to Canaccord any commission, discount, or other compensation to which it would otherwise have been entitled absent such default;
provided, however, that without limiting Section 10 herein, the Company shall not be obligated to pay Canaccord any commission,
discount or other compensation on any Placement Shares that it is not possible to settle due to: (i) a suspension or material limitation
in trading in securities generally on the NASDAQ Capital Market; or (ii) a material disruption in securities settlement or clearance
services in the United States.

 

6.
Representations and Warranties of the Company. The Company represents and warrants to, and agrees with, Canaccord
that:

 

		(a)	Registration Statement and Prospectus. The Common Shares are registered pursuant to Section 12(b) of the Exchange
Act, and the Company has filed all reports, schedules, forms, statements and other documents required to be filed by it with the
Commission (the “Commission Documents”) since the Company has been subject to the requirements of Section 12
of the Exchange Act, and all of such filings required to be filed within the last 12 months have been made on a timely basis. The
Common Shares are currently quoted on the NASDAQ Capital Market under the trading symbol “HMNY”. The Company and the
transactions contemplated hereby meet the requirements for use of Form S-3 under the Securities Act and the rules and regulations
thereunder (“Rules and Regulations”), including but not limited to the transaction requirements for an offering
made by the issuer set forth in Instruction I.B.1 to Form S-3. The Company has prepared and filed with the Commission a registration
statement on Form S-3 (File No. 333-222685) with respect to the Shares to be offered and sold by the Company pursuant to this Agreement.
Such registration statement, at any given time, including the amendments thereto at such time, the exhibits and any schedules thereto
at such time, the documents incorporated by reference therein pursuant to Item 12 of Form S-3 under the Securities Act at such
time and the documents otherwise deemed to be a part thereof or included therein by the rules and regulations under the Securities
Act, is herein called the “Registration Statement.” The Registration Statement, including the base prospectus
contained therein (the “Base Prospectus”) was prepared by the Company in conformity with the requirements of
the Securities Act and all applicable Rules and Regulations. One or more prospectus supplements (the “Prospectus Supplements,”
and together with the Base Prospectus and any amendment thereto and all documents incorporated therein by reference, the “Prospectus”)
have been or will be prepared by the Company in conformity with the requirements of the Securities Act and all applicable Rules
and Regulations and have been or will be filed with the Commission in the manner and time frame required by the Securities Act
and the Rules and Regulations. Any amendment or supplement to the Registration Statement or Prospectus required by this Agreement
will be so prepared and filed by the Company and, as applicable, the Company will use commercially reasonable efforts to cause
it to become effective as soon as reasonably practicable. No stop order suspending the effectiveness of the Registration Statement
has been issued, and no proceeding for that purpose has been instituted or, to the knowledge of the Company, threatened by the
Commission. No order preventing or suspending the use of the Base Prospectus, the Prospectus Supplement, the Prospectus or any
Issuer Free Writing Prospectus has been issued by the Commission. Copies of all filings made by the Company under the Securities
Act and all Commission Documents that were filed with the Commission have either been delivered to Canaccord or made available
to Canaccord on the Commission’s Electronic Data Gathering, Analysis, and Retrieval system (“EDGAR”).
Any reference herein to the Registration Statement, the Prospectus, or any amendment or supplement thereto shall be deemed to refer
to and include the documents incorporated (or deemed to be incorporated) by reference therein pursuant to Item 12 of Form S-3 under
the Securities Act, and any reference herein to the terms “amend,” “amendment” or “supplement”
with respect to the Registration Statement or Prospectus shall be deemed to refer to and include the filing after the execution
hereof of any document with the Commission deemed to be incorporated by reference therein. For the purposes of this Agreement,
the “Applicable Time” means, with respect to any Shares, the time of sale of such Shares pursuant to this Agreement.

 

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		(b)	No Misstatement or Omission. Each part of the Registration Statement, when such part becomes effective, at any deemed
effective date pursuant to Rule 430B(f)(2) on the date of filing thereof with the Commission and at each Applicable Time and
Settlement Date, and the Prospectus, on the date of filing thereof with the Commission and at each Applicable Time and Settlement
Date, conformed or will conform in all material respects with the requirements of the Securities Act and the Rules and Regulations;
each part of the Registration Statement, when such part becomes effective, did not or will not contain an untrue statement of a
material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading;
and the Prospectus, on the date of filing thereof with the Commission, and the Prospectus and the applicable Issuer Free Writing
Prospectus(es) issued at or prior to such Applicable Time, taken together (collectively, and with respect to any Shares, together
with the public offering price of such Shares, the “Disclosure Package”) and at each Applicable Time and Settlement
Date, did not or will not include an untrue statement of a material fact or omit to state a material fact necessary to make the
statements therein, in light of the circumstances under which they were made, not misleading; except that the foregoing shall not
apply to statements or omissions in any such document made in reliance on information furnished in writing to the Company by Canaccord
intended for use in the Registration Statement, the Prospectus, or any amendment or supplement thereto.

 

		(c)	Conformity with Securities Act and Exchange Act. The documents incorporated by reference in the Registration Statement
or the Prospectus, or any amendment or supplement thereto, when they became effective under the Securities Act or were filed with
the Commission under the Exchange Act, as the case may be, conformed in all material respects with the requirements of the Securities
Act or the Exchange Act, as applicable, and the rules and regulations of the Commission thereunder, and none of such documents
contained an 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 not misleading; and any further documents so filed and incorporated by reference in the Registration
Statement or the Prospectus or any further amendment or supplement thereto, when such documents become effective or are filed with
the Commission, as the case may be, will conform to the requirements of the Securities Act or the Exchange Act, as applicable,
and the rules and regulations of the Commission thereunder and will not contain an untrue statement of a material fact or omit
to state a material fact required to be stated therein or necessary to make the statements therein not misleading; provided however,
that this representation and warranty shall not apply to any statements or omissions (a) that have been corrected in a filing
that has been incorporated by reference in the Prospectus not less than 24 hours prior to the relevant Applicable Time or (b) made
in reliance on information furnished in writing to the Company by Canaccord intended for use in any such document.

 

		(d)	Financial Statements; Non-GAAP Financial Measures. The financial statements included in the Registration Statement,
the Disclosure Package and the Prospectus, together with the related schedules and notes, present fairly, in all material respects,
the financial position of the Company and its subsidiaries, at the dates indicated and its results of operations, stockholders’
equity and cash flows for the periods specified; said financial statements have been prepared in conformity with U.S. generally
accepted accounting principles (“GAAP”) applied on a consistent basis throughout the periods involved (except
for any preparation of non-GAAP measures). The supporting schedules, if any, present fairly in all material respects in accordance
with GAAP the information required to be stated therein. The pro forma financial information and the related notes thereto included
or incorporated by reference in each of the Registration Statement, the Disclosure Package and the Prospectus has been prepared
in accordance with the Commission’s rules and guidance with respect to pro forma financial information, and the assumptions
underlying such pro forma financial information are reasonable and are set forth in each of the Registration Statement, the Disclosure
Package and the Prospectus. Except as included therein, no other historical or pro forma financial statements or supporting schedules
are required to be included in the Registration Statement, the Disclosure Package or the Prospectus under the Securities Act or
the Rules and Regulations. All disclosures contained in the Registration Statement, the Disclosure
Package or the Prospectus regarding “non-GAAP financial measures” (as such term is defined by the rules and regulations
of the Commission) comply with Regulation G of the Exchange Act, and Item 10 of Regulation S-K of the Securities Act, to the extent
applicable.

 

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		(e)	Subsidiaries. Each of the Company’s subsidiaries has been duly organized and is validly existing as a corporation
or other entity in good standing under the laws of its jurisdiction of organization, with requisite power and authority to own
or lease its properties and conduct its business as described in the Registration Statement, the Disclosure Package and the Prospectus.
Each of the Company’s subsidiaries is duly qualified to transact business in all jurisdictions in which the conduct of its
business requires such qualification, except where the failure to be so qualified would not have a Material Adverse Effect. All
of the issued shares of capital stock or other ownership interest of each of the subsidiaries have been duly authorized and validly
issued, are fully paid and non-assessable and are owned directly or indirectly by the Company, free and clear of all liens, encumbrances,
equities or claims, except for such liens, encumbrances, equities or claims as would not, individually or in the aggregate, reasonably
be expected to have a Material Adverse Effect. The Company does not own or control, directly or indirectly, any corporation, association
or other entity other than the subsidiaries listed in Schedule 2 hereto (each, a “subsidiary,” and collectively,
the “subsidiaries”).

 

		(f)	No Material Adverse Change in Business. Except as otherwise stated therein, since the respective dates as of which information
is given in the Registration Statement, the Disclosure Package or the Prospectus, (A) there has been no material adverse change
in the condition, financial or otherwise, or in the earnings, business affairs or business prospects of the Company or any of its
subsidiaries, whether or not arising in the ordinary course of business (a “Material Adverse Effect”), (B) there
have been no transactions entered into by the Company or any of its subsidiaries, other than those in the ordinary course of business,
which are material to the Company, and (C) there has been no dividend or distribution of any kind declared, paid or made by
the Company or any of its subsidiaries on any class of its capital stock.

 

		(g)	Good Standing of the Company. The Company is a corporation duly organized, validly existing and in good standing under
the laws of the State of Delaware. The Company has requisite corporate power and authority to own, lease and operate its properties
and to conduct its business as described in the Registration Statement and the Prospectus and to enter into and perform its obligations
under this Agreement; and the Company is duly qualified as a foreign corporation to transact business and is in good standing in
each other jurisdiction in which such qualification is required, whether by reason of the ownership or leasing of property or the
conduct of business, except where the failure so to qualify or to be in good standing would not result in a Material Adverse Effect.

 

    -6-

     

    

 

		(h)	Absence of Violations, Defaults and Conflicts. The Company and each of its subsidiaries is not (A) in violation
of its charter or by-laws or other applicable governing documents, (B) in default in the performance or observance of any
obligation, agreement, covenant or condition contained in any contract, indenture, mortgage, deed of trust, loan or credit agreement,
note, lease or other agreement or instrument to which the Company or any of its subsidiaries is a party or by which it may be bound
or to which any of the properties or assets of the Company or any of its subsidiaries is subject (collectively, “Agreements
and Instruments”), except for such defaults that would not reasonably be expected to, singly or in the aggregate, result
in a Material Adverse Effect, or (C) in violation of any law, statute, rule, regulation, judgment, order, writ or decree of
any arbitrator, court, governmental body, regulatory body, administrative agency or other authority, body or agency having jurisdiction
over the Company, any of its subsidiaries or any of their respective properties, assets or operations (each, a “Governmental
Entity”), except for such violations that would not reasonably be expected to, singly or in the aggregate, result in
a Material Adverse Effect. The execution, delivery and performance of this Agreement and the consummation of the transactions contemplated
herein and in the Registration Statement, the Disclosure Package and the Prospectus (including the issuance and sale of the Securities
and the use of the proceeds from the sale of the Securities as described therein under the caption “Use of Proceeds”)
and compliance by the Company with its obligations hereunder have been duly authorized by all necessary corporate action and do
not and will not, whether with or without the giving of notice or passage of time or both, conflict with or constitute a breach
of, or default or Repayment Event (as defined below) under, or result in the creation or imposition of any lien, charge or encumbrance
upon any properties or assets of the Company or any of its subsidiaries pursuant to, the Agreements and Instruments (except for
such conflicts, breaches, defaults or Repayment Events or liens, charges or encumbrances that would not reasonably be expected
to, singly or in the aggregate, result in a Material Adverse Effect), nor will such action result in any violation of (i) the
provisions of the charter, by-laws or similar organization document of the Company or any of its subsidiaries or (ii) any
law, statute, rule, regulation, judgment, order, writ or decree of any Governmental Entity, except with respect to clause (ii),
such violations as would not reasonably be expected to, singly or in the aggregate, result in a Material Adverse Effect. As used
herein, a “Repayment Event” means any event or condition which gives the holder of any note, debenture or other
evidence of indebtedness (or any person acting on such holder’s behalf) the right to require the repurchase, redemption or
repayment of all or a portion of such indebtedness by the Company or any of its subsidiaries.

