Document:

Exhibit 10.1

 

THIS
PROMISSORY NOTE (“NOTE”) HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”).
THIS NOTE HAS BEEN ACQUIRED FOR INVESTMENT ONLY AND MAY NOT BE SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF REGISTRATION OF THE RESALE
THEREOF UNDER THE SECURITIES ACT OR AN OPINION OF COUNSEL REASONABLY SATISFACTORY IN FORM, SCOPE AND SUBSTANCE TO MAKER THAT SUCH REGISTRATION
IS NOT REQUIRED.

 

PROMISSORY
NOTE

 

	 	Dated
    as of March 16, 2022
	 	 
	Principal
    Amount: $1,380,000	New
    York, New York

 

Ackrell
SPAC Partners I Co., a Delaware corporation (“Maker”), promises to pay to the order of North Atlantic Imports,
LLC or its registered assigns or successors in interest (“Payee”) the principal sum of One Million Three Hundred
Eighty Thousand Dollars ($1,380,000) in lawful money of the United States of America, on the terms and conditions described below. All
payments on this Note shall be made by check or wire transfer of immediately available funds, without setoff or counterclaim, to such
account as Payee may from time to time designate by written notice in accordance with the provisions of this Note.

 

1. Maturity.
Subject to Section 1(b), the principal balance of this Note shall be due and payable by Maker upon the closing of a Repayment Trigger
Event, as such term is defined below (the “Maturity Date”). The principal balance may be prepaid in whole or in part
at any time and from time to time prior to the Maturity Date without premium or penalty upon written notice by Maker to Payee.

 

 (a) A “Repayment Trigger Event” means the consummation of the Business Combination as defined in the Certificate of Incorporation of Maker, as amended (the “COI”).

 

Maker
shall provide Payee at least 10 days’ prior notice of any Repayment Trigger Event and to the extent applicable a copy of the material
terms of the Business Combination. Under no circumstances shall any individual, including but not limited to, any officer, director,
employee or stockholder of Maker, be obligated personally for any obligations or liabilities of Maker hereunder.

 

(b) Form
of Repayment. All amounts due under this Note shall be repaid in cash. In the event that a Business Combination has not been consummated
prior to the Termination Date (as defined in the COI), no payment shall be due hereunder and the principal balance of this Note shall
be forgiven.

 

 2. Interest. This Note will be non-interest bearing and unsecured.

 

3. Application
of Payments. All payments shall be applied first to payment in full of any costs incurred in the collection of any sum due under
this Note, including (without limitation) reasonable attorneys’ fees, and then to the reduction of the unpaid principal balance
of this Note.

 

4. Use
of Proceeds. On the date of this Note, Payee shall remit the full principal amount to Maker in accordance with the wiring instructions
attached here to as Exhibit A. Maker hereby represents, warrants and covenants to Payee that the entire principal amount will
be used by Maker solely for purposes of making a payment pursuant to the Investment Management Trust Agreement dated December 21, 2020
by and between Maker and Continental Stock Transfer & Trust Company, a New York limited liability trust company (the “Trustee”),
for an Extension (as defined therein) and that, prior to or concurrently with the execution and delivery of this Note, Maker has delivered
to the Trustee, an Extension Letter (as defined therein).

 

 5. Events of Default. The following shall constitute an event of default (“Event of Default”):

 

(a) Failure
to Make Required Payments. Failure by Maker to pay any principal amount due pursuant to this Note within five (5) business days of
the Maturity Date.

 

     

     

    

 

(b)
Breach of Use of Proceeds. Failure by Maker to comply with the provisions of Section 4 of this Note.

 

(c) Voluntary
Bankruptcy, Etc. The commencement by Maker of a voluntary case under any applicable bankruptcy, insolvency, reorganization, rehabilitation
or other similar law, or the consent by it to the appointment of or taking possession by a receiver, liquidator, assignee, trustee, custodian,
sequestrator (or other similar official) of Maker or for any substantial part of its property, or the making by it of any assignment
for the benefit of creditors, or the failure of Maker generally to pay its debts as such debts become due, or the taking of corporate
action by Maker in furtherance of any of the foregoing.

 

(d) Involuntary
Bankruptcy, Etc. The entry of a decree or order for relief by a court having jurisdiction in the premises in respect of Maker in
an involuntary case under any applicable bankruptcy, insolvency or other similar law, or appointing a receiver, liquidator, assignee,
custodian, trustee, sequestrator (or similar official) of Maker or for 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.

 

6.
Remedies.

 

(a) Upon
the occurrence of an Event of Default specified in Section 5(a) or Section 5(b) hereof, Payee may, by written notice to Maker, declare
this Note to be due immediately and payable, whereupon the unpaid principal amount of this Note, and all other amounts payable hereunder,
shall become immediately due and payable without presentment, demand, protest or other notice of any kind, all of which are hereby expressly
waived, anything contained herein or in the documents evidencing the same to the contrary notwithstanding.

 

(b) Upon
the occurrence of an Event of Default specified in Sections 5(c) and 5(d), the unpaid principal balance of this Note, and all other sums
payable with regard to this Note, shall automatically and immediately become due and payable, in all cases without any action on the
part of Payee.

 

7. Enforcement
Costs. In case any principal of on this Note is not paid when due, Maker shall be liable for all costs of enforcement and collection
of this Note incurred by Payee and any other Holders (as defined below), including but not limited to, reasonable attorneys’ fees
and expenses.

 

8. Waivers.
Maker and all endorsers and guarantors of, and sureties for, this Note waive presentment for payment, demand, notice of dishonor,
protest, and notice of protest with regard to the Note, all errors, defects and imperfections in any proceedings instituted by Payee
under the terms of this Note, and all benefits that might accrue to Maker by virtue of any present or future laws exempting any property,
real or personal, or any part of the proceeds arising from any sale of any such property, from attachment, levy or sale under execution,
or providing for any stay of execution, exemption from civil process, or extension of time for payment; and Maker agrees that any real
estate that may be levied upon pursuant to a judgment obtained by virtue hereof or any writ of execution issued hereon, may be sold upon
any such writ in whole or in part in any order desired by Payee.

 

9. Unconditional
Liability. Maker hereby waives all notices in connection with the delivery, acceptance, performance, default, or enforcement of the
payment of this Note, and agrees that its liability shall be unconditional, without regard to the liability of any other party, and shall
not be affected in any manner by any indulgence, extension of time, renewal, waiver or modification granted or consented to by Payee,
and consents to any and all extensions of time, renewals, waivers, or modifications that may be granted by Payee with respect to the
payment or other provisions of this Note, and agrees that additional makers, endorsers, guarantors, or sureties may become parties hereto
without notice to Maker or affecting Maker’s liability hereunder. Any failure of Payee to exercise any right hereunder shall not
be construed as a waiver of the right to exercise the same or any other right at any time and from time to time thereafter. Payee may
accept late payments, or partial payments, even though marked “payment in full” or containing words of similar import or
other conditions, without waiving any of its rights.

 

10. Notices. All
notices, statements or other documents which are required or contemplated by this Note shall be made in writing and delivered: (i)
personally or sent by first class registered or certified mail, overnight courier service or facsimile or electronic transmission to
the address designated in writing, (ii) by facsimile to the number most recently provided to such party or such other address or fax
number as may be designated in writing by such party or (iii) by electronic mail, to the electronic mail address most recently
provided to such party or such other electronic mail address as may be designated in writing by such party. Any notice or other
communication so transmitted shall be deemed to have been given on the day of delivery, if delivered personally, on the business day
following receipt of written confirmation, if sent by facsimile or electronic transmission, one (1) business day after delivery to
an overnight courier service or five (5) days after mailing if sent by mail. As of the date of this Note, the following addresses
are designated for notices: (a) if to Maker, Ackrell SPAC Partners I Co., 2093 Philadelphia Pike #1968, Claymont, DE 19703, Attn:
Long Long, email: long@spacpartners.com; (b) if to Payee, North Atlantic Imports, LLC, 513W 2500 N Logan, Utah 84341, Attn: Vincent
Chen, email: vincent@blackstoneproducts.com.

 

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11. Construction;
Governing Law; Venue; Waiver of Jury Trial; Etc. THIS NOTE SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE
WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO CONFLICT OF LAW PROVISIONS THEREOF. MAKER HEREBY IRREVOCABLY AND UNCONDITIONALLY
SUBMITS, FOR ITSELF AND ITS PROPERTY, TO THE NONEXCLUSIVE JURISDICTION OF THE SUPREME COURT OF THE STATE OF NEW YORK SITTING IN NEW YORK
COUNTY AND OF THE UNITED STATES DISTRICT COURT OF THE SOUTHERN DISTRICT OF NEW YORK, AND ANY APPELLATE COURT FROM ANY THEREOF, IN ANY
ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS NOTE, OR FOR RECOGNITION OR ENFORCEMENT OF ANY JUDGMENT, AND EACH OF THE PARTIES
HERETO HEREBY IRREVOCABLY AND UNCONDITIONALLY AGREES THAT ALL CLAIMS IN RESPECT OF ANY SUCH ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED
IN SUCH NEW YORK STATE OR, TO THE EXTENT PERMITTED BY LAW, IN SUCH FEDERAL COURT. EACH OF THE PARTIES HERETO AGREES THAT A FINAL JUDGMENT
IN ANY SUCH ACTION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER
MANNER PROVIDED BY LAW. NOTHING IN THIS NOTE SHALL AFFECT ANY RIGHT THAT PAYEE OR ANY OTHER HOLDER MAY OTHERWISE HAVE TO BRING ANY ACTION
OR PROCEEDING RELATING TO THIS NOTE AGAINST MAKER OR ITS PROPERTIES IN THE COURTS OF ANY OTHER JURISDICTION. MAKER WAIVES PERSONAL SERVICE
OF ANY AND ALL PROCESS UPON IT AND CONSENTS THAT ALL SUCH SERVICE OF PROCESS BE MADE BY REGISTERED MAIL DIRECTED TO MAKER AT ITS ADDRESS
SET FORTH IN SECTION 10 OR TO ANY OTHER ADDRESS AS MAY APPEAR IN PAYEE’S OR SUCH OTHER HOLDER’S RECORDS AS THE ADDRESS OF
MAKER. IN ANY ACTION, SUIT OR PROCEEDING IN RESPECT OF OR ARISING OUT OF THIS NOTE, PAYEE AND MAKER WAIVE TRIAL BY JURY, AND EACH OF
MAKER AND PAYEE WAIVES (I) THE RIGHT TO INTERPOSE ANY SET-OFF OR COUNTERCLAIM OF ANY NATURE OR DESCRIPTION, (II) ANY OBJECTION BASED
ON FORUM NON CONVENIENS OR VENUE, AND (III) ANY CLAIM FOR CONSEQUENTIAL, PUNITIVE OR SPECIAL DAMAGES.

 

12. Severability.
Any provision contained in this Note which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be
ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such
prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

 

13. Trust
Waiver. Notwithstanding anything herein to the contrary, but subject to the following sentence of this Section 13, Payee hereby waives
any and all right, title, interest or claim of any kind (“Claim”) in or to any distribution of or from the trust account
(the “Trust Account”) established in which the proceeds of the initial public offering (the “IPO”)
conducted by Maker (including the deferred underwriters’ discounts and commissions) and the proceeds of the sale of the units issued
in a private placement that occurred prior to the closing of the IPO were deposited, as described in greater detail in Maker’s
Registration Statements on Form S-1 (File No. 333- 251060 and 333- 251537) filed with the Securities and Exchange Commission in connection
with the IPO (the “Registration Statement”), and hereby agrees not to seek recourse, reimbursement, payment or satisfaction
for any Claim against the Trust Account for any reason whatsoever. Notwithstanding the foregoing, Payee does not waive any Claims and
does not waive its rights to seek recourse, reimbursement, payment or satisfaction for any Claim against the Trust Account for distributions
of remaining funds released to Maker from the Trust Account following redemptions or other distributions to Maker’s public stockholders.

 

14. Amendment;
Waiver. Any amendment hereto or waiver of any provision hereof may be made with, and only with, the written consent of Maker and
Payee.

 

15. Assignment.
This Note binds and is for the benefit of the successors and permitted assigns of Maker and Payee. No assignment or transfer of this
Note or any rights or obligations hereunder may be made by any party hereto (by operation of law or otherwise) without the prior written
consent of the other party hereto and any attempted assignment without the required consent shall be void; provided, that (i) upon the
announcement of a Business Combination or occurrence and during the continuation of an Event of Default, Payee shall have the right to
assign this Note in its discretion without the consent of Maker and (ii) Payee shall be permitted to collaterally assign its respective
rights under this Note to any lender or lenders providing financing to Payee.

 

[Signature
page follows]

 

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IN
WITNESS WHEREOF, Maker, intending to be legally bound hereby, has caused this Note to be duly executed by the undersigned as of the
day and year first above written.

 

	 	Ackrell SPAC Partners I Co.
	 	 	 	 
	 	By:	/s/ Long Long
	 	 	Name: 	Long Long
	 	 	Title:	Chief Financial Officer

 

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EXHIBIT
A

 

[Intentionally Omitted]

 

 

5Exhibit
10.1

 

SECURITIES
PURCHASE AGREEMENT

 

This
SECURITIES PURCHASE AGREEMENT (the “Agreement”), dated as of March 21, 2022 (the “Effective Date”),
is by and among Ipsidy Inc., a Delaware corporation (the “Company”), and each of the investors listed on the Schedule
of Buyers attached hereto (individually, a “Buyer” and collectively, the “Buyers”).

 

RECITALS

 

WHEREAS,
the Company has authorized a new series of senior secured convertible notes of the Company, in the aggregate original principal amount
of up to $10,000,000, substantially in the form attached hereto as Exhibit A (the “Notes”), which
Notes shall be convertible into shares of Common Stock (as defined below); and

 

WHEREAS,
subject to the terms and conditions contained herein, each Buyer wishes to purchase, and the Company wishes to sell, upon the terms and
conditions stated in this Agreement, a Note in the aggregate original principal amount set forth opposite such Buyer’s name on
the Schedule of Buyers attached hereto (the “Schedule of Buyers”), which will be convertible, on the terms and conditions
set forth herein and therein into Common Stock.

