Document:

EX-4.2

 Exhibit 4.2 

HUBBELL INCORPORATED, 

as Issuer 
 AND 

THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A., 

as Trustee 
  

 
 FOURTH
SUPPLEMENTAL INDENTURE 
 Dated as of August 3, 2017 

To 
 INDENTURE 

Dated as of September 15, 1995 

 
  

3.150% Senior Notes due 2027 
  

 FOURTH SUPPLEMENTAL INDENTURE, dated as of August 3, 2017 (this “Fourth
Supplemental Indenture”), between HUBBELL INCORPORATED, a Connecticut corporation (and any person that succeeds thereto, and is substituted therefor, under the terms of the Indenture (as defined below), the “Company”),
and THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A., a national banking association, as Trustee (the “Trustee”). 

WHEREAS, the Company and Chemical Bank (the “Original Trustee”) executed and delivered an Indenture, dated as of
September 15, 1995 (the “Base Indenture” as heretofore supplemented and as supplemented by this Fourth Supplemental Indenture, the “Indenture”), to provide for the issuance by the Company, from
time to time, of senior unsecured debt securities, consisting of debentures, notes, bonds and/or other unsecured evidences of indebtedness, to be issued in one or more series, as provided in the Base Indenture; 

WHEREAS, subsequent to the date of the Base Indenture, The Bank of New York Mellon Trust Company, N.A. acquired the trustee business of a
successor to the Original Trustee and succeeded the Original Trustee as the Trustee under the Base Indenture as heretofore supplemented; 

WHEREAS, the Company previously issued (a) $300,000,000 aggregate principal amount of 5.95% Senior Notes due 2018 pursuant to that certain
First Supplemental Indenture, dated as of June 2, 2008, between the Company and the Trustee, (b) $300,000,000 aggregate principal amount of 3.625% Senior Notes due 2022 pursuant to that certain Second Supplemental Indenture, dated as of
November 17, 2010, between the Company and the Trustee and (c) $400,000,000 aggregate principal amount of 3.350% Senior Notes due 2026 pursuant to that certain Third Supplemental Indenture, dated as of March 1, 2016, between the Company
and the Trustee; 
 WHEREAS, pursuant to joint resolutions of the Board of Directors of the Company and the finance committee of the Board
of Directors of the Company, adopted on July 21, 2017, the Company authorized the creation and issuance of a series of its debt securities under the Base Indenture, designated as the “3.150% Senior Notes due 2027” in the initial
aggregate principal amount of $300,000,000 (the “Notes”); 
 WHEREAS, Section 11.01 of the Base
Indenture provides that, without prior notice to or the consent of any Holders, the Company, when authorized by a Board Resolution, and the Trustee, at any time and from time to time, may enter into one or more indentures supplemental to the Base
Indenture as heretofore supplemented to establish the forms or terms of Debt Securities as permitted by Sections 2.01 and 3.01 of the Base Indenture; 

WHEREAS, the Company desires to establish the forms and terms of the Notes in accordance with Sections 2.01 and 3.01 of the Base
Indenture; 
 WHEREAS, the Company has determined that this Fourth Supplemental Indenture is authorized and permitted by
Section 11.01 of the Base Indenture and has delivered to the Trustee an Opinion of Counsel to that effect and an Opinion of Counsel and an Officers’ Certificate pursuant to Section 1.02 of the
Base Indenture to the effect that all conditions precedent provided for in the Base Indenture as heretofore supplemented to the Trustee’s execution and delivery of this Fourth Supplemental Indenture have been complied with; 

 WHEREAS, the Indenture is subject to the provisions of the Trust Indenture Act that are required
to be part of the Indenture and shall, to the extent applicable, be governed by such provisions; and 
 WHEREAS, all things necessary to
make this Fourth Supplemental Indenture a valid agreement of the Company, in accordance with its terms, and to make the Notes, when executed by the Company and authenticated and delivered by the Trustee, the valid obligations of the Company, have
been performed, and the execution and delivery of this Fourth Supplemental Indenture has been duly authorized in all respects. 
 NOW,
THEREFORE, in consideration of the covenants and agreements set forth herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows: 

ARTICLE 1 
 DEFINITIONS

 Section 1.1 Definition of Terms. For all purposes of this Fourth Supplemental Indenture, except as otherwise
expressly provided or unless the context requires otherwise: 
 (a) a term defined in the Base Indenture and not otherwise defined herein has
the same meaning when used in this Fourth Supplemental Indenture; and 
 (b) the following terms have the meanings given to them in this
Section 1.1(b) and shall have the meanings set forth below for purposes of this Fourth Supplemental Indenture and the Base Indenture as it relates to the Notes created hereby (it being understood that any such terms
appearing in the Base Indenture shall, with respect to the Notes, be deemed amended and restated, and superseded, in their entirety by the following): 

“Additional Notes” shall have the meaning set forth in Section 8.1 hereof. 

“Applicable Premium” shall have the meaning set forth in Exhibit A attached hereto. 

“Attributable Debt” means, with respect to a Sale and Leaseback Transaction with respect to any Principal Property, the
lesser of: (a) the fair market value of such property (as determined in good faith by the Company’s Board of Directors at the time of entering into such Sale and Leaseback Transaction); or (b) the present value of the total net amount
of rent required to be paid under such lease during the remaining term thereof (including any period for which such lease has been extended and excluding any unexercised renewal or other extension options exercisable by the lessee, and excluding
amounts on account of maintenance and repairs, services, taxes and similar charges and contingent rents), discounted at the rate of interest set forth or implicit in the terms of such lease (or, if not practicable to determine such rate, the
weighted average interest rate per annum borne by the Notes) compounded semi-annually. In the case of any lease which is terminable by the lessee upon the payment of a penalty, such net amount will be the lesser of the net amount determined assuming
termination upon the first date 

  
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such lease may be terminated (in which case the net amount will also include the amount of the penalty, but no rent will be considered as required to be paid under such lease subsequent to the
first date upon which it may be so terminated) or the net amount determined assuming no such termination. 
 “Board of
Directors” means, as to any Person, the board of directors or managers, as applicable, of such Person (or, if such Person is a partnership, the board of directors or other governing body of the general partner of such Person) or any
authorized committee thereof. 
 “Business Day” means, with respect to the Notes, any day other than a Saturday, Sunday or
other day on which banking institutions in New York City or in the city where the Corporate Trust Office is located are authorized or obligated by law, regulation or executive order to close. 

“Change of Control Triggering Event” shall have the meaning set forth in Exhibit A attached hereto. 

“Consolidated Net Tangible Assets” means, at any time, the excess over current liabilities of all assets, less goodwill,
trademarks, patents, other like intangibles and the minority interests of others in Subsidiaries, of the Company and its consolidated Subsidiaries, determined on a consolidated basis in accordance with generally accepted accounting principles, as of
the end of the most recently completed accounting period of the Company for which financial information is then available. 

“Corporation” means any corporation, association, company (including any joint stock company and limited liability
company) and business trust. 
 “Debt” shall have the meaning set forth in Section 12.07 of the
Base Indenture (as modified by the Fourth Supplemental Indenture). 
 “Discharged” means that the Company shall be deemed
to have paid and discharged the entire indebtedness represented by, and obligations under, the Notes and to have satisfied all the obligations under the Indenture relating to the Notes (and the Trustee, at the expense of the Company, shall execute
proper instruments acknowledging the same), except (a) the rights of Holders of the Notes to receive, from the trust fund described in Section 15.02(1) of the Base Indenture (as modified by the Fourth Supplemental
Indenture), payment of the principal of (and premium, if any) and interest on such Notes when such payments are due, (b) the Company’s obligations with respect to the Notes under Sections 3.04, 3.05, 3.06, 12.03
and 15.03 and under Section 6.07 of the Base Indenture, as supplemented and amended as of the relevant time and (c) the rights, powers, trusts, duties and immunities of the Trustee under the Base Indenture, as
supplemented and amended as of the relevant time. 
 “DTC” shall have the meaning set forth in
Section 2.4 hereof. 
 “Exchange Act” means the Securities Exchange Act of 1934, as
amended. 
 “Funded Debt” means Debt which matures more than one year from the date of creation, or which is extendable or
renewable at the sole option of the obligor so that it may become payable more than one year from such date or which is classified, in accordance with United 

  
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States generally accepted accounting principles, as long-term debt on the consolidated balance sheet for the most-recently ended fiscal quarter (or if incurred subsequent to the date of such
balance sheet, would have been so classified) of the Person for which the determination is being made. Funded Debt does not include (1) obligations created pursuant to leases, (2) any Debt or portion thereof maturing by its terms within
one year from the time of any computation of the amount of outstanding Funded Debt unless such debt shall be extendable or renewable at the sole option of the obligor in such manner that it may become payable more than one year from such time, or
(3) any Debt for which money in the amount necessary for the payment or redemption of such Debt is deposited in trust either at or before the maturity date thereof. 

“Government” means the government of the United States and any department, agency or instrumentality or political subdivision
thereof and the government of any foreign country with which the Company or its Subsidiaries is permitted to do business under applicable law and any department, agency or political subdivision thereof. 

“Interest Payment Date” shall have the meaning set forth in Section 2.3(a) hereof. 

“Mortgage” means, with respect to any property or assets, any mortgage, pledge, lien or encumbrance on or with respect to
such property or assets (including any conditional sale or other title retention agreement having substantially the same economic effect as any of the foregoing). 

“Principal Property” means any parcel of real property and related fixtures or improvements owned by the Company or any
Restricted Subsidiary and located in the United States, the net book value of which (after deduction of accumulated depreciation) on the date of determination exceeds 1.0% of Consolidated Net Tangible Assets, other than any such real property and
related fixtures or improvements which, as determined in good faith by the Company’s Board of Directors, is not of material importance to the total business conducted by the Company and its Subsidiaries, taken as a whole. 

“Regular Record Date” means, with respect to any Interest Payment Date, the February 1and August 1 (whether or
not a Business Day) preceding the relevant Interest Payment Date. 
 “Restricted Subsidiary” means, with respect to the
Company, any Subsidiary that is a “significant subsidiary” as such term is defined in Rule 1-02(w) of Regulation S-X under the Securities Act;
provided, that a Subsidiary will not be a Restricted Subsidiary if (a) it is principally engaged in the business of finance, banking, credit, leasing, insurance, investments, financial services or other similar operations, or any
combination thereof; (b) it is principally engaged in financing the Company’s operations outside the continental United States of America; (c) substantially all of its assets consist of the capital stock of one or more of the
Subsidiaries engaged in the operations described in the preceding clause (a) or (b) or any combination thereof; (d) a majority of its Voting Stock will at the time be owned directly or indirectly by one or more Subsidiaries which are
not Restricted Subsidiaries; or (e)(i) it has issued and sold either (x) equity securities with aggregate net proceeds in excess of $10,000,000 or (y) debt securities aggregating $10,000,000 or more in principal amount, or
(ii) the Company has sold equity securities of such Subsidiary with aggregate net proceeds to the Company in excess of $10,000,000; provided, however, that the securities referred to in this clause (e) were issued under a
registration statement filed with the Commission pursuant to the Securities Act. 

  
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 “Sale and Leaseback Transaction” means any arrangement with any Person providing
for the leasing by the Company or any Restricted Subsidiary of any Principal Property which has been or is to be sold or transferred by the Company or such Restricted Subsidiary to such Person with the intention of taking back a lease of such
property; provided, that “Sale and Leaseback Transaction” will not include such arrangements that were existing on the date of the Fourth Supplemental Indenture or at the time any Person owning a Principal Property becomes a
Restricted Subsidiary. 
 “Securities Act” means the Securities Act of 1933, as amended. 

“Stated Maturity Date” shall have the meaning set forth in Section 2.2 hereof. 

“Subsidiary” means any Corporation or other entity of which at least a majority of the outstanding capital stock or other
equity interests having by the terms thereof ordinary voting power to elect a majority of the directors, managers, trustees or equivalent of such Corporation or other entity, irrespective of whether or not, at the time, capital stock or other equity
interests of any other class or classes of such Corporation or other entity have or might have voting power by reason of the happening of any contingency, is at the time, directly or indirectly, owned or controlled by the Company or by one or more
Subsidiaries thereof, or by the Company and one or more Subsidiaries thereof. 
 “Successor Corporation” shall have
the meaning set forth in Section 10.01 of the Base Indenture (as modified by the Fourth Supplemental Indenture). 

“U.S. Government Obligations” means securities that are (a) direct obligations of the United States for the payment of
which its full faith and credit is pledged, or (b) obligations of a Person controlled or supervised by and acting as an agency or instrumentality of the United States the payment of which is unconditionally guaranteed as a full faith and credit
obligation by the United States, which, in either case under clause (a) or (b), are not callable or redeemable at the option of the issuer thereof, and shall also include a depository receipt issued by a bank or trust company as custodian with
respect to any such U.S. Government Obligation or a specific payment of interest on or principal of any such U.S. Government Obligation held by such custodian for the account of the holder of a depository receipt; provided that (except as
required by law) such custodian is not authorized to make any deduction from the amount payable to the holder of such depository receipt from any amount received by the custodian in respect of the U.S. Government Obligation or the specific payment
of interest on or principal of the U.S. Government Obligation evidenced by such depository receipt. 
 “USA Patriot Act”
shall have the meaning set forth in Section 9.9 hereof. 

  
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 ARTICLE 2 

GENERAL TERMS AND CONDITIONS OF THE NOTES 

Section 2.1 Designation and Principal Amount. The Notes may be issued from time to time upon Company Order for the
authentication and delivery of the Notes pursuant to Sections 3.01 and 3.03 of the Base Indenture. There is hereby authorized a series of Debt Securities designated as the “3.150% Senior Notes due 2027,” initially limited in
aggregate principal amount to $300,000,000 (except upon registration of transfer of, or in exchange for, or in lieu of, other Notes pursuant to Sections 3.03, 3.04, 3.05, 3.06, 11.06 or 13.07 of the Base
Indenture). 
 Section 2.2 Stated Maturity Date. The Notes will mature and become due and payable, together with
any accrued and unpaid interest thereon, on August 15, 2027 (the “Stated Maturity Date”). 
 Section 2.3
Interest. 
 (a) The Notes will bear interest at the rate of 3.150% per annum from August 3, 2017. Interest on the
Notes will be payable semi-annually in arrears on February 15 and August 15 of each year (each, an “Interest Payment Date”), beginning on February 15, 2018, to the Persons in whose names the respective Notes are
registered at the close of business on the Regular Record Date preceding the relevant Interest Payment Date. If any Interest Payment Date is not a Business Day, then payment will be made on the next succeeding Business Day, but without any
additional interest or other amount. 
 (b) Interest payable on any Interest Payment Date (and the Stated Maturity Date) shall be the amount
of interest accrued from, and including, the immediately preceding Interest Payment Date in respect of which interest has been paid or duly provided for (or from and including the date hereof, if no interest has previously been paid or duly provided
for with respect to the Notes) to, but excluding, such Interest Payment Date (or the Stated Maturity Date). 
 (c) Interest on the Notes will
be computed on the basis of a 360-day year of twelve 30-day months. 

Section 2.4 Place of Payment and Appointment. Principal of, premium, if any, on and interest on the Notes shall be
payable in Dollars, the transfer of the Notes shall be registrable, and the Notes shall be exchangeable for Notes of a like aggregate principal amount, at the office or agency of the Company maintained for such purpose in New York, New York, which
shall initially be the office or agency of the Trustee in New York, New York; provided, that payment of interest may be made at the option of the Company by check mailed to the Person entitled thereto at such address as shall appear in
the Security Register or by wire transfer to an account appropriately designated by the Person entitled to payment; and provided, further, that the Company shall pay principal of, premium, if any, on, and interest on, the Notes in
global form registered in the name of or held by The Depository Trust Company (“DTC”) or such other U.S. Depositary as any officer of the Company may from time to time designate, or its respective nominee, by wire in immediately
available funds to DTC (or such other U.S. Depositary) or its nominee, as the case may be, as the Holder of such Notes in global form. 

The Security Registrar for the Notes shall be the Trustee; and the Paying Agent for the Notes shall initially be the Trustee. 

Section 2.5 [Reserved]. 

  
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 Section 2.6 Denominations. The Notes will be issued in Dollars and only in
minimum denominations of $2,000 and integral multiples of $1,000 in excess thereof. 
 Section 2.7 Global Notes. The
Notes will be issued initially in the form of a permanent Global Note in registered form deposited with, or on behalf of, DTC and registered, at the request of DTC, in the name of Cede & Co. Except as set forth in the Base Indenture
(as modified by this Fourth Supplemental Indenture), the Global Note may be transferred, in whole and not in part, only to another nominee of DTC or to a successor of DTC or its nominee. The Company will make principal and interest payments on
the Notes represented by the Global Note to the Paying Agent which in turn will make payment to DTC or its nominee, as the case may be, as the sole registered owner and the sole Holder of the Notes represented by the Global Note for all purposes
under the Indenture. So long as DTC or its nominee is the registered owner of a Global Note, DTC or its nominee, as the case may be, will be considered the sole owner and Holder of the Notes represented by that Global Note for all purposes of
the Notes.
 Section 2.8 Form of the Notes. The form of the Notes and the Trustee’s Certificate of Authentication to
be endorsed thereon shall be substantially in the form attached as Exhibit A hereto, with such changes therein as the officers of the Company executing the Notes (by manual or facsimile signature) may approve, such approval to be conclusively
evidenced by their execution thereof. 
 Section 2.9 No Sinking Fund. The Notes will not have the benefit of any sinking
fund. 
 ARTICLE 3 

REDEMPTION OF THE NOTES 

Section 3.1 Optional Redemption by Company. 

The Notes will be redeemable in whole or in part, at the Company’s option, in the manner and on the terms set forth in the Notes. 

Section 3.2 Change of Control Triggering Event. 

If a Change of Control Triggering Event occurs, unless the Company has exercised its option to redeem the Notes as described in
Section 3.1 hereof or has defeased the Notes in accordance with Article Fifteen of the Base Indenture (as modified by this Fourth Supplemental Indenture), the Company shall be required to make an offer to each Holder
of the Notes to repurchase all or any part (equal to $2,000 or an integral multiple of $1,000 in excess thereof) of that Holder’s Notes in the manner and on the terms set forth in the Notes. 

ARTICLE 4 
 COVENANTS

 Section 4.1 Consolidation, Merger, Sale or Conveyance. The following provisions
shall apply with respect to the Notes (notwithstanding Sections 10.01 and 10.02 of the Base Indenture, which with respect to the Notes shall be deemed amended and restated, and superseded, in their entirety by the following (it being
understood that the second full paragraph of Section 10.01 of the Base Indenture shall not apply to the Notes)): 

  
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 “Section 10.01. Company May Consolidate, etc., Only on Certain Terms. The
Company will not consolidate with or merge into any other Corporation or sell or convey its properties and assets substantially as an entirety to any Corporation, unless: 

(a) the Corporation formed by such consolidation or into which the Company is merged or the Corporation which acquires by sale or conveyance
the properties and assets of the Company substantially as an entirety (the “Successor Corporation”) is a Corporation organized and existing under the laws of the United States, any State thereof or the District of Columbia and will
expressly assume, by a supplemental indenture, executed and delivered to the Trustee, in form reasonably satisfactory to the Trustee, the due and punctual payment of the principal of (and premium, if any) and interest on the Notes, and the
performance of every covenant of the Indenture on the part of the Company to be performed or observed; 
 (b) immediately after giving effect
to such transaction, no Event of Default, and no event which, after notice or lapse of time, or both, would become an Event of Default, will have occurred and be continuing; and 

(c) the Company or Successor Corporation has delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel each stating that
such consolidation, merger, sale or conveyance and such supplemental indenture comply with this Article Ten (as modified by the Fourth Supplemental Indenture) and that all conditions precedent provided for in the Indenture relating to such
transaction have been complied with. 
 Section 10.02. Successor Corporation Substituted. Upon any consolidation with or merger
into any other Corporation, or any sale or conveyance of the properties and assets of the Company substantially as an entirety in accordance with Section 10.01 (as modified by the Fourth Supplemental Indenture), the
Successor Corporation formed by such consolidation or into which the Company is merged or to which such sale or conveyance is made will succeed to, and be substituted for, and may exercise every right and power of, the Company under the Indenture
with the same effect as if such Successor Corporation had been named as the Company in the Indenture, and thereafter the Company (which term shall for this purpose mean Hubbell Incorporated or any Successor Corporation which shall theretofore have
succeeded thereto, and been substituted therefor, in the manner described in this Section 10.02 (as modified by the Fourth Supplemental Indenture)) will be relieved of all obligations and covenants under the Indenture and
the Notes. 
 Notwithstanding the foregoing, any consolidation, merger, sale or conveyance between or among the Company and its Subsidiaries
shall neither be subject to this Article Ten (as modified by the Fourth Supplemental Indenture) nor prohibited under the Indenture.” 