 

		(i)	Foreign Corrupt Practices Act. Neither the Company, any of its subsidiaries nor, to the knowledge of the Company, any
director, officer, agent, employee, affiliate or other person acting on behalf of the Company has taken any action, directly or
indirectly, that would result in a violation by such persons of the Foreign Corrupt Practices Act of 1977, as amended, and the
rules and regulations thereunder (the “FCPA”), including, without limitation, making use of the mails or any
means or instrumentality of interstate commerce corruptly in furtherance of an offer, payment, promise to pay or authorization
of the payment of any money, or other property, gift, promise to give, or authorization of the giving of anything of value to any
“foreign official” (as such term is defined in the FCPA) or any foreign political party or official thereof or any
candidate for foreign political office, in contravention of the FCPA and the Company, its subsidiaries and, to the knowledge of
the Company, its and their respective affiliates have conducted their businesses in compliance with the FCPA and have instituted
and maintain policies and procedures designed to ensure, and which are reasonably expected to continue to ensure, continued compliance
therewith.

 

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		(j)	Investment Company Act. Neither the Company nor the subsidiaries, is now or, after giving effect to the offering and
sale of the Shares, will be required to register as an “investment company” or an entity “controlled” by
an “investment company,” as such terms are defined in the Investment Company Act of 1940, as amended (the “Investment
Company Act”).

 

		(k)	Capitalization. The Company has an authorized capitalization as set forth in the Registration Statement, the Disclosure
Package and the Prospectus as of the date or dates set forth therein. The outstanding shares of capital stock of the Company have
been duly authorized and validly issued and are fully paid and non-assessable. Except as described in or expressly contemplated
by the Registration Statement, the Disclosure Package and the Prospectus, there are no outstanding rights (including, without limitation,
pre-emptive rights), warrants or options to acquire, or instruments convertible into or exchangeable for, any shares of capital
stock or other equity interest in the Company, or any contract, commitment, agreement, understanding or arrangement of any kind
relating to the issuance of any capital stock of the Company, any such convertible or exchangeable securities or any such rights,
warrants or options.

 

		(l)	The Shares. The Shares have been duly authorized and, when issued, delivered and paid for pursuant to this Agreement,
will be validly issued, fully paid and non-assessable, free and clear of all Encumbrances and will be issued in compliance with
all applicable United States federal and state and all other applicable foreign securities laws; the capital shares of the Company,
including the Common Shares, conform in all material respects to the description thereof contained in the Registration Statement
and the Common Shares, including the Placement Shares, will conform to the description thereof contained in the Prospectus as amended
or supplemented. Neither the shareholders of the Company, nor any other person or entity have any preemptive rights or rights of
first refusal with respect to the Placement Shares or other rights to purchase or receive any of the Placement Shares or any other
securities or assets of the Company, and no person has the right, contractual or otherwise, to cause the Company to issue to it,
or register pursuant to the Securities Act, shares or other securities or assets of the Company upon the issuance or sale of the
Placement Shares.

 

		(m)	Absence of Labor Dispute. No labor dispute with the employees of the Company or any of its subsidiaries exists or, to
the knowledge of the Company, is imminent, and the Company has no knowledge of any existing or imminent labor dispute by the employees
of any of its principal suppliers, manufacturers, customers or contractors.

 

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		(n)	Absence of Proceedings. Except as disclosed in the Registration Statement, the Disclosure Package and the Prospectus,
there is no action, suit, proceeding, inquiry or investigation before or brought by any Governmental Entity now pending or, to
the knowledge of the Company, threatened against the Company or any of its subsidiaries, which would reasonably be expected to,
singly or in the aggregate, result in a Material Adverse Effect, or which would reasonably be expected to, singly or in the aggregate,
materially and adversely affect the consummation of the transactions contemplated in this Agreement or the performance by the Company
of its obligations hereunder.

 

		(o)	Authorization; Enforceability.

 

		(i)	The Company has all requisite corporate power and authority to execute and deliver this Agreement and to perform its obligations
hereunder, to provide the representations, warranties and indemnities under this Agreement and all necessary action has been duly
and validly taken by the Company to authorize the execution, delivery and performance of this Agreement. This Agreement has been
duly and validly authorized, executed and delivered by the Company and constitutes the legal, valid and binding obligation of the
Company.

 

		(ii)	Executing and delivering this Agreement and the issuance and sale of the Shares and the compliance by the Company with all
of the provisions of this Agreement and the consummation of the transactions contemplated herein will not result in (i) a
breach or violation of any of the terms and provisions of, or constitute a default under, any obligation, agreement, covenant or
condition contained in any material indenture, mortgage, deed of trust, loan or credit agreement or other agreement or instrument
to which the Company or its subsidiaries is a party or by which either of them is bound or to which any of the property of the
Company or its subsidiaries is subject, (ii) a violation of the Company’s charter, articles of incorporation or bylaws,
or any statute or any order, rule or regulation of any court or governmental agency or body having jurisdiction over the Company
or its subsidiaries or any of their properties, (iii) the creation of any material Encumbrance upon any assets of the Company
or its subsidiaries or the triggering, solely as a result of the Company’s execution and delivery of this Agreement, of any
preemptive or anti-dilution rights or rights of first refusal or first offer, or any similar rights (whether pursuant to a “poison
pill” provision or otherwise), on the part of holders of the Company’s securities or any other person, or (iv) to the
Company’s knowledge, result in the violation of any law or statute or any judgment, order, rule or regulation of any court
or arbitrator or governmental or regulatory authority having jurisdiction over the Company or its subsidiaries or any of their
properties. Neither the Company nor its subsidiaries or affiliates, nor any person acting on its or their behalf, has issued or
sold any Common Shares or securities or instruments convertible into, exchangeable for and/or otherwise entitling the holder thereof
to acquire Common Shares which would be integrated with the offer and sale of the Shares hereunder for purposes of NASDAQ Rule
5635.

 

		(p)	Enforceability of Agreements. All agreements between the Company and third parties expressly referenced in the Prospectus
are legal, valid and binding obligations of the Company enforceable in accordance with their respective terms, except to the extent
that (i) enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws affecting creditors’
rights generally and by general equitable principles and (ii) the indemnification provisions of certain agreements may be
limited by federal or state securities laws or public policy considerations in respect thereof and except for any unenforceability
that, individually or in the aggregate, would not unreasonably be expected to have a Material Adverse Effect.

 

		(q)	Possession of Licenses and Permits. The Company and each of its subsidiaries possesses such permits, licenses, certificates,
approvals, clearances, consents and other authorizations (collectively, “Governmental Licenses”) issued by the
appropriate Governmental Entities necessary to conduct the business now operated by them, except where the failure so to possess
would not reasonably be expected to, singly or in the aggregate, result in a Material Adverse Effect. The Company and each of its
subsidiaries is in compliance with the terms and conditions of all Governmental Licenses and, to the Company’s knowledge,
no event has occurred which allows, or after notice or lapse of time would allow, revocation or termination thereof or result in
any other material impairment of the rights of the holder of any Government License, except where the failure so to comply would
not reasonably be expected to, singly or in the aggregate, result in a Material Adverse Effect. All of the Governmental Licenses
are valid and in full force and effect. Neither the Company nor any of its subsidiaries (a) has received notice of any ongoing
claim, action, suit, proceeding, hearing, enforcement, investigation, arbitration or other action from any U.S. or non-U.S. Governmental
Entity or third party alleging that any product, operation or activity is in violation of any Governmental Licenses and has no
knowledge that any such Governmental Entity or third party is considering any such claim, litigation, arbitration, action, suit,
investigation or proceeding; (b) has received notice that any Governmental Entity has taken, is taking or intends to take regulatory
action, and has no knowledge that any Governmental Entity is considering such action; and (c) is a party to any corporate integrity
agreement, deferred prosecution agreement, monitoring agreement, consent decree, settlement order, or similar agreements, or has
any reporting obligations pursuant to any such agreement, plan or correction or other remedial measure entered into with any Governmental
Entity.

 

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		(r)	Title to Property. The Company and each of its subsidiaries has good and marketable title to all real property owned
by it and good title or valid leases to all personal property owned by it, in each case, free and clear of all mortgages, pledges,
liens, security interests, claims, restrictions or encumbrances (except for customary easements and rights of way) of any kind
except such as (A) are described in the Registration Statement, the Disclosure Package and the Prospectus or (B) do not,
singly or in the aggregate, materially affect the value of such property and do not materially interfere with the use made and
proposed to be made of such property by the Company and its subsidiaries; and all of the leases and subleases material to the business
of the Company and that of its subsidiaries and under which the Company or any of its subsidiaries holds properties described in
the Registration Statement, the Disclosure Package or the Prospectus, are in full force and effect, and neither the Company nor
any of its subsidiaries has received any written notice of any material claim of any sort that has been asserted by anyone adverse
to the rights of the Company or any of its subsidiaries under any of the leases or subleases mentioned above, or affecting or questioning
the rights of the Company or any of its subsidiaries to the continued possession of the leased or subleased premises under any
such lease or sublease

 

		(s)	Insurance. The Company carries or is entitled to the benefits of insurance, with reputable insurers, in such amounts
and covering such risks as is reasonably prudent and customary in the businesses in which it is engaged, and all such insurance
is in full force and effect. The Company has no reason to believe that it will not be able (A) to renew its existing insurance
coverage as and when such policies expire or (B) to obtain comparable coverage from similar institutions as may be necessary
or appropriate to conduct its business as now conducted and at a cost that would not result in a Material Adverse Effect. The Company
has not been denied the issuance of any material insurance policies which it has sought or for which it has applied in the prior
three years, except for any applications still pending.

 

		(t)	Environmental Laws. Except as described in the Registration Statement, the Disclosure
                                                                                                       Package and the Prospectus or would not reasonably be expected to, singly or in the aggregate, result in a Material Adverse
                                                                                                       Effect, (A)  neither the Company nor any of its subsidiaries is in violation of any federal, state, local or foreign
                                                                                                       statute, law, rule, regulation, ordinance, code, policy or rule of common law or any judicial or administrative
                                                                                                       interpretation thereof, including any judicial or administrative order, consent, decree or judgment, relating to pollution or
                                                                                                       protection of human health, the environment (including, without limitation, ambient air, surface water, groundwater, land
                                                                                                       surface or subsurface strata) or wildlife, including, without limitation, laws and regulations relating to the release or
                                                                                                       threatened release of chemicals, pollutants, contaminants, wastes, toxic substances, hazardous substances, petroleum or
                                                                                                       petroleum products, asbestos-containing materials or mold (collectively, “Hazardous Materials”) or to the
                                                                                                       manufacture, processing, distribution, use, treatment, storage, disposal, transport or handling of Hazardous
                                                                                                       Materials (collectively, “Environmental Laws”), (B) the Company and each of its subsidiaries has all
                                                                                                       permits, authorizations and approvals required under any applicable Environmental Laws and is in compliance with their
                                                                                                       requirements, (C) there are no pending or, to the knowledge of the Company, threatened administrative, regulatory or
                                                                                                       judicial actions, suits, demands, demand letters, claims, liens, notices of noncompliance or violation, investigation or
                                                                                                       proceedings relating to any Environmental Law against the Company or any of its subsidiaries and (D) to the knowledge of
                                                                                                       the Company, there are no existing events, conditions or facts that would reasonably be expected to form the basis of an
                                                                                                       order for clean-up or remediation, or an action, suit or proceeding by any private party or Governmental Entity, against or
                                                                                                       affecting the Company or any of its subsidiaries relating to Hazardous Materials or any Environmental Laws.