 

NOW,
THEREFORE, in consideration of the premises and the mutual covenants contained herein and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the Company and each Buyer hereby agree as follows:

 

		1)	PURCHASE
                                            AND SALE OF NOTES.

 

		(a)	Purchase
                                            of Notes. Subject to the satisfaction (or waiver) of the conditions set forth in Section
                                            6 and Section 7 below, the Company shall issue and sell to each Buyer, and each
                                            Buyer severally, but not jointly, agrees to purchase from the Company on the Closing Date
                                            (as defined below) a Note in the original principal amount set forth opposite such Buyer’s
                                            name on the Schedule of Buyers (the “Closing”).

 

		(b)	Closing.
                                            The Closing shall occur at the offices of Arnold & Porter Kaye Scholer LLP, 250 West
                                            55th Street, New York, NY 10019, at 7:30 a.m., Eastern time, on the first Business Day on
                                            which the conditions to the Closing set forth in Section 6 and Section 7 below
                                            are satisfied or waived (or such other date as is mutually agreed to by the Company and each
                                            Buyer) (the “Closing Date”). As used herein, “Business Day”
                                            means any day other than Saturday, Sunday or other day on which commercial banks in The City
                                            of New York are authorized or required by law to remain closed; provided, however, for clarification,
                                            commercial banks shall not be deemed to be authorized or required by law to remain closed
                                            due to “stay at home”, “shelter-in-place”, “non-essential employee”
                                            or any other similar orders or restrictions or the closure of any physical branch locations
                                            at the direction of any governmental authority so long as the electronic funds transfer systems
                                            (including for wire transfers) of commercial banks in The City of New York generally are
                                            open for use by customers on such day.

 

		(c)	Purchase
                                            Price. The aggregate purchase price for the Notes to be purchased by each Buyer (the
                                            “Purchase Price”) shall be the amount set forth opposite such Buyer’s
                                            name on the Schedule of Buyers. On the Closing Date, (i) each Buyer shall pay its respective
                                            Purchase Price (less, the cash portion of such Buyer’s Origination Fee) to the Company
                                            for the Notes to be issued and sold to such Buyer at the Closing by wire transfer of immediately
                                            available funds and (ii) the Company shall deliver to each Buyer a Note in the aggregate
                                            original principal amount as is set forth opposite such Buyer’s name on the Schedule
                                            of Buyers, duly executed on behalf of the Company and registered in the name of such Buyer
                                            or its designee.

 

     

     

    

 

		(d)	Origination
                                            Fee. At the Closing, each Buyer shall be entitled to an origination fee (the “Origination
                                            Fee”) in an amount equal to 3.0% of the original principal amount of such Buyer’s
                                            Note, consisting of (i) 2.0% of the original principal amount of such Buyer’s Note
                                            payable in cash and (ii) 1.0% of the original principal amount of such Buyer’s Note
                                            payable in shares of Common Stock, with the value of each such share being the arithmetic
                                            average of the VWAPs (as defined in Exhibit A) of the Common Stock for each
                                            of the ten (10) Trading Days (as defined in Exhibit A) immediately preceding
                                            the Effective Date, subject to the limitations set forth in Section 16(b) of the form of
                                            Note attached as Exhibit A.

 

		2)	BUYER’S
                                            REPRESENTATIONS AND WARRANTIES.

 

Each
Buyer, severally and not jointly, represents and warrants to the Company with respect to itself and no other Buyer, as of the date hereof
and as of the Closing Date:

 

		(a)	Organization;
                                            Authority. Such Buyer is an entity duly organized, validly existing and in good standing
                                            under the laws of the jurisdiction of its organization with the requisite power and authority
                                            to enter into and to consummate the transactions contemplated by the Transaction Documents
                                            (as defined below) to which it is a party and otherwise to carry out its obligations hereunder
                                            and thereunder.

 

		(b)	No
                                            Public Sale or Distribution. Such Buyer is acquiring (i) its Note, (ii) Common Stock
                                            issuable upon conversion of its Note, (iii) Common Stock issuable as payment of the Origination
                                            Fee, and (iv) Common Stock issuable as the payment of interest in the manner permitted
                                            by its Note (the shares of Common Stock issuable pursuant to clauses (ii) and (iv) are collectively
                                            referred to as “Conversion Shares”; and together with the Notes and the
                                            Common Stock issuable as payment of the Origination Fee, the “Securities”),
                                            in each case, for its own account and not with a view towards, or for resale in connection
                                            with, the public sale or distribution thereof in violation of applicable securities laws;
                                            provided, however, by making the representations and warranties herein, such
                                            Buyer does not covenant or agree to, or make any representation or warranty that it will,
                                            hold any of the Securities for any minimum or other specific term and reserves the right
                                            to dispose of the Securities at any time in accordance with or pursuant to a registration
                                            statement or an exemption from registration under the Securities Act of 1933, as amended
                                            (the “Securities Act”). Such Buyer does not presently have any agreement
                                            or understanding, directly or indirectly, with any Person to distribute any of the Securities
                                            in violation of applicable securities laws. For purposes of this Agreement, “Person”
                                            means an individual, a limited liability company, a partnership, a joint venture, a corporation,
                                            a trust, an unincorporated organization, any other entity and any Governmental Entity or
                                            any department or agency thereof.

 

		(c)	Accredited
                                            Investor Status. Such Buyer is an “accredited investor” as that term is defined
                                            in Rule 501(a) of Regulation D.

 

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

 

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		(e)	Information.
                                            Such Buyer and its advisors, if any, have been furnished with all materials relating to the
                                            business, finances and operations of the Company and materials relating to the offer and
                                            sale of the Securities that have been requested by such Buyer. Such Buyer and its advisors,
                                            if any, have reviewed the Transaction Documents (as defined below) and have had the opportunity
                                            to review the Company’s SEC (as defined below) filings and have been afforded the opportunity
                                            to ask questions of the Company and have received answers from the Company concerning the
                                            terms and conditions of the Securities, the merits and risks of investing in the Securities
                                            and the business, finances and operations of the Company. Neither such inquiries nor any
                                            other due diligence investigations conducted by such Buyer or its advisors, if any, or its
                                            representatives shall modify, amend or affect such Buyer’s right to rely on the Company’s
                                            representations and warranties contained herein and such Buyer has only relied on such representations
                                            and warranties. Such Buyer understands that its investment in the Securities involves a high
                                            degree of risk. Such Buyer has sought such accounting, legal and tax advice as it has considered
                                            necessary to make an informed investment decision with respect to its acquisition of the
                                            Securities.

 

		(f)	No
                                            Governmental Review. Such Buyer understands that no United States federal or state agency
                                            or any other government or governmental agency has passed on or made any recommendation or
                                            endorsement of the Securities or the fairness or suitability of the investment in the Securities
                                            and that no such authorities have passed upon or endorsed the merits of the offering of the
                                            Securities.

 

		(g)	Transfer
                                            or Resale. Such Buyer understands that except as provided in the Registration Rights
                                            Agreement: (i) the Securities have not been and are not being registered under the Securities
                                            Act or any state securities laws, and may not be offered for sale, sold, assigned or transferred
                                            unless (A) subsequently registered thereunder, (B) such Buyer shall have delivered to the
                                            Company (if requested by the Company) an opinion of counsel to such Buyer, reasonably acceptable
                                            to the Company, to the effect that such Securities to be sold, assigned or transferred may
                                            be sold, assigned or transferred pursuant to an exemption from such registration, or (C)
                                            such Buyer provides the Company with reasonable assurance that such Securities can be sold,
                                            assigned or transferred pursuant to Rule 144 promulgated under the Securities Act (or a successor
                                            rule thereto) (collectively, “Rule 144”); (ii) any sale of the Securities
                                            made in reliance on Rule 144 may be made only in accordance with the terms of Rule 144, and
                                            further, if Rule 144 is not applicable, any resale of the Securities, unless registered under
                                            the Securities Act and applicable state securities laws, if any, require compliance with
                                            some other exemption under the Securities Act or the rules and regulations of the SEC promulgated
                                            thereunder; and (iii) neither the Company nor any other Person is under any obligation to
                                            register the Securities under the Securities Act or any state securities laws or to comply
                                            with the terms and conditions of any exemption thereunder. Notwithstanding the foregoing,
                                            the Securities may be pledged in connection with a bona fide margin account or other loan
                                            or financing arrangement secured by the Securities and such pledge of Securities shall not
                                            be deemed to be a transfer, sale or assignment of the Securities hereunder, and no Buyer
                                            effecting a pledge of Securities shall be required to provide the Company with any notice
                                            thereof or otherwise make any delivery to the Company pursuant to this Agreement or any other
                                            Transaction Document, including, without limitation, this Section 2(g).

 

		(h)	Validity;
                                            Enforcement. This Agreement has been duly and validly authorized, executed and delivered
                                            on behalf of such Buyer and shall constitute the legal, valid and binding obligations of
                                            such Buyer enforceable against such Buyer in accordance with its respective terms, except
                                            as such enforceability may be limited by general principles of equity or to applicable bankruptcy,
                                            insolvency, reorganization, moratorium, liquidation and other similar laws relating to, or
                                            affecting generally, the enforcement of applicable creditors’ rights and remedies,
                                            and except as to rights to indemnification and to contribution may be limited by federal
                                            or state securities laws.

 

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		(i)	No
                                            Conflicts. The execution, delivery and performance by such Buyer of this Agreement and
                                            the consummation by such Buyer of the transactions contemplated hereby will not (i) result
                                            in a violation of the organizational documents of such Buyer, 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 to which such Buyer is a party, or (iii) result
                                            in a violation of any law, rule, regulation, order, judgment or decree (including federal
                                            and state securities laws) applicable to such Buyer, except in the case of clauses (ii) and
                                            (iii) above, for such conflicts, defaults, rights or violations which could not, individually
                                            or in the aggregate, reasonably be expected to have a material adverse effect on the ability
                                            of such Buyer to perform its obligations hereunder.

 

		(j)	Residency.
                                            Such Buyer is a resident of that jurisdiction specified below its address on the Schedule
                                            of Buyers.

 

		(k)	Consents.
                                            All consents, approvals, orders, and authorizations required on the part of such Buyer
                                            in connection with the execution, delivery and performance of each Transaction Document and
                                            the consummation of the transactions contemplated hereby and thereby have been obtained and
                                            are effective as of the date hereof.

 

		3)	REPRESENTATIONS
                                            AND WARRANTIES OF THE COMPANY.

 

The
Company represents and warrants to each of the Buyers that, except as set forth on Schedule 3, as of the date hereof and
as of the Closing Date:

 

		(a)	Organization
                                            and Qualification. The Company and each of its Subsidiaries is an entity duly organized
                                            and validly existing and in good standing under the laws of the jurisdiction in which it
                                            is formed, and has the requisite power and authority to own its properties and to carry on
                                            its business as now being conducted and as presently proposed to be conducted. The Company
                                            and each of its Significant Subsidiaries is duly qualified as a foreign entity to do business
                                            and is in good standing in every jurisdiction in which its ownership of property or the nature
                                            of the business conducted by it makes such qualification necessary, except to the extent
                                            that the failure to be so qualified or be in good standing would not reasonably be expected
                                            to have a Material Adverse Effect (as defined below). As used in this Agreement, “Material
                                            Adverse Effect” means any material adverse effect on (i) the business, properties,
                                            assets, liabilities, operations (including results thereof), condition (financial or otherwise)
                                            or prospects of the Company or any Significant Subsidiary, individually or taken as a whole,
                                            (ii) the transactions contemplated hereby or in any of the other Transaction Documents (as
                                            defined below) or any other agreements or instruments to be entered into in connection herewith
                                            or therewith, or (iii) the authority or ability of the Company or any of its Significant
                                            Subsidiaries to perform any of their respective obligations under any of the Transaction
                                            Documents. Other than as set forth on Schedule 3(a), the Company has no Significant
                                            Subsidiaries. “Subsidiaries” means any Person in which the Company, directly
                                            or indirectly, (I) owns at least 25% of the outstanding capital stock or holds at least 25%
                                            of the outstanding equity or similar interest of such Person or (II) controls the business,
                                            operations or administration of such Person, and each of the foregoing, is individually referred
                                            to herein as a “Subsidiary.” “Significant Subsidiaries”
                                            means the Subsidiaries that are not Excluded Subsidiaries (as defined in the Security and
                                            Pledge Agreement), and each of the foregoing is individually referred to herein as a “Significant
                                            Subsidiary.”

 

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		(b)	Authorization;
                                            Enforcement; Validity. The Company has the requisite power and authority to enter into
                                            and perform its obligations under this Agreement and the other Transaction Documents and
                                            to issue the Securities in accordance with the terms hereof and thereof. Each Significant
                                            Subsidiary has the requisite power and authority to enter into and perform its obligations
                                            under the Transaction Documents to which it is a party. The execution and delivery of this
                                            Agreement and the other Transaction Documents by the Company, and by each Significant Subsidiary
                                            of the Transaction Documents to which it is a party, and the consummation by the Company
                                            of the transactions contemplated hereby and thereby (including, without limitation, the issuance
                                            of the Notes and the reservation for issuance and issuance of the Conversion Shares issuable
                                            pursuant to the Notes as provided in Section 4(k)) have been duly authorized
                                            by the Company’s board of directors, and the consummation by each Significant Subsidiary
                                            of the transactions contemplated by the Transaction Documents to which it is a party has
                                            been duly authorized by such Significant Subsidiary’s board of directors or other governing
                                            body, as applicable, and (other than the filing of a Form D with the SEC and any other filings
                                            as may be required by any state securities agencies) no further filing, consent or authorization
                                            is required therefor by the Company or its Significant Subsidiaries, their respective boards
                                            of directors or their respective shareholders or other governing bodies. Without limiting
                                            the foregoing, and assuming compliance with the terms of the Notes by the parties thereto,
                                            the issuance of the maximum number of Conversion Shares issuable pursuant to the Notes will
                                            not require the Company to obtain stockholder approval under the rules and regulations of
                                            the Principal Market or of The Nasdaq Stock Market. This Agreement has been, and the other
                                            Transaction Documents to which it is a party will be prior to the Closing, duly executed
                                            and delivered by the Company, and each constitutes or will constitute the legal, valid and
                                            binding obligations of the Company, enforceable against the Company in accordance with its
                                            respective terms, except as such enforceability may be limited by general principles of equity
                                            or applicable bankruptcy, insolvency, reorganization, moratorium, liquidation or similar
                                            laws relating to, or affecting generally, the enforcement of applicable creditors’
                                            rights and remedies and except as rights to indemnification and to contribution may be limited
                                            by federal or state securities law. Prior to the Closing, the Transaction Documents to which
                                            each Significant Subsidiary is a party will be duly executed and delivered by each such Significant
                                            Subsidiary, and shall constitute the legal, valid and binding obligations of each such Significant
                                            Subsidiary, enforceable against each such Significant Subsidiary in accordance with their
                                            respective terms, except as such enforceability may be limited by general principles of equity
                                            or applicable bankruptcy, insolvency, reorganization, moratorium, liquidation or similar
                                            laws relating to, or affecting generally, the enforcement of applicable creditors’
                                            rights and remedies. “Transaction Documents” means, collectively, this
                                            Agreement, the Notes (in the form attached hereto as Exhibit A), the Security
                                            and Pledge Agreement (in the form attached hereto as Exhibit B), the Guaranties
                                            (in the form attached hereto as Exhibit C) and the Registration Rights Agreement
                                            (in the form attached hereto as Exhibit D), and each of the other agreements
                                            and instruments entered into or delivered by any of the parties hereto in connection with
                                            the transactions contemplated hereby and thereby, as may be amended from time to time.