Section 4.2 Limitation on Liens. The following provisions shall apply with respect to the Notes (notwithstanding
Section 12.07 of the Base Indenture, which with respect to the Notes shall be deemed amended and restated, and superseded, in its entirety by the following): 

  
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 “Section 12.07. Limitation on Liens. The Company will not create or assume, and
will not permit a Restricted Subsidiary to create or assume, otherwise than in favor of the Company or a Subsidiary, any indebtedness for borrowed money (“Debt”) secured by a Mortgage upon any Principal Property or upon any shares
of capital stock or Debt issued by any Subsidiary and owned by the Company or any Restricted Subsidiary, whether now owned or hereafter acquired, without making effective provision whereby the Notes will be secured equally and ratably with, or at
the Company’s option, senior to, such Debt, so long as such Debt is so secured; provided, that the foregoing covenant will not be applicable to Debt secured by the following, and the Debt so secured will be excluded from any computation
under the next succeeding paragraph below: 
 (a) Mortgages on property of the Company or a Restricted Subsidiary existing on the date of the
Fourth Supplemental Indenture; 
 (b) Mortgages on property of a Corporation or other entity existing at the time such Corporation or other
entity is merged into or consolidated with the Company or a Restricted Subsidiary or at the time of a sale, lease or other disposition of the properties of such Corporation or other entity (or a division of such Corporation or other entity) as an
entirety or substantially as an entirety to the Company or a Restricted Subsidiary; provided that any such Mortgage does not extend to any property owned by the Company or any Restricted Subsidiary immediately prior to such merger, consolidation,
sale, lease or disposition; 
 (c) Mortgages to secure or provide for the payment of any part of the cost of acquisition, construction,
development or purchase or improvement of any such property now owned or hereafter acquired or constructed by the Company or a Restricted Subsidiary, or on which property so acquired, constructed, developed, purchased or improved is located, and
created prior to, contemporaneously with or within 270 days after the later of, such improvement, acquisition, construction, development or purchase or the commencement of commercial operation of such property; 

(d) Mortgages on any such property existing at the time of acquisition thereof, whether or not assumed by the Company or such Restricted
Subsidiary; 
 (e) Mortgages on any such property of a Person at the time such Person becomes a Restricted Subsidiary; 

(f) Mortgages created for the sole purpose of extending, renewing or refunding any Mortgage permitted by any of clauses (a)-(e) of this
Section 12.07 (as modified by the Fourth Supplemental Indenture); provided, that the principal amount of Debt secured thereby will not exceed the principal amount of Debt so secured at the time of such extension,
renewal or refunding (plus any premium or fee payable in connection therewith) and that such extension, renewal or refunding Mortgage will be limited to all or any part of the same property (plus improvements on such property, and plus any other
property not then constituting Principal Property) that secured the Mortgage extended, renewed or refunded, or to other property of the Company or its Restricted Subsidiaries not subject to the limitations of this
Section 12.07 (as modified by the Fourth Supplemental Indenture); 

  
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 (g) Mortgages for taxes or assessments or governmental charges or levies not then due and
delinquent or the validity of which is being contested in good faith, and against which an adequate reserve has been established; Mortgages on any such property created in connection with pledges or deposits to secure public or statutory obligations
or to secure performance in connection with bids or contracts; materialmen’s, mechanic’s, carrier’s, workmen’s, repairmen’s or other like Mortgages, or Mortgages on any such property created in connection with deposits to
obtain the release of such Mortgages; Mortgages on any such property created in connection with deposits to secure surety, stay, appeal or customs bonds; Mortgages created by or resulting from any litigation or legal proceeding which is being
contested in good faith by appropriate proceedings; leases and liens, rights of reverter and other possessory rights of the lessor thereunder; zoning restrictions, easements,
rights-of-way or other restrictions on the use of real property or minor irregularities in the title thereto; and any other Mortgages similar to those described in this
clause (g), the existence of which does not, in the opinion of the Company, materially impair the use by the Company or a Restricted Subsidiary of the affected property in the operation of the business of the Company or a Restricted Subsidiary, or
the value of such property for the purposes of such business; 
 (h) Mortgages on any contracts for production, research or development with
or for the Government, directly or indirectly, providing for advance, partial or progress payments on such contracts and for a Mortgage, paramount to all other Mortgages, upon money advanced or paid pursuant to such contracts, or upon any material
or supplies in connection with the performance of such contracts to secure such payments to the Government; and Mortgages or other evidences of interest in favor of the Government, paramount to all other Mortgages, on any equipment, tools,
machinery, land or buildings hereafter constructed, installed or purchased by the Company or a Restricted Subsidiary primarily for the purpose of manufacturing or producing any product or performing any development work, directly or indirectly, for
the Government to secure indebtedness incurred and owing to the Government for the construction, installation or purchase of such equipment, tools, machinery, land or buildings; and 

(i) Mortgages created after the date of the Fourth Supplemental Indenture on any property leased to or purchased by the Company or a Restricted
Subsidiary after such date and securing, directly or indirectly, obligations issued by a state, a territory or a possession of the United States, or any instrumentality or political subdivision of any of the foregoing, or the District of Columbia,
to finance the cost of acquisition or cost of construction of such property, provided, that the interest paid on such obligations is entitled to be excluded from gross income of the recipient pursuant to Section 103(a) of the Internal
Revenue Code of 1986, as amended (or any successor or similar provision), as in effect at the time of the issuance of such obligations. 

Notwithstanding the restrictions described above, the Company and its Restricted Subsidiaries may create or assume Debt secured by Mortgages
without equally and ratably securing the Notes if, at the time of such creation or assumption, after giving effect thereto and to the retirement of any Debt which is concurrently being retired, the aggregate amount of all such Debt secured by
Mortgages (other than any Debt secured in compliance with the first paragraph of this Section 12.07 (as modified by the Fourth Supplemental Indenture) (including any Debt secured by Mortgages permitted as described in
clauses (a) through (i) thereof)) that would otherwise be subject to these restrictions, together with all Attributable Debt with respect to Sale and Leaseback Transactions (permitted under clause (c) of, but not otherwise permitted
by, Section 12.08 (as modified by the Fourth Supplemental Indenture)) does not exceed 15% of the Company’s Consolidated Net Tangible Assets.” 

  
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 Section 4.3 Limitation on Sale and Leaseback Transactions. The
following provisions shall apply with respect to the Notes (notwithstanding Section 12.08 of the Base Indenture, which with respect to the Notes shall be deemed amended and restated, and superseded, in its entirety by the
following): 
 “Section 12.08. Limitation on Sale and Leaseback Transactions. The Company will not, and will not permit a
Restricted Subsidiary to, enter into any Sale and Leaseback Transaction with respect to any Principal Property owned by the Company or such Restricted Subsidiary on the date of the Fourth Supplemental Indenture, unless: 

(a) the Sale and Leaseback Transaction involves a lease for a term of not more than three years, 

(b) the Sale and Leaseback Transaction is between the Company or such Restricted Subsidiary and the Company or a Subsidiary, 

(c) the Company or such Restricted Subsidiary would be entitled, at the effective date of the sale or transfer, to incur Debt secured by a
Mortgage on such Principal Property involved in such Sale and Leaseback Transaction at least equal in amount to the Attributable Debt with respect to such Sale and Leaseback Transaction without equally and ratably securing the Notes pursuant to the
second paragraph of Section 12.07 (as modified by the Fourth Supplemental Indenture), or 
 (d) the terms of such
Sale and Leaseback Transaction are fair and arm’s-length (as determined in good faith by the Company’s Board of Directors) and the Company or any Restricted Subsidiary applies an amount equal to the
greater of (i) the net proceeds of such sale or transfer or (ii) the Attributable Debt with respect to such Sale and Leaseback Transaction within 180 days after the receipt of the proceeds of such sale or transfer to either (or a
combination) of (A) the prepayment or retirement (other than the mandatory retirement, mandatory prepayment or sinking fund payment or by payment at maturity) of Funded Debt of the Company or a Restricted Subsidiary (other than Funded Debt that
is subordinated to the Notes) or (B) the purchase, construction or development of other comparable property.” 
 Section 4.4
Corporate Existence. The following provisions shall apply with respect to the Notes (notwithstanding Section 12.05 of the Base Indenture, which with respect to the Notes shall be deemed amended and
restated, and superseded, in its entirety by the following): 
 “Section 12.05. Corporate Existence. Subject to Article
Ten (as modified by the Fourth Supplemental Indenture), the Company will do or cause to be done all things necessary to preserve and keep in full force and effect its corporate existence, rights (charter and statutory) and franchises;
provided, however, that the Company shall not be required to preserve any such right or franchise if the Board of Directors of the Company shall determine that the preservation thereof is no longer desirable in the conduct of the
business of the Company.” 

  
 -11- 

 ARTICLE 5 

EVENTS OF DEFAULT 

Section 5.1 Events of Default. The following “Events of Default” shall apply with respect to the Notes
(notwithstanding Section 5.01 of the Base Indenture, which with respect to the Notes shall be deemed amended and restated, and superseded, in its entirety by the following): 

“Section 5.01. Events of Default. 

“Event of Default” means, with respect to the Notes, any one of the following events (whatever the reason for such
Event of Default and whether it shall be voluntary or involuntary or be effected by operation of law, pursuant to any judgment, decree or order of any court or any order, rule or regulation of any administrative or governmental body): 

(1) default in the payment of any interest upon the Notes when it becomes due and payable, and continuance of such default for
a period of 30 days; 
 (2) default in the payment of the principal of (and premium, if any, on) the Notes on the date on
which such amount becomes due and payable, whether at the Stated Maturity Date or by declaration of acceleration, call for redemption, repayment at the option of the Holders of the Notes or otherwise; 

(3) [Reserved]; 

(4) default in the performance, or breach, of any covenant or warranty of the Company in the Indenture (other than any covenant
or warranty a default in whose performance or whose breach is dealt with elsewhere in this Section 5.01 (as modified by the Fourth Supplemental Indenture) or any covenant or warranty which has been included in the Indenture
solely for the benefit of Debt Securities of series other than the Notes), and continuance of such default or breach for a period of 60 days after there has been given, by registered or certified mail, to the Company by the Trustee or to the Company
and the Trustee by the Holders of at least 25% in principal amount of the Outstanding Notes, a written notice specifying such default or breach and requiring it to be remedied and stating that such notice is a “Notice of Default” under the
Indenture; 
 (5) the entry of a decree or order for relief in respect of the Company by a court having jurisdiction in the
premises in an involuntary case under the Federal bankruptcy laws, as now or hereafter constituted, or any other applicable Federal or State bankruptcy, insolvency or other similar law, or a decree or order adjudging the Company a bankrupt or
insolvent, or approving as properly filed a petition seeking reorganization, arrangement, adjustment or composition of or in respect of the Company under any applicable Federal or State law, or appointing a receiver, liquidator, assignee, custodian,
trustee, sequestrator (or other similar official) of the Company or of any substantial part of its property, or ordering the winding up or liquidation of its affairs, and the continuance of any such decree or order unstayed and in effect for a
period of 60 consecutive days; 

  
 -12- 

 (6) the commencement by the Company of a voluntary case under the Federal
bankruptcy laws, as now or hereafter constituted, or any other applicable Federal or State bankruptcy, insolvency or other similar law, or the consent by it to the entry of an order for relief in an involuntary case under any such law or to the
appointment of a receiver, liquidator, assignee, custodian, trustee, sequestrator (or other similar official) of the Company or of any substantial part of its property, or the making by it of an assignment for the benefit of its creditors, or the
admission by it in writing of its inability to pay its debts generally as they become due, or the taking of corporate action by the Company in furtherance of any such action; or 

(7) [Reserved].” 

ARTICLE 6 
 DEFEASANCE

 Section 6.1 Defeasance Upon Deposit of Moneys or U.S. Government Obligations. The following provisions shall apply
with respect to the Notes (notwithstanding Section 15.02 of the Base Indenture, which with respect to the Notes shall be deemed amended and restated, and superseded, in its entirety by the following): 

“Section 15.02. Defeasance Upon Deposit of Moneys or U.S. Government Obligations. 

At the Company’s option, either (a) the Company shall be deemed to have been Discharged from its obligations with respect to the
Notes (“legal defeasance option”) or (b) the Company shall cease to be under any obligation to comply with any term, provision or condition set forth in Article Ten, Section 12.05,
Section 12.07 and Section 12.08 (in each case, as modified by the Fourth Supplemental Indenture) and Section 3.2 of the Fourth Supplemental Indenture with respect to the
Notes (“covenant defeasance option”) at any time after the applicable conditions set forth below have been satisfied: 

(1) the Company shall have deposited or caused to be deposited irrevocably with the Trustee as trust funds in trust dedicated
solely to, the benefit of the Holders of the Notes (i) money in an amount, or (ii) U.S. Government Obligations which through the payment of interest and principal in respect thereof in accordance with their terms will provide, not later
than one day before the due date of any payment, money in an amount, or (iii) a combination of (i) and (ii), sufficient, in the opinion (with respect to (ii) and (iii)) of a nationally recognized firm of independent public accountants
expressed in a written certification thereof delivered to the Trustee, to pay and discharge each installment of principal (including any mandatory sinking fund payments) of and premium, if any, and interest on, the Outstanding Notes on the dates
such installments of interest or principal and premium are due; 
 (2) such deposit shall not cause the Trustee with respect
to the Notes to have a conflicting interest for purposes of the Trust Indenture Act with respect to the Notes; 
 (3) such
defeasance will not cause the trust resulting from such deposit to constitute, unless it is qualified as, a regulated investment company under the Investment Company Act of 1940, as amended; 

  
 -13- 

 (4) the Company delivers to the Trustee an Officers’ Certificate and an
Opinion of Counsel, each stating that all conditions precedent to the defeasance and discharge of the Notes as contemplated by this Article Fifteen (as modified by the Fourth Supplemental Indenture) have been complied with; 

(5) such deposit will not result in a breach or violation of, or constitute a default under, the Indenture or any other
agreement or instrument to which the Company is a party or by which it is bound; 
 (6) no Event of Default or event
(including such deposit) which, with notice or lapse of time or both, would become an Event of Default with respect to the Notes shall have occurred and be continuing on the date of such deposit and, with respect to the legal defeasance option only,
no Event of Default under Section 5.01(5) or Section 5.01(6) (in each case, as modified by the Fourth Supplemental Indenture) or event which with the giving of notice or lapse of time, or both,
would become an Event of Default under Section 5.01(5) or Section 5.01(6) (in each case, as modified by the Fourth Supplemental Indenture) shall have occurred and be continuing on the 91st day
after such date; and 
 (7) the Company shall have delivered to the Trustee an Opinion of Counsel to the effect that such
defeasance will not cause the beneficial owners of the Notes to recognize income, gain or loss for Federal income tax purposes and such beneficial owners will be subject to Federal income tax on the same amounts, in the same manner and at the same
time as if the defeasance had not occurred, which Opinion of Counsel, in the case of the legal defeasance option, must be based on a ruling from the Internal Revenue Service or a change in the applicable Federal income tax law. 

Notwithstanding the foregoing, if the Company exercises its covenant defeasance option and an Event of Default under
Section 5.01(5) or Section 5.01(6) (in each case, as modified by the Fourth Supplemental Indenture) or an event which with the giving of notice or lapse of time, or both, would become an Event of
Default under Section 5.01(5) or Section 5.01(6) (in each case, as modified by the Fourth Supplemental Indenture) shall have occurred and be continuing on the 91st day after the date of such
deposit, the obligations of the Company referred to under the definition of covenant defeasance option with respect to such Notes shall be reinstated in full.” 

ARTICLE 7 
 SATISFACTION
AND DISCHARGE 
 Section 7.1 Satisfaction and Discharge of Indenture. The following provisions shall apply with
respect to the Notes (notwithstanding the first paragraph of Section 4.01 of the Base Indenture, including clauses (1)-(4) thereof, which paragraph shall, with respect to the Notes, be deemed amended and restated, and
superseded, in its entirety by the following (it being understood that clause (4) of such paragraph shall not apply to the Notes)): 

“Section 4.01. Satisfaction and Discharge of Indenture. 

  
 -14- 

 The Indenture, with respect to the Notes, shall upon Company Request, cease to be of further
effect (except as to any surviving rights of registration of transfer or exchange of the Notes expressly provided for in the Indenture and the right to receive payments of principal (and premium, if any) and interest on the Notes) and the Trustee,
at the expense of the Company, shall execute proper instruments acknowledging satisfaction and discharge of the Indenture, when 

(1) either 

(A) all Notes theretofore authenticated and delivered (other than (i) Notes which have been destroyed, lost or stolen and
which have been replaced or paid as provided in Section 3.06 and (ii) Notes for whose payment money has theretofore been deposited in trust or segregated and held in trust by the Company and thereafter repaid to the
Company or discharged from such trust, as provided in Section 12.04) have been delivered to the Trustee for cancellation; or 

(B) all Notes not theretofore delivered to the Trustee for cancellation, 

(i) have become due and payable, or 

(ii) will become due and payable at their Stated Maturity Date within one year, or 

(iii) if redeemable at the option of the Company, are to be called for redemption within one year under arrangements
satisfactory to the Trustee for the giving of notice by the Trustee in the name, and at the expense, of the Company, 
 and the Company, in
the case of (i), (ii) or (iii) of this subclause (B), has irrevocably deposited or caused to be deposited with the Trustee as trust funds in trust for such purpose an amount in the currency in which the Notes are denominated sufficient to pay
and discharge the entire indebtedness on the Notes for principal (and premium, if any) and interest to the date of such deposit (in the case of Notes which have become due and payable) or to the Stated Maturity Date or Redemption Date, as the case
may be; provided, however, in the event a petition for relief under the Federal bankruptcy laws, as now or hereafter constituted, or any other applicable Federal or State bankruptcy, insolvency or other similar law, is filed with
respect to the Company within 91 days after the deposit and the Trustee is required to return the deposited money to the Company, the obligations of the Company under the Indenture with respect to the Notes shall not be deemed terminated or
discharged; 
 (2) the Company has paid or caused to be paid all other sums payable under the Indenture in respect of the
Notes; and 
 (3) the Company has delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel each
stating that all conditions precedent under the Indenture relating to the satisfaction and discharge of the Indenture with respect to the Notes have been complied with.” 

  
 -15- 

 Section 7.2 Satisfaction and Discharge Requiring Payment of Applicable Premium.
The following provisions shall apply with respect to the Notes and shall be inserted as a new Section 4.03 of the Base Indenture solely with respect to the Notes: 

“Section 4.03. Satisfaction and Discharge Requiring Payment of Applicable Premium. 

