Document:

Exhibit
10.1

 

ADDENDUM

 

THIS
ADDENDUM, dated as of July 19, 2022, (this “Agreement”), is by and among and each purchaser identified
on Schedule A hereto (each, including its successors and permitted assigns, a “Purchaser” and collectively,
the “Purchasers”), ____________, (“Collateral Agent”), and Soluna Holdings, Inc.
(f/k/a Mechanical Technology, Incorporated), a Nevada corporation (the “Company” and together with the
Lenders each a “Party” and collectively the “Parties”).

 

W
I T N E S S E T H:

 

WHEREAS,
the Company and Purchasers entered into a Securities Purchase Agreement dated October 25, 2021 (the “SPA”),
pursuant to which the Company issued to the Purchaser, as set forth on Schedule A, secured convertible notes in the original aggregate
principal amount of $16,304,348 (collectively, the “Notes”), Class A, Class B and Class C common stock purchase
warrants (collectively, the “Warrants”) to purchase up to an aggregate of 1,776,073 shares of Common Stock;
and

 

WHEREAS,
the Obligations are secured by a senior security interest granted pursuant to a Security Agreement dated as of October 25, 2021
(the “Security Agreement”) which granted to the Collateral Agent a security interest in the assets of the Company
and its subsidiaries (the “Collateral”) as set forth in the Security Agreement. Capitalized Terms not defined herein
shall have the meaning set forth in the SPA and other Transaction Documents (as defined in the SPA).

 

NOW
THEREFORE, in consideration of the mutual benefits accruing to Parties hereunder and other good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, the parties hereto do hereby agree as follows:

 

AGREEMENTS

 

1.       
Project Dorothy Entities. The Company desires to enter into a series of transactions with Soluna SLC Fund I Projects Holdco
LLC, a Delaware limited liability company (“Spring Lane”), pursuant to which Soluna Computing, Inc. (“SCI”),
a wholly owned subsidiary of the Company, has formed a wholly-owned subsidiary, Soluna DV Devco, LLC to act as a project development
entity (“Dorothy Devco Entity”), which will own the Class A equity interests of a special purpose entity, Soluna
DVSL ComputeCo, LLC (“Dorothy JV Project Entity”) and manage the development of the project commonly referred
to as “Dorothy” (“Project Dorothy”), and Company will own Class B equity interests of Dorothy JV
Project Entity, in each case pursuant to the documents annexed hereto as Exhibit 1 (the “Dorothy Documents”).
In addition, SCI has formed a wholly-owned subsidiary, Soluna DV ComputeCo, LLC (“Dorothy Project Entity”,
and together with Dorothy Devco Entity and Dorothy JV Project Entity, each a “Dorothy Entity and collectively, the
“Dorothy Entities”) as part of Project Dorothy, which, subject to the Purchasers consent, such consent not
to be unreasonably withheld, conditioned or delayed, may be restructured after the date hereof to provide for certain equity interests
to be owned directly by Dorothy Devco Entity and/or the Company instead of SCI. Subject to (i) SCI pledging all of its equity
interests in Dorothy Devco Entity, (ii) SCI pledging all of its equity interests in Dorothy Project Entity, (iii) the Company
pledging all of its Class B interests in Dorothy JV Project Entity and (iv) the Company pledging all of its equity interests in
Dorothy Project Entity, if any, in each case to the Collateral Agent pursuant to the Security Agreement, the Purchasers consent
to each Dorothy Entity not being a Subsidiary Guarantor (as defined in the Security Agreement) or a Debtor (as defined in the
Security Agreement). The Dorothy Documents may not be amended, nor may the Company or any other Dorothy entity waive any of its
rights under the Dororthy Documents, without the written consent of the Purchasers if such amendment or waiver is materially adverse
to the equity interests pledged to the Collateral Agent.

 

    1

     

    

 

2.       
First Release Collateral, Second Release Collateral and Third Release Collateral; Collateral.

 

(a)       The
property described on Part I of Schedule 2 attached hereto (the “First Release Collateral Schedule”) is hereinafter
referred to as the “First Release Collateral”. The property described on Part II of Schedule 2 attached hereto
is hereinafter referred to as the “Second Release Collateral”. The property described on Part III of Schedule
2 attached hereto is hereinafter referred to as the “Third Release Collateral”. The net cash proceeds received
by the Company or SCI after the date hereof from any capital raising transactions permitted by the Transaction Documents (including
for the avoidance of doubt this Addendum) is hereinafter referred to as “Designated Cash Proceeds”.

 

(b)      Designated
Cash Proceeds may be used for the purposes of construction of the Facility and payment of Open Facility Contracts (as such term
are defined on Schedule 2). For the avoidance of doubt, no Collateral (except for Designated Cash Proceeds) may be used to (i)
pay for any portion of, or otherwise exercise, any Open Facility Contracts (as defined on the First Release Collateral Schedule)
or (ii) pay fees, costs and expenses in connection with the construction of the Facility (as defined in the First Release Collateral
Schedule).

 

3.       
Escrow. The Company, Purchasers and Sullivan & Worcester LLP, will enter into the escrow agreement annexed hereto as
Exhibit 3 to govern the funds to be deposited as described below.

 

4.       
Initial Note Repricing. Subject to the approval of NASDAQ, the Conversion Price of the Notes will be reduced (subject to
further reduction as set forth in the Notes) to the 20% discount to the 5-day VWAP for the five Trading Days after the date (such
date the “Approval Date”) NASDAQ’s approval is obtained (the “First Reset”). The Company
represents that based on the number of shares previously converted by the Purchasers and assuming NASDAQ approves its plan that,
based on the current price of the Company’s Common Stock, there are sufficient shares available to complete the First Reset.
Upon the First Reset, $1,100,000 of the Notes, pro rata as set forth on Schedule A, shall be converted (“First Conversion”)
and the Company shall deposit $1,000,000 (the “First Deposit”) into escrow pursuant to the Escrow Agreement.
Upon the First Reset and the Company having deposited the First Deposit into escrow pursuant to the Escrow Agreement and the First
Release Collateral being transferred to one or more of the Dorothy Entities, (a) the Collateral Agent’s lien on, and security
interest in, the First Release Collateral shall be automatically terminated, discharged and released and (b) the First Release
Collateral (including without limitation the transfer, use and disposition thereof) shall not be subject to any covenant, restriction,
limitation, condition or other provision of the SPA and the other Transaction Documents. No later than the 50th Trading
Day (“First Reconcile Date”) after the Approval Date, the Company shall deposit an additional $950,000 (“Second
Deposit”) into escrow pursuant to the Escrow Agreement. Commencing on the 51st Trading Day after the Approval
Date, the Purchasers may require the Company to redeem up to $2,200,000 worth of the Notes, pro rata as set forth on Schedule
A, at the rate of $1.20 for every $1.00 owed, less any amount converted by the Purchasers between Approval Date and First Reconcile
Date, not including the First Conversion (the “First Tranche”). The First Deposit and Second Deposit shall be held
in escrow for at least five (5) Trading Days after the First Reconcile Date. Following the First Tranche $3,300,000 of the Notes
will be converted or redeemed.

 

    2

     

    

 

5.       
Second Note Repricing. Subject to the approval of NASDAQ, approval by the Company’s shareholders and provided an
Event of Default has not occurred or been waived by the Purchasers, on the sooner of the fifth (5th) Trading Day after
the First Reconcile Date or full payment of any redemption owed pursuant to Section 4 above, the Conversion Price of the Notes
will be reduced (but not increased) to the 20% discount to the prior 5-day VWAP (the “Second Reset”). Upon
the Second Reset and subject to the beneficial ownership limits in the Notes, pro rata as set forth on Schedule A, $1,100,000
of the Notes shall be converted (“Second Conversion”) and the Company shall deposit up to an additional $1,000,000
(the “Third Deposit”) into escrow pursuant to the Escrow Agreement, provided that if such deposit would result
in more than $1,950,000 being held in escrow the Company would only be required to deposit such amount necessary to have $1,950,000
being held in escrow; provided, further that if either party elects to pause the second tranche as provided for in Schedule 8
to this Agreement, then the Company shall have the right to withdraw any escrowed amounts to fund Company operations; provided,
further, however, that the Purchasers shall be under no obligation to resume the second tranche until the Company has restored
such amounts to be held in escrow. Upon the Second Reset and the Company having deposited the Third Deposit into escrow pursuant
to the Escrow Agreement, (a) the Collateral Agent’s lien on, and security interest in, the Second Release Collateral shall
be automatically terminated, discharged and released and (b) the Second Release Collateral (including without limitation the transfer,
use and disposition thereof) shall not be subject to any covenant, restriction, limitation, condition or other provision of the
SPA and the other Transaction Documents. No later than the 45th Trading Day (“Second Reconcile Date”)
after the Second Reset, the Company shall deposit an up to additional $950,000 (“Fourth Deposit”) into escrow
pursuant to the Escrow Agreement, provided that if such deposit would result in more than $1,950,000 being held in escrow the
Company would only be required to deposit such amount necessary to have $1,950,000 being held in escrow. Commencing on the day
after the Second Reconcile Date, the Purchasers may require the Company to redeem up to $2,200,000 worth of the Notes, pro rata
as set forth on Schedule A, at the rate of $1.20 for every $1.00 owed, less any amount converted by the Purchasers between First
Reconcile Date and Second Reconcile Date, not including the Second Conversion (the “Second Tranche”). In the event
the Fourth Deposit is not timely made the Collateral’s Agent release of its lien on the Second Release Collateral shall
be void ab initio. The Third Deposit and Fourth Deposit shall be held in escrow for at least five (5) Trading Days after the Second
Reconcile Date. Following the Second Tranche another $3,300,000 of the Notes will be converted or redeemed.