 

		(c)	Issuance
                                            of Securities. The Securities being issued to each Buyer pursuant to Section 1(a)
                                            and 1(d) have been duly authorized by the Company, and, when such Securities are
                                            issued and delivered by the Company to such Buyer in accordance with the terms of this Agreement,
                                            such Securities will be validly issued, fully paid, and non-assessable and will be free of
                                            preemptive or similar rights, mortgages, defects, claims, liens, pledges, charges, taxes,
                                            rights of first refusal, encumbrances, security interests and other encumbrances (collectively
                                            “Liens”) with respect to the issuance thereof, other than restrictions
                                            on transfer under this Agreement and under applicable state and federal securities laws.
                                            Upon issuance or conversion in accordance with the Notes, the Conversion Shares, when issued,
                                            will be validly issued, fully paid and non-assessable and will be free of Liens with respect
                                            to the issuance thereof, other than restrictions on transfer under this Agreement and under
                                            applicable state and federal securities laws. The Company has reserved for issuance from
                                            its duly authorized capital stock at least 3,355,512 shares of Common Stock for issuance
                                            as Conversion Shares. Subject to the accuracy of the representations and warranties of the
                                            Buyers in this Agreement, the offer and issuance by the Company of the Securities is exempt
                                            from registration under the Securities Act.

 

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		(d)	No
                                            Conflicts. The execution, delivery and performance of the Transaction Documents by the
                                            Company, and by its Significant Subsidiaries of the Transaction Documents to which they are
                                            a party, and the consummation by the Company of the transactions contemplated hereby and
                                            thereby (including, without limitation, the issuance of the Notes and the Conversion Shares
                                            and the reservation for issuance of the Conversion Shares), and the consummation by each
                                            Significant Subsidiary of the transactions contemplated by the Transaction Documents to which
                                            it is a party, will not (i) result in a violation of the Company’s Amended & Restated
                                            Certificate of Incorporation (including, without limitation, any certificate of designation
                                            contained therein) (the “Certificate of Incorporation”), the Company’s
                                            Amended and Restated Bylaws (the “Bylaws”), certificate of formation,
                                            memorandum of association, articles of association, bylaws or other organizational documents
                                            of the Company or any of its Subsidiaries, or any capital stock or other securities of the
                                            Company or any of its Subsidiaries, (ii) conflict in any material respect with, or constitute
                                            a default (or an event which with notice or lapse of time or both would become a default)
                                            in any material respect under, or give to others any material rights of termination, amendment,
                                            acceleration or cancellation of, any material agreement, indenture or instrument to which
                                            the Company or any of its Subsidiaries is a party, or (iii) result in a material violation
                                            of any law, rule, regulation, order, judgment or decree (including, without limitation, foreign,
                                            federal and state securities laws and regulations and the rules and regulations of the Nasdaq
                                            Capital Market (the “Principal Market”) and including all applicable foreign,
                                            federal and state laws, rules and regulations) applicable to the Company or any of its Subsidiaries
                                            or by which any property or asset of the Company or any of its Subsidiaries is bound or affected.
                                            Neither the execution and delivery of this Agreement or any of the other Transaction Documents
                                            nor the performance of the Company’s and its Significant Subsidiaries’ obligations
                                            thereunder (including the issuance of the Conversion Shares) will result in any anti-dilution
                                            adjustments under the terms of any of the Company’s issued and outstanding debt or
                                            equity securities (including under any outstanding warrants or options to purchase Common
                                            Stock).

 

		(e)	Consents.
                                            Neither the Company nor any Significant Subsidiary is required to obtain any consent from,
                                            authorization or order of, or make any filing or registration with (other than the filing
                                            with the SEC of a Form D with the SEC and any other filings as may be required by any state
                                            agencies), any Governmental Entity (as defined below) or any regulatory or self-regulatory
                                            agency or any other Person in order for it to execute, deliver or perform any of its respective
                                            obligations under or contemplated by the Transaction Documents, in each case, in accordance
                                            with the terms hereof or thereof. All consents, authorizations, orders, filings and registrations
                                            which the Company or any Significant Subsidiary is required to obtain pursuant to the preceding
                                            sentence have been or will be obtained or effected on or prior to the Closing Date. The Company
                                            is not in violation of the requirements of the Principal Market. “Governmental Entity”
                                            means any nation, state, county, city, town, village, district, or other political jurisdiction
                                            of any nature, federal, state, local, municipal, foreign, or other government, governmental
                                            or quasi-governmental authority of any nature (including any governmental agency, branch,
                                            department, official, or entity and any court or other tribunal), multi- national organization
                                            or body; or body exercising, or entitled to exercise, any administrative, executive, judicial,
                                            legislative, police, regulatory, or taxing authority or power of any nature or instrumentality
                                            of any of the foregoing, including any entity or enterprise owned or controlled by a government
                                            or a public international organization or any of the foregoing.

 

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		(f)	No
                                            General Solicitation; Placement Agent’s Fees. Neither the Company, nor any of its
                                            Subsidiaries or 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) in connection with the offer or sale of the Securities. The Company shall be responsible
                                            for the payment of any placement agent’s fees, financial advisory fees, or brokers’
                                            commissions (other than for Persons engaged by any Buyer or its investment advisor) relating
                                            to or arising out of the transactions contemplated hereby in connection with the sale of
                                            the Securities.

 

		(g)	No
                                            Integrated Offering. None of the Company, its Subsidiaries or any of their affiliates,
                                            nor any Person acting on their behalf has, directly or indirectly, made any offers or sales
                                            of any security or solicited any offers to buy any security, under circumstances that would
                                            require registration of the issuance of any of the Securities under the Securities Act, whether
                                            through integration with prior offerings or otherwise, or, other than transactions described
                                            in clauses (i)–(iv) of the second sentence of Section 4(j), cause this offering
                                            of the Securities to require approval of shareholders of the Company for purposes of the
                                            Securities Act or under any applicable shareholder approval provisions, including, without
                                            limitation, under the rules and regulations of the Principal Market.

 

		(h)	SEC
                                            Documents; Financial Statements. Since January 1, 2019, the Company has timely filed
                                            all reports, schedules, forms, proxy statements, statements and other documents required
                                            to be filed by it with the Securities and Exchange Commission (the “SEC”)
                                            pursuant to the reporting requirements of the Securities Exchange Act of 1934, as amended
                                            (the “Exchange Act”) (all of the foregoing filed prior to the date hereof
                                            and all exhibits and appendices included therein and financial statements, notes and schedules
                                            thereto and documents incorporated by reference therein being hereinafter referred to as
                                            the “SEC Documents”). As of their respective dates, the SEC Documents
                                            complied in all material respects with the requirements of the Exchange Act and the rules
                                            and regulations of the SEC promulgated thereunder applicable to the SEC Documents, and none
                                            of the SEC Documents, at the time they were filed with the SEC, contained any untrue statement
                                            of a material fact or omitted to state a material fact required to be stated therein or necessary
                                            in order to make the statements therein, in the light of the circumstances under which they
                                            were made, not misleading. As of their respective dates, the financial statements of the
                                            Company included in the SEC Documents complied in all material respects with applicable accounting
                                            requirements and the published rules and regulations of the SEC with respect thereto as in
                                            effect as of the time of filing. Such financial statements have been prepared in accordance
                                            with generally accepted accounting principles (“GAAP”), consistently applied,
                                            during the periods involved (except (i) as may be otherwise indicated in such financial statements
                                            or the notes thereto, or (ii) in the case of unaudited interim statements, to the extent
                                            they may exclude footnotes or may be condensed or summary statements) and fairly present
                                            in all material respects the financial position of the Company as of the dates thereof and
                                            the results of its operations and cash flows for the periods then ended (subject, in the
                                            case of unaudited statements, to normal year-end audit adjustments which will not be material,
                                            either individually or in the aggregate). The Company is not currently contemplating to amend
                                            or restate any of the financial statements (including, without limitation, any notes or any
                                            letter of the independent accountants of the Company with respect thereto) included in the
                                            SEC Documents (the “Financial Statements”), nor is the Company currently
                                            aware of facts or circumstances which would require the Company to amend or restate any of
                                            the Financial Statements, in each case, in order for any of the Financials Statements to
                                            be in compliance with GAAP and the rules and regulations of the SEC. The Company has not
                                            been informed by its independent accountants that they recommend that the Company amend or
                                            restate any of the Financial Statements or that there is any need for the Company to amend
                                            or restate any of the Financial Statements.

 

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		(i)	Internal
                                            Accounting and Disclosure Controls. The Company and each of its Significant Subsidiaries
                                            maintains internal control over financial reporting (as such term is defined in Rule 13a-15(f)
                                            under the Exchange Act) that is effective to provide reasonable assurance regarding the reliability
                                            of financial reporting and the preparation of financial statements for external purposes
                                            in accordance with generally accepted accounting principles, including 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 and liability accountability, (iii) access to assets or incurrence
                                            of liabilities is permitted only in accordance with management’s general or specific
                                            authorization and (iv) the recorded accountability for assets and liabilities is compared
                                            with the existing assets and liabilities at reasonable intervals and appropriate action is
                                            taken with respect to any difference. The Company maintains disclosure controls and procedures
                                            (as such term is defined in Rule 13a-15(e) under the Exchange Act) that are effective in
                                            ensuring that information required to be disclosed by the Company in the reports that it
                                            files or submits under the Exchange Act is recorded, processed, summarized and reported,
                                            within the time periods specified in the rules and forms of the SEC, including, without limitation,
                                            controls and procedures designed to ensure that information required to be disclosed by the
                                            Company in the reports that it files or submits under the Exchange Act is accumulated and
                                            communicated to the Company’s management, including its principal executive officer
                                            or officers and its principal financial officer or officers, as appropriate, to allow timely
                                            decisions regarding required disclosure. Except as set forth in the SEC Documents, neither
                                            the Company nor any of its Significant Subsidiaries has received any notice or correspondence
                                            from any accountant, Governmental Entity or other Person relating to any potential material
                                            weakness or significant deficiency in any part of the internal controls over financial reporting
                                            of the Company or any of its Significant Subsidiaries.

 

		(j)	Sarbanes-Oxley
                                            Act. The Company and each Significant Subsidiary is in compliance with any and all applicable
                                            requirements of the Sarbanes-Oxley Act of 2002, as amended, and any and all applicable rules
                                            and regulations promulgated by the SEC thereunder, in each case to the extent applicable.

 

		(k)	Shell
                                            Company Status. The Company is not, and has not been since January 1, 2019, an issuer
                                            identified in, or subject to, Rule 144(i).

 

		(l)	Absence
                                            of Certain Changes. Except as set forth in the SEC Documents or as disclosed on Schedule
                                            3(l), since the date of the Company’s most recent audited financial statements
                                            contained in its Form 10-K for the fiscal year ended December 31, 2020, there has been no
                                            material adverse change, and no other material adverse developments in the business, assets,
                                            liabilities, properties, operations (including results thereof), condition (financial or
                                            otherwise) or prospects of the Company or any of its Significant Subsidiaries. Except as
                                            set forth in the SEC Documents, since the date of the Company’s most recent audited
                                            financial statements contained in a Form 10-K, neither the Company nor any of its Significant
                                            Subsidiaries has (i) declared or paid any dividends, (ii) sold any assets, individually or
                                            in the aggregate, outside of the ordinary course of business or (iii) made any capital expenditures,
                                            individually or in the aggregate, outside of the ordinary course of business. Neither the
                                            Company nor any of its Significant Subsidiaries has taken any steps to seek protection pursuant
                                            to any law or statute relating to bankruptcy, insolvency, reorganization, receivership, liquidation
                                            or winding up, nor does the Company or any Significant Subsidiary have any knowledge or reason
                                            to believe that any of their respective creditors intend to initiate involuntary bankruptcy
                                            proceedings or any actual knowledge of any fact which would reasonably lead a creditor to
                                            do so. The Company and its Significant Subsidiaries, individually and on a consolidated basis,
                                            are not as of the date hereof, and after giving effect to the transactions contemplated hereby
                                            to occur at such Closing, will not be Insolvent (as defined below). For purposes of this
                                            Section 3(l), “Insolvent” means, (i) with respect to the Company
                                            and its Significant Subsidiaries, on a consolidated basis, (A) the present fair saleable
                                            value of the Company’s and its Significant Subsidiaries’ assets is less than
                                            the amount required to pay the Company’s and its Significant Subsidiaries’ total
                                            Indebtedness (as defined below), (B) the Company and its Significant Subsidiaries are unable
                                            to pay their debts and liabilities, subordinated, contingent or otherwise, as such debts
                                            and liabilities become absolute and matured or (C) the Company and its Significant Subsidiaries
                                            intend to incur or believe that they will incur debts that would be beyond their ability
                                            to pay as such debts mature; and (ii) with respect to the Company and each Significant Subsidiary,
                                            individually, (A) the present fair saleable value of the Company’s or such Significant
                                            Subsidiary’s (as the case may be) assets is less than the amount required to pay its
                                            respective total Indebtedness, (B) the Company or such Significant Subsidiary (as the case
                                            may be) is unable to pay its respective debts and liabilities, subordinated, contingent or
                                            otherwise, as such debts and liabilities become absolute and matured or (C) the Company or
                                            such Significant Subsidiary (as the case may be) intends to incur or believes that it will
                                            incur debts that would be beyond its respective ability to pay as such debts mature. Neither
                                            the Company nor any of its Significant Subsidiaries has engaged in any business or in any
                                            transaction, and is not about to engage in any business or in any transaction, for which
                                            the Company’s or such Significant Subsidiary’s remaining assets constitute unreasonably
                                            small capital with which to conduct the business in which it is engaged as such business
                                            is now conducted and is proposed to be conducted.