Notwithstanding Section 4.01 (as modified by the Fourth Supplemental Indenture), in connection with any discharge
relating to any redemption that requires the payment of the Applicable Premium, the amount deposited shall be sufficient for purposes of the Indenture to the extent that an amount is deposited with the Trustee equal to the Applicable Premium
calculated as of the date of the notice of redemption (and calculated as though the Redemption Date were the date of such notice of redemption), with any deficit as of the Redemption Date only required to be deposited with the Trustee on or prior to
the Redemption Date.” 
 ARTICLE 8 

ADDITIONAL NOTES 

Section 8.1 Additional Notes. The Company may, from time to time, without notice to or consent of the Holders of the Notes,
create and issue additional Notes (the “Additional Notes”) having the same terms and conditions and with the same CUSIP, ISIN and/or other identifying number as the Notes, in an unlimited aggregate principal amount, except
for issue date, issue price, initial interest accrual date and the first payment of interest thereon. Any such Additional Notes will be consolidated with the Notes to form a single series of Debt Securities under the Indenture, provided, that
any such Additional Notes that are not fungible with the Notes for U.S. Federal income tax purposes will have a separate CUSIP, ISIN and/or other identifying number, if applicable, than the Notes. 

ARTICLE 9 
 MISCELLANEOUS

 Section 9.1 Confirmation of Base Indenture. The Base Indenture, as heretofore supplemented and as supplemented by
this Fourth Supplemental Indenture, is in all respects ratified and confirmed, and this Fourth Supplemental Indenture shall be deemed part of the Base Indenture as heretofore supplemented in the manner and to the extent herein and therein provided.

 Section 9.2 Responsibility of Recitals, Etc. The Trustee assumes no responsibility for the correctness
of the statements and recitals herein. The Trustee makes no representations as to the validity or sufficiency of this Fourth Supplemental Indenture or of the Notes. The Trustee shall not be accountable for the use or application by the Company of
the Notes or the proceeds thereof. 
 Section 9.3 Concerning the Trustee. The Trustee does not assume any duties,
responsibility or liabilities by reason of this Fourth Supplemental Indenture other than as set forth in the Base Indenture as heretofore supplemented and, in carrying out its responsibilities hereunder, the Trustee shall have all of the rights,
powers, privileges, protections and immunities which it possesses under the Indenture. 

  
 -16- 

 Section 9.4 Governing Law. This Fourth Supplemental Indenture and the Notes
for all purposes shall be governed by and construed in accordance with the laws of the State of New York. 
 Section 9.5
Severability. In case any provision in this Fourth Supplemental Indenture or in the Notes shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be
affected or impaired thereby. 
 Section 9.6 Counterparts. This Fourth Supplemental Indenture may be executed in any
number of counterparts, each of which shall be an original, but such counterparts shall together constitute but one and the same instrument. 

Section 9.7 Conflict with Trust Indenture Act. If any provision hereof limits, qualifies or conflicts with a provision of
the Trust Indenture Act which is required to be a part of and govern this Fourth Supplemental Indenture, the provision of the Trust Indenture Act shall control. If any provision of this Fourth Supplemental Indenture modifies or excludes any
provision of the Trust Indenture Act which may be so modified or excluded, the latter provision shall be deemed to apply to this Fourth Supplemental Indenture, as so modified or excluded, as the case may be. 

Section 9.8 Effect of Headings. The Article and Section headings herein are for convenience only and shall not affect the
construction hereof. 
 Section 9.9 USA Patriot Act. The parties hereto acknowledge that, in accordance with
Section 326 of the USA Patriot Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)) (as amended, modified or supplemented from time to time, the “USA Patriot Act”),
the Trustee, like all financial institutions, is required to obtain, verify, and record information that identifies each person or legal entity that opens an account. The parties to this Fourth Supplemental Indenture agree that they will provide the
Trustee with such information as the Trustee may request in order for the Trustee to satisfy the requirements of the USA Patriot Act. 

[Remainder of page intentionally left blank] 

  
 -17- 

 IN WITNESS WHEREOF, the parties hereto have caused this Fourth Supplemental Indenture to be duly
executed, as of the day and year first written above. 
  

					
	HUBBELL INCORPORATED
		
	By:	 	 /s/ Maria R. Lee

		 	Name:	 	Maria R. Lee
		 	Title:	 	Treasurer and Vice President,
		 		 	Corporate Strategy and Investor
		 		 	Relations

  

					
	Attest:	 	 /s/ An-Ping Hsieh

		 	Name:	 	An-Ping Hsieh
		 	Title:	 	Senior Vice President,
		 		 	General Counsel & Secretary

  

					
	THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A., as Trustee
		
	By:	 	 /s/ Valere Boyd

		 	Name:	 	Valere Boyd
		 	Title:	 	Vice President

 [Signature Page to Fourth Supplemental Indenture] 

 EXHIBIT A 

[To be included in Global Notes — THIS NOTE IS A GLOBAL NOTE WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS
REGISTERED IN THE NAME OF A U.S. DEPOSITARY OR A NOMINEE THEREOF. THIS NOTE MAY NOT BE EXCHANGED IN WHOLE OR IN PART FOR A NOTE REGISTERED, AND NO TRANSFER OF THIS NOTE IN WHOLE OR IN PART MAY BE REGISTERED, IN THE NAME OF ANY PERSON OTHER THAN SUCH
U.S. DEPOSITARY OR A NOMINEE THEREOF, EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE. 
 UNLESS THIS CERTIFICATE IS PRESENTED BY AN
AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS
REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN
INTEREST HEREIN.] 
 HUBBELL INCORPORATED 

3.150% Senior Notes due 2027 

CUSIP: 443510 AH5 
 ISIN:
US443510AH55 
  

			
	 No. R-[ ]
	  	U.S. $[            ]

 Hubbell Incorporated, a corporation duly organized and existing under the laws of the State of Connecticut
(herein called the “Company,” which term includes any person that succeeds thereto, and is substituted therefor, under the terms of the Indenture hereinafter referred to), for value received, hereby promises to pay to
Cede & Co. or registered assigns, the principal sum of [                ] ($[            ]) on
August 15, 2027 (the “Stated Maturity Date”). This Note will bear interest at the rate of 3.150% per annum from August 3, 2017. Interest on this Note will be payable semi-annually in arrears on February 15 and
August 15 of each year (each, an “Interest Payment Date”), beginning on February 15, 2018, to the Person in whose name this Note is registered at the close of business on the February 1 and August 1
(whether or not a Business Day) preceding the relevant Interest Payment Date (the “Regular Record Date”). If any Interest Payment Date is not a Business Day, then payment will be made on the next succeeding Business Day, but without
any additional interest or other amount. Interest payable on any Interest Payment Date (and the Stated Maturity Date) shall be the amount of interest accrued from, and including, the immediately preceding Interest Payment Date in respect of which
interest has been paid or duly provided for (or from and including the date hereof, if no interest has previously been paid or duly provided for with respect to this Note) to, but excluding, such Interest Payment Date (or the Stated Maturity Date).
Interest on the Notes will be computed on the basis of a 360-day year of twelve 30-day months. 

  
 A-1 

 Principal of, premium, if any, on and interest on this Note shall be payable in Dollars, the
transfer of this Note shall be registrable, and this Note shall be exchangeable for Notes of a like aggregate principal amount, at the office or agency of the Company maintained for such purpose in New York, New York, which shall initially be the
office or agency of the Trustee in New York, New York; provided, that payment of interest may be made at the option of the Company by check mailed to the Person entitled thereto at such address as shall appear in the Security Register
or by wire transfer to an account appropriately designated by the Person entitled to payment; and provided, further, that the Company shall pay principal of, premium, if any, on, and interest on, this Note in global form registered in
the name of or held by DTC or such other U.S. Depositary as any officer of the Company may from time to time designate, or its respective nominee, by wire in immediately available funds to DTC (or such other U.S. Depositary) or its nominee, as the
case may be, as the Holder of this Note in global form. 
 Reference is hereby made to the further provisions of this Note set forth on the
reverse hereof, which further provisions shall for all purposes have the same effect as if set forth at this place. 
 Unless the
certificate of authentication hereon has been executed by the Trustee referred to on the reverse hereof by manual signature, this Note shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose. 

[Remainder of page intentionally left blank] 

  
 A-2 

 IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed under its
corporate seal. 
 Dated: ____________________ 
  

					
	HUBBELL INCORPORATED
		
	By:	 	  

		 	Name:	 	Maria R. Lee
		 	Title:	 	Treasurer and Vice President,
		 		 	Corporate Strategy and Investor
		 		 	Relations

  

					
	Attest:	 	  

		 	Name:	 	An-Ping Hsieh
		 	Title:	 	Senior Vice President,
		 		 	General Counsel & Secretary

 [CORPORATE SEAL] 

Trustee’s Certificate of Authentication 

This Note is one of the Debt Securities of a series referred to in the within-mentioned Indenture. 

Dated: ____________________ 
 THE BANK OF NEW YORK MELLON TRUST
COMPANY, N.A., as Trustee 
  

			
	By:	 	  

		 	 Authorized Signatory

 [Signature Page to Global Note] 

 [Reverse of Note] 

This Note is one of a duly authorized series of Debt Securities of the Company (herein called the “Note” or the
“Notes,” as the case may be), issued and to be issued in one or more series under an Indenture, dated as of September 15, 1995 (the “Base Indenture”), between the Company and Chemical Bank (as predecessor
trustee to The Bank of New York Mellon Trust Company, N.A.), as heretofore supplemented and as supplemented by the Fourth Supplemental Indenture, dated as of August 3, 2017 (the “Fourth Supplemental Indenture” and, the Base
Indenture as heretofore supplemented and as supplemented by the Fourth Supplemental Indenture, the “Indenture”), between the Company and The Bank of New York Mellon Trust Company, N.A., a national banking association, as trustee
(the “Trustee”). Reference is hereby made to the Indenture for a statement of the respective rights, limitations of rights, duties and immunities thereunder of the Company, the Trustee and the Holders of the Notes, and of the terms
upon which the Notes are, and are to be authenticated and delivered. 
 The Notes will be redeemable in whole or in part, at the
Company’s option, at any time and from time to time prior to May 15, 2027 (three months prior to the Stated Maturity Date) at a Redemption Price equal to the greater of (the “Applicable Premium”) (a) 100% of the principal
amount of the Notes to be redeemed and (b) the sum of the present values of the remaining scheduled payments of principal and interest thereon (not including any portion of such payments of interest accrued as of the Redemption Date) discounted
to the Redemption Date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate (as defined below), plus 15 basis points,
plus, in each case, accrued and unpaid interest thereon to, but excluding, the Redemption Date. 
 The Notes will be redeemable in whole or
in part, at the Company’s option, at any time and from time to time on or after May 15, 2027 (three months prior to the Stated Maturity Date) at a Redemption Price equal to 100% of the principal amount of the Notes to be redeemed, plus
accrued and unpaid interest on the Notes to be redeemed to, but excluding, the Redemption Date. 
 Further, installments of interest on the
Notes to be redeemed that are due and payable on Interest Payment Dates falling on or prior to a Redemption Date will be payable on the applicable Interest Payment Date to the Holders of the Notes as of the close of business on the relevant Regular
Record Date according to such Notes and the Indenture. 
 Notice of any redemption will be mailed, or delivered electronically if held by
DTC in accordance with DTC’s customary procedures, not less than 30 days and not more than 60 days prior to the Redemption Date to each Holder of Notes to be redeemed. 

Unless the Company defaults in payment of the Redemption Price, from and after the Redemption Date, interest will cease to accrue on the Notes
or portions thereof called for redemption. If less than all of the Notes are to be redeemed, the Notes to be redeemed will be selected by the Trustee by a method that the Trustee deems to be fair and appropriate. 

For purposes of the foregoing optional redemption provisions, the following terms are applicable: 

  
 A-4 

 “Comparable Treasury Issue” means the United States Treasury security selected
by the Quotation Agent as having an actual or interpolated maturity comparable to the remaining term of the Notes to be redeemed that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new
issues of corporate debt securities of comparable maturity to the remaining term of such Notes. 
 “Comparable Treasury
Price” means, with respect to any Redemption Date, (a) the average of four Reference Treasury Dealer Quotations for such Redemption Date, after excluding the highest and lowest such Reference Treasury Dealer Quotations, (b) if the
Company obtains fewer than four such Reference Treasury Dealer Quotations, the average of all such Reference Treasury Dealer Quotations, or (c) if only one Reference Treasury Dealer Quotation is received, such Reference Treasury Dealer
Quotation. 
 “Primary Treasury Dealer” means a primary U.S. Government securities dealer in New York City. 

“Quotation Agent” means a Reference Treasury Dealer appointed by the Company. 

“Reference Treasury Dealer” means (a) each of J.P. Morgan Securities LLC and Merrill Lynch, Pierce, Fenner &
Smith Incorporated (or their respective affiliates that are Primary Treasury Dealers) and their respective successors; provided, that if any of the foregoing ceases to be a Primary Treasury Dealer, the Company will substitute therefor another
Primary Treasury Dealer and (b) any other Primary Treasury Dealers selected by the Company. 
 “Reference Treasury Dealer
Quotations” means, with respect to each Reference Treasury Dealer and any Redemption Date, the average, as determined by the Quotation Agent, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a
percentage of its principal amount) quoted in writing to the Quotation Agent by such Reference Treasury Dealer at 5:00 p.m. (New York City time) on the third Business Day preceding such Redemption Date. 

“Treasury Rate” means, with respect to any Redemption Date, the rate per annum equal to the semi-annual equivalent yield to
actual or interpolated maturity (on a day count basis) of the Comparable Treasury Issue, assuming a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price for such
Redemption Date. 
 The Company shall execute, and the Trustee shall authenticate and deliver to the Holder of this Note without service
charge, a new Note or Notes, of like tenor and form, of any authorized denomination as requested by such Holder in aggregate principal amount equal to and in exchange for the unredeemed portion of the principal of this Note so surrendered. 

If a Change of Control Triggering Event occurs, unless the Company has exercised its option to redeem the Notes as described above or has
defeased the Notes pursuant to Article Fifteen of the Base Indenture (as modified by the Fourth Supplemental Indenture), the Company will be required to make an offer (a “Change of Control Offer”) to each Holder of the Notes
to repurchase all or any part (equal to $2,000 or an integral multiple of $1,000 in excess thereof) of that Holder’s Notes in the manner and on the terms set forth herein. In a Change of Control

  
 A-5 

 
Offer, the Company will be required to offer payment in cash equal to 101% of the aggregate principal amount of Notes repurchased, plus accrued and unpaid interest, if any, on the Notes
repurchased to, but excluding, the repurchase date (a “Change of Control Payment”). Within 30 days following any Change of Control Triggering Event or, at the Company’s option, prior to any Change of Control, but after public
announcement of the transaction that constitutes or may constitute the Change of Control, a notice will be mailed to the trustee and mailed, or delivered electronically if held by DTC in accordance with DTC’s customary procedures, to Holders of
Notes, describing the transaction that constitutes or may constitute the Change of Control Triggering Event and offering to repurchase such Notes on the repurchase date specified in the applicable notice, which date will be no earlier than 30 days
and no later than 60 days from the date on which such notice is mailed (or delivered electronically) to the Holders of Notes (a “Change of Control Payment Date”). 

The notice will, if mailed (or delivered electronically) prior to the date of consummation of the Change of Control, state that the Change of
Control Offer is conditioned on the Change of Control Triggering Event occurring on or prior to the applicable Change of Control Payment Date specified in the notice. 

On each Change of Control Payment Date, the Company will, to the extent lawful: (a) accept for payment all Notes or portions of Notes
properly tendered pursuant to the applicable Change of Control Offer, (b) deposit with the Paying Agent an amount equal to the Change of Control Payment in respect of all Notes or portions of Notes properly tendered pursuant to the applicable
Change of Control Offer, and (c) deliver or cause to be delivered to the Trustee the Notes properly accepted together with an Officers’ Certificate stating the aggregate principal amount of Notes or portions of Notes being repurchased.

 The Company will not be required to make a Change of Control Offer upon the occurrence of a Change of Control Triggering Event if a third
party makes such an offer in the manner, at the times and otherwise in compliance with the requirements for an offer made by the Company, and such third party purchases all Notes properly tendered and not withdrawn under its offer. In addition, the
Company will not repurchase any Notes if there has occurred and is continuing on the Change of Control Payment Date an Event of Default under the Indenture, other than a default in the payment of the Change of Control Payment upon a Change of
Control Triggering Event. 
 The Company will be required to comply with the requirements of Rule
14e-1 under the Exchange Act and any other securities laws and regulations thereunder, to the extent those laws and regulations are applicable in connection with the repurchase of the Notes as a result of a
Change of Control Triggering Event. To the extent that the provisions of any securities laws or regulations conflict with the Change of Control Offer provisions of the Notes, the Company will comply with such securities laws and regulations and will
not be deemed to have breached the Company’s obligations under the Change of Control Offer provisions of the Notes by virtue of any such conflict and compliance. 

For purposes of the foregoing Change of Control Offer provisions, the following terms are applicable: 

  
 A-6 

 “Change of Control” means the occurrence of any of the following: (a) the
direct or indirect sale, lease, transfer, conveyance or other disposition (other than by way of merger or consolidation), in one or more series of related transactions, of all or substantially all of the Company’s assets and its
subsidiaries’ assets, taken as a whole, to any person, other than the Company or one of its subsidiaries; provided, that none of the circumstances in this clause (a) will be a Change of Control if the persons that
beneficially own the Company’s Voting Stock immediately prior to the transaction own, directly or indirectly, Voting Stock of the transferee person representing a majority of the voting power of the transferee person’s Voting Stock
immediately after giving effect to the transaction; (b) the consummation of any transaction (including, without limitation, any merger or consolidation) the result of which is that any person becomes the beneficial owner (as defined in Rules 13d-3 and 13d-5 under the Exchange Act), directly or indirectly, of more than 50% of the Company’s outstanding Voting Stock, or other Voting Stock into which the
Company’s Voting Stock is reclassified, consolidated, exchanged or changed, measured by voting power rather than number of shares; provided, however, that a person shall not be deemed a beneficial owner of, or to own
beneficially, (i) any securities tendered pursuant to a tender or exchange offer made by or on behalf of such person or any of such person’s affiliates until such tendered securities are accepted for purchase or exchange thereunder or
(ii) any securities if such beneficial ownership (A) arises solely as a result of a revocable proxy delivered in response to a proxy or consent solicitation made by the Company pursuant to the applicable rules and regulations under the
Exchange Act and (B) is not also then reportable on Schedule 13D (or any successor schedule) under the Exchange Act; (c) the Company consolidates with, or merges with or into, any person, or any person consolidates with, or merges with or
into, the Company, in any such event pursuant to a transaction in which any of the Company’s outstanding Voting Stock or the Voting Stock of such other person is converted into or exchanged for cash, securities or other property, other than any
such transaction where the shares of the Company’s Voting Stock outstanding immediately prior to such transaction constitute, or are converted into or exchanged for, a majority of the Voting Stock of the surviving person or any direct or
indirect parent company of the surviving person immediately after giving effect to such transaction, measured by voting power rather than number of shares; (d) the first day on which a majority of the members of the Company’s Board of
Directors are not Continuing Directors; or (e) the adoption of a plan relating to the liquidation or dissolution of the Company. Notwithstanding the foregoing, a transaction will not be deemed to involve a Change of Control if (a) the
Company becomes a direct or indirect wholly-owned subsidiary of a holding company and (b)(1) the direct or indirect holders of the Voting Stock of such holding company immediately following that transaction are substantially the same as the holders
of the Company’s Voting Stock immediately prior to that transaction or (2) immediately following that transaction no person (other than a holding company satisfying the requirements of this sentence) is the beneficial owner, directly or
indirectly, of more than 50% of the Voting Stock of such holding company. As used in this definition, the term “person” has the meaning given thereto in Section 13(d)(3) of the Exchange Act. 