 

6.       
Third Note Repricing. Subject to the approval of NASDAQ, approval by the Company’s shareholders and provided an Event
of Default has not occurred or been waived by the Purchasers, on the sooner of the fifth (5th) Trading Day after the
Second Reconcile Date or full payment of any redemption owed pursuant to Section 5 above, the Conversion Price of the Notes will
be reduced (but not increased) to the 20% discount to the prior 5-day VWAP (the “Third Reset”). Upon the Third
Reset and subject to the beneficial ownership limits in the Notes, pro rata as set forth on Schedule A, $1,100,000 of the Notes
shall be converted (“Third Conversion”) and the Company shall deposit up to an additional $1,000,000 (the “Fifth
Deposit”) into escrow pursuant to the Escrow Agreement, provided that if such deposit would result in more than $1,950,000
being held in escrow the Company would only be required to deposit such amount necessary to have $1,950,000 being held in escrow;
provided, further that if either party elects to pause the second tranche as provided for in Schedule 8 to this Agreement, then
the Company shall have the right to withdraw any escrowed amounts to fund Company operations; provided, further, however, that
the Purchasers shall be under no obligation to resume the third tranche until the Company has restored such amounts to be held
in escrow. Upon the Third Reset and the Company having deposited the Fourth Deposit into escrow pursuant to the Escrow Agreement,
(a) the Collateral Agent’s lien on, and security interest in, the Second Release Collateral shall be automatically terminated,
discharged and released and (b) the Third Release Collateral (including without limitation the transfer, use and disposition thereof)
shall not be subject to any covenant, restriction, limitation, condition or other provision of the SPA and the other Transaction
Documents. No later than the 45th Trading Day (“Third Reconcile Date”) after the Third Reset, the
Company shall deposit up to an additional $950,000 (“Sixth Deposit”) into escrow pursuant to the Escrow Agreement,
provided that if such deposit would result in more than $1,950,000 being held in escrow the Company would only be required to
deposit such amount necessary to have $1,950,000 being held in escrow. Commencing on the day after the Third Reconcile Date, the
Purchasers may require the Company to redeem up to $2,200,000 worth of the Notes, pro rata as set forth on Schedule A, at the
rate of $1.20 for every $1.00 owed, less any amount converted by the Purchasers between Second Reconcile Date and Third Reconcile
Date, not including the Third Conversion (the “Third Tranche”). In the event the Sixth Deposit is not timely made
the Collateral’s Agent release of its lien on the Third Release Collateral shall be void ab initio. The Fifth Deposit and
Sixth Deposit shall be held in escrow for at least five (5) Trading Days after the Third Reconcile Date. Following the Third Tranche
another $3,300,000 of the Notes will be converted or redeemed.

 

    3

     

    

 

7.       
Warrant Repricing. The exercise price of the Class A Warrants, Class B Warrants, and the 85,000 Consent Warrants issued
pursuant to Section 11 of the Consent and Waiver dated January 13, 2022, shall be reduced to $9.50 per share.

 

8.       
Equity Raise. Except as set forth on Schedule 8, the Company shall not engage in any capital raising transactions.

 

9.       
Extension. The Company shall have a one-time option to extend the Second Reset or Third Reset 45 days.

 

10.      Exchange.
Contemporaneously or before the First Reset, the Company and Purchasers, pro rata as set forth on Schedule A, agree to exchange
the Class C warrants for 296,013 shares of the Company’s common stock (“New Shares”). The New Shares
and all Conversion Shares shall be issued pursuant to an exemption from registration under Section 3(a)(9) of the Securities Act
of 1933, as amended. The Company acknowledges that the Purchasers’ holding period of the New Shares shall tack for Rule
144 purposes back to October 25, 2021, and the holding period of all other securities of the Company held by the Purchasers is
unaffected by this Agreement and the transaction contemplated herein. Subject to the Purchasers’ providing customary representations
letter, the Company, at its expense, shall provide any legal opinions necessary for the transfer agent to remove the legend and
for Purchasers to sell the New Shares pursuant to any applicable exemption from registration or safe harbor. The New Shares shall
be delivered contemporaneously with the execution of this Agreement.

 

11.      Registration
Statement. The Company shall amend the prospectus supplement filed pursuant Rule 424(b)(7) to Registration Statement No. 333-261427
(“Registration Statement”) or the Registration Statement itself, as necessary, to reflect the terms of this Agreement
to include all additional Conversion Shares and the New Shares.

 

12.      Approvals.
Within 3 business days after execution of this Agreement, the Company will consult with and submit the necessary documentation
to obtain approvals with NASDAQ and thereafter, if necessary, make such filings with the Securities and Exchange Commission to
obtain the necessary stockholder approvals in accordance with NASDAQ Rule 5635(d). The Company shall use its reasonable best efforts
to obtain such NASDAQ and stockholder approval no later than 45 days after the date of this Agreement. If NASDAQ approval is not
obtained within 45 days after the date of this Agreement, the Purchasers may cancel this Agreement. If the Company does not obtain
stockholder approval at the first meeting, the Company shall call a meeting every three months thereafter to seek stockholder
approval until the earlier of the date stockholder approval is obtained or the Notes and Warrants are no longer outstanding. For
purposes of this Agreement, a “business day” shall be any day other than Saturday, Sunday, or a day on which the Federal
Reserve Bank of New York is closed.

 

13.      Public
Disclosure. Within one business day after execution of this Agreement, the Company shall file a form 8-K with Securities and
Exchange Commission, disclosing this Agreement, which shall be an exhibit to such filing. The Company shall also file additional
form 8-Ks within one (1) Trading Day of First Reset, Second Reset and Third Reset.

 

    4

     

    

14.      Event
of Default. A breach of the terms of this Agreement shall be an Event of Default under the Notes; provided, however that the
Company’s failure to obtain stockholder approval as provided in Section 12 hereof shall not be considered an Event of Default
under the Notes.

 

15.      Representations.
The Company warrants and represents that all the warranties and representations of the Company set forth in the Transaction Documents
are true and accurate in all material respects as of the date of this Agreement and will be as of the Approval Date, First Reconcile
Date and Second Reconcile Date. This Agreement shall be included in the definition of “Transaction Documents” in the
SPA.

 

16.      Fees.
The Company shall pay $20,000 to Grushko & Mittman, P.C. (“G&M”).

 

17.      Governing
Law; Jurisdiction; Waiver of Jury Trial. (a) This Agreement shall be governed by and construed under the laws of the State
of New York applicable to contracts made and to be performed entirely within the State of New York. Each party hereby irrevocably
submits to the exclusive jurisdiction of the state and federal courts sitting in the State and County of New York for the adjudication
of any dispute hereunder or in connection herewith or therewith or with any transaction contemplated hereby or thereby, 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. (b) EACH PARTY TO THIS AGREEMENT ACKNOWLEDGES AND AGREES THAT ANY DISPUTE OR CONTROVERSY
THAT MAY ARISE UNDER THIS AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES AND, THEREFORE, EACH PARTY HEREBY IRREVOCABLY
AND UNCONDITIONALLY WAIVES ANY RIGHT SUCH PARTY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY
ARISING OUT OF OR RELATING TO THIS AGREEMENT, OR THE BREACH, TERMINATION OR VALIDITY OF THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED
HEREBY. EACH PARTY TO THIS AGREEMENT CERTIFIES AND ACKNOWLEDGES THAT (I) NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY
HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING
WAIVER, (II) EACH SUCH PARTY UNDERSTANDS AND HAS CONSIDERED THE IMPLICATIONS OF THIS AGREEMENT AND HAS HAD AN OPPORTUNITY TO SEEK
SEPARATE COUNSEL OF ITS OWN CHOICE TO REVIEW THIS AGREEMENT, (III) EACH SUCH PARTY MAKES THIS WAIVER VOLUNTARILY, AND (IV) EACH
SUCH PARTY HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS
SECTION.

 

18.      Injunctive
Relief. Each Party acknowledges and agrees that a breach by it of its obligations hereunder will cause irreparable harm to
the other and that the remedy or remedies at law for any such breach will be inadequate and agrees, in the event of any such breach,
in addition to all other available remedies, the non-breaching party shall be entitled to an injunction restraining any breach
and requiring immediate and specific performance of such obligations without the necessity of showing economic loss or the posting
of any bond.

 

19.      Severability.
In the event that any provision of this Agreement becomes or is declared by a court of competent jurisdiction to be illegal, unenforceable
or void, this Agreement shall continue in full force and effect without said provision; provided that in such case the
parties shall negotiate in good faith to replace such provision with a new provision which is not illegal, unenforceable or void,
as long as such new provision does not materially change the economic benefits of this Agreement to the Parties.

 

    5

     

    

 

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

 

21.      Counterparts.
This Agreement may be executed in any number of counterparts, each of which shall be deemed an original, and all of which together
shall constitute one and the same instrument. Delivery of executed counterparts of this Agreement by facsimile or other electronic
format (including via .pdf and DocuSign) shall be effective as an original.

 

22.      Notices.
All notices shall be delivered in accordance with the notice provisions of the SPA and Security Agreement.

 

23.      Entire
Agreement; Amendments. This Agreement constitutes the entire agreement between the parties with regard to the subject matter
hereof and thereof, superseding all prior agreements or understandings, whether written or oral, between or among the parties.
Except as specifically modified herein, the Transaction Documents remain in full force and effect without any waivers or modifications.
No amendment, modification or other change to this Agreement or waiver of any agreement or other obligation of the parties under
this Agreement may be made or given unless such amendment, modification or waiver is set forth in writing and is signed by the
Parties. Any waiver or consent shall be effective only in the specific instance and for the specific purpose for which given.
As used in this Agreement, any consent of the Purchasers shall be determined in accordance with the terms of the SPA.

 

[Signatures
begin on next page]

 

    6

     

    

IN
WITNESS WHEREOF, the parties have caused this Intercreditor Agreement to be duly executed as of the day and year first above written.

 

COMPANY

 

	Soluna Holdings, Inc.	 
	 	 