 

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		(u)	Independent Accountants. Each of Rosenberg Rich Baker Berman & Company and EisnerAmper LLP, who certified financial
statements and supporting schedules incorporated by reference in the Registration Statement, the Disclosure Package and the Prospectus,
is a registered independent public accounting firm as required by the Securities Act, the Rules and Regulations and the Exchange
Act.

 

		(v)	Forward-Looking Statements. No forward looking statement within the meaning of Section 27A of the Securities Act
and Section 21E of the Exchange Act contained in the Commission Documents, the Registration Statement or the Prospectus, has
been made or reaffirmed without a reasonable basis or has been disclosed other than in good faith.

 

		(w)	Possession of Intellectual Property. Except as would not reasonably be expected to have a Material Adverse Effect, (i) 
the Company and each of its subsidiaries owns all right, title and interest in or otherwise have the right to use all patents,
inventions, copyrights, know-how (including trade secrets and other unpatented and/or unpatentable proprietary or confidential
information, systems or procedures), trademarks, service marks, trade names and other intellectual property rights (collectively,
“Intellectual Property”) that is necessary for, used or held for use in, or otherwise exploited in connection
with, the conduct of the business now operated by them and as proposed to be operated, and (ii) to the Company’s knowledge,
neither the Company nor any of its subsidiaries is infringing, misappropriating, diluting or otherwise violating the Intellectual
Property of any third party. Except as disclosed in the Registration Statement, the Disclosure Package and the Prospectus or as
would not reasonably be expected to have a Material Adverse Effect, (i) no action, suit, claim, or other proceeding is pending,
or to the Company’s knowledge, is threatened, alleging that the Company or any of its subsidiaries is infringing, misappropriating,
diluting, or otherwise violating the Intellectual Property of any third party in any respect, and (ii) no action, suit, claim,
or other proceeding is pending, or to the Company’s knowledge, is threatened, challenging the validity, enforceability, scope,
registration, ownership or use of any Intellectual Property of the Company or any of its subsidiaries that is, singly or in the
aggregate, necessary to its business (with the exception of office actions in connection with applications for the registration
or issuance of such Intellectual Property).

 

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		(x)	Payment of Taxes. All United States federal income tax returns of the Company and each of its subsidiaries required
by law to be filed have been filed and all taxes shown by such returns or otherwise assessed, which are due and payable, have been
paid, except assessments against which appeals have been or will be promptly taken and as to which adequate reserves have been
provided other than as would not reasonably be expected to, singly or in the aggregate, have a Material Adverse Effect. The Company
and each of its subsidiaries has filed all other tax returns that are required to have been filed by them pursuant to applicable
foreign, state, local or other law except insofar as the failure to file such returns would not result in a Material Adverse Effect,
and have paid all taxes due pursuant to such returns or pursuant to any assessment received by the Company or any such subsidiary,
except for such taxes, if any, as are being contested in good faith and as to which adequate reserves have been established by
the Company or any such subsidiary, other than as would not reasonably be expected to, singly or in the aggregate, have a Material
Adverse Effect. Except as disclosed in the Registration Statement, the Disclosure Package and the Prospectus, the charges, accruals
and reserves on the books of the Company in respect of any income and corporation tax liability for any years not finally determined
are believed to be adequate to meet any assessments or re-assessments for additional income tax for any years not finally determined,
except to the extent of any inadequacy that would not reasonably be expected to result in a Material Adverse Effect.

 

		(y)	No Reliance. The Company has not relied upon Canaccord or legal counsel for Canaccord for any legal, tax or accounting
advice in connection with the offering and sale of the Placement Shares.

 

		(z)	Disclosure Controls.

 

		(i)	The Company has established and maintains disclosure controls and procedures (as such term is defined in Rule 13a-15 under
the Exchange Act), which (a) are designed to ensure that material information relating to the Company, including its consolidated
subsidiaries, is made known to the Company’s principal executive officer and its principal financial officer by others within
those entities, particularly during the preparation of the Registration Statement; (b) have been evaluated for effectiveness
as of the date of the filing of the Registration Statement with the Commission; and (c) are effective in all material respects
to perform the functions for which they were established.

 

		(ii)	The Company (a) makes and keeps accurate books and records and (b) maintains internal accounting controls which provide
reasonable assurance that (1) transactions are executed in accordance with management’s authorization, (2) transactions
are recorded as necessary to permit preparation of its financial statements and to maintain accountability for its assets, (3) access
to its assets is permitted only in accordance with management’s authorization and (4) the reported accountability for
its assets is compared with existing assets at reasonable intervals and appropriate action is taken with respect to any differences.

 

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		(aa)	Accounting Controls. Except as described in the Registration Statement, the Disclosure Package and the Prospectus, the
Company maintains effective internal control over financial reporting (as defined under Rule 13a-15 and 15d-15 of the Exchange
Act) and a system of internal accounting controls sufficient to provide reasonable assurances that (A) transactions are executed
in accordance with management’s general or specific authorization; (B) transactions are recorded as necessary to permit
preparation of financial statements in conformity with GAAP and to maintain accountability for assets; (C) access to assets
is permitted only in accordance with management’s general or specific authorization; (D) the recorded accountability
for assets is compared with the existing assets at reasonable intervals and appropriate action is taken with respect to any differences
and (E) the interactive data in eXtensible Business Reporting Language incorporated by reference in the Registration Statement,
the Disclosure Package and the Prospectus fairly presents the information called for in all material respects and is prepared in
accordance with the Commission’s rules and guidelines applicable thereto. Except as described in the Registration Statement,
the Disclosure Package and the Prospectus, since the end of the Company’s most recent audited fiscal year, there has been
(1) no material weakness in the Company’s internal control over financial reporting (whether or not remediated) and
(2) no change in the Company’s internal control over financial reporting that has materially affected, or is reasonably
likely to materially affect, the Company’s internal control over financial reporting.

 

		(bb)	Absence of Manipulation. Neither the Company nor any affiliate of the Company has taken, nor will the Company or any
affiliate take, directly or indirectly, any action which is designed, or would reasonably be expected, to cause or result in, or
which constitutes, the stabilization or manipulation of the price of any security of the Company to facilitate the sale or resale
of the Securities.

 

		(cc)	Broker/Dealer Relationships. Neither the Company nor the subsidiaries or any related entities (i) is required to
register as a “broker” or “dealer” in accordance with the provisions of the Exchange Act or (ii) directly
or indirectly through one or more intermediaries, controls or is a “person associated with a FINRA member” or “associated
person of a FINRA member” (within the meaning of Article I of the Bylaws of the FINRA).

 

		(dd)	Margin Rules. The application of the proceeds received by the Company from the issuance, sale and delivery of the Securities
as described in the Registration Statement, the Disclosure Package and the Prospectus will not violate Regulation T, U or X of
the Board of Governors of the Federal Reserve System or any other regulation of such Board of Governors.

 

		(ee)	Sarbanes-Oxley. The principal executive officer and principal financial officer of the Company have made all certifications
required by Sections 302 and 906 of the Sarbanes-Oxley Act of 2002 and the rules and regulations promulgated in connection
therewith (the “Sarbanes-Oxley Act”) with respect to all reports, schedules, forms, statements and other documents
required to be filed by it with the Commission, and the statements contained in any such certification are complete and correct.
The Company, and to its knowledge, all of the Company’s directors or officers, in their capacities as such, are in compliance
in all material respects with all applicable effective provisions of the Sarbanes-Oxley Act.

 

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		(ff)	Brokers. Except for the Placement Fees and expense reimbursement payable to Canaccord pursuant to this Agreement, there
is no broker, finder or other party that is entitled to receive from the Company any brokerage or finder’s fee or other fee
or commission as a result of any transactions contemplated by this Agreement.

 

		(gg)	Canaccord Purchases. The Company acknowledges and agrees that Canaccord has informed the Company that Canaccord may,
to the extent permitted under the Securities Act and the Exchange Act, purchase and sell Common Shares for Canaccord’s own
account and for the account of its clients at the same time as sales of Placement Shares occur pursuant to this Agreement.

 

		(hh)	No Registration Rights. Except as may be described in the Prospectus, neither the Company nor its subsidiaries is party
to any agreement that provides any person with the right to require the Company or its subsidiaries to register any securities
for sale under the Securities Act by reason of the filing of the Registration Statement with the Commission or the issuance and
sale of the Placement Shares.

 

		(ii)	Accurate Descriptions. The statements set forth in the Registration Statement, the Disclosure Package and the Prospectus
under the caption “Description of Capital Stock,” insofar as they purport to constitute a summary of the terms of the
Common Stock are accurate, complete and fair summaries.

 

		(jj)	OFAC. Neither the Company, any of its subsidiaries nor, to the knowledge of the Company, its or their respective directors,
officers, agents, employees, affiliates or representatives (each, a “Person” ) are currently the subject of
sanctions administered or enforced by the United States Government, including, without limitation, the U.S. Department of the Treasury’s
Office of Foreign Assets Control (“OFAC”), the United Nations Security Council, the European Union, Her Majesty’s
Treasury, or other relevant sanctions authority applicable to the Company and its subsidiaries (collectively, “Sanctions”),
nor is the Company or any of its subsidiaries located, organized or resident in a country or territory that is the subject of Sanctions;
and the Company does not intend to, directly or indirectly, use the proceeds of the sale of the Securities, or lend, contribute
or otherwise make available such proceeds to any subsidiaries, joint venture partners or other Person, to fund any activities of
or business with any Person, or in any country or territory, that, at the time of such funding, is the subject of Sanctions or
in any other manner that will result in a violation by any Person (including any Person participating in the transaction, whether
as underwriter, advisor, investor or otherwise) of Sanctions.

 

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		(kk)	Money Laundering Laws. The operations of the Company and its subsidiaries are and have been conducted at all times in
compliance with applicable financial recordkeeping and reporting requirements of the Currency and Foreign Transactions Reporting
Act of 1970, as amended, the money laundering statutes of all applicable jurisdictions, the rules and regulations thereunder and
any related or similar rules, regulations or guidelines, issued, administered or enforced by any Governmental Entity (collectively,
the “Money Laundering Laws”); and no action, suit or proceeding by or before any Governmental Entity involving
the Company or any of its subsidiaries with respect to the Money Laundering Laws is pending or, to the knowledge of the Company,
threatened.