“Change of Control Triggering Event” means the occurrence of both a Change of Control and a Rating Event. 

“Continuing Directors” means, as of any date of determination, any member of the Company’s Board of Directors who
(a) was a member of such Board of Directors on the date the Notes were issued or (b) was nominated for election, elected or appointed to such Board of 

  
 A-7 

 
Directors with the approval of a majority of the Continuing Directors who were members of such Board of Directors at the time of such nomination, election or appointment (either by a specific
vote or by approval of the Company’s proxy statement in which such member was named as a nominee for election as a director, without objection to such nomination). 

“Investment Grade” means a rating equal to or higher than Baa3 (or the equivalent) by Moody’s and BBB- (or the equivalent) by S&P, and the equivalent Investment Grade credit rating from any replacement Rating Agency or Rating Agencies selected by the Company. 

“Moody’s” means Moody’s Investors Service, Inc., and its successors. 

“Rating Agencies” means (a) each of Moody’s and S&P; and (b) if any of Moody’s or S&P ceases to
rate the Notes or fails to make a rating of the Notes publicly available for reasons outside of the Company’s control, a “nationally recognized statistical rating organization” as defined under Section 3(a)(62) of the Exchange
Act selected by the Company (as certified by a Board Resolution) as a replacement agency for Moody’s or S&P, or both of them, as the case may be. 

“Rating Event” means the rating on the Notes is lowered by both Rating Agencies and the Notes are rated below Investment
Grade by both Rating Agencies, in any case on any day during the period (which period will be extended so long as the rating of the Notes is under publicly announced consideration for a possible downgrade by either of the Rating Agencies) commencing
upon the earlier of (i) the first public notice of the occurrence of a Change of Control or (ii) the first public notice of the Company’s intention to effect a Change of Control, and ending 60 days following the consummation of the
Change of Control. However, a Rating Event otherwise arising by virtue of a particular reduction in rating shall not be deemed to have occurred in respect of a particular Change of Control (and thus shall not be deemed a Change of Control Triggering
Event for purposes of the definition of Change of Control Triggering Event) if the Rating Agencies making the reduction in rating to which this definition would otherwise apply do not announce or publicly confirm or inform a Responsible Officer of
the Trustee in writing at the Company’s request that the reduction was the result, in whole or in part, of any event or circumstance comprised of or arising as a result of, or in respect of, the applicable Change of Control. 

“S&P” means Standard & Poor’s Rating Services, a division of McGraw-Hill Financial, Inc., and its
successors. 
 “Voting Stock” means, with respect to any specified “person” (as that term is used in
Section 13(d)(3) of the Exchange Act) as of any date, the capital stock or other equity interests of such person that is at the time entitled to vote generally in the election of the Board of Directors of such person. 

The Notes will not have the benefit of any sinking fund. 

Articles 4 and 15 of the Base Indenture (in each case, as modified by the Fourth Supplemental Indenture) will apply to the
Notes. 

  
 A-8 

 If an Event of Default with respect to the Notes occurs and is continuing, the principal of the
Notes may be declared due and payable in the manner and with the effect provided in the Indenture. 
 As provided in the Indenture and
subject to certain limitations set forth therein, the transfer of the Notes is registrable in the Security Register. If this Note is presented or surrendered for registration of transfer or exchange, it shall (if so required by the Company and the
Trustee) be duly endorsed, or accompanied by a written instrument of transfer in form satisfactory to the Company and the Trustee, duly executed, by the Holder hereof or his attorney duly authorized in writing. 

The Notes will be issued in Dollars and only in minimum denominations of $2,000 and integral multiples of $1,000 in excess thereof. 

No service charge will be payable by the Holder for any registration of transfer or exchange of this Note except as provided in
Section 3.04(b) or 3.06 of the Indenture. The Company may require payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in connection with any registration of transfer or
exchange of this Note, other than those expressly provided in the Indenture to be made at the Company’s own expense or without expense or without charge to the Holders. 

The Company will make principal and interest payments on the Notes represented by this Note to the Paying Agent which in turn will make
payment to DTC or its nominee, as the case may be, as the sole registered owner and the sole Holder of the Notes represented by this Note for all purposes under the Indenture. So long as DTC or its nominee is the registered owner of this Note,
DTC or its nominee, as the case may be, will be considered the sole owner and Holder of the Notes represented by this Note for all purposes of the Notes. 

All capitalized terms used, but not defined, in this Note shall have the meanings assigned to them in the Indenture. 

  
 A-9Blueprint

 

 Exhibit
4.1

NOTE PURCHASE AGREEMENT

 

among

 

YOUNGEVITY INTERNATIONAL, INC.

 

and

 

THE PURCHASERS LISTED ON EXHIBIT A

 

 

 

Dated as of July , 2017

 

 

 

 

 

 

 

 

 

 

-1-

 

Table
of Contents

 

ARTICLE
1 

PURCHASE AND SALE
OF THE UNITS

 

Section
1.1 

Purchase and Sale
of Units 

Section
1.2 

Warrants

Section
1.3 

Note and Warrant
Shares 

Section
1.4 

Purchase Price and
Closing

 

ARTICLE
2 

REPRESENTATIONS AND
WARRANTIES

 

Section
2.1 

Representations and
Warranties of the Company and Subsidiary 

Section
2.2 

Representations and
Warranties of the Purchasers

 

ARTICLE
3 

COVENANTS

 

Section
3.1 

Use of
Proceeds 

Section
3.2 

Securities
Compliance 

Section
3.3 

Liquidation

Section
3.4 

Keeping of Records
and Books of Account 

Section
3.5 

Amendments

Section
3.6 

Other
Agreements 

Section
3.7 

Senior
Status 

Section
3.8 

Reservation of
Shares 

Section
3.9 

Disposition of
Assets

Section
3.8 

Reporting
Status

Section
3.9 

Disclosure of
Transaction

Section
3.10 

Sarbanes-Oxley
Act

Section
3.11 

Conversion and
Exercise Procedures

Section
3.12 

No Integrated
Offerings

Section
3.13 

Subsequent
Financing

Section
3.14 

No Commissions in
Connection with Conversion of Notes 

Section
3.15 

Registration
Rights   

 

Section
3.16 No Manipulation of Price 

 

Section
3.17 

Independent Nature
of Purchasers' Obligations and Rights 

Section
3.18 

Additional
Collateral; Further Assurances

Section
3.19 

Best
Efforts

 

ARTICLE
4 

CONDITIONS

 

Section
4.1 

Conditions
Precedent to the Obligation of the Company to Sell the
Units

Section
4.2 

Conditions
Precedent to the Obligation of the Purchasers to Purchase the
Units

 

ARTICLE
5 

STOCK CERTIFICATE
LEGEND

 

Section
5.1 

Legend

 

ARTICLE
6 

INDEMNIFICATION

 

Section
6.1 

General
Indemnity

Section
6.2 

Indemnification
Procedure

 

ARTICLE
7 

MISCELLANEOUS

 

Section
7.1 

Fees and
Expenses

Section
7.2 

Specific
Enforcement, Consent to Jurisdiction

Section
7.3 

Entire Agreement;
Amendment

Section
7.4 

Notices

Section
7.5 

Waivers

Section
7.6 

Headings

Section
7.7 

Successors and
Assigns

Section
7.8 

Rescission and
Withdrawal Right

Section
7.9 

Replacement of
Securities

Section
7.10 

Limitation of
Liability

Section
7.11 

No Third Party
Beneficiaries

Section
7.12 

Governing
Law

Section
7.13 

Survival

Section
7.14 

Counterparts

Section
7.15 

Severability

Section
7.16 

Further
Assurances

Section
7.17 

Currency

Section
7.18 

Termination

 

 

 

-2-

 

 

EXHIBIT LIST

	
 

	
 

	
 

	

Exhibit
A

	

List of
Purchasers

	
 

	
 

	
 

	
 

	

Exhibit
B

	

Definition
of Accredited Investor

	
 

	
 

	
 

	
 

	

Exhibit
B-1

	

Accredited
Investor Representations and Acknowledgements

	
 

	
 

	
 

	
 

	

Exhibit
B-2

	

Subscription
Agreement

	
 

	
 

	
 

	
 

	

Exhibit
C

	

Form of
Convertible Note

	
 

	
 

	
 

	
 

	

Exhibit
D

	

Form of
Series D Warrant

	
 

	
 

	
 

	
 

	

Exhibit
E

	

Form of
Escrow Deposit Agreement

	
 

	
 

	
 

	
 

	

Exhibit
F

	

Form of
Registration Rights Agreement

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

 

 

 

-3-

 

 

 

NOTE PURCHASE AGREEMENT

 

This
NOTE PURCHASE AGREEMENT (this “Agreement”) is dated as
of July , 2017 by and among Youngevity International, Inc., a
Delaware corporation (the “Company”), and each of
the Purchasers whose names are set forth on Exhibit A hereto (individually,
a “Purchaser” and
collectively, the “Purchasers”).

 

RECITALS

 

WHEREAS, subject to
the terms and conditions set forth in this Agreement and pursuant
to Section 4(a)(2) of the Securities Act of 1933, as amended (the
“Securities
Act”) and/or Rule 506 promulgated thereunder, 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;

 

WHEREAS, the
Company is offering a minimum of $100,000 of Units (the
"Minimum Offering
Amount") and a maximum of $9,000,000 of Units (the
“Maximum Offering
Amount”), with a right to
offer up to an additional $1,000,000 of Units (the
“Over-allotment
Option”) for a total
possible offering amount of $10,000,000; the final offering
amount being hereinafter referred to as the “Financing Transaction”,
with each Unit (each a “Unit”)consisting of: (i)
a three (3) year convertible note (the “Note(s)”) in the
principal amount of $25,000 initially convertible into shares of
the Company’s common stock, par value $0.001 per share (the
“Common
Stock”) at the lessor of (x) the volume weighted average price
(“VWAP”) of the
Company’s Common Stock for the five Business Days prior to
the Initial Closing Date, or (y) $4.60 per share (subject to
adjustment); and (ii) one (1) Series D Warrant (the
“Series D
Warrant” or “Warrant(s)”), each
exercisable to purchase 50% of the number of shares of Common Stock
issuable upon conversion of the Note at an exercise price equal to
equal to one hundred twenty percent (120%) of the closing price of
the Company’s common stock on the Initial Closing Date;
and

 

AGREEMENT

 

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

 

 ARTICLE
1

PURCHASE AND SALE OF THE UNITS

 

Section
1.1 Purchase and Sale of Units.
Upon the following terms and conditions, the Company is offering to
each Purchaser the number of Units set forth opposite such
Purchaser’s name as Exhibit A hereto, up to
$9,000,000, consisting of: (i) convertible Notes, in substantially
the form attached hereto as Exhibit C, initially
convertible into up to ________ shares of Common Stock (subject to
adjustment); and (ii) up to ________ Series D Warrants. The terms
and provisions of the Notes are set forth therein.

 

Section
1.2 Warrants. Each of the
Purchasers shall be issued, as part of the Units and per each Unit,
one (1) Series D Warrant, each of which is exercisable to purchase
50% of the number of shares of Common Stock issuable upon
conversion of the Note, at a price equal to one hundred twenty
percent (120%) of the closing price of the Company’s Common
Stock on its Trading Market (as herein defined) on the Initial
Closing Date. The Series D Warrant, in substantially the form
attached hereto as Exhibit
D, shall expire thirty six (36) months following the Closing
Date.

 

Section
1.3 Note and Warrant Shares. The
Company has authorized and has reserved and covenants to continue
to reserve, free of preemptive rights and other similar contractual
rights of stockholders, a number of shares of Common Stock equal to
one hundred ten percent (110%) of the number of shares of Common
Stock as shall from time to time be sufficient to effect conversion
of all of the Notes and exercise of the Warrants then outstanding.
Any shares of Common Stock issuable upon conversion of the Notes
and exercise of the Warrants (and such shares when issued) are
herein referred to as the “Note Shares” and the
“Warrant
Shares”, respectively. The Note Shares and the Warrant
Shares are sometimes collectively referred to as the
“Shares” and together with
the Notes and Warrants, the “Securities”.

 

 

 

-4-

 

 

Section
1.4 Purchase Price and Closing.
Subject to the terms and conditions hereof, the Company agrees to
issue and sell to the Purchasers and, in consideration of and in
express reliance upon the representations, warranties, covenants,
terms and conditions of this Agreement, the Purchasers, severally
but not jointly, agree to purchase the Units for $25,000.00 per
Unit (the “Unit
Price”) for an aggregate purchase price up to
$10,000,000, including the over allotment options, (the amount paid
by each Purchaser is referred herein as the “Purchase Price”). Subject
to all conditions to closing being satisfied or waived, the closing
of the purchase and sale of the Units shall take place at the
offices of Hunter Taubman Fischer & Li LLC (the
“Closing”) by the earlier
to occur of (a) completion of the Minimum Offering Amount and
receipt by the Escrow Agent (as defined in the Escrow Deposit
Agreement) of the Minimum Offering Amount, or (b) by 5:00 pm
(Eastern Time) on _______ [ ], 2017 (the “Initial Closing Date”);
or by the earlier of (a) completion of the sale of all Units
included in the Maximum Offering (subject to increase to cover
over-allotments, if any), or (b) by 5:00 p.m. (Eastern Time) on
_______ [ ], 2017 (the “Final Closing Date”)
which can be further extended up to 30 days by the mutual agreement
of the Company and the Placement Agent if the sale of all Units in
the Maximum Offering has not been completed by _______ [ ], 2017
(the Final Closing Date, collectively with the Initial Closing Date
are sometimes referred herein as the “Closing Date”). Subject
to the terms and conditions of this Agreement, at the Closing the
Company shall deliver or cause to be delivered to each Purchaser
(x) Notes in the amount set forth opposite the name of such
Purchaser on Exhibit
A hereto, (y) the Warrants to purchase such number of shares
of Common Stock as is set forth opposite the name of such Purchaser
on Exhibit A
attached hereto, and (z) any other documents required to be
delivered pursuant to Article 4 hereof. At the time of
the Closing, each Purchaser shall have delivered its Purchase Price
by wire transfer to the escrow account pursuant to the Subscription
Agreement and Escrow Deposit Agreement (as such terms are hereafter
defined). Subject to Section 7.18, the Company and Tripoint may
also, by mutual agreement, terminate the offering and the Company
and TriPoint Global Equities, LLC (the “Placement Agent”) would
then notify the Escrow Agent to return the funds deposited in
escrow, in accordance with the Escrow Deposit
Agreement.

 

 

ARTICLE
2

Representations and
Warranties

 

Section
2.1 Representations and Warranties of the
Company and Subsidiary. The Company hereby represents and
warrants to the Purchasers on behalf of itself, its Subsidiaries,
as set forth on Schedule
2.1(e), as of the date hereof (except as set forth on the
Schedule of Exceptions attached hereto with each numbered Schedule
corresponding to the section number herein), as
follows:

 

(a) Organization, Good Standing and
Power. Each of the Company and its Subsidiaries is a
corporation or other entity duly incorporated or otherwise
organized, validly existing and in good standing under the laws of
its jurisdiction of incorporation or organization (as applicable)
and has the requisite corporate power to own, lease and operate its
properties and assets and to conduct its business as it is now
being conducted. Except as set forth on Schedule 2.1(a), each of the
Company and its Subsidiary is duly qualified to do business and is
in good standing in every jurisdiction in which the nature of the
business conducted or property owned by it makes such qualification
necessary except for any jurisdiction(s) (alone or in the
aggregate) in which the failure to be so qualified will not have a
Material Adverse Effect (as defined in Section 2.1(g) hereof) on
the Company’s consolidated financial condition.

 

(b) Corporate Power; Authority and
Enforcement. The Company has the requisite corporate power
and authority to enter into and perform this Agreement, the Escrow
Deposit Agreement by and among the Company, the Placement Agent and
the escrow agent named therein, substantially in the form of
Exhibit E attached
hereto (the “Escrow
Deposit Agreement”), the Registration Rights
Agreement, substantially in the form of Exhibit F attached hereto (the
“Registration Rights
Agreement”), the Notes, and the Warrants
(collectively, the “Transaction Documents”),
and to issue and sell the Units in accordance with the terms
hereof. The execution, delivery and performance of the Transaction
Documents by the Company and the consummation by it of the
transactions contemplated hereby and thereby have been duly and
validly authorized by all necessary corporate action, and no
further consent or authorization of the Company or its Board of
Directors or stockholders is required. Each of the Transaction
Documents constitutes, or shall constitute when executed and
delivered, a valid and binding obligation of the Company
enforceable against the Company in accordance with its terms,
except as such enforceability may be limited by applicable
bankruptcy, insolvency, reorganization, moratorium, liquidation,
conservatorship, receivership or similar laws relating to, or
affecting generally the enforcement of, creditor’s rights and
remedies or by other equitable principles of general
application.

 

 

 

-5-

 

 

(c) Capitalization. The authorized
capital stock of the Company and the shares thereof currently
issued and outstanding as of the date hereof is set forth on
Schedule 2.1(c)
hereto. All of the issued and outstanding shares of the Common
Stock have been duly and validly authorized. Except as contemplated
by the Transaction Documents or as set forth on Schedule 2.1(c)
hereto:

 

(i) no shares of Common
Stock are entitled to preemptive, conversion or other rights and
there are no outstanding options, warrants, scrip, rights to
subscribe to, call or commitments of any character whatsoever
relating to, or securities or rights convertible into, any shares
of capital stock of the Company;

 

(ii) there
are no contracts, commitments, understandings, or arrangements by
which the Company is or may become bound to issue additional shares
of capital stock of the Company or options, securities or rights
convertible into shares of capital stock of the
Company;

 

(iii) the
Company is not a party to any agreement granting registration or
anti-dilution rights to any person with respect to any of its
equity or debt securities; and

 

(iv) the
Company is not a party to, and it has no knowledge of, any
agreement restricting the voting or transfer of any shares of the
capital stock of the Company.

 

The
offer and sale of all capital stock, convertible securities,
rights, warrants, or options of the Company issued prior to the
Closing complied with all applicable Federal and state securities
laws. The Company has furnished or made available to the Purchasers
true and correct copies of the Company’s Certificate of
Incorporation, as amended and in effect on the date hereof (the
“Certificate of
Incorporation”), and the Company’s Bylaws, as
amended and in effect on the date hereof (the “Bylaws”). Except as
restricted under applicable federal, state, local or foreign laws
and regulations, the Certificate of Incorporation, or the
Transaction Documents, or as set forth on Schedule 2.1 (c), no written or
oral contract, instrument, agreement, commitment, obligation, plan
or arrangement of the Company shall limit the payment of dividends
on the Company’s Common Stock.

 

(d) Issuance of Shares. The Units,
the Notes, and the Warrants to be issued at the Closing have been
duly authorized by all necessary corporate action and immediately
after the Closing, the Purchasers will be the record and beneficial
owners of all of such securities and have good and valid title to
all of such securities, free and clear of all encumbrances. When
the Note Shares and the Warrant Shares are issued in accordance
with the terms of the Notes and the Warrants, respectively, such
Shares will be duly authorized by all necessary corporate action
and validly issued and outstanding, fully paid and nonassessable,
and the holders will be entitled to all rights accorded to a holder
of Common Stock and will be the record and beneficial owners of all
of such securities and have good and valid title to all of such
securities, free and clear of all encumbrances.