	 	 
	By:	 
	Its:	 

 

PURCHASERS

 

	By:	 	 	 	 
	Name:	 	By:	 
	Title:	 	Name:
	 	 	 	Title:
	 	 	 	 	 

 

	By:	 	 	 
	Name:	 	 
	Title:	 	 
	 	 	 	 
	 	 	 	 
	By:	 	 	 
	Name:	 	 
	Title:	 	 

 

COLLATERAL
AGENT

 

	By:	 	 
	Name:	 
	Title:	 

 

    7

     

    

Schedule
A

 

    8Exhibit 10.2

 

SECURITIES
PURCHASE AGREEMENT

 

This
SECURITIES PURCHASE AGREEMENT (the “Agreement”), dated as of July 19, 2022, is by and among Soluna Holdings,
Inc., a Nevada corporation with headquarters located at 325 Washington Avenue Extension, Albany, New York 12205 (the “Company”),
and the investors who are signatories to this Agreement (each, a “Purchaser” and collectively, the “Purchasers”).

 

RECITALS

 

A.
The Company and the Purchasers desire to enter into this transaction to purchase the Preferred Shares and Warrants (each as defined
hereafter) as set forth herein.

 

B.
The Company has authorized a new series of preferred stock of the Company designated as its Series B Convertible Preferred Stock,
par value $0.0001 per share, the terms of which will be set forth in the Certificate of Designations of Preferences, Rights and
Limitations for such series of preferred stock, expected to be filed with the Secretary of State of Nevada on or prior to the
Closing, in the form attached hereto as Exhibit A (the “Certificate of Designations”) (together
with any shares of preferred stock issued in replacement thereof in accordance with the terms thereof, the “Series B
Preferred Stock”), which Series B Preferred Stock is convertible into shares of the Company’s Common Stock.

 

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

 

D.
Each Purchaser wishes to purchase, and the Company wishes to sell at the Closing, upon the terms stated in this Agreement (a)
Preferred Shares and (b) Warrants.

 

AGREEMENT

 

NOW,
THEREFORE, in consideration of the premises and the mutual covenants contained herein and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the Company and each Purchaser (severally and not jointly) hereby
agree as follows:

 

ARTICLE
I.

DEFINITIONS

 

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

 

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

 

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

 

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

 

     

     

    

 

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

 

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

 

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

 

“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; provided that banks shall not be deemed to be authorized or obligated to be closed due to
a “shelter in place,” “non-essential employee” or similar closure of physical branch locations at the
direction of any governmental authority if such banks’ electronic funds transfer systems (including for wire transfers)
are open for use by customers on such day.

 

“Certificate
of Designations” shall have the meaning ascribed to such term in the Recitals.

 

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

 

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

 

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

 

“Common
Stock” means the shares of common stock of the Company, par value $0.0001 per share, and any other class of securities
into which such securities may hereafter be reclassified or changed.

 

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

 

“Company
Counsel” means Sullivan & Worcester LLP, with offices located at 1633 Broadway, New York, New York 10019.

 

“Conversion
Shares” means the shares of Common Stock issuable by the Company upon conversion of the Preferred Shares.

 

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

 

“Effectiveness
Date” shall have the meaning ascribed to such term in Section 4.16(a).

 

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

 

    2 

     

    

 

“Event”
shall have the meaning ascribed to such term in Section 4.16(b).

 

“Event
Date” shall have the meaning ascribed to such term in Section 4.16(b).

 

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

 

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

 

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

 

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

 

“Holders”
shall have the meaning ascribed to such term in Section 4.16(b).

 

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

 

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

 

“Leak-Out
Agreement” means that certain Leak-Out Agreement between the Company and the Purchaser dated on or about the date of
this Agreement.

 

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

 

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

 

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

 

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

 

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

 

“Preferred
Shares” means the shares of Series B Preferred Stock issuable by the Company to the Purchasers pursuant to this Agreement.

 

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

 

    3 

     

    

 

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

 

“Registrable
Securities” shall have the meaning ascribed to such term in Section 4.16(b).

 

“Regulation
D” remains Regulation Promulgated under the Securities Act.

 

“Resale
Registration Statement” shall have the meaning ascribed to such term in Section 4.16(a).

 

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

 

“Right
of First Refusal” means the right, but not an obligation, of the Purchaser, or its permitted transferees or assigns,
to purchase some or all of the debt or equity securities with respect to an additional issues of securities by the Company, on
the terms and conditions set forth in a bona fide offer from a third party to the Company.

 

“Rule
144” means Rule 144 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended or interpreted
from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same purpose
and effect as such Rule.

 

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

 

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

 

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

 

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

 

“Standard
Settlement Period” means the standard settlement period, expressed in a number of Trading Days, on the Company’s
primary Trading Market with respect to the Common Stock as in effect on the date of delivery of a certificate representing Warrant
Shares issued with a restrictive legend.

 

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

 

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

 

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

 

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

 

    4 

     

    

 

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

 

“Transfer
Agent” means American Stock Transfer & Trust Company, LLC, the current transfer agent of the Company, with a mailing
address of 6201 15th Avenue, Brooklyn, NY 11219 and any successor transfer agent of the Company.

 

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

 

“Warrants”
means, the Common Stock Purchase Warrants, delivered to the Purchasers at the Closing in accordance with Section 2.2(a) hereof,
which Warrants shall have a term equal to five and one-half (5 1/2) years after the Closing Date, in the form of Exhibit
B attached hereto.

 

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

 

ARTICLE
II.

PURCHASE
AND SALE

 

2.1
Closing. On the Closing Date, upon the terms and subject to the conditions set forth herein, substantially concurrent with
the execution and delivery of this Agreement by the parties hereto, the Company agrees to sell, and the Purchasers, severally
and not jointly, agree to purchase, up to an aggregate of 62,500 Preferred Shares and Warrants to purchase up to 1,000,000 Warrant
Shares. Each Purchaser’s Subscription Amount as set forth on the signature page hereto executed by such Purchaser shall
be made available for “Delivery Versus Payment” settlement with the Company or its designee. The Company shall deliver
to each Purchaser its respective Preferred Shares and Warrants as determined pursuant to Section 2.2(a), and the Company and each
Purchaser shall deliver the other items set forth in Section 2.2 deliverable at the Closing. Upon satisfaction of the covenants
and conditions set forth in Sections 2.2 and 2.3, the Closing shall occur at the offices of Company Counsel or such other location
as the parties shall mutually agree or virtually in accordance with the provisions of this Agreement.

 

    5 

     

    

 

2.2
Deliveries.

 

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

 

(i)
this Agreement duly executed by the Company;

 

(ii)
the Leak-Out Agreement duly executed by the Company;

 

(iii)
the Company’s wire instructions, on Company letterhead and executed by the Chief Executive Officer or Chief Financial Officer;

 

(iv)
a certificate in the name of each Purchaser for Preferred Shares equal to the number of Preferred Shares as set forth on the signature
page hereto executed by each such Purchaser; and

 

(v)
a Warrant registered in the name of such Purchaser to purchase up to the number of Warrant Shares as set forth on the signature
page hereto executed by such Purchaser, with an exercise price equal to $10.00 per share, subject to adjustment therein.

 

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

 

(i)
this Agreement duly executed by such Purchaser;

 

(ii)
the Leak-Out Agreement duly executed by such Purchaser; and

 

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

 

2.3
Closing Conditions.

 

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

 

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

 

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

 

(iii)
Purchaser shall have delivered to the Company all outstanding warrants of the Company held by Purchaser for cancellation; and

 

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

 

    6 

     

    

 

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

 

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

 

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

 

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

 

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

 

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

 

(vi)
The Company shall have filed the Certificate of Designations with the Secretary of State of Nevada and shall have delivered to
each Purchaser evidence of the filing, and acceptance of such Certificate of Designations;

 

(vii)
The Company shall have obtained all governmental, regulatory or third party consents and approvals, if any, necessary for the
sale of the Securities; and

 

(viii)
The Company shall have delivered to the Purchasers such other documents relating to the transactions contemplated by this Agreement
as such Purchasers or their legal counsel may reasonably request, including but not limited to an Officer’s Certificate,
and Secretary’s Certificate.

 

ARTICLE
III. 

REPRESENTATIONS
AND WARRANTIES

 

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

 

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

 

    7 

     

    

 

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

 

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

 

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

 

    8 

     

    

 

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

 

(f)
Issuance of the Securities; Registration. The Securities are duly authorized and, when issued and paid for in accordance
with the applicable Transaction Documents, will be duly and validly issued, fully paid and nonassessable, free and clear of all
Liens imposed by the Company. The Company has reserved from its duly authorized capital stock the maximum number of shares of
Common Stock, including Conversion Shares and Warrant Shares, issuable pursuant to this Agreement. The Warrant Shares, when issued
in accordance with the terms of the Warrants, will be validly issued, fully paid and nonassessable, free and clear of all liens
imposed by the Company. The Conversion Shares, when converted, will be issued in accordance with the Certificate of Designations
and will be validly issued, fully paid and nonassessable, free and clear of all Liens imposed by the Company.