 

		(ll)	Off-Balance Sheet Arrangements. There are no transactions, arrangements and other
relationships between and/or among the Company, and/or, to the knowledge of the Company, any of its affiliates and any unconsolidated
entity, including, but not limited to, any structural finance, special purpose or limited purpose entity (each, an “Off Balance
Sheet Transaction”) that could reasonably be expected to affect materially the Company’s liquidity or the availability
of or requirements for its capital resources, including those Off Balance Sheet Transactions described in the Commission’s
Statement about Management’s Discussion and Analysis of Financial Conditions and Results of Operations (Release Nos. 33-8056;
34-45321; FR-61), required to be described in the Prospectus which have not been described as required.

 

		(mm)	ERISA. Other than as would not, singly or in the aggregate, reasonably be expected to result in a Material Adverse Effect
and except as disclosed in the Registration Statement, the Disclosure Package and the Prospectus, (i) no “employee benefit
plan” (as defined in Section 3(3) of ERISA), for which the Company would have any liability (whether absolute or contingent)
(each a “Plan”) has experienced a failure to satisfy the “minimum funding standard” (as defined
in Section 302 of the Employee Retirement Income Security Act of 1974, as amended, (“ERISA”) or Section 412
of the Internal Revenue Code of 1986, as amended (the “Code”)), or other event of the kind described in Section 4043(c)
of ERISA (other than events with respect to which the 30-day notice requirement under Section 4043 of ERISA has been waived)
or any similar minimum funding failure event with respect to any Plan (other than a Plan that under applicable law is required
to be funded by a trust or funding vehicle maintained exclusively by a governmental authority) that is maintained outside of the
United States primarily for the benefit of persons substantially all of whom are nonresident aliens (ii) each Plan is in compliance
in all respects with applicable law, including, without limitation, ERISA and the Code; (iii) other than in the ordinary course,
neither the Company nor any trade or business, whether or not incorporated, that, together with the Company, would be deemed to
be a “single employer” within the meaning of Section 4001(b)(1) of ERISA or Section 414(b), 414(c), 414(m)
or 414(o) of the Code has incurred or reasonably expects to incur any liability with respect to any Plan (A) under Title IV
of ERISA or (B) in respect of any post-employment health, medical or life insurance benefits for former, current or future
employees of the Company, except as required to avoid excise tax under Section 4980B of the Code and except, on a case by
case basis, limited extensions of health insurance benefits (for a period of no more than 18 months post-employment) to former
employees receiving severance payments from the Company; and (iv) each Plan that is intended to be qualified under Section 401(a)
of the Code is so qualified and nothing has occurred, whether by action or by failure to act, which could cause the loss of such
qualification. The Company is not, nor at any time during the last three years has the Company been, a party to any collective
bargaining agreement or other labor agreement with respect to employees of the Company. There are no pending, or, to the Company’s
knowledge, threatened, activities or proceedings by any labor union or similar entity to organize any employees of the Company.
No labor dispute with, or labor strike, work stoppage or other material labor disturbance by, the employees of the Company exists
or to the Company’s knowledge is imminent.

 

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		(nn)	Stock Options. With respect to the outstanding stock
options (the “Stock Options”) granted pursuant to the stock-based compensation plans of the Company (the “Company
Stock Plans”), (i) each Stock Option intended to qualify as an “incentive stock option” the “Code”,
so qualified, (ii) each grant of a Stock Option was duly authorized no later than the date on which the grant of such Stock Option
was by its terms to be effective (the “Grant Date”) by all necessary corporate action, including, as applicable,
approval by the board of directors of the Company (or a duly constituted and authorized committee thereof) and any required stockholder
approval by the necessary number of votes or written consents, and the award agreement governing such grant (if any) was duly executed
and delivered by each party thereto, (iii) each such grant was made in accordance with the terms of the Company Stock Plans and
all other applicable laws and regulatory rules or requirements, except where the failure to comply with such laws, regulatory rules
or requirements would not result in a Material Adverse Effect, and (iv) each such grant was properly accounted for in accordance
with GAAP in the financial statements (including the related notes) of the Company included in the Registration Statement, the
Disclosure Package and the Prospectus, to the extent required under GAAP to be accounted for in such financial statements.

 

		(oo)	No Misstatement or Omission in an Issuer Free Writing Prospectus. Each issuer free writing prospectus, as defined in
Rule 405 under the Securities Act (an “Issuer Free Writing Prospectus”), as of the Applicable Time did not or
will not contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary
to make the statements therein, in light of the circumstances under which they were made, not misleading; provided, however, that
the Company makes no representation or warranty with respect to any statement contained in any Issuer Free Writing Prospectus in
reliance upon and in conformity with written information furnished to the Company by and through Canaccord for use therein.

 

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		(pp)	Conformity of Issuer Free Writing Prospectus. Each Issuer Free Writing Prospectus conformed or will conform in all material
respects with the requirements of the Securities Act on the date of first use, and the Company has complied or will comply with
any filing requirements applicable to such Issuer Free Writing Prospectus pursuant to the Securities Act. Each Issuer Free Writing
Prospectus, as of its issue date and at all subsequent times through the completion of the public offer and sale of the Placement
Shares, did not, does not and will not include any information that conflicted, conflicts or will conflict with the information
contained in the Registration Statement or the Prospectus, including any document incorporated by reference therein that has not
been superseded or modified. The Company has not made any offer relating to the Shares that would constitute an Issuer Free Writing
Prospectus without the prior written consent of Canaccord. The Company has retained in accordance with the Securities Act all Issuer
Free Writing Prospectuses that were not required to be filed pursuant to the Securities Act.

 

		(qq)	FINRA Exemption. The Company satisfies the pre-1992 eligibility requirements for the use of a registration statement
on Form S-3 in connection with the offering contemplated thereby (the pre-1992 eligibility requirements for the use of the registration
statement on Form S-3 include (i) having a non-affiliate, public common equity float of at least $150 million or a non-affiliate,
public common equity float of at least $100 million and annual trading volume of at least three million shares and (ii) having
been subject to the Exchange Act reporting requirements for a period of 36 months).

 

		(rr)	Absence of Further Requirements. No filing with, or authorization, approval, consent, license, order, registration,
qualification or decree of, any Governmental Entity is necessary or required for the performance by the Company of its obligations
hereunder, in connection with the offering, issuance or sale of the Securities hereunder or the consummation of the transactions
contemplated by this Agreement, except such as have been already obtained or as may be required under the 1933 Act, the 1933 Act
Regulations, the rules of the NASDAQ Stock Market LLC, or state securities laws.

 

		(ss)	Maintenance of Rating. The Company does not have any securities rated by any “nationally recognized statistical
rating organization” (as defined for purposes of Rule 436(g) under the 1933 Act).

 

		(tt)	Statistical and Market-Related Data. Any statistical and market-related data included in the Registration Statement,
the Disclosure Package or the Prospectus are based on or derived from sources that the Company believes, after reasonable inquiry,
to be reliable and accurate in all material respects and, to the extent required, the Company has obtained the written consent
to the use of such data from such sources.

 

		(uu)	FINRA Affiliations. There are no affiliations or associations between any member of FINRA and any of the Company’s
officers, directors or 5% or greater securityholders.

 

		(vv)	Related Party Transactions. There are no business relationships or related-party transactions involving the Company,
any of its subsidiaries or any other person required to be described in the Registration Statement, any preliminary prospectus,
the Prospectus and the Disclosure Package which have not been described as required. The Disclosure Package contains in all material
respects the same description of the matters set forth in the preceding sentence contained in the Prospectus.

 

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7.
Covenants of the Company. The Company covenants and agrees with Canaccord that:

 

		(a)	Registration Statement Amendments. After the date of this Agreement and during the period in which a prospectus relating
to the Placement Shares is required to be delivered by Canaccord under the Securities Act (including in circumstances where such
requirement may be satisfied pursuant to Rule 172 or Rule 173(a) under the Securities Act), (i) the Company will notify
Canaccord promptly of the time when any subsequent amendment to the Registration Statement has been filed with the Commission and
has become effective (each, a “Registration Statement Amendment Date”) or any subsequent supplement to the Prospectus
has been filed and of any request by the Commission for any amendment or supplement to the Registration Statement or Prospectus
or for additional information; (ii) the Company will file promptly all other material required to be filed by it with the
Commission pursuant to Rule 433(d) under the Securities Act; (iii) it will prepare and file with the Commission, promptly
upon Canaccord’s request, any amendments or supplements to the Registration Statement or Prospectus that, in Canaccord’s
reasonable opinion, may be necessary or advisable in connection with the distribution of the Placement Shares by Canaccord (provided,
however, that the failure of Canaccord to make such request shall not relieve the Company of any obligation or liability hereunder,
or affect Canaccord’s right to rely on the representations and warranties made by the Company in this Agreement); (iv) the
Company will submit to Canaccord a copy of any amendment or supplement to the Registration Statement or Prospectus a reasonable
period of time before the filing thereof and will afford Canaccord and Canaccord’s counsel a reasonable opportunity to comment
on any such proposed filing prior to such proposed filing; and (v) it will furnish to Canaccord at the time of filing thereof
a copy of any document that upon filing is deemed to be incorporated by reference in the Registration Statement or Prospectus;
and the Company will cause each amendment or supplement to the Prospectus to be filed with the Commission as required pursuant
to the applicable paragraph of Rule 424 (b) of the Rules and Regulations or, in the case of any document to be incorporated
therein by reference, to be filed with the Commission as required pursuant to the Exchange Act, within the time period prescribed.

 

		(b)	Notice of Commission Stop Orders. The Company will advise Canaccord, promptly after it receives notice thereof, of the
issuance by the Commission of any stop order or of any order preventing or suspending the use of the Prospectus or other prospectus
in respect of the Shares, of any notice of objection of the Commission to the use of the form of the Registration Statement or
any post-effective amendment thereto pursuant to Rule 401(g)(2) under the Securities Act, of the suspension of the qualification
of the Shares for offering or sale in any jurisdiction, of the initiation or threatening of any proceeding for any such purpose,
or of any request by the Commission for the amending or supplementing of the form of the Registration Statement or the Prospectus
or for additional information; and, in the event of the issuance of any such stop order or of any such order preventing or suspending
the use of the Prospectus in respect of the Shares or suspending any such qualification, to promptly use its commercially reasonable
efforts to obtain the withdrawal of such order; and in the event of any such issuance of a notice of objection, promptly to take
such reasonable steps as may be necessary to permit offers and sales of the Placement Shares by Canaccord, which may include, without
limitation, amending the Registration Statement or filing a new registration statement, at the Company’s expense (references
herein to the Registration Statement shall include any such amendment or new registration statement).

 

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		(c)	Delivery of Prospectus; Subsequent Changes. Within the time during which a prospectus relating to the Shares is required
to be delivered by Canaccord under the Securities Act (including in circumstances where such requirement may be satisfied pursuant
to Rule 172 or Rule 173(a) under the Securities Act), the Company will comply with all requirements imposed upon it by the Securities
Act and by the Rules and Regulations, as from time to time in force, and will file on or before their respective due dates all
reports required to be filed by it with the Commission pursuant to Sections 13(a), 13(c), 15(d), if applicable, or any other
provision of or under the Exchange Act. If during such period any event occurs as a result of which the Prospectus as then amended
or supplemented would include an untrue statement of material fact or omit to state a material fact necessary to make the statements
therein, in the light of the circumstances then existing, not misleading, or if during such period it is necessary to amend or
supplement the Registration Statement or Prospectus to comply with the Securities Act, the Company will immediately notify Canaccord
to suspend the offering of Shares during such period and the Company will promptly amend or supplement the Registration Statement
or Prospectus (at the expense of the Company) so as to correct such statement or omission or effect such compliance.