 

(e) Subsidiaries. Schedule 2.1(e) hereto sets
forth each Subsidiary of the Company, showing the jurisdiction of
its incorporation or organization and showing the percentage of
ownership of each Subsidiary. There are no outstanding preemptive,
conversion or other rights, options, warrants or agreements granted
or issued by or binding upon any Subsidiary for the purchase or
acquisition of any shares of capital stock of any Subsidiary or any
other securities convertible into, exchangeable for or evidencing
the rights to subscribe for any shares of such capital stock.
Neither the Company, nor any Subsidiary is subject to any
obligation (contingent or otherwise) to repurchase or otherwise
acquire or retire any shares of the capital stock of any Subsidiary
or any convertible securities, rights, warrants or options of the
type described in the preceding sentence. Except as filed as
exhibits to the Commission Documents (as defined below), neither
the Company nor any Subsidiary is party to, nor has any knowledge
of, any agreement restricting the voting or transfer of any shares
of the capital stock of any Subsidiary. All of the outstanding
shares of capital stock of each Subsidiary has been duly authorized
and validly issued, and are fully paid and non-assessable. For the
purposes of this Agreement, “Subsidiary” shall mean
any corporation or other entity of which at least a majority of the
securities or other ownership interests having ordinary voting
power (absolutely or contingently) for the election of directors or
other persons performing similar functions are at the time owned
directly or indirectly by the Company and/or any
Subsidiary.

 

 

 

-6-

 

 

(f) Shell Company Status. The
Company is not a shell company (as defined in Rule 405 under the
Securities Act) and has never been an issuer subject to Rule 144(i)
under the Securities Act.

 

(g) Commission Documents, Financial
Statements. The Company has filed all reports, schedules,
forms, statements and other documents required to be filed by it
with the Securities and Exchange Commission (the
“Commission”)
pursuant to the reporting requirements of the Securities Exchange
Act of 1934, as amended (the “Exchange Act”), including
material filed pursuant to Section 13(a) or 15(d) of the Exchange
Act (all of the foregoing including filings incorporated by
reference therein being referred to herein as the
“Commission
Documents”). The Company has not provided to the
Purchasers any material non-public information or other information
which, according to applicable law, rule or regulation, was
required to have been disclosed publicly by the Company but which
has not been so disclosed, other than (i) with respect to the
transactions contemplated by this Agreement, or (ii) pursuant to a
non-disclosure or confidentiality agreement signed by the
Purchasers. At the time of the respective filings, the Annual
Report on Form 10-K for the year ended December 31, 2016 (the
“Form
10-K”) and the Quarterly Report on Form 10-Q for the
quarter ended on March 31, 2017 (the “Form 10-Q”) complied in
all material respects with the requirements of the Exchange Act and
the rules and regulations of the Commission promulgated thereunder
and other federal, state and local laws, rules and regulations
applicable to such documents. As of their respective filing dates,
neither the Form 10-K nor the Form 10-Q contained any untrue
statement of a material fact; and neither omitted to state a
material fact required to be stated therein or necessary in order
to make the statements therein, in light of the circumstances under
which they were made, not misleading. The financial statements of
the Company included in the Commission Documents (the
“Financial
Statements”) comply as to form in all material
respects with applicable accounting requirements and the published
rules and regulations of the Commission or other applicable rules
and regulations with respect thereto. The Financial Statements have
been prepared in accordance with United States generally accepted
accounting principles (“GAAP”) applied on a
consistent basis during the periods involved (except: (i) as may be
otherwise indicated in the Financial Statements or the notes
thereto; or (ii) in the case of unaudited interim statements, to
the extent they may not include footnotes or may be condensed or
summary statements), and fairly present in all material respects
the consolidated financial position of the Company as of 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 year-end audit adjustments).

 

(h) No Material Adverse Effect.
Since March 31, 2017, neither the Company, nor any Subsidiary has
experienced or suffered any Material Adverse Effect. For the
purposes of this Agreement, “Material Adverse Effect”
means any of: (i) a material and adverse effect on the legality,
validity or enforceability of this Agreement or the other
Transaction Documents; (ii) a material adverse effect on the
business, operations, properties, or financial condition of the
Company, its Subsidiaries, individually, or in the aggregate and/or
any condition, circumstance, or situation that would prohibit or
otherwise materially interfere with the ability of the Company to
perform any of its obligations under this Agreement or the other
Transaction Documents in any material respect; or (iii) an adverse
impairment to the Company’s ability to perform on a timely
basis its obligations under this Agreement or the other Transaction
Document.

 

(i) No Undisclosed Liabilities.
Other than as disclosed on Schedule 2.1(i) or set forth in
the Commission Documents, to the knowledge of the Company, neither
the Company, nor any Subsidiary has any liabilities, obligations,
claims or losses (whether liquidated or unliquidated, secured or
unsecured, absolute, accrued, contingent or otherwise) other than
those incurred in the ordinary course of the Company’s and
any Subsidiary’s respective businesses since March 31, 2017
and those which, individually or in the aggregate, do not have a
Material Adverse Effect on the Company and any
Subsidiary.

 

(j) No Undisclosed Events or
Circumstances. To the Company’s knowledge, no event or
circumstance has occurred or exists with respect to the Company or
any Subsidiary or their respective businesses, properties,
operations or financial condition, which, under applicable law,
rule or regulation, requires public disclosure or announcement by
the Company but which has not been so publicly announced or
disclosed.

 

 

 

-7-

 

 

(k) Indebtedness. Other than as set
forth on Schedule
2.1(k), the Financial Statements set forth all outstanding
secured and unsecured Indebtedness of the Company, or for which the
Company, or any Subsidiary have commitments as of the date of the
Financial Statements or any subsequent period that would require
disclosure. For the purposes of this Agreement, “Indebtedness” shall mean
(i) any liabilities for borrowed money or amounts owed (other than
trade accounts payable incurred in the ordinary course of
business); (ii) all guaranties, endorsements and other contingent
obligations in respect of Indebtedness of others, whether or not
the same should be reflected in the Company’s consolidated
balance sheet (or the Units thereto), except guaranties by
endorsement of negotiable instruments for deposit or collection or
similar transactions in the ordinary course of business; and (iii)
the present value of any lease payments due under leases required
to be capitalized in accordance with GAAP. Neither the Company, nor
any Subsidiary is in default with respect to any Indebtedness
which, individually or in the aggregate, would have a Material
Adverse Effect.

 

(l) Title to Assets. Except as set
forth on Schedule
2.1(l), the Company has good and marketable title in fee
simple to all real property owned by it and good and marketable
title in all personal property owned by it that is material to the
business of the Company, 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 (ii) Liens
for the payment of federal, state or other taxes, for which
appropriate reserves have been made therefore in accordance with
GAAP and, the payment of which is neither delinquent nor subject to
penalties (liens referenced in subsection (i) and (ii) above are
collectively referred to as “Permitted Liens”). Any
real property and facilities held under lease by the Company are
held by it under valid, subsisting and enforceable leases with
which the Company is in compliance.

 

(m) Actions Pending. Except as
disclosed in the Commission Documents or on Schedule 2.1(m), there is no
action, suit, claim, investigation, arbitration, alternate dispute
resolution proceeding or any other proceeding pending or, to the
knowledge of the Company, threatened against or involving the
Company, any Subsidiary: (i) which questions the validity of this
Agreement or any of the other Transaction Documents or the
transactions contemplated hereby or thereby or any action taken or
to be taken pursuant hereto or thereto; or (ii) involving any of
their respective properties or assets. To the knowledge of the
Company, there are no outstanding orders, judgments, injunctions,
awards or decrees of any court, arbitrator or governmental or
regulatory body against the Company or any Subsidiary or any of
their respective executive officers or directors in their
capacities as such.

 

(n) Compliance with Law. The
Company and its Subsidiaries have all material franchises, permits,
licenses, consents and other governmental or regulatory
authorizations and approvals necessary for the conduct of their
respective business as now being conducted by it unless the failure
to possess such franchises, permits, licenses, consents and other
governmental or regulatory authorizations and approvals,
individually or in the aggregate, could not reasonably be expected
to have a Material Adverse Effect.

 

(o) Compliance. Except as set forth
in the in Schedule
2.1(o), the Company: (i) is not 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), nor has the Company 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.

 

 

 

-8-

 

 

(p) No Violation. The business of
the Company and any Subsidiary is not being conducted in violation
of any federal, state, local or foreign governmental laws, or
rules, regulations and ordinances of any governmental entity,
except for possible violations which singularly or in the aggregate
could not reasonably be expected to have a Material Adverse Effect.
The Company is not required under federal, state, local or foreign
law, rule or regulation to obtain any consent, authorization or
order of, or make any filing or registration with, any court or
governmental agency in order for it to execute, deliver or perform
any of its obligations under the Transaction Documents, or issue
and sell the Units, the Notes, the Warrants, the Notes Shares or
the Warrant Shares in accordance with the terms hereof or thereof
(other than (x) any consent, authorization or order that has been
obtained as of the date hereof, (y) any filing or registration that
has been made as of the date hereof or (z) any filings which may be
required to be made by the Company with the Commission or state
securities administrators subsequent to the Closing).

 

(q) No Conflicts. The execution,
delivery and performance of this Agreement and the Transaction
Documents by the Company and the consummation by the Company of the
transactions contemplated herein and therein do not and will not:
(i) violate any provision of the Certificate of Incorporation or
Bylaws; (ii) conflict with, or constitute a default (or an event
which with notice or lapse of time or both would become a default)
under, or give to others any rights of termination, amendment,
acceleration or cancellation of, any agreement, mortgage, deed of
trust, indenture, note, bond, license, lease agreement, instrument
or obligation to which the Company or any Subsidiary is a party or
by which it or its properties or assets are bound; (iii) create or
impose a lien, mortgage, security interest, pledge, charge or
encumbrance (collectively, “Lien”) of any nature on
any property of the Company or any Subsidiary under any agreement
or any commitment to which the Company or any Subsidiary is a party
or by which the Company, or any Subsidiary is bound or by which any
of its respective properties or assets are bound; or (iv) result in
a violation of any federal, state, local or foreign statute, rule,
regulation, order, judgment or decree (including federal and state
securities laws and regulations) applicable to the Company or any
Subsidiary or by which any property or asset of the Company, or any
Subsidiary are bound or affected, provided, however, that, excluded from
the foregoing in all cases are such conflicts, defaults,
terminations, amendments, accelerations, cancellations and
violations as would not, individually or in the aggregate, have a
Material Adverse Effect.

 

(r) Taxes. Other than as set forth
on Schedule 2.1(r),
each of the Company and any Subsidiary, to the extent its
applicable, has accurately prepared and filed all federal, state
and other tax returns required by law to be filed by it, has paid
or made provisions for the payment of all taxes shown to be due
other than payment being contested and all additional assessments,
and adequate provisions have been and are reflected in the
consolidated financial statements of the Company for all current
taxes and other charges to which the Company, or any Subsidiary, if
any, is subject and which are not currently due and payable. None
of the federal income tax returns of the Company have been audited
by the Internal Revenue Service. The Company has no knowledge of
any additional assessments, adjustments or contingent tax liability
(whether federal, state or foreign) of any nature whatsoever,
whether pending or threatened against the Company or any Subsidiary
for any period, nor of any basis for any such assessment,
adjustment or contingency.

 

(s) Certain Fees. The Company has
agreed to pay Tripoint Global Equities, LLC
(“Tripoint”) or its assigns, a cash placement agent fee
equal to eight percent (8%) of the amount of the gross cash
proceeds received by the Company in connection with the Financing
Transaction and warrants to purchase securities of the Company
equal to eight percent (8%) of the amount of securities underlying
the Notes, exercisable at the Conversion Price of the Notes, and
eight percent (8%) of the amount of securities underlying the
Warrants, exercisable at the Exercise Price of the Warrants,
whether or not converted or exercised, respectively.
Notwithstanding the foregoing, the Company shall pay Tripoint or
its assigns, a cash placement agent fee equal to six percent (6%)
of the amount of the gross cash proceeds received by the Company
from any investor identified directly by its officers, directors or
shareholders, including current shareholder Raymond Bennett, in
connection with the Financing Transaction and warrants to purchase
securities of the Company equal to six percent (6%) of the amount
of securities underlying the Notes, exercisable at the Conversion
Price of the Notes, and six percent (6%) of the amount of
securities underlying the Warrants, exercisable at the Exercise
Price of the Warrants, whether or not converted or exercised,
respectively. Furthermore, The Company has agreed to pay Tripoint
or its assigns, a cash placement agent fee equal to two and one
half percent (2.5%) of the gross amount of any debt conversion from
current Company debt holders (Carl Grover, Tom Myers and Paul
Sallwasser) into the Financing Transaction (“Debt Conversion”), a
common stock fee of two and one half percent (2.5%) of the Debt
Conversion and warrants to purchase securities of the Company equal
to seven percent (7%) of the amount of securities underlying the
Notes, exercisable at the Conversion Price of the Notes, and seven
percent (7%) of the amount of securities underlying the Warrants,
exercisable at the Exercise Price of the Warrants, whether or not
converted or exercised, respectively. The warrants to be issued to
Tripoint will provide that cashless exercise of such warrants will
be available at any time before the three year anniversary of the
Closing Date. The Company shall also be prepared to pay reasonable
legal fees, not to exceed $15,000 in the aggregate. Except as set
forth herein, no brokers fees, finders fees or financial advisory
fees or commissions will be payable by the Company with respect to
the transactions contemplated by this Agreement and the other
Transaction Documents.

 

 

 

-9-

 

 

(t) Intellectual Property. Each of
the Company and any Subsidiary, owns or has the lawful right to use
all patents, trademarks, domain names (whether or not registered)
and any patentable improvements or copyrightable derivative works
thereof, websites and intellectual property rights relating
thereto, service marks, trade names, copyrights, licenses and
authorizations, if any, and all rights with respect to the
foregoing, if any, which are necessary for the conduct of their
respective business as now conducted without any conflict with the
rights of others, except where the failure to so own or possess
would not have a Material Adverse Effect.

 

(u) Books and Records Internal Accounting
Controls. Except as may have otherwise been disclosed in the
Commission Documents, the books and records of the Company, and any
Subsidiary accurately reflect in all material respects the
information relating to the business of the Company and any
Subsidiary, the location and collection of their assets, and the
nature of all transactions giving rise to the obligations or
accounts receivable of the Company, or any Subsidiary. Except as
disclosed on Schedule
2.1(u), the Company and any Subsidiary maintain a system of
internal accounting controls sufficient, in the judgment of the
Company, 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 actions are taken with respect to any
differences.

 

(v) Material Agreements. Any and
all written or oral contracts, instruments, agreements,
commitments, obligations, plans or arrangements, the Company and
any Subsidiary is a party to, that a copy of which would be
required to be filed with the Commission as an exhibit to a
registration statement (collectively, the “Material Agreements”) if
the Company or any Subsidiary were registering securities under the
Securities Act has previously been publicly filed with the
Commission in the Commission Documents. Each of the Company and any
Subsidiary has in all material respects performed all the
obligations required to be performed by them to date under the
foregoing agreements, have received no notice of default and are
not in default under any Material Agreement now in effect the
result of which would cause a Material Adverse Effect.

 

(w) Transactions with Affiliates.
Except as set forth in the Financial Statements or in the
Commission Documents or on Schedule 2.1(w), there are no
loans, leases, agreements, contracts, royalty agreements,
management contracts or arrangements or other continuing
transactions between: (i) the Company, or any Subsidiary on the one
hand; and (ii) on the other hand, any officer, employee, consultant
or director of the Company or any Subsidiary, or any person owning
more than ten percent (10%) capital stock of the Company, or any
Subsidiary, or any member of the immediate family of such officer,
employee, consultant, director or stockholder or any corporation or
other entity controlled by such officer, employee, consultant,
director or stockholder, or a member of the immediate family of
such officer, employee, consultant, director or
stockholder.

 

(x) Private Placement and
Solicitation. Assuming the accuracy of the Purchasers’
representations and warranties set forth in Section 2.2, no registration
under the Securities Act is required for the offer and sale of the
Securities by the Company to the Purchasers as contemplated hereby.
Based in part on the accuracy of the representations of the
Purchasers in Section
2.2, and subject to timely applicable Form D filings
pursuant to Regulation D of the Securities Act with the Commission
and pursuant to applicable state securities laws, the offer, sale
and issuance of the Securities to be issued pursuant to and in
conformity with the terms of this Agreement, will be issued in
compliance with all applicable federal and state securities laws.
Neither the Company nor any of its affiliates, nor any person
acting on its or their behalf, has engaged in any form of general
solicitation or general advertising (within the meaning of
Regulation D under the Securities Act) in connection with the offer
or sale of any of the Units, Notes or Warrants.

 

(y) Governmental Approvals. Except
for the filing of any notice prior or subsequent to the Closing
Date that may be required under applicable state and/or federal
securities laws (which if required, shall be filed on a timely
basis), including the filing of a Form D, no authorization,
consent, approval, license, exemption of, filing or registration
with any court or governmental department, commission, board,
bureau, agency or instrumentality, domestic or foreign, is or will
be necessary for, or in connection with, the execution or delivery
of the Units, the Notes and the Warrants, or for the performance by
the Company of its obligations under this Agreement and the
Transaction Documents.

 

 

 

-10-

 

 

(z) Employees. Except as disclosed
on Schedule 2.1(z),
neither the Company nor any Subsidiary has any collective
bargaining arrangements covering any of its employees. Schedule 2.1(z) sets forth a
list of the employment contracts, agreements regarding proprietary
information, non-competition agreements, non-solicitation
agreements, confidentiality agreement, or any other similar
contract or restrictive covenant, relating to the right of any
officer, employee or consultant to be employed or engaged by the
Company. Since March 31, 2017, no officer, consultant or key
employee of the Company or any Subsidiary whose termination, either
individually or in the aggregate, would have a Material Adverse
Effect, has terminated or, to the knowledge of the Company, has any
present intention of terminating his or her employment or
engagement with the Company or any Subsidiary.

 

(aa) Absence
of Certain Developments. Except as disclosed on Schedule 2.1(aa), since March
31, 2017, other than in the ordinary course of business, neither
the Company, nor any Subsidiary have:

 

(i) issued any stock,
bonds or other corporate securities or any rights, options or
warrants with respect thereto;

 

(ii) borrowed
any amount or incurred or become subject to any liabilities
(absolute or contingent) except current liabilities incurred in the
ordinary course of business which are comparable in nature and
amount to the current liabilities incurred in the ordinary course
of business during the comparable portion of its prior fiscal year,
as adjusted to reflect the current nature and volume of the
business of the Company and any Subsidiary;

 

(iii) discharged
or satisfied any lien or encumbrance or paid any obligation or
liability (absolute or contingent), other than current liabilities
paid in the ordinary course of business;

 

(iv) declared
or made any payment or distribution of cash or other property to
stockholders with respect to its stock, or purchased or redeemed,
or made any agreements so to purchase or redeem, any shares of its
capital stock;

 

(v) sold, assigned or
transferred any other tangible assets, or canceled any debts or
claims, except in the ordinary course of business;

 

(vi) sold,
assigned or transferred any patent rights, trademarks, trade names,
copyrights, trade secrets or other intangible assets or
intellectual property rights, or disclosed any proprietary
confidential information to any person except to customers in the
ordinary course of business or to the Purchasers or their
representatives;

 

(vii) suffered
any material losses or waived any rights of material value, whether
or not in the ordinary course of business, or suffered the loss of
any material amount of prospective business;

 

(viii) made
any changes in employee compensation except in the ordinary course
of business and consistent with past practices;

 

(ix) made
capital expenditures or commitments therefor that aggregate in
excess of $50,000;

 

(x) entered into any
other transaction other than in the ordinary course of business, or
entered into any other material transaction, whether or not in the
ordinary course of business;

 

(xi) made
charitable contributions or pledges in excess of
$10,000;

 

(xii) suffered
any material damage, destruction or casualty loss, whether or not
covered by insurance;

 

 

 

-11-

 

 

(xiii) experienced
any material problems with labor or management in connection with
the terms and conditions of their employment;

 

(xiv) effected
any two or more events of the foregoing kind which in the aggregate
would be material to the Company or any Subsidiary; or

 

(bb) entered
into an agreement, written or otherwise, to take any of the
foregoing actions.