 

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		(m)	Equity
                                            Capitalization.

 

		(i)	Definitions:

 

		(A)	“Common
                                            Stock” means the Company’s shares of common stock, par value $0.0001 per
                                            share.

 

		(B)	“Preferred
                                            Stock” means (x) the Company’s shares of undesignated preferred stock, par
                                            value $0.0001 per share.

 

		(ii)	Authorized
                                            and Outstanding Capital Stock. As of the date hereof, the authorized capital stock of
                                            the Company consists of (A) 1,000,000,000 shares of Common Stock, of which 23,451,179 shares
                                            are issued and outstanding and, except as set forth on Schedule 3(m)(iii), no shares are
                                            reserved for issuance pursuant to Convertible Securities (as defined below) exercisable or
                                            exchangeable for, or convertible into, shares of Common Stock, and (B) 20,000,000 shares
                                            of Preferred Stock, none of which are issued, outstanding or otherwise reserved for issuance.

 

		(iii)	Valid
                                            Issuance; Reserved Shares. All of such outstanding shares of Common Stock have been duly
                                            authorized and are validly issued and are fully paid and nonassessable. Schedule 3(m)(iii)
                                            sets forth the number of shares of Common Stock that are reserved for issuance pursuant to
                                            Convertible Securities (as defined below).

 

		(iv)	Existing
                                            Securities; Obligations. Except as disclosed on Schedule 3(m)(iv): (A) none of the Company’s
                                            or any Subsidiary’s shares, interests or capital stock is subject to preemptive rights
                                            or any other similar rights or Liens suffered or permitted by the Company or any Subsidiary;
                                            (B) there are no outstanding options, warrants, rights to subscribe for calls or commitments
                                            of any character whatsoever relating to, or securities or rights convertible into, or exercisable
                                            or exchangeable for, any shares, interests or capital stock of the Company or any of its
                                            Subsidiaries, or contracts, commitments, understandings or arrangements by which the Company
                                            or any of its Subsidiaries is or may become bound to issue additional shares, interests or
                                            capital stock of the Company or any of its Subsidiaries or options, warrants, rights to subscribe
                                            to, calls or commitments of any character whatsoever relating to, or securities or rights
                                            convertible into, or exercisable or exchangeable for, any shares, interests or capital stock
                                            of the Company or any of its Subsidiaries; (C) there are no agreements or arrangements under
                                            which the Company or any of its Subsidiaries is obligated to register the sale of any of
                                            their securities under the Securities Act; (D) there are no outstanding securities or instruments
                                            of the Company or any of its Subsidiaries which contain any redemption or similar provisions,
                                            and there are no contracts, commitments, understandings or arrangements by which the Company
                                            or any of its Subsidiaries is or may become bound to redeem a security of the Company or
                                            any of its Subsidiaries; (E) there are no securities or instruments containing anti-dilution
                                            or similar provisions that will be triggered by the issuance of the Securities; and (F) neither
                                            the Company nor any Subsidiary has any stock appreciation rights or “phantom stock”
                                            plans or agreements or any similar plan or agreement.

 

    9

     

    

 

		(n)	Indebtedness
                                            and Other Contracts. Neither the Company nor any of its Significant Subsidiaries, except
                                            as disclosed on Schedule 3(n), (i) has any outstanding debt securities, notes,
                                            credit agreements, credit facilities or other agreements, documents or instruments evidencing
                                            Indebtedness of the Company or any of its Significant Subsidiaries or by which the Company
                                            or any of its Significant Subsidiaries is or may become bound, (ii) is a party to any contract,
                                            agreement or instrument, any reasonably expected violation of which, or reasonably expected
                                            default under which, by the other party or parties to such contract, agreement or instrument
                                            would reasonably be expected to result in a Material Adverse Effect, (iii) has any financing
                                            statements securing obligations in any amounts filed in connection with the Company or any
                                            of its Significant Subsidiaries; (iv) is in violation of any term of, or in default under,
                                            any contract, agreement or instrument relating to any Indebtedness in which the amount owed
                                            by the Company or any of its Subsidiaries is in excess of $100,000, or (v) is a party to
                                            any contract, agreement or instrument relating to any Indebtedness, the performance of which,
                                            in the judgment of the Company’s officers, has or is reasonably likely to have a Material
                                            Adverse Effect. Neither the Company nor any of its Significant Subsidiaries have any liabilities
                                            or obligations required to be disclosed in the SEC Documents which are not so disclosed in
                                            the SEC Documents, other than those incurred in the ordinary course of the Company’s
                                            or its Subsidiaries’ respective businesses and which, individually or in the aggregate,
                                            would not be reasonably likely to Material Adverse Effect. For purposes of this Agreement:
                                            (x) “Indebtedness” of any Person means, without duplication (A) all
                                            indebtedness for borrowed money, (B) all obligations issued, undertaken or assumed as the
                                            deferred purchase price of property or services (including, without limitation, “capital
                                            leases” in accordance with GAAP) (other than trade payables entered into in the ordinary
                                            course of business consistent with past practice), (C) all reimbursement or payment obligations
                                            with respect to letters of credit, surety bonds and other similar instruments, (D) all obligations
                                            evidenced by notes, bonds, debentures or similar instruments, including obligations so evidenced
                                            incurred in connection with the acquisition of property, assets or businesses, (E) all indebtedness
                                            created or arising under any conditional sale or other title retention agreement, or incurred
                                            as financing, in either case with respect to any property or assets acquired with the proceeds
                                            of such indebtedness (even though the rights and remedies of the seller or bank under such
                                            agreement in the event of default are limited to repossession or sale of such property),
                                            (F) all monetary obligations under any leasing or similar arrangement which, in connection
                                            with GAAP, consistently applied for the periods covered thereby, is classified as a capital
                                            lease, (G) all indebtedness referred to in clauses (A) through (F) above secured by (or for
                                            which the holder of such Indebtedness has an existing right, contingent or otherwise, to
                                            be secured by) any Lien upon or in any property or assets (including accounts and contract
                                            rights) owned by any Person, even though the Person which owns such assets or property has
                                            not assumed or become liable for the payment of such indebtedness, and (H) all Contingent
                                            Obligations in respect of indebtedness or obligations of others of the kinds referred to
                                            in clauses (A) through (G) above; and (y) “Contingent Obligation” means,
                                            as to any Person, any direct or indirect liability, contingent or otherwise, of that Person
                                            with respect to any Indebtedness, lease, dividend or other obligation of another Person if
                                            the primary purpose or intent of the Person incurring such liability, or the primary effect
                                            thereof, is to provide assurance to the obligee of such liability that such liability will
                                            be paid or discharged, or that any agreements relating thereto will be complied with, or
                                            that the holders of such liability will be protected (in whole or in part) against loss with
                                            respect thereto.

 

		(o)	Conduct
                                            of Business; Regulatory Permits. Neither the Company nor any of its Significant Subsidiaries
                                            is in violation of any term of or in default under its Certificate of Incorporation, any
                                            certificate of designation, preferences or rights of any other outstanding series of preferred
                                            stock of the Company or any of its Significant Subsidiaries or Bylaws or their organizational
                                            charter, certificate of formation, memorandum of association, articles of association, certificate
                                            of incorporation or bylaws, respectively. Neither the Company nor any of its Significant
                                            Subsidiaries is in violation of any judgment, decree or order or any statute, ordinance,
                                            rule or regulation applicable to the Company or any of its Significant Subsidiaries, and
                                            neither the Company nor any of its Significant Subsidiaries will conduct its business in
                                            violation of any of the foregoing, except in all cases for violations which have not had,
                                            and would not reasonably be expected to have, individually or in the aggregate, have a Material
                                            Adverse Effect. Without limiting the generality of the foregoing, the Company is not in violation
                                            of any of the rules, regulations or requirements of the Principal Market and has no knowledge
                                            of any facts or circumstances that could reasonably lead to delisting or suspension of the
                                            Common Stock by the Principal Market in the foreseeable future. Since August 24, 2021, (i)
                                            the Common Stock has been listed or designated for quotation on the Principal Market, (ii)
                                            trading in the Common Stock has not been suspended by the SEC or the Principal Market and
                                            (iii) the Company has received no communication, written or oral, from the SEC or the Principal
                                            Market regarding the suspension or delisting of the Common Stock from the Principal Market.
                                            The Company and each of its Significant Subsidiaries possess all certificates, authorizations
                                            and permits issued by the appropriate regulatory authorities necessary to conduct their respective
                                            businesses, except where the failure to possess such certificates, authorizations or permits
                                            would not have, individually or in the aggregate, a Material Adverse Effect, and neither
                                            the Company nor any such Significant Subsidiary has received any notice of proceedings relating
                                            to the revocation or modification of any such certificate, authorization or permit. There
                                            is no agreement, commitment, judgment, injunction, order or decree binding upon the Company
                                            or any of its Significant Subsidiaries or to which the Company or any of its Significant
                                            Subsidiaries is a party which has or would reasonably be expected to have the effect of prohibiting
                                            or materially impairing any business practice of the Company or any of its Significant Subsidiaries,
                                            any acquisition of property by the Company or any of its Significant Subsidiaries or the
                                            conduct of business by the Company or any of its Significant Subsidiaries as currently conducted
                                            other than such effects, individually or in the aggregate, which have not had and would not
                                            reasonably be expected to have a Material Adverse Effect on the Company or any of its Significant
                                            Subsidiaries.

 

    10

     

    

 

		(p)	Litigation.
                                            There is no action, suit, arbitration, proceeding, inquiry or investigation before or by
                                            the Principal Market, any court, public board, other Governmental Entity, self-regulatory
                                            organization or body pending or, to the knowledge of the Company, threatened against or affecting
                                            the Company or any of its Subsidiaries, the Common Stock or any of the Company’s or
                                            its Subsidiaries’ officers or directors, whether of a civil or criminal nature or otherwise,
                                            in their capacities as such, except as set forth in Schedule 3(p). Without limitation
                                            of the foregoing, there has not been, and to the knowledge of the Company, there is not pending
                                            or contemplated, any investigation by the SEC involving the Company, any of its Subsidiaries
                                            or any current or former director or officer of the Company or any of its Subsidiaries. Neither
                                            the Company nor any of its Subsidiaries is subject to any order, writ, judgment, injunction,
                                            decree, determination or award of any Governmental Entity.

 

		(q)	Employee
                                            Relations. Neither the Company nor any of its Significant Subsidiaries is a party to
                                            any collective bargaining agreement or employs any member of a union. The Company and its
                                            Significant Subsidiaries believe that their relations with their employees are good. No executive
                                            officer (as defined in Rule 501(f) promulgated under the Securities Act), of the Company
                                            or any of its Significant Subsidiaries, has notified the Company or any such Significant
                                            Subsidiary that such officer intends to leave the Company or any such Significant Subsidiary
                                            or otherwise terminate such officer’s employment with the Company or any such Significant
                                            Subsidiary. No executive officer of the Company or any of its Significant Subsidiaries is,
                                            or is now expected to be, in violation of any material term of any employment contract, confidentiality,
                                            disclosure or proprietary information agreement, non-competition agreement, or any other
                                            contract or agreement or any restrictive covenant, and the continued employment of each such
                                            executive officer does not subject the Company or any of its Significant Subsidiaries to
                                            any liability with respect to any of the foregoing matters. The Company and its Significant
                                            Subsidiaries are in compliance with all federal, state, local and foreign laws and regulations
                                            respecting labor, employment and employment practices and benefits, terms and conditions
                                            of employment and wages and hours, except where failure to be in compliance would not, either
                                            individually or in the aggregate, reasonably be expected to result in a Material Adverse
                                            Effect.

 

		(r)	Intellectual
                                            Property Rights. The Company and its Significant Subsidiaries own or possess adequate
                                            rights or licenses to use all trademarks, trade names, service marks, service mark registrations,
                                            service names, original works of authorship, patents, patent rights, copyrights, inventions,
                                            licenses, approvals, governmental authorizations, trade secrets and other intellectual property
                                            rights and all applications and registrations therefor (“Intellectual Property Rights”)
                                            necessary to conduct their respective businesses as now conducted and presently proposed
                                            to be conducted. The Company and its Significant Subsidiaries have taken commercially reasonable
                                            action to maintain and protect all of the Intellectual Property Rights that are necessary
                                            or material to the conduct of their respective businesses. To the Knowledge of the Company,
                                            the Intellectual Property Rights owned, licensed or used by the Company or any such Significant
                                            Subsidiary are valid and enforceable. Neither the Company nor any of its Significant Subsidiaries
                                            has received any notice alleging any violation or infringement by the Company or any of its
                                            Significant Subsidiaries of any Intellectual Property Rights of third parties. To the Knowledge
                                            of the Company, no third party has infringed upon any Intellectual Property Rights of the
                                            Company or any such Significant Subsidiary. Each of the patents both (x) owned by the Company
                                            or any of its Significant Subsidiaries and (y) currently used (or proposed to be used) in
                                            the business of the Company or any of its Significant Subsidiaries is listed on Schedule
                                            3(r). Except as set forth in Schedule 3(r), none of the Company’s or its
                                            Significant Subsidiary’s Intellectual Property Rights that are necessary or material
                                            to the conduct of their respective businesses have expired or terminated or have been abandoned
                                            or are expected to expire or terminate or are expected to be abandoned, within three years
                                            from the date of this Agreement. Except as set forth in Schedule 3(r), there is no
                                            claim, action or proceeding being made or brought, or to the Knowledge of the Company or
                                            any of its Significant Subsidiaries, being threatened, against the Company or any of its
                                            Significant Subsidiaries regarding its Intellectual Property Rights. To the Knowledge of
                                            the Company, there are no facts or circumstances that might give rise to any of the foregoing
                                            infringements or claims, actions or proceedings. The Company and its Significant Subsidiaries
                                            have taken reasonable security measures to protect the secrecy and confidentiality of all
                                            of their material Intellectual Property Rights. For purposes of this Section 3(r),
                                            “Knowledge of the Company” shall mean the knowledge, after reasonable
                                            inquiry and investigation, of the Company’s executive officers and general counsel.