 

(g)
Capitalization. The capitalization of the Company as of the date hereof is as set forth on Schedule 3.1(g), which
Schedule 3.1(g) shall also include the number of shares of Common Stock owned beneficially, and of record, by Affiliates
of the Company as of the date hereof. Except as otherwise provided in this Agreement, no Person has any right of first refusal,
preemptive right, right of participation, or any similar right to participate in the transactions contemplated by the Transaction
Documents. None of the Securities will be subject to the preemptive rights of any holders of any security of the Company or similar
contractual rights granted by the Company. Except as disclosed in Schedule 3.1(g), there are no outstanding options, warrants,
scrip rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities, rights or obligations
convertible into or exercisable or exchangeable for, or giving any Person any right to subscribe for or acquire, any shares of
Common Stock or the capital stock of any Subsidiary, or contracts, commitments, understandings or arrangements by which the Company
or any Subsidiary is or may become bound to issue additional shares of Common Stock or Common Stock Equivalents or capital stock
of any Subsidiary. The issuance and sale of the Securities will not obligate the Company or any Subsidiary to issue shares of
Common Stock or other securities to any Person (other than the Purchasers). Except as disclosed on Schedule 3.1(g), there
are no outstanding securities or instruments of the Company or any Subsidiary with any provision that adjusts the exercise, conversion,
exchange or reset price of such security or instrument upon an issuance of securities by the Company or any Subsidiary. There
are no outstanding securities or instruments of the Company or any Subsidiary that contain any redemption or similar provisions,
and there are no contracts, commitments, understandings or arrangements by which the Company or any Subsidiary is or may become
bound to redeem a security of the Company or such Subsidiary. The Company does not have any stock appreciation rights or “phantom
stock” plans or agreements or any similar plan or agreement. All of the outstanding shares of capital stock of the Company
are duly authorized, validly issued, fully paid and nonassessable, have been issued in compliance with all federal and state securities
laws, and none of such outstanding shares was issued in violation of any preemptive rights or similar rights to subscribe for
or purchase securities. No further approval or authorization of any stockholder, the Board of Directors or others is required
for the issuance and sale of the Securities. There are no shareholders agreements, voting agreements or other similar agreements
with respect to the Company’s capital stock to which the Company is a party or, to the knowledge of the Company, between
or among any of the Company’s shareholders.

 

    9 

     

    

 

(h)
SEC Reports; Financial Statements. The Company has filed all reports, schedules, forms, statements and other documents
required to be filed by the Company under the Securities Act and the Exchange Act, including pursuant to Section 13(a) or 15(d)
thereof, for the three (3) years preceding the date hereof (or such shorter period as the Company was required by law or regulation
to file such material) (the foregoing materials, including the exhibits thereto and documents incorporated by reference therein
are collectively referred to herein as the “SEC Reports”). For the twelve months preceding the date hereof,
the Company has filed the SEC Reports on a timely basis (including any valid extension of such time of filing provided under Rule
12b-25 or under coronavirus-related relief by the SEC) and has filed any such SEC Reports prior to the expiration of any such
extension. As of their respective dates, the SEC Reports complied in all material respects with the requirements of the Securities
Act and the Exchange Act, as applicable, and none of the SEC Reports, when filed, contained any untrue statement of a material
fact or omitted to state a material fact required to be stated therein or necessary in order to make the statements therein, in
the light of the circumstances under which they were made, not misleading. The Company is not and has never been an issuer subject
to Rule 144(i) under the Securities Act. The financial statements of the Company included in the SEC Reports comply in all material
respects with applicable accounting requirements and the rules and regulations of the Commission with respect thereto as in effect
at the time of filing. Such financial statements have been prepared in accordance with United States generally accepted accounting
principles applied on a consistent basis during the periods involved (“GAAP”), except as may be otherwise specified
in such financial statements or the notes thereto and except that unaudited financial statements may not contain all footnotes
required by GAAP, and fairly present in all material respects the financial position of the Company and its consolidated Subsidiaries
as of and for the dates thereof and the results of operations and cash flows for the periods then ended, subject, in the case
of unaudited statements, to normal, immaterial, year-end audit adjustments. The selected financial data set forth under the captions
“Summary Financial Date” and “Selected Financial Data” in the SEC Reports, if any, fairly present, on
the basis stated in such SEC Reports, the information included therein. The agreements and documents described in the SEC Reports
conform in all material aspects to the descriptions thereof contained therein and there are no agreements or other documents required
by the Securities Act and the rules and regulations thereunder to be described in the SEC Reports or to be filed with the Commission
as exhibits to the SEC Reports, which have not been so described or filed. Each agreement or other instrument (however characterized
or described) to which the Company is a party or by which it is or may be bound or affected and (i) that is referred to in the
SEC Reports, or (ii) is material to the Company’s business, has been duly authorized and validly executed by the Company,
is in full force and effect in all material respects and is enforceable against the Company and, to the Company’s knowledge,
the other parties thereto, in accordance with its terms, except (x) as such enforceability may be limited by bankruptcy, insolvency,
reorganization or similar laws affecting creditors’ rights generally, (y) as enforceability of any indemnification or contribution
provision may be limited under the federal and state securities laws, and (z) that the remedy of specific performance and injunctive
and other forms of equitable relief may be subject to the equitable defenses and to the discretion of the court before which any
proceeding therefore may be brought. None of such agreements or instruments has been assigned by the Company, and neither the
Company nor, to the best of the Company’s knowledge, any other party is in default thereunder and, to the best of the Company’s
knowledge, no event has occurred that, with the lapse of time or the giving of notice, or both, would constitute a default thereunder.
To the best of the Company’s knowledge, performance by the Company of the material provisions of such agreements or instruments
will not result in a violation of any existing applicable law, rule, regulation, judgment, order or decree of any governmental
agency or court, domestic or foreign, having jurisdiction over the Company or any of its assets or businesses, including, without
limitation, those relating to environmental laws and regulations.

 

    10 

     

    

 

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

 

(j)
Litigation. Except as set forth in the SEC Reports and/or Schedule 3.1(j), there is no action, suit, inquiry, notice
of violation, proceeding or investigation pending or, to the knowledge of the Company, threatened against or affecting the Company,
any Subsidiary or any of their respective properties before or by any court, arbitrator, governmental or administrative agency
or regulatory authority (federal, state, county, local or foreign) (collectively, an “Action”). None of the
Actions set forth in the SEC Reports and/or Schedule 3.1(j), (i) adversely affects or challenges the legality, validity
or enforceability of any of the Transaction Documents or the Securities or (ii) could, if there were an unfavorable decision,
have or reasonably be expected to result in a Material Adverse Effect. Neither the Company nor any Subsidiary, nor any director
or officer thereof, is or has been the subject of any Action involving a claim of violation of or liability under federal or state
securities laws or a claim of breach of fiduciary duty. There has not been, and to the knowledge of the Company, there is not
pending or threatened, any investigation by the Commission involving the Company or any current or former director or officer
of the Company. There are no Actions required to be disclosed in the SEC Reports or Schedule 3.1(j) that have not been
disclosed. The Commission has not issued any stop order or other order suspending the effectiveness of any registration statement
filed by the Company or any Subsidiary under the Exchange Act or the Securities Act.

 

    11 

     

    

 

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

 

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

 

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

 

    12 

     

    

 

(n)
Regulatory Permits. The Company and the Subsidiaries possess all certificates, licenses, authorizations approvals, clearances,
consents, registration and permits issued by the appropriate federal, state, local or foreign regulatory authorities applicable
to the Company (“Applicable Laws”) necessary to conduct their respective businesses as described in the SEC
Reports, except where the failure to possess such permits could not reasonably be expected to result in a Material Adverse Effect
(each, an “Authorization”), and neither the Company nor any Subsidiary has received any notice of proceedings
relating to the revocation or modification of any Authorization or the noncompliance with any ordinance, law, rule or regulation
applicable to the Company. The disclosures in the SEC Reports concerning the effects of federal, state, local and all foreign
regulation on the Company’s business as currently contemplated are correct in all material respects. The Company is and
has been in material compliance with any term of any such Authorizations, except for any violations which would not reasonably
be expected to have a Material Adverse Effect. The Company has not received notice of any claim, action, suit, proceeding, hearing,
enforcement, investigation, arbitration or other action from any governmental authority or body or third party alleging that any
product, operation or activity is in violation of any Applicable Laws or Authorizations or has any knowledge that any such entity
or third party is considering any such claim, litigation, arbitration, action, suit, investigation or proceeding, nor, to the
Company’s knowledge, has there been any material noncompliance with or violation of any Applicable Laws by the Company that
could reasonably be expected to require the issuance of any such communication or result in an investigation, corrective action,
or enforcement action by any governmental body or entity.

 

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

 

(p)
Intellectual Property. The Company and the Subsidiaries have, or have rights to use, all patents, patent applications,
trademarks, trademark applications, service marks, trade names, trade secrets, inventions, copyrights, licenses and other intellectual
property rights and similar rights necessary or required for use in connection with their respective businesses as described in
the SEC Reports and which the failure to so have could have a Material Adverse Effect (collectively, the “Intellectual
Property Rights”). Neither the Company nor any Subsidiary has received a notice (written or otherwise) that any of,
the Intellectual Property Rights has expired, terminated or been abandoned, or is expected to expire or terminate or be abandoned,
within two (2) years from the date of this Agreement except where such action would not reasonably be expected to have a Material
Adverse Effect. Neither the Company nor any Subsidiary has received, since the date of the latest audited financial statements
included within the SEC Reports, a written notice of a claim or otherwise has any knowledge that the Intellectual Property Rights
or any of the Company’s products or planned products as described in the SEC Reports violate or infringe upon the rights
of any Person, except as could not have or reasonably be expected to not have a Material Adverse Effect. To the knowledge of the
Company, all such Intellectual Property Rights are enforceable and there is no existing infringement by another Person of any
of the Intellectual Property Rights. The Company and its Subsidiaries have taken reasonable security measures to protect the secrecy,
confidentiality and value of all of their intellectual properties, except where failure to do so could not, individually or in
the aggregate, reasonably be expected to have a Material Adverse Effect.