 

		(d)	NASDAQ Filings. In connection with the offering and sale of the Placement Shares, the Company will file with the NASDAQ
Capital Market all documents and notices, and make all certifications, required by the NASDAQ Capital Market of companies that
have securities that are listed on the NADAQ Capital Market.

 

		(e)	Listing of Placement Shares. The Company will use commercially reasonable efforts to cause the Placement Shares to be
listed on the NASDAQ Capital Market and to qualify the Placement Shares for sale under the securities laws of such jurisdictions
as Canaccord designates and to continue such qualifications in effect so long as required for the distribution of the Placement
Shares; provided that the Company shall not be required in connection therewith to qualify as a foreign corporation or to file
a general consent to service of process in any jurisdiction.

 

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		(f)	Delivery of Registration Statement and Prospectus. The Company will furnish to Canaccord and its counsel (at the expense
of the Company) copies of the Registration Statement, the Prospectus (including all documents incorporated by reference therein)
and all amendments and supplements to the Registration Statement or Prospectus that are filed with the Commission during the period
in which a prospectus relating to the Shares is required to be delivered under the Securities Act (including all documents filed
with the Commission during such period that are deemed to be incorporated by reference therein), in each case as soon as reasonably
practicable and in such quantities as Canaccord may from time to time reasonably request and, at Canaccord’s request, will
also furnish copies of the Prospectus to each exchange or market on which sales of Placement Shares may be made.

 

		(g)	[Intentionally Omitted].

 

		(h)	Earnings Statement. The Company will make generally available to its security holders as soon as practicable, but in
any event not later than 15 months after the end of the Company’s current fiscal quarter, an earnings statement covering
a 12-month period that satisfies the provisions of Section 11(a) of the Securities Act and Rule 158 of the Rules and Regulations.

 

		(i)	Expenses.

 

		(i)	The Company, whether or not the transactions contemplated hereunder are consummated or this Agreement is terminated, will pay
all expenses incident to the performance of its obligations hereunder, including but not limited to (i) the preparation, printing
and filing of the Registration Statement and each amendment and supplement thereto, of each Prospectus and of each amendment and
supplement thereto and each Issuer Free Writing Prospectus (as defined in Section 8 of this Agreement), (ii) the
preparation, issuance and delivery of the Placement Shares, (iii) all fees and disbursements of the Company’s counsel,
accountants and other advisors, (iv) the qualification of the Placement Shares under securities laws in accordance with the
provisions of Section 7(e) of this Agreement, including filing fees in connection therewith, (v) the printing and delivery
to Canaccord of copies of the Prospectus and any amendments or supplements thereto, and of this Agreement, (vi) the fees and
expenses incurred in connection with the listing or qualification of the Placement Shares for trading on the NASDAQ Capital Market,
and (vii) any filing fees related to the Commission and FINRA.

 

		(ii)	Notwithstanding the foregoing, the Company shall reimburse Canaccord for all of its reasonable expenses, up to a maximum
reimbursement of $50,000, arising out of this Agreement (including travel and related expenses, the costs of document preparation,
production and distribution, third party research and database services and the reasonable fees and disbursements of counsel to
Canaccord) within ten (10) days of the presentation by Canaccord to the Company of a reasonably detailed statement therefor.

 

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		(j)	Use of Proceeds. The Company will use the net proceeds as described in the Prospectus.

 

		(k)	Other Sales. Without the prior written consent of Canaccord (which consent shall not be unreasonably withheld), the
Company will not (A) directly or indirectly, offer to sell, sell, announce the intention to sell, contract to sell, pledge,
lend, grant or sell any option, right or warrant to sell or any contract to purchase, purchase any contract or option to sell or
otherwise transfer or dispose of any Common Shares (other than the Shares offered pursuant to the provisions of this Agreement)
or securities convertible into or exchangeable for Common Shares, warrants or any rights to purchase or acquire, Common Shares
or file any registration statement under the Securities Act with respect to any of the foregoing (other than a registration statement
on Form S-8), or (B) enter into any swap or other agreement or any transaction that transfers in whole or in part, directly
or indirectly, any of the economic consequence of ownership of the Common Shares, or any securities convertible into or exchangeable
or exercisable for or repayable with Common Shares, whether any such swap or transaction described in clause (A) or (B) above
is to be settled by delivery of Common Shares or such other securities, in cash or otherwise, during the period beginning on the
fifth (5th) Business Day immediately prior to the date on which any Placement Notice is delivered by the Company hereunder and
ending on the fifth (5th) Business Day immediately following the final Settlement Date with respect to Placement Shares sold pursuant
to such Placement Notice. The foregoing sentence shall not apply to (i) Common Shares, options to purchase Common Shares or Common
Shares issuable upon the exercise of options, restricted share awards, restricted share unit awards, Common Shares issuable upon
vesting of restricted share unit awards, or other equity awards or Common Shares issuable upon exercise or vesting of equity awards,
pursuant to any employee or director (x) equity award or benefits plan or otherwise approved by the Company’s Board of Directors,
(y) share ownership or share purchase plan or (z) dividend reinvestment plan (but not shares subject to a waiver to exceed plan
limits in its dividend reinvestment plan) of the Company whether now in effect or hereafter implemented, (ii) Common Shares issuable
upon conversion of securities or the exercise of warrants, options or other rights in effect or outstanding on the date hereof,
(iii) the entering into an underwriting agreement with Canaccord acting as underwriter in connection with a best efforts underwritten
offering as described in the Prospectus (the “Concurrent Public Offering”), (iv) Common Shares or any securities
convertible into, or exercisable, or exchangeable for, Common Shares, issued in connection with future acquisitions as long as
the aggregate number of Common Shares issued or issuable does not exceed 10% of the number of Common Shares outstanding immediately
after giving effect to the Concurrent Public Offering; or (v) Common Shares or any securities convertible into, or exercisable,
or exchangeable for, Common Shares, issued in connection with any acquisition of, or business combination with, MoviePass Inc.

 

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		(l)	Change of Circumstances. The Company will, at any time a Placement Notice is outstanding, advise Canaccord immediately
after it shall have received notice or obtained knowledge thereof, of any information or fact that would alter or affect any opinion,
certificate, letter or other document provided to Canaccord in connection with such Placement Notice; and without the prior written
consent of Canaccord (which consent shall not be unreasonably withheld), the Company will not directly or indirectly in any other
“at the market” or continuous equity transaction offer to sell, sell, contract to sell, grant any option to sell or
otherwise dispose of any Common Shares (other than the Placement Shares offered pursuant to the provisions of this Agreement) or
securities convertible into or exchangeable for Common Shares, warrants or any rights to purchase or acquire, Common Shares prior
to the later of the termination of this Agreement and the tenth (10th) day immediately following the final Settlement Date with
respect to Placement Shares sold pursuant to such Placement Notice; provided, however, that such restrictions will not be applicable
to the Company’s issuance or sale of (i) Common Shares, options to purchase Common Shares or Common Shares issuable upon
the exercise of options, restricted share awards, restricted share unit awards, Common Shares issuable upon vesting of restricted
share unit awards, or other equity awards or Common Shares issuable upon exercise or vesting of equity awards, pursuant to any
employee or director (x) equity award or benefits plan or otherwise approved by the Company’s Board of Directors, (y) share
ownership or share purchase plan or (z) dividend reinvestment plan (but not shares subject to a waiver to exceed plan limits in
its dividend reinvestment plan) of the Company whether now in effect or hereafter implemented, and (ii) Common Shares issuable
upon conversion of securities or the exercise of warrants, options or other rights in effect or outstanding on the date hereof.

 

		(m)	Due Diligence Cooperation. The Company will cooperate with any reasonable due diligence review conducted by Canaccord
or its agents, including, without limitation, providing information and making available documents and the Company’s senior
corporate officers, as Canaccord may reasonably request; provided, however, that the Company shall be required to make available
senior corporate officers only (i) by telephone or at the Company’s principal offices and (ii) during the Company’s
ordinary business hours.

 

		(n)	Affirmation of Representations, Warranties, Covenants and Other Agreements. Upon commencement of the offering of the
Placement Shares under this Agreement (and upon the recommencement of the offering of the Placement Shares under this Agreement
following any termination of a suspension of sales hereunder), and at each Applicable Time, the Company shall be deemed to have
affirmed each representation, warranty, covenant and other agreement contained in this Agreement.

 

		(o)	Required Filings Relating to Placement of Placement Shares. In each Annual Report on Form 10-K or Quarterly Report
on Form 10-Q filed by the Company in respect of any quarter in which sales of Placement Shares were made by Canaccord under
this Agreement (each date on which any such document is filed, and any date on which an amendment to any such document is filed,
a “Company Periodic Report Date”), the Company shall set forth with regard to such quarter the number of Shares
sold through the Canaccord under this Agreement, the Net Proceeds received by the Company and the compensation paid by the Company
to Canaccord with respect to sales of Placement Shares pursuant to this Agreement.

 

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		(p)	Representation Dates; Certificate. During the term of this Agreement, on the date of each Placement Notice given hereunder,
promptly upon each request of Canaccord, and each time the Company (i) files the Prospectus relating to the Placement Shares or
amends or supplements the Registration Statement or the Prospectus relating to the Placement Shares by means of a post-effective
amendment, sticker, or supplement but not by means of incorporation of document(s) by reference to the Registration Statement or
the Prospectus relating to the Placement Shares; (ii) files an annual report on Form 10-K under the Exchange Act; (iii) files its
quarterly reports on Form 10-Q under the Exchange Act; or (iv) files a report on Form 8-K containing amended financial information
(other than an earnings release, to “furnish” information pursuant to Items 2.02 or 7.01 of Form 8-K or to provide
disclosure pursuant to Item 8.01 of Form 8-K relating to the reclassifications of certain properties as discontinued operations
in accordance with Statement of Financial Accounting Standards No. 144) under the Exchange Act (each date of filing of one or more
of the documents referred to in clauses (i) through (iv) shall be a “Representation Date”); the Company shall
furnish Canaccord with a certificate, in the form attached hereto as Exhibit A.  The requirement to provide
a certificate under this Section 7(p) shall be waived for any Representation Date occurring at a time at which no Placement
Notice is pending, which waiver shall continue until the earlier to occur of the date the Company delivers a Placement Notice hereunder
(which for such calendar quarter shall be considered a Representation Date) and the next occurring Representation Date following
the delivery of such Placement Notice; provided, however, that such waiver shall not apply for any Representation Date on which
the Company files its annual report on Form 10-K.  

 

Notwithstanding the foregoing, if
the Company subsequently decides to sell Placement Shares following a Representation Date when the Company relied on such waiver
and did not provide Canaccord with a certificate under this Section 7(p), then before the Company delivers the Placement
Notice or Canaccord sells any Placement Shares, the Company shall provide Canaccord with a certificate, in the form attached hereto
as Exhibit A, dated the date of the Placement Notice.