 

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		(s)	Tax
                                            Status. Since January 1, 2019, the Company and each of its Subsidiaries (i) has timely
                                            made or filed (taking into account any filing extensions) all material tax returns, reports
                                            and declarations required by any jurisdiction to which it is subject, (ii) has timely paid
                                            all taxes and other governmental assessments and charges that are material in amount, shown
                                            or determined to be due on such returns, reports and declarations, except those being contested
                                            in good faith, and (iii) has set aside on its books provision reasonably adequate for the
                                            payment of all taxes for periods subsequent to the periods to which such returns, reports
                                            or declarations apply. There are no unpaid taxes in any material amount claimed in writing
                                            to be due by the taxing authority of any jurisdiction, and the officers of the Company and
                                            its Subsidiaries know of no basis for any such claim.

 

		(t)	Investment
                                            Company Status. The Company is not, and upon consummation of the sale of the Securities
                                            will not be, an “investment company,” an affiliate of an “investment company,”
                                            a company controlled by an “investment company” or an “affiliated person”
                                            of, or “promoter” or “principal underwriter” for, an “investment
                                            company” as such terms are defined in the Investment Company Act of 1940, as amended.

 

		(u)	Transfer
                                            Taxes. On the Closing Date, all stock transfer or other taxes (other than income or similar
                                            taxes) which are required to be paid in connection with the issuance, sale and transfer of
                                            the Securities to be sold to each Buyer hereunder will be, or will have been, fully paid
                                            or provided for by the Company, and all laws imposing such taxes will be or will have been
                                            complied with.

 

		(v)	Disclosure.
                                            The Company confirms that neither it nor any other Person acting on its behalf has provided
                                            any of the Buyers or their agents or counsel with any information that constitutes or could
                                            reasonably be expected to constitute material, non-public information concerning the Company
                                            or any of its Subsidiaries, other than the existence of the transactions contemplated by
                                            this Agreement and the other Transaction Documents and any information included in the filings
                                            required to be made pursuant to Section 4(i)(i). The Company understands and confirms
                                            that each of the Buyers will rely on the foregoing representations in effecting transactions
                                            in securities of the Company. No disclosure furnished to the Buyers by or on behalf of the
                                            Company or any of its Significant Subsidiaries and regarding the Company and its Significant
                                            Subsidiaries, their businesses and the transactions contemplated hereby, including the schedules
                                            to this Agreement, contained any untrue statement of a material fact or omitted to state
                                            any material fact necessary in order to make the statements made therein, in the light of
                                            the circumstances under which they were made, not misleading. No event or circumstance has
                                            occurred or information exists with respect to the Company or any of its Significant Subsidiaries
                                            or its or their business, properties, liabilities, prospects, operations (including results
                                            thereof) or conditions, which, under applicable law, rule or regulation, requires public
                                            disclosure at or before the date hereof or announcement by the Company but which has not
                                            been so publicly disclosed. The Company acknowledges and agrees that no Buyer makes or has
                                            made any representations or warranties with respect to the transactions contemplated hereby
                                            other than those specifically set forth in Section 2.

 

		4)	AFFIRMATIVE
                                            AND OTHER COVENANTS.

 

		(a)	Best
                                            Efforts. Each Buyer shall use its best efforts to timely satisfy each of the covenants
                                            hereunder and conditions to be satisfied by it as provided in Section 6 of this Agreement.
                                            The Company shall use its best efforts to timely satisfy each of the covenants hereunder
                                            and conditions to be satisfied by it as provided in Section 7.

 

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		(b)	Form
                                            D and Blue Sky. The Company shall file a Form D with respect to the Securities as required
                                            under Regulation D and to provide a copy thereof to each Buyer promptly after such filing.
                                            The Company shall, on or before the Closing Date, take such action as the Company shall reasonably
                                            determine is necessary in order to obtain an exemption for, or to qualify, the Securities
                                            for sale to the Buyers pursuant to this Agreement under applicable securities or “Blue
                                            Sky” laws of the states of the United States (or to obtain an exemption from such qualification),
                                            and shall provide evidence of any such action so taken to the Buyers on or prior to such
                                            applicable Closing Date.

 

		(c)	Reporting
                                            Status. Until the date on which the Buyers shall have converted, redeemed or sold all
                                            of the Registrable Securities (as such term is defined in the Registration Rights Agreement
                                            being entered into by the parties hereto at the Closing) (the “Reporting Period”),
                                            the Company shall timely file all reports required to be filed with the SEC 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 no longer require or otherwise permit such termination.

 

		(d)	Use
                                            of Proceeds. The Company will use the net proceeds from the sale of the Securities (less
                                            reasonable fees and expenses as described in Section 4(g)) to fund operating expenses,
                                            for general working capital, fees and expenses.

 

		(e)	Financial
                                            Information. The Company agrees to send the following to each holder of Notes during
                                            the Reporting Period (i) unless the following are filed with the SEC through EDGAR and are
                                            available to the public through the EDGAR system, within one Business Day after the filing
                                            thereof with the SEC, a copy of its Annual Reports on Form 10-K and Quarterly Reports on
                                            Form 10-Q, copies of all Current Reports on Form 8-K and any registration statements (other
                                            than on Form S-8) or amendments filed pursuant to the Securities Act, (ii) unless the following
                                            are either filed with the SEC through EDGAR or are otherwise widely disseminated via a recognized
                                            news release service, on the same day as the release thereof, facsimile copies of all press
                                            releases issued by the Company or any of its Subsidiaries and (iii) unless the following
                                            are filed with the SEC through EDGAR, copies of any notices and other information made available
                                            or given to the shareholders of the Company generally, contemporaneously with the making
                                            available or giving thereof to the shareholders.

 

		(f)	Listing.
                                            The Company shall maintain the Common Stock’s listing or authorization for quotation
                                            (as the case may be) on the Principal Market, The New York Stock Exchange, the NYSE American,
                                            the Nasdaq Global Market or the Nasdaq Global Select Market (each, an “Eligible
                                            Market”). Neither the Company nor any of its Significant Subsidiaries shall take
                                            any action that could be reasonably expected to result in the delisting or suspension of
                                            the Common Stock on an Eligible Market.

 

		(g)	Fees.
                                            The Company shall be responsible for the payment of any placement agent’s fees, financial
                                            advisory fees, transfer agent fees, DTC (as defined below) fees or broker’s commissions
                                            (other than for Persons engaged by any Buyer or its investment advisor) relating to or arising
                                            out of the transactions contemplated hereby. The Company shall pay, and hold each Buyer harmless
                                            against, any liability, loss or expense (including, without limitation, reasonable attorneys’
                                            fees and out-of-pocket expenses) arising in connection with any claim relating to any such
                                            payments. Except as otherwise set forth in the Transaction Documents, each party to this
                                            Agreement shall bear its own expenses in connection with the sale of the Securities to the
                                            Buyers.

 

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		(h)	Pledge
                                            of Securities. Notwithstanding anything to the contrary contained in this Agreement,
                                            the Company acknowledges and agrees that the Securities may be pledged by the Buyers (or
                                            their direct or indirect transferees) in connection with a bona fide margin agreement or
                                            other loan or financing arrangement that is secured by the Securities. No holder of Notes
                                            effecting a pledge of Securities shall be required to provide the Company with any notice
                                            thereof or otherwise make any delivery to the Company pursuant to this Agreement or any other
                                            Transaction Document. The Company hereby agrees to execute and deliver such documentation
                                            as a pledgee of the Securities may reasonably request in connection with a pledge of the
                                            Securities to such pledgee by a Buyer.

 

		(i)	Disclosure
                                            of Transactions and Other Material Information.

 

		(i)	Disclosure
                                            of Transaction. The Company shall, on or before 9:30 a.m., Eastern time, on the first
                                            Business Day after the date of this Agreement, issue a press release (the “Press
                                            Release”) disclosing the parties’ entry into this Agreement. On or before
                                            9:30 a.m., Eastern time, on the first Business Day after the date of this Agreement, the
                                            Company shall file a Current Report on Form 8-K describing all the material terms of the
                                            transactions contemplated by the Transaction Documents in the form required by the Exchange
                                            Act and attaching all required Transaction Documents (the “Form 8-K Filing”).
                                            As of immediately after the filing of the Form 8-K Filing, no Buyer shall be in possession
                                            of any material, non-public information received from the Company or any of its Subsidiaries
                                            or any of their respective officers, directors, employees or agents in connection with the
                                            transactions contemplated by the Transaction Documents.

 

		(ii)	Limitations
                                            on Disclosure. Neither the Company, its Subsidiaries nor any Buyer shall issue any press
                                            releases or any other public statements with respect to the transactions contemplated hereby;
                                            provided, however, the Company shall be entitled, without the prior approval
                                            of any Buyer, to make the Press Release and any press release or other public disclosure
                                            with respect to such transactions (i) in substantial conformity with the Form 8-K Filing
                                            and contemporaneously therewith and (ii) as is required by applicable law and regulations.
                                            Without the prior written consent of the applicable Buyer (which may be granted or withheld
                                            in such Buyer’s sole discretion), the Company shall not (and shall cause each of its
                                            Subsidiaries and affiliates to not) disclose the name of such Buyer in any filing, announcement,
                                            release or otherwise, except as required by applicable law.

 

		(j)	Additional
                                            Issuance of Securities. The Company agrees that for the period commencing on the date
                                            hereof and ending on the date 90 days after the Closing Date (the “Restricted Period”),
                                            neither the Company nor any of its Significant Subsidiaries shall directly or indirectly
                                            issue, offer, sell, grant any option or right to purchase, or otherwise dispose of (or announce
                                            any issuance, offer, sale, grant of any option or right to purchase or other disposition
                                            of) any equity security or any equity-linked or related security (including, without limitation,
                                            any “equity security” (as that term is defined under Rule 405 promulgated under
                                            the Securities Act), any Convertible Securities (as defined below), any preferred stock or
                                            any purchase rights). Notwithstanding the foregoing, this Section 4(j) shall not apply
                                            in respect of the issuance of (i) up to 1,063,514 shares of Common Stock being issued
                                            on the date hereof to certain accredited investors pursuant to subscription agreements entered
                                            into with such accredited investors, (ii) shares of Common Stock issuable as payment
                                            of the Origination Fee, (iii) up to 200,000 shares of Common Stock issuable in connection
                                            with Permitted LOC Debt (as defined in the Notes), (iv) up to 142,710 shares of Common
                                            Stock (or warrants therefor) otherwise issuable in connection with the Closing; (v) shares
                                            of Common Stock or options to purchase Common Stock to directors, officers or employees of
                                            the Company in their capacity as such pursuant to an equity compensation plan in effect as
                                            of the date of this Agreement, provided that (1) all such issuances (taking into account
                                            the shares of Common Stock issuable upon exercise of such options) after the date hereof
                                            and during the Restricted Period pursuant to this clause (v) do not, in the aggregate, exceed
                                            more than 5% of the Common Stock issued and outstanding immediately prior to the date hereof
                                            and (2) the exercise price of any such options is not lowered, none of such options are amended
                                            to increase the number of shares issuable thereunder and none of the terms or conditions
                                            of any such options are otherwise materially changed in any manner that adversely affects
                                            any of the Buyers; (vi) shares of Common Stock issued upon the conversion or exercise of
                                            Convertible Securities (other than options to purchase Common Stock issued pursuant to equity
                                            compensation plans covered by clause (v) above) issued prior to the date hereof; and (vii)
                                            the Conversion Shares. “Convertible Securities” means any capital stock
                                            or other security of the Company or any of its Significant Subsidiaries that is at any time
                                            and under any circumstances directly or indirectly convertible into, exercisable or exchangeable
                                            for, or which otherwise entitles the holder thereof to acquire, any capital stock or other
                                            security of the Company (including, without limitation, Common Stock) or any of its Significant
                                            Subsidiaries.

 

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		(k)	Reservation
                                            of Shares. So long as any of the Notes remain outstanding, the Company shall take all
                                            action necessary (including calling a special meeting of stockholders) to at all times have
                                            authorized, and reserved for the purpose of issuance pursuant to the terms of the Notes,
                                            no less than (x) 3,384,011 shares of Common Stock, less (y) the number of shares of Common
                                            Stock theretofore issued as payment of the Origination Fee or as Conversion Shares (as adjusted
                                            for stock splits, stock dividends, stock combinations, recapitalizations and similar events,
                                            the “Required Reserve Amount”); provided, that at no time shall
                                            the number of shares of Common Stock reserved pursuant to this Section 4(k) be reduced
                                            other than proportionally in connection with any conversion, exercise and/or redemption,
                                            as applicable of the Note. If at any time the number of shares of Common Stock authorized
                                            and reserved for issuance is not sufficient to meet the Required Reserve Amount, the Company
                                            will promptly take all corporate action necessary to authorize and reserve a sufficient number
                                            of shares, including, without limitation, calling a special meeting of stockholders to authorize
                                            additional shares to meet the Company’s obligations pursuant to the Transaction Documents,
                                            in the case of an insufficient number of authorized shares, obtain stockholder approval of
                                            an increase in such authorized number of shares, and voting the management shares of the
                                            Company in favor of an increase in the authorized shares of the Company to ensure that the
                                            number of authorized shares is sufficient to meet the Required Reserve Amount.

 

		(l)	Conduct
                                            of Business. The business of the Company and its Subsidiaries shall be conducted in a
                                            manner does not result violation of any law, ordinance or regulation of any Governmental
                                            Entity, except where such violations would not reasonably be expected to result, either individually
                                            or in the aggregate, in a Material Adverse Effect.

 

		(m)	Conversion
                                            Procedures. The form of Conversion Notice (as defined in the Notes) included in the Notes
                                            set forth the totality of the procedures required of the Buyers in order to convert the Notes.
                                            Except as provided in Sections 2(g) and 5(d), no additional legal opinion,
                                            other information or instructions shall be required of the Buyers to convert their Notes.
                                            The Company shall honor conversions of the Notes and shall deliver the Conversion Shares
                                            in accordance with the terms, conditions and time periods set forth in the Notes.