 

    13 

     

    

 

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

 

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

 

(s)
Sarbanes-Oxley; Internal Accounting Controls. The Company and the Subsidiaries are in compliance with any and all applicable
requirements of the Sarbanes-Oxley Act of 2002 that are effective as of the date hereof, and any and all applicable rules and
regulations promulgated by the Commission thereunder that are effective as of the date hereof and as of the Closing Date. Except
as set forth in the SEC Reports, the Company and the Subsidiaries maintain a system of internal accounting controls sufficient
to provide reasonable assurance that: (i) transactions are executed in accordance with management’s general or specific
authorizations, (ii) transactions are recorded as necessary to permit preparation of financial statements in conformity with GAAP
and to maintain asset accountability, (iii) access to assets is permitted only in accordance with management’s general or
specific authorization, and (iv) the recorded accountability for assets is compared with the existing assets at reasonable intervals
and appropriate action is taken with respect to any differences. The Company and the Subsidiaries have established disclosure
controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e) for the Company and the Subsidiaries and designed
such disclosure controls and procedures to ensure that information required to be disclosed by the Company in the reports it files
or submits under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the Commission’s
rules and forms. The Company’s certifying officers have evaluated the effectiveness of the disclosure controls and procedures
of the Company and the Subsidiaries as of the end of the period covered by the most recently filed periodic report under the Exchange
Act (such date, the “Evaluation Date”). The Company presented in its most recently filed periodic report under
the Exchange Act the conclusions of the certifying officers about the effectiveness of the disclosure controls and procedures
based on their evaluations as of the Evaluation Date. Since the Evaluation Date, there have been no changes in the internal control
over financial reporting (as such term is defined in the Exchange Act) of the Company and its Subsidiaries that have materially
affected, or is reasonably likely to materially affect, the internal control over financial reporting of the Company and its Subsidiaries.

 

    14 

     

    

 

(t)
Certain Fees. Except as set forth on Schedule 3.1(t), no brokerage or finder’s fees or commissions are or
will be payable by the Company or any Subsidiary to any broker, financial advisor or consultant, finder, placement agent, investment
banker, bank or other Person with respect to the transactions contemplated by the Transaction Documents. The Purchasers shall
have no obligation with respect to any fees or with respect to any claims made by or on behalf of other Persons for fees of a
type contemplated in this Section that may be due in connection with the transactions contemplated by the Transaction Documents.

 

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

 

(v)
Registration Rights. Except as described in the SEC Reports, no Person has any right to cause the Company or any Subsidiary
to effect the registration under the Securities Act of any securities of the Company or any Subsidiary.

 

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

 

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

 

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

 

    15 

     

    

 

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

 

(aa)
Solvency. Based on the consolidated financial condition of the Company as of the Closing Date, after giving effect to the
receipt by the Company of the proceeds from the sale of the Securities hereunder, (i) the fair saleable value of the Company’s
assets exceeds the amount that will be required to be paid on or in respect of the Company’s existing debts and other liabilities
(including known contingent liabilities) as they mature, (ii) the Company’s assets do not constitute unreasonably small
capital to carry on its business as now conducted and as proposed to be conducted including its capital needs taking into account
the particular capital requirements of the business conducted by the Company, consolidated and projected capital requirements
and capital availability thereof, and (iii) the current cash flow of the Company, together with the proceeds the Company would
receive, were it to liquidate all of its assets, after taking into account all anticipated uses of the cash, would be sufficient
to pay all amounts on or in respect of its liabilities when such amounts are required to be paid. The Company does not intend
to incur debts beyond its ability to pay such debts as they mature (taking into account the timing and amounts of cash to be payable
on or in respect of its debt). The Company has no knowledge of any facts or circumstances which lead it to believe that it will
file for reorganization or liquidation under the bankruptcy or reorganization laws of any jurisdiction within one year from the
Closing Date.

 

(bb)
Tax Status. Except for matters that would not, individually or in the aggregate, have or reasonably be expected to result
in a Material Adverse Effect, the Company and its Subsidiaries each (i) has made or filed all United States federal, state and
local income and all foreign income and franchise tax returns, reports and declarations required by any jurisdiction to which
it is subject, (ii) has paid all taxes and other governmental assessments and charges that are material in amount, shown or determined
to be due on such returns, reports and declarations and (iii) has set aside on its books provision reasonably adequate for the
payment of all material taxes for periods subsequent to the periods to which such returns, reports or declarations apply. There
are no unpaid taxes in any material amount claimed to be due by the taxing authority of any jurisdiction, and the officers of
the Company or of any Subsidiary know of no basis for any such claim. The term “taxes” mean all federal, state, local,
foreign, and other net income, gross income, gross receipts, sales, use, ad valorem, transfer, franchise, profits, license, lease,
service, service use, withholding, payroll, employment, excise, severance, stamp, occupation, premium, property, windfall profits,
customs, duties or other taxes, fees, assessments, or charges of any kind whatsoever, together with any interest and any penalties,
additions to tax, or additional amounts with respect thereto. The term “returns” means all returns, declarations,
reports, statements, and other documents required to be filed in respect to taxes.

 

    16 

     

    

 

(cc)
Foreign Corrupt Practices. Neither the Company nor any Subsidiary, nor to the knowledge of the Company or any Subsidiary,
any agent or other person acting on behalf of the Company or any Subsidiary, has (i) directly or indirectly, used any funds for
unlawful contributions, gifts, entertainment or other unlawful expenses related to foreign or domestic political activity, (ii)
made any unlawful payment to foreign or domestic government officials or employees or to any foreign or domestic political parties
or campaigns from corporate funds, (iii) failed to disclose fully any contribution made by the Company or any Subsidiary (or made
by any person acting on its behalf of which the Company is aware) which is in violation of law, or (iv) violated in any material
respect any provision of FCPA. The Company has taken reasonable steps to ensure that its accounting controls and procedures are
sufficient to cause the Company to comply in all material respects with the FCPA.

 

(dd)
Accountants. The Company’s registered independent accounting firm is UHY LLP. To the knowledge and belief of the
Company, such accounting firm is a registered public accounting firm as required by the Exchange Act.

 

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

 

(ff)
Acknowledgment Regarding Purchaser’s Trading Activity. Anything in this Agreement or elsewhere herein to the contrary
notwithstanding (except for Sections 3.2(f) and 4.13 hereof), it is understood and acknowledged by the Company that: (i) none
of the Purchasers has been asked by the Company to agree, nor has any Purchaser agreed, to desist from purchasing or selling,
long and/or short, securities of the Company, or “derivative” securities based on securities issued by the Company
or to hold the Shares for any specified term; (ii) past or future open market or other transactions by any Purchaser, specifically
including, without limitation, Short Sales or “derivative” transactions, before or after the closing of this or future,
private, placement transactions, may negatively impact the market price of the Company’s publicly-traded securities; (iii)
any Purchaser, and counter-parties in “derivative” transactions to which any such Purchaser is a party, directly or
indirectly, presently may have a “short” position in the Common Stock, and (iv) each Purchaser shall not be deemed
to have any affiliation with or control over any arm’s length counter-party in any “derivative” transaction.
The Company further understands and acknowledges that (y) one or more Purchasers may engage in hedging activities at various times
during the period that the Securities are outstanding, including, without limitation, during the periods that the value of the
Warrant Shares deliverable with respect to Securities are being determined, and (z) such hedging activities (if any) could reduce
the value of the existing shareholders’ equity interests in the Company at and after the time that the hedging activities
are being conducted. The Company acknowledges that such aforementioned hedging activities do not constitute a breach of any of
the Transaction Documents.

 

    17 

     

    

 

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

 

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

 

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

 

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

 

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

 

(ll)
Private Placement. Assuming the accuracy of the Purchasers’ representations and warranties set forth in Section 3.2,
no registration under the Securities Act is required for the offer and sale of the Preferred Shares, Conversion Shares, Warrants
or the Warrant Shares by the Company to the Purchasers as contemplated hereby.

 

(mm)
No General Solicitation. Neither the Company nor any Person acting on behalf of the Company has offered or sold any of
the Preferred Shares, Conversion Shares, Warrants or Warrant Shares by any form of general solicitation or general advertising.
The Company has offered the Warrants for sale only to the Purchasers within the meaning of Rule 501 under the Securities Act.

 

    18 

     

    

 

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

 

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

 

(pp)
Notice of Disqualification Events. The Company will notify the Purchasers in writing, prior to the Closing Date of (i)
any Disqualification Event relating to any Issuer Covered Person and (ii) any event that would, with the passage of time, reasonably
be expected to become a Disqualification Event relating to any Issuer Covered Person, in each case of which it is aware.

 

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

 

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

 

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

 

    19 

     

    

 

(c)
Purchaser Status. At the time such Purchaser was offered the Securities, it was, and as of the date hereof it is, and on
each date on which it exercises any Warrants, it will be either: (i) an “accredited investor” as defined in Rule 501(a)(1),
(a)(2), (a)(3), (a)(7) or (a)(8) under the Securities Act or (ii) a “qualified institutional buyer” as defined in
Rule 144A(a) under the Securities Act.

 

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

 

(e)
Access to Information. Such Purchaser acknowledges that it has had the opportunity to review the Transaction Documents
(including all exhibits and schedules thereto) and the SEC Reports and has been afforded, (i) the opportunity to ask such questions
as it has deemed necessary of, and to receive answers from, representatives of the Company concerning the terms and conditions
of the offering of the Securities and the merits and risks of investing in the Securities; (ii) access to information about the
Company and its financial condition, results of operations, business, properties, management and prospects sufficient to enable
it to evaluate its investment; and (iii) the opportunity to obtain such additional information that the Company possesses or can
acquire without unreasonable effort or expense that is necessary to make an informed investment decision with respect to the investment.

 

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

 

    20 

     

    

 

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

 

The
Company acknowledges and agrees that the representations contained in this Section 3.2 shall not modify, amend or affect such
Purchaser’s right to rely on the Company’s representations and warranties contained in this Agreement or any representations
and warranties contained in any other Transaction Document or any other document or instrument executed and/or delivered in connection
with this Agreement or the consummation of the transactions contemplated hereby. Notwithstanding the foregoing, for the avoidance
of doubt, nothing contained herein shall constitute a representation or warranty, or preclude any actions, with respect to locating
or borrowing shares in order to effect Short Sales or similar transactions in the future.

 

ARTICLE
IV.