 

		(q)	Legal Opinions. Upon execution of this Agreement, upon the commencement of the offering of the Placement Shares under
this Agreement (and upon recommencement of the offering of the Placement Shares under this Agreement following any termination
of a suspension of sales hereunder), and within two (2) trading days of each Representation Date with respect to which the Company
is obligated to deliver a certificate in the form attached hereto as Exhibit A for which no waiver is applicable, the Company
will furnish or cause to be furnished to Canaccord and to counsel to Canaccord (i) the written opinion and negative assurance letters
of Greenberg Traurig LLP, counsel to the Company, and (ii) the written opinion of Ellenoff Grossman & Schole LLP, counsel to
MoviePass Inc., each dated the date the opinions or letter are required to be delivered, as the case may be, in a form and substance
reasonably satisfactory to Canaccord and its counsel, or, in lieu of such opinions and letter, counsel last furnishing such opinions
and letter to Canaccord shall furnish Canaccord with a letter substantially to the effect that Canaccord may rely on such last
opinions and letter to the same extent as though each were dated the date of such letter authorizing reliance (except that statements
in such last opinions and letter shall be deemed to relate to the Registration Statement and the Prospectus as amended and supplemented
to the time of delivery of such letter authorizing reliance).

 

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		(r)	Comfort Letters. Upon execution of this Agreement, upon commencement of the offering of the Placement Shares under this
Agreement (and upon the recommencement of the offering of the Placement Shares under this Agreement following any termination of
a suspension of sales hereunder), and within two (2) trading days of each Representation Date with respect to which the Company
is obligated to deliver a certificate in the form attached hereto as Exhibit A for which no waiver is applicable, the Company
shall cause each of Rosenberg Rich Baker Berman & Company (with respect to the Company), EisnerAmper LLP (with respect to MoviePass
Inc.) and EisnerAmper LLP (with respect to Zone Technologies, Inc.) to furnish Canaccord a letter dated the date of this Agreement
or the date of such recommencement or the date of such Representation Date (but in the case of clauses (i) and (iv) of Section
7(p) above, only if Canaccord reasonably determines that the information contained in such filings with the Commission contains
a material change in the financial disclosure of the Company), as the case may be (the “Comfort Letters”), in
form and substance satisfactory to Canaccord, (i) confirming that they are registered independent public accountants within
the meaning of the Securities Act and are in compliance with the applicable requirements relating to the qualification of accountants
under Rule 2-01 of Regulation S-X of the Commission, (ii) stating, as of such date, the conclusions and findings of such firm
with respect to the financial information and other matters included in or incorporated by reference in the Registration Statement
as ordinarily covered by accountants’ “comfort letters” to underwriters in connection with registered public
offerings (the first such letters, the “Initial Comfort Letters”) and (iii) updating the Initial Comfort
Letters with any information which would have been included in the Initial Comfort Letters had it been given on such date and modified
as necessary to relate to the Registration Statement and the Prospectus, as amended and supplemented to the date of such letters.

 

		(s)	Market Activities. The Company will not, directly or indirectly, (i) take any action designed to cause or result
in, or that constitutes or might reasonably be expected to constitute, the stabilization or manipulation of the price of any security
of the Company to facilitate the sale or resale of the Shares or (ii) sell, bid for, or purchase the Shares, or pay anyone
any compensation for soliciting purchases of the Shares other than Canaccord.

 

		(t)	Insurance. The Company and its subsidiaries shall maintain, or cause to be maintained, insurance in such amounts and
covering such risks as is reasonable and customary for companies engaged in similar businesses in similar industries.

 

		(u)	Compliance with Laws. The Company and its subsidiaries shall comply with all applicable federal, state and local or
foreign law, rule, regulation, ordinance, order or decree, except where failure to so comply would not reasonably be expected to
have a Material Adverse Effect. Furthermore, the Company and its subsidiaries shall maintain, or cause to be maintained, all material
environmental permits, licenses and other authorizations required by federal, state and local law in order to conduct their businesses
as described in the Prospectus, and the Company and its subsidiaries shall conduct their businesses, or cause their businesses
to be conducted, in substantial compliance with such permits, licenses and authorizations and with applicable environmental laws,
except where the failure to maintain or be in compliance with such permits, licenses and authorizations would not reasonably be
expected to have a Material Adverse Effect.

 

		(v)	Investment Company Act. The Company will conduct its affairs in such a manner so as to reasonably ensure that neither
it nor the subsidiaries will be or become, at any time prior to the termination of this Agreement, an “investment company,”
as such term is defined in the Investment Company Act, assuming no change in the Commission’s current interpretation as to
entities that are not considered an investment company.

 

		(w)	Securities Act and Exchange Act. The Company will use commercially reasonable efforts to comply with all requirements
imposed upon it by the Securities Act and the Exchange Act as from time to time in force, so far as necessary to permit the continuance
of sales of, or dealings in, the Shares as contemplated by the provisions hereof and the Prospectus.

 

		(x)	No Offer to Sell. Other than a free writing prospectus (as defined in Rule 405 under the Securities Act) approved in
advance by the Company and Canaccord in its capacity as principal or agent hereunder, neither Canaccord nor the Company (including
its agents and representatives, other than Canaccord in its capacity as such) will make, use, prepare, authorize, approve or refer
to any written communication (as defined in Rule 405 under the Securities Act), required to be filed by it with the Commission,
that constitutes an offer to sell or solicitation of an offer to buy Common Shares hereunder.

 

		(y)	Sarbanes-Oxley Act. The Company and the subsidiaries will use their commercially reasonable efforts to comply with all
effective applicable provisions of the Sarbanes-Oxley Act.

 

		(z)	Consent to Canaccord Trading. The Company consents to Canaccord trading in the Common Shares of the Company for Canaccord’s
own account and for the account of its clients at the same time as sales of Placement Shares occur pursuant to this Agreement.

 

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		(aa)	Rescission Offers. If, to the knowledge of the Company, all filings required by Rule 424 in connection with this offering
shall not have been made or the representation in Section 6 shall not be true and correct on the applicable Settlement Date,
the Company will offer to any person who has agreed to purchase Placement Shares from the Company as the result of an offer to
purchase solicited by Canaccord the right to refuse to purchase and pay for such Placement Shares.

 

		(bb)	Actively Traded Security. If, at the time of execution of this Agreement, the Company’s Common Shares is not an
“actively traded security” exempted from the requirements of Rule 101 of Regulation M under the Exchange Act by subsection
(c)(1) of such rule, the Company shall notify Canaccord at the time the Common Shares become an “actively traded security”
under such rule. Furthermore, the Company shall notify Canaccord immediately if the Common Shares, having once qualified for such
exemption, cease to so qualify.

 

8.
Additional Representations and Covenants of the Company.

 

		(a)	Issuer Free Writing Prospectuses.

 

		(i)	The Company represents that it has not made, and covenants that, unless it obtains the prior written consent of Canaccord,
it will not make any offer relating to the Shares that would constitute an Issuer Free Writing Prospectus required to be filed
by it with the Commission or retained by the Company under Rule 433 of the Securities Act; except as set forth in a Placement Notice,
no use of any Issuer Free Writing Prospectus has been consented to by Canaccord. The Company agrees that it will comply with the
requirements of Rules 164 and 433 of the Securities Act applicable to any Issuer Free Writing Prospectus, including timely filing
with the Commission or retention where required and legending.

 

		(ii)	The Company agrees that no Issuer Free Writing Prospectus, if any, will include any information that conflicts with the information
contained in the Registration Statement, including any document incorporated by reference therein that has not been superseded
or modified, or the Prospectus. In addition, no Issuer Free Writing Prospectus, if any, will include an untrue statement of a material
fact or omit to state a material fact necessary to make the statements therein, in light of the circumstances under which they
were made, not misleading; provided however, the foregoing shall not apply to any statements or omissions in any Issuer Free Writing
Prospectus made in reliance on information furnished in writing to the Company by Canaccord intended for use therein.

 

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		(iii)	The Company agrees that if at any time following issuance of an Issuer Free Writing Prospectus any event occurred or occurs
as a result of which such Issuer Free Writing Prospectus would conflict with the information in the Registration Statement, including
any document incorporated by reference therein that has not been superseded or modified, or the Prospectus or would include an
untrue statement of a material fact or omit to state a material fact necessary to make the statements therein, in light of the
circumstances under which they were made, not misleading, the Company will give prompt notice thereof to Canaccord and, if requested
by Canaccord, will prepare and furnish without charge to Canaccord an Issuer Free Writing Prospectus or other document which will
correct such conflict, statement or omission; provided, however, the foregoing shall not apply to any statements or omissions in
any Issuer Free Writing Prospectus made in reliance on information furnished in writing to the Company by Canaccord intended for
use therein.

 

		(b)	Non-Issuer Free Writing Prospectus. The Company consents to the use by Canaccord of a free writing prospectus that (a) is
not an “Issuer Free Writing Prospectus” as defined in Rule 433 under the Securities Act, and (b) contains only
information describing the preliminary terms of the Shares or their offering, or information permitted under Rule 134 under the
Securities Act; provided that Canaccord covenants with the Company not to take any action that would result in the Company being
required to file with the Commission under Rule 433(d) under the Securities Act a free writing prospectus prepared by or on behalf
of Canaccord that otherwise would not be required to be filed by the Company thereunder, but for the action of Canaccord and the
Company shall have consented to the form and substance of such free writing prospectus prior to its use by Canaccord.

 

		(c)	Distribution of Offering Materials. The Company has not distributed and will not distribute, during the term of this
Agreement, any offering materials in connection with the offering and sale of the Placement Shares other than the Registration
Statement, Prospectus or any Issuer Free Writing Prospectus reviewed and consented to by Canaccord and included in a Placement
Notice (as described in clause (a)(i) above).

 

9.
Conditions to Canaccord’s Obligations. The obligations of Canaccord hereunder with respect to a Placement will
be subject to the continuing accuracy and completeness of the representations and warranties made by the Company herein and in
the applicable Placement Notices, to the due performance by the Company of its obligations hereunder, to the completion by Canaccord
of a due diligence review satisfactory to Canaccord in its reasonable judgment, and to the continuing satisfaction (or waiver by
Canaccord in its sole discretion) of the following additional conditions:

 

		(a)	Registration Statement Effective. The Registration Statement shall have become effective and shall be available for
the sale of (i) all Placement Shares issued pursuant to all prior Placements and not yet sold by Canaccord and (ii) all
Placement Shares contemplated to be issued by the Placement Notice relating to such Placement.

 

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		(b)	No Material Notices. None of the following events shall have occurred and be continuing: (i) receipt by the Company
of any request for additional information from the Commission or any other federal or state or foreign or other governmental, administrative
or self-regulatory authority during the period of effectiveness of the Registration Statement, the response to which might reasonably
require any amendments or supplements to the Registration Statement or the Prospectus; (ii) the issuance by the Commission
or any other federal or state or foreign or other governmental authority of any stop order suspending the effectiveness of the
Registration Statement or the initiation of any proceedings for that purpose; (iii) receipt by the Company of any notification
with respect to the suspension of the qualification or exemption from qualification of any of the Shares for sale in any jurisdiction
or the initiation or threatening of any proceeding for such purpose; (iv) the occurrence of any event that makes any statement
made in the Registration Statement or the 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 the 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 in the
case of the 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 to the Registration Statement
would be appropriate.

 

		(c)	No Misstatement or Material Omission. Canaccord shall not have advised the Company that the Registration Statement or
Prospectus, or any amendment or supplement thereto, contains an untrue statement of fact that in Canaccord’s opinion is material,
or omits to state a fact that in Canaccord’s opinion is material and is required to be stated therein or is necessary to
make the statements therein not misleading.