 

		(n)	Collateral
                                            Agent. Each Buyer hereby (i) appoints Stephen Garchik as the collateral agent hereunder
                                            and under the Security and Pledge Agreement and the Guaranties (together, the “Security
                                            Documents”) (in such capacity, the “Collateral Agent”), and
                                            (ii) authorizes the Collateral Agent (and its officers, directors, employees and agents)
                                            to take such action on such Buyer’s behalf in accordance with the terms hereof and
                                            thereof. The Collateral Agent shall not have, by reason hereof or any of the other Security
                                            Documents, a fiduciary relationship in respect of any Buyer. Neither the Collateral Agent
                                            nor any of its officers, directors, employees or agents shall have any liability to any Buyer
                                            for any action taken or omitted to be taken in connection hereof or any other Security Document
                                            except to the extent caused by its own gross negligence or willful misconduct, and each Buyer
                                            agrees to defend, protect, indemnify and hold harmless the Collateral Agent and all of its
                                            officers, directors, employees and agents (collectively, the “Collateral Agent Indemnitees”)
                                            from and against any losses, damages, liabilities, obligations, penalties, actions, judgments,
                                            suits, fees, costs and expenses (including, without limitation, reasonable attorneys’
                                            fees, costs and expenses) incurred by such Collateral Agent Indemnitee, whether direct, indirect
                                            or consequential, arising from or in connection with the performance by such Collateral Agent
                                            Indemnitee of the duties and obligations of Collateral Agent pursuant hereto or any of the
                                            Security Documents. The Collateral Agent shall not be required to exercise any discretion
                                            or take any action, but shall be required to act or to refrain from acting (and shall be
                                            fully protected in so acting or refraining from acting) upon the instructions of the holders
                                            of a majority of the principal amount of the holders of the Notes outstanding at any particular
                                            time the Required Holders (as defined below), and such instructions shall be binding upon
                                            all holders of Notes; provided, however, that the Collateral Agent shall not be required
                                            to take any action which, in the reasonable opinion of the Collateral Agent, exposes the
                                            Collateral Agent to liability or which is contrary to this Agreement or any other Transaction
                                            Document or applicable law. The Collateral Agent shall be entitled to rely upon any written
                                            notices, statements, certificates, orders or other documents or any telephone message believed
                                            by it in good faith to be genuine and correct and to have been signed, sent or made by the
                                            proper Person, and with respect to all matters pertaining to this Agreement or any of the
                                            other Transaction Documents and its duties hereunder or thereunder, upon advice of counsel
                                            selected by it.

 

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		(o)	Successor
                                            Collateral Agent.

 

		(i)	The
                                            Collateral Agent may resign from the performance of all its functions and duties hereunder
                                            and under the other Transaction Documents at any time by giving at least ten Business Days’
                                            prior written notice to the Company and each holder of Notes. Such resignation shall take
                                            effect upon the acceptance by a successor Collateral Agent of appointment pursuant to clauses
                                            (ii) and (iii) below or as otherwise provided below.

 

		(ii)	Upon
                                            any such notice of resignation or removal, the Required Holders shall appoint a successor
                                            collateral agent. Upon the acceptance of any appointment as Collateral Agent hereunder by
                                            a successor agent, such successor collateral agent shall thereupon succeed to and become
                                            vested with all the rights, powers, privileges and duties of the collateral agent, and the
                                            Collateral Agent shall be discharged from its duties and obligations under this Agreement
                                            and the other Transaction Documents. After the Collateral Agent’s resignation or removal
                                            hereunder as the collateral agent, the provisions of this Section 4(o) shall inure to its
                                            benefit as to any actions taken or omitted to be taken by it while it was the Collateral
                                            Agent under this Agreement and the other Transaction Documents.

 

		(iii)	If
                                            a successor collateral agent shall not have been so appointed within ten Business Days of
                                            receipt of a written notice of resignation or removal, the Collateral Agent shall then appoint
                                            a successor collateral agent who shall serve as the Collateral Agent until such time, if
                                            any, as the Required Holders appoint a successor collateral agent as provided above.

 

		(iv)	In
                                            the event that a successor Collateral Agent is appointed pursuant to the provisions of this
                                            Section 4(o) that is not a Buyer or an affiliate of any Buyer (or the Required Holders or
                                            the Collateral Agent (or its successor), as applicable, notify the Company that they or it
                                            wants to appoint such a successor Collateral Agent pursuant to the terms of this Section
                                            4(o)), the Company and each Subsidiary thereof covenants and agrees to promptly take all
                                            actions reasonably requested by the Required Holders or the Collateral Agent (or its successor),
                                            as applicable, from time to time, to secure a successor Collateral Agent satisfactory to
                                            the requesting party or parties, in its or their sole discretion, including, without limitation,
                                            by paying all reasonable and customary fees and expenses of such successor Collateral Agent,
                                            by having the Company and each Subsidiary thereof agree to indemnify any successor Collateral
                                            Agent pursuant to reasonable and customary terms and by each of the Company and each Subsidiary
                                            thereof executing a collateral agency agreement or similar agreement and/or any amendment
                                            to the Security Documents reasonably requested or required by the successor Collateral Agent.

 

		(p)	Regulation
                                            M. The Company will not take any action prohibited by Regulation M under the Exchange
                                            Act, in connection with the distribution of the Securities contemplated hereby.

 

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		5)	REGISTER;
                                            TRANSFER AGENT INSTRUCTIONS; LEGEND.

 

		(a)	Register.
                                            The Company shall maintain at its principal executive offices (or such other office or agency
                                            of the Company as it may designate by notice to each holder of Securities), a register for
                                            the Notes in which the Company shall record the name and address of the Person in whose name
                                            the Notes have been issued (including the name and address of each transferee), the principal
                                            amount of the Notes held by such Person, and the number of Conversion Shares issuable pursuant
                                            to the terms of the Notes. The Company shall keep the register open and available at all
                                            times during business hours for inspection of any Buyer or its legal representatives.

 

		(b)	Transfer
                                            Agent Instructions. The Company shall issue irrevocable instructions (the “Irrevocable
                                            Transfer Agent Instructions”) to its transfer agent and any subsequent transfer
                                            agent (as applicable, the “Transfer Agent”) to issue certificates or credit
                                            shares to the applicable balance accounts at The Depository Trust Company (“DTC”),
                                            registered in the name of each Buyer or its respective nominee(s), for the Conversion Shares
                                            in such amounts as specified from time to time by each Buyer to the Company upon conversion
                                            of the Notes or upon the issuances of shares as interest in the manner permitted by the Notes.
                                            The Company represents and warrants that the Securities shall otherwise be freely transferable
                                            on the books and records of the Company, as applicable, to the extent provided in this Agreement
                                            and the other Transaction Documents. The Company acknowledges that a breach by it of its
                                            obligations hereunder will cause irreparable harm to a Buyer. Accordingly, the Company acknowledges
                                            that the remedy at law for a breach of its obligations under this Section 5(b) will
                                            be inadequate and agrees, in the event of a breach or threatened breach by the Company of
                                            the provisions of this Section 5(b), that a Buyer shall be entitled, in addition to
                                            all other available remedies, to an order and/or injunction restraining any breach and requiring
                                            immediate issuance and transfer, without the necessity of showing economic loss and without
                                            any bond or other security being required. Any fees (with respect to the transfer agent,
                                            counsel to the Company or otherwise) associated with the removal of any legends on any of
                                            the Securities shall be borne by the Company.

 

		(c)	Legends.
                                            Each Buyer understands that the Securities have been issued (or will be issued in the case
                                            of the Conversion Shares) pursuant to an exemption from registration or qualification under
                                            the Securities Act and applicable state securities laws, and except as set forth below, the
                                            Securities shall bear any legend as required by the “blue sky” laws of any state
                                            and a restrictive legend in substantially the following form (and a stop-transfer order may
                                            be placed against transfer of such stock certificates):

 

[NEITHER
THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS NOTE NOR THE SECURITIES INTO WHICH THESE NOTES ARE CONVERTIBLE HAVE BEEN]
[THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN] REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE
STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE
REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL TO THE HOLDER (IF
REQUESTED BY THE COMPANY), IN A FORM REASONABLY ACCEPTABLE TO THE COMPANY, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS
SOLD OR ELIGIBLE TO BE SOLD PURSUANT TO RULE 144 UNDER SAID ACT. NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION
WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES.

 

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		(d)	Removal
                                            of Legends. Certificates evidencing Securities shall not be required to contain the legend
                                            set forth in Section 5(c) above or any other legend (i) while a registration statement
                                            (including a Registration Statement) covering the resale of such Securities is effective
                                            under the Securities Act, (ii) following any sale of such Securities pursuant to Rule 144
                                            (assuming the transferor is not an affiliate of the Company), (iii) if such Securities are
                                            eligible to be sold, assigned or transferred under Rule 144 (provided that a Buyer provides
                                            the Company with reasonable assurances that such Securities are eligible for sale, assignment
                                            or transfer under Rule 144 which assurances shall not include an opinion of Buyer’s
                                            counsel), (iv) in connection with a sale, assignment or other transfer (other than under
                                            Rule 144), provided that such Buyer provides the Company with an opinion of counsel to such
                                            Buyer, in a generally acceptable form, to the effect that such sale, assignment or transfer
                                            of the Securities may be made without registration under the applicable requirements of the
                                            Securities Act or (v) if such legend is otherwise not required under applicable requirements
                                            of the Securities Act. If a legend is not required pursuant to the foregoing, the Company
                                            shall no later than two (2) Trading Days (or such earlier date as required pursuant to the
                                            Exchange Act or other applicable law, rule or regulation for the settlement of a trade initiated
                                            on the date such Buyer delivers such legended certificate representing such Securities to
                                            the Company) following the delivery by a Buyer to the Company or the transfer agent (with
                                            notice to the Company) of a legended certificate representing such Securities (endorsed or
                                            with stock powers attached, signatures guaranteed, and otherwise in form necessary to affect
                                            the reissuance and/or transfer, if applicable), together with any other deliveries from such
                                            Buyer as may be required above in this Section 5(d), as directed by such Buyer, either:
                                            (A) provided that the Company’s transfer agent is participating in the DTC Fast Automated
                                            Securities Transfer Program and such Securities are Conversion Shares, credit the aggregate
                                            number of shares of Common Stock to which such Buyer shall be entitled to such Buyer’s
                                            or its designee’s balance account with DTC through its Deposit/Withdrawal at Custodian
                                            system or (B) if the Company’s transfer agent is not participating in the DTC Fast
                                            Automated Securities Transfer Program, issue and deliver (via reputable overnight courier)
                                            to such Buyer, a certificate representing such Securities that is free from all restrictive
                                            and other legends, registered in the name of such Buyer or its designee (the date such shares
                                            of Common Stock are actually delivered without restrictive legend to such Buyer or such Buyer’s
                                            designee with DTC, as applicable, the “Share Delivery Date”). The Company
                                            shall be responsible for any transfer agent fees or DTC fees with respect to any issuance
                                            of Securities or the removal of any legends with respect to any Securities in accordance
                                            herewith.

 

		6)	CONDITIONS
                                            TO THE COMPANY’S OBLIGATION TO SELL.

 

The
obligation of the Company hereunder to issue and sell the Notes at the Closing is subject to the satisfaction, at or before the Closing
Date, of each of the following conditions, provided that these conditions are for the Company’s sole benefit and may be waived
by the Company at any time in its sole discretion by providing each Buyer with prior written notice thereof:

 

		(a)	Such
                                            Buyer shall have executed each of the other Transaction Documents to which it is a party
                                            and delivered the same to the Company.

 

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		(b)	Such
                                            Buyer and each other Buyer shall have delivered to the Company the Purchase Price for the
                                            Note being purchased by such Buyer at the Closing by wire transfer of immediately available
                                            funds.

 

		(c)	The
                                            representations and warranties of such Buyer shall be true and correct in all material respects
                                            as of the date when made and as of the Closing Date as though originally made at that time
                                            (except for representations and warranties that speak as of a specific date, which shall
                                            be true and correct as of such specific date), and such Buyer shall have performed, satisfied
                                            and complied in all material respects with the covenants, agreements and conditions required
                                            by this Agreement to be performed, satisfied or complied with by such Buyer at or prior to
                                            the Closing Date.

 

		7)	CONDITIONS
                                            TO EACH BUYER’S OBLIGATION TO PURCHASE.

 

The
obligation of each Buyer hereunder to purchase its Note at the Closing is subject to the satisfaction, at or before the Closing Date,
of each of the following conditions, provided that these conditions are for each Buyer’s sole benefit and may be waived by such
Buyer at any time in its sole discretion by providing the Company with prior written notice thereof:

 

		(a)	The
                                            following Transaction Documents shall have been executed and delivered to such Buyer

 

		(i)	An
                                            electronic copy of a Note executed by the Company in the original principal amount as is
                                            set forth across from such Buyer’s name in the Schedule of Buyers, with an original
                                            such Note to be transmitted to the address provided by such Buyer promptly following the
                                            Closing Date; and

 

		(ii)	The
                                            Registration Rights Agreement executed by the Company.

 

		(b)	The
                                            following Transaction Documents shall have been executed and delivered to the Collateral
                                            Agent:

 

		(iii)	The
                                            Guaranty executed by FIN Holdings Inc., ID Solutions, Inc. and Innovation in Motion Inc.
                                            (collectively, the “Domestic Subsidiaries”);

 

		(iv)	The
                                            Security and Pledge Agreement executed by the Company and the Domestic Subsidiaries; and

 

		(v)	Form
                                            UCC-1 Financing Statements as required by the Security and Pledge Agreement (which, for the
                                            avoidance of doubt, need not be executed).

 

		(c)	Such
                                            Buyer shall have received the opinion of Arnold & Porter Kaye Scholer LLP, special counsel
                                            to the Company, dated as of the Closing Date, in the form attached hereto as Exhibit E.

 

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		(d)	The
                                            Company shall have delivered to the Company’s transfer agent a copy of the Irrevocable
                                            Transfer Agent Instructions.