 

(cc) Public
Utility Holding Company Act; Investment Company Act and U.S. Real
Property Holding Corporation Status. The Company is not a
“holding company” or a “public utility
company” as such terms are defined in the Public Utility
Holding Company Act of 1935, as amended. The Company is not, and as
a result of and immediately upon the Closing will not be, an
“investment company” or a company
“controlled” by an “investment company,”
within the meaning of the Investment Company Act of 1940, as
amended. 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.

 

(dd) ERISA.
No liability to the Pension Benefit Guaranty Corporation has been
incurred with respect to any Plan (as defined below) by the Company
or any of its subsidiaries which is or would be materially adverse
to the Company and its subsidiaries. The execution and delivery of
this Agreement and the other Transaction Documents and the issuance
and sale of the Units, the Note Shares and the Warrants will not
involve any transaction which is subject to the prohibitions of
Section 406 of ERISA or in connection with which a tax could be
imposed pursuant to Section 4975 of the Internal Revenue Code of
1986, as amended, provided, that, if any of the Purchasers, or any
person or entity that owns a beneficial interest in any of the
Purchasers, is an “employee pension benefit plan”
(within the meaning of Section 3(2) of ERISA) with respect to which
the Company is a “party in interest” (within the
meaning of Section 3(14) of ERISA), the requirements of Sections
407(d)(5) and 408(e) of ERISA, if applicable, are met. As used in
this Section 2.1(aa), the term “Plan” shall mean an
“employee pension benefit plan” (as defined in Section
3 of ERISA) which is or has been established or maintained, or to
which contributions are or have been made, by the Company or any
Subsidiary by any trade or business, whether or not incorporated,
which, together with the Company and any Subsidiary is under common
control, as described in Section 414(b) or (c) of the
Code.

 

(ee) Disclosure.
All disclosure provided to the Purchasers regarding the Company and
any Subsidiary or their respective businesses and the transactions
contemplated hereby, furnished by or on behalf of the Company
(including the Company’s representations and warranties set
forth in this Agreement and the disclosure set forth in any
diligence report or business plan provided by the Company or any
person acting on the Company’s behalf) are true and correct
in all material aspects and do not contain any untrue statement of
a material fact or omit to state any material fact necessary in
order to make the statements made therein, in light of the
circumstances under which they were made, not
misleading.

 

(ff) No
Additional Agreements. Neither the Company nor any Affiliate
has any agreement or understanding with any Purchaser with respect
to the transactions contemplated by this Agreement and the
Transaction Documents other than as specified in this Agreement and
the Transaction Documents.

 

(gg) Foreign
Corrupt Practices Act. Neither the Company or 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, directly or indirectly: (i) used any funds, or
will use any proceeds from the sale of the Units, 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 their behalf of which the Company or any
Subsidiary is aware) or any members of their respective management
which is in violation of any applicable law; or (iv) has violated
in any material respect any provision of the Foreign Corrupt
Practices Act of 1977, as amended, and the rules and regulations
thereunder which was or is applicable to the Company, any
Subsidiary.

 

 

 

-12-

 

 

(hh) PFIC.
None of the Company or any Subsidiary is or intends to become a
“passive foreign investment company” within the meaning
of Section 1297 of the U.S. Internal Revenue Code of 1986, as
amended.

 

(ii) OFAC.
None of the Company or any Subsidiary nor, to the knowledge of the
Company, any director, officer, agent, employee, affiliate or
person acting on behalf of any of the Company or any of its
Subsidiaries, is currently subject to any U.S. sanctions
administered by the Office of Foreign Assets Control of the U.S.
Treasury Department (“OFAC”); and the Company
will not directly or indirectly use the proceeds of the sale of the
Units, or lend, contribute or otherwise make available such
proceeds to any of its Subsidiaries, joint venture partner or other
Person or entity, towards any sales or operations in Cuba, Iran,
Syria, Sudan, Myanmar or any other country sanctioned by OFAC or
for the purpose of financing the activities of any Person currently
subject to any U.S. sanctions administered by OFAC.

 

(jj) Money
Laundering Laws. The operations of each of the Company and
any Subsidiary have been conducted at all times in compliance with
the money laundering requirements of all applicable governmental
authorities and any related or similar rules, regulations or
guidelines, issued, administered or enforced by any governmental
authority (collectively, the “Money Laundering Laws”)
and no action, suit or proceeding by or before any court or
governmental authority or any arbitrator involving any of the
Company or any Subsidiary with respect to the Money Laundering Laws
is pending or, to the best knowledge of the Company,
threatened.

 

(kk) Regulatory
Permits. The Company possesses all certificates,
authorizations and permits issued by the appropriate federal,
state, local or foreign regulatory authorities necessary to conduct
their respective businesses, except where the failure to possess
such permits could not reasonably be expected to result in a
Material Adverse Effect (“Material Permits”), and
the Company has not received any notice of proceedings relating to
the revocation or modification of any Material Permit.

 

(ll) Registration
Rights. Except as contemplated herein or in the Registration
Rights Agreement, and except as set forth on Schedule 2.1(ll), no
Person has any right to cause the Company to effect the
registration under the Securities Act of any securities of the
Company or any Subsidiaries.

 

(mm) 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.

 

(nn) Subsequent
Closings/No Integration. The Company has not
made any prior offering nor sold any securities in any prior
offering that would be integrated pursuant to Rule 502(a) with the
sale of the Securities and the transactions contemplated by this
Agreement in which the Company has not taken reasonable steps to
verify that the purchasers of such securities were accredited
investors. Further, the Company covenants and agrees it shall take
reasonable steps to verify that all investors are accredited
investors in connection with: (i) the offer, sale and issuance of
the Securities pursuant to this Agreement in all Closings; and (ii)
pursuant to any other future securities offering that would be
integrated with the transactions contemplated by this
Agreement.

 

(oo) Sarbanes-Oxley
Act. Except as specified in the Commission Documents, the
Company is in compliance with the applicable provisions of the
Sarbanes-Oxley Act of 2002 (the “Sarbanes-Oxley Act”), and
the rules and regulations promulgated thereunder, that are
effective and for which compliance by the Company is required as of
the date hereof.

 

 

 

-13-

 

 

(pp) Solvency.
Based on the financial condition of the Company as of the Closing
Date (and assuming that the Closing shall have occurred): (i) the
Company’s fair saleable value of its 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 for the current fiscal year 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, 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 debt when
such amount 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).

 

(qq) Listing
and Maintenance Requirements. Except as specified in the
Commission Documents, the Company has not, in the two years
preceding the date hereof, received notice from any Trading Market
to the effect that the Company is not in compliance with the
listing maintenance requirement thereof. The Company is, and has no
reason to believe that it will not in the foreseeable future
continue to be, in compliance with the listing and maintenance
requirements for continued listing of the Common Stock on the
Trading Market on which the Common Stock is currently listed or
quoted. The issuance and sale of the Notes under this Agreement and
the Transaction Documents do not contravene the rules and
regulations of the Trading Market which the Common Stock is
currently listed or quoted, and, except as otherwise set forth in
the Transaction Documents, no approval of the stockholders of the
Company thereunder is required for the Company to issue and deliver
to the Purchasers the Notes contemplated by this Agreement and the
Transaction Documents. “Trading Market” means whichever
of the New York Stock Exchange, NYSE MKT, the NASDAQ Global Select
Market, the NASDAQ Global Market, the NASDAQ Capital Market, OTC
Markets or OTC Bulletin Board on which the Common Stock is listed
or quoted for trading on the date in question.

 

Section
2.2 Representations and Warranties of the
Purchasers. Each Purchaser hereby makes the following
representations and warranties to the Company as of the date
hereof, with respect solely to itself and not with respect to any
other Purchaser:

 

(a) Organization and Good Standing of the
Purchasers. If the Purchaser is an entity, such Purchaser is
a corporation, partnership or limited liability company duly
incorporated or organized, validly existing and in good standing
under the laws of the jurisdiction of its incorporation or
organization.

 

(b) Authorization and Power. Each
Purchaser has the requisite power and authority to enter into and
perform this Agreement and each of the other Transaction Documents
to which such Purchaser is a party and to purchase the Units,
consisting of the Notes and Warrants, being sold to it hereunder.
The execution, delivery and performance of this Agreement and each
of the other Transaction Documents to which such Purchaser is a
party by such Purchaser and the consummation by it of the
transactions contemplated hereby and thereby have been duly
authorized by all necessary corporate, partnership or limited
liability company action, and no further consent or authorization
of such Purchaser or its Board of Directors, stockholders,
partners, members, or managers, as the case may be, is required.
This Agreement and each of the other Transaction Documents to which
such Purchaser is a party has been duly authorized, executed and
delivered by such Purchaser and constitutes, or shall constitute
when executed and delivered, a valid and binding obligation of such
Purchaser enforceable against such Purchaser in accordance with the
terms hereof.

 

 

 

-14-

 

 

(c) No Conflicts. The execution,
delivery and performance of this Agreement and each of the other
Transaction Documents to which such Purchaser is a party and the
consummation by such Purchaser of the transactions contemplated
hereby and thereby or relating hereto do not and will not: (i)
result in a violation of such Purchaser’s charter documents,
bylaws, operating agreement, partnership agreement or other
organizational documents; or (ii) conflict with, or constitute a
default (or an event which with notice or lapse of time or both
would become a default) under, or give to others any rights of
termination, amendment, acceleration or cancellation of any
agreement, indenture or instrument or obligation to which such
Purchaser is a party or by which its properties or assets are
bound, or result in a violation of any law, rule, or regulation, or
any order, judgment or decree of any court or governmental agency
applicable to such Purchaser or its properties (except for such
conflicts, defaults and violations as would not, individually or in
the aggregate, have a material adverse effect on such Purchaser).
Such Purchaser is not required to obtain any consent, authorization
or order of, or make any filing or registration with, any court or
governmental agency in order for it to execute, deliver or perform
any of its obligations under this Agreement or any other
Transaction Document to which such Purchaser is a party or to
purchase the Units in accordance with the terms hereof, provided,
that for purposes of the representation made in this sentence, such
Purchaser is assuming and relying upon the accuracy of the relevant
representations and agreements of the Company herein.

 

(d) Status of Purchasers. Each
Purchaser is an “accredited investor”
(“Accredited
Investor”) as defined in Regulation D. Such Purchaser
is not required to be registered as a broker-dealer under Section
15 of the Exchange Act and such Purchaser is not a broker-dealer,
nor an affiliate of a broker-dealer.

 

(e) Acquisition for Investment.
Each Purchaser is acquiring the Units, and the Notes, the
underlying Note Shares, the Warrants and the shares underlying the
Warrants solely for its own account for the purpose of investment
and not with a view to or for sale in connection with a
distribution. The Purchaser does not have a present intention to
sell the Units, the Notes, the Note Shares, the Warrants or the
shares underlying the Warrants, nor a present arrangement (whether
or not legally binding) or intention to effect any distribution of
the Units, Notes, Note Shares, the Warrants or the shares
underlying the Warrants to or through any person or entity;
provided,
however, that by
making the representations herein and subject to Section 2.2(h)
below, such Purchaser does not agree to hold the Units, the Notes,
the Note Shares, the Warrants or the shares underlying the Warrants
for any minimum or other specific term and reserves the right to
dispose of the Units, the Notes, the Note Shares, the Warrants or
the shares underlying the Warrants at any time in accordance with
federal and state securities laws applicable to such
disposition.

 

(f) Knowledge. Each Purchaser
acknowledges that it is able to bear the financial risks associated
with an investment in the Units, the Notes, the Note Shares, the
Warrants and the shares underlying the Warrants and has sufficient
knowledge and experience in investing in companies similar to the
Company in terms of the Company’s stage of development so as
to be able to evaluate the risks and merits of its investment in
the Company. Each Purchaser further acknowledges that the purchase
of the Units, Notes, Warrants and the shares underlying the
Warrants involves substantial risks.

 

(g) Review of Commission Documents.
Each Purchaser represents that such Purchaser has reviewed the
Commission Documents and has been given full and complete access to
the Company for the purpose of obtaining such information as such
Purchaser or its qualified representative has reasonably requested
in connection with the decision to purchase the Securities. Each
Purchaser represents that such Purchaser has been afforded the
opportunity to ask questions of the officers of the Company
regarding its business prospects and the Securities as Purchaser or
Purchaser’s qualified representative have found necessary to
make an informed investment decision to purchase the Securities
hereunder. Each Purchaser acknowledges that it has access to the
Company’s publicly available reports and registration
statements filed with the Commission prior to the Closing via the
internet at www.sec.gov.
The Purchaser is satisfied that it has received adequate
information with respect to all matters which it or its advisors,
if any, consider material to its decision to make this
investment.

 

(h) Additional Representations and
Warranties of Accredited Investors. Each Purchaser
indicating that such Purchaser is an Accredited Investor, severally
and not jointly, further makes the representations and warranties
to the Company set forth on Exhibit B-1.

 

 

 

-15-

 

 

(i) Opportunities for Additional
Information. Each Purchaser acknowledges that such Purchaser
has had the opportunity to ask questions of and receive answers
from, or obtain additional information from, the executive officers
of the Company concerning the financial and other affairs of the
Company.

 

(j) No General Solicitation. Each
Purchaser acknowledges that the Units were not offered to such
Purchaser by means of any form of general or public solicitation or
general advertising, or publicly disseminated advertisements or
sales literature, including: (i) any advertisement, article, notice
or other communication published in any newspaper, magazine, or
similar media, or broadcast over television or radio; or (ii) any
seminar or meeting to which such Purchaser was invited by any of
the foregoing means of communications.

 

(k) Rule 144. Such Purchaser
understands that each of the Note Shares, the Warrants and the
shares underlying the Warrants must be held indefinitely unless
such Note Shares, the Warrants or the shares underlying the
Warrants are registered under the Securities Act or an exemption
from registration is available. Such Purchaser acknowledges that
such Purchaser is familiar with Rule 144, of the rules and
regulations of the Commission, as amended, promulgated pursuant to
the Securities Act (“Rule 144”), and that such
person has been advised that Rule 144 permits resales only under
certain circumstances. Such Purchaser understands that to the
extent that Rule 144 is not available, such Purchaser will be
unable to sell any of the Note Shares, the Warrants or the shares
underlying the Warrants without either registration under the
Securities Act or the existence of another exemption from such
registration requirement.

 

(l) General. Such Purchaser
understands that the Units, the Notes and Warrants are being
offered and sold in reliance on a transactional exemption from the
registration requirements of federal and state securities laws and
the Company is relying upon the truth and accuracy of the
representations, warranties, agreements, acknowledgments and
understandings of such Purchaser set forth herein in order to
determine the applicability of such exemptions and the suitability
of such Purchaser to acquire the Units, the Notes and
Warrants.

 

(m) Independent Investment. Except
as may be disclosed in any filings with the Commission by the
Purchasers under Section 13 and/or Section 16 of the Exchange Act,
no Purchaser has agreed to act with any other Purchaser for the
purpose of acquiring, holding, voting or disposing of the Units,
the Notes, the Note Shares, the Warrants and the shares underlying
the Warrants purchased hereunder for purposes of Section 13(d)
under the Exchange Act, and each Purchaser is acting independently
with respect to its investment in the Units.

 

(n) Brokers. Other than the
Placement Agent and selected dealers of the Placement Agent, no
Purchaser has any knowledge of any brokerage or finder’s fees
or commissions that are or will be payable by the Company to any
broker, financial advisor or consultant, finder, placement agent,
investment banker, bank or other person or entity with respect to
the transactions contemplated by this Agreement and the Transaction
Documents.

 

(o) Confidential Information. Each
Purchaser agrees that such Purchaser and its employees, agents and
representatives will keep confidential and will not disclose,
divulge or use (other than for purposes of monitoring its
investment in the Company) any confidential information which such
Purchaser may obtain from the Company pursuant to financial
statements, reports and other materials submitted by the Company to
such Purchaser pursuant to this Agreement, unless such information
is: (i) known to the public through no fault of such Purchaser or
his or its employees or representatives; (ii) becomes part of the
public domain other than by a breach of this Agreement; (iii)
becomes known by the action of a third party not in breach of a
duty of confidence; or (iv) is required to be disclosed to a third
party pursuant to any applicable law, government resolution, or
decision of any court or tribunal of competent jurisdiction;
provided,
however, that a
Purchaser may disclose such information: (i) to its attorneys,
accountants and other professionals in connection with their
representation of such Purchaser in connection with such
Purchaser’s investment in the Company; (ii) to any
prospective permitted transferee of the Securities; or (iii) to any
general partner or affiliate of such Purchaser, so long as the
prospective transferee agrees to be bound by the provisions of this
Section 2.2(o).

 

 

 

-16-

 

 

ARTICLE 3

Covenants

 

The
Company covenants with each of the Purchasers as follows, which
covenants are for the benefit of the Purchasers and their permitted
assignees (as defined herein).

 

Section
3.1 Use of Proceeds. The Company
shall use the proceeds from this Financing Transaction for working
capital purposes.

 

Section
3.2 Securities Compliance. The
Company shall notify the Commission in accordance with its rules
and regulations, of the transactions contemplated by this Agreement
and the Transaction Documents, including filing a Form D with
respect to the Units, as required under Regulation D and applicable
“blue sky” laws if such Units are offered pursuant to
Rule 506 of Regulation D (“Regulation D”) and shall
take all other necessary action and proceedings as may be required
and permitted by applicable law, rule and regulation, for the legal
and valid issuance of the Units to the Purchasers or subsequent
holders.

 

Section
3.3 Liquidation. Subject to the
terms of the Transaction Documents, the Company covenants that it
will take such further action as the Purchasers may reasonably
request, all to the extent required from time to time to enable the
Purchasers to sell the Units without registration under the
Securities Act within the limitation of the exemptions provided by
Rule 144 promulgated under the Securities Act, as
amended.

 

Section
3.4 Keeping of Records and Books of
Account. The Company shall keep and cause each Subsidiary to
keep adequate records and books of account, in which complete
entries will be made in accordance with GAAP consistently applied,
reflecting all financial transactions of the Company and its
Subsidiaries, and in which, for each fiscal year, all proper
reserves for depreciation, depletion, obsolescence, amortization,
taxes, bad debts and other purposes in connection with its business
shall be made.

 

Section
3.5 Intentionally
Omitted.

 

Section
3.6 Other Agreements. The Company
shall not and shall cause its Subsidiaries, enter into any
agreement the terms of which would restrict or impair the ability
of the Company to perform its obligations under this Agreement and
the Transaction Document.

 

Section
3.7 Intentionally Left
Blank.  

 

Section
3.8 Reservation of Shares. So long
as any of the Notes or Warrants remain outstanding, the Company
shall take all actions necessary to at all times have authorized,
and reserved for the purpose of issuance, no less than one hundred
ten percent (110%) of the aggregate number of shares of Common
Stock needed to provide for the complete issuance of the Note
Shares and the Warrant Shares underlying such outstanding Notes and
Warrants.

 

Section
3.9 Disposition of Assets. So long
as any Notes remain outstanding, neither the Company, nor any of
its Subsidiaries shall sell, transfer or otherwise dispose of any
of its material properties, assets and rights including, without
limitation, its software and intellectual property, to any person
except for: (i) sales to customers in the ordinary course of
business; (ii) sales or transfers between the Company and its
Subsidiaries; (iii) disposition of obsolete or worn out equipment;
or (iv) otherwise with the prior written consent of the Majority
Holders (as defined in Section 7.3 of this
Agreement”).