 

		(d)	Material Changes. Except as contemplated and appropriately disclosed in the Prospectus, or disclosed in the Company’s
reports filed with the Commission, in each case at the time the applicable Placement Notice is delivered, there shall not have
been any material change, on a consolidated basis, in the authorized capital shares of the Company and its subsidiaries, or any
Material Adverse Effect, or any development that may reasonably be expected to cause a Material Adverse Effect, or a downgrading
in or withdrawal of the rating assigned to any of the Company’s securities by any rating organization or a public announcement
by any rating organization that it has under surveillance or review its rating of any of the Company’s securities, the effect
of which, in the sole judgment of Canaccord (without relieving the Company of any obligation or liability it may otherwise have),
is so material as to make it impracticable or inadvisable to proceed with the offering of the Placement Shares on the terms and
in the manner contemplated in the Prospectus.

 

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		(e)	Certificate. Canaccord shall have received the certificate required to be delivered pursuant to Section 7(p)
on or before the date on which delivery of such certificate is required pursuant to Section 7(p).

 

		(f)	Legal Opinions. Canaccord shall have received the opinions and letters of counsel to the Company required to be delivered
pursuant Section 7(q) on or before the date on which such delivery of such opinions and letters are required pursuant
to Section 7(q). In addition, Canaccord shall have received a negative assurance letter of Goodwin Procter LLP, counsel
to Canaccord, on such dates and with respect to such matters as Canaccord may reasonably request.

 

		(g)	Comfort Letters. Canaccord shall have received the Comfort Letters required to be delivered pursuant Section 7(r)
on or before the date on which such delivery of such letters are required pursuant to Section 7(r).

 

		(h)	Approval for Listing; No Suspension. The Placement Shares shall have either been (i) approved for listing, subject to
notice of issuance, on the NASDAQ Capital Market, or (ii) the Company shall have filed an application for listing of the Placement
Shares on the NASDAQ Capital Market at or prior to the issuance of the Placement Notice. Trading in the Common Shares shall not
have been suspended on the NASDAQ Capital Market.

 

		(i)	Other Materials. On each date on which the Company is required to deliver a certificate pursuant to Section 7(p),
the Company shall have furnished to Canaccord such appropriate further information, certificates, opinions and documents as Canaccord
may reasonably request. All such opinions, certificates, letters and other documents will be in compliance with the provisions
hereof. The Company will furnish Canaccord with such conformed copies of such opinions, certificates, letters and other documents
as Canaccord shall reasonably request.

 

		(j)	Securities Act Filings Made. All filings with the Commission required by Rule 424 under the Securities Act to have been
filed prior to the issuance of any Placement Notice hereunder shall have been made within the applicable time period prescribed
for such filing by Rule 424.

 

		(k)	No Termination Event. There shall not have occurred any event that would permit Canaccord to terminate this Agreement
pursuant to Section 12(a).

 

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10.
Indemnification and Contribution.

 

		(a)	Company Indemnification. The Company will indemnify and hold harmless Canaccord and each person, if any, who controls
Canaccord against any losses, claims, damages or liabilities, joint or several, to which Canaccord or controlling person may become
subject, under the Securities Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof)
arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in the Registration
Statement, the Prospectus, the Disclosure Package, or any Issuer Free Writing Prospectus or any “issuer information”
filed or required to be filed pursuant to Rule 433(d) under the Securities Act, or any amendment or supplement to the Registration
Statement, the Prospectus or the Disclosure Package, or in any application or other document executed by or on behalf of the Company
or based on written information furnished by or on behalf of the Company filed in any jurisdiction in order to qualify the Placement
Shares under the securities laws thereof or filed with the Commission, or arise out of or are based upon the omission or alleged
omission to state in the Registration Statement, the Prospectus, the Disclosure Package, or any Issuer Free Writing Prospectus
or any “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, or any
amendment or supplement to the Registration Statement, the Prospectus, or the Disclosure Package or in any application or other
document executed by or on behalf of the Company or based on written information furnished by or on behalf of the Company filed
in any jurisdiction in order to qualify the Placement Shares under the securities laws thereof or filed with the Commission a material
fact required to be stated in it or necessary to make the statements in it not misleading, and will reimburse Canaccord for any
reasonable legal expenses of counsel for Canaccord and one set of local counsel in each applicable jurisdiction for Canaccord,
and for other expenses reasonably incurred by Canaccord in connection with investigating or defending any such action or claim
as such expenses are incurred; provided, however, that the Company shall not be liable in any such case to the extent that any
such loss, claim, damage or liability arises out of or is based upon an untrue statement or alleged untrue statement or omission
or alleged omission made in the Registration Statement, the Prospectus or the Disclosure Package, or any such amendment or supplement
thereto, in reliance upon and in conformity with written information furnished to the Company by and through Canaccord expressly
for use therein.

 

		(b)	Canaccord Indemnification. Canaccord will indemnify and hold harmless the Company against any losses, claims, damages
or liabilities to which the Company may become subject, under the Securities Act or otherwise, insofar as such losses, claims,
damages or liabilities (or actions in respect thereof) arise out of or are based upon an untrue statement or alleged untrue statement
of a material fact contained in the Registration Statement (or any amendments thereto), the Prospectus (or any amendment or supplement
thereto), the Disclosure Package, any Issuer Free Writing Prospectus or any non-Issuer Free Writing Prospectus used pursuant to
Section 8(b), or arise out of or are based upon the omission or alleged omission to state therein a material fact, in the
case of the Registration Statement or any amendment thereto, required to be stated therein or necessary to make the statements
therein not misleading and, in the case of the Prospectus or any supplement thereto, the Disclosure Package, the Issuer Free Writing
Prospectus or any non-Issuer Free Writing Prospectus, necessary to make the statements therein, in light of the circumstances in
which they were made, not misleading, in each case to the extent, but only to the extent, that such untrue statement or alleged
untrue statement or omission or alleged omission was made in the Registration Statement (or any amendments thereto), the Prospectus
(or any amendment or supplement thereto), the Disclosure Package, any Issuer Free Writing Prospectus, or any non-Issuer Free Writing
Prospectus in reliance upon and in conformity with written information furnished to the Company by and through Canaccord expressly
for use therein; and will reimburse the Company for any legal or other expenses reasonably incurred by the Company in connection
with investigating or defending any such action or claim as such expenses are incurred.

 

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		(c)	Procedure. Promptly after receipt by an indemnified party under subsection (a) or (b) above of notice of the
commencement of any action, such indemnified party shall, if a claim in respect thereof is to be made against the indemnifying
party under such subsection, promptly notify such indemnifying party in writing of the institution of such action and such indemnifying
party shall assume the defense of such action, including the employment of counsel reasonably satisfactory to such indemnified
party and payment of all fees and expenses; provided, however, that the failure to so notify such indemnifying party shall not
relieve such indemnifying party from any liability which such indemnifying party may have to any indemnified party or otherwise.
(The indemnified party or parties shall have the right to employ its or their own counsel in any such case, but the fees and expenses
of such counsel shall be at the expense of such indemnified party or parties unless the employment of such counsel shall have been
authorized in writing by the indemnifying party in connection with the defense of such action or the indemnifying party shall not
have, within a reasonable period of time in light of the circumstances, employed counsel to defend such action or such indemnified
party or parties shall have reasonably concluded that there may be defenses available to it or them which are different from, additional
to or in conflict with those available to such indemnifying party (in which case such indemnifying party shall not have the right
to direct the defense of such action on behalf of the indemnified party or parties), in any of which events such fees and expenses
shall be borne by such indemnifying party and paid as incurred (it being understood, however, that such indemnifying party shall
not be liable to the expenses of more than one separate counsel (in addition to any local counsel) in any one action or series
of related actions in the same jurisdiction representing the indemnified parties who are parties to such action). No indemnifying
party shall, without the written consent of the indemnified party, effect the settlement or compromise of, or consent to the entry
of any judgment with respect to, any pending or threatened action or claim in respect of which indemnification or contribution
may be sought hereunder (whether or not the indemnified party is an actual or potential party to such action or claim) unless such
settlement, compromise or judgment (i) includes an unconditional release of the indemnified party from all liability arising
out of such action or claim and (ii) does not include a statement as to or an admission of fault, culpability or a failure
to act, by or on behalf of any indemnified party. No indemnifying party shall be liable for any settlement of any action or claim
affected without its written consent, which consent shall not be unreasonably withheld.

 

		(d)	Contribution. If the indemnification provided for in this
                                         Section 10 is unavailable to or insufficient to hold harmless an indemnified
                                         party under subsection (a) or (b) above in respect of any losses, claims, damages
                                         or liabilities (or actions in respect thereof) referred to therein, then each indemnifying
                                         party shall contribute to the amount paid or payable by such indemnified party as a result
                                         of such losses, claims, damages or liabilities (or actions in respect thereof) in such
                                         proportion as is appropriate to reflect the relative benefits received by the Company
                                         on the one hand and Canaccord on the other from the offering of the Placement Shares.
                                         If, however, the allocation provided by the immediately preceding sentence is not permitted
                                         by applicable law or if the indemnified party failed to give the notice required under
                                         subsection (c) above, then each indemnifying party shall contribute to such amount
                                         paid or payable by such indemnified party in such proportion as is appropriate to reflect
                                         not only such relative benefits but also the relative fault of the Company on the one
                                         hand and Canaccord on the other in connection with the statements or omissions which
                                         resulted in such losses, claims, damages or liabilities (or actions in respect thereof),
                                         as well as any other relevant equitable considerations. The relative benefits received
                                         by the Company on the one hand and Canaccord on the other shall be deemed to be in the
                                         same proportion as the total net proceeds from the offering (before deducting expenses)
                                         received by the Company, bear to the total underwriting discounts, commissions and other
                                         fees received by Canaccord. The relative fault shall be determined by reference to, among
                                         other things, whether the untrue or alleged statement of a material fact or the omission
                                         or alleged omission to state a material fact relates to information supplied by the Company
                                         on the one hand or Canaccord on the other and the parties’ relative intent, knowledge,
                                         access to information and opportunity to correct or prevent such statement or omission.
                                         The Company and Canaccord agree that it would not be just and equitable if contributions
                                         pursuant to this subsection (d) were determined by pro rata allocation or by any
                                         other method of allocation which does not take account of the equitable considerations
                                         referred to above in this subsection (d). The amount paid or payable by an indemnified
                                         party as a result of the losses, claims, damages or liabilities (or actions in respect
                                         thereof) referred to above in this subsection (d) shall be deemed to include any
                                         legal or other expenses reasonably incurred by such indemnified party in connection with
                                         investigating or defending any such action or claim. Notwithstanding the provisions of
                                         this subsection (d), Canaccord shall not be required to contribute any amount in excess
                                         of the amount by which the total price at which the Placement Shares distributed to the
                                         public by it were offered to the public exceeds the amount of any damages which Canaccord
                                         has otherwise been required to pay by reason of such untrue or alleged untrue statement
                                         or omission or alleged omission. No person guilty of fraudulent misrepresentation (within
                                         the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution
                                         from any person who was not guilty of such fraudulent misrepresentation.

 

		(e)	Obligations. The obligations of the Company under this Section 10 shall be in addition to any liability
which the Company may otherwise have and shall extend, upon the same terms and conditions, to each person, if any, who controls
Canaccord within the meaning of the Securities Act; and the obligations of Canaccord under this Section 10 shall be
in addition to any liability which Canaccord may otherwise have and shall extend, upon the same terms and conditions, to each officer
and director of the Company and to each person, if any, who controls the Company within the meaning of the Securities Act.