 

		(e)	The
                                            Company shall have delivered to such Buyer a certificate of good standing of the Company
                                            and each of its Significant Subsidiaries in each such entity’s jurisdiction of formation
                                            issued by the Secretary of State (or comparable office) of such jurisdiction of formation
                                            as of a date within ten days of the Closing Date.

 

		(f)	The
                                            Company shall have delivered to such Buyer a certificate evidencing the Company’s and
                                            each Significant Subsidiary’s qualification as a foreign corporation and good standing
                                            issued by the Secretary of State (or comparable office) of each jurisdiction in which the
                                            Company and each Subsidiary conducts business and is required to so qualify, as of a date
                                            within ten (10) days of the Closing Date.

 

		(g)	The
                                            Company shall have delivered to such Buyer a certified copy of the Certificate of Incorporation
                                            as certified by the Secretary of State of the State of Delaware within ten (10) Business
                                            Days of the Closing Date.

 

		(h)	Each
                                            Significant Subsidiary shall have delivered to such Buyer a certified copy of its Certificate
                                            of Incorporation (or such equivalent organizational document) as certified by the Secretary
                                            of State (or comparable office) of such Significant Subsidiary’s jurisdiction of incorporation
                                            within fifteen (15) Business Days of the Closing Date.

 

		(i)	The
                                            Company and each Significant Subsidiary shall have delivered to such Buyer a certificate,
                                            in the form acceptable to such Buyer, executed by the Secretary of the Company and each Significant
                                            Subsidiary and dated as of the Closing Date, as to (i) the resolutions adopted by the Company’s
                                            and each Significant Subsidiary’s board of directors in a form reasonably acceptable
                                            to such Buyer, (ii) the Certificate of Incorporation of the Company and the organizational
                                            documents of each Subsidiary and (iii) the Bylaws of the Company and the bylaws of each Significant
                                            Subsidiary, each as in effect at the Closing.

 

		(j)	The
                                            representations and warranties of the Company in this Agreement shall be true and correct
                                            in all material respects (except for representations and warranties qualified by material
                                            or Material Adverse Effect, which shall be true and correct in all respects) as of the date
                                            when made and as of the Closing Date as though originally made at that time (except for representations
                                            and warranties that speak of a specific date, which shall be true and correct in all material
                                            respects (except for representations and warranties qualified by material or Material Adverse
                                            Effect, which shall be true and correct in all respects) as of such specific date), and the
                                            Company shall have performed, satisfied and complied in all material respects with the covenants,
                                            agreements and conditions required by this Agreement to be performed, satisfied or complied
                                            with by the Company at or prior to the Closing Date. Such Buyer shall have received a certificate,
                                            duly executed by the Chief Executive Officer of the Company, dated as of the Closing Date,
                                            to the foregoing effect and as to such other matters as may be reasonably requested by such
                                            Buyer in the form acceptable to such Buyer.

 

		(k)	The
                                            Company shall have obtained all governmental, regulatory or third party consents and approvals,
                                            if any, necessary for the sale of the Securities, including without limitation, those required
                                            by the Principal Market, if any.

 

		(l)	No
                                            statute, rule, regulation, executive order, decree, ruling or injunction shall have been
                                            enacted, entered, promulgated or endorsed by any court or Governmental Entity of competent
                                            jurisdiction that prohibits the consummation of any of the transactions contemplated by the
                                            Transaction Documents.

 

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		(m)	Since
                                            the date of execution of this Agreement, no event or series of events shall have occurred
                                            that would reasonably be expected to have or result in a Material Adverse Effect.

 

		(n)	The
                                            Company shall have notified the Principal Market of the intended issuance of the Conversion
                                            Shares.

 

		(o)	The
                                            Company and its Subsidiaries shall have delivered to such Buyer such other documents, instruments
                                            or certificates relating to the transactions contemplated by this Agreement as such Buyer
                                            or its counsel may reasonably request.

 

		8)	TERMINATION.

 

In
the event that the Closing shall not have occurred with respect to a Buyer or, on the other hand, the Company, within five (5) days of
the date hereof, then such Buyer or the Company shall have the right to terminate its obligations under this Agreement with respect to
itself at any time on or after the close of business on such date without liability of such Buyer or the Company to any other party;
provided, however, (i) the right to terminate this Agreement under this Section 8 shall not be available to such
Buyer or the Company if the failure of the transactions contemplated by this Agreement to have been consummated by such date is the result
of such Buyer’s breach of this Agreement and (ii) the abandonment of the sale and purchase of the Notes shall be applicable only
to such Buyer or the Company providing such written notice, provided, further, that no such termination shall affect any
obligation of the Company under this Agreement to reimburse such Buyer for the expenses described in Section 4(g) above. Nothing contained
in this Section 8 shall be deemed to release any party from any liability for any breach by such party of the terms and provisions
of this Agreement or the other Transaction Documents or to impair the right of any party to compel specific performance by any other
party of its obligations under this Agreement or the other Transaction Documents.

 

		9)	MISCELLANEOUS.

 

		(a)	Governing
                                            Law; Jurisdiction; Jury Trial. All questions concerning the construction, validity, enforcement
                                            and interpretation of this Agreement shall be governed by the internal laws of the State
                                            of New York, without giving effect to any choice of law or conflict of law provision or rule
                                            (whether of the State of New York or any other jurisdictions) that would cause the application
                                            of the laws of any jurisdictions other than the State of New York. The Company hereby irrevocably
                                            submits to the exclusive jurisdiction of the state and federal courts sitting in The City
                                            of New York, Borough of Manhattan, for the adjudication of any dispute hereunder or in connection
                                            herewith or under any of the other Transaction Documents or with any transaction contemplated
                                            hereby or thereby, and hereby irrevocably waives, and agrees not to assert in any suit, action
                                            or proceeding, any claim that it is not personally subject to the jurisdiction of any such
                                            court, that such suit, action or proceeding is brought in an inconvenient forum or that the
                                            venue of such suit, action or proceeding is improper. 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. Nothing contained herein shall be deemed to limit
                                            in any way any right to serve process in any manner permitted by law. Nothing contained herein
                                            shall be deemed or operate to preclude any Buyer from bringing suit or taking other legal
                                            action against the Company in any other jurisdiction to collect on the Company’s obligations
                                            to such Buyer or to enforce a judgment or other court ruling in favor of such Buyer. EACH
                                            PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE TO, AND AGREES NOT TO REQUEST, A JURY
                                            TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR UNDER ANY OTHER TRANSACTION DOCUMENT
                                            OR IN CONNECTION WITH OR ARISING OUT OF THIS AGREEMENT, ANY OTHER TRANSACTION DOCUMENT OR
                                            ANY TRANSACTION CONTEMPLATED HEREBY OR THEREBY.

 

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		(b)	Counterparts.
                                            This Agreement may be executed in two or more identical counterparts, all of which shall
                                            be considered one and the same agreement and shall become effective when counterparts have
                                            been signed by each party and delivered to the other party. In the event that any signature
                                            is delivered by facsimile transmission or by an e-mail which contains a portable document
                                            format (.pdf) file of an executed signature page, such signature page shall create a valid
                                            and binding obligation of the party executing (or on whose behalf such signature is executed)
                                            with the same force and effect as if such signature page were an original thereof.

 

		(c)	Headings;
                                            Gender. The headings of this Agreement are for convenience of reference and shall not
                                            form part of, or affect the interpretation of, this Agreement. Unless the context clearly
                                            indicates otherwise, each pronoun herein shall be deemed to include the masculine, feminine,
                                            neuter, singular and plural forms thereof. The terms “including,” “includes,”
                                            “include” and words of like import shall be construed broadly as if followed
                                            by the words “without limitation.” The terms “herein,” “hereunder,”
                                            “hereof” and words of like import refer to this entire Agreement instead of just
                                            the provision in which they are found.

 

		(d)	Severability;
                                            Maximum Payment Amounts. If any provision of this Agreement is prohibited by law or otherwise
                                            determined to be invalid or unenforceable by a court of competent jurisdiction, the provision
                                            that would otherwise be prohibited, invalid or unenforceable shall be deemed amended to apply
                                            to the broadest extent that it would be valid and enforceable, and the invalidity or unenforceability
                                            of such provision shall not affect the validity of the remaining provisions of this Agreement
                                            so long as this Agreement as so modified continues to express, without material change, the
                                            original intentions of the parties as to the subject matter hereof and the prohibited nature,
                                            invalidity or unenforceability of the provision(s) in question does not substantially impair
                                            the respective expectations or reciprocal obligations of the parties or the practical realization
                                            of the benefits that would otherwise be conferred upon the parties. The parties will endeavor
                                            in good faith negotiations to replace the prohibited, invalid or unenforceable provision(s)
                                            with a valid provision(s), the effect of which comes as close as possible to that of the
                                            prohibited, invalid or unenforceable provision(s). Notwithstanding anything to the contrary
                                            contained in this Agreement or any other Transaction Document (and without implication that
                                            the following is required or applicable), it is the intention of the parties that in no event
                                            shall amounts and value paid by the Company and/or any of its Subsidiaries (as the case may
                                            be), or payable to or received by any of the Buyers, under the Transaction Documents (including
                                            without limitation, any amounts that would be characterized as “interest” under
                                            applicable law) exceed amounts permitted under any applicable law. Accordingly, if any obligation
                                            to pay, payment made to any Buyer, or collection by any Buyer pursuant the Transaction Documents
                                            is finally judicially determined to be contrary to any such applicable law, such obligation
                                            to pay, payment or collection shall be deemed to have been made by mutual mistake of such
                                            Buyer, the Company and its Subsidiaries and such amount shall be deemed to have been adjusted
                                            with retroactive effect to the maximum amount or rate of interest, as the case may be, as
                                            would not be so prohibited by the applicable law. Such adjustment shall be effected, to the
                                            extent necessary, by reducing or refunding, at the option of such Buyer, the amount of interest
                                            or any other amounts which would constitute unlawful amounts required to be paid or actually
                                            paid to such Buyer under the Transaction Documents. For greater certainty, to the extent
                                            that any interest, charges, fees, expenses or other amounts required to be paid to or received
                                            by such Buyer under any of the Transaction Documents or related thereto are held to be within
                                            the meaning of “interest” or another applicable term to otherwise be violative
                                            of applicable law, such amounts shall be pro-rated over the period of time to which they
                                            relate.

 

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		(e)	Entire
                                            Agreement; Amendments. This Agreement, the other Transaction Documents and the schedules
                                            and exhibits attached hereto and thereto and the instruments referenced herein and therein
                                            supersede all other prior oral or written agreements between the Buyers, the Company, its
                                            Subsidiaries, their affiliates and Persons acting on their behalf, and this Agreement, the
                                            other Transaction Documents, the schedules and exhibits attached hereto and thereto and the
                                            instruments referenced herein and therein contain the entire understanding of the parties
                                            solely with respect to the matters covered herein and therein. No provision of this Agreement
                                            may be amended other than by an instrument in writing signed by the Company and the holders
                                            of 66.67% in principal amount of the Notes then outstanding (collectively, the “Required
                                            Holders”), and any amendment to any provision of this Agreement made in conformity
                                            with the provisions of this Section 9(e) shall be binding on all Buyers and holders
                                            of Securities, as applicable. No waiver shall be effective unless it is in writing and signed
                                            by an authorized representative of the waiving party, provided, that the Required
                                            Holders may waive any provision of this Agreement, and any waiver of any provision of this
                                            Agreement made in conformity with the provisions of this Section 9(e) shall be binding
                                            on all Buyers and holders of Securities, as applicable. As a material inducement for each
                                            Buyer to enter into this Agreement, the Company expressly acknowledges and agrees that (x)
                                            no due diligence or other investigation or inquiry conducted by a Buyer, any of its advisors
                                            or any of its representatives shall affect such Buyer’s right to rely on, or shall
                                            modify or qualify in any manner or be an exception to any of, the Company’s representations
                                            and warranties contained in this Agreement or any other Transaction Document and (y) nothing
                                            contained in any of the SEC Documents shall affect such Buyer’s right to rely on, or
                                            shall modify or qualify in any manner or be an exception to any of, the Company’s representations
                                            and warranties contained in this Agreement or any other Transaction Document.

 

		(f)	Notices.
                                            Any notices, consents, waivers or other communications required or permitted to be given
                                            under the terms of this Agreement must be in writing and will be deemed to have been delivered:
                                            (i) upon receipt, when delivered personally; (ii) upon receipt, when sent by facsimile (provided
                                            confirmation of transmission is mechanically or electronically generated and kept on file
                                            by the sending party) or by electronic mail (provided that such sent email is kept on file
                                            (whether electronically or otherwise) by the sending party and the sending party does not
                                            receive an automatically generated message from the recipient’s email server that such
                                            e-mail could not be delivered to such recipient); or (iii) one Business Day after deposit
                                            with an overnight courier service with next day delivery specified, in each case, properly
                                            addressed to the party to receive the same. The addresses, facsimile numbers and e-mail addresses,
                                            as applicable, for such communications shall be:

 

If
to the Company:

 

Ipsidy
Inc.

670
Long Beach Boulevard

Long
Beach, NY 11561

Attention:
Thomas L. Thimot

E-Mail:
legal@authid.ai

 

    23

     

    

 

With
a copy (for informational purposes only) to:

 

Arnold
& Porter Kaye Scholer LLP

250
West 55th Street

New
York, NY 10019-1970

Telephone:
(212) 836-8861

Attention:
Christopher Peterson, Esq.

E-Mail:
christopher.peterson@arnoldporter.com

 

If
to a Buyer, to its address, e-mail address and facsimile number set forth on the Schedule of Buyers, with copies to such Buyer’s
representatives as set forth on the Schedule of Buyers,

 

or
in each case, to such other address, e-mail address and/or facsimile number and/or to the attention of such other Person as the recipient
party has specified by written notice given to each other party five (5) days prior to the effectiveness of such change.

 

Written
confirmation of receipt (A) given by the recipient of such notice, consent, waiver or other communication, (B) mechanically or electronically
generated by the sender’s facsimile machine or e-mail containing the time, date, recipient facsimile number or e-mail address,
as applicable, and, with respect to each facsimile transmission, an image of the first page of such transmission or (C) provided by an
overnight courier service shall be rebuttable evidence of personal service, receipt by facsimile or e-mail or receipt from an overnight
courier service in accordance with clause (i), (ii) or (iii) above, respectively.