 

Section
3.10 Reporting Status. So long as a
Purchaser beneficially owns any of the Securities, the Company
shall timely file all reports required to be filed with the
Commission pursuant to the Exchange Act, and the Company shall not
terminate its status as an issuer required to file reports under
the Exchange Act even if the Exchange Act or the rules and
regulations thereunder would permit such termination.

 

 

 

-17-

 

 

Section
3.11 Disclosure of Transaction. The
Company shall file with the Commission, a Current Report on Form
8-K describing the material terms of the transactions contemplated
hereby and all material non-public information disclosed to the
Purchasers prior to the filing as soon as practicable after the
Closing but in no event later than 5:30 p.m. (Eastern Time) on the
fourth Business Day following the Closing. In the event that the
Company is unable to disclose specific non-public information in
the Form 8-K, the Company shall include such information in its
Form 10-Q for the interim period during which the Closing
contemplated hereby occurs. “Business Day” means any
day during which the NASDAQ (or other principal
exchange) shall be open for trading.

 

Section
3.12 Sarbanes-Oxley Act. The Company
shall be in compliance with the applicable provisions of the
Sarbanes-Oxley Act of 2002, and the rules and regulations
promulgated thereunder, as required under such Act.

 

Section
3.13 Conversion and Exercise
Procedures. Each of the form of Notice of Exercise included
in the Warrants and the form of Notice of Conversion included in
the Note set forth the totality of the procedures required of the
Purchasers in order to exercise the Warrants or convert the Note.
The Company shall honor exercises of the Warrants and conversions
of the Note and shall deliver Warrant Shares and Note Shares in
accordance with the terms, conditions and time periods set forth in
the Transaction Documents

 

Section
3.14 No Integrated Offerings. The
Company shall not make any offers or sales of any security (other
than the securities being offered or sold hereunder) under
circumstances that would require registration of the securities
being offered or sold hereunder under the Securities
Act.

 

Section
3.15 Intentionally
Omitted.

 

Section
3.16 Intentionally
Omitted.

 

Section
3.17 Registration Rights. The Purchasers are eligible for the registration
rights set forth in the Registration Rights
Agreement.

 

Section
3.18 No Manipulation of Price. The
Company will not take, directly or indirectly, any action designed
to cause or result in, or that has constituted or might reasonably
be expected to constitute, the stabilization or manipulation of the
price of any securities of the Company.

 

Section
3.19 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 of the obligations of
any other Purchaser under any Transaction Document. The decision of
each Purchaser to purchase Securities pursuant to the Transaction
Documents has been made by such Purchaser independently of any
other Purchaser and independently of any information, materials,
statements or opinions as to the business, affairs, operations,
assets, properties, liabilities, results of operations, condition
(financial or otherwise) or prospects of the Company which may have
been made or given by any other Purchaser or by any agent or
employee of any other Purchaser, and no Purchaser and none of its
agents or employees shall have any liability to any other Purchaser
(or any other Person) relating to or arising from any such
information, materials, statements or opinions. 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 acknowledges that no other
Purchaser has acted as agent for such Purchaser in connection with
making its investment hereunder and that no Purchaser will be
acting as agent of such Purchaser in connection with monitoring its
investment in the Securities or enforcing its rights under 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. It is expressly understood and agreed
that each provision contained in this Agreement is between the
Company and a Purchaser, solely, and not between the Company and
the Purchasers collectively and not between and among the
Purchasers.

 

 

 

-18-

 

 

Section
3.20 Best Efforts. The Company shall
exert its best efforts to satisfy the closing conditions set forth
in Section 4.1 hereof or cause such closing conditions to be
satisfied at or before the Closing.

 

ARTICLE
4

CONDITIONS

 

Section
4.1 Conditions Precedent to the Obligation
of the Company to Sell the Units. The obligation hereunder
of the Company to issue and sell the Units, and the underlying Note
and the Warrants to the Purchasers is subject to the satisfaction
or waiver, at or before the Closing, of each of the conditions set
forth below. These conditions are for the Company’s sole
benefit and may be waived by the Company at any time in its sole
discretion.

 

(a) Accuracy of Each Purchaser’s
Representations and Warranties. The representations and
warranties of each Purchaser in this Agreement and each of the
other Transaction Documents to which such Purchaser is a party
shall be true and correct in all material respects as of the date
when made and as of the Closing Date as though made at that time,
except for representations and warranties that are expressly made
as of a particular date, which shall be true and correct in all
material respects as of such date.

 

(b) Performance by the Purchasers.
Each Purchaser shall have performed, satisfied and complied in all
respects with all covenants, agreements and conditions required by
this Agreement to be performed, satisfied or complied with by such
Purchaser at or prior to the Closing.

 

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

 

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

 

i.

this Agreement duly
executed by such Purchaser, which includes completed Exhibit B-1
and the completed Subscription Agreement, which is attached as
Exhibit B-2; by executing this Agreement, such Purchaser will be
deemed to have executed each of the Transaction Documents and will
be bound by each of their terms even if the Purchaser does not
physically sign such other Transaction Documents; and

 

ii.

such
Purchaser’s Purchase Price by wire transfer to the account as
specified in writing by the Company or by check as per the payment
terms set forth in the Subscription Agreement.

 

Section
4.2 Conditions Precedent to the Obligation
of the Purchasers to Purchase the Units. The obligation
hereunder of each Purchaser to acquire and pay for the Units is
subject to the satisfaction or waiver, at or before the Closing, of
each of the conditions set forth below. These conditions are for
each Purchaser’s sole benefit and may be waived by such
Purchaser at any time in its sole discretion.

 

(a) Accuracy of the Company’s
Representations and Warranties. Each of the representations
and warranties of the Company in this Agreement and the other
Transaction Documents that are qualified by materiality or by
reference to any Material Adverse Effect shall be true and correct
in all respects, and all other representations and warranties shall
be true and correct in all material respects, as of the date when
made and as of the Closing Date as though made at that time, except
for representations and warranties that are expressly made as of a
particular date, which shall be true and correct in all respects as
of such date.

 

 

 

-19-

 

 

(b) Performance by the Company. The
Company shall have performed, satisfied and complied in all
respects with all covenants, agreements and conditions required by
this Agreement to be performed, satisfied or complied with by the
Company at or prior to the Closing.

 

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

 

(d) No Proceedings or Litigation.
No action, suit or proceeding before any arbitrator or any
governmental authority shall have been commenced, and no
investigation by any governmental authority shall have been
threatened, against the Company or any Subsidiary, or any of the
officers, directors or affiliates of the Company or any Subsidiary
seeking to restrain, prevent or change the transactions
contemplated by this Agreement and the Transaction Documents, or
seeking damages in connection with such transactions.

 

(e) Securities. The Company shall
have executed and delivered to the Purchasers the Notes and
Warrants underlying the Units being acquired by such Purchaser at
the Closing to such address set forth next to each Purchasers name
on Exhibit A with
respect to the Closing.

 

(f) Resolutions. The Board of
Directors of the Company shall have adopted resolutions consistent
with Section 2.1(b) hereof in a form reasonably acceptable to such
Purchaser (the “Resolutions”).

 

(g) Reservation of Shares. As of
the Closing Date, the Company shall have reserved out of its
authorized and unissued Common Stock, solely for the purpose of
effecting the conversion of the Notes and the exercise of the
Warrants, a number of shares of Common Stock equal to one hundred
ten percent (110%) of the aggregate number of Note Shares issuable
upon conversion of the Notes issued or to be issued pursuant to
this Agreement and the number of Warrant Shares issuable upon
exercise of the number of Warrants issued or to be issued pursuant
to this Agreement.

 

(h) Secretary’s Certificate.
The Company shall have delivered to such Purchaser a
secretary’s certificate, dated as of the Closing Date,
certifying attached copies of: (i) the Organizational Documents of
the Company; (ii) the resolutions of the Company's Board approving
this Agreement and the transactions contemplated hereby; and (iii)
the incumbency of each authorized officer of the Company signing
this Agreement and the Transaction Documents and any other
documents required to be executed or delivered in connection
herewith and therewith.

 

(i) Officer’s Certificate.
The Company shall have delivered to the Purchasers a certificate of
an executive officer of the Company, dated as of the Closing Date,
confirming the accuracy of the Company’s representations,
warranties and covenants as of the Closing Date and confirming the
compliance by the Company with the conditions precedent set forth
in this Section 4.2 as of the Closing Date.

 

(j) Transaction Documents. On the
Closing Date, the Company shall have executed and delivered the
Transaction Documents, including all required exhibits and
schedules to each Purchaser.

 

(k) Material Adverse Effect. No
Material Adverse Effect shall have occurred at or before the
Closing Date.

 

(l) Intentionally
Omitted

 

(m) Stop Orders. No stop order or
suspension of trading shall have been imposed by the Commission or
any other governmental or regulatory body having jurisdiction over
the Company or the Trading Market(s) where the Common Stock is
listed or quoted, with respect to public trading in the Common
Stock.

 

 

 

-20-

 

 

ARTICLE
5

Stock Certificate
Legend

 

Section
5.1 Legend. Each certificate
representing the Notes Shares, the Warrants and Warrant Shares and
if appropriate, securities issued upon conversion or exercise
thereof, shall be stamped or otherwise imprinted with a legend
substantially in the following form (in addition to any legend
required by applicable state securities or “blue sky”
laws):

 

“THESE
SECURITIES REPRESENTED BY THIS CERTIFICATE (THE
“SECURITIES”) HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), OR ANY STATE SECURITIES LAWS AND MAY NOT BE SOLD,
TRANSFERRED OR OTHERWISE DISPOSED OF UNLESS REGISTERED UNDER THE
SECURITIES ACT AND UNDER APPLICABLE STATE SECURITIES LAWS OR THE
COMPANY SHALL HAVE RECEIVED AN OPINION OF COUNSEL THAT REGISTRATION
OF SUCH SECURITIES UNDER THE SECURITIES ACT AND UNDER THE
PROVISIONS OF APPLICABLE STATE SECURITIES LAWS IS NOT
REQUIRED.”

 

(a)

The restrictions on
transfer contained in this Section 5.1 shall be in
addition to, and not by way of limitation of, any other
restrictions on transfer contained in any other section of this
Agreement. Whenever a certificate representing the Note Shares or
the Warrant Shares is required to be issued to a Purchaser without
a legend, in lieu of delivering physical certificates representing
the Note Shares or the Warrant Shares (provided that a registration
statement under the Securities Act providing for the resale of the
Warrant Shares and Note Shares is then in effect), the Company may
cause its transfer agent to electronically transmit the Note Shares
or Warrant Shares to a Purchaser by crediting the account of such
Purchaser or such Purchaser’s prime broker with the DTC
through its DWAC system (to the extent not inconsistent with any
provisions of this Agreement).

 

(b)

Certificates
evidencing the Note Shares and the Warrant Shares shall not contain
any legend (including the legend set forth in Section 5.1 hereof): (i) while
a registration statement covering the resale of such security is
effective under the Securities Act (the date such registration
statement is declared effective, being referred to as the
“Effective
Date”); (ii) following any sale of such Note Shares or
Warrant Shares pursuant to Rule 144; (iii) if such Note Shares or
Warrant Shares are eligible for sale under Rule 144, without the
requirement for the Company to be in compliance with the current
public information required under Rule 144 as to such Note Shares
or Warrant Shares and without volume or manner-of-sale
restrictions; 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 its transfer agent promptly after the Effective Date if
required by the transfer agent to effect the removal of the legend
hereunder. If all or any Note is converted or Warrant is exercised
at a time when there is an effective registration statement to
cover the resale of the Note Shares or Warrant Shares, or if such
Note Shares or Warrant Shares may be sold under Rule 144 and the
Company is then in compliance with the current public information
required under Rule 144, or if such Note Shares or Warrant Shares
may be sold under Rule 144 without the requirement for the Company
to be in compliance with the current public information required
under Rule 144 as to such Note Shares or Warrant Shares and without
volume or manner-of-sale restrictions 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 Note Shares or Warrant
Shares shall be issued free of all legends. The Company agrees that
following the Effective Date or at such time as such legend is no
longer required under this Section 5.1, it will, no later
than three Business Days following the delivery by a Purchaser to
the Company or the transfer agent of a certificate representing
Note Shares or Warrant Shares, as applicable, issued with a
restrictive legend (such third Business Day, the
“Legend Removal
Date”), deliver or cause to be delivered to such
Purchaser a certificate representing such shares that is free from
all restrictive and other legends. The Company may not make any
notation on its records or give instructions to the transfer agent
that enlarge the restrictions on transfer set forth in this Article
5.

 

(c)

Each
Purchaser, severally and not jointly with the other Purchasers,
agrees with the Company that such Purchaser will sell any
Securities pursuant to either the registration requirements of the
Securities Act, including any applicable prospectus delivery
requirements, or an exemption therefrom, and that if Securities are
sold pursuant to a registration statement, they will be sold in
compliance with the plan of distribution set forth therein, and
acknowledges that the removal of the restrictive legend from
certificates representing Securities as set forth in this Article 5
is predicated upon the Company’s reliance upon this
understanding.

 

 

 

-21-

 

 

ARTICLE 6

Indemnification

 

Section
6.1 General Indemnity. The Company
agrees to indemnify and hold harmless the Purchasers (and their
respective directors, officers, managers, partners, members,
shareholders, affiliates, agents, successors and assigns) from and
against any and all losses, liabilities, deficiencies, costs,
damages and expenses (including, without limitation, reasonable
attorneys’ fees, charges and disbursements) incurred by the
Purchasers as a result of any material breach of the material
representations, warranties or covenants made by the Company
herein. Each Purchaser severally but not jointly agrees to
indemnify and hold harmless the Company and its directors,
officers, affiliates, agents, successors and assigns from and
against any and all losses, liabilities, deficiencies, costs,
damages and expenses (including, without limitation, reasonable
attorneys’ fees, charges and disbursements) incurred by the
Company as a result of any breach of the representations,
warranties or covenants made by such Purchaser herein. The maximum
aggregate liability of each Purchaser pursuant to its
indemnification obligations under this Article 6 shall not exceed
the portion of the Purchase Price paid by such Purchaser hereunder.
In no event shall any “Indemnified Party” (as defined
below) be entitled to recover consequential or punitive damages
resulting from a breach or violation of this
Agreement.

 

Section
6.2 Indemnification Procedure. Any
party entitled to indemnification under this Article 6 (an
“Indemnified
Party”) will give written notice to the indemnifying
party of any matters giving rise to a claim for indemnification;
provided, that the
failure of any party entitled to indemnification hereunder to give
notice as provided herein shall not relieve the indemnifying party
of its obligations under this Article 6 except to the extent that
the indemnifying party is actually prejudiced by such failure to
give notice. In case any action, proceeding or claim is brought
against an Indemnified Party in respect of which indemnification is
sought hereunder, the indemnifying party shall be entitled to
participate in and, unless in the reasonable judgment of the
Indemnified Party a conflict of interest between it and the
indemnifying party may exist with respect of such action,
proceeding or claim, to assume the defense thereof with counsel
reasonably satisfactory to the Indemnified Party. In the event that
the indemnifying party advises an Indemnified Party that it will
contest such a claim for indemnification hereunder, or fails,
within thirty (30) days of receipt of any indemnification notice to
notify, in writing, such person of its election to defend, settle
or compromise, at its sole cost and expense, any action, proceeding
or claim (or discontinues its defense at any time after it
commences such defense), then the Indemnified Party may, at its
option, defend, settle or otherwise compromise or pay such action
or claim. In any event, unless and until the indemnifying party
elects in writing to assume and does so assume the defense of any
such claim, proceeding or action, the Indemnified Party’s
costs and expenses arising out of the defense, settlement or
compromise of any such action, claim or proceeding shall be losses
subject to indemnification hereunder. The Indemnified Party shall
cooperate fully with the indemnifying party in connection with any
negotiation or defense of any such action or claim by the
indemnifying party and shall furnish to the indemnifying party all
information reasonably available to the Indemnified Party which
relates to such action or claim. The indemnifying party shall keep
the Indemnified Party fully apprised at all times as to the status
of the defense or any settlement negotiations with respect thereto.
If the indemnifying party elects to defend any such action or
claim, then the Indemnified Party shall be entitled to participate
in such defense with counsel of its choice at its sole cost and
expense. The indemnifying party shall not be liable for any
settlement of any action, claim or proceeding effected without its
prior written consent, provided, however, that the indemnifying
party shall be liable for any settlement if the indemnifying party
is advised of the settlement but fails to respond to the settlement
within thirty (30) days of receipt of such notification.
Notwithstanding anything in this Article 6 to the contrary, the
indemnifying party shall not, without the Indemnified Party’s
prior written consent, settle or compromise any claim or consent to
entry of any judgment in respect thereof which imposes any future
obligation on the Indemnified Party or which does not include, as
an unconditional term thereof, the giving by the claimant or the
plaintiff to the Indemnified Party of a release from all liability
in respect of such claim. The indemnity agreements contained herein
shall be in addition to (a) any cause of action or similar rights
of the Indemnified Party against the indemnifying party or others,
and (b) any liabilities the indemnifying party may be subject to
pursuant to the law.

 

 

 

-22-

 

 

ARTICLE 7

Miscellaneous

 

Section
7.1 Fees and Expenses. The Company
has engaged Tripoint Global Equities, LLC, as exclusive placement
agent for the Company (the “Placement Agent). The Company
has agreed to pay the Placement Agent, in connection with sales of
the Units made to Persons introduced to the Company by either
themselves or the Placement Agent, the fees set forth in
Schedule 7.1 hereto
and legal fees related hereto up to $15,000. The Company shall
deliver to each Purchaser, prior to the Closing, a completed and
executed copy of the Closing Statement, attached hereto as
Annex A. Except as
expressly set forth in the Transaction Documents to the contrary,
each party shall pay the fees and expenses of its advisers,
counsel, accountants and other experts, if any, and all other
expenses incurred by such party incident to the negotiation,
preparation, execution, delivery and performance of this Agreement.
The Company shall pay all Transfer Agent fees, stamp taxes and
other taxes and duties levied in connection with the delivery of
any Securities to the Purchasers.

 

Section
7.2 Specific Enforcement, Consent to
Jurisdiction.

 

(a) The Company and the
Purchasers acknowledge and agree that irreparable damage would
occur in the event that any of the provisions of this Agreement or
the other Transaction Documents were not performed in accordance
with their specific terms or were otherwise breached. It is
accordingly agreed that the parties shall be entitled to an
injunction or injunctions to prevent or cure breaches of the
provisions of this Agreement or the other Transaction Documents and
to enforce specifically the terms and provisions hereof or thereof,
this being in addition to any other remedy to which any of them may
be entitled by law or equity.

 

(b) Each of the Company
and the Purchasers: (i) hereby irrevocably submits to the
jurisdiction of the United States District Court sitting in the
Southern District of New York and the courts of the State of New
York located in New York county for the purposes of any suit,
action or proceeding arising out of or relating to this Agreement
or any of the other Transaction Documents or the transactions
contemplated hereby or thereby; and (ii) hereby waives, and agrees
not to assert in any such suit, action or proceeding, any claim
that it is not personally subject to the jurisdiction of such
court, that the suit, action or proceeding is brought in an
inconvenient forum or that the venue of the suit, action or
proceeding is improper. Each of the Company and the Purchasers
consents to process being served in any such suit, action or
proceeding by mailing a copy thereof via registered or certified
mail or overnight delivery (with evidence of delivery) to such
party at the address in effect for notices to it under this
Agreement and agrees that such service shall constitute good and
sufficient service of process and notice thereof. Nothing in this
Section 7.2 shall
affect or limit any right to serve process in any other manner
permitted by law. Each party hereby irrevocably waives personal
service of process and consents to process being served in any such
suit, action or proceeding by mailing a copy thereof to such party
at the address for such notices to it under this Agreement and
agrees that such service shall constitute good and sufficient
service of process and notice thereof. The Company hereby appoints
Gracin & Marlow, LLP as its agent for service of process in New
York. Nothing contained herein shall be deemed to limit in any way
any right to serve process in any manner permitted by
law.