OTHER AGREEMENTS OF THE PARTIES

 

4.1
Removal of Legends.

 

(a)
The Preferred Shares, the Conversion Shares, the Warrants and the Warrant Shares may only be disposed of in compliance with state
and federal securities laws. In connection with any transfer of the Preferred Shares, the Conversion Shares, the Warrants or the
Warrant Shares other than pursuant to an effective registration statement or Rule 144, to the Company or to an Affiliate of a
Purchaser or in connection with a pledge as contemplated in Section 4.1(b), the Company may require the transferor thereof to
provide to the Company an opinion of counsel selected by the transferor and reasonably acceptable to the Company, the form and
substance of which opinion shall be reasonably satisfactory to the Company, to the effect that such transfer does not require
registration of such transferred Preferred Shares, the Conversion Shares, the Warrants or Warrant Shares under the Securities
Act.

 

(b)
The Purchasers agree to the imprinting, so long as is required by this Section 4.1, of a legend on any of the Preferred Shares,
the Conversion Shares, the Warrants and the Warrant Shares in the following form:

 

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

 

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

 

(c)
Certificates evidencing the Securities shall not contain any legend (including the legend set forth in Section 4.1(b) hereof):
(i) while a registration statement covering the resale of such security is effective under the Securities Act, or (ii) following
any sale of such Securities pursuant to Rule 144 (assuming cashless exercise of the Warrants), or (iii) if such Securities are
eligible for sale under Rule 144 without volume or manner-of-sale limitations (assuming cashless exercise of the Warrants), or
(iv) if such legend is not required under applicable requirements of the Securities Act (including judicial interpretations and
pronouncements issued by the staff of the Commission). The Company shall cause its counsel to issue a legal opinion to the Transfer
Agent or a Purchaser promptly if required by the Transfer Agent to effect the removal of the legend hereunder, or if requested
by a Purchaser, respectively. If all or any portion of a Warrant is exercised at a time when there is an effective registration
statement to cover the resale of the Warrant Shares, or if such Warrant Shares may be sold under Rule 144 without volume or manner-of-sale
limitations (assuming cashless exercise of the Warrants) or if such legend is not otherwise required under applicable requirements
of the Securities Act (including judicial interpretations and pronouncements issued by the staff of the Commission) then such
Securities shall be issued free of all legends. The Company agrees that following such time as such legend is no longer required
under this Section 4.1(c), the Company will, no later than the earlier of (i) two (2) Trading Days and (ii) the number of Trading
Days comprising the Standard Settlement Period following the delivery by a Purchaser to the Company or the Transfer Agent of a
certificate representing Conversion Shares or Warrant Shares, as applicable, issued with a restrictive legend (such date, the
“Legend Removal Date”), deliver or cause to be delivered to such Purchaser a certificate representing such
shares that is free from all restrictive and other legends. The Company may not make any notation on its records or give instructions
to the Transfer Agent that enlarge the restrictions on transfer set forth in this Section 4. Certificates for Securities subject
to legend removal hereunder shall be transmitted by the Transfer Agent to the Purchaser by crediting the account of the Purchaser’s
prime broker with the Depository Trust Company System as directed by such Purchaser.

 

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(d)
In addition to such Purchaser’s other available remedies, the Company shall pay to a Purchaser, in cash, (i) as partial
liquidated damages and not as a penalty, for each $1,000 of Conversion Shares or Warrant Shares (based on the VWAP of the shares
of Common Stock on the date such Securities are submitted to the Transfer Agent) delivered for removal of the restrictive legend
from any of the Securities and subject to Section 4.1(c), $10 per Trading Day (increasing to $20 per Trading Day five (5) Trading
Days after such damages have begun to accrue) for each Trading Day after the Legend Removal Date until such certificate is delivered
without a legend and (ii) if the Company fails to (a) issue and deliver (or cause to be delivered) to a Purchaser by the Legend
Removal Date a certificate representing the Securities so delivered to the Company by such Purchaser that is free from all restrictive
and other legends and (b) if after the Legend Removal Date such Purchaser purchases (in an open market transaction or otherwise)
shares of Common Stock or other Securities to deliver in satisfaction of a sale by such Purchaser of all or any portion of the
number of shares of Common Stock or other Securities, or a sale of a number of shares of Common Stock equal to all or any portion
of the number of shares of Common Stock, that such Purchaser anticipated receiving from the Company without any restrictive legend,
then an amount equal to the excess of such Purchaser’s total purchase price (including brokerage commissions and other out-of-pocket
expenses, if any) for the shares of Common Stock so purchased (including brokerage commissions and other out-of-pocket expenses,
if any) (the “Buy-In Price”) over the product of (A) such number of Conversion Shares or Warrant Shares that
the Company was required to deliver to such Purchaser by the Legend Removal Date multiplied by (B) the lowest closing sale price
of the shares of Common Stock on any Trading Day during the period commencing on the date of the delivery by such Purchaser to
the Company of the applicable Conversion Shares or Warrant Shares (as the case may be) and ending on the date of such delivery
and payment under this Section 4.1(d).

 

4.2
Furnishing of Information.

 

(a)
Until the earliest of the time that (i) no Purchaser owns Securities or (ii) the Warrants have expired, the Company covenants
to timely file (or obtain extensions in respect thereof and file within the applicable grace period) all reports required to be
filed by the Company after the date hereof pursuant to the Exchange Act even if the Company is not then subject to the reporting
requirements of the Exchange Act.

 

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

 

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

 

4.4
Securities Laws Disclosure; Publicity. The Company shall (a) by 9:00 a.m. (New York City time) within time limits proscribed
in Form 8-K issue a press release disclosing the material terms of the transactions contemplated hereby, and (b) file a Report
on Form 8-K, including the Transaction Documents as exhibits thereto, with the Commission within the time required by the Exchange
Act. From and after the issuance of such press release, the Company represents to the Purchasers that it shall have publicly disclosed
all material, non-public information delivered to any of the Purchasers by the Company or any of its Subsidiaries, or any of their
respective officers, directors, employees or agents in connection with the transactions contemplated by the Transaction Documents.
In addition, effective upon the issuance of such press release, the Company acknowledges and agrees that any and all confidentiality
or similar obligations under any agreement, whether written or oral, between the Company, any of its Subsidiaries or any of their
respective officers, directors, agents, employees or Affiliates on the one hand, and any of the Purchasers or any of their Affiliates
on the other hand, shall terminate. The Company and each Purchaser shall consult with each other in issuing any other press releases
with respect to the transactions contemplated hereby, and neither the Company nor any Purchaser shall issue any such press release
nor otherwise make any such public statement without the prior consent of the Company, with respect to any press release of any
Purchaser, or without the prior consent of each Purchaser, with respect to any press release of the Company, which consent shall
not unreasonably be withheld or delayed, except if such disclosure is required by law, in which case the disclosing party shall
promptly provide the other party with prior notice of such public statement or communication. Notwithstanding the foregoing, the
Company shall not publicly disclose the name of any Purchaser, or include the name of any Purchaser in any filing with the Commission
or any regulatory agency or Trading Market, without the prior written consent of such Purchaser, except (a) as required by federal
securities law in connection with the filing of final Transaction Documents with the Commission and (b) to the extent such disclosure
is required by law or Trading Market or FINRA regulations, in which case the Company shall provide the Purchasers with prior notice
of such disclosure permitted under this clause (b).

 

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

 

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4.6
Non-Public Information. Except with respect to the material terms and conditions of the transactions contemplated by the
Transaction Documents, which shall be disclosed pursuant to Section 4.4, the Company covenants and agrees that neither it, nor
any other Person acting on its behalf will provide any Purchaser or its agents or counsel with any information that constitutes,
or the Company reasonably believes constitutes, material non-public information, unless prior thereto such Purchaser shall have
consented to the receipt of such information and agreed with the Company to keep such information confidential. The Company understands
and confirms that each Purchaser shall be relying on the foregoing covenant in effecting transactions in securities of the Company.
To the extent that the Company delivers any material, non-public information to a Purchaser without such Purchaser’s consent,
the Company hereby covenants and agrees that such Purchaser shall not have any duty of confidentiality to the Company, any of
its Subsidiaries, or any of their respective officers, directors, agents, employees or Affiliates, or a duty to the Company, any
of its Subsidiaries or any of their respective officers, directors, agents, employees or Affiliates not to trade on the basis
of, such material, non-public information, provided that the Purchaser shall remain subject to applicable law. To the extent that
any notice provided pursuant to any Transaction Document constitutes, or contains, material, non-public information regarding
the Company or any Subsidiaries, the Company shall simultaneously file such notice with the Commission pursuant to a Report on
Form 6-K. The Company understands and confirms that each Purchaser shall be relying on the foregoing covenant in effecting transactions
in securities of the Company.