 

		(g)	Successors
                                            and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties
                                            and their respective successors and assigns, including any purchasers of any of the Notes.
                                            The Company shall not assign this Agreement or any rights or obligations hereunder without
                                            the prior written consent of the Required Holders. A Buyer may assign some or all of its
                                            rights hereunder in connection with any transfer of any of its Securities without the consent
                                            of the Company, in which event such assignee shall be deemed to be a Buyer hereunder with
                                            respect to such assigned rights.

 

		(h)	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, other than the Indemnitees
                                            referred to in Section 9(k).

 

		(i)	Survival.
                                            The representations, warranties, agreements and covenants shall survive each Closing.

 

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

 

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		(k)	Indemnification.

 

		(i)	In
                                            consideration of each Buyer’s execution and delivery of the Transaction Documents and
                                            acquiring the Securities thereunder and in addition to all of the Company’s other obligations
                                            under the Transaction Documents, the Company shall defend, protect, indemnify and hold harmless
                                            each Buyer and each holder of any Securities and all of their shareholders, partners, members,
                                            officers, directors, employees and direct or indirect investors and any of the foregoing
                                            Persons’ agents or other representatives (including, without limitation, those retained
                                            in connection with the transactions contemplated by this Agreement) (collectively, the “Indemnitees”)
                                            from and against any and all actions, causes of action, suits, claims, losses, costs, penalties,
                                            fees, liabilities and damages, and expenses in connection therewith (irrespective of whether
                                            any such Indemnitee is a party to the action for which indemnification hereunder is sought),
                                            and including reasonable attorneys’ fees and disbursements (the “Indemnified
                                            Liabilities”), incurred by any Indemnitee as a result of, or arising out of, or
                                            relating to (i) any misrepresentation or breach of any representation or warranty made by
                                            the Company or any Significant Subsidiary in any of the Transaction Documents, (ii) any breach
                                            of any covenant, agreement or obligation of the Company or any Significant Subsidiary contained
                                            in any of the Transaction Documents. Except as otherwise set forth herein, the mechanics
                                            and procedures with respect to the rights and obligations under this Section 9(k)
                                            shall be the same as those set forth in Section 6 of the Registration Rights Agreement, or
                                            (iii) any cause of action, suit, proceeding or claim brought or made against such Indemnitee
                                            by a third party (including for these purposes a derivative action brought on behalf of the
                                            Company or any Subsidiary) or which otherwise involves such Indemnitee that arises out of
                                            or results from the Company’s execution, delivery, performance or enforcement of any
                                            of the Transaction Documents (including, without limitation, as a party in interest or otherwise
                                            in any action or proceeding for injunctive or other equitable relief). To the extent that
                                            the foregoing undertaking by the Company may be unenforceable for any reason, the Company
                                            shall make the maximum contribution to the payment and satisfaction of each of the Indemnified
                                            Liabilities that is permissible under applicable law.

 

		(ii)	Promptly
                                            after receipt by an Indemnitee of notice of the commencement of any action or proceeding
                                            (including any governmental action or proceeding) involving an Indemnified Liability, such
                                            Indemnitee shall, if a claim in respect thereof is to be made against the Company under this
                                            Section 9(k), deliver to the Company a written notice of the commencement thereof,
                                            and the Company shall have the right to participate in, and, to the extent the Company so
                                            desires, to assume control of the defense thereof with counsel mutually satisfactory to the
                                            Company and the Indemnitee; provided, however, that an Indemnitee shall have
                                            the right to retain its own counsel with the reasonable fees and expenses of such counsel
                                            to be paid by the Company if: (A) the Company has agreed in writing to pay such fees and
                                            expenses; (B) the Company shall have failed promptly to assume the defense of such Indemnified
                                            Liability and to employ counsel reasonably satisfactory to such Indemnitee in any such Indemnified
                                            Liability; or (C) the named parties to any such Indemnified Liability (including any
                                            impleaded parties) include both such Indemnitee and the Company, and such Indemnitee shall
                                            have been advised by counsel that a conflict of interest is likely to exist if the same counsel
                                            were to represent such Indemnitee and the Company (in which case, if such Indemnitee notifies
                                            the Company in writing that it elects to employ separate counsel at the expense of the Company,
                                            then the Company shall not have the right to assume the defense thereof and such counsel
                                            shall be at the expense of the Company). The Indemnitee shall reasonably cooperate with the
                                            Company in connection with any negotiation or defense of any such action or Indemnified Liability
                                            by the Company and shall furnish to the Company all information reasonably available to the
                                            Indemnitee which relates to such action or Indemnified Liability. The Company shall keep
                                            the Indemnitee reasonably apprised at all times as to the status of the defense or any settlement
                                            negotiations with respect thereto. The Company shall not be liable for any settlement of
                                            any action, claim or proceeding effected without its prior written consent; provided,
                                            however, that the Company shall not unreasonably withhold, delay or condition its
                                            consent. The Company shall not, without the prior written consent of the Indemnitee, consent
                                            to entry of any judgment or enter into any settlement or other compromise which does not
                                            include as an unconditional term thereof the giving by the claimant or plaintiff to such
                                            Indemnitee of a release from all liability in respect to such Indemnified Liability or litigation,
                                            and such settlement shall not include any admission as to fault on the part of the Indemnitee.
                                            Following indemnification as provided for hereunder, the Company shall be subrogated to all
                                            rights of the Indemnitee with respect to all third parties, firms or corporations relating
                                            to the matter for which indemnification has been made. The failure to deliver written notice
                                            to the Company within a reasonable time of the commencement of any such action shall not
                                            relieve the Company of any liability to the Indemnitee under this Section 9(k), except
                                            to the extent that the Company is materially and adversely prejudiced in its ability to defend
                                            such action.

 

    25

     

    

 

		(l)	Construction.
                                            The language used in this Agreement will be deemed to be the language chosen by the parties
                                            to express their mutual intent, and no rules of strict construction will be applied against
                                            any party. No specific representation or warranty shall limit the generality or applicability
                                            of a more general representation or warranty. Each and every reference to share prices, shares
                                            of Common Stock and any other numbers in this Agreement that relate to the Common Stock shall
                                            be automatically adjusted for any stock splits, stock dividends, stock combinations, recapitalizations
                                            or other similar transactions that occur with respect to the Common Stock after the date
                                            of this Agreement. Notwithstanding anything in this Agreement to the contrary, for the avoidance
                                            of doubt, nothing contained herein shall constitute a representation or warranty against,
                                            or a prohibition of, any actions with respect to the borrowing of, arrangement to borrow,
                                            identification of the availability of, and/or securing of, securities of the Company in order
                                            for such Buyer (or its broker or other financial representative) to effect short sales or
                                            similar transactions in the future.

 

		(m)	Remedies.
                                            Each Buyer and in the event of assignment by Buyer of its rights and obligations hereunder,
                                            each holder of Securities, shall have all rights and remedies set forth in the Transaction
                                            Documents and all rights and remedies which such holders have been granted at any time under
                                            any other agreement or contract and all of the rights which such holders have under any law.
                                            Any Person having any rights under any provision of this Agreement shall be entitled to enforce
                                            such rights specifically (without posting a bond or other security), to recover damages by
                                            reason of any breach of any provision of this Agreement and to exercise all other rights
                                            granted by law. Furthermore, the Company recognizes that in the event that it or any Significant
                                            Subsidiary fails to perform, observe, or discharge any or all of its or such Significant
                                            Subsidiary’s (as the case may be) obligations under the Transaction Documents, any
                                            remedy at law would inadequate relief to the Buyers. The Company therefore agrees that the
                                            Buyers shall be entitled to specific performance and/or temporary, preliminary and permanent
                                            injunctive or other equitable relief from any court of competent jurisdiction in any such
                                            case without the necessity of proving actual damages and without posting a bond or other
                                            security. The remedies provided in this Agreement and the other Transaction Documents shall
                                            be cumulative and in addition to all other remedies available under this Agreement and the
                                            other Transaction Documents, at law or in equity (including a decree of specific performance
                                            and/or other injunctive relief).

 

		(n)	Withdrawal
                                            Right. Notwithstanding anything to the contrary contained in (and without limiting any
                                            similar provisions of) the Transaction Documents, whenever any Buyer exercises a right, election,
                                            demand or option under a Transaction Document and the Company or any Subsidiary does not
                                            timely perform its related obligations within the periods therein provided, then such Buyer
                                            may rescind or withdraw, in its sole discretion from time to time upon written notice to
                                            the Company or such Subsidiary (as the case may be), any relevant notice, demand or election
                                            in whole or in part without prejudice to its future actions and rights.

 

    26

     

    

 

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

 

		(p)	Independent
                                            Nature of Buyers’ Obligations and Rights. The obligations of each Buyer under the
                                            Transaction Documents are several and not joint with the obligations of any other Buyer,
                                            and no Buyer shall be responsible in any way for the performance of the obligations of any
                                            other Buyer under any Transaction Document. Nothing contained herein or in any other Transaction
                                            Document, and no action taken by any Buyer pursuant hereto or thereto, shall be deemed to
                                            constitute the Buyers as, and the Company acknowledges that the Buyers do not so constitute,
                                            a partnership, an association, a joint venture or any other kind of group or entity, or create
                                            a presumption that the Buyers are in any way acting in concert or as a group or entity, and
                                            the Company shall not assert any such claim with respect to such obligations or the transactions
                                            contemplated by the Transaction Documents or any matters, and the Company acknowledges that
                                            the Buyers are not acting in concert or as a group, and the Company shall not assert any
                                            such claim, with respect to such obligations or the transactions contemplated by the Transaction
                                            Documents. The decision of each Buyer to purchase Securities pursuant to the Transaction
                                            Documents has been made by such Buyer independently of any other Buyer. Each Buyer acknowledges
                                            that no other Buyer has acted as agent for such Buyer in connection with such Buyer making
                                            its investment hereunder and that no other Buyer will be acting as agent of such Buyer in
                                            connection with monitoring such Buyer’s investment in the Securities or enforcing its
                                            rights under the Transaction Documents. The Company and each Buyer confirms that each Buyer
                                            has independently participated with the Company and its Subsidiaries in the negotiation of
                                            the transaction contemplated hereby with the advice of its own counsel and advisors. Each
                                            Buyer shall be entitled to independently protect and enforce its rights, including, without
                                            limitation, the rights arising out of this Agreement or out of any other Transaction Documents,
                                            and it shall not be necessary for any other Buyer to be joined as an additional party in
                                            any proceeding for such purpose. The use of a single agreement to effectuate the purchase
                                            and sale of the Securities contemplated hereby was solely in the control of the Company,
                                            not the action or decision of any Buyer, and was done solely for the convenience of the Company
                                            and its Subsidiaries and not because it was required or requested to do so by any Buyer.
                                            It is expressly understood and agreed that each provision contained in this Agreement and
                                            in each other Transaction Document is between the Company, each Subsidiary and a Buyer, solely,
                                            and not between the Company, its Subsidiaries and the Buyers collectively and not between
                                            and among the Buyers.

 

[signature
pages follow]

 

    27

     

    

 

SIGNATURE PAGE TO SECURITIES
PURCHASE AGREEMENT

 

IN
WITNESS WHEREOF, each Buyer and the Company have caused their respective signature page to the Agreement to be duly executed as of
the date first written above.

 

	 	COMPANY:
	 	 	 
	 	IPSIDY INC.
	 	 	 
	 	By: 	 
	 	Name: 	Stuart Stoller
	 	Title:	Chief Financial Officer

 

     

     

    

 

SIGNATURE PAGE TO SECURITIES
PURCHASE AGREEMENT

 

The
undersigned Buyer, by his, her or its signature below, or by that of his, her or its authorized representative, confirms that the Buyer
has carefully reviewed and understands, and voluntarily enters into, this Securities Purchase Agreement.

 

IN
WITNESS WHEREOF, each Buyer and the Company have caused their respective signature page to the Agreement to be duly executed as of
the date first written above.

 

$_____________________________
(the “Purchase Price”) (A)

LESS
2.0% Cash Origination Fee $_____________________ (B)

Balance
payable on Closing (A-B) $_________________________

 

	 	 	 
	Signature	 	Signature (if purchasing jointly)
	 	 	 
	 	 	 
	Name	 	Name
	 	 	 
	 	 	 
	Title (if Subscriber is an Entity)	 	Title (if Subscriber is an Entity)
	 	 	 
	 	 	 
	Entity Name (if applicable)	 	Entity Name (if applicable)
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	Address	 	Address
	 	 	 
	 	 	 
	City, State and Zip Code	 	City, State and Zip Code
	 	 	 
	 	 	 
	Telephone-Business	 	Telephone-Business
	 	 	 
	 	 	 
	Telephone-Residence	 	Telephone-Residence
	 	 	 
	 	 	 
	E-mail address	 	E-mail address
	 	 	 
	 	 	 
	Tax ID # or Social Security #	 	Tax ID # or Social Security #
	 	 	 
	Name in which securities should be issued:	 	 

 

     

     

    

 

SCHEDULE
OF BUYERS

 

	Buyer	 	Address, E-mail Address and Facsimile Number	 	Original Principal Amount of Notes	 	Purchase Price	 	Legal Representative’s Address, E-mail Address and Facsimile Number
	         	 	         	 	         	 	          	 	         

 

     

     

    

 

OTHER
SCHEDULES

 

	Schedule 3(a):	Significant Subsidiaries
	 	 
	Schedule 3(m)(iii):	Reserved Shares
	 	 
	Schedule 3(m)(iv):	Preemptive Rights; Liens
	 	 
	Schedule 3(n):	Indebtedness
	 	 
	Schedule 3(p):	Litigation
	 	 
	Schedule 3(r):	Patents Owned; Patent Expirations; Patent Proceedings

 

     

     

    

 

EXHIBIT
A

 

Form
of Note

 

 

See
Attached.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     

     

    

 

EXHIBIT
B

 

Form
of Guaranty

 

 

See
Attached.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     

     

    

 

EXHIBIT
C

 

Form
of Security Agreement

 

 

See
Attached.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     

     

    

 

EXHIBIT
D

 

Form
of Registration Rights Agreement

 

 

See
Attached.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     

     

    

 

EXHIBIT
E

 

Form
of Legal Opinion

 

 

See
Attached.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00342-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00342-of-00352.parquet"}]]