 

Section
7.3 Entire Agreement; Amendment.
This Agreement and the other Transaction Documents contain the
entire understanding and agreement of the parties with respect to
the matters covered hereby and, except as specifically set forth
herein or in the Transaction Documents, neither the Company nor any
of the Purchasers makes any representations, warranty, covenant or
undertaking with respect to such matters and they supersede all
prior understandings and agreements with respect to said subject
matter, all of which are merged herein. No provision of this
Agreement nor any of the Transaction Documents may be waived or
amended other than by a written instrument signed by the Company
and the holders of at least fifty percent (50%) of the Note Shares
then outstanding (the “Majority Holders”), and
no provision hereof may be waived other than by a written
instrument signed by the consenting parties. No such amendment
shall be effective to the extent that it applies to less than all
of the holders of the Note Shares then outstanding. No
consideration shall be offered or paid to any person to amend or
consent to a waiver or modification of any provision of any of the
Transaction Documents unless the same consideration is also offered
to all of the parties to the Transaction Documents or holders of
Note Shares, as the case may be.

 

 

 

-23-

 

 

Section
7.4 Notices. All notices, demands,
consents, requests, instructions and other communications to be
given or delivered or permitted under or by reason of the
provisions of this Agreement and the Transaction Documents or in
connection with the transactions contemplated hereby and thereby
shall be in writing and shall be deemed to be delivered and
received by the intended recipient as follows: (i) if personally
delivered, on the business day of such delivery (as evidenced by
the receipt of the personal delivery service); (ii) if delivered by
overnight courier (with all charges having been prepaid), on the
business day of such delivery (as evidenced by the receipt of the
overnight courier service of recognized standing); or (iii) if
delivered by facsimile or electronic transmission, on the business
day of such delivery if sent by 6:00 p.m. in the time zone of the
recipient, or if sent after that time, on the next succeeding
business day (as evidenced by the printed confirmation of delivery
generated by the sending party’s telecopier machine). If any
notice, demand, consent, request, instruction or other
communication cannot be delivered because of a changed address of
which no notice was given (in accordance with this Section 7.4), or the refusal to
accept same, the notice, demand, consent, request, instruction or
other communication shall be deemed received on the second business
day the notice is sent (as evidenced by a sworn affidavit of the
sender). Notwithstanding the foregoing, routine communications may
be sent by ordinary first-class mail and contemporaneous e-mail.
All such notices, demands, consents, requests, instructions and
other communications will be sent to the following addresses or
facsimile numbers as applicable:

 

If to
the Company:

 

Youngevity
International, Inc.

2400
Boswell Rd

Chula
Vista, CA 91914

Attn:
Steven Wallach

Phone:
(619) 934-3980

 

with
copies (which shall not constitute notice) to:

 

Leslie
Marlow, Esq.

Gracin
& Marlow, LLP

200
Broadhollow Road

Suite
207

Melville, New York
11747

 

If to
any Purchaser:  At the address of such Purchaser set
forth on Exhibit A
to this Agreement, as the case may be, with copies to
Purchaser’s counsel as set forth on Exhibit A or as specified in
writing by such Purchaser.

 

Any
party hereto may from time to time change its address for notices
by giving at least ten (10) days written notice of such changed
address to the other party hereto.

 

Section
7.5 Waivers. No waiver by any party
of any default with respect to any provision, condition or
requirement of this Agreement and the other Transaction Documents
shall be deemed to be a continuing waiver in the future or a waiver
of any other provisions, condition or requirement hereof and
thereof, nor shall any delay or omission of any party to exercise
any right hereunder and thereunder in any manner impair the
exercise of any such right accruing to it thereafter.

 

Section
7.6 Headings. The section headings
contained in this Agreement (including, without limitation, section
headings and headings in the exhibits and schedules) are inserted
for reference purposes only and shall not affect in any way the
meaning, construction or interpretation of this Agreement and the
other Transaction Documents. Any reference to the masculine,
feminine, or neuter gender shall be a reference to such other
gender as is appropriate. References to the singular shall include
the plural and vice versa.

 

 

 

-24-

 

 

Section
7.7 Successors and Assigns. This
Agreement may not be assigned by a party hereto without the prior
written consent of the Company or the Purchasers, as applicable,
provided,
however, that,
subject to federal and state securities laws and as otherwise
provided in the Transaction Documents, a Purchaser may assign its
rights and delegate its duties hereunder in whole or in part: (i)
to a third party acquiring all or substantially all of its Shares
or Warrants in a private transaction; or (ii) to an affiliate, in
each case, without the prior written consent of the Company or the
other Purchasers, after notice duly given by such Purchaser to the
Company provided,
that no such assignment or obligation shall affect the obligations
of such Purchaser hereunder and that such assignee agrees in
writing to be bound, with respect to the transferred securities, by
the provisions hereof that apply to the Purchasers. The provisions
of this Agreement shall inure to the benefit of and be binding upon
the respective permitted successors and assigns of the parties.
Nothing in this Agreement, express or implied, is intended to
confer upon any party other than the parties hereto or their
respective successors and assigns any rights, remedies, obligations
or liabilities under or by reason of this Agreement, except as
expressly provided in this Agreement. If any Purchaser transfers
the Note Shares purchased hereunder, any such penalty shares or
liquidated damages, as the case may be, pursuant to this Agreement
shall similarly transfer to such transferee with no further action
required by the purchaser or the Company.

 

Section
7.8 Rescission and Withdrawal
Right. Notwithstanding anything to the contrary contained in
(and without limiting any similar provisions of) this Agreement and
the Transaction Documents, whenever any Purchaser exercises a
right, election, demand or option under this Agreement or 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.

 

Section
7.9 Replacement of Securities. If
any certificate or instrument evidencing any Unit is mutilated,
lost, stolen or destroyed, the Company shall issue or cause to be
issued in exchange and substitution for and upon cancellation
thereof, or in lieu of and substitution therefor, a new certificate
or instrument, but only upon receipt of evidence reasonably
satisfactory to the Company of such loss, theft or destruction and
customary and reasonable indemnity, if requested. The applicants
for a new certificate or instrument under such circumstances shall
also pay any reasonable third-party costs associated with the
issuance of such replacement Unit. If a replacement certificate or
instrument evidencing any Unit is requested due to a mutilation
thereof, the Company may require delivery of such mutilated
certificate or instrument as a condition precedent to any issuance
of a replacement.

 

Section
7.10 Limitation of Liability.
Notwithstanding anything herein to the contrary, the Company
acknowledges and agrees that the liability of any Purchaser arising
directly or indirectly, under this Agreement and the other
Transaction Documents of any and every nature whatsoever shall be
satisfied solely out of the assets of such Purchaser, and that no
trustee, officer, other investment vehicle or any other Affiliate
of such Purchaser or any Purchaser, shareholder or holder of shares
of beneficial interest of such a Purchaser shall be personally
liable for any liabilities of such Purchaser.

 

Section
7.11 No Third Party Beneficiaries.
This Agreement is intended for the benefit of the parties hereto
and their respective permitted successors and assigns and is not
for the benefit of, nor may any provision hereof be enforced by,
any other person.

 

Section
7.12 Governing Law. This Agreement
and the other Transaction Documents shall be governed by and
construed in accordance with the laws of the State of New York,
without giving effect to any of the conflicts of law principles
which would result in the application of the substantive law of
another jurisdiction. This Agreement and the other Transaction
Documents shall not be interpreted or construed with any
presumption against the party causing this Agreement and the other
Transaction Documents to be drafted.

 

Section
7.13 Survival. The representations
and warranties of the Company hereunder and under the other
Transaction Documents shall survive the execution and delivery
hereof and the Closing hereunder for a period of three (3) years
following the Closing Date.

 

 

 

-25-

 

 

Section
7.14 Counterparts. This Agreement
may be executed in any number of counterparts, each of which when
so executed shall be deemed to be an original and, all of which
taken together shall constitute one and the same Agreement and
shall become effective when counterparts have been signed by each
party and delivered to the other parties hereto, it being
understood that all parties need not sign the same counterpart. In
the event that any signature is delivered by facsimile
transmission, such signature shall create a valid binding
obligation of the party executing (or on whose behalf such
signature is executed) the same with the same force and effect as
if such facsimile signature were the original thereof.

 

Section
7.15 Severability. The provisions of
this Agreement and the Transaction Documents are severable and, in
the event that any court of competent jurisdiction shall determine
that any one or more of the provisions or part of the provisions
contained in this Agreement or the Transaction Documents shall, for
any reason, be held to be invalid, illegal or unenforceable in any
respect, such invalidity, illegality or unenforceability shall not
affect any other provision or part of a provision of this Agreement
or the Transaction Documents and such provision shall be reformed
and construed as if such invalid or illegal or unenforceable
provision, or part of such provision, had never been contained
herein, so that such provisions would be valid, legal and
enforceable to the maximum extent possible.

 

Section
7.16 Further Assurances. From and
after the date of this Agreement, upon the request of any Purchaser
or the Company, each of the Company and the Purchasers shall
execute and deliver such instrument, documents and other writings
as may be reasonably necessary or desirable to confirm and carry
out and to effectuate fully the intent and purposes of this
Agreement and the other Transaction Documents.

 

Section
7.17 Currency. Unless otherwise
indicated, all dollar amounts referred to in this Agreement are in
United States Dollars (“US Dollars”). All amounts
owed under this Agreement or any Transaction Document shall be paid
in US Dollars.

 

Section
7.18 Termination. This Agreement may
be terminated prior to the Closing:

 

(a) by mutual written
agreement of the Purchasers and the Company, a copy of which shall
be provided to the escrow agent appointed under the Escrow Deposit
Agreement; and

 

(b) by the Company or a
Purchaser (as to itself but no other Purchaser) upon written notice
to the other, with a copy to the Escrow Agent, if the Closing shall
not have taken place by 5:00 p.m. Eastern time on [ ], 2017, unless
extended to a later date by the mutual consent of the Company and
the Placement Agent; provided, that the right to terminate this
Agreement under this Section 7.18(b) shall not be available to any
person whose failure to comply with its obligations under this
Agreement has been the cause of or resulted in the failure of the
Closing to occur on or before such time.

 

(c) In the event of a
termination pursuant to Section 7.18(a) or 7.18(b), each Purchaser
shall have the right to a return of up to its entire Purchase Price
deposited with the Escrow Agent pursuant to this Agreement and the
Escrow Agreement, without interest or deduction. The Company
covenants and agrees to cooperate with such Purchaser in obtaining
the return of its Purchase Price, and shall not communicate any
instructions to the contrary to the Escrow Agent.

 

(d) In the event of a
termination pursuant to this Section 7.18, the Company shall
promptly notify all non-terminating Purchasers. Upon a termination
in accordance with this Section 7.18, the Company and
the terminating Purchaser(s) shall not have any further obligation
or liability (including as arising from such termination) to the
other and no Purchaser will have any liability to any other
Purchaser under the Transaction Documents as a result
therefrom.

 

[REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK]

 

 

 

 

-26-

 

 

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

 

 

YOUNGEVITY
INTERNATIONAL, INC.

 

 

 

By:                      

                                                      

      Name:
Steven Wallach

                                                       

      Title:
Chief Executive Officer

 

 

 

 

 

 

 

-27-

 

 

YOUNGEVITY
INTERNATIONAL, INC.

PURCHASER
SIGNATURE PAGE TO

NOTE
PURCHASE AGREEMENT

 

Purchaser
hereby elects to purchase a total of ____ Units in an amount of
$___________.

 

 

Date
(NOTE: To be completed by the Purchaser):  _____ , 2017

 

 

 

 

If the
Purchaser is an INDIVIDUAL, and if purchased as JOINT TENANTS,
as

TENANTS
IN COMMON, or as COMMUNITY PROPERTY:

 

 

 

 

 

Print
Name(s)

Social
Security Number(s)

 

 

 

Signature(s)
of Purchaser(s)

Signature

 

 

 

Date                                                       

Address

 

 

If the
Purchaser is a PARTNERSHIP, CORPORATION, LIMITED LIABILITY COMPANY
or TRUST:

 

 

 

Name
of Partnership,

Federal
Taxpayer Corporation, LimitedIdentification Number Liability
Company or Trust

 

 

By:                                                   

Name:                                                 

State
of Organization

Title:

 

 

 

Date                                                       

Address

 

 

-28-

 

 

EXHIBIT A TO THE

NOTE PURCHASE AGREEMENT

 

	

Investor

	

Investment Amount

	

Convertible Note

	

Series D Warrants

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

Total

	
 

	
 

	
 

Purchasers

 

 

 

 

-29-

 

 

EXHIBIT B TO THE

NOTE PURCHASE AGREEMENT

 

DEFINITION OF “ACCREDITED INVESTOR”

 

The term “accredited investor” means:

 

1)

A bank as defined
in Section 3(a)(2) of the Securities Act, or a savings and loan
association or other institution as defined in Section 3(a)(5)(A)
of the Securities Act, whether acting in its individual or
fiduciary capacity; a broker or dealer registered pursuant to
Section 15 of the Securities Exchange Act of 1934; an insurance
company as defined in Section 2(13) of the Securities Act; an
investment company registered under the Investment Company Act of
1940 (the “Investment Company Act”) or a business
development company as defined in Section 2(a)(48) of the
Investment Company Act; a Small Business Investment Company
licensed by the U.S. Small Business Administration under Section
301(c) or (d) of the Small Business Investment Act of 1958; a plan
established and maintained by a state, its political subdivisions
or any agency or instrumentality of a state or its political
subdivisions for the benefit of its employees, if such plan has
total assets in excess of US $5,000,000; an employee benefit plan
within the meaning of the Employee Retirement Income Security Act
of 1974 (“ERISA”), if the investment decision is made
by a plan fiduciary, as defined in Section 3(21) of ERISA, which is
either a bank, savings and loan association, insurance company, or
registered investment advisor, or if the employee benefit plan has
total assets in excess of US $5,000,000 or, if a self-directed
plan, with investment decisions made solely by persons that are
accredited investors.

 

2)

A private business
development company as defined in Section 202(a)(22) of the
Investment Advisers Act of 1940.

 

3)

An organization
described in Section 501(c)(3) of the Internal Revenue Code,
corporation, Massachusetts or similar business trust, or
partnership, not formed for the specific purpose of acquiring the
securities offered, with total assets in excess of US
$5,000,000.

 

4)

A director or
executive officer of the Company.

 

5)

A natural person
whose individual net worth, or joint net worth with that
person’s spouse, at the time of his or her purchase exceeds
US $1,000,000.

 

6)

A natural person
who had an individual income in excess of US $200,000 in each of
the two most recent years or joint income with that person’s
spouse in excess of US $300,000 in each of those years and has a
reasonable expectation of reaching the same income level in the
current year.

 

7)

A trust, with total
assets in excess of US $5,000,000, not formed for the specific
purpose of acquiring the securities offered, whose purchase is
directed by a sophisticated person as described in Rule
506(b)(2)(ii) (i.e., a person who has such knowledge and experience
in financial and business matters that he is capable of evaluating
the merits and risks of the prospective investment).

 

8)

An entity in which
all of the equity owners are accredited investors. (The Purchaser,
as an entity, must identify each equity owner and provide
statements signed by each demonstrating how each is qualified as an
accredited investor.)

 

 

-30-

 

 

EXHIBIT B-1 TO THE

NOTE PURCHASE AGREEMENT

 

EXHIBIT B-1

 

 

ACCREDITED INVESTOR
REPRESENTATIONS AND ACKNOWLEDGEMENT

 

ACCREDITED
INVESTOR CERTIFICATION

 

For
Individual Investors Only

 

(All
individual investors must INITIAL where appropriate. Where there
are joint investors both parties must INITIAL):

 

 

Initial
_________

I certify that I
have a “net worth” of at least $1 million either
individually or through aggregating my individual holdings and
those in which I have a joint, community property or other similar
shared ownership interest with my spouse. For purposes hereof,
“net worth” shall be deemed to include all of your
assets, liquid or illiquid (excluding the value of your principal
residence), minus all of your liabilities (excluding the amount of
indebtedness secured by your principal residence up to its fair
market value).

 

Initial
________

I certify that I
have had an annual gross income for the past twoyears of at least
$200,000 (or $300,000 jointly with my spouse) andexpect my income
(or joint income, as appropriate) to reach the same level in the
current year.

 

 

For
Non-Individual Investors

(all
Non-Individual Investors must INITIAL where
appropriate):

 

Initial
_________ 

The undersigned
certifies that it is a partnership, corporation, limited liability
company or business trust that is 100% owned by persons who meet
either of the criteria for Individual Investors,
above.

 

Initial
_________ 

The undersigned
certifies that it is a partnership, corporation, limited liability
company or business trust that has total assets of at least
$5,000,000 and was not formed for the purpose of investing in
Company.

 

Initial
_________ 

The undersigned
certifies that it is an employee benefit plan whose investment
decision is made by a plan fiduciary (as defined in ERISA
§3(21)) that is a bank, savings and loan association,
insurance company or registered investment adviser.

 

Initial
_________ 

 

The undersigned
certifies that it is an employee benefit plan whose total assets
exceed $5,000,000 as of the date of the Purchase
Agreement.

 

 

Initial
_________ 

The
undersigned certifies that it is a self-directed employee benefit
plan whose investment decisions are made solely by persons who meet
either of the criteria for Individual Investors,
above.

 

Initial
_________ 

 

The undersigned
certifies that it is a U.S. bank, U.S. savings and loan association
or other similar U.S. institution acting in its individual or
fiduciary capacity.

 

Initial
_________ 

 

The undersigned
certifies that it is a broker-dealer registered pursuant to
§15 of the Securities Exchange Act of 1934.
 

Initial
_________

The undersigned
certifies that it is an organization described in §501(c)(3)
of the Internal Revenue Code with total assets exceeding $5,000,000
and not formed for the specific purpose of investing in
Company.

 

Initial
_________

The undersigned
certifies that it is a trust with total assets of at least
$5,000,000, not formed for the specific purpose of investing in
Company, and whose purchase is directed by a person with such
knowledge and experience in financial and business matters that he
is capable of evaluating the merits and risks of the prospective
investment.

Initial
_________

The undersigned
certifies that it is a plan established and maintained by a state
or its political subdivisions, or any agency or instrumentality
thereof, for the benefit of its employees, and which has total
assets in excess of $5,000,000.

 

Initial
_________

The undersigned
certifies that it is an insurance company as defined in
§2(a)(13) of the Securities Act of 1933, as amended, or a
registered investment company.

 

 

 

 

 

-31-

 

 

EXHIBIT C TO THE

NOTE PURCHASE AGREEMENT

 

 

 

FORM OF CONVERTIBLE NOTE

 

 

 

 

-32-

 

EXHIBIT D TO THE

NOTE PURCHASE AGREEMENT

 

 

 

FORM OF SERIES D WARRANT

 

 

 

 

-33-

 

 

EXHIBIT E TO THE

NOTE PURCHASE AGREEMENT

 

 

 

FORM OF ESCROW DEPOSIT AGREEMENT

 

 

 

 

-34-

 

 

EXHIBIT F TO THE

NOTE PURCHASE AGREEMENT

 

 

FORM OF REGISTRATION RIGHTS AGREEMENT

 

 

 

-35-

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