 

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

 

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4.8
Indemnification of Purchasers. Subject to the provisions of this Section 4.8, the Company will indemnify and hold each
Purchaser and its directors, officers, shareholders, members, partners, employees and agents (and any other Persons with a functionally
equivalent role of a Person holding such titles notwithstanding a lack of such title or any other title), each Person who controls
such Purchaser (within the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act), and the directors,
officers, shareholders, agents, members, partners or employees (and any other Persons with a functionally equivalent role of a
Person holding such titles notwithstanding a lack of such title or any other title) of such controlling persons (each, a “Purchaser
Party”) harmless from any and all losses, liabilities, obligations, claims, contingencies, damages, costs and expenses,
including all judgments, amounts paid in settlements, court costs and reasonable attorneys’ fees and costs of investigation
that any such Purchaser Party may suffer or incur as a result of or relating to (a) any breach of any of the representations,
warranties, covenants or agreements made by the Company in this Agreement or in the other Transaction Documents or (b) any action
instituted against the Purchaser Parties in any capacity, or any of them or their respective Affiliates, by any stockholder of
the Company who is not an Affiliate of such Purchaser Party, with respect to any of the transactions contemplated by the Transaction
Documents (unless such action is solely based upon a material breach of such Purchaser Party’s representations, warranties
or covenants under the Transaction Documents or any agreements or understandings such Purchaser Party may have with any such stockholder
or any violations by such Purchaser Party of state or federal securities laws or any conduct by such Purchaser Party which is
finally judicially determined to constitute fraud, gross negligence or willful misconduct) or (c) in connection with any registration
statement of the Company providing for the resale by the Purchasers of the Securities, the Company will indemnify each Purchaser
Party, to the fullest extent permitted by applicable law, from and against any and all losses, claims, damages, liabilities, costs
(including, without limitation, reasonable attorneys’ fees) and expenses, as incurred, arising out of or relating to (i)
any untrue or alleged untrue statement of a material fact contained in such registration statement, any prospectus or any form
of prospectus or in any amendment or supplement thereto or in any preliminary prospectus, or arising out of or relating to any
omission or alleged omission of a material fact required to be stated therein or necessary to make the statements therein (in
the case of any prospectus or supplement thereto, in the light of the circumstances under which they were made) not misleading,
except to the extent, but only to the extent, that such untrue statements or omissions are based solely upon information regarding
such Purchaser Party furnished in writing to the Company by such Purchaser Party expressly for use therein, or (ii) any violation
or alleged violation by the Company of the Securities Act, the Exchange Act or any state securities law, or any rule or regulation
thereunder in connection therewith. If any action shall be brought against any Purchaser Party in respect of which indemnity may
be sought pursuant to this Agreement, such Purchaser Party shall promptly notify the Company in writing, and the Company shall
have the right to assume the defense thereof with counsel of its own choosing reasonably acceptable to the Purchaser Party. Any
Purchaser Party shall have the right to employ separate counsel in any such action and participate in the defense thereof, but
the fees and expenses of such counsel shall be at the expense of such Purchaser Party except to the extent that (i) the employment
thereof has been specifically authorized by the Company in writing, (ii) the Company has failed after a reasonable period of time
to assume such defense and to employ counsel or (iii) in such action there is, in the reasonable opinion of counsel, a material
conflict on any material issue between the position of the Company and the position of such Purchaser Party, in which case the
Company shall be responsible for the reasonable fees and expenses of no more than one such separate counsel. The Company will
not be liable to any Purchaser Party under this Agreement (y) for any settlement by a Purchaser Party effected without the Company’s
prior written consent, which shall not be unreasonably withheld or delayed; or (z) to the extent, but only to the extent that
a loss, claim, damage or liability is attributable to any Purchaser Party’s breach of any of the representations, warranties,
covenants or agreements made by such Purchaser Party in this Agreement or in the other Transaction Documents. The indemnification
required by this Section 4.8 shall be made by periodic payments of the amount thereof during the course of the investigation or
defense, as and when bills are received or are incurred. The indemnity agreements contained herein shall be in addition to any
cause of action or similar right of any Purchaser Party against the Company or others and any liabilities the Company may be subject
to pursuant to law.

 

4.9
Reservation of Shares of Common Stock. As of the date hereof, the Company has reserved and the Company shall continue to
reserve and keep available at all times, free of preemptive rights, a number of shares of Common Stock equal to at least 200%
of the number of shares of Common Stock required for the issuance of all Conversion Shares and Warrant Shares remaining issuable
under this Agreement, pursuant to the conversion of Preferred Shares and the exercise of Warrants.

 

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

 

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4.11
Subsequent Equity Sales. (a) From the date hereof until the earlier of (i) three (3) years after the Closing Date, and
(ii) if any amount in excess of an aggregate of $500,000 of all Series B Preferred Stock or at least 100,000 Warrants remains
outstanding, the Company shall not (a) issue, enter into any agreement to issue or announce the issuance or proposed issuance
of any shares of Common Stock or Common Stock Equivalents, preferred stock, or equity of the Company at a price or effective price
that is less than the highest price per share of the securities issued or issuable in the offering including but not limited to
the Warrants and the Warrant Shares, or (b) file any registration statement (other than on Form S-8) or any amendment or supplement
thereto on behalf of the Company, in each case other than as permitted pursuant to this Agreement or the issuance of securities
in the ordinary course of business for acquisitions at a price or effective price that is less than the highest price per share
of the securities issued or issuable in the offering including but not limited to the Warrants and Warrant Shares.

 

(b)
From the date hereof until the earlier of (i) three (3) years after the Closing Date, and (ii) if any amount in excess of an aggregate
of $500,000 of all Series B Preferred Stock or at least 100,000 Warrants remains outstanding, the Company shall be prohibited
from effecting or entering into an Equity Line of Credit or At The Market Offering or an agreement to effect any issuance by the
Company of Common Stock or Common Stock Equivalents (or a combination of units thereof) involving a Variable Rate Transaction.
“Equity Line of Credit” means any transaction involving a written agreement between the Company and an investor or
underwriter whereby the Company has the right to “put” its securities to the investor or underwriter over an agreed
period of time and at an agreed price or price formula. “At The Market Offering” means any equity line of credit,
an “at-the-market” offering or similar agreement, whereby the Company may issue securities at a future determined
price. “Variable Rate Transaction” means, collectively, an Equity Line of Credit and a transaction in which the Company
(i) issues or sells any debt or equity securities that are convertible into, exchangeable or exercisable for, or include the right
to receive, additional shares of Common Stock either (A) at a conversion price, exercise price or exchange rate or other price
that is based upon, and/or varies with, the trading prices of or quotations for the shares of Common Stock at any time after the
initial issuance of such debt or equity securities or (B) with a conversion, exercise or exchange price that is subject to being
reset at some future date after the initial issuance of such debt or equity security or upon the occurrence of specified or contingent
events directly or indirectly related to the business of the Company or the market for the Common Stock or (ii) enters into, or
effects a transaction under, any agreement, including, but not limited to, an equity line of credit, whereby the Company may issue
securities at a future determined price. Any Purchaser shall be entitled to obtain injunctive relief against the Company to preclude
any such issuance, which remedy shall be in addition to any right to collect damages.

 

(c)
From the date hereof until the earlier of (i) three years after the Closing Date, and (ii) if the date an amount less than $500,000
Series B Preferred Stock or at least 100,000 Warrants remains outstanding, the Company will not amend the terms of any securities
or Common Stock Equivalents or of any agreement outstanding or in effect as of the date of this Agreement pursuant to which same
were or may be acquired without the consent of a majority in interest, if the result of such issuance of Common Stock would be
at an effective price per share of Common Stock less than the higher of the Conversion Price or highest Warrant Exercise Price
in effect at the time of such issuance or amendment.

 

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(d)
The Company acknowledges that it has been informed by the Purchaser that the provisions and restrictions of this Section 4.11
constitute a material inducement upon which the Purchaser is relying and will rely in entering into this Agreement. The Company
and the Purchaser agree that its failure to seek such Purchaser consent will constitute a material default and entitled the Purchaser
to liquidated damages. The Company and the Purchaser agree that the Company shall have the right to buy out the Purchaser of its
rights under this Section 4.11 for a capped amount of $10,000,000 less any Profit (as defined herein) made by the Purchaser from
Securities offered under this Agreement and/or any prior waivers and consideration for such waivers that may be given from time
to time pursuant to this Section 4.11, including pursuant to Section 4.11(e) (“Waivers”). “Profit”
shall include all amounts earned by Purchaser or its affiliates, including, without limitation, any dividends on the Preferred
Shares, the original issue discount on the Preferred Shares, fees from any Waivers, any profit from sales of the Warrants or the
Preferred Shares, and any profit from sales of Common Stock following a conversion of Preferred Shares or any profit from sales
from of Common Stock following an exercise of a Warrant, in each case evidenced by documents provided by Purchaser.

 

(e)
The Purchasers shall have a Right of First Refusal to invest in any of the offerings described in Section 4.11(a) and Section
4.11(b) above (the “Offering”) of the Company for three (3) years from Closing Date the later of (i) January
1, 2023 or (ii) the date on which those certain senior secured convertible notes in the original aggregate principal amount of
$16,304,348 that were issued on or about October 25, 2021 have been fully redeemed, defeased, or converted, pursuant to the terms
the Certificate of Designation). A Purchaser’s consent to such “Offerings” shall be deemed as received by the
Company if the Purchasers receive at the closing of such Offering 10% of the amount of the capital raised by the Company to be
paid, in the Company’s discretion, in cash or the same securities issued by the Company. If the Purchaser waives such right
or does not respond within two (2) Business Days following written notice thereof from the Company, then the Purchaser is deemed
to consent to such Offering and shall receive at the closing of such Offering 10% of the amount of the capital raised by the Company
to be paid, in the Company’s discretion, in cash or the same securities issued by the Company. In addition, in the event
a Purchaser elects not to exercise their Right of First Refusal, the Purchaser shall nevertheless have a right of participation
which shall be exercised in writing within one (1) Business Day following the expiration of the Right of First Refusal for up
to 35% of any equity and debt offerings of the Company for the same 3-year period.

 

4.12
Equal Treatment of Purchasers. No consideration (including any modification of any Transaction Document) shall be offered
or paid to any Person to amend or consent to a waiver or modification of any provision of the Transaction Documents unless the
same consideration is also offered to all of the parties to such Transaction Document. For clarification purposes, this provision
constitutes a separate right granted to each Purchaser by the Company and negotiated separately by each Purchaser, and is intended
for the Company to treat the Purchasers as a class and shall not in any way be construed as the Purchasers acting in concert or
as a group with respect to the purchase, disposition or voting of Securities or otherwise.