 

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11.
Representations and Agreements to Survive Delivery. All representations and warranties of the Company herein or in
certificates delivered pursuant hereto shall remain operative and in full force and effect regardless of (i) any investigation
made by or on behalf of Canaccord, any controlling persons, or the Company (or any of their respective officers, directors or controlling
persons), (ii) delivery and acceptance of the Placement Shares and payment therefor or (iii) any termination of this
Agreement.

 

12.
Termination.

 

		(a)	Canaccord shall have the right to terminate this Agreement at any time by giving notice as hereinafter specified if (i) any
Material Adverse Effect has occurred, or any development that is reasonably expected to cause a Material Adverse Effect has occurred
or any other event has occurred which, in the sole judgment of Canaccord, may materially impair Canaccord’s ability to proceed
with the offering to sell the Shares, (ii) the Company shall have failed, refused or been unable, at or prior to any Settlement
Date, to perform any agreement on its part to be performed hereunder, (iii) any other condition of Canaccord’s obligations
hereunder is not fulfilled, or (iv) any suspension or limitation of trading in the Common Shares of the Company on the NASDAQ
Capital Market shall have occurred. Any such termination shall be without liability of any party to any other party except that
the provisions of Section 7(i) (Expenses), Section 10 (Indemnification), Section 11 (Survival
of Representations), Section 12(f) (Termination), Section 17 (Applicable Law; Consent to Jurisdiction) and Section 18
(Waiver of Jury Trial) hereof shall remain in full force and effect notwithstanding such termination. If Canaccord elects to terminate
this Agreement as provided in this Section 12(a), Canaccord shall provide the required notice as specified in Section 13
(Notices).

 

		(b)	The Company shall have the right to terminate this Agreement in its sole discretion at any time by giving ten (10) days’
notice as hereinafter specified. Any such termination shall be without liability of any party to any other party except that the
provisions of Section 7(i), Section 10, Section 11, Section 12(f), Section 17
and Section 18 hereof shall remain in full force and effect notwithstanding such termination.

 

		(c)	In addition to, and without limiting Canaccord’s rights under Section 12(a), Canaccord shall have the right
to terminate this Agreement in its sole discretion at any time after the date of this Agreement by giving ten (10) days’
notice as hereinafter specified. Any such termination shall be without liability of any party to any other party except that the
provisions of Section 7(i), Section 10, Section 11, Section 12(f), Section 17
and Section 18 hereof shall remain in full force and effect notwithstanding such termination.

 

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		(d)	This Agreement shall remain in full force and effect unless terminated pursuant to Sections 12(a), 12(b)
or 12(c) above or otherwise by mutual agreement of the parties; provided that any such termination by mutual agreement shall
in all cases be deemed to provide that Section 7(i), Section 10, Section 11, Section 12(f),
Section 17 and Section 18 shall remain in full force and effect.

 

		(e)	Any termination of this Agreement shall be effective on the date specified in such notice of termination; provided that such
termination shall not be effective until the close of business on the date of receipt of such notice by Canaccord or the Company,
as the case may be. If such termination shall occur prior to the Settlement Date for any sale of Placement Shares, such Placement
Shares shall settle in accordance with the provisions of this Agreement.

 

		(f)	In the event that the Company terminates this Agreement, as permitted under Section 12(b), the Company shall be
under no continuing obligation pursuant to this Agreement to utilize the services of Canaccord in connection with any sale of securities
of the Company or to pay any compensation to Canaccord other than compensation with respect to sales of Placement Shares subscribed
on or before the termination date and the Company shall be free to engage other placement agents and underwriters from and after
the termination date with no continuing obligation to Canaccord.

 

13.
Notices. All notices or other communications required or permitted to be given by any party to any other party pursuant
to the terms of this Agreement shall be in writing and if sent to Canaccord, shall be delivered to:

 

Canaccord Genuity LLC

99 High Street, Suite 1200

Boston, Massachusetts 02110

Attention: ECM, General Counsel

E-mail: jpardi@canaccordgenuity.com; aviles@canaccordgenuity.com

 

With a copy to:

 

Goodwin Procter LLP

The New York Times Building

620 Eighth Avenue

New York, NY 10018

Attention: Thomas S. Levato, Esq.

E-mail: TLevato@goodwinlaw.com

 

or if sent to the
Company, shall be delivered to:

 

Helios and Matheson Analytics Inc.

Empire State Building

350 5th Avenue

New York, NY 10118

Attention: Chief Executive Officer

E-mail: tfarnsworth@hmny.com

 

With a copy to:

 

Greenberg Traurig LLP

1840 Century Park East, Suite 1900

Los Angeles, California 90067

Attention: Kevin Friedmann, Esq.

E-mail: friedmannk@gtlaw.com

 

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Each party to this Agreement may change
such address for notices by sending to the other party to this Agreement written notice of a new address for such purpose. Each
such notice or other communication shall be deemed given (i) when delivered personally or by verifiable facsimile transmission
(with an original to follow) on or before 4:30 p.m., eastern time, on a Business Day or, if such day is not a Business Day, on
the next succeeding Business Day, (ii) on the next Business Day after timely delivery to a nationally-recognized overnight
courier, (iii) on the Business Day actually received if deposited in the U.S. mail (certified or registered mail, return receipt
requested, postage prepaid), and (iv) if sent by email, on the Business Day on which receipt is confirmed by the individual to
whom the notice is sent, other than via auto-reply. For purposes of this Agreement, “Business Day” shall mean
any day on which commercial banks in New York City are open for business.

 

14.
Successors and Assigns. This Agreement shall inure to the benefit of and be binding upon the Company and Canaccord
and their respective successors and the affiliates, controlling persons, officers and directors referred to in Section 10
hereof. References to any of either of the parties contained in this Agreement shall be deemed to include the successors and permitted
assigns of such party. Nothing in this Agreement, express or implied, is intended to confer upon any party other than the parties
hereto or their respective successors and permitted assigns any rights, remedies, obligations or liabilities under or by reason
of this Agreement, except as expressly provided in this Agreement. Neither party may assign its rights or obligations under this
Agreement without the prior written consent of the other party, provided, however, that Canaccord may assign its rights and obligations
hereunder to an affiliate of Canaccord without obtaining the Company’s consent.

 

15.
Adjustments for Share Splits. The parties acknowledge and agree that all share-related numbers contained in this
Agreement shall be adjusted to take into account any share split, share dividend or similar event effected with respect to the
Shares.

 

16.
Entire Agreement; Amendment; Severability. This Agreement (including all schedules and exhibits attached hereto and
Placement Notices issued pursuant hereto) constitutes the entire agreement and supersedes all other prior and contemporaneous agreements
and undertakings, both written and oral, among the parties hereto with regard to the subject matter hereof. Neither this Agreement
nor any term hereof may be amended except pursuant to a written instrument executed by the Company and Canaccord. In the event
that any one or more of the provisions contained herein, or the application thereof in any circumstance, is held invalid, illegal
or unenforceable, the validity, legality and enforceability of any such provision in every other respect and of the remaining provisions
contained herein shall not be affected or impaired thereby.

 

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17.
Applicable Law; Consent to Jurisdiction. This Agreement shall be governed by, and construed in accordance
with, the internal laws of the State of New York without regard to the principles of conflicts of laws. Each party hereby irrevocably
submits to the non-exclusive jurisdiction of the state and federal courts sitting in the City of New York, borough of Manhattan,
for the adjudication of any dispute hereunder or in connection with any transaction contemplated hereby, and hereby irrevocably
waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction
of any such court, that such suit, action or proceeding is brought in an inconvenient forum or that the venue of such suit, action
or proceeding is improper. Each party hereby irrevocably waives personal service of process and consents to process being served
in any such suit, action or proceeding by mailing a copy thereof (certified or registered mail, return receipt requested) 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 manner permitted by law. 

 

18.
Waiver of Jury Trial. The Company and Canaccord hereby irrevocably waive any right either may have to a trial by
jury in respect of any claim based upon or arising out of this agreement or any transaction contemplated hereby.

 

19.
Absence of Fiduciary Duties. The parties acknowledge that they are sophisticated in business and financial matters
and that each of them is solely responsible for making its own independent investigation and analysis of the transactions contemplated
by this Agreement. They further acknowledge that Canaccord has not been engaged by the Company to provide, and has not provided,
financial advisory services in connection with the terms of the offering and sale of the Shares nor has Canaccord assumed at any
time a fiduciary relationship to the Company in connection with such offering and sale. The parties also acknowledge that the provisions
of this Agreement fairly allocate the risks of the transactions contemplated hereby among them in light of their respective knowledge
of the Company and their respective abilities to investigate its affairs and business in order to assure that full and adequate
disclosure has been made in the Registration Statement and the Prospectus (and any amendments and supplements thereto). The Company
hereby waives, to the fullest extent permitted by law, any claims it may have against Canaccord for breach of fiduciary duty or
alleged breach of fiduciary duty and agrees Canaccord shall have no liability (whether direct or indirect) to the Company in respect
of such a fiduciary duty claim or to any person asserting a fiduciary duty claim on behalf of or in right of the Company, including
shareholders, employees or creditors of Company.

 

20.
Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original,
but all of which together shall constitute one and the same instrument. Delivery of an executed Agreement by one party to the other
may be made by facsimile or email transmission.

 

    -34-

     

    

 

If the foregoing accurately
reflects your understanding and agreement with respect to the matters described herein please indicate your agreement by countersigning
this Agreement in the space provided below.

 

	 	Very truly yours,
	 	 
	 	HELIOS AND MATHESON INC.
	 	 	 
	 	By:	/s/ Theodore Farnsworth
	 	Name:	Theodore Farnsworth
	 	Title:	Chief Executive Officer
	 	 	 
	 	ACCEPTED
	 	as of the date first-above written:
	 	 
	 	CANACCORD GENUITY LLC
	 	 	 
	 	By:	/s/ Jennifer Pardi
	 	Name:	Jennifer Pardi
	 	Title:	Sr. Managing Director

 

[Signature page to Equity Distribution
Agreement]

 

     

     

    

 

SCHEDULE 2

 

SUBSIDIARIES

 

Zone Technologies, Inc.

 

MoviePass Inc.

 

Helios & Matheson Global Services Private Limited

 

HMNY Zone Loan LLC

 

     

     

    

 

EXHIBIT A

 

OFFICER’S
CERTIFICATE

 

 

I, [name of executive
officer], the [title of executive officer] of Helios and Matheson Inc., a Delaware corporation (the “Company”),
do hereby certify in such capacity and on behalf of the Company pursuant to Section 7(p) of the Equity Distribution Agreement
dated April 18, 2018 (the “Distribution Agreement”) between the Company and Canaccord Genuity LLC, to the best
of my knowledge that:

 

(i) The
representations and warranties of the Company in Section 6 of the Distribution Agreement (A) to the extent such representations
and warranties are subject to qualifications and exceptions contained therein relating to materiality or Material Adverse Effect,
are true and correct on and as of the date hereof with the same force and effect as if expressly made on and as of the date hereof,
except for those representations and warranties that speak solely as of a specific date and which were true and correct as of such
date, and (B) to the extent such representations and warranties are not subject to any qualifications or exceptions, are true and
correct in all material respects as of the date hereof as if made on and as of the date hereof with the same force and effect as
if expressly made on and as of the date hereof except for those representations and warranties that speak solely as of a specific
date and which were true and correct as of such date; and

 

(ii) The
Company has complied with all agreements and satisfied all conditions on its part to be performed or satisfied pursuant to the
Distribution Agreement at or prior to the date hereof.

 

	Date: ______________	By:	 
		 	Name:
		 	Title:

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