 

4.13
Certain Transactions and Confidentiality. Each Purchaser, severally and not jointly with the other Purchasers, covenants
that neither it nor any Affiliate acting on its behalf or pursuant to any understanding with it will execute any purchases or
sales, including Short Sales of any of the Company’s securities during the period commencing with the execution of this
Agreement and ending at such time that the transactions contemplated by this Agreement are first publicly announced pursuant to
the initial press release as described in Section 4.4. Each Purchaser, severally and not jointly with the other Purchasers, covenants
that until such time as the transactions contemplated by this Agreement are publicly disclosed by the Company pursuant to the
initial press release as described in Section 4.4, such Purchaser will maintain the confidentiality of the existence and terms
of this transaction and the information included in the Disclosure Schedules. Notwithstanding the foregoing, and notwithstanding
anything contained in this Agreement to the contrary, the Company expressly acknowledges and agrees that (i) no Purchaser makes
any representation, warranty or covenant hereby that it will not engage in effecting transactions in any securities of the Company
after the time that the transactions contemplated by this Agreement are first publicly announced pursuant to the initial press
release as described in Section 4.4, (ii) no Purchaser shall be restricted or prohibited from effecting any transactions in any
securities of the Company in accordance with applicable securities laws from and after the time that the transactions contemplated
by this Agreement are first publicly announced pursuant to the initial press release as described in Section 4.4 and (iii) no
Purchaser shall have any duty of confidentiality or duty not to trade in the securities of the Company to the Company or its Subsidiaries
after the issuance of the initial press release as described in Section 4.4. Notwithstanding the foregoing, in the case of a Purchaser
that is a multi-managed investment vehicle whereby separate portfolio managers manage separate portions of such Purchaser’s
assets and the portfolio managers have no direct knowledge of the investment decisions made by the portfolio managers managing
other portions of such Purchaser’s assets, the covenant set forth above shall only apply with respect to the portion of
assets managed by the portfolio manager that made the investment decision to purchase the Securities covered by this Agreement.

 

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4.14
Exercise Procedures. The applicable form of Notice of Exercise included in each of the Warrants and Notice of Conversion
included as an exhibit to the Certificate of Designations set forth the totality of the procedures required of the Purchasers
in order to exercise the respective Warrants or convert the Preferred Shares. No additional legal opinion, other information or
instructions shall be required of the Purchasers to exercise their Warrants or convert their Preferred Shares. Without limiting
the preceding sentences, no ink-original Notice of Exercise or Notice of Conversion shall be required, nor shall any medallion
guarantee (or other type of guarantee or notarization) of any Notice of Exercise form or Notice of Conversion form be required
in order to exercise the Warrants or convert the Preferred Shares. The Company shall honor exercises of the Warrants and shall
deliver Warrant Shares and shall honor conversions of Preferred Shares and deliver Conversion Shares in accordance with the terms,
conditions and time periods set forth in the Transaction Documents.

 

4.15
Form D; Blue Sky Filings. The Company agrees to timely file a Form D with respect to the Preferred Shares, the Conversion
Shares, the Warrants and the Warrant Shares as required under Regulation D and to provide a copy thereof, promptly upon request
of any Purchaser. The Company shall take such action as the Company shall reasonably determine is necessary in order to obtain
an exemption for, or to qualify the Preferred Shares, the Conversion Shares, the Warrants and the Warrant Shares for, sale to
the Purchasers at the Closing under applicable securities or “Blue Sky” laws of the states of the United States, and
shall provide evidence of such actions promptly upon request of any Purchaser.

 

4.16
Resale Registration Statement. Upon the written request of the Purchaser, which can be delivered at any time after the
date on which those certain senior secured convertible notes in the original aggregate principal amount of $16,304,348 that were
issued on or about October 25, 2021 have been fully redeemed, defeased, or converted pursuant to the terms the Certificate of
Designation, until one year after such date, the Company shall file a registration statement on Form S-3 (the “Resale
Registration Statement”) (or Form S-1 if Form S-3 is not available to the Company) providing for the resale by the Purchasers
of the Preferred Shares and the Conversion Shares, or shall include such Preferred Shares and Conversion Shares in any other registration
statement on Form S-3 or Form S-1 filed by the Company. The Company shall use commercially reasonable efforts to cause such registration
to become effective within sixty (60) days following the Closing Date (unless the Commission notified the Company that it will
perform a “full” review of the Resale Registration Statement, in which case the Company shall cause such registration
to become effective within ninety (90) days following the Closing Date such 60-day or 90-day period is referred to as the “Effectiveness
Date”), and to keep such Resale Registration Statement effective at all times (except for any periods in connection
with the filing of post-effective amendments as reasonably determined by Company’s counsel to be required) until no Purchaser
owns any Preferred Shares and Conversion Shares issuable upon exercise of the Warrants.

 

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4.17
Fees. The Company shall be responsible for the payment of any placement agent’s fees, financial advisory fees, or
broker’s commissions relating to or arising out of the transactions contemplated hereby, including any reasonable legal
fees and expenses of any advisors.

 

ARTICLE
V.

MISCELLANEOUS

 

5.1
Termination. This Agreement may be terminated by any Purchaser, as to such Purchaser’s obligations hereunder only
and without any effect whatsoever on the obligations between the Company and the other Purchasers, by written notice to the other
parties, if the Closing has not been consummated on or before the fifth (5th) Trading Day following the date hereof;
provided, however, that no such termination will affect the right of any party to sue for any breach by any other
party (or parties).

 

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

 

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

 

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

 

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

 

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

 

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

 

5.8
No Third-Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective successors
and permitted assigns and is not for the benefit of, nor may any provision hereof be enforced by, any other Person, except as
otherwise set forth in Section 4.8 and this Section 5.8.

 

5.9
Governing Law. All questions concerning the construction, validity, enforcement and interpretation of the Transaction Documents
shall be governed by and construed and enforced in accordance with the internal laws of the State of Nevada, without regard to
the principles of conflicts of law thereof. Each party agrees that all legal Proceedings concerning the interpretations, enforcement
and defense of the transactions contemplated by this Agreement and any other Transaction Documents (whether brought against a
party hereto or its respective affiliates, directors, officers, shareholders, partners, members, employees or agents) shall be
commenced exclusively in the state and federal courts sitting in Clark County, State of Nevada. Each party hereby irrevocably
submits to the exclusive jurisdiction of the state and federal courts sitting in Clark County, State of Nevada for the adjudication
of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein (including
with respect to the enforcement of any of the Transaction Documents), and hereby irrevocably waives, and agrees not to assert
in any Action or Proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such Action
or Proceeding is improper or is an inconvenient venue for such Proceeding. Each party hereby irrevocably waives personal service
of process and consents to process being served in any such Action or Proceeding by mailing a copy thereof via registered or certified
mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Agreement
and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein
shall be deemed to limit in any way any right to serve process in any other manner permitted by law. If any party shall commence
an Action or Proceeding to enforce any provisions of the Transaction Documents, then, in addition to the obligations of the Company
under Section 4.7, the prevailing party in such Action or Proceeding shall be reimbursed by the non-prevailing party for its reasonable
attorneys’ fees and other costs and expenses incurred with the investigation, preparation and prosecution of such Action
or Proceeding.

 

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

 

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5.11
Execution. This Agreement may be executed in two or more counterparts, all of which when taken together shall be considered
one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to each other
party, it being understood that the parties need not sign the same counterpart. In the event that any signature is delivered by
facsimile transmission or by e-mail delivery of a “.pdf” format data file, such signature shall create a valid and
binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as if
such facsimile or “.pdf” signature page were an original thereof.

 

5.12
Severability. If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction
to be invalid, illegal, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein
shall remain in full force and effect and shall in no way be affected, impaired or invalidated, and the parties hereto shall use
their commercially reasonable efforts to find and employ an alternative means to achieve the same or substantially the same result
as that contemplated by such term, provision, covenant or restriction. It is hereby stipulated and declared to be the intention
of the parties that they would have executed the remaining terms, provisions, covenants and restrictions without including any
of such that may be hereafter declared invalid, illegal, void or unenforceable.

 

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

 

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

 

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

 

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

 

    32 

     

    

 

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

 

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

 

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

 

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

 

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

 

(Signature
Pages Follow)

 

    33 

     

    

 

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

 

	SOLUNA HOLDINGS, INC.	 	
	 	 	 	 	 
	By:	 	 	 	 
	 	Name:	 	 	 
	 	Title:	 	 	 

 

With
a copy to (which shall not constitute notice):

 

[REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK

SIGNATURE
PAGE FOR PURCHASER FOLLOWS]

 

    34 

     

    

 

[PURCHASER
SIGNATURE PAGES TO SOLUNA HOLDINGS, INC.

SECURITIES
PURCHASE AGREEMENT]

 

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

 

Name
of Purchaser: ________________________________________________________

 

Signature
of Authorized Signatory of Purchaser: _________________________________

 

Name
of Authorized Signatory: _______________________________________________

 

Title
of Authorized Signatory: ________________________________________________

 

Email
Address of Authorized Signatory:_________________________________________

 

Facsimile
Number of Authorized Signatory: __________________________________________

 

Address
for Notice to Purchaser:

 

Election
for book-entry Preferred Shares: _____[check for book-entry shares]

 

Election
for physical delivery of a Preferred Stock certificate: _____[check for physical stock certificate]

 

Address
for Delivery of Warrants ( and Preferred Stock Certificate. If applicable) to Purchaser (if not same as address for notice):

 

Subscription
Amount: $_________________

 

Preferred
Shares: _________________

 

Warrant
Shares: ___________________

 

The
applicable Beneficial Ownership Limitation of the Purchaser shall be: ____4.99% ____ 9.99% [check one]

 

EIN
Number: ____________________

 

☐
Notwithstanding anything contained in this Agreement to the contrary, by checking this box (i) the obligations of the above-signed
to purchase the securities set forth in this Agreement to be purchased from the Company by the above-signed, and the obligations
of the Company to sell such securities to the above-signed, shall be unconditional and all conditions to Closing shall be disregarded,
(ii) the Closing shall occur no later than the second (2nd) Trading Day following the date of this Agreement and (iii)
any condition to Closing contemplated by this Agreement (but prior to being disregarded by clause (i) above) that required delivery
by the Company or the above-signed of any agreement, instrument, certificate or the like or purchase price (as applicable) shall
no longer be a condition and shall instead be an unconditional obligation of the Company or the above-signed (as applicable) to
deliver such agreement, instrument, certificate or the like or purchase price (as applicable) to such other party on the Closing
Date.

 

    35

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